Fujimori’s mining push could spur unrest in Peru, study says

Peru’s President-elect Keiko Fujimori could face new protests in mining areas as her government tries to spearhead large copper and other mining projects that have been delayed for years, according to a study released Wednesday by the Observatory of Mining Conflicts in Peru.

Peru is the world’s third-largest copper producer. The country has about $64 billion in planned mining investments, many in poor rural regions where local communities say they have seen too few benefits and fear environmental damage.

The study said most of Peru’s main mining regions voted against Fujimori in the election, raising the risk of tensions if her government pushes projects forward.

Fujimori, who takes office on July 28, has promised to speed up mining investment, including with a fast-track approval system and tax incentives.

She has also said 40% of mining revenue should go to local people.

Peru’s ombudsman has said nearly 200 social conflicts are ongoing, including 64 linked to mining and other environmental disputes.

Southern Copper’s (NYSE: SCCO) $1.8 billion Tia Maria copper project, approved to start operating in 2027, could face opposition, according to David Velazco, environmental advocate from local nonprofit Fedepaz.

Velazco also said there could be possible conflict around Rio Blanco, a copper project from China’s Zijin.

Representatives for the firms did not immediately respond to requests for comment.

Mining accounts for more than 60% of Peru’s exports.

(Reporting by Marco Aquino; Writing by Kylie Madry; Editing by Daina Beth Solomon)