minería y acuerdos comerciales

- PERÚ -Mining & trade

agreements

(Imagen: Markus)

1. Expansion of mining & extractive activities2. Socio-environmental conflicts and the need

for reforms3. Trade agreements as “locks”4. Another investment policy is possible?

Mining & trade agreements- PERÚ -

(1) Expansion of mining & extractive activities

• 2012: 23,9 million hectares are under concession.

• In 20 years, the total area under concession has been multiplied by 10; in the last six years, it has doubled.

• This doesn’t mean that all the concession area will be mined; but it means that the State recognizes rights to the owner.


• Concession area occupies more than half of the lands of rural communities (2008).



• Oil concessions occupy 75% of the peruvian rainforest.

• In 2005 the concession area was only 25%, so we see a rapid increase.

“It must have mine where mineral resource exists”

Walter Casquino Rey. President of Instituto Geológico Minero y Metalúrgico del Perú (Ingemmet).


Peruvian authorities what they say?

• Mining contributes about 6% of the GDP of Perú; 60% of exports; 21% of the stock of foreign direct investment.

• In terms of direct employment, the contribution of mining is only 1%.


• Mining is important in the Peruvian economy, especially in the generation of foreign exchange; It is similar to other activities in regard to taxes; and has little importance in job creation

• This means that if a project or set of projects is not done, the economy does not have to be paralyzed. There is a lot of propaganda about the centrality of mining in the country.

• It also means that there is scope for planning the growth of certain sectors and not just mining. No extractive fatalism.



• The role of Europe:

Europa57%

América del Norte20%

América del Sur15%

Asia6%

América Central1%

Oceanía0% Otros

1%

PERÚ: STOCK DE IED EN MINERÍA SEGÚN CONTINENTE DE ORIGEN(Part. %, a diciembre de 2009)


PERU: EXPORTACIONES MINERAS POR PRINCIPALES DESTINOS - 2011

Suiza; 21%

China; 20%

Canadá; 13%Japón; 6%

Estados Unidos; 6%

Corea del Sur; 5%

Alemania; 4%

Italia; 4%

Resto; 21%


PERU25%

ARGENTINA18%

CHILE17%

BRASIL14%

INDONESIA8%

CANADÁ 6%

AUSTRALIA6% Otros

6%

ALEMANIA: IMPORTACIONES DE COBRE

GERMANY: COPPER IMPORTS


PERÚ: GOLD EXPORTS

SUIZA 54%

CANADÁ 27.64%

USA 13.68%

ITALIA 2.50%

(2) Socio-environmental conflicts and the need for reforms

• The aggressive territorial expansion of extractivism has caused increasing socio-environmental conflicts.

Defensoría del Pueblo (2010)


• Conflicts can be seen as opportunities to identify problems in the legislation and make

the necessary reforms.


• Islay (Arequipa, 2011) – United Nations Office for Project Services (UNOPS) found 158 observations in the environmental study approved by the state.

• (Southern Peru, mexican capitals)

• Conga (Cajamarca, 2012) – international survey performed proposals to improve environmental study.

• (Newmont, US capitals)


• 2013: Government creates SENACE, a new entity that will review the environmental

studies; because of the lack of credibility of the Ministry of Mining.


• Bagua (2009): Indigenous peoples protest against decrees that affect them and that were not consulted.


• 2011: Congress passes the Act of Prior Consultation, in accordance with ILO

Convention 169.


• Espinar (2012) – Population protest after heavy metals detected in their water.

• (Xtrata, Swiss capitals)

• Government creates ad hoc commission for participatory and integrated environmental monitoring. Today, there is a bill that seeks to regulate this practice.


• As we see, Peru is in a process of reforms for better governance of extractive activities.

• We think that these reforms are still insufficient, but the fact is that there are a few important reforms in progess.

• These reforms occur in part because of the struggles of affected populations.


(3) Trade agreements as “locks”

• Perú currently has 17 Free Trade Agreements and 31 Bilateral Investment Agreements in force.

• These agreements are becoming padlocks impeding institutional regulatory changes.

• Through the Investor-state dispute settlement (ISDS), foreign corporations may turn to international courts of arbitration to contest decisions of the State without going through the domestic courts.


• La OroyaLa Oroya is one of the 10 most polluted cities in the worldIn 1997, the former metallurgical complex was privatized and acquired by Doe Run / Renco Group.By 2010, it had failed to complete the terms of the environmental mitigation plan. The State refused to extend the time again.


In 2011, Renco initiated arbitration proceedings under the FTA with the U.S.Alleges "unfair treatment" and seeks $ 800 million in compensation.


• Bear Creek

In 2011 there were riots in Puno against mining activities. Government of Alan García decided to cancel the Santa Ana project, of canadian company Bear Creek.


In 2014, the company announced the beginning of the process towards an international arbitration to recover its investment, under de Perú-Canadá FTA.


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