An unreasonable trade-off: Indigenous livelihood & environmental health for economic growth in Peru.

Zuhruf Noor | October 20th, 2020

Conflicts concerning the management and control of natural resources are not something new among North American mining companies, as disputes have erupted globally. In countries like Peru, mining projects have provided little to nothing to benefit Peruvians’ lives and improve poverty.(1) In 2011, mining investments in Peru had increased by 50% compared to 2010.2 Because of the rise in mining exploitation, Peru has become the third preferred location for mining exploitation in the world, as well as the leading location in Latin America.(2)

The coasts of Peru and the Andes are replete with the world's top metals such as silver, gold and zinc, making it one of the richest mineral nations in the world. This has invited countless North American mining companies seeking to extract these metals, over the years. But at what cost? In the Apurimac region alone, mining concessions account for 58.8% of the land, whereas in Cajamarca, they cover 48%.3 However, these areas of land are heavily populated, since most Peruvians live in rural areas where metals are regularly extracted. As a result, there are conflicts between citizens and mining companies — in 2012 alone, 10 people were killed in anti-mining protests.(3) One of these deaths occurred after the construction of a multibillion-dollar gold mine, which citizens worried would leave the cattle-ranching and agricultural areas without water.(3)

Peru’s residents have been immensely impacted in multiple ways by North American mining companies. As the global recession a few years ago caused an increase in gold prices, the number of gold mines have grown, leading to environmental contamination and massive deforestation.(4) For instance, the region of Madre de Dios has been a victim of mercury contamination and deforestation. The damage was so vast that the government had to declare a health emergency, as 40% of the population surrounding the area had mercury poisoning.(4) This is the result of a method used to purify gold, which includes using mercury to separate gold from impurities with its leftovers evaporating into the atmosphere or ending up in the water. Repercussions include environmental damage and citizens’ decline in health. However, Canadian and American mining companies being in Peru have resulted in mixed reactions among the Indigenous communities. Some felt it provides livelihood, while others feel that their well-being is affected in the long run.

Although citizens’ health and the environment are suffering, the Peruvian government plays a role in the exploitation of Peru’s resources by large companies. Indigenous livelihood and environmental health are traded off for economic benefit, as the extraction of natural resources benefits the government. To what extent can or have the International community used International law and global governance, to dispute these dangerous developments? To what extent are Environmental and Human rights treaties holding these companies accountable? These are important questions that ought to be asked when assessing and reevaluating mining and capitalistic activities. The land is being offered to large mining corporations, in exchange for them being able to extract natural resources. As such, the government defends corporate interests, since mining in Peru is a significant asset to their economy.(4)

Such negligent endeavours have urged Indigenous communities in Peru to rise against the corrupt government that has enabled mining companies to exploit this region. Citizens from the Andes and the Peruvian Amazon have filed approximately eight lawsuits against the government, as the “prior consultation” law allowed them to do so.(6) The prior consultation law was formed in 2011, which gives Peruvians the right to weigh in on decisions that could impact their communities.(6) However, residents have stated that the government still does not properly consult them in regards to mining projects. Judges sided with citizens in six lawsuits, pointing to international law to annul the government from green-lighting mining projects.(6) Legal precedents give hope to Indigenous rights activists but alarm the mining industry. Pablo de la Flor, the executive director of Peru’s National Society of Mining, Petroleum and Energy, said “we’re watching the recent judicial rulings with deep worry”.(6)

The exploitation of resources by North American mining companies is a constant debate among Peruvians and others worldwide — some are with it and some are against it. This is due to the mining industry being a very complex system, involving Peruvian citizens, the environment, and the government. Environmental consequences were perhaps the most complicated, as mining operations by North American mining companies had resulted in glacier destruction, water contamination, and deforestation. Peruvians utilize their environment regularly, so it is a big part of their day-to-day lives. Therefore, they are directly affected by any impacts on their environment. Many agree that North American mining companies take advantage of Peru’s weak legal systems, as well as disrespect Peruvians’ human rights. Although there is a foreign policy that Canadian mining investments comply with international human rights treaties in locations where such firms operate, legal frameworks are still loosely followed. (5)

Endnotes

1. EarthRights Intern. "In Peru, Optimism in the Face of Natural Resource Exploitation." EarthRights International. Last modified September 15, 2010. https://earthrights.org/blog/in-peru-optimism-in-the-face-of-natural-resource-exploitation/.

2. Canadian Mining Journal Editor. "The 101 on Peruvian Mining." Canadian Mining Journal. Last modified February 1, 2012. https://www.canadianminingjournal.com/features/the-101-on-peruvian-mining/.

3. Cabitza, Mattia. "Peru Seeks to Build a New Relationship with Mining Companies." The Guardian. Last modified July 15, 2017. https://www.theguardian.com/global-development/2012/aug/08/peru-seeks-new-relationship-mining-companies.

4. Caparo, Zuleyma. "The Peruvian Mining Boom: Indigenous Struggle for Land and Livelihood." McGill Journal of Political Studies. Last modified April 9, 2019. https://mjps.ssmu.ca/2019/04/09/peru-mining-indigenous-stuggle/.

5. Hill, David. "Canadian Mining Doing Serious Environmental Harm, the IACHR is Told | David Hill." The Guardian. Last modified May 17, 2014. https://www.theguardian.com/environment/andes-to-the-amazon/2014/may/14/canadian-mining-serious-environmental-harm-iachr.

6. Cervantes, Maria. "Indigenous Groups in Peru Are Suing Government over Oil, Mining Plans - and Winning." CA. Last modified June 27, 2019. https://ca.reuters.com/article/idUSKCN1TS240.