Summary:

The Toromocho Project is a copper mine located in the highland of central Peru. Beginning with operations in the 1990s, the mine was purchased in 2007 by Chinalco, a Chinese mining company, becoming the first greenfield copper mine developed abroad by a Chinese company. Chinalco wholly owns the mine and operates through its local branch, Minera Chinalco Peru S.A. The mine was expanded again in 2017, raising annual production to over 300,000 tons of copper.

The community have been miners for many generations, and at first, the majority of the over 5,000 residents of Morococha welcomed the project, even with the stipulation that they would have to move to a new settlement: Nueva Morococha, a planned town built by Chinalco. However, the residents of the new city have faced disappointment with housing conditions and are often unable to find work in the new mine due to being considered ‘unqualified’ for the work there.

In addition, the around 40 families who did not agree to leave stayed in ‘Antigua Morococha’ have faced many difficulties as public services, including electricity, have been withdrawn. Facing harassment and restriction of access, the final families were forcefully evicted in September 2025.

Location: Morococha District, Junín Department, Peru

Companies: Aluminum Corporation of China (Chinalco). Minera Chinalco Peru S.A. (subsidiary of Chinalco)

Investors and financing: The project has been funded primarily through loans from Export-Import Bank of China and China Development Bank (CDB) to Chinalco. The former provided a $2 billion loan in 2010 and $419 million loan in 2013. Santander Spain provided a $300 million loan in 2016. From 2012 to 2015, CDB provided about $292 million. Other financiers include Peruvian banks (Banco Bilbao Vizcaya Argentaria, Banco de Crédito del Peru) and other private banks (Standard Chartered Bank (Taiwan) Limited and Natixis (Hong Kong) Limited), Caterpillar Financial Services Corporation.

Concerns:

1. Displacement and economic conditions: Almost 5,000 residents of Morococha were displaced by the mine. While most have accepted this change, many have found life in the Chinalco-constructed town of Nueva Morococha challenging, with unemployment at 52% as of 2017.
2. Land conflict and evictions: The approximately 40 families that stayed behind in Antigua Morococha faced diminishing services and harassment. Electricity service was suspended in 2019. Roads stopped being sprayed down to control dust (especially important given the increase in mining particulates). In September 2020, Chinalco blocked the last remaining road access, which residents requested a court to undo. In the following month, police officers attacked residents who were going to negotiate with Chinalco. After a 2018 government expropriation of the 34 hectares of land constituting Antigua Morococha for handover to Chinalco, residents submitted a lawsuit shortly after, which was admitted in 2019. The legal actions were unsuccessful: the last 5 families were evicted in late 2025.
3. Lack of proper consultation: The quick approval of Chinalco’s Environmental Impact Assessment report in 2010 sparked local protests against its speedy approval and the fact that they only received the report days before the hearing. These violations are also alleged to have resurfaced in 2020 regarding a Chinalco report about the $1.3 billion expansion project.
4. Environmental problems: The Kingsmill Tunnel Water Treatment Plant constructed by Chinalco in 2011 treats wastewater before discharge into the Yauli River. While general water conditions seem to have recovered from the heavy pollution from decades of mining by other companies in the region, some issues are unresolved. Namely, an acid runoff in 2014 led to a government-ordered suspension in mine works, and a local health ministry reported a high level of silver in the blood of local children in 2019.