Challenges and proposals to boost mining in Peru

In recent years, the mining sector in our country has been recognized as one of the fundamental pillars for economic revitalization. However, despite having significant investment potential in this sector, lengthy approval processes and excessive regulation have become obstacles that hinder the efficient development of mining projects. According to information provided by the Specialized Investment Monitoring Team (EESI) of the Ministry of Economy and Finance (MEF), the number of administrative processes required for the approval of a mining project has increased considerably in the last two decades, going from 12 to 265. This excessive bureaucracy, coupled with the lack of accountability on the part of responsible officials, the absence of a digitized platform for monitoring, and the lack of standardized indicators, have contributed to the slowing down of processes and the unequal competition between formal and informal mining. Furthermore, regulatory uncertainty has also negatively impacted mining investment in the country. According to the Fraser Institute, which compares regulations across different countries, we have regressed in several sub-indices, creating an unfavorable climate for investment. The lack of interoperability between different offices and the absence of a critical path for the approval of supporting technical reports have contributed to this challenging landscape. On the other hand, informal mining continues to pose a significant challenge. Despite efforts to formalize informal miners through the Comprehensive Mining Formalization Registry (Reinfo), most of them remain suspended due to onerous requirements and a lack of effective incentives for formalization. This situation has perpetuated the unequal competition between formal and informal mining, affecting the sustainability and development of the sector. In this context, it is essential to take concrete measures to simplify and expedite approval processes, ensuring equal conditions for all companies and promoting the formalization of informal mining. Proposals such as offering positive administrative silence to better-rated projects and providing incentives for informal miners to formalize could help revitalize the sector and encourage greater investment. Moreover, it is necessary to comprehensively address the reconciliation between mining, communities, and the environment. Implementing initiatives such as social advancement, reforming the canon law to benefit communities, and promoting flagship projects that demonstrate a commitment to environmental sustainability are key steps towards advancing towards a more responsible and sustainable mining industry in the country. In summary, it is crucial to establish policies and concrete actions to overcome the current challenges facing the mining sector in Peru. Simplifying administrative processes, promoting mining formalization, and strengthening the relationship between mining, communities, and the environment are key aspects to drive sustainable and beneficial mining development for all stakeholders involved.