Over two days, mining professionals from Chile and Peru exchanged knowledge on advancing transparency and formalization in the mining sector, identifying obstacles faced by small-scale miners, and exploring regulatory improvements to promote sustainable development. José Farfan of ANPLABEN highlighted the pressing issues confronting South America’s small miners, including in Peru, where the sector is overwhelmed. Key concerns such as the scarcity of mining inputs, the absence of specific legislation regulating gold commercialization, and the complexities resulting from overlapping mining concessions came to the forefront.
The seminar underscored the urgent need to quantify the actual number of small miners operating and to establish clear rules for the trade of gold and other minerals to enhance legal certainty and market functioning. Farfan advocated replicating ENAMI’s successful promotion programs in Peru, aiming to improve access to the mining concession system while addressing conflicts arising from ancestral and indigenous land rights that sometimes pit small-scale miners against large mining enterprises. Proposals included creating a government-managed fund to purchase mining concessions and introducing alternative contractual frameworks to better incorporate small miners.
In tandem, the seminar spotlighted advancements in traceability technologies critical to ensuring the lawful and responsible origin of gold. Rubén Camargo, CEO of Solandra, emphasized that as processing plants expand and the volume of mineral flows rises, maintaining precise and transparent traceability becomes increasingly complex but essential. Modern traceability systems that unify information across operational areas and leverage technology not only prevent data fragmentation and errors but also satisfy growing regulatory demands, preserving trust and reputation in the industry. Audits, training, and cooperative engagement with local producers seek to affirm that responsible mining practices are attainable within communities.
Legal frameworks were also a focal point, with Ángel Chávez, mining counsel at Payet, Rey, Cauvi and Pérez Abogados, providing an in-depth review of Peru’s mineral concession laws. He clarified that mining concessions are considered unique real estate assets, legally distinct from the underlying land, and subject to specific rights and restrictions under the Ley General de Minería. Chávez outlined the causes for concession termination—including abandonment, renunciation, and nullity—and detailed regulations preventing re-petitioning of expired concessions by previous holders or their close relatives for at least two years, thereby discouraging speculative holding.
This seminar forms part of a broader pattern of bilateral initiatives aimed at fostering greater collaboration across the mining and resource sectors. Alongside growing institutional ties—such as binational agreements in trade, security, and infrastructure—shared efforts to enhance transparency, sustainability, and formalization in mining reflect a mutual priority.
As Chile and Peru navigate complex challenges associated with small-scale mining, indigenous rights, and the global demand for ethically sourced minerals, this forum marks a significant step towards harmonizing practices, encouraging responsible extraction, and bolstering the contribution of mining to their economies. The combination of legal clarity, technological innovation, and cooperative governance is set to define the trajectory of mining development across the Andean region.
This article was curated and published as part of our South American energy market coverage.
