The mining industry has been a crucial driver of Peru’s economic development for centuries, evolving into one of the country’s most powerful economic engines. In 2024, mining contributed around 12% to Peruvian gross domestic product (GDP).
The country is rich in strategic minerals, with the US Geological Survey (USGS) noting that in 2024, Peru was ranked first in production of arsenic trioxide (49% of global production), second in production of silver (14%) and zinc (12%), third in production of copper (12%), lead (6%), and tin (11%), and fourth for production of molybdenum (15% of global production).
The country is also rich in other key commodities including andalusite, crude borates, cadmium, diatomite, gold, iron ore, phosphate, and selenium.
Peru and Chile combined are currently the world’s second largest producers of mined copper, accounting for 40% of global output, with China making up an additional 50%.
Peru is a major exporter of commodities, with its mineral exports accounting for 64% of its total exports.
Needless to say, it is clear that Peru’s mining industry is a vital component of its economy and is a rising global player for the green energy transition with its exports of critical minerals.
At present, according to the US International Trade Administration, less than 1% of Peru’s land has been explored, with just above 1% of reserves under development, leaving strong potential for exploration companies.
The administration also notes that major mining projects valued at US$54.6 billion ($78 billion) are currently awaiting development.
Peru’s focus on natural resources is reinforced in its Mining Vision 2030, an initiative from the Ministry of Energy and Mines establishing guidelines for inclusive and sustainable natural resource management and development.
The industry, however, has seen social conflict arising from communities where extractive industries are located, with the government having reported that around 80% of all documented environmental and social conflicts in Peru relate to the mining sector.
The Extractive Industries Transparency Initiative (EITI) notes that the country has put increased focus on community concerns, particularly with social and environmental issues while also strengthening transparency and accountability in the distribution and use of the revenues generated by the extractive industries by local authorities.
Mining and exploration are largely governed by the Organic Law for the Sustainable Use of Natural Resources, with the country’s General Mining Law responsible for mining sector governance and regulation on concessions, authorisations, and the rights and obligations of concessionaires.
This stands alongside the Organic Hydrocarbons Law, regulating the development of hydrocarbon exploration and exploitation activities, providing the country’s Ministry of Energy and Mines the power to elaborate, approve, propose, and implement sector policy.
In late July 2026, Keiko Fujimori will take the seat as President of Peru, continuing a streak of wins by conservative candidates across Latin America. A report by Herbert Smith Freehills Kramer notes that they expect that private and foreign investment is expected to play a key role in this new administration, following a precedent set by Fujimori’s father’s administration in the 1990s.
Fujimori’s father, Alberto Fujimori, while in power established multiple legislative decrees regarding foreign investment in addition to sector-specific laws regarding infrastructure, mining, hydrocarbons, and more.
Fujimori’s new administration proposes a free-market economy and a deregulatory “shock” to the Peruvian economy, with a goal to reduce processing times for investment projects, reduce regulatory burdens, and eliminate redundant procedures, all of which should benefit the country’s mining industry.
The plan laid out by the administration proposes fast-track mechanisms for permit approvals as well as tax incentives for the reinvestment of profits from mining projects.
Amid this shifting policy environment and Peru’s renewed push to accelerate investment, attention is turning to junior explorers advancing discoveries and drill programs across the country.
Juniors lead the way
American Lithium (TSX-V:LI) has noted that Keiko Fujimori’s victory marks a positive outlook for the country’s mining sector and long-term investment climate, with the incoming administration’s focus on economic stability, security, and investment supporting the advancement of mining and infrastructure projects.
Australian Critical Minerals (ASX:ACM) is advancing drill-ready gold, copper, and silver projects in Peru, with assets spanning more than 25,000 hectares in the country, in addition to iron ore projects in Western Australia.
The company holds four key exploration assets in Peru, including Flint, Riqueza, Blanca, and Cerro Rayas, with additional projects under evaluation.
Australian Critical Minerals commenced a maiden drill campaign at Flint in late March 2026, testing a ‘large-scale’ mineralised system, as previously reported. The program covers 1,850m of drilling across four holes and targets a 4km strike system that is known to host multiple high-sulphidation epithermal gold-silver zones.
This drill program is the first campaign to test the broader hydrothermal system at Flint and is supported by historic geochemistry, induced polarisation (IP), geophysics, and geological mapping.
The company is also expanding its tenure westwards toward the San Juan Project, consolidating its position across the broader hydrothermal system.
Tinka Resources’ (TSX-V:TK) flagship property is the wholly owned Ayawilca Zinc-Silver-Tin deposit, located in central Peru, with a goal of bringing it into development.
CEO Graham Carman notes that while the project is polymetallic in nature, the current market dynamics for silver are really what’s driving the opportunity in Peru.
While the company’s primary focus is on Ayawilca itself, Tinka also has the nearby Silvia Copper-Gold Project in its pipeline.
Ayawilca comprises 8,200 hectares of mining concessions and has been described as one of the most significant emerging polymetallic deposits in the Americas, with significant upside stemming from its silver satellite cap at Colquipucro.
Tinka is planning a drill program of around 5,000m in the latter half of 2026 at Ayawilca, with a focus on targeting extensions of silver veins and upgrading its silver-rich resource areas. The overarching goal is to bring Ayawilca toward development and, eventually, production.
Solis Minerals (ASX:SLM) is focused on exploring for energy metals across South America, with projects spanning both Peru and Brazil.
The company’s Peruvian Cinto and Cucho projects contain porphyry copper targets. Cinto sits within a corridor containing some of Peru’s largest copper porphyries.
Channel sampling at the site has returned results including 23.4m @ 0.88% copper (Cu), 7m @ 0.82% Cu, 16.83m @ 0.52% Cu, and 3.5m @ 0.95% Cu.
Cinto contains a number of upside opportunities for near-term drilling, untested anomalies, and 2.5km of planned diamond drilling.
Cucho, on the other hand, is an advanced porphyry copper target, with the company in a low-cost, staged-entry agreement for up to full ownership.
To date, Solis has completed 2,000m of drilling in 2014, with all drill holes intersecting mineralisation including highlights of 52.7m @ 0.35% Cu, 0.016% molybdenum (Mo), and 1 gram per tonne silver (Ag) from 82.5m, and 91.2m @ 0.33% Cu and 0.8g/t Ag from surface.
The project has multiple untested geophysical and geochemical anomalies, and the company is planning for a 5km diamond drilling program.
Cinto will see drilling starting from early Q3 2026 while Cucho’s drilling will commence later in Q3, with surface exploration planned across Peru and Brazil ongoing.
Xali Gold (TSX-V:XGC) is focused on the development of Pico Machay, an advanced-stage gold project with a near-term production goal.
Pico Machay comprises 15 mining concessions over 4,700 hectares. The company outlines a clear road map to development with disciplined de-risking underway.
The project hosts a historical measured and indicated resource of 264,600 ounces (10.6 million tonnes @ 0.78g/t gold) and an inferred resource of 446,000 ounces (23.9 million tonnes at 0.58g/t gold). Xali also notes that the prior production decision considered a gold price of US$700 per ounce and that today’s significantly higher prices provide additional resource potential.
First assays from the company’s recently completed underground and surface channel and rock-chip sampling note ‘high-grade’ gold mineralisation. Key results include:
- 2.22 grams per tonne gold (Au) over 45.1m from underground (UG) Channel 1 including 4.17g/t Au @ 20m
- 1.49g/t Au over 41.1m from UG Channel 3 NS including 3.44g/t Au @ 8m
- 4.41g/t Au over 13.7m from UG Channel 3 EW including 6.45g/t Au @ 6.5m
- 2.28g/t Au @ 40m from Surface Channel 2
Additional results are expected in the coming weeks.
With the support of the Santa Ana community backing the development of Pico Machay, Xali notes that the company and community have agreed to work together with mutual benefits in responsibly advancing the project.
Xali is also focused on advancing environmental baseline studies, drilling to update the historical resource and to test exploration targets, advancing geological mapping, resource modelling, surface and underground sampling, and technical studies to support economic evaluations.
As Peru enters a new phase of pro-investment reform, junior explorers are positioning themselves at the forefront of the country’s next growth cycle.
Companies are now advancing work programs designed to unlock Peru’s vast untapped mineral potential, with progress over the coming months helping to define how quickly Peru can convert its geological endowment into new discoveries, development-ready assets, and long-term economic value.
Write to Amy Rotman at Mining.com.au
Images: Mining.com.au, Australian Critical Minerals
