Peru election shows no appetite to tackle illegal mines

April 12, 2026 01:04 | News

Peruvians are heading to the polls to elect a new president and Congress, but illegal mining — a major driver of deforestation and mercury pollution — has received little attention on the campaign trail, even as it spreads deeper into the Amazon rainforest and indigenous territories.

Experts warn the gap reflects a broader failure to confront what has become the country’s largest illicit economy, with major consequences for the environment, public health and indigenous communities.

“Political parties don’t understand that illegal mining has become the country’s main criminal activity and the one that moves the most money,” environmental lawyer César Ipenza said. 

“There is either ignorance about what this represents for the country — or, in some cases, parties are already part of this economy.”

According to projections by the Peruvian Institute of Economics, illegal mining generated more than $US11.5 billion ($A16.3 billion) in 2025 and over 100 tons of gold exports — rivalling the formal sector and surpassing drug trafficking. 

Some political candidates’ proposals, including former ministers and technocratic candidates such as Jorge Nieto and Alfonso López Chau, include measures such as gold traceability, financial intelligence and protections for environmental defenders, but these remain fragmented and fall short of a comprehensive strategy.

Others — including candidates from influential conservative and populist parties, such as Keiko Fujimori, Rafael López Aliaga and César Acuña — focus on security, economic growth or extractive development without directly addressing illegal mining or its links to corruption and territorial control in the Amazon. 

In some cases — including those of Ricardo Belmont and Carlos Álvarez, both media figures turned political candidates — plans omit the issue entirely.

“Illegal mining and illicit economies are not being prioritised in government plans,” said Magaly Ávila, director of environmental governance at Proetica, a Peruvian anti-corruption group, noting that around 64 per cent of party platforms fail to meaningfully address the issue, while only about five per cent do so “clearly and explicitly”.

A March analysis by Peru’s Observatory of Illegal Mining reinforces those concerns, finding that only 12 of 36 registered political parties present specific proposals, while others offer only general statements without concrete measures or do not address the issue at all.

Illegal gold mine in Peru's Amazon
The soaring gold price has seen an increase in illegal mining and deforestation in Peru’s Amazon. (AP PHOTO)

Peruvian authorities have previously announced operations and strategies to combat illegal mining, though experts say enforcement remains limited. 

The Associated Press contacted several government entities for comment on the issue of illegal mining and indigenous protections, but did not receive a response by the time of publication. 

Peruvian MPs have repeatedly extended a temporary registry that allows informal miners to continue operating while seeking formalisation, a system critics say has been widely abused and has helped illegal mining expand.

At the same time, recent legislative changes have undermined the capacity of prosecutors and judges to pursue organised crime, including illegal mining networks, according to rights groups. 

Analysts say the measures reflect political pressure from small-scale miners, who have staged protests to demand looser regulations, complicating efforts to tighten enforcement.

The protests appear highly organised, suggesting the involvement of more powerful actors behind the scenes, said Julia Urrunaga, Peru program director at the Environmental Investigation Agency (EIA). 

Illegal mining has grown rapidly in recent years, fuelled by soaring gold prices, which have climbed to around $US4,500 ($A6,372) to $US5,000 ($A7,080) per ounce — making even small amounts of gold highly valuable. 

Once concentrated in regions such as Madre de Dios, the activity has spread into other parts of the Amazon and beyond.

“The price of gold has reached historic highs, and that has obviously driven illegal mining to expand,” Ipenza said. 

“The state does not have the capacity to respond or pursue this activity.”

Illegal mining operations often rely on mercury to extract gold, contaminating rivers and entering the food chain through fish.

“In Amazonian river communities, between 50 per cent and 70 per cent of the diet is fish,” said Mariano Castro, Peru’s former vice minister of environment. 

“So exposure increases exponentially, and mercury is highly toxic, with serious neurological impacts.”

Environmental and health experts warn contamination in some regions already exceeds safety standards, posing long-term risks.

Expected expansion throughout the Amazon “will bring contamination, transnational criminal groups and direct impacts on indigenous and local populations,” Ipenza said.

Illegal mining already “puts at risk our health, biodiversity and ways of life,” said Tabea Casique, a board member of AIDESEP, Peru’s largest Indigenous organisation.

“Most political parties are not taking this problem into account or presenting concrete proposals,” she said.

A former illegal gold mining camp in Peru
Illegal mining operations rely on mercury to extract gold, contaminating rivers and fish. (AP PHOTO)

Former vice minister Castro called state efforts “insufficient” and said MPs have also weakened legal tools to prosecute illegal mining, including reducing penalties and limiting the ability to treat such operations as organised crime. 

Gaps in oversight allow illegally mined gold to enter legal supply chains, often through processing plants where it is laundered.

Ipenza called for the government to better control small-scale processing plants and for stronger coordination across government agencies — including customs, financial intelligence units and prosecutors — to track gold flows and identify illegal activity.

Analysts say weak traceability systems are a central vulnerability.

“There is no real way to trace mining production in Peru,” said EIA’s Urrunaga. 

“Authorities hold fragmented pieces of information, but there is no system — and apparently no political will — to connect them.”

“We are talking about more than $US12 billion ($A17 billion) in illegal gold exports,” she added. 

“How can this be happening in almost total impunity?”

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