Peru's mining sector rebounded in May

The Peruvian National Institute of Statistics and Informatics (INEI) announced on Wednesday that the country’s mining production increased by 1.49% in May 2015 in comparison with the same month one year earlier. This marks the third straight month of growth in the mining sector. May’s solid performance was made possible by a strong growth of 8.69% in metals production. On the other hand, hydrocarbons production plummeted by 22.1%, dragged down by declining production of crude oil, liquefied gas, and natural gas.

In other mining-related news, a study released on Wednesday by the Peruvian Institute for Economics shows that problems within the mining sector, such as social conflicts and bureaucratic red-tape, cost the Peruvian economy $67.2 billion over the last seven years. For example, the study explains that, in 2014, Peru lost a whopping 4% of GDP growth due to problems within the mining sector. Beyond just the lost money, Peru also lost 534,000 jobs each year between 2008 and 2014 due to the delays in implementing mining projects.

Peruvian ex-president Alejandro Toledo spoke out about the newly released poverty rates for the Peruvian department of Cajamarca. According to the INEI, 52% of the population of Cajamarca lives in poverty, and more than half of families only have access to wood-burning stoves. According to Toledo, the collapse in mining investment is to blame, and declared that restarting the troubled Conga mining project could bring the region out of poverty. He said, “This is the moment to save Cajamarca from poverty and decline. This means that Conga needs to go forward, I know that this won’t make people happy; Conga must go forward, only when it respects its socio-environmental responsibility and invests directly in the communities.”

In oil-related news, a consultation was held between Petroperu, the local ombudsman, the Organism for Environmental Evaluation and Justice (OEFA), and representatives of the local communities near Lot 192. The purpose of this meeting was to build stronger ties between the various actors and avoid social conflicts.