“The story of the mining company Volcan: it tops the ranking of environmental offenders, the State forgives its fines, and it violates the rules again”, 5 February 2025

In the fourth report of the investigative series “The business of environmental impunity,” Convoca.pe was able to verify that the Volcan Group—now owned by the Argentine group Integra Capital—failed to comply with 20 corrective measures imposed by the Agency for Environmental Assessment and Enforcement (OEFA) in response to environmental violations. The environmental damage was identified during the period in which the so‑called Environmental Deregulation Package Law was in force, between 2014 and 2017. The effects of this regulation have allowed 57 mining and oil companies to be forgiven environmental fines totaling up to 70,689,000 soles (US$19,105,135), of which more than 5,300,000 soles (US$1,432,432) were condoned for companies within the Volcan Group.

Despite the multi‑million‑sol discounts on economic sanctions guaranteed by the Environmental Deregulation Package (2014–2017), mining and hydrocarbon companies failed to comply with the corrective measures imposed by the State to remedy the environmental impact of their actions. The State stopped collecting more than 70 million soles—equivalent to over 19 million US dollars—in exchange for benefiting companies that polluted and turned a deaf ear to the corrective measures ordered to address the environmental harm caused by extractive operations.

This regulation was approved in July 2014 and remained in force until May 2017. During that period, it limited the authority of the Agency for Environmental Assessment and Enforcement (OEFA) to impose sanctions on companies for violations of environmental regulations. Large mining and hydrocarbon companies benefited from this restriction.

The Environmental Deregulation Package also stipulated that, in cases where the supervisory authority determined noncompliance with ordered corrective measures, it could only impose fines that did not exceed 50% of the maximum calculated fine.

The amount that OEFA was unable to collect due to these discounts applied in the 107 sanction resolutions identified by Convoca.pe is equivalent to 30% of OEFA’s institutional opening budget for 2024.

Various national and foreign corporate groups and business families appear among the owners of the mining and oil companies that failed to comply with corrective measures. These include companies belonging to the Volcan Group and its subsidiaries.

Since May 2024, Volcan and its auxiliary companies have been owned by the Argentine capital group Integra Capital, through its subsidiary Transitions Metals AG, which acquired 100% of the shares from the Swiss group Glencore, the previous owner of the Peruvian mining company.

Volcan and five subsidiary companies operating in Pasco, Junín, and Lima were found responsible for failing to comply with 20 of the 26 corrective measures ordered by OEFA in first‑instance resolutions issued between 2015 and 2018.

Failure to comply with the 20 corrective measures should have resulted in a fine of 10,384,132 soles. However, with the application of the 50% discount under Law 30230, as well as an additional 10% reduction applied under the confiscatory fine concept, the imposed fine was set at 4,986,738 soles.

The Subdirectorate of Enforcement identified four infringing behaviors and ordered the same number of corrective measures. One of these violations was Volcan’s failure to carry out the terracing of the slopes of three mine tailings deposits. It also failed to install horizontal drains to capture runoff water, thereby breaching its Environmental Management Instrument (IGA).

Convoca.pe sought the version of Volcan Mining Company and its owner, the Argentine group Integra Capital, regarding the reasons for failing to comply with the corrective measures. The outlet contacted both entities through their communications representatives. In the case of the parent company, they stated that only Volcan could issue responses. However, the local company replied that “on this occasion, the company will not provide statements.”

According to environmental lawyer and expert on environmental issues and prior consultation, Ana Leyva, if companies fail to comply with OEFA orders to remediate, rehabilitate, or repair affected areas, this mechanism of corrective measures is not functioning properly and needs to be corrected.