Peru Extends One-Time Temporary Mining Licences Until Year-End

Understanding Peru's REINFO Temporary Mining Permits: 2025 Extension Explained

Peru's mining sector has undergone significant transformation with the extension of REINFO permits until December 2025. This pivotal decision impacts thousands of small-scale miners and shapes the nation's resource governance approach during a critical transition period. Understanding the mining permitting basics is essential for grasping the significance of this extension.

What Are REINFO Temporary Mining Permits in Peru?

REINFO (Registry of Integral Mining Formalization) permits represent Peru's regulatory framework designed to bring informal mining operations into the formal economy. These temporary authorizations allow small-scale and artisanal miners to operate legally while they work toward achieving full compliance with mining regulations.

The system emerged from Peru's recognition that outright prohibition of informal mining was ineffective. Instead, REINFO creates a pathway for miners to continue their livelihoods while gradually implementing environmental, safety, and fiscal requirements that formal mining demands.

"REINFO permits serve as a transitional mechanism, not a permanent solution," explains mining governance expert Carlos Aranda of the Mining Engineering Department at Peru's National University. "They provide breathing room for miners while establishing incremental compliance targets."

Historical Context of Informal Mining in Peru

Peru's informal mining sector has deep historical roots, with artisanal mining activities dating back centuries. However, the modern explosion of informal mining accelerated during the 2000s gold price boom, when thousands of Peruvians turned to small-scale extraction for economic survival.

Previous formalization attempts faced significant challenges:

• The 2002 small-scale mining law established initial parameters but lacked enforcement mechanisms
• The 2012-2016 formalization drive registered miners but saw limited completion rates
• The 2017-2022 comprehensive formalization plan introduced REINFO but needed multiple extensions

According to the Ministry of Energy and Mines (MINEM), approximately 88,000 miners registered in REINFO between 2017-2024, but only around 12% achieved full formalization status by early 2025. This modest conversion rate highlights the persistent barriers to formalization that the current extension aims to address.

Why Has Peru Extended the REINFO Permits?

Minister Montero's Official Announcement

On June 23, 2025, Peru's Minister of Energy and Mines Jorge Montero announced a significant policy shift, extending REINFO permits "in one go" until December 31, 2025. This extension came as the permits were set to expire at the end of June, with the original regulatory framework allowing only a six-month extension with prior authorization.

"Our goal is to assist as many small-scale and artisanal mining enterprises as possible that have clearly expressed their desire to formalize their mining activities and participate in them to complete the formalization process," Montero stated in his official announcement, according to SMM News reporting on June 24, 2025.

The extension represents a deliberate policy choice rather than an automatic renewal, highlighting the government's strategic intent behind the decision.

Government's Strategic Objectives

Peru extends "one-time" temporary licenses for informal mining until year-end to achieve multiple strategic objectives:

1. Formalization completion: Providing additional time for miners who have made substantial progress but need more time to complete technical requirements

2. Economic stability: Preventing disruption to local economies where small-scale mining represents the primary livelihood for thousands of families

3. Resource governance: Maintaining regulatory oversight rather than potentially driving operations underground if permits expired

4. Regional development: Supporting sustainable mining practices in remote areas with limited alternative economic opportunities

Mining economist Dr. Elena Vásquez notes: "The extension recognizes the reality that formalization is a process, not an event. Many miners have invested significantly in compliance measures but face bureaucratic bottlenecks beyond their control."

"Without this extension, Peru risked creating a vacuum where thousands of miners would either cease operations—causing economic hardship—or continue working without any regulatory framework, potentially worsening environmental impacts." — Dr. Ricardo Estrada, Environmental Policy Institute of Lima

What Challenges Does the REINFO System Face?

Abuse of the Permit System

A significant challenge confronting the REINFO system is widespread misuse by operators who have no intention of pursuing formalization. According to police and industry sources cited by SMM News, "thousands of REINFO permits were being used by illegal miners" as of mid-2025.

This abuse manifests in several ways:

• Front operations: Criminal organizations establishing nominal REINFO registrations to provide cover for larger illegal operations
• Permit trading: Registered miners selling or renting their permits to unauthorized operators
• Boundary violations: REINFO holders extracting resources outside their designated areas
• Shell companies: Creating multiple registrations under different names to expand operations beyond limits

In the Madre de Dios region alone, authorities documented over 230 cases in 2024 where REINFO permits were being used to legitimize mining activities in protected areas where extraction is explicitly prohibited.

Environmental and Social Implications

The extended operation of informal mines, even under REINFO permits, creates significant environmental challenges:

• Mercury contamination: Small-scale gold mining remains Peru's largest source of mercury pollution, with studies from the Amazonian Center for Scientific Innovation (CINCIA) showing mercury levels in rivers near informal mining sites exceeding WHO standards by 5-8 times
• Deforestation: Satellite imagery analysis by Peru's National Forest Conservation Program documented approximately 11,000 hectares of forest loss attributed to mining activities in 2024 alone
• Water quality deterioration: Increased sedimentation and acid mine drainage affecting downstream communities
• Biodiversity impacts: Mining encroachment on sensitive ecosystems, particularly in buffer zones around protected areas

Social consequences are equally concerning:

• Labor exploitation: Informal operations often lack proper safety standards and worker protections
• Community conflicts: Tensions between formal mining companies, informal miners, and local communities over resource access
• Public health impacts: Exposure to mining-related toxins affecting surrounding communities
• Governance challenges: Weakened institutional authority in areas dominated by informal mining

How Does This Extension Impact Peru's Mining Industry?

Economic Significance

Small-scale mining represents a substantial economic force in Peru. Although precise production figures are difficult to obtain due to the sector's informality, the Ministry of Energy and Mines estimates that small-scale gold mining accounted for approximately 20% of Peru's gold production in 2024, valued at roughly $2.1 billion.

The sector provides direct employment to an estimated 200,000-300,000 people, with additional indirect jobs in supporting industries and services. In certain provinces, particularly in the southern highlands and Amazonian regions, informal mining constitutes the primary economic activity.

The table below illustrates the economic contribution of small-scale mining across key regions:

Regulatory Evolution

The REINFO extension represents the latest development in Peru's evolving approach to mining governance. Compared to previous extensions in 2019, 2021, and 2023, the current policy differs in several key aspects:

• Longer timeframe: Previous extensions typically lasted 6-12 months, while the current extension provides 18 months
• Stronger compliance requirements: The 2025 extension includes enhanced monitoring mechanisms
• Graduated approach: Different requirements based on miners' progress along the formalization continuum
• Stakeholder involvement: Greater participation from local governments in compliance verification

This evolution reflects Peru's attempt to balance competing pressures from international standards organizations, domestic economic needs, and environmental protection imperatives. Furthermore, these changes align with broader mining industry trends toward increased regulatory scrutiny and stakeholder engagement.

What Is the Formalization Process for Miners?

Steps to Achieve Formal Status

The path from REINFO registration to formal mining status involves multiple technical, administrative, and financial steps:

1. Registration: Enrollment in the REINFO system with basic operational information
2. Declaration of Commitment: Formal pledge to pursue full formalization
3. Accreditation of Land Rights: Demonstrating legal access to mining area through ownership or agreements
4. Environmental Certification: Completing an Environmental Impact Declaration (DIA) or simplified environmental study
5. Water Use Authorization: Obtaining permits for water access and discharge
6. Safety Plan Approval: Developing and implementing workplace safety protocols
7. Closure Plan Submission: Creating plans for eventual mine reclamation innovations
8. Tax Registration: Formal enrollment in tax system and compliance with fiscal obligations
9. Final Verification: On-site inspection by MINEM officials
10. Formalization Certificate: Issuance of formal mining authorization

Each step involves specific documentation requirements and approval processes, with estimated completion times ranging from 3-18 months depending on the operation's complexity and location.

Support Mechanisms for Small-Scale Miners

To facilitate formalization, the Peruvian government has implemented several support mechanisms:

• Technical Assistance Centers: Regional offices providing guidance on permit applications and compliance requirements
• Simplified Environmental Studies: Streamlined environmental assessment protocols for operations under certain production thresholds
• Financial Incentives: Reduced fees and tax benefits for miners actively pursuing formalization
• Technology Transfer Programs: Training in cleaner mining techniques and equipment
• Cooperative Formation Support: Legal assistance for miners wishing to organize into formal cooperatives

"The challenge isn't just about regulations—it's about capacity building. Many miners lack the technical knowledge to implement environmental controls or the administrative skills to navigate bureaucratic processes." — María Condori, Director of Mining Formalization Support Program

Despite these initiatives, significant barriers remain, including limited government capacity to process applications, high compliance costs relative to miners' income, and complex land tenure situations in many mining areas.

What Are the Stakeholder Perspectives on the Extension?

Mining Industry Viewpoints

The formal mining sector has expressed mixed reactions to the REINFO extension:

• Large-scale mining companies: Generally critical, citing concerns about regulatory inconsistency and unfair competition
• Mining suppliers: Cautiously supportive, recognizing small-scale miners as potential customers
• Industry associations: Advocating for stricter enforcement to prevent permit abuse

The National Society of Mining, Petroleum and Energy (SNMPE), representing Peru's largest mining companies, issued a statement expressing concern that "continued extensions without measurable progress metrics undermine regulatory certainty and investment confidence."

Conversely, the Association of Mining Service Providers has advocated for the extension, noting that formalization creates opportunities for technology adoption and professional service provision among previously informal operators.

Environmental and Community Perspectives

Environmental organizations have largely criticized the extension:

• Conservation groups: Oppose extension without stronger environmental safeguards
• Water protection advocates: Call for mandatory mercury reduction targets
• Research institutions: Emphasize need for better monitoring and enforcement

Indigenous communities and local governments have diverse positions depending on their relationship with mining activities:

• Communities with mining tradition: Generally supportive but request greater inclusion in oversight
• Agricultural communities: Concerned about water contamination and land conflicts
• Urban municipalities: Focus on formalization's potential tax benefits
• Forest-dependent communities: Strongly oppose extensions in sensitive ecological areas

The Federation of Indigenous Communities of Madre de Dios stated: "We recognize mining's economic importance but demand that this extension come with real environmental protections and respect for indigenous territories." This perspective highlights the importance of understanding the mining claims framework in relation to indigenous rights.

What's Next for Peru's Mining Formalization Efforts?

Post-Extension Regulatory Roadmap

MINEM has outlined a three-phase approach for the period following the December 2025 deadline:

1. Evaluation Phase (January-March 2026): Comprehensive assessment of all REINFO registrants' formalization progress
2. Categorization Phase (April-June 2026): Classification of miners into compliance categories with tailored interventions
3. Implementation Phase (July 2026 onward): Enforcement actions against non-compliant operations and support for miners nearing formalization

The government has signaled that future extensions will be highly targeted rather than universal, focusing exclusively on miners demonstrating substantial progress toward formalization.

Potential policy adjustments under consideration include:

• Regionalized approaches tailored to specific mining contexts
• Technology-based monitoring systems using satellite imagery and drone surveillance
• Enhanced coordination between environmental authorities and mining regulators
• Integration with broader rural development and poverty reduction initiatives

Success Metrics and Evaluation Framework

Peru's mining authorities have established key performance indicators to evaluate the formalization program's effectiveness:

• Conversion rate: Percentage of REINFO registrants achieving formal status
• Environmental compliance: Measurable reductions in mercury use and deforestation
• Economic formalization: Growth in tax contributions from newly formalized operations
• Safety improvements: Reduction in accidents and occupational diseases
• Social indicators: Community wellbeing metrics in mining areas

These metrics will be benchmarked against other Latin American countries with similar formalization programs, particularly Colombia's experience with its own formalization initiative. Additionally, these efforts will likely involve categorizing operations according to a deposit tiers guide to better tailor regulatory approaches.

FAQ About Peru's Mining Permit Extension

What happens to miners who don't formalize by the end of 2025?

Miners failing to complete formalization by the December 2025 deadline face several consequences:

• Loss of legal protection for continued operations
• Potential confiscation of equipment and materials
• Administrative fines ranging from 10-30 tax units (approximately $12,000-$36,000)
• Possible criminal charges for environmental violations
• Ineligibility for future formalization programs

However, enforcement capacity remains a significant challenge, particularly in remote areas where government presence is limited.

How many miners are currently operating under REINFO permits?

As of May 2025, MINEM reports approximately 88,000 active REINFO registrations nationwide, distributed across Peru's mining regions:

• Madre de Dios: 24,300 registrations (27.6%)
• Puno: 18,700 registrations (21.2%)
• La Libertad: 13,200 registrations (15.0%)
• Arequipa: 11,500 registrations (13.1%)
• Other regions: 20,300 registrations (23.1%)

Of these, approximately 10,500 miners (12%) have completed at least 70% of the formalization requirements, while roughly 30,000 (34%) show minimal progress beyond initial registration.

How does this policy affect Peru's international mining reputation?

The REINFO extension produces complex effects on Peru's international standing:

• Investment perspective: Creates uncertainty for international mining companies concerned about regulatory consistency
• Environmental compliance: Raises questions about Peru's commitment to international environmental agreements, particularly regarding mercury use under the Minamata Convention
• Responsible sourcing: Complicates due diligence for downstream buyers under OECD responsible mineral sourcing guidelines
• Regional leadership: Positions Peru differently from neighbors like Colombia and Ecuador, which have taken harder lines against informal mining

Peru extends "one-time" temporary licenses for informal mining until year-end, contrasting with Chile's stricter formalization requirements but offers more regulatory structure than Brazil's largely unregulated artisanal mining sector.

The Path Forward for Peru's Mining Formalization

The extension of REINFO permits until December 2025 represents both an opportunity and a challenge for Peru's mining governance. Success will depend on converting this additional time into meaningful progress toward a more formalized, environmentally responsible, and economically beneficial small-scale mining sector.

Achieving this balance requires coordinated action from government agencies, mining communities, environmental organizations, and international partners. The coming 18 months will determine whether Peru's approach to mining formalization becomes a model for effective transition or another chapter in the ongoing challenges of resource governance in resource-rich developing economies.

For mining sector stakeholders, indigenous communities, and policymakers alike, the REINFO extension offers a critical window to reimagine the relationship between formalization, environmental protection, and economic development in one of Latin America's most important mining nations.

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