Home » NEWS » Colombia and Peru want to centralize gold purchases to combat illegal extraction — MercoPress

Colombia and Peru want to centralize gold purchases to combat illegal extraction — MercoPress

Colombia and Peru want to centralize gold purchases to fight unlawful extraction

Friday, March 5th 2021 – 08:40 UTC

A gram of gold is often less difficult for armed teams to transport than a gram of cocaine, Colombia’s mines and vitality minister, Diego Mesa stated

Colombia and Peru are studying the possibility of centralizing gold purchases, in an work to overcome illegal and casual extraction. Colombian President Ivan Duque said his government is contemplating the go to stymie the part unlawful mining performs in fueling a a long time-extensive internal conflict.

“We have deemed reopening that dialogue, also with the central financial institution, of returning to centralize… the shopping for of gold,” Duque said throughout the ELAMI regional mining convention. Colombia’s central lender was the sole purchaser of gold output in the country until eventually 1991, when the industry was opened.

A regional effort is needed to struggle unlawful mining, Duque explained, highlighting deforestation and the use of mercury related with illicit extraction. His federal government will this thirty day period inquire Congress to improve penalties for environmental crimes and illegal mining, Duque additional.

A gram of gold is usually simpler for armed groups to transportation than a gram of cocaine, Colombia’s mines and electrical power minister, Diego Mesa, said at the event. Very last week, Colombia released a new army device to goal illicit mining. Gold generation in the region rose 58% calendar year-on-yr in the third quarter of 2020 to 14.2 tons.

In the meantime, casual miners in Peru are asking the government to employ crystal clear rules for commercializing gold, that country’s mining minister, Jaime Galvez, mentioned.

“We think it’s a thing we should really just take up in some way, however it wouldn’t be the state directly,” he reported.

The point out managing the commercialization approach of gold from scaled-down mining operations is the only way to have traceability. Without having traceability casual mining will carry on to be predominant.”

Gross sales of U.S. gold bullion cash rose 258% in 2020, the U.S. Mint reported very last thirty day period, with heavy demand continuing this year, squeezing provides afflicted by coronavirus lockdowns. Peru gold generation was down 32% in 2020 in comparison with 2019, to 87.3 million fantastic grams.

Generation shortfalls ended up partly compensated by greater charges, mentioned Argentina’s mining minister, Alberto Hensel. “We could say the fall in output volumes was 40%, but the price in exports, simply because of the raise in value, was a fall of 20%,” Hensel explained.

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