Procedures and illegal mining impact Peru's decline in the Fraser Institute ranking

Announcement by the Institute of Mining Engineers of Peru (IIMP)

This is an automated translation of the press release issued in Spanish

The Fraser Institute of Canada released the results of its 2023 Annual Survey of Mining Companies. This has shown that Peru's Investment Attractiveness Index went from 34th place among 62 participating countries in 2022, to 59th place. from 86 countries registered in just one year.

Although Oswaldo Tovar, a mining consultant, warns that it is not correct to compare the surveys because the number of jurisdictions or countries he considers has varied in recent years and also the qualification modality, it is evident that Peru, in the opinion of investors, has been discredited.

“It is definitely very unfortunate, much of it is due to political noise and permits for exploration,” said Raúl Garay, director of the Institute of Mining Engineers of Peru (IIMP).

For his part, the director of Sociedad Minera El Brocal, Carlos Gálvez, considered that this is a consequence of excessive paperwork and also the advance of illegal mining.

“The Fraser survey is an opinion, it is a survey of investor perception, so they see that in Peru it is very difficult to make investments, not only because of the bureaucracy, but also what is happening is that from Congress The characteristics, permanence and security of the concessions are being put under threat by allowing or leaving a window open for illegal mining to be installed in legal and formal operations,” he declared on the Regional Communication Network (RCR).

In that sense, he condemned the facilities that exist for illegal mining to continue operating and even obtain authorizations for the handling of explosives, which is a rather complicated procedure for a formal company, but “for anyone who has a Reinfo it is simply a patent of marque for do whatever you want,” he said and added that for this reason there are terrorist attacks on formal operations.

“Under these conditions, it is very difficult for an international investor to want to come to Peru and only Peruvians are willing to put their hearts forward. We hope that at some point the Government will put on its pants and put order in the management of these concessions, the permits and the legality of the operations,” Gálvez emphasized.

“I see with concern that Minister Rómulo Mucho, who is absolutely committed to mining activity, will quickly get bored of seeing that he does not have the support of the rest of the Government,” he added.

Finally, he indicated that the situation is already affecting us currently because the projects are not being developed, the infrastructure is not being managed and we are already seeing the poverty rates.

“What these poverty rates are going to bring about is greater social conflict. When there is social conflict and there is an absence of the State, we already know who they look at, they look at the mining companies that become hostages of the communities,” Gálvez warned.