• According to a study commissioned by the SNMPE, the informal sector manages to produce 2,207,000 ounces of gold per year, totaling US$4 billion annually.

According to a study conducted by V & C Consulting on behalf of the National Society of Mining, Petroleum, and Energy (SNMPE), the informal mining sector produces more than 2,207,000 ounces of gold per year, accounting for 39.3% of the country's total production and generating US$4 billion annually.

Dante Vera, a consultant for the SNMPE, revealed that the study shows that the illegal production is smuggled into Bolivia. This has enabled this country to increase its exports by 43% in recent years, data that contradicts its recorded formal production. “With this data, we can conclude that Peru could increase its exports by a similar percentage if there were no illegal mining activity,” he said.

This data was discussed as part of the analysis of the “Overview and Challenges of Combating Illegal and Informal Mining” session during the second day of PERUMIN 36. Here Vera pointed out that informal operations result in an annual loss of S/23.76 billion, which represents 2.5% of the Gross Domestic Product (GDP).

FORMALIZATION

The expert explained that in our country, there are around 200,000 non-formal miners (both informal and illegal), 87,771 of which are registered in the Comprehensive Mining Formalization Registry (REINFO). Of these, only 25,087 are undergoing the formalization process, while the rest (71%) have suspended it. Despite this, they enjoy “impunity” because being registered protects them from prosecution, even if they conduct illegal activities.

It should be noted that the process of formalizing illegal mining in Peru began 20 years ago, and in that time the government has only managed to legalize 11,101 miners. According to Vera, this represents a failure.

The study also shows that in Peru, there are 18 districts and provinces that are at higher risk due to illegal mining. These include Condorcanqui, Ayabaca, and San Ignacio in the Amazon, and the border provinces located in Loreto, as well as Atalaya, Puerto Inca, and Oxapampa (central jungle), Nazca, Palpa, Camaná, and Caravelí (central south), Madre de Dios, Puno; Pataz, Sánchez Carrión, Otuzco, Santiago de Chuco, Cajabamba, and San Marcos (northern mining belt).

In this regard, Vera stated that once the formalization period ends (December 2024), it will be up to the government to develop strategies for the State to regain control of the areas where non-formal mining occurs.

For the restoration of internal order, the SNMPE proposes increasing and coordinating multi-sectoral actions involving the Ministry of the Interior, the National Police, public prosecutors, and specialized courts.