Peru mining law triggers protests

Tacna and Moquegua provinces dispute division of taxes from local mines.

    The prime minister had previously said no vote would be held in congress until protests stopped [EPA]

    The current system levies taxes based on how much earth is moved at a mine, while the new law would shift the focus on how much mineral wealth is produced.

    Mining wealth

    Alan Garcia, Peru's president, who has seen his approval numbers drop following allegations of corruption in congress and perceptions he has not done enough to address widespread poverty, backed the bill.

    Yehude Simon, Peru's prime minister, had previously said congress would not hold a vote until protests were halted, but he appears to have backed down.

    The law has been most controversial in the south of Peru, where most of the mines are run by Southern Copper, one of the world's largest mining companies.

    Southern Copper operates the Cuajone mine and Ilo smelter in Moquegua and the Toquepala mine in Tacna.

    Moquegua expects to get 20 per cent of the revenues from Southern Copper this year, while 80 per cent is set to go to Tacna.

    Politicians in both provinces say they need the funds to develop basic services.

    About 40 per cent of Peruvians live in poverty and have seen little relief despite seven years of economic growth in the country, largely driven by booming mining exports.

    SOURCE: Agencies


    YOU MIGHT ALSO LIKE

    Interactive: Coding like a girl

    Interactive: Coding like a girl

    What obstacles do young women in technology have to overcome to achieve their dreams? Play this retro game to find out.

    Heron Gate mass eviction: 'We never expected this in Canada'

    Hundreds face mass eviction in Canada's capital

    About 150 homes in one of Ottawa's most diverse and affordable communities are expected to be torn down in coming months

    I remember the day … I designed the Nigerian flag

    I remember the day … I designed the Nigerian flag

    In 1959, a year before Nigeria's independence, a 23-year-old student helped colour the country's identity.