In late 2001, the Antamina copper-zinc project reached commercial production, adding a major new export-oriented mine to Peru’s economy. Its scale helped set the stage for a wider 2000s mining investment surge, tying Peru’s growth prospects more closely to global metal demand and prices.
In 2004, Peru adopted Law 28258 to regulate mining royalties—payments to the state for extracting mineral resources. The law also set rules for distributing royalty revenue to subnational governments, shaping how mining income would be shared with regions and communities.
In 2005, Peru announced its commitment to join the Extractive Industries Transparency Initiative (EITI), a global standard for publishing and reconciling payments from oil, gas, and mining. This move aimed to reduce secrecy around extractive revenues during a period when mining income was becoming more important.
Alan García took office in 2006 after Alejandro Toledo, continuing policies that emphasized trade openness and private investment. This continuity mattered for long-lived mining projects, which depend on stable rules, permits, and investor expectations over many years.
Peru joined EITI in 2007, moving from commitment to participation in a structured reporting and multi-stakeholder process. This created a formal channel for government, companies, and civil society to scrutinize resource revenues as the mining sector expanded.
In December 2007, the United States enacted the U.S.–Peru Trade Promotion Agreement legislation. While not mining-specific, the agreement supported a broader strategy of export-led growth and investor confidence during the commodity upswing of the late 2000s.
The 2008–2009 global financial crisis reduced world trade and created a sharp slowdown in many commodity-linked economies. Peru’s growth weakened in 2009 compared with the mid-2000s boom years, highlighting the risk of dependence on external demand for minerals and other exports.
The Peru–U.S. Trade Promotion Agreement entered into force on February 1, 2009. By lowering tariffs and setting investment rules, it was intended to increase trade and provide a more predictable framework for cross-border business during a period of heavy capital spending in Peru.
Peru and China signed a free trade agreement in April 2009 after fast negotiations. The deal mattered for mining because China was a rapidly growing buyer of copper and other metals, and the agreement aimed to deepen trade ties with a key commodity market.
The Peru–China free trade agreement entered into force on March 1, 2010. With China’s demand shaping global metal prices, stronger trade links reinforced Peru’s position as a mineral exporter and encouraged further investment into large copper projects.
In September 2011, Peru amended its mining royalty regime and related taxes, with changes effective October 1, 2011. The reforms aimed to capture a larger share of profits during high commodity prices, while also testing how higher government take might affect investment plans.
By 2013, the World Bank described Peru’s strong growth—linked in part to a boom in primary materials—as a major driver of poverty reduction. The message captured a central outcome of the 2000s mining-and-commodities upswing: faster growth translated into large social gains, even as inequality and regional gaps remained concerns.
In 2013, the value of Peru’s mining exports fell as prices dropped for key metals such as gold and copper. This price shock signaled the end of the most favorable phase of the commodity supercycle and foreshadowed a broader slowdown in Peru’s growth after years of rapid expansion.
In April 2014, Glencore Xstrata agreed to sell the Las Bambas copper project to a consortium led by MMG in a multibillion-dollar transaction. The deal underscored both the global competition for Peruvian copper assets and the growing role of Asian capital as the boom years gave way to a more cautious market.
By 2014, Peru’s GDP growth had slowed sharply compared with the high-growth years of 2005–2013, as the external environment became less supportive for commodity exporters. The slowdown marked a clear end point for the 2001–2014 boom narrative: mining remained central, but the easy tailwinds from high prices and rapid global demand growth had weakened.
Peru's Mining Boom and Growth (2001–2014)