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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has a conflict had forced the executive to produce many rules: three decrees and many other supreme resolutions, which repealed the Santa Ana project grants, suspend all grants in Puno ordered the cleaning of the basin Ramos River.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).

Experimental Plant is waiting for the electrolyze acquired the Swiss company Accad Gen, which will be completed with the necessary equipment to deal with the industrial stage. So did the president know the authorities who toured the plant on the anniversary of the town?

The dream of making large-scale hydrogen fuel is almost a reality for heads of Experimental Hydrogen Plant in Pico Truncate; a municipal enterprise was supported by the provincial government several years ago.

Days ago, after the anniversary events, the deputy governor of the province, next to the mayor Oswald Maim and Social Development Minister, Ana Maria Urricelqui, visited the plant where they were received by its director, Juan Carlos Blockish.

With national contributions are completing the work necessary to expand production at industrial scale. On this, the president of Argentina Hydrogen Association and vice president of the World Association detailed the stage where the plant is now and the potential for the region will have the scale of production gain.

Today, after completing the establishment of a 200m2 building (by the company Servicing SA Saco Canyon), only remaining details for the coming of the electrolyze acquired the Swiss company Accad Gen, which will conclude with the plant equipment for industrial scale production.

This way, you will be able to supply gradually a large number of local vehicles by the mix of gases as well as some additional benefits such as environmental education services, food production in greenhouses, selling industrial and medical oxygen of high purity as well as 3000 liters of pure water per day.

One of the main issues highlighted by Blockish results in that, except for the electrolyze imported from Switzerland, all components of the hydrogen plant were supplied by industry. “This is one of the major challenges we set: try the operation of the plant possible mostly equipment incorporating our industry.

Even in the electrolyze is a module that has developed here in Argentina, the Institute Technologic de Buenos Aires. This is the MAEL, the module Argentine clean energy. This, plus the oxygen compressor also done here at home, we can say that all the components that make up the industrial plant are Argentina, “he said.

Thus, it is expected in the coming months to inaugurate the plant, in its kind, will be the first in Latin America.

The precious metal miner Fresnel reported a record production of silver and gold in the second quarter, driven by its mines Suction and Soledad-Dipoles in Mexico at a time when the price of the yellow metal traded at record highs.

The total production of silver, including that provided by the agreement Silver stream, rose 7.2 percent, to 11.4 million ounces, while gold production jumped 20.6 percent to, 110 000 070 ounces. Excluding Silver stream, the Mexican mining produced 10.5 million ounces of silver.

Numbs Corp analysts expect production to be stable in the first quarter with 9.1 million ounces of silver, excluding Silver stream, and 96 000 ounces of gold.

Shares in mining in London rose 2.4 percent at 13:11 GMT.

“In the second quarter we continued to focus on operational discipline and cost reduction initiatives, while our exploration program remained on track with encouraging results in several projects,” said the chief executive of mining, Jaime Lamely.

Gold prices rose to a record on Thursday, extending gains for the ninth consecutive day, after Moody’s warned that the U.S. could lose the “AAA” rating for its debt, and the possibility of more monetary stimulus Reserve Federal and deepening of the debt crisis in Europe.

“One thing that is driving the price of gold and silver investment demand is the macroeconomic conditions and see the world in such a way that promotes investment in gold and silver,” said Arturo Espanola, director of investor relations Fresnel in a conference call.

The price of silver rose for the third consecutive day. Silver is often more volatile than gold and fell so sharply in May that is a little away from its historic high.

Fresnel in 2011 expects to produce about 44 million ounces of silver, including Silver stream, and 400 thousand ounces of gold.

The miner expects a rapid increase in production at its newly opened Suction mine in central Mexico, along with other expansion plans, may help overcome BHP Billiton as the world’s largest producer of silver.

BHP Billiton is currently producing more silver as a byproduct of other metals. BHP produced 45.4 million oz of silver in the year to June 2010.

Two miners were rescued alive on Sunday after being trapped for 180 hours in a coal mine collapsed in the autonomous region of Guangxi Zhan, sources with the rescue.

The workers were among the 18 that were caught last July 2 when part of the tunnel collapsed after several days of heavy rain.

Rescuers reported that at 03:00 hours this morning heard faint sounds made ​​by the workers, which they accomplished by placing them in a ventilation tunnel 320 meters underground.

More than 110 rescuers tried this afternoon to clear the tunnel, which was filled with mud after the collapse.

A total of 71 miners were working in the pit when the accident occurred, 49 of who escaped. So far rescuers have recovered four bodies.

Revenues from mining royalties in the department of Cochabamba in May exceeded the total raised in the 2010 management and to continue the registration of cooperatives and private companies, it is estimated that revenues could reach 8.5 million by year-end Bolivians.

According to the departmental secretary seminarian, Jose Fernandez, last year mining royalty revenue amounted to 4.3 million, and this year in the first five months (January to May) is perceived around 4.5 million.

Fernandez said that 48 cooperatives operating in Cochabamba and 52 mining companies, of which 60 percent were already registered and paid the royalties, established mining laws that regulate the activity of the area.

DEPARTMENTAL LAW:

According to Fernandez, the Legislative Assembly at the initiative of governor Departmental Edmund Novella and the bed of the Movement toward Socialism (MAS) will soon approve the Department of Mining Law, which will help to strengthen the mining industry and increase income from this.

He said that the law and the agreement with the National Registry of Mineral Marketing (Senarecom) will enable the registration of cooperatives and mining companies that does not exist, economic losses caused by mining royalties.

MINING CENTERS:

The agricultural vocation of natural Cochabamba now joins mining production, as several municipalities are true emporium of mineral resources.

In the Andean region of Cochabamba, which includes Argue, Capitola, Teacart Aye-aye and there are mines of zinc, silver, copper, lead, tin, silver, gold, limestone, marble, tungsten, sodality, gypsum and gemstones.

Deep River Cristal Mayo, under the jurisdiction of the Tropic of Cochabamba, a Brazilian company operates gemstones; the price per kilogram is $ 700. In the southern cone of Cochabamba province Masque, exploit zinc, silver, lead, even gold, the mine is in seats.

Mineral IRL said in a statement issued to the Lima Stock Exchange, announced the update of exploration results in Escondido Project in Patagonia, Argentina. Assays have been received in recent wells drilling Phase 2 (December 2010) and the initial 20 wells in Phase 3 exploration drilling referring to the executed in April and May 2011.

Highlights:

They have discovered high grade intersections, including the well E-D10-026 with 0.70 meters with an average of 136 g / t gold and 157 g / t silver and well ED11-037 with 4.20 meters with an average of 1.6 g / t gold and 663 g / t silver including 0.55 meters with 4.2 g / t gold and 1.250 g / t silver.
Intersections on new potential high volume include the well E-D11-052 with 16.20 meters averaging 2.05 g / t gold and 7.4 g / t silver (including 1.95 meters averaging 10.0 g / t gold and 14.4 g / t silver), and the well E-D11-053 with 19.65 meters averaging 2.43 g / t gold and 10.4 g / t silver (including 2.55 meters with 9.55 g / t gold and 51.6 g / t silver).
The exploration area of ​​interest now extends over 1.7 km with evidence of predominantly gold and silver to the northwest predominantly to the southeast.

“The discovery of gold mineralization and high grade silver in the Escondido area opens up new perspectives for this project,” said Courtney Chamberlain, CEO of Mineral IRL. “While we have more work to do, the importance of these new structures is showing high-grade exploration potential of high grade gold and silver. We have also been continually receiving incentives in large volumes in low grade mineable that were previously reported. “

 

Metminco Australian mining company will begin a process of drilling in late 2012 to update the resource estimates in the proposed copper and molybdenum the Galatians, located in Moquegua.

The company expects to complete the update of the estimated resources of the site late next year and only then commissioned a study prefactbilidad project is estimated to require an investment of over $ 2 billion.

Findings

In recent boreholes Metminco said it has made ​​significant BOUT findings, demonstrating that the project has the potential of the Galatians an important reservoir host of red mineral.

The current drill program is designed to provide detailed information and therefore the Australian company expects the project to be world class, similar to mine Escondido in Chile.

So far the project is projected to the Galatians has 926 million tons of ore at 0.39% copper.

Near this site are encuetan three large mines: Cerro Verde, Rennet and Toquepala.

In late June the company was affected by the initial impact was Lolita Humana’s election as president of Peru. So much so that the company reported that its shares fell about 14%, but continue with its program Metminco in the Galatians.

 

The nationalization of copper in 1971 has been one of the most important decisions in the economic and political history of Chile. It occurred in a context of conflict between the interests of foreign mining companies and the country. While Chile sought to use copper mining as its “cornerstone for development”, the domestic industry lost weight on the world market and, worse, the contribution of large-scale mining to the national economy was weak, dominated by perception enclaves that were not able to drive the development of paisley nationalization was a radical response, under a social and political context peculiar to the country’s history, that sought to increase state control in an industry considered strategic. Today it is possible to note that in significant respects, the objectives of nationalization were reasonably achieved. Chilean copper production reversed its downward trend and began a gradual increase from 11% of total world production in 1971 to 17.7% in 1990, which began producing the new era of large-scale private mining.

The other aspect of great importance that the nationalization was allowed the development of national capacities related to mining, mainly through human capital formation, accelerating national technological learning has been sustained not only the production in state hands, but also the great expansion of private mining in Chile since the 90′s. La Corporation del Cobra de Chile (Codec), formed in 1976 to concentrate management sites in a single nationalized company has been a vector of technological development in the country, topping the record of industrial patents. Also through sales management Codec managed to learn and efficiently control the marketing of copper and its byproducts, from a few years to play a leadership role in the global market.

On the other hand, the institutional framework of Codec reported very few changes since its creation, which, along with a diminishing role of the owner, was generating a sub-optimal compromise with their financing needs and insufficient framework for action to address major issues of development, especially in recent years, the world copper market has undergone structural changes which require a faster growth.

That’s why the corporate governance reforms adopted in 2009 are of such historical importance, as they offer a new institutional framework that can help the company overcome its current challenges and push it towards a better future.

Between 1976 and 2010, Codec contributed surplus of over U.S. $ 62 billion, about 12% of the country’s fiscal revenue, which has been a fundamental basis for social action of the state. The big challenge is to empower the company to become the flagship of the internationalization of Chilean mining, maximizing production capacity and efficiency, thus multiplying the contributions he has been able to generate for Chile.

Workers at the giant Codec, the world’s largest producer of copper, on Monday a 24-hour strike to claim against a plan to restructure the mining industry.

The last time Codec operators made a total paralysis was 18 years ago.

Here is a list of major mining strikes in Chile in the last two decades:

- August 1991 – More than 9,500 workers at Codec El Tenanted division remain on strike for nearly a month, halting production of the largest underground copper mine in the world at a cost of $ 450,000 per day.

The same month, workers at Chuquicamata, then the world’s largest copper mine open pit paralyzed chores for two weeks.

- May 1993 – Workers at Codec strike that lasted less than an hour. Had no effect on production.

- February 1995 – Some 1,200 workers at state refiner Venetians copper stop their work for a wage dispute that forced the government to buy copper cathode in the spot market to secure their supplies.

- May 1996 – Chuquicamata miners made an eight-day strike ended May 12.

- April 2003 – Workers in the Candelabra copper mine agreed to end a strike that lasted 16 days after accepting an offer from the company on wages and benefits.

December 2003 – Copper prices up due to a strike of 11 days in Codec’s Adina division by wage demands and bonus payments linked to production.

- August / September 2006 – Escondido, currently the largest copper mine in the world is affected by a 25-day strike by 2052 union workers forced to declare force majeure. The paralysis damaged production and pushed up copper prices in the international market.

- June / July 2007 – Codec signed an agreement to give bonuses and benefits to 14,000 workers in contracting firms serving the state mining company, after a sometimes violent strike that affected the production of the El Tenanted, El Salvador and Adina. Contract workers threatened to extend their protest to the private mining companies, but this did not materialize.

- July 2007 – A four-day strike at Collahuasi causes a rise in international copper prices.

- May 2009 – Workers at the Lomas Bays copper mine, owned by global miner Xstrata, reach a wage agreement with the company and end a stoppage of tasks that lasted nine days.

- November 2009 – Workers at the Spence copper mine, BHP Billiton group, end a strike that lasted 42 days and left a total loss of about 20,500 tons.

- December 2009 – Workers at Xstrata’s Altamonte go on strike after not reach an agreement with the company during its collective bargaining process.

- January 2010 – Union workers at the huge Chuquicamata copper mine started a strike that pushed up copper prices.

- May 2010 – Contract workers blocked the access road to Collahuasi, hitting operations and forcing the company to declare force majeure briefly.

- November 2010 – Workers at Collahuasi plant, a unit controlled by Xstrata and Anglo American, began a strike for higher wages that lasted over a month. This strike is enshrined among the most difficult he has faced a foreign mining in Chile.

- May / June 2011 – Production at Codec’s second largest mine, El Tenanted, is substantially reduced due to a protest by contractors, demanding better wages.

- July 2011 – Thousands of workers in all divisions of Codec made a one-day stoppage in protest at a plan of modernization. The strike will cost the firm to stop producing 4900 tons of copper.

 

A delegation of 12 residents of the district of Texaco Tacna to Lima travel after July 28 to talk directly with the elected president of Peru, Lolita Humana Tasso, who will ask the repeal of Supreme Decree 040-2007, through which granted a mining concession to Newmont.

That was the agreement that was made today during a meeting called in the local Commission on Irrigation Texaco, where virtually the entire population conglomerate ticaqueña. Villagers were happy that the company only has withdrawn its “local information” definitely looking out for Newmont.

“Regional President Tito Chicano is committed to us, to meet with President Humana. We agreed that we will go with him. We will be 12 who will travel to the capital to tell Lolita not want anything of mine, only our agriculture. They did everything they wanted (in reference to Newmont) as if they were our gods, from the beginning did not respect our position, “said the president of the Rural Community Texaco, Marcia Walter Liquate Chianti.

The leader reported that another of the agreements was performing in the district rural patrols so as not to allow the mining company comes again. “We do not want to see their trucks his entire splendor. We were a people living quiet, this issue has united us more, “said Liquate.

FACT. The company has a bad history Newmont that alarmed over the ticaqueños. The company is majority shareholder in the Yanacocha mine, and in 2002 accidentally spilled about 150 kilos of mercury in the town of Cajamarca Choropampa. The damage was “repaired” with a compensation of 3 million dollars to the municipality of Cajamarca, after a long dispute came to the United States.