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Finaly, after nearly a decade of turmoil, it is official: Peru is on tracks to elect its new president on April 12, 2026. For many, this date will not only mark the end of a period defined by instability, social polarization and frustration, but also, hopefully, promise a brighter future for the mining sector. 

On March 25, Dina Boluarte addressed the nation from the Government Palace in Lima to call for general elections, stating: “We hope, for the sake of Peru and for present and future generations, that the 2026 elections will not only allow our citizens to exercise their right to vote, but also put an end to a period of instability that has led Peru to have six presidents in recent years, fueling polarization that has only divided us, delayed investments, and worsened the wave of insecurity." 

Of the the six Peruvian presidents since 2016, Boluarte will be the only one to complete her mandate. 

Polarization is indeed a term that carries weight. On April 12, 2025, the National Jury of Elections (Jurado Nacional de Elecciones) closed party registration for the upcoming general elections. The result? 43 parties will compete, almost double the 23 that registered for the 2021 elections. If this is not a clear reflection of polarization, and a sign that Peruvians are searching for an as-yet-unseen alternative on the political landscape, what is? 

For now, predicting the future scenarios is impossible: "With so many parties expected in the next election, candidates with only a small share of the vote could reach the second round, creating unpredictable outcomes. Those who move forward may not have strong support, making it hard to build lasting political stability. This worries investors in key sectors like mining, where a stable environment is needed to develop big projects," commented Marcial García, partner at EY. 

The president's reference to "delayed investments" is particularly relevant, as Peru's mining project portfolio has remained stagnant in recent years. However, the issue of "delayed projects" must also be analyzed alongside another statement made by Boluarte during her speech:  "We want a campaign focused on proposals that ensure growth, social justice and development, and that keep public works moving forward so Peru does not come to a standstill." 

According to Miguel Hidalgo, general director at Grupo Hidalgo, the viability of a mining project in Peru depends 80% on social/political factors and only 20% on technical aspects such as studies and engineering. He emphasized that ideological and political interference - particularly during election campaigns - often complicate community relations. "Peru's political class and its decisions often send a dangerous 'anti' message that jeopardizes investment in extractive industries. Just four words, 'Water yes, gold no,' were pronounced by Huamala (later President) during his campaign and harmed mining investment in Cajamarca. Today, that same region is once again facing extreme poverty in its communities," he insisted. 

One thing that must be acknowledged about Boluarte is that, at the very least, she has not directed negative messages about the industry to Peruvians as Castillo did. "Mining remains a key driver of the national economy, creating jobs and infrastructure and promoting development across the country," stated Boluarte during her appearance at the XV Simposio, held in May 2024 in Lima. 

"From a foreign investor's perspective, Peru currently stands out as one of the most solid and stable options in South America, which is surprising given its challenges. Political stability is a key factor. While the current government's management may not be the best, it has at least allowed for some progress, which could help build investor confidence. The current government must complete its term, and the upcoming elections must be transparent and democratic to strengthen Peru's image as a reliable foreign capital destination, " Javier Mendoza, general manager at Anddes Peru and Ecuador reflected. 

"While there are modest advances in some major projects, such as Tía María and Zafranal, it is crucial to establish strong incentives and address structural issues to better capitalize on international conditions and attract more foreign investment," commented Marcial García, partner at EY. 

The reality is that those two projects and several others in the pipeline have been in development for a long time. Grupo México, the owner of Southern Peru (the subsidiary that owns Tía María), has increased the project's CapEx to US$1.8 billion. Meanwhile, Zafranal (a joint venture between Teck and Mitsubishi) is progressing, and the newly appointed general manager, Gisella Lombardi, stated that the detailed engineering is expected to be completed in the second half of 2025. 

Most mining leaders are optimistic about Peru's future: "If the upcoming electoral campaign and elections do not negatively impact mining investment but, on the contrary, drive it to continue growing, we will see a wave of new mining projects that have been on hold for years. With their activation, the demand for environmental impact studies, baseline assessments, and other key analyses will increase," asserted Guillermo Barreda, general manager at Knight Piésold in Peru.

César Kahatt, senior vice president and regional mining practice leader for Marsh McLennan, acknowledged that while elections tend to generate uncertainty in investments,  greenfield projects will not be significantly affected: "It can take more than 10 years for a project to progress from exploration to production, and they are more likely to move forward regardless of the electoral context, as their execution horizon is much broader. Companies whose project's feasibility study is already completed, and are about to start construction, or seek financing, might choose to wait and see the outcome of the elections," he concluded. 

(De)Regulation shock 

Several initiatives have been introduced into the mining policy conversation. One of them is the Ventanilla Única (one-stop-shop, or VUD). Since it was first unveiled in 2019, implementation of the VUD has been ongoing, with exploration permitting included in February 2024. The system promises integrated digitalization, thereby reducing form filling – both physical and digital – and bringing together permitting processes across government departments. Subsequent phases will incorporate mining exploitation activities and benefit concessions processes. Additionally, water permitting – previously a separate and sequential step – was integrated into the broader DIA licensing process in 2023, illustrating an avenue for efficiency savings in environmental permitting. However, the VUD is not expected to be fully implemented until July 2025. 

Another interesting and recent initiative was establishing a multisectoral committee in October 2024 to formulate the National Multisectoral Mining Policy for 2050 (PNMM 2050).  The PNMM 2050 is a state policy with a long-term vision aimed at identifying and addressing national priority issues related to the sustainability and competitiveness of mining. Jorge Luis Montero, the current Minister of Energy and Mines (MINEM), told GBR that the goal of the PNMM 2050 is to set clear guidelines and service priorities that support the industry—from small and medium-scale operations to large-scale mines—along with local communities and authorities. For him, the MINEM has mostly acted just as a permit-granting organism and, instead, should have a more proactive role: "We are not seeing the big picture and we are missing a strategic framework that defines clear objectives and directions. Therefore, we are working on developing an actual multisectoral national policy for mining," urged Montero. 

"In some cases, excessive regulation causes delays of up to 36 months just in the exploration phase, while in other mining countries like Chile, the process is much faster," commented Julia Torreblanca, the recently appointed president of the National Society of Mining, Petroleum and Energy (SNMPE). 

She is right and the rest of the industry shares the same frustration, because Peru has everything the world wants and needs, from copper to gold and other base metals. Mining also means economic development: "No one is saying that standards should be lowered, but the process does need to be more predictable. Mining also has great value as an industry that brings different players together," emphasized Leandro García, CEO of Buenaventura. 

"[Mining projects] have a multiplier effect on the economy, attracting service companies that either did not operate in Peru before or are looking to expand their presence," agreed Edgardo Portaro, partner at GSA Legal. 
In this context, where countries around the world are competing to attract capital for the development of future deposits, the Ministry of Economy and Finance, as part of the multisectoral effort mentioned by Montero, is working alongside the SNMPE to address the long-standing challenge of red tape: "As a government, we are pushing for a `regulation shock'. The goal is not to regulate for regulation's sake, but rather to listen to the private sector and identify unnecessary procedures or delays that slow down investment," assured José Antonio Salardi, current Minister of Economy and Finance, during an interview with GBR.

Will this "push" materialize in the upcoming months, and how will this unfold? "This reform effort is happening in a pre-election year, with elections set for April 2026, which adds a layer of political uncertainty, as different candidates may take positions either for or against mining," warned Alberto Varillas, partner at GSA Legal. 

Don't call it mining 

"Without any doubt, we firmly believe that illegal mineral extraction should not even be called mining. It is an affront to our country's long standing mining tradition. We prefer to call it 'illegal economy'," stressed Darío Zegarra, president of the Peruvian Institute of Mining Engineers (IIMP). 

In June 2024, the SNMPE, together with the Instituto Peruano de Economía (IPE), released a report titled Comparative Analysis of Governmental Response to Illegal and Informal Mining in South America, a study that compared how different South American countries are addressing illegal and informal mining within their borders. Some key takeaways are that it is estimated that nearly 30% of Brazil's gold exports, 44.4% of Peru's, 50% of Bolivia's, between 70% and 77% of Ecuador's, 85% of Colombia's, and between 70% and 90% of Venezuela's, come from illegal mining. Alarmingly, nearly half of the total illegal gold exported from South America, 44% in fact, comes from Peru. "In mines such as those in Pataz, over a thousand security personnel have lost their lives, reflecting the severity of the problem and the urgent need for more control," added Giulio Valz Gen, CEO at Howden Perú. 

In recent months, the REINFO and the new proposed Ley MAPE have taken center stage in Peru's mining policy discussions. The REINFO (Registro Integral de Formalización Minera), initially created in 2016, has been repeatedly extended. In late 2024, the Cabinet of Peru approved a draft of the Ley MAPE, which is intended to replace the REINFO. "The new Ley MAPE is under debate, but the REINFO was extended for another six months, with a possible extension until the end of the year. There is a draft, but the outlook remains uncertain, especially with the absence of clear leadership and the upcoming elections. However, it is evident that change is necessary," stated Marcelo Santillana, general manager of Minera Poderosa, one of the companies most affected by illegal mining. 

In light of recent events related to illegal mining, one can only wonder if there are specific insurances to help mitigate this pain. Andrés Guiulfo,  CEO at Lockton Perú, an insurance broker, said: "There are insurance policies that cover riots, strikes, malicious damage, terrorism and sabotage. However, if attacks on formal mining operations become frequent and severe, the risk level becomes so high that no insurer would accept it without a tangible mitigation plan. If the problem grows too large and there are no clear strategies to address it, it simply becomes an uninsurable risk."

The industry is asking for more governmental support:  "Without clear incentives, formalization is hard to sustain. Out of 80,000 registered in REINFO, only 2,000 have made progress, and many struggle to stay in the system. It is essential to improve access to technology, productivity and labor standards," emphasized Zegarra. 

We don't have enough people

"2025 has started with more momentum than in previous years, with a noticeable increase in work in Peru and abroad. In the last quarter of 2024, our engineering division saw a strong surge in industry demand—almost like a wake-up call—driving the need to meet tighter deadlines and expand services. It took a considerable effort on our part," commented Guillermo Barreda, general manager for Peru at the consultancy and engineering firm Knight Piésold. 

The recent uptick in mining activity has met with a shortage of qualified talent. "Sometimes, we need more than 1,500 people to address a plant shutdown. Companies are competing for the same workers, and we even had cases where technicians have left to other companies just before heading to the mine for a minimal salary difference," shared Roxana Burgos, general manager at Movitécnica, a conveyor belt company. 

What was once a challenge seen in countries like Australia, Canada and the United States has now reached Peru, affecting the entire value chain, from engineers to conveyor belt suppliers and drilling contractors. It seems that while companies previously complained about the lack of projects, now the shortage of talent is insufficient to meet the demand brought on by the activation of new projects.“Among the challenges of 2024 was the lack of experienced professionals in the job market, but using our global professional network and growing our engineering and environmental teams enabled us to overcome these challenges,” commented Daniel González, business development manager at AtkinsRéalis.

It is a paradox, considering Peru is one of the mining countries producing the most graduates. "While companies need around 100 engineers each year, universities are graduating over 1,000, creating intense competition, frustration, and in some cases, pushing graduates toward informal work," commented Raúl Benavides, president of Cetemin. 

Many of these graduates are poorly qualified. Armando Gallegos, Rector of GĚRENS Graduate School, illustrated this: "In our study, on average, less than 10% of graduates were ready to join the sector, because of universities with outdated curriculum, professors disconnected from industry, poor university governance and weak ties to society, as well as limited funding, inadequate infrastructure, and poorly equipped labs." 

The use of AI, automation and remote operations may offer a short-term solution, but many believe it acts more like a sedative than a cure, and that this should be addressed at a regional level: "As a company, we have internal initiatives, but they remain isolated efforts within the industry. I believe the time has come to propose solutions collectively, as an industry, as a country, and why not, as a bloc of mining nations like Peru, Chile, and Mexico. Everything should be integrated to find medium- and long-term solutions," asserted Eduardo Cossio Chirinos, CEO at INCIMMET. 

From the Silk to the Amazon Road 

"Our goal is to become the Singapore of Latin America, ensuring that port cargo passes through here on its way to Asia," stated Raúl Pérez Reyes Espejo, Peru's Minister of Transport and Communications, referring to the recently inaugurated Chancay Port. 

Built by China, the Chancay port is set to become South America's largest commercial hub. After eight years of construction, the first phase of this mega-port has been completed. It is owned by a joint venture between Cosco Shipping, a Chinese state-owned company (60%), and Volcan, a Peruvian zinc and lead producer (40%). Inaugurated in November 2024 by Peru's President Dina Boluarte alongside China's Xi Jinping, the port, 70 km north of Lima, has become a flagship project under China's Belt and Road Initiative. 

For Peru, it represents a significant trade opportunity, and it is aiming to capture a share of the US$580 billion in annual commerce between China and South America. 

Carlos Tejada, deputy general manager at Cosco Shipping (Puerto de Chancay), detailed the port's four-phase development plan, with a total investment of US$4 billion: "In this first phase, we have already invested US$1.3 billion, which includes the construction of four docks totaling 1,500 m, with two dedicated to general cargo and bulk shipments. Additionally, there is an 860 m berthing front for container ships." 

Much hype surrounds the port's impact on the mining industry. Due to Chancay's location in an archaeologically significant area, Tejada noted that it currently handles general cargo and containerized minerals but lacks permits for bulk mineral exports. Whether bulk minerals will be included in future phases depends on market demand. "We have exported silver concentrates to other countries, but it is still uncertain whether bulk mineral handling will be incorporated," said Tejada. 

The new port is expected to shorten transit times to and from Asia, reducing shipping duration from 45 to 23 days, according to Tejada, and reduce costs. "The Port of Chancay should significantly lower the cost of imported goods from China. Delivery time for supply, like grinding balls and tires, could be cut in half, reducing logistical and storage expenses, allowing companies to avoid maintaining large and costly inventories," commented Pamela Florian, country manager for Peru at Hatch. 

However, opinions are mixed. Adolfo Vera, president and CEO of Southern Peaks Mining, acknowledged that shorter voyages might slightly influence prices, but he expects it to be a gradual and moderate impact: "The stabilization of urea prices or potential pressure on OPEC to increase oil production could have a greater influence on costs," he noted. 

Roxana Burgos, general manager at Movitécnica, remains skeptical of Chancay's short-term economic benefits. "We primarily import from Asia and assemble our products in Peru. However, we do not foresee Chancay making a difference in the short term. We still operate through Callao, as Chancay is not yet fully operational. Additionally, inland transportation costs remain high due to the lack of alternative roads connecting the Chancay's port to Lima," she explained. 

Cecilia Batallanos, managing director of Leschaco, said: "Rising fuel and energy costs, droughts in the Panama Canal, and instability in the Red Sea have driven volatility in freight rates, impacting importers worldwide. While prices are beginning to stabilize, climate change remains a serious risk, reducing the water flow in the Panama Canal, which limits both the frequency and volume of maritime traffic." 

In this context, the hype around Chancay is also driven by Peru's potential to become a regional logistics hub: "Chancay is a multipurpose project that could connect Atlantic-facing countries like Brazil," noted Tejada. 
In March 2024, Brazil's Minister of Planning and Budget, Simone Tebet, met with Peru's Minister of Transport and Communications to explore synergies and integration through intermodal routes. Later that year, Brazil launched the 2024 Report on the South American Integration Routes Projects through Brazil's Novo PAC (New Growth Acceleration Program), highlighting five intermodal corridors with its neighboring countries, two of which end in Chancay: the Amazônica and the Quadrante Rondon routes. "Chancay is a game changer," said Cecilia Batallanos: "It offers Peru the chance to become a regional logistics hub by reducing transit time to Brazil by up to 15 days. Plus, the country has skilled labor and the conditions to develop free trade zones and maquilas around the port, increasing its commercial appeal," she added.