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Creative Proposals for Mining Formalization

Mine owners might sign exploitation contracts with informal miners for formalization.

Propuestas creativas para la formalización minera

Xennia Forno Castro-Pozo, an expert in mining and environmental law, highlighted a creative proposal to encourage formalization in mining. This consists in convincing concession owners to sign exploitation or assignment contracts with informal miners, specifically, those who are illegally exploiting their land.

“Mining formalization is a real problem. Many of the informal miners are occupying concession areas that belong to third parties. In addition, the latter are not willing to cede their areas so that the informal miners can begin their formalization. One idea that must be discussed at all levels is how to convince mining owners to allow it”, said Forno, newly appointed Advisory Member of the Advisory Council of our institution.

He also indicated that a creative proposal to encourage formalization is to allow mine owners to add the production of informal miners to their own in order to reach the minimum production or to establish a proposal. Thus, the mining owners would pay mining right fees as if they were small mining producers. “These are just two examples of how the mining formalization process can be quickly encouraged,” he said.

Forno Castro-Pozo also pointed out that the State’s involvement in resolving social conflicts has so far been slow and distant. “We all want a relationship of equality and trust. However, if the State does not participate from its regulatory and authoritative role we are going to continue to have problems,” he added.

Finally, the expert indicated that the contribution of the Advisory Council of the Chamber of Mines of Peru would consist in providing the authorities with valid and executable proposals. “If the time comes when we have to roll up our sleeves and do it ourselves, we will be in the front row,” she said.