Mining, development and corporate-community conflicts in Peru

Abstract

Peru has been the largest gold producer in Latin America since 1996. This is mainly attributable to the open-pit gold mines in the northern regions of Ancash, Cajamarca and La Libertad, which are managed by Barrick Gold Corporation and Newmont Mining Corporation. The expansion of these large-scale mining projects has engendered social protests and conflicts that, in a context of weak institutions, have developed with little oversight from the central government. In some cases, corporate–community conflicts have driven mining corporations towards more responsible management of natural resources. For example, in some remote areas, the mining industry has filled the gap left by the State and has promoted sustainable socio-economic development through public–private partnerships. However, evidence indicates that an enhanced democratic framework with more attentive public management of natural resources is needed before such best practices may be established as the norm rather than the exception. Sustainable mining goes hand-in-hand with good governance.