The Arequipa Region Solidifies its Position as the Largest Copper and Molybdenum Producer

• At the close of June 2023, this Peruvian southern region maintains its leadership as the largest producer of both minerals.

The region of Arequipa continues proving its potential and key role within the Peruvian mining sector. At the close of June 2023, this southern region maintained its leadership as the country’s largest copper and molybdenum producer, and the second-largest gold producer. This according to Julio Cáceres Arce, the president of the Chamber of Commerce and Industry of Arequipa. 

He stated that mining is Arequipa’s most important economic activity. The impact of this sector on the region's economy and development is significant, especially owing to the contribution of companies like Cerro Verde and Southern Peru. 

“In 2022, for example, the mining sector made up 32% of the region's total GDP, resulting in substantial tax revenues, improvements in Arequipa's infrastructure, and direct and indirect employment creation,” said Cáceres Arce during Rumbo a PERUMIN.

He claimed that in that same year mining in Arequipa created nearly 30,000 direct jobs and approximately 160,000 indirect jobs. 

Furthermore, mining had an impact on employment generated by exports. During the first quarter of 2023, mining accounted for 66% of the export-related employments in Arequipa, with 52,707 direct, indirect, and induced job. 

“These contributions were reflected on an estimation made by the Department of Economic Studies.”

This estimation determined that for each 1% increase in the mining GDP, formal and informal employment would see a 3%, 4%, and 6% increase in the commercial, construction, and service sectors, respectively, figures that show the great contribution of mining to Arequipa. 

Regarding tax revenues from mining, he highlighted that fiscal redistribution (canon) amounted to S/. 5.783 billion during the period between 2010 and 2022, accounting for 12.9% of the total mining fees collected nationwide. 

“During the year 2022, the largest transfer in the last 13 periods was recorded, reaching 1.119 billion soles. This amount represents 19% of the total collected in Peru between 2010 and 2022,” he stated.

Support to Zafranal

On the other hand, Julio Cáceres emphasized the importance of continuing to boost the current mining projects in Peru, such as the Zafanal project, conducted by Compañía Minera Zafranal. These projects will have a major impact on Arequipa's economy and will help the region keep developing.

This future Zafranal mine, located 90 km from Arequipa, will produce copper concentrate with low levels of gold. In its initial investment stage, it would increase Arequipa's GDP by 2% to 5%, and by 3% to 7% in its operational stage, according to the Chamber of Commerce of Arequipa.