Updates from the Peruvian mining industry

The largest rare earth metals discovery in Peru was announced on Tuesday by the U.S.-based company RioSol and its Peruvian partner Compañia MInera Rio Sol. The report cautioned that although initial investigation reveals that the holdings are 10 kilometers long, additional exploration is needed to determine its precise extent. The discovery is located about 100 km outside of Cusco and reportedly has both light rare earth elements and heavy rare earth elements, as well as copper, zinc, aluminum, and other bas metals. According to Rildo Oscar Rodgriguez, one of the geology consultants that spearheaded the project, “It proves that the potential for rare earth elements exists outside of China with significant opportunity for development of new production in a mining-friendly country.”

Three special Peruvian courts will be created to deal with the backlog of environmental cases in the mining, fishing, and manufacturing sectors, announced the Agency for Assessment and Environmental Control of Peru (OEFA). This is a welcome development for both mining companies and environmental activists. Mining companies should experience an expedited resolution of permitting and licensing problems, while environmentalists will be reassured that judges trained and experienced in the issues will lead to better decisions in the environmental court. According to the report, the OEFA is an effective regulatory agency, having already closed major mining projects in 2014 for polluting and damaging the environment.