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Global Gold Production Touching Ground pp 135–149Cite as

Palgrave Macmillan

Peru: Curtailing Smuggling, Regionalizing Trade

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Abstract

Relatively small and scarcely populated, Peru has been referred to as a “gold giant.” It is the largest gold producer in Latin America and seventh largest in the world. Yet, at least 20% of Peruvian gold is extracted by unregulated artisanal and small-scale gold mining (ASGM) operations. For a long time, this gold was transported overseas on commercial flights, taking advantage of the lax security controls at Lima’s international airport. In 2012, a comprehensive legal framework was enacted to regulate ASGM, which included improved trade management and closer airport surveillance. Combined with mechanisms to trace illicit financial flows associated with the industry, these policy measures led to the seizure of tons of gold and the dismantling of shell companies. In response, smugglers began to move the mineral by land into neighboring countries within the Andean region in transit to its final destination in foreign refineries. This chapter suggests that this regionalization of the Peruvian ASGM trade reveals the flexibility of the gold production system, and particularly ASGM, in reacting to pressures emanating from the Peruvian state to eradicate illegal mining. It also highlights the importance of improving regional coordination of border management and at prosecuting illicit financial flows.

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Authors and Affiliations

  1. University of Deusto, Bilbao, Spain

    Dolores Cortes-McPherson

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  1. Dolores Cortes-McPherson
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Correspondence to Dolores Cortes-McPherson .

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  1. IOB, University of Antwerp, Antwerp, Belgium

    Boris Verbrugge

  2. IOB, University of Antwerp, Antwerp, Belgium

    Sara Geenen

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Cortes-McPherson, D. (2020). Peru: Curtailing Smuggling, Regionalizing Trade. In: Verbrugge, B., Geenen, S. (eds) Global Gold Production Touching Ground. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-38486-9_7

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  • DOI: https://doi.org/10.1007/978-3-030-38486-9_7

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  • Publisher Name: Palgrave Macmillan, Cham

  • Print ISBN: 978-3-030-38485-2

  • Online ISBN: 978-3-030-38486-9

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