Economic and Social Policies and Gold Mining

In order to establish objectives, goals and lines of mining policies it is convenient to be aware of the mining reality of the country and the technological advances in the rest of the world.

In the auriferous industry there are a number of people that work directly or indirectly in it and they are distributed approximately in: auriferous mining, auriferous exporting of jewelry, and auriferous jewelry in the local market.

Nearly the whole number of the mining production of gold is channeled through the central reserve bank. Peru also imports gold through the system of temporal admission that allows supply of the exporting jewelry shops, which during the ending of the 80’s exported jewelry that had approximately the value of 28 million dollars and imported around 3,000 kilograms of gold. Temporal admission is brought about by lack of gold from the mines, such as in other countries that do not have gold mines such as in the case of Italy. However this system does have some disadvantages, which include: the sale prices are subject to the client, who sends the gold to the country, having to submit to external fabrication plans, technological set back, loss of opportunities of other markets that should open with the country’s gold.

As we have seen when starting on this theme, all the countries that had some indications of gold minerals have increased their production over five to ten times for example in Australia a good number of mines opened and each one of them produced a good number every year.

In the same way, the neighbor countries continue opening new gold mines. A big increase of production is due to private investments, why not gold as well? 

The three vectors of the production are: man and technology, deposits, and capitals

Either auriferous deposit that is located in a communist, capital or any other country requires of investments, and gold is the stuck in the ground is of no use if we are not capable of extracting it.

The politicians and citizens in general should know that mining investments benefit everyone such as the country, the business people and employees. In order to extract gold we need to invest money in roads, water wells, camps, machinery, electric installations, chemical products etc.

First of all investments are applied in work orders that move the metal mechanic industries such as in the local fabrication of mills, tanks, cells, cyclones, water tanks, mining vehicles, tubing etc, and these along with other take up around seventy percent of the total investment amount. The other thirty percent is commonly applied for importing the equipment that are not yet made in the country such as excavating shovels, frontal carriers, compressors, and energy groups mainly. This kind of activity not only provides work and an income for people but since in many cases the areas worked on are located in far out places, development has taken place in these areas as schools and medical centers are provided for the workers and their families. The fruit of all this hard work, which is risky and sacrificial, is then turned into gold, which is then commercialized by the state that then stores it or sells it again. Besides this they also receive dollars when it is exported plus the taxes the auriferous companies pay for, such as utility taxes of the companies and or the dividends the shareholders obtain.

We can affirm that if other countries produce more than this country, it is because they have invested ten to fifty times more than we have.