Peru's private sector cautiously optimistic after govt gains more powers

Peru's private sector is optimistic after congress gave the government more legislative powers for 90 days to implement economic policies, simplify regulations, and strengthen public safety and national defense.

“We met with the prime minister on May 21 and presented a set of high-impact, low-cost measures. The official agreed with us ... and said that it can't be that the approval of 14 state institutions is required to formalize artisanal mining,” Alfonso Bustamante Canny, president of Peru's biggest business association, Confiep, said in an interview with the Institute of Mining Engineers on Tuesday.

The government requested the powers to reverse a GDP decline, regain the trust of the private sector and fight crime.

“In the meetings I have had with the Executive, goodwill was expressed. They agree on the analysis of the problem and with the solutions we propose. There is a will to change things. But we see that making that a reality is still missing … [but] there are measures of immediate impact,” Bustamante said.

He added that the fight against informal mining must take priority in the short term. Oversight should start in formal areas that have contact with illicit activity and focus on small mineral processing services.

“At some point, illegal mining uses a formal circuit; and that circuit passes through the treatment plants that receive illegal gold, and they cannot prove where that mineral comes from. There you have to exercise oversight. The financial system must also help question why large amounts of money move in certain small and micro mining areas,” Bustamante said.

Reform of the mining formalization registry (Reinfo) is also needed. It was created to help formalize previously illegal and artisanal miners, but has become a shield for actors who never complied with a promise to abandon illegal activity and damaging socio-environmental practices.

“Today, excessive permitting in the formal mining sector coexists with an illegal sector that basically signed a sworn declaration that it will behave well and there is no follow-up. This is Reinfo today. Important adjustments need to be made,” added Bustamante.

According to the Reinfo portal, 86,830 artisanal miners are registered, 22,945 with valid and 63,885 with suspended licenses.