Peruvian governor-elect plans to prioritize infrastructure, mining

The governor-elect of Peru’s Huancavelica region, Leoncio Huayllani, has promised to boost infrastructure projects and mining once he assumes office in January.

“We need to build a four-lane highway between Huancavelica and Chincha. This will allow us to reach Chincha in two and a half hours, and then Lima in four and a half hours. Currently, it takes us nine hours,” Huayllani told the Rumbo a Perumin event, organized by the Institute of Mining Engineers of Peru.

Apart from building a regional government headquarters, Huayllani also promised to swiftly finish the US$280mn modernization of the Huancavelica-Huancayo train, carried out via a government-to-government agreement starting in December.

“We have the mission to value a second stage of the train and articulate it toward the economic corridor with San Martín port in Pisco, Ica region. The objective will not only be to mobilize passengers but also to transport what we produce here,” he said.

Huayllani promised to encourage mining exploration by declaring it of public interest. Measures to strengthen the sector include the modernization of the regional energy and mines department, improve governance, develop a regional mining supply chain and create a conflict prevention office.

“We are going to implement a policy of zero social conflicts in the mining and energy sectors, and we will provide the budget, equipment, resources, and personnel to develop a policy of permanent coordination among the agents involved,” he said.

Mining will be crucial, because the industry is supposed to pay royalties Huayllani wants to invest in boosting other industries, such as agribusiness and textiles.

Huancavelica hosts Nexa Resources' US$706mn Pukaqaqa copper-gold project and Buenaventura's Julcani asset. Junior miner Silver Mountain recently detected gold-silver-zinc mineralization at the Reliquias mine.

To realize the plans, the conflict prevention office will have to focus immediately on the Pukaqaqa project, which faces local opposition but whose environmental impact statement was approved by the energy and mines ministry.

Nexa Resources said in late August the project complies with all regulations and doesn’t affect water sources.