Monday, April 20, 2015

Plan approved to fight illegal mining on Peru-Bolivia border

Over the weekend, the Peruvian edition of La Republica reported that the Working Group for Control and Security of the Binational Peruvian-Bolivian Technical Commission on the Río Suches approved a plan to support, systematize, and coordinate the two countries’ actions to fight illegal mining along their shared border. The Working Group includes representatives from various Peruvian ministries, including the Presidential Council of Ministers, the Defense Ministry, the Mining and Energy Ministry, the Ministry of the Environment, the Interior Ministry, and the Ministry of International Relations.

Elsewhere, Perú 21 and El Comercio published editorials that continue the debate over Southern Copper’s embattled Tía María copper mining project. Juan Mendoza, writing for Perú 21, is staggered by the massive sums of money – approximately $12 billion between 2011 and 2014 – that have not been invested in mining projects due not to questions regarding project viability or licensing, but rather because of local protests. He points to the examples of Conga, Galeno, Cañariaco, Shahuindo, Quechua, Hilarión, Haquira, and Michiquillay, all projects that have been put on indefinite hold because of the rancorous anti-mining protest movement. The author notes that, not included in this summing of losses is the loss of authority for the Peruvian state and possible litigation against the Peruvian government for breach of contracts.

Diana Seminario, writing in El Comercio, talks about the high-level talks taking place between the Peruvian Executive branch, Southern Copper, and anti-mining leaders to resolve the social conflict over the Tía María project. Seminario asks where are the regional political parties, like Fuerza Popular, the APRA, or the PPC. Why have they failed to take on the opponents mining investment? She warns them that the standard approach of waiting to see what happens before taking a position will end up backfiring. If they do not come out in favor of responsible mining, there might not be any investments to fund their projects and ambitions if they end up taking office.


Southern Copper, however, will be just fine. The mining company, with the biggest copper reserves in the world, is going ahead with a $1.2 billion expansion of its Toquepala mine, which will double the mine’s production output. The company is still committed to its investment in the Tía María project, but it has other projects in the country that it can fall back on.

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