https://www.mining-technology.com/features/cracking-lithium-triangle-will-new-legislation-open-gates-peru/
“The discovery is in Peru’s southern region of Puno, near the border with Bolivia, and represents the first discovery of hard-rock lithium deposit in South America. The President [of Peru] is trying to establish regulated development of the resource – with estimations of approximately $500m value per year of exports – to support continued growth of the nation’s economy.”
(...) President Vizcarra has announced his intention to open the area for excavation in the next six months, an ambitious timeframe. Lithium and uranium have not previously been produced in the country, so whilst the production of such prized minerals pose a great opportunity, there is likely to be some changes required. Peru’s energy and mines ministry will have to produce an entirely new legal framework for the aspects of the production of uranium for example.
(...) “For uranium, you can mine and produce uranium under the current Peru general mining law, but what isn’t in place is the legal framework for the transport and export of uranium,” says Plateau CEO and director Alex Holmes. “In any uranium producing country there is a legal framework which is required for international reasons to effectively have secure logistics for the transport and export to conversion facilities.”
While Peru is new to both the lithium and uranium markets however, it has a vast history of mining projects. As such, with the support of the government, the currently legislative insufficiencies do not seem to pose much of a concern for the projects.
(...) By developing a legal framework in the shortest possible time, Peru will be able to begin reaping the benefits of the looming uranium demand growth. It is predicted that uranium demand will rise roughly 40% by 2025, causing a consequential increase in price. The country’s Mining Royalty Law means that revenues from the mine should be distributed to the local authorities where the mine operates, ensuring that its operations benefit the local region of Puno.
“Plateau Energy Metals could have a strong economic impact on the region, drawing international investment into historically one of the poorest regions of Peru,” says Mills. “Mining provides major direct and indirect employment opportunities plus spending on infrastructural improvements including roads, water supply etc.”
(...) The speed at which the law changes are being proposed have therefore caused concern. “The new law could worsen environmental impact of mining in the region, removing the requirement for projects to have formal environmental certificates in place before launch,” says Mills.
Fears may be particularly pronounced due to the production of uranium, as radioactive material extraction is linked to a number of health risks such as lung cancer, which can be caused by protracted radon decay exposure. This will be the first time the metal is produced in Peru, and as previously mentioned regulations around the mineral have yet to be fully developed.