Mining and development in the Andean Region. Is it true that mining companies give people jobs in the places where they work? Where is it, this is temporary work. For example, 20 people are involved in the intelligence phase. The installation phase gives rise to the protection of jobs, drivers, during cleaning, road construction. But this is not the same in the work associated with the installation of the mine in its technical aspects; For example, 3,000 Chileans worked in Antamine. And when we enter the operation phase, it is even worse. Everything is done with modern technology and qualified staff. No jobs are distributed to local residents. Mine generates poverty belts around its periphery. What percentage of royalties from mining goes to communities?
This takes place in the territorial okrug, where the community is registered by administrative procedure. Royalty extraction accounts for 20% of the income tax that the mining industry must pay. Of this percentage, 20% go to the district, 20% to the province, 20% to the region and the remaining 40% to the state. But the government has been a debtor of duty since 1992. The Fujimori government provided tax incentives that included a fee. If the mining industry reinvests its reserves, it does not pay royalties on production. What are some known cases of board evasion?
In recent years, the mining company was supposed to pay royalties in the amount of $ 10 million, but they reinvested in the amount of 12 million, so the state was debtor in the amount of 2 million, which will cost over the next year. BHP Tintaya, a multinational company last year, paid $ 3.50 for the entire province of Espinar (Cuzco). What about the concept of social responsibility of mining companies? This is the idea that the mining industry should become a springboard for the development of the region. Realize work, live in good harmony with neighboring communities. But at present they only maintain their image.
After privatization, Doe Run increased pollution levels, but quickly planted trees and donated to the population; therefore they do not protest. They call it social agreement. Their brand image is safe. Are communities aware of environmental impacts? Technically, they do not have the opportunity to realize this, much less know their rights. They know that they are achieved at the level of production in livestock and agriculture. The control of the Ministry of Energy and mines in the regions is invalid, it is not. And who can develop control over mining companies? Commissioner for the Environment. And who pays the commissioner? An employee will never give bad information about his boss.
Alternative strategies for mining-based economies. One of the main problems of this transitional phase is that the state is regaining its presence in the areas of influence of mining and institutionalization, thus possessing a real ability to manage the social and environmental aspects of conflicts. This includes, for example, an analysis of the role played by various government departments involved in mining. The state does not fulfill its functions not only because of a lack of political will, but also because of a lack of skills, capabilities and tools.
Strengthening public administration related to mining is a crucial aspect for creating a new, balanced and independent governance structure. Only in this way will the Peruvian government bodies responsible for managing mining operations be able to restore public confidence and rely on fair actions. The evolution of the conflicts themselves indicates serious management problems and the lack of appropriate institutions capable of controlling activities. All institutions related to environmental and mine management do not have the ability or tools to change conflicts and turn them into opportunities.
In addition, recent conflicts, such as those in Kong and Espinar, should allow civil society organizations and institutions working with them to assess the situation and draw conclusions. It is important to take stock of the various strategies implemented. Are these strategies enough? Are they appropriate? What is their content? What mistakes are made and repeated? What self-criticism can be done? Are branched programs representative and legal?