Date first published: 22/05/2025
Key sectors: mining; cargo transport
Key risks: targeted attacks; civil unrest; kidnapping; business risks; business disruptions; economic risks
Risk development
On 5 May President Dina Boluarte suspended all mining activity in Pataz province, La Libertad region, for 30 days after the bodies of 13 gold mine workers from local firm R&R – contracted by gold mining company La Poderosa – were found on 4 May. The miners, who had been kidnapped on 30 April, were allegedly killed by illegal mining workers. The suspension applies to all mining operations in the province, and all Reinfo permits – temporary authorisations for informal miners undergoing legalisation – have been suspended.
Moreover, Boluarte’s government imposed a 06:00-18:00 (local time) curfew and announced plans to set up a military base in the area due to limited police presence. Boluarte also announced that the armed forces would take control of the zone surrounding La Poderosa’s mine and urged mining companies not to subcontract concessions, warning that this leads to a loss of control over who works in the mines and facilitates criminal activity.
Why it matters
The violence in Pataz triggered widespread public outrage, culminating in a nationwide strike on 14 May, with several violent protests reported across the country – including in the capital Lima and other major cities. Demonstrators criticised Boluarte’s administration’s failure to curb organised crime and protect workers. The unrest reflects broader concerns over deteriorating security conditions and weak state presence in high-risk areas, undermining public trust in state institutions.
The incident has also deepened political instability risks in the country, further damaging Boluarte’s approval rating – already the lowest in Latin America at just 2 per cent. Mounting pressure over the administration’s failure to curb violence and assert control led to the resignation of Prime Minister Gustavo Adrianzen on 13 May, ahead of an anticipated censure vote in Congress. The crisis underscores the Boluarte government’s weakening grip on governance amid rising insecurity.
The renewable 30-day mining suspension in Pataz – which includes formal operations and those undergoing legalisation – poses significant risks to the national mining sector and broader economy. The move directly affects key players such as La Poderosa and highlights the security threats facing mining operations in the region. Government efforts to restore order through curfews, states of emergency and military deployment reflect the severity of the crisis and could damage investor confidence in a sector vital to national revenues, accounting for around 15 per cent of GDP in 2024.
Background
Within La Poderosa’s mining operations alone, there have been 39 recorded homicides, with victims including contractors and artisanal miners, and 17 high-voltage towers destroyed by explosives in recent months. These attacks reflect a broader surge in organised crime in La Libertad region, where illegal mining networks compete for territorial control and routinely infiltrate legal concessions. The government has previously declared states of emergency in parts of La Libertad region and deployed security forces, but enforcement has been limited, and violence has persisted.
Risk outlook
The risk of further violence remains high amid ongoing competition between illegal mining groups and limited state control. Further targeted attacks on mining personnel and infrastructure should be expected, particularly against companies resisting extortion or illegal encroachment. While increased military deployment may temporarily deter criminal activity, structural issues such as weak law enforcement and widespread informal mining will continue to fuel insecurity. Scrutiny of Boluarte’s leadership will likely intensify, raising the likelihood of further resignations or censure motions as well as protests, particularly if violence escalates or security interventions fail to deliver results. The temporary mining suspension and broader perception of insecurity risks undermine investor confidence and disrupt operations beyond Pataz province, posing wider risks to the mining sector and state coffers.