Cesar Ipenza, Peru

Cesar Ipenza, a lawyer specializing in environmental matters, shares his experience in artisanal and small scale mining - ASM research and its current state in Peru and Latin America.

Can you briefly describe your work or experience expertise related to ASGM in the Amazon?

I am a lawyer and specialize in environmental matters. I also work as a university professor with undergraduate and postgraduate degrees. I had the opportunity to work in the Ministry of the Environment - MINAM since its creation in 2008, advising the first Minister of the Environment, Dr. Antonio Brack. He was very concerned about illegal mining and its impact on the Amazon.

Throughout my career, I have had the opportunity to accompany some formalization processes in regions such as Puno and Madre de Dios. And thanks to this, I have seen how there is an impossibility due to some conditions that are linked, for example, corruption, which includes the inability of our national governments to face informality, and on the other hand, regulations published by the central government, the latest regulations on mining formalization published during the government of former President Pedro Pablo Kuczynski, which created a new comprehensive mining formalization process, where I participated from the MINAM.

***Cesar with Dr. Antonio Brack, first Minister of the Environment of Peru***
Photo courtesy of Cesar Ipenza

How did you first get involved in this work?

Prior to my work at the Ministry of the Environment, I worked at the National Environmental Council and the Peruvian Ombudsman's Office. In addition, I have served as a consultant for various national and international organizations, researching ASM from different points of view: the first from the approach of the formalization process, which I consider to be an important route and that there are people who want, aspire and are willing to achieve it, and also helping the justice system regarding the prosecution illegal mining as a crime. I have also been a member of the board of directors of the Agency for Environmental Assessment and Enforcement - OEFA and the State Protected Areas Service - SERNANP.

Would you like to share an interesting fact about your work?

Thanks to my work in the field, I have understood that the reality of ASM in Amazon has many challenges, but I also believe that there is hope to do things in a better way. I have been able to comprehend the realities of the people who work in the field and how knowledgeable they are about the issue. That is why I know that many are enthusiastic to find solutions.

It is very important to learn directly from the field. Many miners aspire to become formal and have opted for the formalization process despite the adverse situations that may arise within the regional governments. I remember a miner who told me: "I want to do things right, I want to manage my concession well and remove the contaminated land from the organic part, and be able to close the concession correctly." This made me realize that there are miners who want to do things right and who are determined to do so, but I think that conditions and policies hold this back .

In my opinion, one of the biggest challenges has been to approve the legal framework, since there are many interests behind it. Many of these interests have managed to reach the government and the state apparatus, through campaign financing, and manage the processes according to their interests and this is a widespread issue.

Are there new developments or research related to the current state of ASM that you would like to share with innovators working in the field?

I had the opportunity to conduct a study on evidence of the link between corruption within small-scale mining in the Amazon for the USAID PREVENT Project called “Corruption in artisanal and small-scale mining in the Peruvian Amazon”, which showed that there are many pending issues that facilitate corruption. For example, there are multiple spaces for corruption that impede the progress of formalization. We identified 11 risks on this point, but also made 54 recommendations. This represents an innovative opportunity to be able to respond and seriously face what it represents. If we continue to have subnational government officials or servants, national government authorities involved in corruption situations, even if we have the best regulations, and sufficient resources, the situation won't advance.

Last year, I did a study that identified the best practices around money laundering for the Financial Action Task Force of Latin America - GAFILAT, in which we were able to identify how illegal mining is beginning to take power in different countries of the region, which groups 18 Latin American countries. This document is entitled “Strengthening the Effective Addressing of Illegal Mining as an Emerging Threat to Money Laundering in the Region” and was published last year.

***“Corruption in artisanal and small-scale mining in the Peruvian Amazon”***

USAID PREVENT Project, 2021

In your opinion, which problem or problems related to gold ASM in the Amazon need to be solved most urgently?

I believe that one of the most important issues is that we cannot continue to have various leaders at the regional level who do not know about ASM reality, or who respond to political favoritism, and people who are questioned, even with criminal proceedings linked to informal and illegal mining.

This reality prevents us from having people who are experts on the subject, and who can achieve proper management of their work activity. For me, this is related to corruption. If someone doesn't have the qualifications, how will they have an informed opinion? We must not get used to the authorities coming to the government that is only just learning about the complexities of ASM.

On the other hand, there are enormous risks such as the use of mercury and the lack of incentives for those miners who extract gold without using it. Both financial and reputational incentives should be included, allowing better practices to be undertaken, and this should be a priority.

I also believe that the Special Registry of Gold Traders and Processors - RECPO - should be strengthened. It is shocking, for example, that in Peru the production of approximately 120 tons of gold is declared, but 180 tons are exported. It is unknown where this difference of 60 tons comes from. The answer to this is probably illegal mining, as this gold production of unclear origin is being "laundered"

There is a need for a clear policy about what is done with mercury. On the one hand, we are told that mercury is no longer being imported into the country, but in recent times that situation has changed: the Ministry of the Environment has authorized the entry of nearly 70 tons of mercury, in addition to entering through our borders, such as the border with Bolivia. We need to change this reality.

Finally, clear tools to confront corruption, to prevent those who live from the conflict or the chaos of informal mining from taking advantage of this situation so that we can make formalization viable.

In your opinion, what are the greatest innovation opportunities related to ASM in the region?

Mainly, in the use of technology that prevents mercury use, such as gravimetric tables, which have been used since 2019. The technologies exist, but it is important to scale their use, adapt it and demonstrate the profitability of using this equipment.

Likewise, finding mechanisms for traceability in the ASM value chain, I believe, would also be another interesting opportunity to be able to achieve greater recognition and price of gold in some particular markets worldwide.

In your opinion, how do you think innovation could generate positive impacts on the environment and people's well-being?

I believe that only through innovation can we find clean technologies and avoid the use of toxic elements such as mercury, widely used in gold extraction.

Mercury is one of the most dangerous chemical inputs in the world, it cannot be easily eliminated and it has a tremendous effect on people, causing serious and irreversible damage to the health of women of childbearing age, for example, or contaminating rivers and species that inhabit them, like fish. These manage to find their way into the food chain of people, making the problem much more difficult to eradicate.

Innovation can also generate the right incentives, which without a doubt can in turn generate a positive impact for the well-being of society.

What excites you most about the Artisanal Mining Grand Challenge: The Amazon?

I find it interesting that the Challenge has several components, such as its international relevance and the impact that the activity has beyond the duration of the Program. This will allow us to see the traps of innovation and the proposed technologies, which are innovative and seek to solve the aforementioned challenges.

Also, I think it allows us to reflect and move forward since it highlights the impact of ASM activities in the Amazon, which is very important. I think that in general, we Amazonians are unique and we have a choice to make in terms of handling this situation. When we see it exposed from other eyes, it is that we see that this activity destroys the forests and shows us the impacts that it has.

In seeing the progress of the Program, I realized that the impact and activities of ASM in the Amazon are relatively new in such a complex ecosystem. We are not yet at a stage where mechanisms or tools have been developed to address these activities in their entirety, and I believe that initiatives such as the Challenge allow this sector to evolve, which will improve the future. I remain hopeful.