Illegal Mining in Peru

Accusations of political corruption have become commonplace in Lima these days. This week, Peruvian Interior Minister Daniel Urresti sued Victor Chanduvi, the self-declared leader of informal miners in Peru, for defamation. Chanduvi had previously accused Urresti in the press of soliciting bribes from miners when he was the high commissioner of illegal mining for the President of the Council of Ministers. Minister Urresti called these accusations insulting, disrespectful, cowardly, and in bad faith, and said that they were clearly part of a systematic attempt to hurt his honor and reputation.

Accusations regarding impropriety and the illegal mining industry in Peru reach all the way to the presidency. Congressman Héctor Becerril has called for President Ollanta Humala and his wife, Nadine Heredia, to be called before Congress’ Finance Commission to respond to Chanduvi’s allegations regarding illegal miners’ contributions to the 2011 Humala campaign for the presidency. Becerril added that Urresti should stop defending Humala and allow the president to speak for himself.

News for the Cajamarca region is not good. Vice President for the region, Porfirio Medina, has stated his opposition to the Conga project and to mining in general in Cajamarca. He somehow believes that agriculture can replace mining as the economic engine for the region. The truth is, however, that Cajamarca desperately needs the revenue from mining, and agriculture could never come close to replacing it. The region clearly needs a diversified economic strategy, but mining will have to be a key component.