The BCRP president says that the reactivation of the mining project will improve investor confidence. However, the Southern operation does not have the full acceptance of Valle del Tambo.
The confirmation of Southern Peru’s activities in Tía María is good news for the local economy, according to Julio Velarde, president of the Central Reserve Bank of Peru (BCRP).
“Our official GDP projection for the end of the year is 3.1%, as we said, with an upward bias. If expectations improve, there would clearly be a better performance of the economy. Aunt Maria will have an impact on growth, but this will be noticeable starting next year and in 2026“, Velarde said.
He also stressed that the company has already complied with all permits and that “it seems that it already has the acceptance of the majority of the community” so that the reactivation of its activities would set a precedent of confidence for its mining peers and other investors.
However, Richard Cruz, the provincial mayor of Islay, expressed his rejection of Southern’s announcement and noted that it does not have the social acceptance of the population of Valle del Tambo.
He also criticized the government for “washing its hands” by not making an official announcement of the reactivation of the mining project. Cruz recalled that, In 2011, the United Nations Office for Project Services (UNOPS) determined in its environmental impact study that the project was inadmissible, presenting more than 100 observations.
According to the Peruvian Institute of Economics (IPE), Tía María would produce around 120,000 tons of copper per year. On the other hand, it would generate approximately 9,000 jobs and would pay the State almost S/5.460 million for mining royalties and royalties for 20 years of operations.
Source: Larepublica
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