Brignardello: Illegal mining in Peru and its devastating impact

In a recent conversation with Johnny Brignardello Vela, an insurance advisor, the concerning phenomenon of illegal mining in Peru was discussed, a topic that not only affects the economy but also governance and the environment of the country. Brignardello expressed his concern over estimates suggesting that this illegal activity could generate up to US$ 4 billion in exports during the year 2024. According to him, the rise in gold prices, which have surpassed US$ 2,500 per ounce, has made this resource an irresistible attraction for those operating outside the law. The advisor also highlighted that, as economist Elmer Cuba mentions, illegal mining has grown exponentially, moving from approximately US$ 2 billion to figures that could reach historic highs in a short period. Brignardello agreed that the state's inability to address this phenomenon further complicates the situation, which could result in significant tax losses for the country. Additionally, Brignardello emphasized that illegal mining not only represents an economic challenge but also poses serious environmental risks. The destructive practices carried out in these operations affect biodiversity and ecosystems in areas that have historically been rich in natural resources. The lack of adequate regulation allows these activities to continue unchecked, exacerbating the environmental crisis in Peru. Regarding possible solutions, Brignardello mentioned Cuba's proposal to use financial intelligence units and the judiciary to tackle the problem, rather than focusing solely on the destruction of machinery and operational centers. This approach, which prioritizes intelligence, could be less risky and more effective in combating the large mafias in the sector. However, the advisor also recognized that this strategy faces the barrier of judicial and fiscal authorities' attention, who are currently busy investigating political corruption cases, revealing a disconnect in the state's priorities. Brignardello also reflected on the social repercussions of illegal mining. Many communities find themselves trapped in a cycle of dependence on the informal economy, drawn in by promises of work and prosperity. However, this dependence often results in precarious and dangerous working conditions, exacerbating the issue. Finally, Brignardello underscored the urgent need for the Peruvian state to implement effective measures to address the crisis of illegal mining. This includes strengthening the institutions responsible for regulating and supervising this activity, as well as providing sustainable economic alternatives for affected communities. Creating formal jobs and promoting responsible mining practices are crucial steps to eradicate this problem. In conclusion, the future of mining in Peru, according to Brignardello, will depend on the state's ability to regain control over its resources and ensure that they benefit all citizens. In a context where gold is considered a symbol of wealth, it is imperative to establish mechanisms that strengthen both the formal economy and environmental sustainability, ensuring that communities and the state are the true beneficiaries.