Peru to increase public spending in mining regions to curb social conflicts

div classBodysc17zpet90 cdBBJodivpLIMA Reuters – Peru will increase public spending in mining regions in a bid to deescalate social conflicts that have impacted mining output, Finance Minister Oscar Graham said on Tuesday. p

pPeru is the worlds No. 2 copper producer and mining is a key source of tax revenue. pdivdivdiv classBodysc17zpet90 cdBBJodiv

pBut recent disputes between miners and local communities have forced two key copper mines to temporarily halt operations this year, accounting for a combined 1.5 of the countrys gross domestic product. p

p“Considering the issue of social conflicts we are going to pass a decentralized investment package in mining zones,” Graham said at the opening of a conference organized by Peruvian mining chamber SNMPE. He did not give a figure for the proposed public spending. p

pMining in Peru is concentrated in the historically impoverished Andean region. Local communities there, many of them indigenous, have long complained they have failed to benefit from the mineral riches. p

pLeftist President Pedro Castillo was elected last year with massive support in mining regions.p

pMMG Ltds Las Bambas copper mine suspended operations on April 20 after two local communities entered company property. Operations remain suspended. p

pSouthern Copper Corps Cuajone mine resumed operations this month after a 50day halt.p

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pp Reporting by Marcelo Rochabrun Editing by Alistair Bellp

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