In a decisive move to overhaul the regulatory framework of the country’s mining sector, the Peruvian government has officially submitted a legislative proposal to the Chamber of Deputies aimed at dismantling the long-standing Integral Registry of Mining Formalization (REINFO). The proposed "Law for Small-Scale and Artisanal Mining" (MAPE Law) seeks to replace the current, often criticized, registration system with a more rigorous, centralized, and transparent structure designed to bring the country’s estimated 30,000 informal miners into the formal economy.
The bill marks a significant pivot in national policy, shifting from a strategy of endless administrative extensions to a permanent, results-oriented framework. At the heart of this transition is the creation of the National Agency for the Strengthening of Small-Scale and Artisanal Mining (FORMAPE), a specialized technical entity under the Ministry of Energy and Mines (MINEM) that will consolidate authorization, environmental oversight, and enforcement functions.
The Sunset of REINFO: A New Era of Consolidation
For years, REINFO has been the subject of intense debate. While intended as a pathway to legality, it has often functioned as a permanent limbo for thousands of operators. The government’s new proposal sets a definitive "sunset" date for the registry: December 31, 2026.
Following this closure, a transitional "consolidation regime" will take effect from January 1, 2027, to June 30, 2028. This 18-month window serves as the final opportunity for those currently registered in REINFO to bridge the gaps in their documentation—such as environmental certifications and legal access to mining concessions—required to transition into the "Ordinary Regime."
The "Ordinary Regime" will become the permanent pathway for new entrants. Unlike previous iterations of the formalization process, this system will require rigorous adherence to mining and environmental standards before any extraction activities can commence. By setting a concrete deadline, the government aims to end the cycle of legislative extensions that have historically undermined the credibility of the formalization process.
Chronology and Evolution of the Proposal
The path to this legislative proposal has been marked by mounting pressure to curb illegal mining and its associated environmental and social externalities.
- Pre-2024: Multiple extensions of REINFO created a "revolving door" where miners remained in a state of semi-legality, often operating without adequate environmental or safety oversight.
- October 2024: Minister of Energy and Mines, Guillermo Shino, signaled that the government was preparing a new framework. Initially, the proposal suggested a two-year consolidation window.
- November 2024: The formal legislative proposal was delivered to Congress. In a move to accelerate the transition, the executive branch tightened the timeline to 18 months, reflecting a sense of urgency to resolve the backlog of informal operations.
- The Future (2025-2028): Pending Congressional approval, the next two years will involve a massive administrative migration of data and personnel into the new FORMAPE agency, culminating in the closure of REINFO at the end of 2026.
Supporting Data: The Scale of the Challenge
The "Exposition of Motives" accompanying the bill provides a sobering look at the reality of small-scale mining in Peru. According to the government’s data, there are currently 31,574 active or suspended registrations under REINFO. Of these, 22,715 are categorized as "active," while 8,859 are currently suspended due to non-compliance.
The success rate of the previous model has been statistically low. Since the inception of the formalization process, only 2,345 mining operations have fully achieved formal status, representing 9,885 associated individuals. Perhaps most alarming is the financial isolation of the sector: data from the United Nations Development Programme (UNDP) and the planetGOLD Peru program indicate that 86.7% of small-scale mining transactions are conducted in cash, and 99% of operators have no access to formal credit. This lack of financial integration facilitates a shadow economy that is difficult to tax, regulate, or monitor for environmental compliance.
A New Technological Backbone: Traceability and Banking
A critical pillar of the MAPE Law is the implementation of a "Single Window" system and a comprehensive national traceability framework. FORMAPE will be responsible for managing a system that tracks the lifecycle of minerals from extraction to commercialization. By requiring the integration of data regarding mining rights, environmental certifications, transport logs, and sales, the government hopes to create a "digital net" that prevents illicitly sourced minerals from infiltrating the legal supply chain.
Furthermore, the bill authorizes the Banco de la Nación to open checking and savings accounts specifically for miners in the consolidation and ordinary regimes. This is a strategic move to force the sector away from cash-based transactions. By providing a formal financial identity, the government intends to offer miners the possibility of accessing credit, provided they meet the transparency and regulatory requirements of the new system. However, the proposal explicitly notes that this banking access does not constitute an automatic approval for loans; rather, it is a prerequisite for future financial health.
Incentivizing Formal Partnerships
Recognizing that the majority of artisanal miners operate on land owned by others—only 7.2% of REINFO-registered operators hold their own mining rights—the government has proposed a "contractual incentive" model.
Under the new law, holders of mining concessions who sign exploitation or cession agreements with small-scale or artisanal miners for a minimum of three years will receive significant tax and administrative benefits. These include:
- Reduced "validity rights" payments for the concession area during the term of the contract.
- Exemption from certain penalties associated with the concession.
These incentives are designed to foster formal, binding relationships between large-scale concession holders and small-scale miners. By formalizing these contracts, the state can better ensure that environmental and safety standards are upheld, shifting the responsibility of oversight from the state to a contractual arrangement between the concessionaire and the miner.
Environmental and Safety Mandates
The bill does not offer a "pass" on environmental responsibility. On the contrary, it mandates that the resumption or initiation of any mining activity requires sector-specific authorization and environmental certification. To ensure feasibility, the law proposes that environmental procedures be "proportional" to the scale and risk of the operation. This aims to reduce the bureaucratic burden on small miners without compromising environmental protection.
A major focus is placed on the reduction and eventual elimination of mercury—a toxic element widely used in artisanal gold processing. The law provides a roadmap for the transition toward cleaner technologies, with specific deadlines to be established in the regulatory phase. Furthermore, the bill retains strict exclusions: those operating in protected natural areas, indigenous reserves, or sites of cultural significance will not be eligible for the consolidation regime, underscoring a commitment to preserving Peru’s ecological and cultural heritage.
Official Responses and Implications
The proposal has drawn mixed reactions. Proponents argue that the consolidation of authority under FORMAPE will finally end the fragmentation of oversight between regional governments and the central state. By centralizing technical evaluations and sanctions, the government aims to professionalize the regulatory environment.
However, the implementation phase will be complex. The five-year transitional period for transferring environmental evaluation powers from regional authorities to FORMAPE reflects a realistic acknowledgment of the current institutional limitations. The government has also granted itself 120 days to draft the necessary regulations and the organizational structure for the new agency once the law is approved.
Critics and industry observers note that the success of this legislation depends entirely on the state’s capacity to enforce the new rules. If the "consolidation regime" simply becomes another multi-year extension, the cycle of informality will persist. Conversely, if enforced strictly, the law could spark a significant transition, forcing thousands of operators to either adapt, form formal partnerships, or exit the market.
Conclusion
The proposed MAPE Law represents the most significant attempt to date to reform Peru’s artisanal and small-scale mining sector. By creating a definitive end to the REINFO era, establishing a specialized agency in FORMAPE, and incentivizing financial and contractual formalization, the government is signaling that the era of "permanent transition" is over. Whether this legislative effort will succeed in curbing illegal activity while promoting sustainable development remains to be seen, but it is clear that for the 30,000 miners currently in the system, the clock is now officially ticking.
