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Significance
Badly affected by the COVID-19 lockdown, production in Peru’s mining sector is now beginning to recover as mines resume operations. The mining industry has been among those pressing the government to ease the lockdown. The prospects for copper, for which Peru is the world’s second-largest producer after Chile, will remain blighted for the time being by low world prices, although buoyant gold prices will partly compensate.
Impacts
Lower mining profits this year will affect the government’s tax take, compounding fiscal problems caused by COVID-19.
Buoyant gold prices will further encourage environmentally harmful practices in the Amazon rainforest.
The regime surrounding lockdown will reduce the salience of community resistance to mining this year.
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2020
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