{"id":50053067,"date":"2022-04-22T16:42:58","date_gmt":"2022-04-22T15:42:58","guid":{"rendered":"https:\/\/stage.dialogochino.net\/?p=53067"},"modified":"2023-05-17T19:34:12","modified_gmt":"2023-05-17T18:34:12","slug":"53067-why-peru-las-bambas-copper-mine-conflict","status":"publish","type":"post","link":"https:\/\/dialogue.earth\/en\/business\/53067-why-peru-las-bambas-copper-mine-conflict\/","title":{"rendered":"Why is Peru\u2019s Las Bambas copper mine in constant conflict?"},"content":{"rendered":"

Once again, Peru\u2019s Las Bambas copper mine, one of the world\u2019s largest copper mines, is in the news for the wrong reasons. As part of a protest<\/a>, last week community members occupied company land at the site, operated by China Minmetals Corporation (China MMG), causing it to suspend<\/a> operations again. Protestors allege<\/a> that China MMG, which contributes an average of 1% to Peru\u2019s GDP through the project, failed to comply with various agreements.<\/p>\n

Las Bambas seems to live in constant conflict. In March, communities demanding better living conditions blocked<\/a> the road along which the ore is transported. Blockades on the same road also forced the mine\u2019s closure at the end of 2021.<\/p>\n

So why does the operation cause so much friction?<\/p>\n

Las Bambas\u2019 irregular road<\/h2>\n

Las Bambas traverses a complex geographic space. Its area of direct social influence is between the provinces of Cotabambas and Grau, in the southern region of Apur\u00edmac, where four in ten<\/a> of the near half a million inhabitants live in poverty. For the copper concentrate produced at the mine to reach the coast for export, it must be transported along the Corredor Vial Sur, a 325-kilometre road that bisects 37 communities\u2019 territories across Cotabambas and Grau, Chumbivilcas and Espinar in neighbouring Cusco department and, to the west, Caylloma in Arequipa department.

<\/p>\n

\"Map<\/p>\n

<\/div>Initially, a 206-km pipeline was meant to transport Las Bambas\u2019 copper ore out of Cotabambas, since the mine\u2019s former owner, Swiss company Xstrata, also owned a project 250 km south in Tintaya, which could process the extracted material. However, this plan was discarded in 2014, when Glencore, which merged with Xstrata a year earlier, sold<\/a> Las Bambas to MMG. A second modification to the project\u2019s environmental impact assessment<\/a> (EIA), approved in November that year, stated that products would leave by road \u2013 but no road existed for this purpose. So the Peruvian government reclassified and converted local roads to a higher-level national route, amid several reported irregularities<\/a>.<\/p>\n

The use of the corridor has generated a variety of complaints. Since President Pedro Castillo took office in July last year, communities and residents have raised<\/a> complaints on a number of issues, ranging from compensation payments for noise and dust pollution caused by passing trucks, to demands for employment operating the vehicles that provide services to Las Bambas.<\/p>\n

Communities have resorted to blocking the corridor in recent months. At the end of 2021, a blockade in Chumbivilcas, 200 km from the mine, halted operations. The mining union estimates that each day of a blockade at Las Bambas costs US$9.5 million<\/a>.<\/p>\n

In February, the community of Ccapacmarca, in Chumbivilcas, blocked the road around 100 km from Las Bambas, calling for compensation. In March, the community of Urinsaya, in Espinar, some 250 km from the mine, blocked the road for similar reasons. The company said it has lost more than 400 days of transporting materials since 2016, when it began operations.<\/p>\n

Las Bambas\u2019 complex problems<\/h2>\n

A January 2022 report by Peru\u2019s Ombudsman, the body tasked with protecting citizen rights, reported<\/a> nine active socio-environmental conflicts over Las Bambas \u2013 five in Apur\u00edmac and four in Cusco. From the first in 2011 to today\u2019s disputes, all relate to different claims.<\/p>\n

The most recent conflict occurred in July 2021. Six communities and other groups in Chumbivilcas called for Resolution 372-2018-MTC, the law designating communal roads as a higher-level national route, not to be recognised.<\/p>\n

The Presidency of the Council of Ministers (PCM), the prime minister\u2019s office, has also monitored the situation along the mining corridor. A document<\/a> it published this January found nine cases of social conflict in the area, although not all mention Las Bambas.<\/p>\n

At the end of March, another front of conflict emerged, as the community of Huancuire in Cotabambas rejected<\/a> the government\u2019s approval of the expansion of the mine that same month. The decision would allow mineral exploitation at Chalcobamba, one of Las Bambas\u2019 three deposits, and could boost annual production to around 400,000 tonnes<\/a> of ore.<\/p>\n

At present, ore is extracted from Ferrobamba, which has been operating since 2016. But the expansion and its integration with the entire mining complex requires approval of a fourth Modification of the Environmental Impact Assessment<\/a> (MEIA), which was initiated in June 2020 and is still pending. The EIA and MEIA must also be presented for public consultation.<\/p>\n

MMG\u2019s negotiation style encouraged more protests, and not fundamental solutions<\/p><\/blockquote>\n

Jos\u00e9 de Echave, of the NGO CooperAcci\u00f3n and a former vice-minister in Peru\u2019s Ministry of Envrionment, said the problems at Las Bambas are complex, and result from a climate of high expectations.<\/p>\n

\u201cThere are a large number of different populations, hamlets and peasant communities. Some have economic expectations, others have environmental concerns. Some aspire to be part of the value chain, others to jobs,\u201d de Echave said. \u201cSome are claiming compensation for the passage of the road, which went from being a communal trail connecting communities to a national road in an accelerated process, without complying with due process. In other words, there was no negotiation with the communities.\u201d<\/p>\n

Cynthia Sanborn, a researcher at the Universidad del Pac\u00edfico in Lima, who focuses on extractive industries and Chinese investments, agrees that unmet expectations are a factor, adding that road blockades and prolonged protests reflect different complaints. Not all are unique to Las Bambas.<\/p>\n

The mistakes of previous governments in approving changes to the ore transportation plan \u201chad such an impact\u201d, according to Sanborn. The errors of the company, which she said has a \u2018transactional style\u2019 of negotiation, \u201cyielded to the pressures of the blockades in such a way as to encourage more protests, and not fundamental solutions.\u201d<\/p>\n

There has also been a consistent lack of a state presence in the area due to a high turnover of officials and a lack of training. External advisors, who come from a variety of organisations and approach communities offering services \u2013 often presenting themselves as aligned with their cause \u2013 can end up exacerbating divisions to seek immediate economic benefits, Sanborn adds.<\/p>\n

Political instability and economic uncertainty<\/h2>\n

Richard Arce, a former congressman for Apur\u00edmac and a candidate for the region\u2019s governor, said the state and the company must address the range of claims, since the mining corridor and, in particular, the Chumbivilcas area, have become national priorities. He insists that Apur\u00edmac and Cusco need swift solutions, otherwise the regions will witness \u201ca confrontation between brotherly communities\u201d.<\/p>\n

\"aerial
Read more: Tax reform in Peru would not damage mining industry<\/a><\/strong><\/figcaption><\/figure>\n

In recent months, authorities from both regions have held conflicting positions on the scope of the claims over Las Bambas and its economic benefits. Baltazar Lantar\u00f3n, governor of Apur\u00edmac, said that laws pertaining to royalties and the mining canon \u2013 a mechanism in which 50% of the total income tax paid by extractive companies is transferred to the host region \u2013 must not be violated to the detriment of the region. This year, Las Bambas started to pay income tax<\/a> and is expected to reap large economic benefits.<\/p>\n

Lantar\u00f3n\u2019s comment comes as Cusco communities wish to be considered part of the project\u2019s direct area of influence, something which he is against. Cusco governor, Jean Paul Benavente, however, agrees. \u201cNo one is going to touch the royalties or the canon [of Apur\u00edmac],\u201d he said.<\/p>\n

In Apur\u00edmac, there is concern about blocking the transit of copper. According to Arce, the region loses 3.5 million Peruvian soles (US$900,000) each day there is a blockade. Furthermore, Las Bambas accounts for 78% of regional GDP. For this reason, Lantar\u00f3n has proposed building Apur\u00edmac\u2019s so-called trans-Andean economic corridor, an alternative route that would not pass through Cusco.<\/p>\n

Arce said the proposed trans-Andean corridor is \u201ca strategic response\u201d to the risk of blockades along the route. But De Echave urges caution.<\/p>\n

\u201cAs long as the underlying issues are not addressed, and it is simply thought that the solution is to create a new road, the problems will be transferred to this new road and to the populations in the area of influence,\u201d the former vice-minister said.<\/p>\n

Instability prevails<\/h2>\n

Ruth Luque, a congresswoman for Cusco, questions the signing of specific commitments with communities or districts. She believes that there should be a coordinated vision throughout the entire corridor, from Apur\u00edmac to Cusco. \u201cThis is lacking, but this strategy requires the involvement of authorities at different levels \u2013 local, provincial and regional \u2013 and to stop looking [at the situation] from an overly territorial perspective,” she said.<\/p>\n

Arce said: \u201cThe government does not have a clear policy, it is not interested in dealing responsibly with the management of socio-environmental conflicts, especially in the mining corridor, and the damage is immense.\u201d<\/p>\n

For Sanborn, the president and his executive have not demonstrated any leadership, strategy or clear priorities. \u201cNor have they placed people with knowledge and training in conflict management or regulation of extractive activities in key positions,\u201d she said.<\/p>\n

In his first eight months in office, Castillo has had four cabinet chiefs<\/a> and 45 different ministers in charge of Peru\u2019s 18 ministries. Numerous changes of lower-ranking officials add to ongoing political instability. Regional and municipal elections<\/a> in October could destabilise the situation further.<\/p>\n

In this context, Sanborn said, \u201cfrustrations arise on all sides. And the disillusionment is especially noticeable in the communities directly affected by mining, as they voted overwhelmingly for Castillo with expectations of social change in their favour.\u201d<\/p>\n

Di\u00e1logo Chino requested comments from PCM and MMG Las Bambas, but they had not responded by the time of publication.<\/p>\n","protected":false},"excerpt":{"rendered":"

Activities at Las Bambas have stopped twice in five months due to protests and road blockades. 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