📈 Will you get serious about investing in 2025? Take the first step with 50% off InvestingProClaim Offer

Peru Congress removes mining minister as small miners snarl roadways

Published 27/11/2024, 01:47 pm
© Reuters. FILE PHOTO: Peru's Mining Minister Romulo Mucho speaks during an interview with Reuters, in Lima, Peru May 3, 2024. REUTERS/Marco Aquino/File Photo
XAU/USD
-
GC
-
HG
-

LIMA (Reuters) -Peru's Congress removed Energy and Mines minister Romulo Mucho from his post on Tuesday as protesters from small-scale miners in the Andean nation camped out at the legislature's building in the capital and intermittently halted traffic throughout the south.

Peruvian small-scale miners - many of whom do not operate with proper permits - have been demanding a two-year extension of a program that allows them to operate temporarily.

Authorities say the program, meant to regularize the artisanal miners, has caused illegal mining to multiply.

In Congress, legislators argued that Mucho had shown a lack of interest and/or ability to solve the issue.

President Dina Boluarte must now accept Congress' decision within 72 hours and appoint a new energy and mines minister, an important position in the world's third-largest copper producer and a sector key to the local economy.

There was no immediate comment from Mucho or Boluarte's office.

Since last week, hundreds of small-scale miners have set up camp in front of Congress, sleeping in tents, to protest the scheduled end of the program that had allowed them to operate, called REINFO. Throughout the south, other protesters set up roadblocks.

REINFO is currently set to expire on Dec. 31 and Mucho's office last week sent a bill to Congress to set a six-month period after that date for all miners to regularize their activities. Artisanal miners were still unhappy with the move, arguing it was not enough time to make their operations legitimate.

REINFO was first created more than a decade ago to formalize small-scale mining, and has been repeatedly extended across several administrations since then.

However, the government alleges that artisanal miners have abused the scheme by mining in prohibited areas or on land owned by third parties.

© Reuters. FILE PHOTO: Peru's Mining Minister Romulo Mucho speaks during an interview with Reuters, in Lima, Peru May 3, 2024. REUTERS/Marco Aquino/File Photo

Illegal mining in Peru is extremely lucrative. In the first 10 months of this year, it brought in $1.1 billion, according to data from the local financial regulator. That would make it even more profitable than drug trafficking, the regulator claims.

Small-scale miners are responsible for about 40% of Peru's gold production, according to government data. Peru produced 99.7 million grams of gold in 2023, a 2.8% year-on-year rise.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.