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Peru will increase public spending in mining regions in a bid to de-escalate social conflicts that have impacted mining output, Finance Minister Oscar Graham said on Tuesday.
Peru is the world’s No. 2 copper producer and mining is a key source of tax revenue.
But recent disputes between miners and local communities have forced two key copper mines to temporarily halt operations this year, accounting for a combined 1.5% of the country’s gross domestic product.
“Considering the issue of social conflicts we are going to pass a decentralized investment package in mining zones,” Graham said at the opening of a conference organized by the Peruvian mining chamber SNMPE. He did not give a figure for the proposed public spending.
Mining in Peru is concentrated in the historically impoverished Andean region. Local communities there, many of them indigenous, have long complained they have failed to benefit from the mineral riches.
Leftist President Pedro Castillo was elected last year with massive support in mining regions.
MMG Ltd’s Las Bambas copper mine suspended operations on April 20 after two local communities entered company property. Operations remain suspended.
Southern Copper Corp’s Cuajone mine resumed operations this month after a 50-day halt.
(By Marcelo Rochabrun; Editing by Alistair Bell)
Comments
Carlos Gardel
Wow they are going to distribute the Cannon fund. Dont believe it. This has been the problem with Peru for the last 30 years. The mining company pays 5% of profit into the canon fund and it all goes to Lima and the Federal government and it never gets distrbited to the provinces. Last time I heard it was up to $10B. Thats a lot of infrastructure in a lot of poor regions.