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mining in peru

New IFI video ' The World Bank and Mining in Peru: Alleviating Poverty '


In Peru, the World Bank supports mining projects that contradict its mission of poverty alleviation. These projects generate a series of conflicts with local communities that depend on the very resources that mining development uses, especially water.

Labor (FoE Peru) is leading the charge against World Bank-support of mining projects. In the case of the Yanacocha gold mine, there are reports of displaced communities, polluted waters, diversion of waterways, loss of agriculture areas and increasing migration to the city of Cajamarca.

In the case of the planned Quellaveco copper mine, the design of the project is such that it will divert the river Asana away from communities and change the mining pit into a lake. These plans carry a great risk of polluting water resources that are being used by surrounding villages and downstream valleys. Moreover, the extraction of underground water for the development of the mine endangers future agricultural projects in the region.

The most negative consequences of mining are shown in the case of the proposed Tambogrande mine, containing both gold and copper, in northern Peru. In the fifties, the World Bank financed the expansion of a dam in this area, in order to develop local agriculture. By local communities, this project is regarded a very succesful project. However, it is in danger because of a planned mine with characteristics as destructive as those of the Yanacocha and Quellaveco mines together.

The benefits of these mining projects for the poorest communities are almost zero. In general, the revenues of the mining sector do not come back to economic development of the country or the people. The mining companies do not take up their socio-environmental responsabilities. If the World Bank can not guarantee that the resources it spends on mining comply with its mission, it should invest these resources in other sectors. Agriculture is an example.

Needed: alternative investments

The IFC/World Bank should invest in projects that benefit the poorest communities in the mining areas of Tambogrande, Yanacocha and Quellaveco. A possible example for the Tambogrande area is an investment in an expansion of the World Bank financed irrigation project. Secondly, the Yanacocha mine should not be expanded, because the mine endangers the productive cattle base of the region. Lastly, the Bank should minimize the environmental and social costs of its intervention in Quellaveco. If it cannot guarantee this, it should withdraw its financing of these mining projects altogether.

More information?

Mining:

Mineral Policy Center: www.mineralpolicy.org
World Bank at www.worldbank.org

On Yanacocha:

FEROCAFENOP ferocafe@terra.com.pe
Center for International Environmental Law at www.ciel.org
Project Underground at www.moles.org
Oxfam US at www.oxfamamerica.org
Global Response at www.globalresponse.org
World Bank Group at www.ifc.org
Newmont at www.mining-technology.com

On Tambogrande :

Frente de Defensa de Tambogrande at www.geocities.com/frentetambogrande
Factor Tierra at www.geocities.com/factortierra
Vida y Agro at www.geocities.com/vidayagro

This foto was taken in the city of Tambogrande in February 2001, after the population decided it wanted to put an end to the mines and the trouble they cause. (Courtesy José Mendoza)

Contact: Doris Balvin at dorisbd@terra.com.pe , Janneke Bruil at .

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