India-Peru Mining Partnership at PERUMIN 37 Convention

Arequipa, Peru, will host PERUMIN 37 Mining Convention. This global event gathers industry leaders, policymakers, and investors. It marks the critical role of mining in energy security and industrial growth. For India, the convention offers a strategic platform to secure minerals essential for its economic and energy transition goals.

Peru’s Mining Significance

Peru ranks among the world’s top producers of copper, silver, zinc, tin, and gold. It is the second-largest copper producer globally, supplying about 12% of global output. These minerals are vital for traditional industries and emerging sectors like renewable energy and electric vehicles. Peru also has growing reserves of rare earth elements (REEs), crucial for semiconductors, defence, and green technologies. Its stable production and sustainable mining practices make Peru a reliable partner for countries like India.

India’s Growing Mineral Demand

India’s rapid industrialisation and energy shift require a steady supply of critical minerals such as copper, zinc, lithium, and rare earths. Copper is key for electrification, power grids, and electric vehicles. With demand expected to rise sharply, India must diversify its supply sources. Peru’s mineral wealth offers a strategic alternative to traditional suppliers, helping India secure its industrial and defence needs.

PERUMIN 37 – A Global Mining Platform

PERUMIN is more than a trade show. It is a forum for innovation, dialogue, and collaboration. The 2025 edition will include the Mining Summit and TIS Forum, focusing on decarbonisation, digital mining, and sustainability. Over 1,170 exhibitors will showcase advanced equipment and environmental solutions. International pavilions will facilitate partnerships between foreign delegations and Peruvian leaders. Specialised forums will address water management, logistics, energy transition, and social inclusion in mining.

Opportunities for Indian Investors

Indian companies can explore joint ventures and secure supply contracts for critical minerals. They can introduce homegrown technologies in digital mining and renewable integration. Participation will strengthen bilateral trade in minerals, fertilisers, and emerging sectors. Peru welcomes India as a long-term partner committed to sustainable growth. The Peruvian government promotes transparency, modern governance, and community benefits from mining wealth.

Strengthening India-Peru Relations

India and Peru share a history of friendship and expanding cooperation. Mining and critical minerals represent a dynamic area for collaboration. Peru’s move towards greener mining aligns with India’s expertise in digital innovation and sustainable infrastructure. This partnership supports global sustainable development goals. PERUMIN 37 acts as a bridge linking Peru’s resources with India’s industrial ambitions in clean energy and innovation.

Questions for UPSC:

1. Point out the challenges and opportunities in securing critical mineral supply chains for India’s energy transition.
2. Underline the role of sustainable mining practices in achieving the United Nations Sustainable Development Goals with suitable examples.
3. Critically analyse the impact of international mining conventions like PERUMIN on bilateral trade and industrial growth between developing countries.
4. Estimate the significance of rare earth elements in modern defence and technology sectors and discuss India’s strategic options to diversify their supply sources.

Answer Hints:

1. Point out the challenges and opportunities in securing critical mineral supply chains for India’s energy transition.

1. Rising domestic demand for minerals like copper, zinc, lithium, and rare earths due to energy transition and industrial growth.
2. Dependence on limited global suppliers creates vulnerability and supply risks for India.
3. Geopolitical tensions and trade restrictions can disrupt mineral imports.
4. Opportunities lie in diversifying sources, e.g., Peru’s abundant and stable mineral production.
5. Engagement in international platforms like PERUMIN enables joint ventures and long-term contracts.
6. Adoption of sustainable mining and digital technologies can improve supply chain resilience and transparency.

2. Underline the role of sustainable mining practices in achieving the United Nations Sustainable Development Goals with suitable examples.

1. Sustainable mining reduces environmental degradation, supporting SDG 13 (Climate Action) and SDG 15 (Life on Land).
2. Water management forums at PERUMIN show responsible use of scarce water resources (SDG 6 – Clean Water).
3. Inclusion and community benefit initiatives promote SDG 1 (No Poverty) and SDG 10 (Reduced Inequalities).
4. Decarbonisation and renewable integration in mining align with SDG 7 (Affordable and Clean Energy).
5. Modern governance and transparency enhance SDG 16 (Peace, Justice and Strong Institutions).
6. Examples include Peru’s commitment to environmental innovations and local community development in mining regions.

3. Critically analyse the impact of international mining conventions like PERUMIN on bilateral trade and industrial growth between developing countries.

1. Conventions provide a global platform for dialogue, technology exchange, and policy coordination.
2. They facilitate partnerships, joint ventures, and direct investment flows between countries.
3. Enable access to cutting-edge mining equipment and sustainable practices, boosting industrial efficiency.
4. Promote transparency and modern governance, improving investor confidence and trade relations.
5. Help diversify supply chains and reduce dependency on dominant suppliers, enhancing energy and industrial security.
6. However, challenges include unequal bargaining power and possible environmental/social concerns if not managed well.

4. Estimate the significance of rare earth elements in modern defence and technology sectors and discuss India’s strategic options to diversify their supply sources.

1. REEs are critical for semiconductors, advanced electronics, defence systems, wind turbines, and electric vehicles.
2. Global supply is concentrated in few countries, creating strategic vulnerabilities.
3. India’s growing defence and tech sectors require secure, diversified REE supply to avoid disruptions.
4. Peru’s emerging REE reserves offer a strategic alternative and early-mover advantage.
5. India can pursue joint ventures, invest in mining technology, and develop domestic REE processing capabilities.
6. Engagement through platforms like PERUMIN encourages partnerships and aligns with sustainable mining goals.