Thursday, March 26, 2015

Social conflict over mining projects in Peru

The latest in a seemingly never-ending series of social conflicts over mining and oil sector projects in Peru occurred this week in the region of Arequipa. Reports have emerged that despite the Peruvian Interior Ministry ordering an additional 2,000 police officers to the region, protestors clashed with police, who used tear gas and rubber bullets to disperse the crowds. According to the local police chief, the protestors numbered between 600 and 700, while protest leader Juan Carrasco said there were more than 3,000.

In other mining-related news, Jesús Álvarez Quispe, the director of mines for the Regional Directorate of Energy and Mines in Puno, confirmed that, so far, 25 miners have completed the formalization process in Puno, the most of any of the regions in Peru. He explained that the rate of formalizations had been slowed by the previous general director for formalization, who wouldn’t allow miners to change their registered location. Quispe believes that, under the new director, 600 to 700 miners will complete the process this year in Puno.

In the Peruvian oil sector, Juan Castillo, a senior leader of the workers union in the Peruvian state oil company Petroperú, told Reuters that the Peruvian government wants to cancel Petroperú’s 25% share in oil blocks 3 and 4, that it had planned to develop with oil conglomerate Grana y Montero.  According to Castillo, Minister Rosa María Ortiz, is behind the decision, as she believes that partnering in the development of blocks 3 and 4 would violate a law that requires Petroperú to prioritize upgrading its Talara refinery.  


Reuters noted that if this were true, it would mark a reversal on Peruvian president Ollanta Humala’s campaign promises to allow Petroperú to participate in oil production for the first time in over 20 years. This is part of a larger strategy to transform Petroperú into a regional oil player like Brazil’s Petrobras and Colombia’s Ecopetrol.

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