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Message: Peru News

Good news for the Mining Sector:

Peru to create new office to resolve natural resource conflicts
  • Lima, Jan. 05 (ANDINA). Peru's government is planning to create a new office that will be in charge of preventing and resolving social conflicts in the country that have affected mining and energy projects, Prime Minister Oscar Valdes said.

    "This national office will have representation in all of the regions," Valdes said on Thursday.

    Resolving social conflicts is seen as one of the main challenges of President Ollanta Humala's government, which took office in July 2011.

    Conflicts have halted numerous natural resource projects over the last several years. In 2011, Southern Copper Corp. (SCCO) suspended work on its Tia Maria copper project due to violent protests, while Anglo American PLC's also decided to put on hold development of its Quellaveco copper project due to opposition.

    The latest project to face opposition is Newmont Mining Corp.'s (NEM) $4.8 billion Minas Conga copper and gold development. Newmont suspended Conga, Peru's biggest mining project, in November following days of protests by residents and local politicians.

    Valdes said in a speech before Congress that the government is creating a new relationship with the mining sector, which includes providing greater attention to resolving social conflicts, Dow Jones Newswires reported.

    The government has taken steps to resolve the disputes. In August, Congress approved legislation that will oblige prior consultation with indigenous peoples who will be affected by resource extraction projects.

    The final text of regulations on how Peru's government will implement the new law was scheduled to be completed by Jan. 23, but Valdes said that this may be delayed.

    "There are some communities that have asked for an extension to this time frame, and we are looking at the possibility of recommending an extension," Valdes said.

    Valdes also said that the prime minister's office will set up a multi-sector committee to review current policies surrounding the environmental impact studies, the administration of water resources and environmental oversight.

    The environmental impact study is a key permit that is required to develop natural resource projects.

    Some analysts have long criticized the process for approving environmental impact studies, saying that it is outdated and that government should have more control in the process.

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