The Peruvian government has authorized Canadian mining company Barrick Gold Corp to carry out exploration activities in the country’s southern border area, according to an announcement made by Prime Minister Gustavo Adrianzen.
Peru’s constitution requires foreign private investment within 50 kilometers (31 miles) of the country’s borders to be approved by the cabinet of ministers. Addressing this requirement, the prime minister stated that the “expansion of our mining portfolio is essential, given that this activity is one that drives the economic reactivation process.”
Mining plays a crucial role in Peru’s economy, accounting for 60% of the Andean nation’s exports, predominantly in the form of copper. The government has been working to attract private mining investment after a dip in activity last year contributed to the country falling into a recession.
The authorization granted to Barrick Gold, one of the world’s largest gold mining companies, is seen as an important step in bolstering Peru’s mining sector and broader economic recovery. By allowing exploration activities near the southern border, the government is creating opportunities for increased mineral production and investment in the country.
The move aligns with Peru’s efforts to revive its economy and position the mining industry as a key driver of growth. As the country grapples with the aftermath of the pandemic, the government is recognizing the strategic value of facilitating mining operations and fostering a favorable investment climate for multinational companies like Barrick Gold.
This decision by the Peruvian government underscores the pivotal role that the mining sector plays in the country’s economic landscape and the government’s commitment to leveraging its mineral resources to stimulate economic activity and spur a robust recovery.