Problems relating to Trade and Investment on Peru

 
22. Environmental pollution and waste disposal
Issue
Issue details
Requests
Reference
(1) Public Movement on Environmental Issues - The local residents (LRs)' movement has become active against exploration and development of mines based of their concern over the environment. In general the public knowledge is extremely limited about legislation on the mining development. Under the current legislation, owner of the mining right is solely responsible for obtaining the LRs' agreement on mining activities. There being public guidance on compensation, it takes much time for reaching agreement on the terms. LRs demand considerable compensation from the exploration stage, including the overhaul of infrastructure (construction of road, schools, hospitals, etc.). Generally, their demand is excessive. The situation is aggravated by willful NGO groups, local governmental concerns, and lawyers. Public security is seldom restored promptly by police, when the movement turns into violence. - It is requested that Peruvian Public Institutions will develop and strengthen educational campaign for LRs (as regards legislative system, etc.) by:
-- public declaration condemning willful NGO groups, local governmental concerns, and lawyers,
-- positive government involvement in prevention or resolution of disputes,
-- employ Canon Tax as special purpose tax into preservation and overhaul of the local environment to get the understanding of the concerned parties and
-- especially overhauls infrastructure on transport and communication.
  (Action)
- The Mining Royalty Act was introduced in June 2004 with the purpose to secure the revenue increase and to promote the local community in which mines are located.
- Since October 2011, Ministry of Energy and Mines has started Pasantia, an internship or an educational activity to enhance the local residents' appreciation of the modern mining industry.
- In November 2011, due to the residents' movements protesting against a large mining project in various Regions such as Apurimac, Cajamarca, Junin, Ancash, and Madre de Dios, etc. President Lerner resigned in December.
- In December 2011, GOP promulgated Law of Prior Consultation with Indigenous Peoples was promulgated. In April 2012, GOP promulgated implementing regulations for law of prior consultation with indigenous peoples.
- 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 to respond to the residents' protests around the mines.
- On 20 April 2012, President Humala, in response to the anti-mines movement surrounding the Conga Mines triggered by the water contamination problems, etc., stated that the government would proceed with the Conga Mines Development, while assuring that the company adheres to strict social, environmental and labour goals, by following the Independent International Environmental Auditors (IIEA) recommendation, namely, to build larger reservoirs, to preserve the two lakes, etc. and to adhere to the environmental and social recommendations made by IIEA.
- On 19 May 2012 at Xstrata's Tintaya copper mine in Espinar Province of the Cusco Region, the local residents protested against Xstrata, a Swiss firm, developer of the copper mine, demanding expanded scope of the royalty payment, and protesting that the rivers in the vicinity of the copper mine were contaminated. On 28 May, protests escalated, leading to the death of two protesters, while plural numbers of protesters were injured during clash with police. Government declared state of emergency for 30-days beginning from 29 May. In June, the protests demanding the raise in royalty at the copper mine turned into riots in Espinar Province of the Cusco Region. Minister Pulgar of Ministry of Environment representing the Government, reached agreement with the protesters after exchange of dialogues.
- On 20 August, Prime Minster Jimenez of the New Cabinet formed at the end of July touched upon: (1) national security and defence, (2) measures to calm protests through development of nationwide dialogues, (3) review of the relationship with the mining industry, and (4) renovating the citizens service and public policy in his inaugural policy speech.
- In December 2012, GOP promulgated law on establishment of Servicio Nacional de Certificacion Ambiental para las Inversiones Sostenibles (National Environmental Certification Examination Body (SENACE)), an independent organ.
(2) Rigid Environmental Inspections and Hefty Fines - In regard to the Mines Effluent Standard, the inspector in certain cases charges heavy fines by a rigorous application of the Effluent Standard, regardless of whether the mining activities do not take place now, excessive effluent value is due to the natural accumulation of heavy metals, or to accidental failures of equipment. - It is requested that GOP:
-- applies more flexibly the effluent standard inspection, and
-- clarifies the exact disposal of fines collected.
- DS-010-2010-MINAM
- DS-002-2008-MINAM
- DS-010-2011-MINAM

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