Peruvian government has issued an order to suspend mining activities in the northern regions of the country after 13 mine workers were murdered by criminal gangs earlier in May.
Bloomberg reports that the victims belonged to a small contractor operation working for the gold miner Minera Poderosa. At least 39 workers have been killed in recent years in the gold-rich area of Pataz. Violence has continued in the region even after a state of emergency was declared more than a year ago.
The government has enacted the total mining ban in Pataz last Friday. It will impact both formal and artisanal mining operations.
The central bank of Peru estimates that companies will lose about 60 000 oz of production in the next 30 days. The most impacted company will be Minera Poderosa, which operates a major gold mine in the area.
Peru’s mining industry association SNMPE has criticized the government’s decision to ban all mining activities, saying only illegal operations should have been shut down. The decision “reflects the government’s lack of understanding of the complexities of developing mining activities and the environmental, operational and social risks involved in halting operations for 30 days,” Bloomberg quoted the industry group as saying.
Theodor Lisovoy, Managing Editor, Rough&Polished
