Canadian company’s exploration rights in Peru hanging by a thread

Meeting between local and national authorities to discuss the decrees that granted mineral rights to Nuevo Arcoiris. (Image courtesy of Peru’s Ministerial Council).

Peru’s Ministry of Energy and Mines is working on a report aimed at overturning a couple of decrees that granted Nuevo Arcoiris S.A.C, a subsidiary of Canada’s Tesoro Minerals Corp (TSXV: TES), certain mineral exploration rights. 

The report is being produced following a meeting between the Minister of Energy and Mines, Jaime Galvez, the head of the Ministerial Cabinet, Violeta Bermúdez, congresswoman Angelica Palomino and the mayor of Tambogrande, Alfredo Rengifo. 

Since the rights are situated within 50 kilometres of Peru’s national border with Ecuador, a supreme decree granting permission to hold the mining concessions has to be issued

Tambogrande is the mostly agricultural community that hosts the mineral rights in question. It is located in the northwestern department of Piura. 

The rights were granted on December 10, 2020, through Supreme Decrees 027-2020-EM and 028-2020-EM. The documents state that Nuevo Arcoiris is allowed to acquire and hold mineral rights and other related rights, including surface rights, water rights and other rights necessary to conduct exploration and further exploitation activities, on 21 mineral rights. 

Since the rights are situated within 50 kilometres of Peru’s national border with Ecuador, a supreme decree granting permission to hold the mining concessions has to be issued by the President of Peru and the Ministerial Council, under Article 71 of the Constitution.

But according to Palomino, who hails from Piura, people at Tambogrande are against mining operations in the region and Minister Galvez has made note of their demands. 

The report is to be presented on January 20, 2021, before the entire cabinet, in whose hands would be the decision to derogate the decrees or not.

If the decrees are not overturned, then Nuevo Arcoiris can continue with title proceedings for the 21 concessions before the Mining and Metallurgical Geologic Institute.

More News