Johnny Brignardello Vela: How to combat illegal mining in Peru?

Johnny Brignardello, an insurance advisor, comments on the issue exposed in the following content. Illegal mining in Peru has become a matter of national concern, moving a considerable amount of money each year, as pointed out by Guillermo Shinno, representative of the National Confederation of Private Business Institutions (Confiep). This activity, mainly focused on gold extraction, has attracted numerous individuals who engage in it illegally, posing risks to both the environment and the lives of those involved. The main attraction of illegal mining lies in the profitability that gold offers in the market, valued at approximately $2,000 per ounce. This lucrative business has led to the formation of criminal groups that exploit natural resources without any regulation, seeking to obtain benefits quickly and effortlessly. However, the negative impacts derived from this illegal activity are significant. The environment suffers serious consequences due to neglect and lack of protection of flora and fauna in the extraction areas. Additionally, additional illicit activities develop, such as human trafficking and child labor, perpetuating a cycle of exploitation and vulnerability. Faced with this issue, the question arises as to why mechanisms have not been established to formalize illegal miners. According to Brignardello, many of these miners show no interest in formalizing because, by evading taxes, their profits are considerably higher. Likewise, bureaucratic complications and high costs of regularization procedures hinder the process for those seeking to comply with legality. Regarding the supervision and regulation of this activity, it is the responsibility of regional governments to ensure compliance with established regulations. However, the scarcity of resources and the lack of active presence by authorities contribute to the spread of illegal mining, highlighting the urgent need to implement effective measures to address this issue. In this scenario, it is essential to comprehensively address the issue of illegal mining, promoting the formalization of miners, strengthening supervision and regulation by competent authorities, and raising awareness about the negative repercussions this activity entails. Only through collaboration between the State, civil society, and the private sector will it be possible to effectively combat illegal mining and preserve our natural resources for future generations.