Peru Congress fires Mining Minister over Bill to curb informal mines
Peru’s Congress on Tuesday fired the Energy and Mines Minister over a bill the government had introduced to increase oversight on informal miners that had prompted nationwide protests.
A majority of lawmakers voted to fire Romulo Mucho, who is a close ally of the global mining industry — but had irked the nation’s growing informal mining sector with a proposal to introduce new regulations.
Hundreds of thousands of Peruvians work in informal mines, mainly extracting gold, under the umbrella of a mechanism known as Reinfo. Critics say Reinfo has become a cover for illicit economies. While Reinfo is scheduled to come to an end at the end of the year, some lawmakers are proposing to extend it. But Mucho had introduced a bill on behalf of the government ending it and proposing increased regulations instead.
The motion approved by Congress said Mucho “lacked interest and suitability to solve the problem of small-scale and artisanal miners in Peru.”
The congressional vote underscores the growing political clout of informal mining in Peru, which moves billions of dollars according to authorities but is also a key source of employment. Peru’s mining chamber SNMPE, which groups multinational mining corporations, vigorously opposes extending Reinfo and had backed Mucho.
President Dina Boluarte, who is among the world’s most unpopular leaders, will now have to name a new minister. A key question is whether she will pick someone who will double down on regulating informal mines or someone who will support extending Reinfo. Boluarte’s administration has been marked by deferring to congress when opposed.
The bill was introduced last week, prompting protests from informal miners throughout the country. On Tuesday, as many as eight highways were blocked by miners protesting the bill, including important ones like the Pan-American Highway and the so-called mining corridor that is used by several large copper mines like MMG Ltd’s Las Bambas.
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