Latin America mining risks carry $54B price tag

AI desk brief

Above-ground risks have cost or stalled more than $54 billion in Latin American mining since 2018, including about $38 billion in losses and $16 billion in capital frozen in delayed projects. AMI cites roughly $7 billion in Peruvian copper projects and $4 billion across three Mexican projects held up by permitting, while experts stress that investors are increasingly pricing execution certainty, not just geology, when committing capital.

The article highlights how permitting, community conflict and security can derail major assets: Chile’s Collahuasi expansion had a key permit annulled, First Quantum’s $6.8 billion Cobre Panamá was shut after a court ruling, AngloGold wrote off $98 million at Quebradona, and Zijin said illegal miners took control of 60% of tunnels at Buriticá. Las Bambas alone has seen more than 700 days of blockades since 2016, with stoppages estimated at $9.5 million a day. Despite the risks, firms and governments are still courting capital through expansions, and reforms in Argentina, Chile, Brazil and Ecuador suggest the region remains a key source of copper, gold and lithium supply.