La Libertad: Pablo de la Flor highlights the risks of illegal mining.

In the context of the XXXV Northern Business Meeting, organized by the Chamber of Commerce of La Libertad, Pablo de la Flor, Corporate Affairs Manager of Minera Poderosa, addressed a topic that has become critical in the region: illegal mining. During his intervention, De la Flor emphasized that this phenomenon not only poses a challenge to the local economy but also presents serious social and environmental risks.

One of the central aspects of his analysis was the ineffectiveness of the Comprehensive Mining Formalization Registry (REINFO), a tool intended to regulate mining activities in the country. However, De la Flor stressed that its operation has been questionable, as many illegal miners prefer to remain informal when they see that their formalization process becomes complicated. "Experience tells us that illegal miners are not motivated to formalize and continue to benefit from exemptions from criminal liability," he indicated.

The manager also referred to the current situation of REINFO, which is set to expire at the end of this year. In this regard, he mentioned that there are three initiatives in Congress that not only seek to extend the deadline but also aim to reopen the registry. "This would be a grave mistake, as REINFO has proven to be dysfunctional in the past," warned De la Flor, who highlighted the difficulty of distinguishing between informal and illegal mining in the current context.

Another critical point he addressed was the alarmingly low percentage of miners who have formalized in the last seven years, with only 2,000 approved registrations, of which 73% are currently suspended. This situation highlights the ineffectiveness of the policies implemented so far. Furthermore, De la Flor alerted about the destination of illegal gold, which predominantly goes to countries like the United Arab Emirates and India, where due diligence and traceability systems are deficient.

La Libertad has established itself as the leading gold-producing region in Peru, generating almost 34% of the country’s total production. However, illegal mining is linked to 40% of gold exports, which amounts to a value between 4 billion and 5 billion dollars annually. This situation has worsened in the past year due to the increase in gold prices in the international market, which has further incentivized illegal activity.

De la Flor also made a call to action, emphasizing the need for strong and coordinated leadership from the State in the fight against illegal mining. According to his analysis, this activity has become the largest illicit economy in the country, even surpassing drug trafficking. "It is essential for the State to assume a consistent and coordinated commitment. Currently, there is no clarity in the interventions of the different public entities, such as the police and the Judiciary," he emphasized.

In his conference titled "Risks and Challenges of Illegal Mining in Peru," De la Flor highlighted that it is indispensable to have a clear and effective regulatory framework that fosters a safe and sustainable investment environment in the country. The lack of a solid system to regulate mining has led to the proliferation of illegal activities, which not only threaten the economy but also the social and environmental fabric of the region.

During the meeting, emphasis was placed on the importance of establishing public policies that go beyond mere regulation, promoting a solid dialogue between the government, businesses, and local communities. Only through effective collaboration can progress be made towards a real and sustainable formalization that benefits all stakeholders involved.

The challenge facing La Libertad is significant, and the voice of leaders like Pablo de la Flor is crucial to highlight the issue. The solution to illegal mining requires not only punitive measures but also comprehensive strategies that consider the economic and social development of the population that currently depends on this activity. Without a clear commitment and concrete actions, the risk of illegal mining continuing to prosper will be considerably high.