PERU Experience with Economic Instruments in Mining Sector Ing. MA. María Andrea Vásquez Castillo
Contents <ul><li>Environmental Effects of Mining – Peru </li></ul><ul><li>Policy Instruments of EM in Mining </li></ul><ul...
Environmental Effects of Mining Peru <ul><li>Positive </li></ul><ul><ul><li>Technological effects </li></ul></ul><ul><ul><...
<ul><li>Negative </li></ul><ul><ul><li>Scale effects </li></ul></ul><ul><ul><ul><li>Questions of local sustainability and ...
Map  of Principal Mineral Production Units in Peru Source: MINEM
Policy Instruments of EM in Mining <ul><li>Command and Control Policies </li></ul><ul><li>Technology Transfer, Information...
Taxonomy of PI for EM Source: Economic Comission for Latin America and the Caribbean - ECLAC
Peruvian  Mining Legislation  Mine Law 1981 UT General Mining Law 1992 Investment Promotion Law Mining Sector 1991 Framewo...
Peruvian Intruments of EM in  Mining Mine Law 1981 UT General Mining Law 1992 Investment Promotion Law Mining Sector 1991 ...
Map of Non-Operative Mining Units
Peruvian Instruments of EM in Mining <ul><li>UT General Mining Law - Fine Scale </li></ul><ul><ul><li>Non-compliance charg...
Map of Abandoned Polluted Areas
Experience with EI in other Economies
Experience with Latin American countries
Experience with OECD countries OECD: ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT
Experience with EECCA countries EECCA: EASTERN EUROPE, CAUCASUS AND CENTRAL ASIA
Experience with ASIA countries
Conclusions & Recommendations <ul><li>Peru has very little experience with the use of economic instruments as a tool for e...
Thank you for your attention
References <ul><li>Environmental Effects of FDI in the Mining Sector  http://www.oecd.org/LongAbstract/0,3425,en_2649_3431...
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Economic Instruments Mining Industry Peru

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Economic Instruments in Mining Industry a Study Case of Peru in relation with the World (2008). References included.

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Economic Instruments Mining Industry Peru

  1. 1. PERU Experience with Economic Instruments in Mining Sector Ing. MA. María Andrea Vásquez Castillo
  2. 2. Contents <ul><li>Environmental Effects of Mining – Peru </li></ul><ul><li>Policy Instruments of EM in Mining </li></ul><ul><li>Taxonomy of Policy Instruments </li></ul><ul><li>Peruvian Mining Legislation </li></ul><ul><li>Peruvian Instruments of EM in Mining </li></ul><ul><li>Experiences with EI in other Economies </li></ul><ul><li>Conclusions </li></ul><ul><li>References </li></ul>
  3. 3. Environmental Effects of Mining Peru <ul><li>Positive </li></ul><ul><ul><li>Technological effects </li></ul></ul><ul><ul><ul><li>Significant change and investment in modern technology ( e.g. tailings and air pollution). </li></ul></ul></ul><ul><ul><li>Regulatory effects </li></ul></ul><ul><ul><ul><li>Voluntary application of environmental standards. </li></ul></ul></ul><ul><ul><ul><li>Environmental improvement along with privatization processes. </li></ul></ul></ul>Figure: Antamina
  4. 4. <ul><li>Negative </li></ul><ul><ul><li>Scale effects </li></ul></ul><ul><ul><ul><li>Questions of local sustainability and local development unresolved </li></ul></ul></ul><ul><ul><ul><li>Territorial effects and water rights </li></ul></ul></ul><ul><ul><ul><li>Lack of monitoring and control </li></ul></ul></ul>Environmental Effects of Mining Peru Figure: Yanacocha
  5. 5. Map of Principal Mineral Production Units in Peru Source: MINEM
  6. 6. Policy Instruments of EM in Mining <ul><li>Command and Control Policies </li></ul><ul><li>Technology Transfer, Information, and Education Policies </li></ul><ul><li>Economic and Financial Policies </li></ul><ul><li>Financial Assurances (Hybrid of Economic Instrument) </li></ul>
  7. 7. Taxonomy of PI for EM Source: Economic Comission for Latin America and the Caribbean - ECLAC
  8. 8. Peruvian Mining Legislation Mine Law 1981 UT General Mining Law 1992 Investment Promotion Law Mining Sector 1991 Framework Law Growth of Private Investment - Environment 1991 OSINERG Law 1996 OSINERGMIN Law 2007 UT General Mining Law Environment 1993 Envirn. Regulation Mining Activities 1998 MCL Air Emissions 1996 MCL Liquid Effluent 1996 UT General Mining Law Fines Scale Modified 2000 Mine Closure Law 2003 (Regulation 2005) Abandoned Polluted Areas Law 2004 (Regulation 2005)
  9. 9. Peruvian Intruments of EM in Mining Mine Law 1981 UT General Mining Law 1992 Investment Promotion Law Mining Sector 1991 Framework Law Growth of Private Investment - Environment 1991 OSINERG Law 1996 OSINERGMIN Law 2007 UT General Mining Law Environment 1993 Envirn. Regulation Mining Activities 1998 MCL Air Emissions 1996 MCL Liquid Effluent 1996 UT General Mining Law Fines Scale Modified 2000 Mine Closure Law 2003 (Regulation 2005) Abandoned Polluted Areas Law 2004 (Regulation 2005)
  10. 10. Map of Non-Operative Mining Units
  11. 11. Peruvian Instruments of EM in Mining <ul><li>UT General Mining Law - Fine Scale </li></ul><ul><ul><li>Non-compliance charges of regulations and standards limits </li></ul></ul><ul><li>Mine Closure Law </li></ul><ul><ul><li>Bonds performance </li></ul></ul><ul><ul><li>Fiscal incentives </li></ul></ul><ul><li>Abandoned Polluted Areas Law </li></ul><ul><ul><li>Subsidies and Financing of Env. projects </li></ul></ul>
  12. 12. Map of Abandoned Polluted Areas
  13. 13. Experience with EI in other Economies
  14. 14. Experience with Latin American countries
  15. 15. Experience with OECD countries OECD: ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT
  16. 16. Experience with EECCA countries EECCA: EASTERN EUROPE, CAUCASUS AND CENTRAL ASIA
  17. 17. Experience with ASIA countries
  18. 18. Conclusions & Recommendations <ul><li>Peru has very little experience with the use of economic instruments as a tool for environmental management. </li></ul><ul><li>The audit is only through systems of command and control. </li></ul><ul><li>The instruments are used to promote positive externalities and not to reduce the negatives. </li></ul><ul><li>The government may charge fees for emissions or effluents based on volume and pollutant loads. This would place the companies &quot;cleaner&quot; in a competitive advantage with respect to companies that pollute more. </li></ul><ul><li>The government of Peru can put pressure on the industry to prove that they are complying with environmental limits through independent monitoring and auditing the plants. </li></ul>
  19. 19. Thank you for your attention
  20. 20. References <ul><li>Environmental Effects of FDI in the Mining Sector http://www.oecd.org/LongAbstract/0,3425,en_2649_34313_1833847_1_1_1_1,00.html ; 21.01.08 </li></ul><ul><li>Energy and Mining Ministry of Peru </li></ul><ul><li>DS-059-2005 Statements for Abandoned Polluted Areas </li></ul><ul><li>DS 033-2005-EM Statements for Mining Closures </li></ul><ul><li>DS 016-93-EM Unifying Text of General Mining Law </li></ul><ul><li>Environmental Policy in Mining, Warhurst, A. , Noronha, L. (2000) </li></ul><ul><li>CEPAL – Aplicación de instrumentos económicos en la gestión ambiental en America Latina y el Caribe: desafios y factores condicionantes. http://www.eclac.cl/dmaah/noticias/proyectos/1/7451/LCL1488.pdf ; 20.01.08 </li></ul><ul><li>www.economicinstruments.com </li></ul><ul><li>Economic Instruments for Pollution Control and Natural Resources Management in OECD Countries http://www.oecd.org/LongAbstract/0,3425,en_2649_34295_2405107_1_1_1_37427,00.html ; 20.01.08 </li></ul><ul><li>The use of Economic Instruments in EECCA Countries http://www.oecd.org/dataoecd/37/18/26732337.pdf ; 20.01.08 </li></ul><ul><li>Applying Economic Instruments in Developing Counries http ://www.crdi.ca/uploads/user-S/10536145810ACF2AE.pdf ; 20.01.08 </li></ul><ul><li>Cepal EI Peru http://www.eclac.cl/dmaah/noticias/proyectos/1/7451/peru.pdf </li></ul>

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