Peru to increase public spending in mining regions to curb social conflicts

Loyal Metals

10/05/2022 15:37

LIMA, May 10 (Reuters) - 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 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.

 (Reporting by Marcelo Rochabrun;
Editing by Alistair Bell)
 ((Steven.Grattan@thomsonreuters.com;))