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In this paper, I investigate the relationship between penal governance and mining capitalism. Drawing upon the mining conflict of Espinar (Peru), where an ongoing process of criminalization against indigenous communities takes place, I study the strategies of police surveillance and penal coercion that the Peruvian state uses to handle mining protests and guarantee capitalist resource extraction. The strategies include massive indictments against demonstrators, systematic use of state of emergency, private policing, and the transfer of criminal cases to distant jurisdictions. This study is based on 25 semi-structured interviews with actors who have inside knowledge of the criminalization process: police officers, prosecutors, environmental defenders, and defence attorneys, among others. The objective is to explain why, in spite of all the incentives, the state faces obstacles to achieving penal outcomes (convictions) and undermining mass mobilizations. Our study contributes by shedding light on the underinvestigated area of penal and extractive governance.