Peru - Competitiveness and Sustainability in the Strategic Minerals Sector Project

Overview & Synopsis

Competitiveness and Sustainability in the Strategic Minerals Sector Project for Peru has the development objectives to improve the competitiveness and sustainability of the mining sector by generating cutting-edge geoscientific data, modernizing key institutions and permitting, and strengthening the management of environmental and social risks. Component 1: Geological knowledge management will enhance Peru’s geoscience as a public good and reinforce the Geological, Mining and Metallurgical Institute (INGEMMET) through three Sub-components. Sub-component 1.1: National drill core library will establish a centralized, modern repository to preserve, catalog, digitize, and sensor-scan drill cores and geological specimens, improving access, reducing redundant drilling, and supporting research and exploration targeting. Sub-component 1.2: Generation of geoscientific information will acquire, process, and publish high-quality airborne geophysics, geochemistry, and field mapping using mineral systems analysis and predictive modeling to reduce geological uncertainty and inform exploration, land-use planning, water resources, hazard mapping, and climate risk management. Sub-component 1.3: National geochronology laboratory will install high-precision analytical capacity for Uranium-Lead dating to accelerate prospectivity assessments, reduce reliance on foreign laboratories, and build a public mineral age database. Component 2: Adequate management of mining investments will strengthen the Ministry of Energy and Mines (MINEM) through three Sub-components. Sub-component 2.1: Digital transformation of mining management will standardize and digitalize core regulatory and administrative processes, ensure interoperability and real-time tracking, and reinforce cybersecurity and transparency. Sub-component 2.2: Development of the Digital One-Stop Shop for Mining Permits (VUD MINEM) will implement an interinstitutional, transactional platform that integrates permits from exploration to closure, links water authorizations and prior consultation, and records socio-environmental commitments to improve predictability and oversight while entities retain their mandates. Sub-component 2.3: Technical Assistance Centers for Artisanal Small-Scale Mining (CATAT) will provide territorial and mobile services for artisanal and small-scale mining (ASM) on productivity, occupational safety, environmental good practices, mercury reduction, and inclusion of women and youth, supported by partnerships and beneficiary tracking. Component 3: Project management will ensure effective delivery and sustainability through two Sub-components. Sub-component 3.1: Policy and analytical support for environmental and social management will prepare policies, guidelines, and tools for mine closure, environmental liabilities, citizen engagement, prior consultation, and transparency of community commitments. Sub-component 3.2: Project implementation and management will operate a Project Implementation Unit for fiduciary management, environmental and social risk oversight, monitoring and evaluation, communications, and capacity building for MINEM and INGEMMET.