Thursday, June 11, 2015

Martial law working so far in Peru's Tambo Valley

The imposition of martial law in Peru’s Tambo Valley has sent protesting farmers back to work. The Associated Press interviewed local farmers who said that they would happily give up their current crop if it meant the cancellation of the controversial Tía María copper mining project by Southern Copper. Domingo Condori, a rice farmer, told the AP, “Here, life is peaceful. He who works, even if he lacks an education, gets ahead. Why would we want a mine?”

Locals feel abandoned and betrayed by Peruvian president Ollanta Humala, after 72% of the local farmers voted for him in 2011. María Figueroa, a farmer, told the AP, “He said that he was with the farmers, now he won’t get off is chair, he doesn’t come her, and he tells us that we are criminals. We all voted for him… and this is how he pays us.”

Despite the calm following the suspension of civil liberties in the Tambo Valley, the anti-mining violence has spooked investors in Peru’s mining industry, sending mining investment tumbling by 14% in the first quarter of the year. Nonetheless, a study by Scotiabank argues that the main reason for the drop in investment is the difficulty of attracting financing given lower metal prices.

Analysts stress that the contraction has only just begun, warning that investment could fall by another 17% before the year is over.

In other mining-related news, the process of formalizing artisanal miners in Peru continues unabated. In Piura, of the 2,200 small and artisanal miners that signed up for the formalization process, 1,123 of them have reached the second part of the process.


The mining industry in Peru will not be formalized overnight, but rather step-by-step, miner-by-miner, through efforts such as these. The hope is that once enough miners register, the process will gain a momentum of its own and not require such painstaking marketing and promotion from the Peruvian government.

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