The Ministry of Energy and Mines (Minem) has presented a draft Supreme Decree to allow the owners of a mine to increase their daily authorized production by up to 10% without paying an additional validity fee. Currently, the tolerance is at 5%.
In its writing, Minem maintains that “mining activity has been seriously affected” by the global economic crisis, the slowdown in production by the owners of the mining activity and the loss of production generated by social conflicts, so “it is technically and opportune to increase the installed capacity by up to a maximum of 10%.”
Thus, through Ministerial Resolution No. 125-2024-MINEM/DM, Minem modifies article 3 of Supreme Decree No. 030-2016-EM and dictates measures to reactivate the extractive sector.
“The holder of the benefit concession can obtain up to a maximum of 10% additional of the authorized daily mineral treatment installed capacity without requiring to process the procedure for modifying the benefit concession established in the mining regulations,” the project states.
What is happening currently? If a mine exceeds 5% it must pay a “validity fee.” In practice, what is done by increasing the tolerance to 10% is to generate savings of that right to the mining owner, as Minem informed La República.
Reactivate mining with 10% more installed capacity
In this way, the Minister of Energy and Mines, Romulo Muchofulfills one of the promises it made during the world mining convention organized by the Prospectors and Developers Association of Canada (PDAC 2024).
The draft Supreme Decree, which must be aired in the sector for 10 business days before its publication, clarifies that the additional amount of installed capacity “can in no case occur as a consequence of the installation of new equipment.”
Nor will new auxiliary installations, repowering or modification of operating parameters of the equipment, process improvement, among others, be considered, which must “follow the procedure established by the standards of the matter.”
However, and although it is mentioned in the previous writing, The new Minem project does not clarify whether the mining owner will be able to use a greater volume of water than authorized in the respective license.
Source: Larepublica
Alia is a professional author and journalist, working at 247 news agency. She writes on various topics from economy news to general interest pieces, providing readers with relevant and informative content. With years of experience, she brings a unique perspective and in-depth analysis to her work.
