Updates on Social Conflicts in Peru

The biggest obstacle in the way of Peru fully tapping its enormous mining potential has been the persistent social conflicts between local communities and large mining companies. The most recent flashpoint has been over the massive, Chinese-owned Las Bambas copper mining project. On Monday, the Peruvian Ministry of Energy and Mines announced that it was organizing new Informational Workshops to discuss the Las Bambas project’s environmental impact study, scheduled for early November.

Arguably, the largest driver of these social conflicts is a lack of effective communication between the Peruvian government and large mining companies on one side, and local communities on the other. The government and the mining companies need to effectively communicate the tremendous benefits that these projects can bring to the local communities. They must not take local support for granted or assume that the benefits of a massive mining project will be self-evident. An effective communication strategy should not be overlooked.

While local opposition is holding the Las Bambas project back, Bear Creek’s Corani mining project is being delayed by a lack of financing. The $700 million project has the support of the local communities of Chacaconiza and Quelcaya in Puno, but construction has been postponed because of a lack of money. Andrés Frano, Vice President for Corporate Development at Bear Creek, explained that its good relationship with the community has made it easier for the company to solicit money from potential investors.