proEXPLO 2026: Mineral Exploration Could Be Affected by Bill Seeking to Reduce Concession Term to 15 Years

Lima, March 19, 2026.- The recent approval, by the Congressional Energy and Mines Committee, of a bill proposing to reduce the expiration period of inactive mining concessions from 30 to 15 years does not align with the actual timelines required for the development of a mining project and creates a gap between the legal framework and the technical dynamics of exploration and bringing projects into operation, said César Riofrío, senior geologist and member of the organizing committee of proEXPLO 2026.

Sector Concerns

“The average time between the discovery of a deposit and its entry into production is 28 years worldwide. In Peru, due to bureaucratic burdens, it can extend to between 40 and 55 years,” the geologist told the Peruvian Institute of Mining Engineers (IIMP). In this context, he warns that requiring productive activity within a 15-year period does not reflect the current technical complexity of mining projects.

Riofrío notes that new discoveries are often covered, are located at greater depths, may have lower grades, and/or contain elements such as arsenic that require more complex and costly metallurgical processes.

“What is currently labeled as ‘idle’ may in fact be a project under intensive exploration or a strategic reserve whose development depends on technical or market factors,” he told the IIMP.

From an operational standpoint, he noted that exploration begins with large concession blocks to develop generative programs, including regional geological mapping, systematic sampling of sediments, soils, and rocks, airborne geophysics, and satellite image interpretation. This preliminary stage may take between four and five years, not including the time required for permits and agreements with communities.

“Reducing timelines would force shorter evaluation periods and could lead to the abandonment of areas with potential that have not yet reached technical maturity,” warned the expert, who has 35 years of experience in mineral exploration in the United States, Chile, Bolivia, Brazil, Ecuador, and Peru.

Impact on Formalization

The geologist also warned about the impact on the formality of the system. If a concession expires after 15 years, it becomes available and may be claimed by third parties, including through auction processes. In his view, without a parallel reform to simplify administrative procedures, the measure could increase the number of concessions that expire for administrative reasons rather than geological ones.

Regarding investment, Riofrío stated that any effort to stimulate the sector must be accompanied by structural changes. “From discovery to production, between 200 and 400 permits may be required, involving up to 19 public entities.  Without a one-stop shop and predictable timelines, reducing concession duration will be technically unfeasible for formal operators,” he said.

Finally, Riofrío emphasized that the challenge is not only to release areas, but to ensure that regulatory conditions allow for proper evaluation of the territory’s potential. Otherwise, he warned, the country could lose discovery opportunities in a global context of high demand for strategic minerals.