Thursday, March 31, 2016

Exploration investment continues in Peru's mining sector

Earlier this week, mining company Fortuna Silver announced that it would invest roughly $3 million in exploration in its Caylloma mine, located in the Peruvian department of Arequipa. Fortuna also provided updates on the expected reserves contained within the Caylloma mine. This is welcome news, as it shows that oil companies in Peru are still willing to invest in growing their operations despite the fall in international mineral prices.

In news related to illegal mining in Peru, the Global Initiative Against Transnational Organized Crime released a report declaring that the sex trafficking occurs at a vast scale in the parts of Latin America afflicted with illegal gold mining, particularly in Colombia and Peru. The report explains that the reason why human trafficking and illegal mining often go hand in hand is that the mines are often located in remote jungle areas, where the police are totally absent.


In macro-economic news, Reuters reported that Peruvian President Ollanta Humala decided to raise the Peruvian minimum wage by 13 percent, after the leading presidential candidates all promised to raise pay for the country’s workers. Humala publicly signed the executive order in the Puno region, which Reuters noted is one of the poorest in Peru. He announced, “You all will be the judge of who can do better than this government. When candidates come here looking for votes ... don't settle for just anything.”

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