Since 2011, the country has postponed $21.5 billion worth of mining projects due to social conflicts and bureaucratic obstacles, according to data provided by the Peruvian Institute of Economics.
Peru, where more than 50 percent of its exports comes from mining copper, gold and silver, has faced rural communities’ opposition to mining projects since 2010. From then on, social clashes and deadly confrontations between the authorities and rural protesters have delayed the development of several large mining explorations across the country, which has generated losses of $14.9 billion in the last few years.
Last week, Peruvian Government was forced to declare a state of emergency and implement martial law in the south of the country. There, local communities are fighting against the $7.4 billion Las Bambas copper mine, owned by a consortium led by China’s MMG Ltd, who has been accused of changing the project’s environmental plan.
Peruvian conflict, which has already left six deaths this year, exemplifies the increasing need for social license in the mining sector, especially in countries where mining projects’ development has a deep impact in local communities.
Image via: El Comercio