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

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© Reuters. FILEPHOTO Felicita Quintaspe observes trucks passing along the highway that is used for mining businesses, Chumbivilcas outside Cusco (Peru) October 13, 2021. Picture taken October 13, 2021. REUTERS/Angela Ponce

LIMA (Reuters – Peru’s Finance Minister Oscar Graham announced Tuesday that the country will boost public spending on mining areas to reduce social conflict and improve mining output.

Peru is the world’s No. The No. 2 producing country and mining are key sources 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.

Graham spoke at opening of conference by SNMPE, Peruvian mining chamber. The proposed public spending was not disclosed by Graham.

Peru’s Andean Region is where most of the mining activity takes place. The mineral richness has been criticized by many local communities in Peru, some of which are indigenous.

With massive support from the mining areas, Pedro Castillo, a leftist president was elected to office last year.

MMG Ltd’s Las Bambas copper mine suspended operations on April 20 after two local communities entered company property. Operation are still suspended.

Southern Copper (NYSE:) Corp’s Cuajone mine resumed operations this month after a 50-day halt.

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