Competitiveness and Sustainability in the Strategic Minerals Sector

pipeline

Prospective

The Peru Mining IPF seeks to enhance the competitiveness and sustainability of Peru’s mining sector through upstream, public-good interventions. The project will generate cutting-edge geoscientific data, modernize mining institutions and digital systems, and strengthen environmental and social governance. These activities are underpinned by a de-risking Theory of Change, which anticipates medium-term outcomes of improved competitiveness and more sustainable practices, and long-term impacts such as diversification into critical minerals. Key assumptions include sustained political commitment, effective adoption of regulatory and digital reforms, active community engagement, positive private sector response to better information and governance, and ASM uptake of good practices.The operation comprises two technical components and one implementation component:Component 1: Geological knowledge management, including (i) a national drill core library, (ii) generation of geoscientific information, and (iii) a national geochronology laboratoryComponent 2: Adequate management of mining investments, including (i) digital transformation of mining management, (ii) development of a digital one-stop shop (VUD MINEM), and (iii) technical assistance centers for artisanal and small-scale mining (CATAT).Component 3: Program/studies management, including (i) policy and analytical support for environmental and social management and (ii) project implementation and management.All interventions are strictly upstream in scope. The project will not finance or facilitate mineral exploration, extraction, or any downstream activity. Its primary objective is to enhance Peru’s public knowledge base to inform land-use planning, natural resource governance, and strategic policymaking. Any eventual downstream use of generated data would be subject to Peru’s comprehensive regulatory framework, which mandates rigorous permitting processes, environmental and social assessments, and Free, Prior, and Informed Consent (FPIC) where indigenous peoples’ rights may be affected. This ensures a clear temporal and institutional separation between upstream public-good activities financed by the project and any future private sector mining investments.

World Bank Group

Project

Government, Education, Commercial