Mining sector and populations waiting for the next step

After a first day in which most of the indices in the Lima Stock Exchange (BVL) fell due to the uncertainty around the management of mining policies by the Executive, tranquility reached the Lima stock market with 10 sectors on the rise, including mining, and only three slowed down. However, the situation is not clear both for investors, who already had a successful first meeting with the Presidency of the Council of Ministers (PCM), and for the population, especially that of Ayacucho, who are still waiting for a north that protects its headwaters of basin. From the Ministry of Energy and Mines (Minem) the exit continues to be total, especially for the second group mentioned.

At five o’clock in the afternoon, the general index of the square marked an advance of 0.78%, while the selective index added 0.77% in its closing valuation. Among them, the mining index that obtained, contrary to those predicted from other fronts, the best performance of the day: an advance of 1.62%. However, this Tuesday did not mean better progress for the shares of Hochschild, owner of the Pallancata and Inmaculada mines, involved in the process of closing the mines in Ayacucho, as they registered a fall of 4.51%, waiting for more official signals to take flight. And its two mines have relatively short licenses. Today the meetings between the Executive and the representatives of the SNMPE will continue.

For Esan associate professor Jorge Guillén, the negative correlation in the international market between the high cycle of commodities, such as copper, and mining stocks is surprising. This concerns an uncertainty that must be elucidated as soon as possible in the eyes of all the parties involved: population, companies and the State.

“We must end this uncertainty through the due process of environmental control, without affecting the parties involved in the mining investment. Avoid slowing down these processes when we barely have a slight recovery in GDP, because, if we continue under these conditions, we will have growth like that of PPK. A time when we did nothing, there was a lot of uncertainty between Congress and the Executive, mining blockades, uncovering of corruption by the ‘Construction Club’ and Odebrecht ”, said the expert.

Across the basin

For the citizens of the province of Parinacochas, especially those of Coracora, things are not clearer. Willy Contreras, advisor to the Committee to Fight Mine Pollution in Ayacucho, still demands that the Executive take responsibility for compliance with the minutes signed with them on November 19. According to the leader, some 50,000 agricultural producers in Parinacochas, Páucar de Sara Sara and Lucanas have been affected by the passing of poisonous tailings.

Multiple reports issued by the ANA and Diresa acknowledge the presence of metals above the permissible limit for human consumption in the area of ​​influence of Pallancata, Breapampa, Inmaculada and Apumayo. In the latter, for example, contamination was determined in the streams of Auquiato and Huamanoma, among a number of other offenses.

In addition, Contreras states that, during an official visit to the city of Puquio, under the management of former president Francisco Sagasti, former Minem minister Jaime Gálvez pledged with them to withdraw all mining companies that operate on the headwaters of the basin.

“The last agreement we had with the State was on January 27 at a table entitled ‘Mining in the head of the basin’, in which the former Minister of Energy and Mines was present. He, like previous government officials, signed an agreement with us to remove the mining companies from the headwaters. This is nothing new ”, remarked the leader.

Mining in Ayacucho: a pending agenda

During the presentation of the public budget for the year 2022, Minister Eduardo González assured that the sector collects 13% of the participation in the economy. “We are one of those who contribute the most to the economic activity of Peru,” he said.

To date, 82 supervision actions have been carried out against the 4 mining units located in Ayacucho, of which many have ended in sanctions, OEFA reported.

On September 7, Senace issued Directorial Order No. 00184-2021-SENACE-PE / DEAR and Report No. 00610-2021-SENACE-PE / DEAR, in which it decided to declare the admissibility of the second modification of the Study of Inmaculada’s Environmental Impact.

The word

Eduardo González Toro, Minister of Energy and Mines

“Community, company and State. All together and united to advance the development of the country. The highly competitive sector promotes the efficient and sustainable development of the exploitation of natural resources ”.