PRESS RELEASE

Peru creates General Directorate of Mining Promotion and Sustainability

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Thursday, August 23, 2018

This press release from Peru's Ministry of Energy and Mines was published using an automatic translation sytem.

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  • By Supreme Decree that modifies its Organization and Functions Regulation
  • Ministry created the General Directorate of Mining Promotion and Sustainability and the Office of Management of Dialogue and Citizen Participation

The Executive Branch published yesterday the Supreme Decree No. 021-2018-EM that modifies the Regulation of Organization and Functions (ROF) of the Ministry of Energy and Mines (Minem), which formalizes the creation of the General Directorate of Promotion and Sustainability Minera, as well as the Office of Dialogue Management and Citizen Participation.

Precisely, on the eve, Minister Francisco Ísmodes stressed that competitiveness and sustainability are the main pillars of their sector, for the development of this important economic activity that represents around 10% GDP and more than 60% of the total value of our exports.

He also stressed that the development of a socially and environmentally responsible mining contributes, in an important way, to closing gaps in infrastructure, education and health, keys for the development of all Peruvians.

Thus, the new ROF of Minem establishes that the General Directorate of Mining Promotion and Sustainability will be in charge of proposing, evaluating and supervising the mining policy and regulations, as well as carrying out coordination, articulation, dissemination and promotion actions that promote the development sustainable of this activity key for the economic growth of the country.

Ísmodes Mezzano said that this body will have, among its main tasks: the unlocking of permits for the proper development of mining investments in the country as well as the close monitoring of the relationship between the private company, the population and the authorities.

The brand new Management will have the following organic units:

  • Mining Promotion Division: Will be responsible for designing the policies and regulations of the mining subsector, guaranteeing social cohesion, economic growth and environmental protection. It must also issue guidelines, plans and within its scope of competence. It will also be in charge of promoting investment; as well as to identify potential mining projects based on studies and research.
  • Mining Sustainability and Articulation Direction: It will be responsible for articulating, at intersectoral and inter-institutional level, the design of the strategies and mechanisms that allow the sustainability and viability of investments, as well as other activities of competence of the mining subsector.

Dialogue and follow-up on social commitments

The legal provision also establishes that the General Office of Social Management (OGGS) will have, from now on, two line agencies: the Dialogue and Citizen Participation Management Office and the Office of Management of Social Commitments.

  • Office of Dialogue Management and Citizen Participation: It will be focused on serving, participating and implementing processes and mechanisms of dialogue, mediation, negotiation, consultation and prior consultation for the proper development of mining-energy projects.
  • Office of Management of Social Commitments: This body will be responsible for identifying and monitoring the mandatory and voluntary social commitments of companies in the Energy and Mines sector that are part of or are subscribed after the approval of the Environmental Impact Study .

Supreme Decree No. 021-2018-EM states that the financing will be charged to the institutional budget of Minem, without demanding additional resources from the public treasury.

Among the final complementary provisions it indicates that the modification of the management documents must be made within a period of no more than ninety business days from the entry into force of this Supreme Decree.

August 21, 2018