China, the main foreign investor in Peru’s mining sector, is steadily expanding its footprint. In October, China’s National Development and Reform Commission signed an agreement to promote greater mining investment in the Andean country.
As part of this agreement, in March, China’s Minerals and Metals Group (MMG) announced it would reactivate the Galeno copper mining project in northeastern Peru’s Cajamarca region, following 10 years of inactivity. With an estimated investment of $3.5 billion, the project is currently in the pre-feasibility phase. In the past, the project has been the subject of considerable environmental concerns, due to the risk of lagoon and ecosystem destruction and negative geotechnical and other environmental impacts. In addition, studies have identified the presence of sulfides, posing a risk of acidification and water quality problems in the area.
“China’s expansion is dangerous for the environment and because it fosters a setback in the country’s development. Chinese companies impose conditions on the territory, not the other way around,” Peruvian Attorney Isabel Recavarren, founder of the Center for Studies, Training, and Information on Latin America (CEFIAL), an organization that promotes collaboration and understanding between Europe and Latin America, told Diálogo. “One need only look at the Las Bambas copper mine operated by MMG in the Apurimac department, which has been the focus of constant protests by rural communities denouncing broken promises and pollution.”
According to the Peruvian Ministry of Energy and Mines (MINEM), in 2024, Chinese companies committed to invest some $11 billion in seven mining projects in the country, representing some 20 percent of the total portfolio of Peruvian mining projects, valued at $54 billion.
Among China’s investments are the Pampa de Pongo iron reserve, owned by Jinzhao Mining Peru S.A., and the Don Javier copper mine, owned by the Peruvian subsidiary of Junefield Holdings Limited, both located in the Arequipa department; the Chalcobamba and Reposición Ferrobamba copper mines, owned by MMG, in Apurímac; and the Río Blanco mines, owned by the Zijin Mining Group, in Piura. Added to these projects is the expansion of the Toromocho copper mine, owned by Chinalco, a subsidiary of state-owned Aluminum Corporation of China Ltd, located in Junín.
The environmental threat
In 2015, MMG made a modification to the Las Bambas’ environmental impact study, replacing the use of a slurry pipeline with land transport of minerals. As a result, there was a significant increase in heavy truck traffic, with a daily average of 370 trucks traveling more than 450 kilometers to reach the Matarani Port.
Noise, deforestation, pollution, dust, biodiversity loss, and lack of compensation for the negative impact have been some of problems for hundreds of local communities. “Among the main environmental impacts of Las Bambas are water pollution from toxic waste in rivers and air pollution from dust and heavy metals generated by mining,” says Recavarren.
Another notable case is the Toromocho copper mine in Junín, operated by Chinese state-owned company Chinalco. “It was sanctioned in 2020 by the Environmental Assessment and Enforcement Agency (OEFA) due to contamination of nearby rivers and lagoons with heavy metals,” Recavarren added.
The social impact
Chinalco announced an ambitious exploration campaign to expand the Toromocho mine pit. The mine currently produces 170,000 tons of copper per day and has a projected life span of 36 years. The new exploration phase, scheduled for 2025, will focus on the northern and northeastern areas of the pit, as well as deeper levels, to identify new copper and molybdenum reserves.
This expansion, however, has raised concerns among local communities and social organizations. The region has already faced socio-environmental consequences due to mining, and there are fears that the expansion could exacerbate these problems. Organizations such as the Muqui Network, which support communities affected by mining, have pointed out inconsistencies in the modification of the environmental impact study presented by Chinalco. The resettlement of the Morococha population, carried out in 2013 to allow the Toromocho mine to operate, was also highly criticized. A 2018 United Nations report concluded that the process of moving the small town was incomplete and dangerous, and that Chinalco violated the human rights of Peruvians by failing to adequately guarantee the living conditions of those resettled.
“The Chinese investors did not carry out the prior consultation procedure. In addition, in 2013, they forcibly displaced more than 5,000 people without adequate conditions,” says Recavarren.
Currently, the town of Morococha is facing poverty and extreme poverty. “Many families have had to migrate to other towns in search of better opportunities, since the new town of Morococha does not guarantee a decent life or economic movement,” Peruvian activist Jaime Borda with the Muqui Network, told the Amsterdam-based news site Global Voices. According to the activist, “Chinalco has relied on subcontracting and outsourcing labor, leading to low wages.”
The Peruvian Ministry of Labor and Employment Promotion (MTPE) has received multiple complaints against Chinese companies, including documented cases of labor exploitation against Shougang Hierro Peru, a company that has faced more than 19 labor disputes since 2012.
“The allegations of labor exploitation include poor working conditions, long hours, low wages, and lack of safety equipment,” says Recavarren. “There have also been reports of workers fired for trying to organize a union,” actions that demonstrate the predatory control of Chinese companies in the sector.
