2576 The outstanding sustained growth of the Peruvian economy in the 21st century was driven by a commodities boom (copper, gold), sound macroeconomic policies, and increased domestic demand, transforming the until recently deemed as failed country into one of Latin America’s top-performing emerging markets. But, despite remarkable economic growth, no less than 20% of the population lives under poverty conditions, with significant regional fluctuations. At least 70% of the workforce operate outside formal regulations, in the so-called informal economy; rising criminality figures are a major concern. All these are signs of fragility. The Peruvian copper portfolio includes Tía María (Arequipa, Southern Peru), Zafranal (Arequipa, Teck Resources), Pampa de Pongo (Arequipa, Jinzhao Mining), Trapiche (Apurímac, Molle Verde). Ccoroccohuayco and Sulfobamba may not begin production anytime soon, this is the point where resource conflicts, heavily rooted in the historic lack of state presence in rural areas and a dysfunctional or non-existing relation between the political and economic elite and the ordinary citizen is a factor to be reckoned with for future mining projects. Some of the lessons learnt in the social field, over the period under review, are that mining requires a long-term proactive approach prioritizing, from an early stage, local community engagement, environmental stewardship, and transparent governance, for the sustainable development discourse to be filled with content. But all of this is no guarantee for success; some opposition, disguised as staunch defence of the rights of humble peasants and communities, against the almighty mining company, may be ideologically- or profitseeking motivated, each case has to be dealt with carefully. At the micro level, there can be no doubt trust is a fragile virtue, it has to be nurtured and looked after permanently. At the macro level, and broadly speaking, the loss of public trust stems from and is intertwined with political instability and widespread corruption; critically low levels have been reached, characterized by deep-seated disillusionment with democratic institutions, widespread corruption, and extreme political volatility. Corruption was never absent from public life, but the sheer fact that so many past presidents as well as many sitting and former member of congress are implicated, points out to an institutionalised practice, enshrined in the political system, as epitomised by the fragmentation of political parties. A weak and fragmented multi-party system means that, in practice, politics is carried out without political parties, in the absence of sound organisations with an ideology, parties became personalised electoral vehicles for their generous donors/sponsors. High candidate turnover, and lack of party discipline are the basic ingredients of chronic instability. Peru holds one of the largest copper reserves in the world, but commodity booms never last forever; consequently, given the present level of prices, it would be in the country’s best interest to expand production by means of new operations. This is the point when we have to look back again, previous windfall profits were not invested in health, education and infrastructure, large sums of money are punctually deposited in the accounts of local and regional governments; but, in the absence of sound investment projects, they sit idle. Peasants living close-by mining projects and operations, and their authorities never get to see their lot improved, as preached in the antimining gospel; they turn instead to the mining company for tangible results and deeds, not words. Mining rent distribution ought to change. Although copper is not in such short supply as rare earths, and is not bound for export controls, large copper producers have gained importance as trading partners, but under the present set of growing geopolitical tensions, disruptions and restrictions to flows of critical minerals are not just a theoretical concern, are a scenario to be considered by corporate and government strategists alike. Governments all over the world are intensifying their efforts to secure mineral supplies through a variety of schemes. The renewed quest for copper is not restricted to the search for new deposits, old waste dumps and abandoned tailings deposits are excellent business proposals these days. But the majority of them are considered environmental liabilities by the present legislation, to lay value on these resources, a promotional new legislation would be required. As a rule of thumb, world-class mineral resources attract world-class
RkJQdWJsaXNoZXIy MTM0Mzk2