Peru

Peru: indigenous resistance defeats oil contract

Canadian oil firm Frontera Energy Corp has failed to secure a new contract for operating Peru’s biggest oil bloc because of a lack of "adequate conditions," state company PetroPeru announced Oct. 11. Frontera has operated Bloc 192 in the Amazonian region of Loreto for the past two years, but control of the oilfield will revert to PetroPeru once its contract ends in 2019. PetroPeru gave no further details on the decision, but it comes two weeks after Frontera applied to state regulator PeruPetro for an official declaration of force majeure over protests by indigenous communities living within the oil bloc. The declaration would allow the company to legally suspend contractual obligations due to an event outside of its control. Indigenous protesters seized oil wells in Bloc 192 to demand that their communities be consulted before a decision was made on renewing the contract.

Peru seeks to overtake Chile in copper production

In ominous news for environmental defenders in Peru, the administration of President Pedro Pablo Kuczynski (PPK) is planning to revise mining regulations to enable the Andean country to overtake its southern neighbor Chile in copper production. Despite higher-grade ores and lower mining costs than Chile, Peru's government says its potential in copper exploitation is being restricted by too much bureaucracy. "We need to create the necessary conditions for mining to grow in our country so the government can invest in basic services, healthcare, education and infrastructure," said Mines and Energy Minister Cayetana Aljovin.

Peru: campesina sues Newmont Mining

Peruvian campesina Maxima Acuña de Chaupe and her family are suing Newmont Mining in US federal court, claiming the company used violence and threats to try to evict them from their home to make way for the controversial Conga open-pit gold project. The case, filed Sept. 14 in Delaware where Newmont is incorporated, aims to "stop a pattern of harassment" by Newmont and its security personnel, said environmental group EarthRights International, which is representing the Acuña family. The suit is seeking damages of at least $75,000 for each affected member of the family.

China wins contract for Amazon mega-project

Peru's Transport and Communications Ministry on Sept. 7 signed a contract with Chinese state-owned engineering giant SinoHydro to build the Hidrovía Amazónica, a mega-project aimed at turning the Amazon's major rivers into arteries for delivering the resources of the rainforest basin to foreign markets. Peruvian firm Construcción y Administración SA (CASA) is also to be a partner in the deal, announced earlier this year by the government's foreign investment arm, ProInversión. With a projected cost of $95 million, the Hidrovía calls for dredging 2,687 kilometers of Amazon waterways to make them navigable year-round. It encompasses stretches of the rivers Marañón and Amazonas (from Saramiriza to Santa Rosa), Huallaga (from Yurimaguas to the Marañón) and Ucayali (from Pucallpa to the Marañón). These rivers usually are too low for commercial navigation during the July-October dry season). Proinversión claims to have carried out a "prior consultation" with impacted communities along the rivers, having won 40 agreements to proceed with work. (Gestion, Sept. 7; El Peruano, July 17; BBC Mundo, July 7)

Peru: pending law threatens indigenous lands

Indigenous rights advocates in Peru are protesting a law being prepared by the administration of President Pedro Pablo Kuczynski (PPK) that would allow the government to abrogate the land titles of indigenous and peasant communities for development projects that are deemed "high-priority." This power, long sought by the oil and resource industries, was announced as a goal by the PPK administration shortly after taking office last year. The measure was first promulgated in January as Legislative Decree 1333, during a 90-day "honeymoon" period when Peru's Congress granted PPK special powers to enact laws by fiat, with only after-the-fact review by legislators. One of 112 decrees issued during this period, DL 1333 instituted a process entitled Access to Predios for Prioritized Investment Projects (APIP), allowing the government to "sanear" (literally, cleanse) titles to rural lands. Critics assailed this as a euphemism for arbitrary expropriation, and in May lawmakers  voted to overturn the decree. But on July 28, PPK submitted Law 1718 to Congress, essentially recapitulating the text of DL 1333—only this time, legislators will have to vote to approve it. The responsible agency for overseeing the saneamiento process—ProInversión, a division of the Ministry of Economy and Finance—says it has identified 33 projects around the country that could fall under the rubric of APIP. A watchdog on indigenous land rights, the Secure Territories for the Communities of Peru Collective, has joined with Peru's alliance of Amazonian peoples, AIDESEP, in dubbing Law 1718 the "Law of Dispossession," and calling on Congress to reject it. (AIDESEP, Sept. 12; Servindi, Sept. 3; El Comercio, Aug. 17; La Mula, Aug. 16; El Comercio, May 26; Bonds & Loans, May 22; Instituto del Bien Común)

China enters Peru hydro-electric sector

A consortium led by China Three Gorges Corp has agreed to buy a giant hydro-electric plant under construction in Peru from scandal-mired Brazilian company Odebrecht. The Chinese consortium, also including Hubei Energy Group, is reported to be paying $1.39 billion for the Chaglla power plant, which is located on the Río Huallaga in Chaglla and Chinchao districts of Huánuco region. The Chaglla complex has recieved  $150 million in funding from the Inter-American Development Bank and Japan's Sumitomo Mitsui Banking Corp. When completed, it will be Peru's third largest hydro-electric facility.

Peru: Cuzco unrest over airport plan

Protesters blocked the train line to the Inca archaeological site of Machu Picchu, stranding thousands of tourists during a 48-hour paro (civil strike) by residents of Peru's Cuzco region. British-owned PeruRail company announced that service was suspended July 13-4 because of the blockades. At issue is a planned new airport for the Cuzco area, that was suspended in March due to controversies surrounding the construction contract. The airport—slated for Chinchero Valley, to the north of Cuzco's capital in neighboring Urubamba province—has now been pushed back until 2020. Local residents were eager for the region's first intercontinental airport to boost tourism revenues, and as a symbol of autonomy from Lima. Constantino Sallo, president of the Defense Front for the Interests of Chinchero District, demanded the government set a timetable of between 90 and 120 days to break ground on the project.

Peru: 'mega-operation' against outlaw gold miners

Peru's government has mobilized some 2,000 National Police troops to the buffer zone of Tambopata National Reserve in the Madre de Dios region to evict illegal gold-miners operating in the zone. Authorities say over 80 camps have been evicted since the operation began July 3, and millions of dollars worth of equipment destroyed. Hundreds were briefly detained in the operaiion, dubbed "Mercury I," and 12 formally charged with illegal miniig and other crimes. Outlaw miners have for years been encroaching on the remote reserve, clearing rainforest and polluting waterways with mercury. The Interior Ministry's Vice-Minister for Internal Order Rubén Vargas, on the scene in Madre de Dios, told reporters: "Illegal mines have operated here for many years and the results, as you can see, are Dantesque. This is an activity that's equally or even more lucrative than drug trafficking."