Peru
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Removal of Peru's mining minister a setback in fight against illegal mining

Bnamericas
Removal of Peru's mining minister a setback in fight against illegal mining

The removal of Peru's energy and mines minister Rómulo Mucho is a blow to efforts to tackle illegal mining, according to experts.

Lawmakers voted to oust Mucho because they disagreed with how he handled the planned law to formalize artisanal and small miners (MAPE). With his departure, the chances of MAPE's approval are low, while it is likely that the comprehensive mining formalization registry (Reinfo) will be maintained.

Reinfo, initially created to help small miners, has been subverted by criminal actors and critics claim it is now used to shield illegal operations under the premise that the formalization process is ongoing.

It is estimated that illegal mining will generate US$6bn in revenues this year.

Former energy and mines minister Miguel Incháustegui told BNamericas that Mucho's errors regarding MAPE were not severe enough to justify his removal. Lawmakers "want to divert the issue to approve the expansion of Reinfo, which wasn't the underlying issue," he said.

Incháustegui also said that investments could be impacted, but to what extent will depend on who will succeed Mucho and on the measures congress approves.

José de Echave, former deputy minister of environmental management and current director of NGO CooperAcción, wrote on social media that “informal miners... celebrated. What some want is for Reinfo to remain open and for illegal miners to continue acting with impunity. I disagree with Mucho on several issues but [his departure] is a clear example of the enormous power that illegal mining has in the country.”

Reinfo was expected to end in 2020 but has been extended twice, and De Echave claimed that enough lawmakers decided to extend it a third time on November 28, preventing its expiration in December.

Illegal mining is a major problem in the north, especially in La Libertad region, where companies reported illicit actors invading their concession areas and launching attacks.

"Reinfo opens the door to illegality... and the mining formalization policy has failed. In more than 20 years, only 2% of artisanal and small miners have managed to consolidate their formalization," the institute of mining engineers (IIMP) said in a statement.

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