RCR, November 26, 2024.- Miguel Cardozo, CEO of Altura Minerals, said that the censorship of the Minister of Energy and Mines, Rómulo Mucho, has generated a disorderly political climate in the management of the mining sector, which has a negative impact on investments. Likewise, he pointed out that this situation will allow illegal mining to continue to benefit from the Comprehensive Registry of Mining Formulations (REINFO).
“On this issue we have a disorder that has been going on for several years and it is clear that we have not resolved it and now another discussion has started again, a full debate in Congress and the censorship of Rómulo Mucho, and that is the only one thing. the more the dialog will be postponed,” he said through the Regional Communication Network (RCR).
He emphasized that as a result of this censorship, a key discussion to address the structural problems of the sector will be postponed, allowing the Conference to expand REINFO, a tool that is being exploited by illegal mining.
“Congress has very clear interests related to illegal mining activities and really what they want to do is block the actions that the government was trying to take,” he said.
In addition, Cardozo warned that the political panorama will affect the country’s competitiveness in the world market, which slows down investments and restricts economic development.
“We are always an informal country, where the interests of the authorities or politicians are at the forefront in the enactment of laws, in the discussion of norms and in political discussions to make decisions,” he said.
Despite the obstacles, he stated that some mining projects, such as Tia María, will continue, but the real challenge will focus on investment in exploration. “The problem is that the level of investment in exploration today is half of what was invested annually in 2012. We are making less and less progress and without exploration it is difficult,” said he.
Cardozo insisted that the lack of clear regulation and significant changes in the policies of the sector continue to stagnate the progress of mining in the country. “It should be around 500 million dollars a year, but still, I don’t think there will be a big difference compared to the previous year,” he said.
How could political instability in Peru’s mining industry affect foreign investor confidence?
Interview between Time.news Editor and Miguel Cardozo, CEO of Altura Minerals
Editor: Welcome, Miguel. It’s great to have you here today to discuss the current state of Peru’s mining sector. Your comments about the recent censorship of Minister Rómulo Mucho have raised quite a few eyebrows. Can you elaborate on how this has created a “disorderly political climate”?
Cardozo: Thank you for having me. The censorship of Minister Mucho has indeed led to significant instability in the management of our mining sector. This situation has not just introduced uncertainty; it’s effectively halted crucial dialogues necessary to address longstanding issues. With unresolved structural problems, we risk losing investor confidence, which is vital for our competitive standing in the global market.
Editor: You mentioned that this censorship could benefit illegal mining through the Comprehensive Registry of Mining Formulations (REINFO). Could you explain how this works?
Cardozo: Certainly. REINFO was intended to regulate and bring transparency to the mining process. However, with the current political turmoil, there’s a risk that illegal mining operations will exploit these loopholes. The more we postpone discussions aimed at tightening these regulations, the more opportunities illegal miners have to undermine the formal sector.
Editor: That leads to a concerning implication about illegal mining’s impact on the economy. You noted that Congress may have vested interests in illegal mining activities. Can you tell us more about what you mean by that?
Cardozo: In Peru, there is a complex web of interests involving various stakeholders, including politicians. SomeCongress members may benefit from the status quo of illegal mining, which complicates government efforts to regulate the industry responsibly. It feels as though they are actively blocking any meaningful action that could disrupt these advantageous arrangements for them.
Editor: How do you foresee this political situation affecting foreign investments in mining?
Cardozo: The current political climate is discouraging for foreign investors. They need a stable environment to make long-term commitments, and with ongoing uncertainties and a lack of clear policy direction, we are likely to see a slowdown in investments. This stagnation could not only impact mining but, more broadly, the economic development of the country.
Editor: What do you think should be done to steer the mining sector back on a productive path?
Cardozo: We need to foster open dialogue among all stakeholders, including the government, private sector, and civil society. It’s essential to address the structural issues plaguing the industry, advocate for transparent mining legislation, and put a stop to illegal activities. Only then can we rebuild trust and attract investment needed for the sector’s growth.
Editor: if you had one message to convey to the government and Congress regarding the state of the mining industry, what would it be?
Cardozo: My message would be clear: prioritize the health of the mining sector and the economy over individual interests. The mining industry has immense potential to contribute to national development, but it requires a thoughtful and united approach to make that happen. Let’s work together to create a framework that benefits all, rather than allowing division to undermine our progress.
Editor: Thank you, Miguel, for sharing your insights. The challenges in the mining sector are certainly significant, and it’s imperative we address them for the future of Peru.
Cardozo: Thank you for having me. I hope we can continue this conversation and promote a more stable and equitable mining environment.