Pillones Project: First Public–Private Partnership In Peru 20 Years Transforming Arequipa And The Sustainability Model Of The Country José Antonio Estela Ramírez1 Presenting author: jestela@samienergy.com 1 SAMI Energy Consulting (Peru) ABSTRACT The global demand for minerals to drive the energy transition poses a profound challenge: how to deliver these resources faster, smarter, and more responsibly. Within the framework of the World Mining Congress 2026, the Pillones Dam Project in the Arequipa region of Peru offers a proven two-decade case that directly addresses this imperative. Inaugurated on August 15, 2006, Pillones marked a milestone as Peru’s first formal Public-Private Partnership (PPP). In the absence of a specific legal framework at the time, the project broke institutional ground and became a precedent for the subsequent development of PPP legislation in the country. The collaboration between the public company EGASA and Minera Cerro Verde gave rise to the “Virtuous Water Circle,” a territorial circular economy model that integrated water storage, renewable generation, urban supply, agriculture, wastewater treatment, and industrial reuse into a regenerative system. By transforming a region affected by water scarcity into a hub of shared prosperity, the project increased renewable energy capacity by 20%, secured drinking water for more than 350,000 people, and catalyzed over USD 5 billion in subsequent investments. This case demonstrates that a circular economy approach applied to water management can become the structural foundation for sustainable mining growth and social stability in strategic regions worldwide. KEYWORDS Public-Private Partnership (PPP), Circular Economy, Water Security, Sustainable Mining, Integrated Water Resource Management (IWRM), Climate Resilience, Renewable Energy Generation, Strategic Infrastructure. 1. INTRODUCTION The global energy transition has placed unprecedented pressure on the mining industry, demanding faster, smarter, and more responsible operations. This challenge calls for models that harmonize economic growth with environmental regeneration and social cohesion, particularly in regions where water constitutes a strategic resource. In southern Peru, the region of Arequipa — the country’s second-largest regional economy and one of Latin America’s leading copper hubs — faced, prior to 2006, chronic water scarcity and a 3
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