Alarming figures of illegal gold exports in Peru: A problem that urgently requires solutions!

The illegal gold exports in Peru have reached alarming levels, according to the study "Comparative analysis of governmental actions against illegal and informal mining in South America" by the Peruvian Institute of Economics (IPE). Despite illegal mining being a widespread issue in the region, Peru stands out as the main exporter of illegal gold in South America, surpassing countries like Colombia, Brazil, Ecuador, Bolivia, and Venezuela in monetary value. The XV Symposium of the National Society of Mining, Energy, and Petroleum (SNMPE) was the setting where this concerning study was presented, revealing that between 30% and 80% of the gold exported in South America comes from illegal mining. In the case of Peru, it is estimated that in 2023, 77 tons of illegal gold were exported, equivalent to around US$4.833 billion, representing 44% of the country's total gold exports. Despite being one of the first countries to institutionalize policies to eradicate illegal mining, Peru has not made significant progress in this aspect, according to the IPE. The study highlights that the country's geography, with exposed borders and strategic zones for illegal gold extraction, contributes to the persistence of this crime. Carlos Gallardo, general manager of the IPE, points out that illegal mining investment in Peru has been increasing, even surpassing that of other countries in the region. This situation is concerning, especially in a context where gold and copper prices are at historic levels, further incentivizing illegal activity. The IPE highlights the border area with Bolivia as a critical point for the smuggling of supplies such as mercury, used in the treatment of illegal gold. The main destinations for this gold are Canada and India, highlighting the complexity and global dimension of this issue. Regarding the implemented policies, although Peru has been a pioneer in penalizing illegal mining and establishing formalization mechanisms, the results have been insufficient. For example, the Comprehensive Mining Formalization Registry (Reinfo) shows high levels of non-compliance among registered miners, indicating the need to improve formalization and traceability mechanisms. The IPE proposes permanent interventions in high-risk areas, a more effective formalization system with advanced technology, and collaboration with international organizations to combat illegal mining. Strengthening the Ministry of Energy and Mines (Minem) and temporarily centralizing the formalization process are some of the suggested measures to address this serious issue. In summary, the export of illegal gold in Peru is a concerning situation that requires urgent and coordinated actions at the national and international levels to effectively combat illegal mining and its negative impacts on the country and the region. Transparency, institutional strengthening, and the implementation of effective policies are key to addressing this challenge that affects not only the mining sector but also the sustainable development of the country.