Peru mining protests risk clogging $53 billion investment pipeline, industry warns
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Social conflicts have risen in the Andean nation over the past year since socialist President
With global prices soaring on high demand, that now threatens a mining investment pipeline of some
"Without any world-class projects on the horizon, the prospects for sustaining production are not good," said
Mining executives and analyst met last week in
The conflicts, mainly in poor Andean areas where communities feel bypassed by the huge mineral wealth beneath their soils, have started to bite, with protesters emboldened under Castillo who won election pledging to redistribute mining wealth.
Southern Copper's (SCCO) Cuajone mine was paralyzed for almost two months earlier this year.
Las Bambas, owned by
Las Bambas had received government approval in March to expand the mine, a plan which is now under threat.
Álvaro Ossio, vice president of commercial and finance for Las Bambas, said in a presentation at the
"The great challenge that remains for all Peruvians is to take advantage of this great opportunity in these future trends," he said.
However, other major projects like Southern Copper's (SCCO) Tia María, Michiquillay and Los Chancas worth some
Not all was downbeat, however.
The world's largest gold miner, Newmont Mining, said at the event that it was considering expanding into copper production in
Analyst Tamayo, though, stressed recent protests against mining had become harder to resolve.
"Now there are protests that stop mines in full operation," he said. "The mining firms feel that the State does not support them and that the State has ceased to be the arbiter in conflicts."
(Reporting by