Mining companies say “erratic” actions of Peruvian government exacerbate conflicts

RIO DE JANEIRO, BRAZIL – The lobby association that brings together Peru’s largest mining companies said Thursday that the “erratic” actions of President Pedro Castillo’s government are exacerbating conflicts in the sector.

Since leftist President Castillo took office at the end of July with the promise of providing more significant benefits to marginalized communities, the mining sector has faced a wave of protests amid claims of environmental and social concerns.

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The Las Bambas copper mine, one of the country’s most extensive and controlled by China’s MMG Ltd, warned on Tuesday that it would suspend production due to a road blockade that began on November 20, amid a protest by residents of the Andean province of Chumbivilcas.

“The conduct of the representatives (of the Ministry of Energy and Mines) has proven to be erratic and biased, endorsing the blackmail to which Las Bambas is subjected by a group of leaders demanding advantageous contracts for ore transportation,” the National Society of Mining, Petroleum, and Energy said in a statement. This “has ended up exacerbating the conflict,” it said.

Chumbivilcas, in the Andean region of Cusco, had reached an agreement with Las Bambas in October to secure transport work for its community in exchange for not blocking the road through the province in the future.

But negotiations stalled over the exact number of jobs, and the locals again blocked the road in protest. “We are not facing a socio-environmental conflict, but rather demands of a commercial nature, under a situation of unacceptable pressure,” said the powerful mining lobby.

As the road is known, the mining corridor has been blocked for more than 400 days since Las Bambas began operations in 2016 due to complaints from several communities in the area who allege that the dust is affecting their crops and livestock.

Las Bambas has said that a long-term solution to the protests would be for the government to build a freight and passenger railroad, which would also transport its concentrates to a seaport. The estimated cost is about US$9.2 billion.