Large-scale and small-scale mining in Peru: Exploring the interface

Álvaro Cano and Nadja C. Kunz

Resources Policy, 2022, vol. 76, issue C

Abstract: The global demand for gold and copper has intensified tensions between formal mining (mostly Large-Scale) and informal mining (mostly Artisanal and Small-Scale) in key mining corridors of Peru. The formalization of ASM producers through an Exploitation Contract (EC) was devised as the main policy instrument towards resolving such tensions between these scales and types of mining. However, the EC quickly became the main policy bottleneck due to the LSM formal title holder's reluctance to sign these ECs in favor of ASM activities. This study applies a Qualitative Comparative Analysis (QCA) methodology to investigate the combinations of conditions that tend to produce an EC by studying 20 cases wherein LSM and ASM overlap. The findings indicate that there are two necessary conditions to arrive at an EC: (1) a strong willingness to formalize a mining business on behalf of ASM producers and (2) a strong business case for LSM companies to support ASM formalization. An analysis of sufficient conditions concludes that there is no single approach for arriving at an EC, which highlights the importance of tailoring formalization strategies to the local context. Nevertheless, the participation of a third actor, and a corporate culture appropriate to engage ASM producers, were present in some cases wherein an EC was reached.

Keywords: ASM-LSM interface; ASM - LSM overlap; ASM formalization; Qualitative comparative analysis (QCA) (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:76:y:2022:i:c:s0301420721005377

DOI: 10.1016/j.resourpol.2021.102530

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