During the XV International Mining Meeting symposium, the president of the BCRP, Julio Velarde, addressed the difficulties faced by the mining industry in Peru. Velarde pointed out that, despite the country’s great mining potential, the creation of new institutions has increased the amount of administrative procedures, which complicates investment in the sector. He also highlighted the problems of illegal mining and the lack of application of the rule of law.
Velarde emphasized that, although it is essential to encourage mining investment, it is also vital to consider possible environmental impacts. His statements come in a context in which the Peruvian mining sector faces multiple challenges in the country.
What did Velarde say about mining investment in Peru?
Julio Velarde, in his speech, highlighted that Peru has great mining potential, but that, however, the creation of new institutions also implies a greater number of procedures and administrative requirements.
“There are several problems. We have mining potential, but we have become very complicated in procedures. What’s more, when new institutions are created, such as the creation of the Ministry of the Environment, which is very good, but when one creates a new institution, it also creates its own procedures and requirements. It always happens,” said Velarde.
Furthermore, he mentioned that the Administrative Procedures Law, while beneficial in some aspects, has also generated additional bureaucratic problems. “Before, a Minister could decide quickly, but now he needs the signature of … which ends up being an even longer process. Sometimes a Minister has no control over his ministry,” he commented.
Velarde also highlighted the importance of balancing the promotion of mining investment with environmental protection. “We all want mining investment, but at the same time we are concerned about any damage to the environment“, he noted. In addition, he indicated the need to find a balance between economic development and environmental sustainability.
What did Velarde say about the absence of the State against illegal mining?
In his speech, Velarde also referred to the problem of illegal mining, one of the biggest threats to the sector in Peru. He lamented the lack of State presence in areas affected by illegal mining and criticized the insufficient application of the rule of law.
“The State is not present, the rule of law is missing. A few years ago a premier said ‘Do you want us to fight this? We cannot go in to repress a mining company or a highway that has been taken.’ Not applying the rule of law becomes important “We are not asking for anything outside the law, but for the law to be applied,” he declared.
Illegal mining not only represents unfair competition for mining companies that operate within the legal framework, but also generates serious environmental and social damage.
Who is Julio Velarde?
Julio Velarde is a prominent figure in the Peruvian economic sphere. As president of the Central Reserve Bank of Peru since 2006, he has played a crucial role in the country’s economic stability. During his administration, inflation has been kept under control and a macroeconomic environment favorable for investment and economic growth has been fostered.
Velarde, with a solid background in economics and extensive experience in the financial sector, has been recognized both nationally and internationally for his leadership and contributions to economic development.
Source: Larepublica
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