Latin America mining risks carry $54B price tag
Permitting delays, social conflict and security threats are changing how miners deploy capital across a mineral-rich region.
Mining risks in Latin America have resulted in losses exceeding $54 billion since 2018, primarily due to permitting issues, community conflicts, and security concerns, according to Americas Market Intelligence (AMI). The estimate includes $38 billion in direct losses, such as write-offs, legal settlements, and fines, and $16 billion in capital frozen in delayed or halted projects.
Peruvian copper projects and Mexico's permitting problems account for significant portions of this figure, with $7 billion in Peruvian projects and $4 billion across three Mexican projects. Experts caution that the $54 billion estimate should not be viewed as a measure of the region's overall investment appeal, as Latin American countries vary significantly in the maturity of their mining industries, infrastructure, institutions, security, and regulatory trajectories.
The Mining Conflicts Observatory lists 284 conflicts involving 301 projects across the region. While risk is not necessarily driving miners out of Latin America, companies are becoming more selective about where and when they commit capital, favoring jurisdictions with more favorable conditions.
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