By Marcelo Rochabrun

LIMA (Reuters – Peru’s leftist president Pedro Castillo indicated a stronger stance regarding protests against mining firms that are roiling Andean nation. Castillo mobilized the army in a tactical shift from a conciliatory previous approach.

Southern Copper Corp.’s Cuajone has stopped mining activities since February. Protesters representing mostly indigenous local communities are demanding financial compensation and a part of future profits.

On Wednesday, the government declared a state emergency at Cuajone’s Cuajone Mine. It said it would deploy military forces to the area and also suspend protest rights at the site that had been closed for more than 50 days.

Castillo was an ex-teacher who ran to office last year with support from poor mining communities hoping for more of Peru’s minerals wealth. In spite of a string of blocks that had hit Peru’s major export sector, he has not clashed with protestors.

Anibal Torres of Peru, Peru’s Prime Minister, said Wednesday that “the problem needs to be solved immediately.” He mentioned “irrational community demands at Cuajone”, including a request for $5 billion worth of payments. This has led to us declaring a “state of emergency.”

Last week, residents from the Fuerabamba indigenous Fuerabamba community set up tents right next to MMG Ltd’s Las Bambas open mine copper deposit.

Protests took 20% off Peru’s copper production offline, at a moment when Peru is struggling to grow amid rising global inflation.

Pablo O’Brien, who was a consultant to many mining ministers including Castillo, stated that “under this administration there is a greater number and they are much more serious.”

“The demonstrations have lasted longer than any time before and spread to areas you never saw social conflict in the past.”

“WE COULD STAY YEARS”

Since Castillo took office in July last year, protests also hit Peru’s other mines. These include the Anglo–Swiss Glencore’s Antapaccay and Canada’s Hudbay Minerals’ Constancia, Antamina, which are both owned by Glencore as well as the Anglo–Australian miner BHP.

Chile is Chile’s neighbor and the No. BHP, the No. 1 global copper producer is facing roadblockades. This has caused disruptions at its Escondida major mine. BHP had to reduce its outlook for its annual copper production this week.

The pinch is more severe in Peru where Cuajone, Las Bambas and the rest of Peru’s Gross Domestic Product make up 1.5%. MMG shares and Southern Copper share prices have fallen by more than 5 and 8 percent, respectively, over the past week.

Las Bambas executive have asked for the government’s support to declare an emergency at their mine.

Wei Jianxian (MMG’s Executive General Manager, Americas), said that Las Bambas is currently coordinating with government officials, and that they hope to take similar action for Las Bambas.”

The government representative for press said that they did not know of any plans to declare a crisis for Las Bambas.

Protesters however claim that they’re digging in for long-term, which indicates that disruptions of the mining sector will be difficult to fix and that the industry will continue its pressure on the government to act more forcefully.

Edison Vargas (32) told Reuters, “We could live here for many years.” Vargas, along with others, have established a camp in Las Bambas to demand the return of ancestral lands.

About 400 Fuerabamba family members were relocated to Nueva Fuerabamba, a small urban center that was established a decade earlier. According to mine executives, it paid 600 million soles (or $1161 million) in compensation.

Las Bambas has been infamous for its mining conflict and more than 450 days worth of roadblockades since 2016.

Vargas stated, “If the government turns their back on us,” We would rather die in Nueva Fuerabamba than in our ancestral lands.