Alleged Illegal Mining Operation Linked to Associate of Peruvian president Jerí
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A mining executive has publicly accused Zhihua Yang, a businessman with close ties to Peruvian President José Jerí, of conducting illegal mining operations in the Cajamarca region. The allegations center around unauthorized exploitation of a mining concession, informal extraction of minerals, and subsequent environmental damage, as first reported by the Sunday program Cuarto Poder.
A representative of Black Stone Mining Company SAC, Jorge Espinoza Gray, alleges that América SAM, a company linked to Yang, entered the Ricardo 1 mining concession – located in the Cuadratura hamlet, Hualgayoc province – without permission. According to Espinoza Gray, these activities occurred over several months in 2022, operating without authorization from either the concession holder or the Peruvian state.
The alleged illegal mining involved the use of explosives and heavy machinery to extract manganese, a crucial mineral used in the production of steel. This method of extraction, known as open pit mining, involves the direct removal of land to access the mineral deposits. Reports from the Regional Directorate of Energy and Mines (DREM) of Cajamarca corroborate the claims, confirming mining activity, machinery presence, and material storage within the Ricardo 1 concession. Further verification came from the INGEMMET geoportal, which confirmed the coordinates of the activity fell within the boundaries of the concession.
Previous Investigations and Political Connections
A tax inquiry into the alleged illegal mining began in 2022 following a series of operations and technical findings. While Yang initially agreed to a “principle of possibility” – a legal mechanism allowing for reduced penalties in exchange for cooperation – the case has resurfaced due to the complex political and business ties surrounding Yang.
Seized Assets and Links to Chinese Firms
Parallel to the investigation, authorities seized dump trucks linked to américa SAM in May and August 2022 for transporting minerals without a valid REINFO – a crucial document for tracking mineral transport. Notably, some of these seized vehicles were later transferred to China Railway No. 10, a company currently under investigation for securing ample contracts with the Peruvian state.
This case raises serious questions about oversight in the mining sector and the potential for undue influence, especially given the accused’s proximity to the current administration. The renewed scrutiny of these allegations underscores the ongoing challenges Peru faces in combating illegal mining and ensuring responsible resource management.
Why it happened: Jorge Espinoza Gray, representing Black Stone Mining company SAC, alleges that América SAM, linked to Zhihua Yang, illegally entered the Ricardo 1 mining concession to extract manganese without proper authorization.
Who was involved: Key players include Zhihua Yang (businessman with ties to President Jerí), América SAM (company linked to Yang), Black Stone Mining Company SAC (represented by Jorge Espinoza Gray), the Regional Directorate of Energy and Mines (DREM) of Cajamarca, and China Railway No. 10.
What occurred: Illegal mining activities,including the use of explosives and heavy machinery,took place within the Ricardo 1 concession in 2022,resulting in the extraction of manganese and potential environmental damage. Dump trucks used in the operation were seized and later transferred to a Chinese firm under investigation.
How it ended (as of this report): A tax investigation began in 2022,with Yang initially agreeing to cooperate. However, the case has been revived due to Yang’s political connections. The seized assets and links to China Railway No. 10 are under further scrutiny, highlighting concerns about oversight and potential undue influence in Peru’s mining sector. The investigation is ongoing, and the final outcome remains uncertain.
