Problems relating to Trade and Investment on Peru
26. Others |
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Issue |
Issue details |
Requests |
Reference |
| (1) Residents' Protest against Developments | - The regional residents are against the mining development and it is quite possible that exploration in the promising mine lot is restricted. - Without the true appreciation of the economic importance of and the environmental measures provided by the local mining activity, the local opposition against mining frequently develops. |
- It is requested that GOP redoubles its effort to maintain order and public security. Otherwise, it could impact the investment decision. - It is requested that GOP takes the leadership in providing the local residents with a social education on the importance of the mining activity. |
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| (Action) - On 5 January 2012, new Prime Minister Oscar Valdes in his policy speech stated he would newly put up an office for prevention and resolution of social confrontation in the Cabinet responding to The residents' protests around the mines. However, in May, at Tintaya copper mine in the Cusco Region, fatal casualties and injuries of protestors occurred. Government declared state of emergency. In June, the protests demanding the raise in royalty at the copper mine turned into riots in Espinar Province of the Cusco Region. - On 3 April 2012, GOP promulgated the Detailed Implementing Rules for Free Prior and Informed Consent (FPIC) with indigenous peoples, based on the Law of the Right to Prior Consultation with Indigenous or Tribal Peoples (Law 29785), Recognized in Convention 169 of the International Labor Organization. The principle of FPIC requires that indigenous community be informed before the government's grant of approvals and licences for exploration and/or development of these projects, in a culturally appropriate manner, about natural resources development, etc. that have direct impact upon their collective rights, such as mines and hydrocarbon operations. |
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| (2) Delayed Infrastructure Overhauls / at the cost of Enterprises | - Demurrage frequently occurs due to the shortage of cargo handling capacity at Callao Port, which heavily costs enterprises. - Overhauls of infrastructure in the local area have a long way to go. In the vicinity of the mines, mining enterprises are compelled to engage themselves in construction of infrastructure such as schools and hospitals, upon demands of local residents instead of the primary responsible parties, namely, the central and local governments. - A Member Firm faces a serious problem for transportation of the manufactured goods, due to the dillydallying in repair of the public roads. - Both public road and transportation remain under-developed, while the population and the number of cars have grown. The traffic congestion in the Metropolitan Lima area has gotten chronic and more serious year after year. |
- It is requested that GOP expands and amplifies the local infrastructure. - It is requested that GOP expands and amplifies the local infrastructure. - It is requested that GOP expands and amplifies the local infrastructure. - It is requested that GOP executes investment necessary for development of the Metropolitan transportation (public transportation, and road network). |
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| (3) Resort to the Intimidating Violence against Mining Activity | - From time to time, some local residents resort to the intimidating violence such as barricades blocking the traffic or setting facilities afire. - The local residents in the mines vicinity demand hand back or review of the prices of the land properties previously sold, alleging they were sold at unduly low prices. This demand has aggravated the relationship between the mining enterprises and the local residents so that the mining enterprises experience difficulties, for example, in conducting the area survey. - The Chief Magistrate himself instigated the local residents into strikes on the ground of the demand against the mining enterprises (for taking environmental measures, and increasing the amount of contribution), resulting in outbreak of violence. The reporting Member Firm temporarily evacuated its employees at the cost of its operational hiatus. This fiasco amounts to the investment risk. |
- It is requested that GOP deals with a firm attitude against antisocial offenders based on laws. - It is requested that GOP protects the land ownership based on law. - It is requested that the local government takes the initiative in maintenance of security, with an adequate support of the police force. |
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| (4) Aggravated Public Security | - The number of crime cases has kept climbing, aggravating the public security. | - It is requested that GOP thoroughly implements its crime control measures. | |
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