Mining at the center of Peru's presidential race

Unsurprisingly, Peru’s mining industry has been a frequent topic of debate during the country’s presidential campaign. Peru derives 70% of its exports from mining, and the industry is at the heart of the country’s economy. However, last year for the mining industry was marked by frequent and violent social conflicts between local communities and large mining companies. For the most part, Peruvian president Ollanta Humala and his administration have stayed on the sidelines in these conflicts, only stepping in and shutting down projects once violence erupts.

The frontrunner in this year’s Peruvian presidential election, Keiko Fujimori, will work to get mines approved faster, but only if they have the support of the local community, according to her economic adviser and running mate Jose Chlimper. He explained that Newmont Mining Corp and Southern Copper Corp failed to win the support of local communities to their Conga and Tia Maria mining projects, and that’s why the projects were shut down.

Reuters noted that, while the next presidential administration will inherit record-setting copper production in the country, no new large mining projects are in the pipeline. The next administration will need to work hard to develop a new model that encourages international investment in large mining projects despite the social tensions and the fall in global commodity prices.

In oil-related news, Peruvian state oil company Petro-Perú could be fined up to S/. 79 million for its failure to comply with environmental regulations that led to two oil spills in the Peruvian Amazon earlier this year.  The administrative proceedings, led by the Agency for Assessment and Environmental Control, have already begun, and will order Petor-Perú to clean up the affected areas.  

The oil spills have received considerable international attention, and the BBC on Tuesday published an article highlighted the personal stories of the locals affected by the oil spills.