Mining has a long tradition in Peru, and today it is a large contributor to the country’s economy with a share of over 50% of Peru’s overall exports¹. While large-scale industrial mining is predominantly focusing on copper extraction, artisanal and small-scale mining (ASM) is mainly focusing on gold production. Official estimates from 2016 state that of 150,000 people employed in ASM in Peru in total, 70,000 people are working in ASM for gold (ASGM). Approximately 890,000 ounces of gold was mined by ASM in 2016². Given the growth of the sector since then – as described below and visualized by the ASMSpotter– these numbers will have increased significantly.
A large part of ASGM operations is informal and/or illegal across the country³. The Peruvian government however is working to formalize the ASM sector. As a result, more than 51,000 miners and 8,000 miner associations have begun the process of formalization as of April 2020.

The department of Madre de Dios – the focus area of this ASMSpotter demo – in the southeast of Peru and in the Amazonas has become a centre of informal and illegal alluvial ASGM. Deforestation often goes hand in hand with ASGM operations in this area. The expansion of ASGM was strongly driven by the construction of the interoceanic highway construction (2006 – 2012) and when gold prices increased. However, even with decreasing prices between 2012 – 2017, ASGM expanded by over 50%.⁴

As can be seen in the demo, ASGM is now also taking place in protected areas (green). To visualise such impacts, the application of the ASMSpotter on this area of Madre de Dios is overlaid with location data of natural reserves, restricted zones, mining cadaster etc. This shows that ASGM can pose a significant threat to biodiversity and protected areas through land clearing that leads to habitat loss and fragmentation; pollution from harmful chemicals, such as mercury and cyanide; and changes in hydrological regimes and sedimentation, among other impacts.⁵

Alone in the two years period covered by the ASMSpotter 2019 – 2021, the total land area affected by ASGM grew by the factor 1.5. While drivers of uncontrolled ASGM in Madre de Dios in the past were high gold prices, this cannot be seen as the only factor driving the expansion. The Covid-19 pandemic has been a key factor in this over the past two years, and it has been reported that this may have occurred through two main drivers: First, unscrupulous criminal groups and business opportunists may have taken advantage of the much more limited monitoring, enforcement and presence by authorities during lockdowns. And second, as many urban worker lost their jobs and income during this time, they moved back to rural areas and took up informal ASGM as an activity that provides immediate emergency income and cash and does not require applications or qualifications. In this context, ASGM provided the last safety net for many of the 72% of Peru’s population working in the informal economy.⁶

Finally, another factor in the expansion of ASGM beyond Madre de Dios in recent years has been the crack down and enforcement by the police on operations within Madre de Dios, which has caused miners to move into other areas to continue work, including regions of La Libertad, Arequipa and near Cusco, where deforestation impacts are now also on the rise.⁷