By Taxpayers Association
A few weeks ago, Jorge Luis Montero was named head of the Ministry of Energy and Mines (Minem), after the departure of engineer Rómulo Mucho, who was censored by the Congress of the Republic following the complex problem of Reinfo. Various specialists agree that this portfolio has challenges that must be faced quickly and effectively.
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First challenge:
MINING FORMALIZATION
The Comprehensive Registry of Mining Formalization (Reinfo) did not function despite its 12 years of validity. But the proposals put forward by the Executive did not resolve the underlying problem, which ends up being the overlap of artisanal mining producers in concessions owned by other holders; but, definitely, the expansion of Reinfo would only continue allowing illegal mining activity to be camouflaged behind this mechanism. Thus, although there are thousands of artisanal miners in the process of formalization who have a voice that must be heard, the truth is that the vast majority do not want to comply with minimum environmental and tax requirements. What will the new minister do about it? A third way, a middle ground, is needed to solve this problem.
Second challenge:
FIGHT AGAINST ILLEGAL MINING
Illegal mining is a problem that, although it is related to Reinfo, has its own scope and must be treated differently. Only by differentiating informal miners from illegal miners can we truly combat illegal mining, which pollutes the environment, mistreats its workers, generates organized crime, extortion, contract killings and delinquency.
Third challenge:
MASSIFICATION OF NATURAL GAS
Will Minem continue trying to favor the monopolistic lobby of two natural gas distribution companies on this issue, just as engineer Rómulo Mucho did? PL 679, Gas Massification Law, remains paralyzed due to said lobby. This initiative will use direct resources from users in Lima and Callao and, therefore, the subsidies it will generate must have a cap and only favor those most in need, promoting transparency, free competition and accountability. We will see what Montero’s position is and we hope that Congress approves it without modifications as soon as he returns to his legislative work in March.
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Fourth challenge:
THE URGENT REFORM OF PETROPERÚ
Minem must support the restructuring of Petroperú so that this entity meets its objectives. This company is responsible for 93.6% of the total losses of our Public Treasury in 2023 and, despite this, it received a new financial rescue for US$750 million in 2024 and, in addition, an Emergency Decree was signed in its favor that would prevent pay its debt of more than US$1.5 billion. Do Peruvians really deserve to continue financing this bankrupt state oil company full of unions, privileges and inefficiencies?
Fifth challenge:
AGILITY IN FORMAL MINING INVESTMENTS
For a mining company to operate in the country, it must undergo 232 administrative procedures, which are supported by 470 legal regulations and have the participation of 29 public entities. Due to this excessive paperwork, Peru lost more than S/46,000 million in mining investments in 2023. To prevent this from being repeated, Minem should enable the use of the Digital Single Window of the Mining Sector (VUD MINEM), a modality of integrated services that will allow, through a technological platform, to attend to administrative services and procedures in an articulated manner.
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