Tuesday, July 14, 2015

Peruvian presidential candidates start mining posturing

Peruvian state energy regulator Perúpetro announced on Monday a delay on the bidding for the rights to develop the country’s largest oil block. The three companies involved in the bidding process, Perenco Ltd., Pluspetrol, and Pacific Rubiales Energy, requested additional time to finish developing their proposals. Argentine oil company Pluspetrol has been operating the block since 2001, but its contract runs out in August. The oil company’s time operating the 1-AB block has been marred by frequent protests by the local indigenous communities.

In other news, possible candidates for Peru’s upcoming presidential election have started laying out their positions on mining, one of the biggest issues in the upcoming election.

Alejandro Toledo, former Peruvian president and leader of the Perú Posible party, went on RPP Noticias to outline his mining proposal. He argued that more of the financial benefits from miming need to be invested in the communities around the mining deposits in order to avoid social conflicts. Decisively pro-mining, Toledo said, “The truth is that there has been a retraction in investment and we need to regain economic growth from investors and we need to create the necessary environment [for investment].”

Marco Arana, the ex-priest presidential candidate from the Tierra y Libertad party spoke with La Republica in Cusco about his mining platform. Arana’s policy on mining emphasizes national sovereignty over natural resources, giving mining a necessary but highly controlled role in society. He proposed an additional tax on mining profits. In regards to Tía María, Arana called for the government to indefinitely suspend the copper mining project.


We will be keeping a close eye on the Peruvian elections and the candidates’ varying stances on the country’s mining industry. As mining plays such a prominent role in Peru’s economy, the candidates’ stances on this issue could be the most important decisions they make.  

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