Peru Kicks Out Canadian Mining Company

Earlier this summer, an anti-mining Indigenous movement in Peru successfully ousted a Canadian mining company from their territory. “In spite of government repression, if the people decide to bring the fight to the bitter end, it is possible to resist the pressure of mining and oil companies,” Peruvian activist and journalist Yasser Gómez told The Dominion.

The David and Goliath scenario of this anti-mining uprising highlights the vast economic inequality that has beset Peru. The country’s economy has been booming for the past decade, with a seven per cent growth expected this year—one of the highest growth rates internationally. Sixty-five per cent of the country’s export income comes from the mining industry, and investors are expected to spend over $40 billion in the next 10 years on mining operations.

Yet this growth has not benefited a large percentage of the population. The poverty rate in Peru is just over 31 per cent; in the countryside, two in three people live under the poverty line. Today, there are over 200 communities organized against mining across Peru.

On June 5, left-leaning presidential candidate Ollanta Humala defeated right winger Keiko Fujimori, the daughter of ex-president and human rights violator Alberto Fujimori. Humala, who won resounding support in the poor countryside, promised to redistribute wealth by increasing taxes on the lucrative mining industry.

But another political force, from the grassroots, may end up being a powerful force of change under Humala.

In May and June of this year, hundreds of local residents in Puno organized road blockades, strikes and protests to demand that the government rescind a concession to the Vancouver-based Bear Creek Mining Corporation. Activists also called for an end to future mining concessions in their area, due to the industry’s impact on the environment.

According to Bear Creek, at the time of the protests the company had already invested some $25 million in the mine. Company Director Andrew Swarthout said the mining would not impact on Lake Titicaca (a massive fresh water lake shared by Bolivia and Peru) and would create approximately 1,000 jobs. But local residents were not convinced.