The United States and Peru signed an agreement in Lima implementing a new action plan to support small-scale gold mining, protect the environment and prevent illegal mineral extraction.
Peru’s Ministry of Foreign Affairs announced the 2023-2024 action plan on Wednesday, which will build on a Memorandum of Understanding (MoU) established by the countries in 2017 and remain in effect between now and December next year. The new action plan is the first since 2020 and is intended to restore focus on the MoU’s objectives.
Peru’s Foreign Minister Ana Cecilia Gervasi said that the plan details the activities that Peru will carry out unilaterally or jointly with the Embassy of the United States in each of the areas of cooperation of the MoU, which include reducing or eliminating the use of mercury in small mining operations to protect human health, promoting alternative economic development in areas where mining is banned and prosecuting those involved with illegal gold mining.
“We trust that its implementation will contribute to strengthening the capacities of the Government of Peru to ensure that artisanal and small-scale gold mining is a responsible activity, free of pollution, free of crime and that contributes to the development and prosperity of the country and its population,” said Gervasi.
Additionally, the MoU focuses on increasing transparency in the gold supply and marketing chain and preventing encroachment of illegal mining in prohibited areas.
Canciller Gervasi, la Embajadora de los EE.UU., Lisa Kenna y el Viceministro de Minas, Jaime Chávez, suscribieron el acta de aprobación del plan de acción 2023-2024 que implementa el Memorando de Entendimiento entre 🇵🇪 y 🇺🇸 sobre cooperación en minería aurífera de pequeña escala. pic.twitter.com/EPbM46O5UY
— Cancillería Perú🇵🇪 (@CancilleriaPeru) August 23, 2023
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The action plan is a result of efforts from Peru’s Permanent Multisectoral Commission to monitor the government’s actions against illegal mining.
“Among the various issues on the full bilateral agenda, Peru and the United States agree on the importance of defending the environment and the need to confront the crimes that affect it, including its biological diversity and its communities,” added Gervasi.
The Peruvian mining sector has had a significantly increased rate of investments in recent days. The country’s Ministry of Energy and Mines recently said that investments in domestic mining during the month of June totalled US$378 million, a 9.6 per cent sequential increase from May this year and the highest monthly dollar figure thus far in 2023.
Peru expects to see a total of US$4.7 billion invested in its mining sector by the end of this year.
Active mining companies in the country include Vancouver’s Teck Resources Limited (TSX: TECK.A and TECK.B) (NYSE: TECK), which received regulatory approval for a copper project in the Arequipa region in May; Consorcio Minero Horizonte, a private company operating one of the country’s largest underground gold mining operations; and Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI), owner of the Caylloma silver-gold-lead-zinc underground mining operation.
rowan@mugglehead.com
