Gold Mining Legislation,
Potential and Promotion

It would be appropriate to deal with the problem of the auriferous mining in a country such as Peru, and looking into the professional aspect as well as the political and business aspect about the legal devices that through three decreed laws, one legislative decree, five supreme decrees, one ministerial resolution and two directorial resolutions, have become announced and emitted in terms about auriferous mining legislation in past years taking into account the promulgation of the Law of Auriferous Promotion that was procured in May of 1978.

In all cases, the legislative measures and supreme decrees that throughout the years have been sent out were in one way or another presented like a promotional and incentives regime for auriferous mining, meaning this combination of legal dispositions that were emitted year by year ever since the auriferous law came about.

To talk about the auriferous mining potential that the country has is to try to show the great magnitude of our auriferous mineral reserves that can be commercialized to finally rough out some types of promotions that can set off a significant part of the available potential.

Legislation concerning Auriferous Mining

Legal Norm: Decree Law No. 22178
Date: 09 May 1978
Matter: Law of Auriferous Promotion

Legal Norm: Decree Law No. 18882
Date: 15 June 1971
Matter: Disposes that only the state will be able to commercialize precious metals in natural form or semi elaborated.

Legal Norm: D.S. No. 003-789-EM/DGM
Date: 23 January 1979
Matter: Regulation of Decree Law No. 22178.

Legal Norm: Decree Law No. 22916
Date: 4 March 1980
Matter: It is established that 3 percent of the value of buying of gold that the Mining Bank acquires from the auriferous products from the department of Madre de Dios, constitutes as a resource from the organism of development in such department.

Legal Norm: R.D. No. 021-83-EM/DGM
Date: 06 July 1983
Matter: The district of Pataz is qualified as an area of difficult access, which is a department of La Libertad, for the effects of the application of the benefits established in article 19 of the Decree Law 22178, Law of Auriferous Promotion.

Legal Norm: Legislative Decree No. 296
Date: 26 July 1984
Matter: Incentive norms are broadened and protection to the small auriferous mine.

Legal Norm: D.S. No 014-85-EM/DGM
Date: 15 May 1985
Matter: Articles 25 and 36 are substituted and article 37 is abolished and the second paragraph of the article 45 of the Supreme Decree No. 003-79-EM/DGM of 23 January 1979, Regulation of the Law of Auriferous Promotion.

Legal Norm: R.M. No 010-86-EM/DGM
Date: 15 January 1986
Matter: Small mining producers that are adequately qualified by the General Mining Direction will pay 25 percent of the price of publication established by the official Newspaper.

Legal Norm: D.S. No. 269-86-EF
Date: 7 August 1986
Matter: Include in the appendix 1 of the only text of the Legislative Decree No. 190, approved by Supreme Decree No. 439-84-EFC, of 5 of Octubre1984, the sales of gold that make the mining producers carry out to the Mining Bank of Peru.

Legal Norm: R.D. No. 070-86-EM/DGM
Date: 11 September 1986
Matter: 1st directive about process of importing of goods necessary for the development of the auriferous mining, carbon and metallic operations which sole purpose is to simplify and speed up the processes mentioned.

Legal Norm: D.S. No. 078-87-EF
Date: 3 April 1987
Matter: Specify that the commercializing producers and public are able to sell natural or semi elaborated gold to the Central Reserve Bank when this requires of it.

Legal Norm: D.S. No. 062-88-EF
Date: 11 April 1988
Matter: Establishes a program to reactivate the small and medium size mine by a financial reordering.

Political Constitution of the Natural Resources of Peru
The following year after the expedition of the Decree Law of Auriferous Promotion, on the 12th of July of 1979 the new Political Constitution of Peru is promulgated and this starts taking place on the 28 of July of 1980.

Articles 118, 119,120, 121,122, and 123 are specifically referred in the Constitution of the Natural Resources, and there are others that in an indirect way are also related.

From the articles of the Constitution that talk about the natural resources that are not renewable, which is the case of mining, it is necessary to mention article 122 that says that the state fomented and stimulated mining activity and that it protected the small and medium sized mining. It promoted large scale mining and acted as a manager and in the rest of the ways the law established. Mining concession enforced its work and provided the owner a real right that were subject to the conditions of the law. 

Political Constitution of the Natural Resources of Peru
The following year after the expedition of the Decree Law of Auriferous Promotion, on the 12th of July of 1979 the new Political Constitution of Peru is promulgated and this starts taking place on the 28 of July of 1980.

Articles 118, 119,120, 121,122, and 123 are specifically referred in the Constitution of the Natural Resources, and there are others that in an indirect way are also related.

From the articles of the Constitution that talk about the natural resources that are not renewable, which is the case of mining, it is necessary to mention article 122 that says that the state fomented and stimulated mining activity and that it protected the small and medium sized mining. It promoted large scale mining and acted as a manager and in the rest of the ways the law established. Mining concession enforced its work and provided the owner a real right that were subject to the conditions of the law.