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November 4, 2022
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Mining: violence and blockades harass the sector

Apurimac's GDP fell 33.1% due to social conflicts

Between January and August, the production of the main metals, such as copper, gold, zinc, silver, lead, iron and molybdenum, registered negative results, according to data from the but far from reversing this fact, the situation for the mining sector is getting worse.

For the National Society of Mining, Petroleum and Energy (SNMPE) “there is a new escalation of violence” that threatens the sector. This would include conflicts and crashes.

The union specified that there are “pseudo advisers” from the communities who are “spurring” the population to confront the companies and who put the workers at risk, as was the case with the attack on the Inmaculada facilities, owned by the mining company. Ares, where 1,700 employees were put at risk.

“It has been possible to identify that the same agitators that have been operating for several years in the southern mining corridor, today have moved to Ayacucho to extort money from the mining companies that work in this region,” he said.

Another well-known case is that of Las Bambas. The SNMPE considered that this project could be paralyzed due to the constant roadblocks in Cusco.

“Las Bambas has suffered the blockade of access roads to the mine for more than 549 days since it began operations in 2016,” he stressed.

Yesterday the mining company announced a reduction in its operations due to the seizure of highways and indicated that a stoppage will mean “economic damage to the country, the Apurimac region and its population.”

“The longest (stoppage of 57 days, in 2022) generated losses to Peru,” he said in a statement. The negative impact to which the union refers involved losses of US$541 million in exports and S/296 million for income tax and mining royalties.

GRAY PANORAMA

The mismanagement of conflicts leads us to think that in 2023 there would be a gray outlook. The former executive director of the SNMPE, Pablo de la Flor, stressed that the uncertainty and lack of new projects are worrying.

“We have a frankly worrying panorama, we do not have a major project for next year, which leads one to think that we will have a significant retraction of the order of 15% to 20% of investment in mining,” he assured.

Despite the fact that Aníbal Torres gave a favorable speech at Perumin, for De la Flor “from the government there is a permissive attitude and there is complicity with violent situations that the sector has faced.”

Meanwhile, the former Vice Minister of Mines, Rómulo Mucho, assured that the Executive has not understood that this generates less collection and income for the country and employment.

Currently the specialist is in Australia with a Peruvian delegation to promote the country.

“The news flies, everything is known; They ask me what is happening with the mines. We tell them that investments are for the long term and that the bad moment must pass. But a radical change is also needed (in terms of conflict)”, he added.

Keep in mind

Las Bambas indicated that the Huancuire community continues to invade the land acquired for the development of the Chalcobamba pit since April 14.

The 57-day paralysis of Las Bambas this year generated losses in Apurímac for S/182 million, equivalent to more than 80% of the annual social protection budget.

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