Month-long protest of Pluspetrol finally ends

The month-long conflict between Argentine oil company Pluspetrol and the Achuar indigenous community of Pampa Hermosa finally ended on Thursday after an agreement was reached between Pluspetrol and the indigenous community for compensation for use of their ancestral lands. Pluspetrol noted that oil production would immediately recover by 3,050 barrels per day. Carlos Sandi, the leader of the Federation of Indigenous River Communities, the umbrella organization for the region’s indigenous groups, broke the news to reporters and added that the occupation of Pluspetrol’s local airfield also ended.

However, a different Achuar indigenous community in Nuevo Jerusalen, seized at least six oil wells on Sunday to exert additional pressure on Plupsetrol in meeting the community’s demands for compensation following a 2014 oil spill. This sets a dangerous precedent for oil companies looking to do business in Peru, as protestors have learned that they can escalate conflicts without repercussion.

In mining-related news, Peruvian business journal Gestión interviewed EY Peru partner Marcial García about the tax reforms that he believes the Peruvian government should implement to support the country’s mining industry and mitigate the effect of falling metal prices. García pointed out that the Peruvian government created a special tax on mining in 2011 when prices were at record highs, and now that prices have fallen again, the government should respond accordingly and reduce the tax and keep the country attractive for mining investment.

EY Peru also revealed that Peru performed very well in the new study released by the Fraser Institute, ranking 112 countries on their attractiveness for mining investment. Peru rose from 37^th to 30^th in the list, making it the second most attractive country in Latin America for mining investment, behind Chile.