Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
The Peruvian Ministry of Energy and Mines (Minem) is offering credits to artisanal and small-scale miners who have gone through a formalization process or are in the midst of it with the goal of fostering a sustainable and environmentally friendly approach to their work.
The credits are being offered through an initiative called planetGOLD, which is executed by the Minem and the Ministry of Environment with the technical assistance of the United Nations Development Programme.
The main goal of the new loans is to allow miners to acquire mercury-free processing equipment. The financial products are also aimed at the development of alternative or complementary small businesses led by gold sorters, mostly women, that are registered with the General Directorate of Mining Formalization (DGFM).
“These actions seek to promote business and financial development, as well as improve the value chain of small-scale and artisanal mining at the national level,” the Minem noted in a media statement. “This moves the formalization process forward and allows us to verify the effectiveness of management tools and public policies.”
According to planetGOLD, there are as many as 250,000 artisanal and small-scale miners operating in Peru and they are responsible for about one-quarter of the country’s gold exports or 38.7 tonnes each year.
Most of the gold produced by artisanal miners in the region is extracted using mercury. It is estimated that close to 145 tonnes of the toxic metal are emitted by these operations every year.
In addition to fostering mercury-free practices, planetGOLD also proposes strengthening the regulatory framework and providing miners with technical assistance, technology transfer, support for formalization and access to responsible markets.
