Mining Concessions Have Reached New Record
Mining concessions have reached a new record: June 2011 totaling over 24 million hectares, equivalent to 18.91% of the country. This means that in 6 months, mining concessions have grown by nearly 3 million hectares, an unprecedented event. Apparently, the current government has sought to ensure access of investors to make concessions before they complete the change of authorities.
TLC: Who wins, who loses. The investment chapter of the Peru-US FTA would reward a company that failed in all its environmental and social obligations in Peru. The company Doe Run Peru and the Reno Group had decided to take the Peruvian state to international arbitration under the FTA between Peru and the United States, seeking a compensation of no less than U.S. $ 800 million. This process has great progress by the company, who have the backing of 8 members of Congress in the U.S., and have a very definite strategy, said José De Chive, Coordinator of the Observatory CMO, and remarks that the state runs the risk of indemnify a company that has been contaminated for years, “the state has reacted very slowly and without any strategy, we find a company that is on the defensive against a weak state.”
And this issue Puno events in recent weeks mark a turning point in the evolution of conflicts related to mining in Peru. There are several factors to consider: never before has a conflict had forced the executive to produce many rules: three decrees and many other supreme resolutions, which repealed the Santa Ana project grants, suspend all grants in Puno ordered the cleaning of the basin Ramos River. Therefore, the regulations issued open a Pandora’s Box of questions from businesses and even possible arbitration proceedings under the investment chapters of FTAs.
With this scenario will not be easy for the new government to reverse this situation and there are no miracle cures. It is gradually regain confidence through a set of corrective policies that attack the causes of the sharp conflict, the stagnation of production and environmental problems in the mining sector. It is expected that the new authorities and various interest groups linked to the industry (companies, social organizations, etc.) can help design a new scenario that can build governance arrangements for extractive industries in the country.
Therefore, inheritance of the APRA government on mining is negative because of where you look. The increased value of exports and higher profits for companies in recent years due to high metal prices and in no way to better production performance or public policies implemented.
Instead, the postponement of the law of prior consultation, the decrees of the “dog in the manger”, to replace the income tax on the “miner’s mite” and lack of environmental enforcement in the sector have been some bad decisions that ended up deepening mistrust and discomfort of entire populations. The lack of political will to address some fundamental issues leave a crossroads for the new government must also address at least two international arbitration proceedings under the FTA.
The Observatory of Mining Conflicts, makes monitoring of five regions, according to the maps of concessions Apurimac is the region that has more land concessions: 56.52%, followed by Cajamarca: 48.47%; Piura: 27.48%; Junín: 24.68% , and Cusco: 18.12%.
The start of the new national government will mark a stage that a clear impact on the management of mining conflicts. The test cases analyzed from the observatory show what is happening in the country, marking the main trends at the regional level and raise the pending social agenda on the development of mining.
Cases by region:
In Piura has a climate conducive to the final decisions to protect important ecosystems such as deserts and water sources. However, the threats do not stop: it has begun a media campaign that seeks to reclaim the mining project and keep coming Tambogrande information that confirms the interest of Chinese companies questioned by the Rio Blanco project. Then there are the threats to the expansion of informal mining in districts like his, toad and Las Lomas.
Apurimac is emerging as a new center for mining investment in Peru. The growth of mining megaprojects formal and artisanal mining has deepened the dispute over access to resources in the catchment areas of projects. Among the topics of conflict also puts the demand for employment and employment expectations of populations.
In Cusco, the conflict over Makes Segues II, still cannot find a definitive solution. The final decision rests with the Constitutional Court and this case marks an important milestone in a kind of conflict will become increasingly recurring disputes over water resources. This region also recorded a number of new mining projects, in addition to the project Antapaccay, the Anglo-Swiss Xstrata.
In Junín, the Peruvian government runs the risk of Doe Run compensation of no less than $ 800 million. TLC: Who wins, who loses, the investment chapter of the Peru-US FTA would reward a company that failed in all its environmental and social obligacxiones.
In Cajamarca, public complaints by mining pollution episodes are common and therefore the population makes strenuous efforts to protect sources of water, this time with the support of regional authorities. The official logic is still imposing projects without social participation in decision-making. A clear example is the company Tantahuatay Coimolache Mining (Group and Southern Copper Buenaventura).