Peruvian government urged to intervene in social conflicts

Carlos Gálvez, president of the Peruvian National Society of Mining, Petroleum, and Energy (SNMPE), called on the government to intervene and help resolve conflicts between local communities and mining companies. He told reporters, “The state must guarantee compliance with accords between mining companies and communities, just as the miners do.”

Rosa María Ortiz, the recently-appointed minister of Energy & Mines admitted that sometimes these conflicts stem from a lack of governmental services in the areas. She said at an international mining investors’ conference in Toronto on Tuesday, “Often social conflicts are not due to problems with the investors or the mine, but rather to demands dating back many years, which is the state's responsibility.” Minister Ortiz is confident that the economic reforms that Peru has implemented in recent years make the country one of the most competitive in the world for attracting investment in the mining sector.

During the conference in Toronto, a panel of international mining experts offered advice to interested investors on how to invest successfully in Peru. One panelist recommended that investors must be committed for the long term, as projects customarily take 4 to 6 times longer to develop than is initially estimated. All of the panelists agreed that the key to a successful mining project is the support of the local community.

In news related to illegal mining, Peruvian business journal El Comercio reported that the 45 mining companies that operate in the Lambayeque region in Peru, are doing so illegally, entirely without approval from the Ministry of Energy and Mines. The report explained that officials in Lambayeque have been very slow to organize and legalize its mining industry. The local officials however blame the miners for not being interested in formalizing.