Peru's Energy and Mines Minister: Aiming to Drive Approximately $40 Billion in Mining Investment Over the Next Five Years

en.Wedoany.com Reported - Guillermo Shinno, Minister of Energy and Mines of Peru (Ministerio de Energía y Minas, abbreviated as Minem), recently outlined the priorities for his department's future work, planning to drive national development by attracting new investment and expanding the coverage of electricity and natural gas services. He also introduced the main measures the government has taken to address price increases and ensure fuel supply.

Shinno stated that two targeted measures have been promoted to secure fuel supply: first, a targeted subsidy for diesel, and second, the declaration of a state of emergency in Ucayali. He explained that the emergency declaration would expand local storage capacity to up to 7 days by adding additional tanks. "With the subsidy and these tanks, there should be no supply shortages." He added that these two measures will be complemented by enforcement actions from the Supervisory Agency for Investment in Energy and Mining (Osinergmin) and the National Institute for the Defense of Competition and Protection of Intellectual Property (Indecopi) to prevent speculation.

In the mining sector, Shinno set a goal during his tenure to drive approximately $40 billion in investment over the next five years. To this end, he identified three priority issues to address—"licensing processes," social conflicts, and illegal mining—in order to expedite procedures and unlock around 14 mining projects. "We will carry out a major reform of the licensing system so that projects can be implemented more quickly." He also mentioned proposing a streamlined mining formalization process tailored to the realities of small-scale and artisanal mining, and suggested readjusting the distribution of certain mining royalties so that their benefits reach affected areas more directly. "These royalties must flow to these communities. We will mandate that they be invested in these communities, so that the people truly feel progress arriving."

In the electricity sector, the focus is placed on continuing to advance rural electrification projects. Shinno stated that efforts will be made to narrow the electricity access gap in the country's most remote regions. Regarding the potential impacts of the El Niño phenomenon, he noted that power generation and distribution companies have developed contingency plans to mitigate potential effects and ensure rapid service restoration and continuous supply.

Regarding Petroperú, Shinno confirmed that its restructuring process remains under the responsibility of the Private Investment Promotion Agency (Proinversión), with the goal of transforming it into a more efficient and sustainable enterprise. "Every business line must be profitable and self-sustaining," he emphasized.