Peruvian mining's biggest challenge is overcoming its bad reputation

Spanish business journal El Comercio reported on the first day of the International Congress on Mining, Energy, and Metals, held in the Spanish city of Gijón. During a roundtable on growth possibilities in South America, representatives of the mining companies Buenaventura, Yanacocha, and Grupo México spoke about what they believe are the biggest worries for the mining sector.

They agreed that the industry’s biggest challenge is overcoming its negative public image, arguing that while their companies excel at building mines, they still have much to learn about communication. All of the mining executives were bullish on the future of the Peruvian mining industry.

In other mining-related news, the Peruvian government extended by one month the deployment of the country’s armed forces in their supporting role to the National Police in the southern Peruvian regions of Arequipa, Puno, and Madre de Dios. The involvement of the armed forces has been extended until July 15^th, with the objective of “guaranteeing internal control and avoiding acts of violence by movements sponsored by illegal mining.”

In oil-related news, Perupetro and Unipetro signed a contract for the exploitation of Lot 9, also known a Talara. Under the new contract, Unipetro will pay a variable royalty on the oil it extracts, between 36% and 52%. Lot 9 produces on average 192 barrels of oil per day, with 80 active oil wells.