The Risks of Gold Mining in Peru

For several years, Peru has maintained its position as one of the world's top producers of gold, silver, zinc, copper and lead.

At the national level, President Ollanta Humala, elected in 2011, has welcomed foreign investment that, combined with the abundance of natural resources, has made Peru a favourable destination for mining and extractive sector investments.

Yet, at the local level, mining projects are at a real risk of disruption, delay or cancellation due to community opposition. Local communities, such as those in the province of Cajamarca, are increasingly opposed to mining by foreign investors because of a lack of consultation on previous projects and a widespread perception that the economic benefits of mining are insufficient to compensate for the degradation to the local environment.

IN-D-TEL International’s Chief Risk Officer, Charles Dumbrille provides commentary for the Northern Miner here.

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