The Peruvian Congress has approved an extension of the formalization process for small-scale and artisanal mining, which has sparked significant debate. The new legislation, passed late on Friday by a substantial majority (87 votes in favor, 20 against, and 12 abstentions), extends the deadline for formalizing operations until June 30, 2025, with a potential six-month extension authorized through a Supreme Decree from the Ministry of Energy and Mines (MINEM).
This reform modifies Article 6 of Legislative Decree 1293, which recognizes the formalization of small-scale and artisanal mining as a national priority. Under this extension, informal miners who have not completed the formalization process will continue operating under temporary permits through the Integral Registry of Mining Formalization (Reinfo). Originally intended to help miners transition into a legal framework, the program requires them to meet certain environmental and technical standards. However, critics argue that the Reinfo system has been misused, allowing illegal mining to persist and even expand, as enforcement remains weak.
The temporary permits were designed to give informal miners a legal path to continue operations while formalizing their practices. Participants must demonstrate progress in complying with regulatory requirements, including avoiding restricted areas and meeting environmental guidelines. Despite this, only a small portion of Peru’s estimated half a million informal miners have successfully formalized since the program’s launch in 2012. As a result, the extension has raised concerns about whether it will allow more miners to exploit these loopholes, continuing to operate illegally while evading proper regulation.
This controversy highlights the growing challenge of illegal mining in Peru, which has worsened due to rising gold prices, widespread unemployment, and inadequate state oversight. The environmental and social impact of mining, particularly in regions like Madre de Dios, has been severe, with illegal mining causing deforestation, mercury contamination, and land rights conflicts. Critics argue that the extended permits will exacerbate these problems unless stronger enforcement mechanisms are put in place.
The legislative package also includes provisions for enhancing the formalization process. MINEM, which oversees the industry, has been tasked with implementing an Interoperable System for Small-Scale and Artisanal Mining and a Unified Mining Formalization Portal to streamline the registration and formalization procedures. Congressional President Eduardo Salhuana Cavides stated that the goal is to address the challenges of small-scale mining with a new legal framework that balances the sector’s economic importance with the need for sustainable practices.
Despite these efforts, the program has been criticized for lacking sufficient enforcement to ensure compliance, with opponents accusing the program of enabling the expansion of illegal mining activities. Critics argue that the permits have allowed many illegal miners to disguise their operations as informal, effectively providing them with legal protection under the guise of the formalization process. By remaining in Reinfo, miners can continue their operations without facing legal consequences, even if they have not completed the formalization process. This has raised concerns that the system is being misused to perpetuate illegal mining.
In addition to concerns about the misuse of permits, critics also point to systemic corruption and weak enforcement mechanisms as key factors contributing to the persistence of illegal mining. Delays in the formalization process, combined with limited state resources and insufficient oversight in remote mining areas, have allowed illegal mining to flourish unchecked. Advocacy groups, such as the Observatory of Illegal Mining, have called for investigations into potential corruption within the Ministry of Energy and Mines (MINEM) and stronger protections for whistleblowers who expose misconduct within the sector.
Environmental and social impacts of illegal mining have been widely reported, with deforestation, mercury contamination, and land rights disputes plaguing regions such as Madre de Dios. The extension of temporary permits has raised fears that these issues will only worsen, as critics argue that the government is turning a blind eye to the severe damage caused by unregulated mining. The continuation of mining operations under the banner of formalization is seen by some as an excuse to ignore the broader environmental and social consequences that are continuing to unfold.
Legal experts, including César Ipenza, an environmental law specialist, have warned that the law, rather than curbing illegal mining, may inadvertently promote impunity. By transforming illegal mining operations into informal ones, the reform is accused of creating a climate where those involved in illegal mining feel emboldened to continue their activities without fear of legal repercussions. This has fueled skepticism about the long-term effectiveness of the formalization program and its ability to address the underlying issues of illegal mining in Peru.
