The Ministry of Energy and Mines (MINEM) warned on March 19 that a proposed legislative change to the General Mining Law could have negative effects on the sustainability of Peru’s mining sector. The ministry called for a comprehensive review of the proposal, which seeks to modify the regime for mining concessions.
The issue is significant because MINEM said that reducing deadlines for declaring concession expiration could weaken Peru’s competitiveness compared to other countries. The ministry also raised concerns that such changes might increase conflicts over concessions and provide greater incentives for illegal occupation, at a time when combating illegal mining is a national priority.
According to MINEM, these measures could directly impact mineral exploration activities, which are essential for discovering new deposits and ensuring the future sustainability of the sector. The ministry added that adopting regulations without considering operational realities creates uncertainty for formal investment and affects legal stability in the country.
MINEM emphasized that proposals such as shortening deadlines to prove production or minimum investment, progressively increasing concession fees based on area size, and significantly raising penalties require thorough technical and economic evaluation. “MINEM reaffirms its commitment to modern, formal, and sustainable mining,” the statement said. “Any reform to the concession regime must be based on technical criteria, regulatory predictability, and promotion of responsible investment across all scales of mining activity.”
The ministry urged lawmakers to reflect deeply so that any proposal is reviewed comprehensively with input from both the executive branch and all stakeholders in the sector. This approach aims to ensure a balanced regulatory framework that encourages investment, guarantees efficient resource use, and supports efforts against illegal mining.
MINEM also noted that many countries globally compete to attract new capital and unlock projects involving critical minerals. For this reason, it said Peru should continue working toward being competitive and attractive for mining investment by maintaining predictability and legal security.
