Preventing and Managing Social Conflict in Peru

Primary tabs

Preventing and Managing Social Conflict in Peru

tweet me:
Preventing and managing social conflict in Peru #mining

Multimedia from this Release

A meeting with Barrick partner World Vision to discuss sustainable development in the district of Quiruvilca, in rural northern Peru.

Tuesday, July 9, 2013 - 1:30pm
Peru has one of the world’s fastest-growing economies, driven largely by its mineral wealth and the expansion of the mining industry. Today, most major global mining companies have operations in the country, including Barrick, BHP-Billiton, Newmont, Freeport McMoran, Glencore Xstrata and others.
Increased mining sector investment and revenues have provided significant benefits to Peru’s national economy. The sector’s contribution to total government revenue averaged 14 percent between 2000 and 2010. In 2010 alone, Peru mined $18 billion worth of minerals, accounting for 12 percent of the country’s gross domestic product. The mining boom has contributed to a marked reduction in Peru’s poverty rate to about 28 percent in 2011 from 42 percent five years earlier, according to The World Bank.
Barrick has been operating in Peru for the past 15 years and has two mines in northern Peru — Pierina and Lagunas Norte. The contribution of these operations to economic prosperity is significant. In 2012, Barrick paid nearly $400 million in taxes and royalties in Peru, and purchased approximately $340 million in goods and services in the country. Ninety-nine percent of the 1,200 Barrick employees who work at Pierina and Lagunas Norte are Peruvian nationals.
“Peru is an attractive and highly rewarding place to do business,” says Igor Gonzales, Barrick’s newly retired Chief Operating Officer and a Peruvian. “There are also challenges. Barrick and many of our industry peers recognize it is in our long-term interest to promote further economic growth and stability in Peru.”