World Bank Approves $200M Project to Modernize Peru’s Mining Sector and Boost Jobs

Mining plays a crucial role in Peru’s economy, contributing around 10 percent of the country’s gross domestic product (GDP) and serving as a major source of exports and employment.

The World Bank Board of Directors has approved a $200 million project aimed at strengthening Peru’s mining sector, with the goal of improving competitiveness, transparency and sustainability while creating new employment opportunities across the industry’s value chain.

The initiative will help Peru unlock the economic potential of its vast mineral resources by modernising regulatory systems, improving geological data capabilities and strengthening institutional capacity.

Officials say the reforms are intended to attract new investment and support the development of skilled jobs linked to the growing global demand for minerals used in clean energy technologies.

Mining Remains a Pillar of Peru’s Economy

Mining plays a crucial role in Peru’s economy, contributing around 10 percent of the country’s gross domestic product (GDP) and serving as a major source of exports and employment.

In 2025, Peru’s mining exports reached $61.849 billion, reflecting strong growth driven by international demand for metals such as copper.

However, investment in the sector has slowed in recent years due to regulatory bottlenecks, lengthy permitting processes and governance challenges.

The World Bank-supported project aims to address these issues by making the mining sector more predictable and transparent for investors.

Supporting the Global Clean Energy Transition

The project also aligns with rising global demand for critical minerals needed for clean energy technologies, including copper, lithium and other metals essential for renewable energy systems, electric vehicles and digital infrastructure.

Demand for these resources is expected to grow rapidly due to:

• Expansion of renewable energy systems

• Rising global electricity demand

• Growth of artificial intelligence and digital infrastructure

• Increasing urbanisation and industrial development

Improving transparency and efficiency in Peru’s mining sector is expected to stimulate exploration and mine development while strengthening local supply chains and regional economies.

“Creating more and better jobs is at the heart of Peru’s development challenge, particularly for young people and communities in mining regions,” said Issam Abousleiman, World Bank Country Director for Bolivia, Chile, Ecuador and Peru.

“By modernizing the mining sector, driving digitalization, fostering innovation and strengthening institutions, this project will help attract responsible private investment and translate Peru’s mineral potential into sustainable jobs and inclusive growth.”

Expanding Geoscientific Data and Research Capacity

A key component of the project is the modernization of Peru’s geoscientific infrastructure, aimed at improving the quality and accessibility of geological information for investors and policymakers.

The project will support:

• Creation of a National Drill Core Library to store and analyse geological samples

• Establishment of a state-of-the-art geochronology laboratory

• Generation and public dissemination of cutting-edge geoscientific data

These improvements will help attract high-quality mineral exploration while strengthening environmental and social management in the sector.

Digital Permitting System to Reduce Delays

Another major component of the initiative is the development of a Digital One-Stop Permitting Platform, designed to streamline regulatory approvals for mining projects.

The digital platform will:

• Simplify the authorization process for mining activities

• Reduce bureaucratic bottlenecks and delays

• Improve regulatory clarity and transparency

• Increase investor confidence in the sector

Officials believe the platform could significantly shorten project approval timelines while improving oversight.

Strengthening Governance and Public Trust

The World Bank emphasised that stronger institutions and transparent regulations are essential to ensuring that mineral wealth translates into long-term economic development.

By modernising governance systems and improving regulatory transparency, the project aims to restore confidence across the mining value chain, from investors and companies to local communities.

Officials say these reforms could help Peru transform its geological advantages into a competitive edge in global mineral markets, supporting economic resilience and sustainable growth.

If successful, the initiative could generate new employment opportunities, strengthen local economies and ensure that Peru’s mineral resources contribute to shared prosperity over the long term.