Essays on Illegal Mining Industry in Peru Case Study

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The paper "Illegal Mining Industry in Peru" is a perfect example of a micro and macroeconomic case study.   Mining remains an essential economic activity in the economy of Peru since the early days. With the arrival of the Spaniards in the region, Peru began specializing in the mining of special metals and particularly silver (Sheahan 2010 p. 50). They introduced the use of money in trading activities to the indigenous people. Peru minted the first silver coin in the period and this marked the beginning of commercial mining that has continuously expanded to date.

The Spaniards targeted Peru for its richness in natural resources, particularly special metals that would generate a huge amount of income. They settled in Peru and enforced slave labor on the indigenous population while expanding the mining sector through transformational techniques. In the previous decade, the mining industry in Peru has received enormous domestic and foreign investment. GDP Composition Presently, the portfolio of the mining sector is $41 billion in Peru, demonstrating the high level of focus to mining by the country. Peru is the leading gold producer and exporter in South America and in 2013, it formed part of the top six gold producers who account for half of the global gold production.

In the same year, gold accounted for 21% of the country’ s exports at 185 tonnes, which accounted for 6.5% of gold mined globally. The gold mining industry immensely contributed to the economic growth of Peru through its large contribution to the GDP as well as job creation. In 2011, the four leading gold mines in Peru employed approximately 4500 workers contributing 1.4% of the total GDP (Hansen & Withal 2014 p. 157).

In 2013, the industry contributed $8 billion to the national income. The mining GDP has experienced an accelerating growth rate approximated at 260% in the past 20 years. The mining sector has attracted over US$18B worth of investments in the past 5 years and accounting for 60% of the total exports.  

References

The paper "Illegal Mining Industry in Peru" is a perfect example of a micro and macroeconomic case study. Mining remains an essential economic activity in the economy of Peru since the early days. With the arrival of the Spaniards in the region, Peru began specializing in the mining of special metals and particularly silver (Sheahan 2010 p.50). They introduced the use of money in trading activities to the indigenous people. Peru minted the first silver coin in the period and this marked the beginning of commercial mining that has continuously expanded to date. The Spaniards targeted Peru for its richness in natural resources, particularly special metals that would generate a huge amount of income. They settled in Peru and enforced slave labor on the indigenous population while expanding the mining sector through transformational techniques. In the previous decade, the mining industry in Peru has received enormous domestic and foreign investment.

GDP Composition

Presently, the portfolio of the mining sector is $41 billion in Peru, demonstrating the high level of focus to mining by the country. Peru is the leading gold producer and exporter in South America and in 2013, it formed part of the top six gold producers who account for half of the global gold production. In the same year, gold accounted for 21% of the country’s exports at 185 tonnes, which accounted for 6.5% of gold mined globally. The gold mining industry immensely contributed to the economic growth of Peru through its large contribution to the GDP as well as job creation. In 2011, the four leading gold mines in Peru employed approximately 4500 workers contributing 1.4% of the total GDP (Hansen & Withal 2014 p.157). In 2013, the industry contributed $8 billion to the national income. The mining GDP has experienced an accelerating growth rate approximated at 260% in the past 20 years. The mining sector has attracted over US$18B worth of investments in the past 5 years and accounting for 60% of the total exports.

Download full paperFile format: .doc, available for editing
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