Illegal Mining in Cajamarca: Businessman Linked to José Jerí Accused

Illegal Mining Allegations Target Associate of Peruvian President

A mining entrepreneur has accused Zhihua Yang, a close associate of Peruvian President José Jerí, of alleged illegal mining activities in the Cajamarca region. The accusation centers on claims that Yang exploited a mining concession without authorization, engaging in informal extraction and causing environmental damage. The allegations were first brought to light by the investigative journalism program, Cuarto Poder.

The complaint originates with Jorge Espinoza Gray, representing Black Stone Mining Company S.A.C. Espinoza alleges that América SAM, a company linked to Zhihua Yang, entered the Ricardo 1 mining concession – located in the Cuadratura hamlet, Hualgayoc province – without permission. According to Espinoza, this unauthorized activity occurred over several months in 2022.

Espinoza maintains that the operations were conducted without the authorization of either the concession holder or the Peruvian state. His testimony details the use of explosives and heavy machinery in the extraction of manganese, a crucial mineral used in steel production. The scale of the alleged operation suggests a deliberate and sustained effort to exploit the resource illegally.

A fiscal investigation was initiated in the same year, prompted by suspicions of illegal mining following a series of operations and technical assessments. While Yang initially benefited from a principle of opportunity – a legal mechanism allowing for reduced penalties in exchange for cooperation – the case has resurfaced due to the political and business connections surrounding him.

Volquetes, Concessions and a History of Interventions

The fiscal investigation relied heavily on reports from the Regional Directorate of Energy and Mines (DREM) of Cajamarca. These reports documented mining activity within the disputed area, confirming the presence of machinery, extraction sites, and stockpiles of material within the Ricardo 1 concession. The INGEMMET geoportal further corroborated these findings, confirming that the coordinates of the alleged illegal activity fell squarely within the boundaries of the concession.

The mining operation was conducted using open-pit methods, a technique involving the direct removal of surface terrain to access the mineral deposit. In this instance, the target mineral was manganese, as explained by the complainant, Espinoza. This method, while efficient, often carries significant environmental risks if not properly regulated and monitored.

Parallel to this investigation, América SAM, founded by Zhihua Yang, was subject to other interventions related to illegal mining. In May and August of 2022, trucks (volquetes) linked to the company were seized while transporting minerals without valid REINFO documentation – a system used to track the origin and destination of mineral resources. Some of these vehicles were subsequently transferred to China Railway N°10, a company currently under investigation for securing lucrative contracts with the Peruvian state.

The transfer of these assets raises questions about potential connections between the alleged illegal mining activities and state-level contracts, adding another layer of complexity to the investigation. Authorities are examining whether the illegally sourced minerals played any role in fulfilling the terms of these contracts.

The case highlights a broader concern regarding the prevalence of illegal mining in the Cajamarca region and the challenges faced by authorities in combating it. The region is rich in mineral resources, making it a target for both legal and illegal mining operations. The involvement of politically connected individuals, as alleged in this case, further complicates efforts to enforce regulations and protect the environment.

The investigation is ongoing, and authorities have not yet announced any formal charges against Zhihua Yang or América SAM. However, the evidence presented by Espinoza Gray and the findings of the fiscal investigation suggest a serious breach of mining regulations and potential environmental damage. The case is likely to attract further scrutiny as it progresses, particularly given the high-profile connections involved.

The allegations against Yang and América SAM come at a sensitive time for the Peruvian government, which has pledged to crack down on illegal mining and promote sustainable resource management. The outcome of this investigation could have significant implications for the government’s credibility and its ability to address the challenges posed by the informal mining sector.