LIMA, June 5 – Peru’s upcoming presidential election this Sunday may be determined by the voting power of small-scale gold miners who have thrived under relaxed regulatory oversight through a government program established in 2016 and initially scheduled to conclude in 2020.
The REINFO initiative permits these miners to function without complete environmental clearances or full operational licenses, and has seen multiple extensions as worldwide gold values climbed and the unofficial mining industry grew in scope, worth, and political clout.
Currently, approximately 500,000 unofficial miners across Peru generate roughly $11 billion in gold shipments for 2025, representing nearly half of the nation’s total output. This mining workforce creates a massive economic and voting constituency based primarily in countryside areas that may determine the outcome of Sunday’s final election round between conservative candidate Keiko Fujimori and leftist contender Roberto Sanchez.
Despite representing opposing political philosophies, both Fujimori and Sanchez are actively seeking support from small mining operations. Current polling indicates a close contest with Fujimori holding a narrow advantage. In 2021, she was defeated by Pedro Castillo by approximately 45,000 votes, representing just 0.25% of the total, while Sanchez draws backing from the same rural territories where Castillo prevailed.
The REINFO program faces expiration on December 31, though neither presidential hopeful seems prepared or capable of eliminating the initiative, which has evolved into a significant force in Peruvian governance.
Advocates describe REINFO as an essential economic support system for millions living in poverty-stricken rural communities. Opponents argue it has established protection for unlawful mining operations and criminal organizations while causing extensive environmental destruction.
A Reuters examination of REINFO registration information and voting records reveals that small miners enrolled in the program have diversified their political investments, while government officials have struggled to remove problematic participants.
The Sanchez campaign gains momentum from rural inland regions where unofficial mining operations are common. Lima and nearby metropolitan areas generally favor Fujimori, who has appealed to major mining corporations that resist the REINFO program, pledging to eliminate illegal mining while updating the unofficial sector and increasing government financing access.
As a lawmaker, Sanchez supported REINFO extension and suggested reallocating unused mining rights to small-scale operators. Mining territories helped advance him to the final round despite trailing in initial polling.
Mining represents almost 12% of Peru’s GDP, making the country a significant worldwide source of copper, gold and silver. However, numerous mining areas still lack fundamental infrastructure and government funding, an issue Sanchez has promised to tackle.
“Thirty years of mining and the mining towns are still the poorest in our country,” Sanchez told Reuters.
Magna Ismael Palomino, coordinator of CONFEMIN, Peru’s largest artisanal mining organization, stated that small-scale miners and related industry workers are supporting Sanchez. Palomino expressed desire for unused mining rights held by major corporations to be transferred to artisanal miners and wants REINFO extended for a minimum of three years.
“We’ve realized that the economic power of big mining has set the governing agenda,” Palomino said. “They dictate how small, artisanal mining should be and want it to disappear.”
By the end of 2025, almost 20 million hectares were designated for mining concessions in Peru, with more than half controlled by medium and large corporations. Only approximately 10% of this territory was actively being explored or mined, based on government and NGO information.
CONFEMIN and artisanal miners have organized demonstrations throughout mining regions supporting Sanchez. Records indicate millions of soles flowing from around 450 REINFO-connected individuals to political organizations, though contributions cross party lines and often relate to regional campaigns or self-funded efforts.
“We reject that. We have never been accustomed to financing any congressman,” Palomino said. “We self-finance our mobilizations… but we have never had that bad habit of giving money in exchange for a project becoming viable.”
Iván Arenas, a mining consultant, noted that much political backing goes unreported officially.
“There’s indirect financing through logistics, mobilization, resources,” Arenas said, referencing demonstrations organized by mining federations supporting Sanchez.
Major mining corporations claim the expanding influence of unofficial mining is distorting both the political framework and the industry.
Peru has approximately $63 billion in mining developments planned. Disputes with unofficial miners have postponed some projects, particularly the $2.6 billion Los Chancas development.
Raúl Jacob, finance vice president at Southern Copper, stated that the magnitude of unofficial mining revenues can “create or enable illegal avenues to obtain permits or certain legislation.”
Julia Torreblanca, head of Peru’s mining chamber, emphasized that political funding should be more open.
“Today, illegal mining is a more powerful economy than drug trafficking,” she said. “We need transparency on candidates and officials financed by this illegal economy.”
A Reuters analysis of more than 24,000 active REINFO permits revealed that a 2025 cleanup removing over 50,000 permit-holders charged with violations left most of the framework unchanged.
A total of 1,005 individuals whose individual permits were canceled now function as legal representatives in companies holding REINFO permits. Additionally, 1,255 companies experienced at least one permit cancellation but maintained operations with remaining permits.
The framework recovers rapidly. Approximately 2,600 legal representative appointments in current REINFO companies occurred in 2025 or 2026. Some individuals possess up to 20 permits spanning multiple companies and personal registrations. International citizens and large corporations also control multiple permits in a framework originally intended for small-scale local miners.
Compañía Minera Agregados Calcáreos holds the most permits with 35 permits despite losing 13 permits in 2025. According to Peru’s SUNAT tax agency, it is controlled by Holcim Peru, a subsidiary of Swiss cement giant Holcim, which did not respond to a request for comment.
