Perú-N-English Blog and Discussion Group

Insight: Peru provinces sit on cash from mines; discontent grows Reuters

2012-06-18T11:11:00.001-05:00

http://finance.yahoo.com/news/insight-peru-provinces-sit-cash-161649037.html LIMA (Reuters) - Peru's provincial governments are sitting on billions of dollars in mining tax revenue earmarked for new roads, schools and water projects - an institutional failure contributing to anti-mining protests nationwide. http://finance.yahoo.com/news/insight-peru-provinces-sit-cash-161649037.html
Regional and local governments had 9.5 billion soles ($3.5 billion) from natural resources taxes collected over the last decade lying dormant in bank accounts as of December, according to a Reuters analysis of finance ministry data. The swollen coffers represent a fortune in poor provinces where the poverty rate is around 60 percent despite Peru's decade-long boom fueled by minerals exports to a rising China.

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Most of the receipts come from mining, though a fraction come from energy or commercial fishing companies.
The central government blames a lack of administrative capacity in the provinces - a polite way of saying incompetence - for the spending shortfalls that contribute to a cauldron of discontent in the hinterlands and feed anti-mining sentiment.
Congress passed a law in 2001 requiring local governments to spend their income from mining taxes on infrastructure projects. It was part of a broader push to decentralize decision-making after centuries of concentrating power in the capital. But failing to comply with the law doesn't carry penalties for rural officials.
Under rules designed to let provinces share in Peru's resource wealth, the central government keeps half of the cash from income taxes it levies on mining companies and distributes the rest, known as the mining canon, to local governments. Peru's corporate income tax rate is 30 percent.
Funds from the canon could help defuse hundreds of conflicts in Peru over the spoils of natural resources. The disputes threaten to halt some of the $53 billion in mining projects planned by the private sector. Mediating the conflicts - there is usually at least one violent protest a month, with several others brewing - has become President Ollanta Humala's biggest challenge.
But none of the 16 regions and local governments within them that receive the mining canon have spent all of their funds in recent years, finance ministry data shows. On average, less than half of the money available to spend in 2011 was spent on sorely needed projects like water, sewage and electricity systems.
Even as the national poverty rate has fallen by half since 2004 to 27.8 percent, many rural communities near mines have been left behind. Frustrated residents often turn against mining companies, instead of local politicians, to vent their woes. Others block roads to demand more tax revenues and voice fears that mines will soak up scarce water supplies and pollute.
"In the zones that receive the canon, people see a ton of money coming in and say 'at the end of the day, this doesn't do anything for me,'" said Carlos Casas, a former deputy finance minister. "This contributes to greater social unrest ... the money is there, but what is missing are capable players in the regional and local governments."
Failure to spend the tax revenue puts greater pressure on Humala to fulfill key campaign promises like improving wealth distribution, slashing extreme poverty, and calming conflicts.
One dispute the government has struggled to manage is over U.S.-based Newmont Mining's $4.8 billion Conga gold and copper project. Work on the mine in the northern region of Cajamarca has been on hold since November as townspeople say it would hurt water supplies.

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Conga is the largest mining investment ever proposed in Peru, the world's second largest copper, silver and zinc producer and the No. 6 gold producer, and Humala is committed to seeing it built to keep the economy humming at 6 percent a year.
His government blames the protests on left-wing extremists, while public prosecutors have opened an investigation into the alleged use of public funds in anti-mining demonstrations by Gregorio Santos, the region's president.
Santos, who has denied the allegations, said on Monday he spends the canon money wisely. But he spent only 34 percent of the region's canon on infrastructure last year, according to data from the finance ministry.
"Contracts with miners and their contributions must be renegotiated," Santos said in Congress this week. "We need to teach companies what real social responsibility and economic inclusion is - not like today's irrational profiteering."
To shell out money faster, the government is considering a plan that would ramp up spending on new infrastructure projects by paying for them using future mining tax receipts. It is also trying to define how to give regions without mines access to the mining canon.
"We have to see how we can move towards a better use of these resources. They tend to be locked away in bank accounts and not used on projects the country needs," Finance Minister Luis Miguel Castilla said recently.http://articles.chicagotribune.com/2012-06-14/business/sns-rt-us-peru-mining-taxesbre85d14z-20120614_1_mining-peru-local-governments

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Insight: Peru provinces sit on cash from mines

2012-06-15T17:56:00.000-05:00

Insight: Peru provinces sit on cash from mines

discontent grows

(ENRIQUE CASTRO-MENDIVIL,…)

June 14, 2012|Patricia Velez | Reuters

LIMA (Reuters) - Peru's provincial governments are sitting on billions of dollars in mining tax revenue earmarked for new roads, schools and water projects - an institutional failure contributing to anti-mining protests nationwide.
Regional and local governments had 9.5 billion soles ($3.5 billion) from natural resources taxes collected over the last decade lying dormant in bank accounts as of December, according to a Reuters analysis of finance ministry data. The swollen coffers represent a fortune in poor provinces where the poverty rate is around 60 percent despite Peru's decade-long boom fueled by minerals exports to a rising China.

Is Peruvian Airlines the first casualty of Humala's nationalization plans?

2011-08-22T07:41:00.013-05:00

Peruvian Airlines: suspension is baseless

from Peru This Week

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PNE Opinion:

This is a back door attempt to begin the nationalization of air travel in Perú. A 90 day suspension for Peruvian Airlines could put them out of business or at least set the course for that to happen in the near future. These Humala knot-heads didn’t learn the lessons of 1999, when the national airline Aero Peru went bankrupt? It not only went bankrupt but had a constant string of maintenance, safety and customer services issues. National airlines around the world have similar results. From swearing in on the out-of-force 1979 constitution, to stopping the eradication program of the illegal crops of coca growers, to every socialist program he favors, to creating a national airline, Humala has given every indication that he is a big step backward to past failures. Considering the economy of the world in these times, that is a particularly ignorant strategy right now. I'm still waiting to hear an original thought from this president.

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Peru: an airline at all losses

What is it about airlines? Like football teams, they can be trophy investments, holding a value beyond their balance sheet.

Despite all the woes in the global airline sector, Ollanta Humala, Peru’s new president, wants to create a national carrier with the participation of private investors.

Then there is budget carrier Peruvian Airlines, which has increased its share of six local routes rapidly since it launched in 2007. Mr Humala’s administration suspended Peruvian Airlines’ operations on Thursday for 90 days for not meeting safety standards, leaving hundreds of passengers to find seats with Star or Taca (tickets will be reassigned subject to availability, as long as they offer the same routes at no extra cost).

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Aero Perú had suffered two fatal events, Flight 772 near Juliaca in 1988, and Flight 603 in 1996. The second incident contributed to the airline's demise. Before the take-off of Flight 603, the maintenance crew erroneously left masking tape over the sensitive static ports of the plane. The crew thus received contradicting and false flight data, particularly from the altimeter, after take-off. This prevented even ground radar from successfully assisting the flight crew during the emergency, and ultimately led to the plane's crash into the Pacific Ocean on October 2, 1996. This was a severe loss to the airline, from which it could never recover.

After the accident, Aeroperú changed the number of its evening Miami-Lima-Santiago Boeing 757 service to Flight 691. The Flight 603 incident contributed to the eventual demise of Aeroperú, which was already plagued with financial and management difficulties. The airline folded in 1999.

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Humala in Hiding

2011-08-11T14:56:00.017-05:00

Peru's Humala unveils new governing style: silence
(Reuters) Two weeks into his five-year term, Peru's President Ollanta Humala has retreated from the public spotlight, showing an odd reluctance to discuss policies, scandals or even his plans for running the country.

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PNE Opinion:

Humala, all campaign talk? The campaigner with no plan on how to fulfill the absurd promises he made? That would be my guess for a man who has an empty leadership and accomplishment résumé. Please ask yourself what has Humala ever done? Be in the military? Be a failed coup leader against democracy? Be retired? His only public display so far as president is to backtrack on his promise to accept the standing 1993 Peruvian Constitution and not to try to change it. Now he doesn’t want the press to be given access to him nor his governing plans? Nor his cabinet!? Humala is not and never was qualified by any measurable standard to be president of Perú. I think we may be seeing the first signs of big trouble ahead. Of course those signs were visible during Humala’s campaign. But now we have the real deal. And, that is even more frightening. “No comment and no access” is not an acceptable stance for democratic leadership. Humala promised transparency. Hmmm… Where have I heard that one before!!!

Nice that Humala cowers and escapes media scrutiny while Constitutional Law Professor and Congresswoman Martha Chávez (who courageously and rightfully defended the democracy of the Peruvian people by calling Humala out, for swapping the constitutions, during his inauguration and lost her congressional seat for 120 days at Humala’s hands because of it) faces up to the press and shows that she is a substantial, intelligent and confident woman to be admired. Punto Final scumbag Nicolás Lúcar sent his attack “perra” Julianna Oxenford to berate and excoriate Martha Chávez in the guise of an interview that turnout to be nothing more than a third rate verbal attack. La perra Julianna Oxenford’s interruptive, aggressive and interrogative behavior, along with scoffing laugher and ill-manners, complete with hand gestures normally reserved for scolding small children was over-the-top brutishness. She even insinuates that Martha is mentally unstable when it is obvious that la perra Julianna may be the one who needs psychoanalysis. Punto Final even used the black and white video technique normally reserved for criminal interviews.

Not surprisingly Martha showed Julianna to be the pathetic Humala sympathizer and apologist that she is. Martha calmly and agilely with grace shut that perra Julianna Oxenford down at every turn. The ambush concluded with Martha gracefully telling the perra Julianna Oxenford, that if she wanted a debate, she would be happy to debate her. But she should have been honest and ethical enough to ask for that.

After the so-called interview the lowlife Nicolás Lúcar had the stupidity and arrogance to say that Martha Chávez had made Perú look like savages to the world. Nicolás Lúcar you are still the dishonest lying Humala supporter you were through his entire campaign. Stop presenting yourself as an objective journalist and declare your political partiality before making your asinine commentary! You are definitely a media, Third World monkey. And so is anyone who would pull a moronic stunt like swapping the "old" out of force Peruvian constitution for the actual in force Peruvian constitution during a televised presidential inaugural event without pre-announcing any intention to do so. That is a slap in the face of the democratic process and the citizens of Perú. Nicolás Lúcar thinks Martha Chávez makes Perú look like savages to the World? Are you kidding me!?

Ollanta Humala

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Ozzie Guillen Challenges Sean Penn to Move to Venezuela

2011-08-05T16:31:00.000-05:00

Okay, this is not about Perú, but it is about Hugo Chavez. A man President Humala admires. And it calls attention to the hypocrisy of these activist lamebrain elitist liberals. Move to Venezuela for two years Sean Penn, if you don't mind being shot at! :-)

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Suspension of Free Speech

2011-08-03T12:40:00.007-05:00

Martha Chávez: Courageous and Correct

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PNE Opinion:

It appears the suspension of democracy and inequality of justice are already surfacing and readily accepted by the Humala Administration as business as usual. Congressperson Martha Chávez has been discordantly suspended for 120 days because she dare protest the unannounced switching of the old 1979 constitution (which has no protection of private property rights), for the 1993 constitution currently in force, during Huamla’s inauguration. This from Humala who swore on a Bible and in writing during his campaign that he would not change the current constitution.

Humala's first vice-president Marisol Espinoza (the one who talks out of the side of her mouth), on Primera Noticia TV news this morning, actually justified Humala’s position by saying that unequal application of laws is in every administration. She said this while explaining why congressperson Martha Chávez was harshly and inexplicably suspended for 120 days. While Alexis Humala (Ollanta’s brother) was investigated in closed door meetings in which the findings of the so called investigation will not be publicly disclosed. Then he was simply allowed to apologize for taking a secret trip to Russia and allegedly presenting himself as representative of his brother’s government in energy dealings with the Russian Government. When questioned about this inequity, by Álvarez Rodrich of Primer Noticia, first vice-president Marisol Espinoza said it was common for the party in power to discriminate in favor of their side. When reminded that no such discrimination occurred during the previous administration she had no answer.

Humala deliberately and boorishly created the classless cheap shot “conflict of the constitutions” during his inauguration, challenged by constitutional lawyer and congressperson Martha Chávez, by not prudently and democratically presenting this change in the swearing in ceremony to congressional officials before the inauguration. Thereby allowing for input and debate before the ceremony took place.

In my estimation a gracious democratic leader would reject such harsh punishment of a sitting congressperson for simply protesting verbally a controversy purposely created to evoke such a reaction. I suppose it should have been obvious that this president does not fully comprehend freedom of speech when during his campaign he swore he would restore free speech rights that were never missing during Garcia’s presidency. They were never missing until now! A disturbing beginning.

For me it is personal insights like this into Humala’s thinking, telling much more than gratuitous appointments to appease the stock markets, that show how future policies decisions will be made. Indecorous presidents are not only annoyingly worrisome but dangerous.

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Afterthought:

Don’t you think a new president taking office would have more meaningful issues and concerns, that are impacting the daily lives of people, rather than the distraction of the inconsequential and provocative juvenile stunt of swearing in on an out of force constitution, that is inferior in so many ways to the current in force constitution? It just strikes me as stunningly undignified, ignorant and ill-mannered. As were the behaviors and actions of the vice-presidents at the inaugural ceremony. It’s all so petty and extremely disappointing comportment from people at this high level of government.

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Hugo Chavez Workout Video

2011-08-01T20:57:00.001-05:00

Should Richard Simmons be worried?

Oh! My! Sweaty Men!

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Humala evokes the 1979 military constitution in his oath

2011-07-28T12:56:00.008-05:00


Off to a radical start.

Humala evokes the 1979 military constitution in his oath. Lima-Ollanta Humala, a leftist roots retired military, on Thursday became the new president of Peru, a country that boasts one of the highest growth rates in the world but still carries a large social deficit.Humala ruled Peru for the next five years after swearing before Congress with Bible in hand and before the eyes of 10 Latin American presidents and the Prince of Spain.During his oath, Humala evoked the 1979 Constitution of a military government, not the current 1993 as amended by former President Alberto Fujimori.This provoked a strong protest Fujimori legislators shouting "Let him go" just minutes after he placed the presidential sash.The new president, which dramatically slowed their nationalist ideas throughout the campaign that led to the presidency, succeeds Alan Garcia, who completed his second term after having ruled Peru between 1985 and 1990.

English Translation of Humala’s Inauguration Speech

In a public declaration signed a few weeks before the second round, Humala promised to respect the constitution and freedom of the press. Both the ministers of defense and the interior will be civilians. He will defend the separation of powers. His main thrust will be policies with sustained growth and inclusion: economic, social, ethnic, geographic and cultural, especially of the most poor. In this thrust he will have the support of Toledo who had made the redistribution of the benefits a key part of his program.

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Consider Humala's promise on the inaugural dais to abide by the national constitution—not the current one, but the prior version, drafted in 1979. The reference was a swipe at the 1993 charter written during the tenure of AlbertoFujimori, the divisive dictator who closed congress and ruled with an iron hand.Humala has a point. Though drafted by legislators and approved by a national referendum, the current constitution was heavily influenced by Fujimori. (His opponents boycotted the election of the constituent assembly that wrote the charter). But it also sanctioned economic liberties—privatization and rolling back state interference in the market—that untethered the economy and transformed Peru from a chronically dysfunctional nation into a model for Latin America.The result has been the most spectacular jag of growth in the region. Surfing the commodities boom, Peru's economy has expanded for the last 12 consecutive years, with low inflation and nearly $47 billion in international reserves. With jobs in mining and construction on the rise and better social spending, the number of Peruvians living in poverty has dropped from nearly half to 31percent, in a decade. And another $42 billion in foreign investments are reckoned to be in the works in mining alone.

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PNE Opinion:

Humala signed a promise not to change the constitution. So why the deliberate and unnecessary agitation? Unless he plans on breaking that promise. Humala also outlined a socialist redistribution plan that will definitely hurt small businesses, infrastructure projects and lose jobs. Humala's plan would make even Barack Obama blush. Seems Humala is interested in starting a political war and economic upheaval rather than governing through constitutional incremental change. Although, I must admit, the stick in the eye approach to governing would seem appropriate for a man of Humala’s limited abilities.

And the condescending and dismissive treatment, by the TV news creeps (Nicolás Lúcar, etc.), of Congresswoman Martha Chavez came off as astoundingly chauvinistic. I guess Perú media has not moved past adolescence. They still have a lot of pimples!

Looks like we are off to a radical start. Pray for us!

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Alejandro Toledo: "Without us, Humala cannot do anything."

2011-07-25T11:50:00.006-05:00

Alejandro Toledo: "Without us, Humala cannot do anything." Toledo visibly angry with Humala’s rejection, blames other’s (not himself) for his miserable failure to attract voters. Toledo defiles the honorable and amicable PPK with the label of “traitor.” Toledo was used and made a fool and now he is throwing a tantrum illustrative of his boorish manner and mentality. It is a shame to see a divide develop between these two “anything to win” egomaniacs, because Toledo and Humala deserve each other.

Nicolás Lúcar picking winners on Punto Final?

Why would a person lacking integrity who makes a pact with another person lacking integrity expect that pact to be fulfilled with integrity? Narcissistically fueled stupidity perhaps? Neither Humala nor Toledo have remained true to their original representations or principle beliefs. Humala, for pure political gain, changed campaign positions more than the deceptive chameleon changes colors. And Toledo (whom Humala said should be overthrown for being anti-democratic), for pure political gain, backed away from every dire warning he espoused about the extreme dangers of a Humala presidency. Liars expecting liars to keep promises is always horrifyingly amusing when it pertains to people who can make life altering decisions for millions.

These two ethically challenged men teamed up to defeat the honest, consistent, coherent and intelligent campaign message of Keiko Fujimori and class-act supporters Luis Castañeda and Pedro Pablo Kuczynski. It ended up a case of two conniving, despicable and coreless personalities winning the votes of the gullible and ignorant to defeat quality leadership appealing to the intelligent and informed percentage of Perú’s population. Now we have a president-elect who even the most optimistic observers say, “We must wait and see how he governs.” This rather than a president-elect that would have immediately moved the economy forward with the doubtless confidence and support of the producers of Perú’s recent and fabulous economic advancement and poverty reducing success story. A disappointing situation indeed.

But to somehow act surprised or indignant, at the acrimonious dealings between two scoundrels, as (unproclaimed Humala supporter) Nicolás Lúcar did in his highly prejudiced presentation on the Punto Final broadcast last night (July 24, 2011), is laughing in the face ludicrous. Nicolás Lúcar frame this back-stabling political dust-up as purely Toledo’s ill-mannered and unrealistic expectations of Humala. He did this without the slightest mention that Humala used Toledo (whose campaign plan was completely at odds with his own) on the campaign trail and stage to disingenuously siphon off Toledo’s voters with promises of political inclusion and influence. That's why Toledo is understandably angry about Humala's now dismissive attitude toward Toledo's "Perú Posible" party. I certainly have no problem with choosing sides, but I have a large disdain for ideological partisans presenting themselves as unbiased journalists. Maybe in the end Ollanta Humala will turnout to be okay, but I don’t think playing Russian Roulette with Perú’s future is the optimal choice.

OPINION BY PNE

Also read related post, "Strange Bedfellows Indeed"

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Time To Support Perú, But ...

2011-07-21T09:35:00.005-05:00

It is time to support Peru, but observers should keep an eye open to authoritarian temptation

We have yet to pass the start-line and it's a long way to the finish.

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The following are excepts from Carlos E. Ponce’s Article "Is Ollanta Humala the New Autocrat Apprentice?" I think it is a good read for anyone interested in Perú’s future direction. I like Humala’s opening moves, he appears to be distancing himself from his lifelong authoritarian radicalism, but he is not even president yet and it is much too early to “write a blank check.” It is difficult to derive a history of leadership abilities and integrity from a man who is in every sense a wild card.

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He (Humala) comes from the military and he has no government, business, academic or administrative background, so for him the democratic game will be really hard to play. Humala will try for sure to change the constitution in two years to seek for social changes (maybe reelection) and he will be also tempted to reduce the influence of other political parties, including Toledo’s, in his administration. He will have the inclination, as Alberto Fujimori did, to instigate a confrontation with the Parliament to gain control.

Civil society will be a key factor in controlling Humala’s behavior, but it is also time to motivate youth movements to participate in politics and in civil society organizations. Youth will continue to be a countering force in Venezuela and other Alba Countries. Young people are also a critical force in countries on the fence between the two realities, and they will be important to keeping Peru free and democratic and force Humala to keep his promises of a true democratic ruling. Youth movements can become a force for positive change—a voice to hold Humala to his promise that he wants more freedom and democracy, not less.

The Peruvian elected president had a meeting with President Barack Obama and promised to respect free trade, now he will have the challenge to fulfill his words. But his actions distanced himself of such promises when he also visited the long lasting tyranny of the region. When Ollanta Humala made a suppressive trip to Habana to meet Raúl and Fidel Castro and Hugo Chávez he is just mapping his way to a new autocracy in the Americas. He is supporting tyranny and autocracy in Cuba and Venezuela. He is just trying to play a game of power, but it is not a good game for an apprentice.

It is time to support Peru, but not with a blank check. Observers should keep an eye open to authoritarian temptation in and leader’s appetites to seek unending presidential terms or to follow the example of Cristina and the late Nestor Kirchner of Argentina. His trip to Cuba is a strong message of the new times for Peru.

When Gambling, "Keep Your Eyes On The Cards."

CLICK HERE FOR REACTIONS FROM INVESTORS AND FINANCIAL ANALYSTS TO HUMALA'S PICKS.

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Impressing Investors

2011-07-19T11:49:00.003-05:00

Julio Velarde to remain as head of Peru's Central Reserve Bank

from living in Peru

Peru’s President-elect Ollanta Humala has stated that the head of the country’s Central Reserve Bank, Julio Velarde, will remain in office. Current President Alan Garcia commented by saying it was a “wise decision” that would give Peru "immediate trust in international markets."

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PNE Opinion:

This is a good decision. It points to a more measured approach, rather than the radical rhetoric of Humala’s past campaigning. As for Congressman Javier Diez Canseco’s comment, that this move was only to reassure investors, reassuring investors is just fine with me. As will be any future decisions by Huamla that show deference to the investment and business community. I don’t care what the reason is, what I care about is that Humala’s agenda remains controlled by real world circumstances and ramifications. If at any time that changes it will negatively impact, not only my opinion of Humala’s leadership, but also the opinion of the world investment community. This is a hopeful sign that Humala not only understands that fact, but that he is willing to yield to it. The only path to opportunity and a prosperous future, for all residents of Perú, is through continued foreign investment.

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Tripping in Russia

2011-07-16T18:47:00.001-05:00

Brother of Peru's president-elect speaks about controversial trip

"Ollanta had no knowledge of the trip. Even I only found out about the agenda when I arrived in Europe. I think he only found out when the news broke in the media," the younger Humala said.

He said that he deeply regretted not consulting with Humala's transition team before making the trip. "I acted in an imprudent manner, it's true, but there was nothing under-the-table or unethical," said Alexis.
From Living in Peru

Peru's Humala falls in poll before inauguration

His rating plummeted 29 points to 41 percent just days before his July 28 inauguration, according to the survey, which appeared in El Comercio newspaper. The previous Ipsos Apoyo poll, which came out on June 19, had Humala at 70 percent.
From Reuters

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End of the Free Market? Let's hope not!

2011-07-12T11:47:00.009-05:00

If you love freedom do not flush!

From Living in Peru

Opinion: Is it the end of the free market?

In his opinion piece Alfredo Barnechea throws out examples of successful government owned companies like Norwegian Statoil. This is really a misnomer and false representation. Statoil is state own in name only. Statoil is in reality an investor owned company with huge barriers between its operations and government influence. It is much more aligned with privately held companies than government run companies. Gazprom is also investor owned and Sonatach is a 100% owned subsidiary of ‘Sonatrach International Holding Corporation,' which is itself owned by the Sonatrach Group.

Now let's compare the history of a Peruvian government owned company. Here in Perú the one mine I hear brought up over and over again, as an example of an environmental disaster within Perú, is the La Oroya polymetallic smelter (now owned by Doe Run Mining). Nearly 90 years old, the government owned La Oroya mine for 23 years, during which time the pollution grew to unmanageable levels. The mine was then sold in a “too little too late” attempt to clean it up. It was established by the American Cerro de Pasco Corporation in 1922, was nationalized and became the property of Centromin in 1974 and was then privatized in 1997 when Doe Run bought it for US$247 million. It consists of a copper and lead smelter and zinc refinery.

When Doe Run bought La Oroya, it took over Centromin's PAMA, (Programa de Adecuación y Manejo Ambiental or Environmental Remediation and Management Program), an environmental contract requiring environmental remediation measures. The measures required new sulfuric acid plants, elimination of fugitive gases from the coke plant, use of oxygenated gases in the anodic residue plant, a water treatment plant for the copper refinery, a recirculation system for cooling waters at the smelter, management and disposal of acidic solutions at the silver refinery, an industrial wastewater treatment plant for the smelter and refinery, a containment dam for the lead mud near the zileret plant, a granulation process water at the lead smelter, an anode washing system at the zinc refinery, management and disposal of lead and copper slag wastes, domestic waste water treatment, and domestic waste disposal.

Because of the difficulty, and potential impossibility of the task, Doe Run Peru has been indemnified by Centromin (and guaranteed by the Peruvian Government) against any environmental liability arising out of Centromin's prior operation. Doe Run's original commitment to this program was US$107 million but it is now expected that it will cost at least US$244 million. The cleanup process continues today.

SOURCE

We should all fear the end of free markets. What would then ensue, if such an event were to occur, is an explosion of government corruption and totalitarian rule. This occurs anytime that so much power is centralized and competition is removed. Throughout history Government has failed miserably at irradiating poverty and offering equal opportunity to all citizens. Government, by it’s very nature, creates nothing efficiently and can only rob from those that do and give it to those that don’t. That is a huge mistake that only serves to more deeply ingrain poverty. The only way to drastically and permanently reduce poverty and financial inequality is to stop demonizing and start enlisting the expertise of free enterprise businesses, though refundable tax credit incentives, to get involved and tackle these problems directly. Government ego and control is the impediment not the answer. It is insanity to expect the non-producers that occupy the majority of government positions to produce that which they never have accomplished themselves.

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UNFREE TRADERS

2011-07-08T14:10:00.009-05:00

COMING AND GOING

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Peru's Humala talks about meeting with Obama

President Obama joked with the newly-elected Humala that “the best phase of a presidency is the election campaign, because afterwords is when the problems come.”

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That was no joke! That is a reality check on Obama's egocentric psychological make-up. Both Obama and Humala have at times said publicly they want to kill the hard fought and won (by the previous administrations) "free trade agreement" between the USA and Perú. They have something in common there. I just hope Humala (unlike Obama) at least takes responsibility for any failed policy decisions and is not the miserable leader that Obama has been. Ideally Humala will only have to deal with Obama until the US Presidential election in 2012. Obama is a far left ideologue campaigner that was never up to the breadth nor challenge the US Office of the President presents. America has suffered the consequences. I want to see Perú do better.

July 9, 2011, Additional thoughts sparked by this PHOTO LINK posted by "jorcaryvan" at Peru-N-English Discussion Group:

I fear Ollanta for the same reason I feared Obama. They both make unbelievably big promises. That alone demonstrates
their deep lack of understanding of job of president and the structural economic barriers that must be overcome to institute effective change that does not harm the economy. I, along with many others that have common sense and a pragmatic intellect, predicted Obama's failure. Obama was never really prepared to govern. He just wanted to get elected and would promise the Moon on a stick if that’s what would get the votes. Obama is a theorist, a professor, not a pragmatist. Theorists can write books with good intent about how it should be, pragmatists do not over promise and get the job done effectively. It’s a huge difference. How many times has Ollanta changed his platform? That by itself is an enormous red flag that boosts the odds of his failure. It reveals his weakness. My practice is to never trust anyone who keeps offering me a plan until they find one I like. Because they obviously have not thought through any of the plans. And, I expect results not the Moon on a stick!

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Local Loca Motion

2011-07-04T09:08:00.016-05:00

LocaMotion

Lima Mayor Susana Villarán, who has not one substantive accomplishment to her credit that will benefit the majority of Limenians (30% approval rating) and who has stopped construction on or renamed and reprioritized all the beneficial infrastructure projects set in motion by the very popular and effective previous mayor Castañeda, never fails to dumbfound. She does so with her penchant for an excruciating lack of common sense, profound disconnect from reality, her delusional self-aggrandized image and her elitist ideological disdain for the majority’s desires and preferences. Her absurdness is nearly comedic if not for the reality that Lima is in the hands of a fool.

Mayor Susana Villarán: The recently completed Electric train damages society and divides the communities like the Berlin Wall.

The upshot here is that the new electric train, which was approved in every district before its construction, is now about to be inaugurated by outgoing president Alan Garcia. Mayor Susana Villarán, a Catholic, is still angry about the statue of Christ on Morro Solar that a Brazilian company donated and President Alan Garcia partially funded. Currently she is spitefully using the power of the mayor's office to push legislation that would have a gay pride plaque posted on the statue. But that’s not enough. She wants to exact revenge by robbing from Garcia the leading role in the inauguration of the new electric train constructed under his watch. Though there was exhaustive district and public input, Villarán now calls it the Berlin Wall? The train is in operation but she says that some handrails and access points are not completely finished. She adds that there should be no inauguration until all the work, which is already scheduled, is finished. Translation: That means she wants Humala (who has had absolutely nothing to do with the train) to take the leading role in the inauguration. This is one unpleasant and bitter lady!

One more comment on the mishmash of cerebral misconnections present in this woman’s head.

She called the statue of Christ on Morro Solar exclusionary expression. Then she is publicly thrilled by leading the gay rights parade (which is fine if that is her propensity) that represents less than 10% of the population of Lima saying this, “I won this election cleanly, I won with my personal convictions, and my conviction is that everyone has a right to be in Lima and express themselves,” she said. “Nobody is going to dissuade me from serving the people of Lima.”

So ostensibly she is looking out for the rights of minority gays “to be in Lima and express themselves,” but did not (as a Catholic or the people’s representative) attend nor support the inauguration of a statue of Christ that represents the rights of the majority faithful “to be in Lima and express themselves.” Is that “serving the people of Lima?”

Now I know much of this is buffoonish and painfully hilarious. But meanwhile as she is chasing this irrelevance and fighting vindictive moonbat ideological battles the work of the people is not getting done. And that’s a big problem because there is much that seriously needs to be addressed in this city. Let’s hope that Villarán is not a Peruvian presage of a dreadful period of failed leadership descending on all of Perú.

Moonbat Serenade: Duet

Question: Since Mayor Villarán has called a halt to many of ex-Mayor Castañeda’s badly needed infrastructure projects for Lima, where’s all the money that was to be allocated for those projects going? What is it being spent on? Because Villarán is doing nothing visibly tangible.

Comic Relief

Is Villarán “Chilindrina?”

Villarán orgullosa de ser ‘Chilindrina’ Cardinal Juan Luis Cipriani, calls Susana Villarán “Chilindrina” and she’s proud of it!? Sometimes the truth provides the best comedy.

Sadly Lima’s Mayor Susana Villarán isn’t even marginally capable of performing the duties of mayor. She is an abject failure. 30% approval in 6 mos. says it all.

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Strange Bedfellows Indeed!

2011-06-30T10:33:00.011-05:00

Update July 16, 2011
The Peru Posible political party, led by former President Alejandro Toledo, has quit talks with President-elect Ollanta Humala over a role in his future government, Peru.21 said, without identifying where it obtained the information. Toledo’s party won’t accept ministerial posts in Humala’s government, which takes office July 28, the Lima-based newspaper said on its website. Peru Posible will back Humala on some issues in Congress, the newspaper said. Read More Here

♫♪ I Hate Everything About You! ♫♪

======================

June 29, 2011. Ex-president Alejandro Toledo who campaigned strongly for President-elect Ollanta Humala, and against highly educated business friendly congresswoman Keiko Fujimori, told a Chilean media outlet that he still has doubts today about President-elect Ollanta Humala. Ex-President Alejandro Toledo originally said that voting for Humala was to jump into an abyss. Then after losing his presidential bid in the first round of Perú’s 2011 presidential campaign, he did a 180 and bowed at Ollanta Humala’s feet during the latter part of the second round of the presidential campaign. It is my belief he was looking to salvage political power and position by helping Humala's team. But now that Humala has won, and after some meetings with President-elect Humala, Toledo is now having second thoughts.
Source

(2002, 2003 and 2004) Readers of the “Ollanta” were called on to make a coup and overthrow President Alejandro Toledo’s administration. It was repeated every two weeks that Toledo’s government had lost democratic legitimacy. Violence was justified in despicable and frightening terrorist terminology. At that time, during his stay in Paris and Seoul, lieutenant colonel Ollanta Humala was on the payroll of Alejandro Toledo’s administration. He permitted and encouraged the “Ollanta’s” demands for a military coup against Toledo’s government in hostile slanderous language. In what could be easily interpreted as a bi-weekly anti-democratic attack.
Source

I DON'T THINK THESE GUYS REALLY LIKE EACH OTHER

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Neophyte Navigators

2011-06-27T17:47:00.019-05:00

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Peru’s Stocks Fall for a Sixth Day on Concern Growth to Slow With Humala

Excerpts:

“The signs the government’s been giving haven’t been very encouraging, which is why investors are in wait-and-see mode,” Arispe said. “Investors like market-friendly people and Humala isn’t free-market.”

Humala, who takes office July 28, will expand government- run companies including Petroleos del Peru SA, Vice President- elect Marisol Espinoza said yesterday in an interview with Lima- based newspaper El Comercio.
Read more from Bloomberg

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Peru's president blames deadly clashes on 'dark political interests'

Excerpts:

Cabinet chief Rosario Fernandez said, while she regretted the deaths of the protesters in Puno, she said the government would act as needed to restore peace.

The mining of metals is one of Peru's leading industries, and a major revenue source for Peruvian departments with such natural resources.

According to the mine ministry, Puno receives 700 million soles ($250 million) annually from the government, of which about 40% is from mining royalties.

The canceling of the Santa Ana mine could cost Puno some 25 million soles ($9 million) in royalties, Gala said.

Protesters take over Juliaca airport in southern Peru

2011-06-26T10:22:00.004-05:00

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Protesters take over Juliaca airport in southern Peru

From Living in Peru:

Read the above article from Living in Peru HERE

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Opinion from Peru-N-English:

Headline correction: “Terrorists” take over Juliaca airport in southern Peru. Protests are peaceful. My protesting on this blog is peaceful. What these terrorist leaders are inciting is the antithesis of peaceful. It is evil! In these riots people are dying at the behest and pleasure their own leaders.

As someone by the name of AlexC commented on this article about the same subject, the radical terrorist leaders love it when one of theirs get killed. It helps the cause! I believe most of these poor folks are just blind ignorant followers who are being used to serve the evil purpose of their radical leadership. It’s a shame really. But it is also tragedy the way Bear Creek Mining is being treated by Perú’s government. They have done nothing wrong. Actually Bear Creek Mining has done everything right. I’m sure they will not stand still for this. They have a lot on the table and there is no truth to the allegations being waved around.

I’m a big fan of fair play and I'm pretty unhappy about this situation. I’m alerting as many investors as I can possibly contact, through all avenues available to me, about the corruption that is being allowed to rule the day here. I truly want the world and the investment community to know the truth. I sincerely hope all decent and honest observers of this travesty do the same.

The Supreme Decree prohibiting mining in the Santa Ana project area includes artisanal (informal) mining. But, since the government of Perú can't police nor control the artisanal mining that has been polluting the Ramis River Basin and Lake Titicaca in Puno for many years, it would appear to be a toothless restriction. As the wildcat miners know very well.

Additionally

In my opinion when facing these types of volatile and dangerous riots; government officials should use both police and military troops in overwhelming numbers to subdue the participants. Then attempt to capture and remove the main agitators and leaders to stop the destruction and preserve the peace. Too few enforcement personnel only serve to agitate the rioters and guarantees a greater chance of unnecessary deaths.

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Update: Peru cancels mine after 4 killed in clash

2011-06-24T22:26:00.015-05:00

Can we now call this what it is? Because it's not about the environment. It's about extortion, corruption and theft of Bear Creek Mining's legal rights to the Puno Santa Ana project area. Achieved through mob rule and terrorist actions.

"There are dark political interests here that are demanding power," Garcia told reporters. "What they are trying to do is pressure the next government of Ollanta Humala by issuing threats and forcefully demonstrating," Garcia said without providing further details.

Some 5,000 protesters, mostly Aymara Indians, have descended on Puno over the past few weeks to demand concessions be revoked for all mining companies, not just Bear Creek's Santa Ana project, ostensibly over concerns about potential pollution.

Magazine Caretas reported this week, however, that wildcat miners are interested in Bear Creek's concession and are working alongside protesters. Locals think the land has valuable gold deposits in addition to silver.

Often times they (the Puno terrorists) also demand direct economic benefits from mining and oil projects. SOURCE

Isn't that how criminal territorial monopolies and protection money has always worked? Is this the corruption President-elect Ollanta Humala has sworn to stop? I think Alan Garcia is rightfully washing his hands of this and just passing the baton, because this isn't over. Bear Creek has invested nearly $100 million. And notoriously environmentally unfriendly wildcat miners want to take it away. This really stinks bad.

Read on:

Bear Creek's director, Andrew Swarthout, told The Associated Press that the company had not received formal notification of the decree's revocation.

He said any government attempt to cancel the project would be illegal and amount to "expropriation."

"We followed all the rules. We got public consent. We're in the middle of an environmental impact statement. It was due process. Everything was within the letter of the law," Swarthout said.

The company has said it already spent $96 million on the Santa Ana project.

Swarthout has warned previously that any attempt to end the project would give pause to international investors who have announced their intention to plow more than $40 billion into Peru's mining sector in the coming decade.

Click Here to Read the Whole AP Article

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The Company has followed all required processes to earn approvals in the ESIA process and the ESIA is based on a project design that takes into account the highest quality of environmental safeguards and standards as well as strong commitments to social sustainability and benefits to local communities including job training, agricultural, educational and health improvement programs. The Santa Ana project will provide 1,000 direct jobs, 1,500 indirect jobs, and provide over US$330 million in royalties and taxes for the Peruvian people and our surrounding communities. Mr. Andrew Swarthout, Bear Creek CEO, stated "We continue to believe that these protests and government responses are the result of the pre-election political climate. We remain confident that the protests will be successfully resolved allowing companies like Bear Creek to return to the normal, well-established permitting and other procedures under which all mining companies in Peru have operated for decades. I emphasize again that Bear Creek has received strong local community support for our Santa Ana project as demonstrated by the formal public hearing successfully completed in our local community at Santa Ana in February, 2011 in which the community officially ratified its strong support for the Santa Ana mine development. It is important to recognize that the protests in southern Puno are occurring distant from the Santa Ana project and involve participants far removed from the communities in which we work. We will continue, as always, to work with local and federal authorities to assist in resolving the regional issues even as we pursue our legal alternatives."

SOURCE

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Where's the Common Sense!? Where's the Sanity!? Who is Looking Out for Perú's Majority!?

2011-06-24T14:37:00.013-05:00

It is known that these artisanal (informal) mining operations are characterized by their low productivity, scarce safety conditions and negative impact on the environment. Perú is also harmed as it is deprived of the taxes for the mining rights that are not paid by these mines.

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From Living in Perú

The indefinite strike in the provinces of Melgar and Azángaro in Puno against mining and oil concessions turned violent Thursday.

Thursday afternoon Walter Aduviri met with congressmen to seek a solution to the region's turmoil.

"We will radicalize the protest. We demand decontamination of the Ramis basin and the cancellation of mining and oil concessions," said Sergio Mamani, leader from the town of Progreso.
Read the full article here

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Peru-N-English Opinion:

Why is Walter Aduviri meeting with congressmen and not sitting in jail awaiting trial!? The government should call for a halt of all terrorist activities, and the surrender to authorities of their radicalized leaders, before negotiating any agreements. Are they going to wait for more people to be needlessly killed, more property to be destroyed and more groups to become emboldened and radicalized?

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PUNO UPDATE 6/24/2011:

At least 3 dead 15 wounded as Peru police and protesters clash

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Why is no one methodically and scientifically questioning the accusations and claims against legitimate businesses, allowed to be held up unchallenged as truth, by these dangerous and hateful ignorant minority groups? I'm not talking about bias media reports. Where are the uncolored by ideology proven facts?

These rioters are calling for the clean up of the Ramis River Basin in Puno. That’s fine and should be addressed more quickly. There are already studies underway attempting to remedy this long term problem and the contamination of Lake Titicaca. But what does that have to do with the Bear Creek Mining Santa Ana project or any other professional, modern technology, drilling or mining operations that have invested hundreds of millions of dollars to protect the environment in Perú? Absolutely nothing! Read below:

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“Informal” gold mining in southern Puno region has been impacting the Ramis river basin for years and the formation of a committee to address the high levels of pollution in the basin is nothing new. As far back as 2003, the government announced a plan to clean up Titicaca and the polluted rivers, costing millions of dollars.

Continued ...

In 2005, local authorities from Puno's Azángaro province presented a petition in congress calling for the intervention of the energy and mining ministry (MEM) in the mining activities polluting the area.
In response, the health ministry recommended the formation of a multi-sector committee, headed by MEM to resolve the issue.

In early 2006, the committee decided to carry out studies of the river basin to evaluate the situation. The levels of heavy metals such as copper, chrome, lead, mercury and zinc were found to be higher than legally permitted under the country's water law.

In April of the same year, hundreds of residents in the basin area marched to the regional capital of Puno to protest against the contamination and urge authorities to shut down the mining centers.

In October 2006 MEM issued a statement saying it had organized a multi-sector committee to resolve environmental problems caused by informal gold mining.

To prevent further pollution of the Ramis river basin, the ministry along with miners, the Puno government and the municipalities of Ananea and Putina, pledged to fund a system to stabilize suspended solids in wastewater discharges.

The ministry said it expected construction of this system to take some four months. MEM also said it expected congress to draft a law further regulating environmental issues related to mining in Puno.

In July 2007 the Peruvian government approved by decree a plan to prevent further pollution of the Ramis river basin.

The first step in the plan was to increase police presence in the area and restrict the illegal sale of explosives and fuel that has facilitated informal mining.

The government also said it would open an office in the Ananea community, where the contamination was occurring, to oversee local mining practices.

In late 2008, the country formalized the creation of Minam. The ministry has promised to focus on cleaning up river basins and formalizing illegal mining activities.

SOURCE

=====================

This is a case of Peruanos contaminating Peruanos

Not legitimate outside mines contaminating Peruanos

Where's the Common Sense!? Where's the Sanity!?

Who is Looking Out for Perú's Majority!?

A majority who have benefited greatly from outside mining and drilling.

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Walter Aduviri (Puno terrorist leader), “Permanently cease all mining concessions in the Puno region.”

2011-06-23T13:22:00.003-05:00

From Living in Peru

Government reviews Supreme Decree

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WAKE UP PERU!

For the sake of all the millions of people and families in Perú who have prospered due to mining and drilling operations throughout the country, Perú’s government needs to grows a pair and not let a few thousand ignorant terrorist types dictate government and investment policy with false and unsubstantiated claims.

Billions of dollars that have reduced poverty, enhanced education, brought modern medicine advancements, constructed housing and grown the middle & upper classes of Perú are at stake. If Perú’s government doesn’t take a stand at this juncture the whole investment picture in Perú becomes murky and questionable. And the terrorists become legitimized and emboldened to conduct more anarchist based extortion in the future. Walter Aduviri needs to go to prison for his crimes and threats of further terrorism against the government of Perú.

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Humala's Self-Inflicted Crisis

2011-06-22T12:50:00.017-05:00

From Living in Peru:

“With so many social conflicts popping up all over the country – no less than a hundred – he will have to implement these programs as soon as possible.”

===========================

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(Reuters) - Three people died when police clashed with students who set fire to government buildings in a remote province, officials said on Wednesday, a sign of social conflict looming for leftist President-elect Ollanta Humala. They set fire to almost all of the offices of the regional government.

June 23, 2011 Update - Huancavelica, Peru.

VIDEO

Huancavelica rioters raided the morgue for the bodies of the three persons killed (one a 14 year old girl) during their hate filled terrorist actions. Then they paraded them in their coffins through the streets of Huancavelica trying to blame police for the results of their own violent deeds. This is only one of more than 220 terrorist driven anarchist actions taking place in Perú since the victory of President-elect Ollanta Humala.

In my opinion, it is President-elect Ollanta Humala’s irresponsible campaign words validating the rightfulness of the (unsubstantiated) claims these anarchist groups are making, against the perceived evil government and good faith industries of Perú, that have opened the door and fueled the flames of all these riots and uncivil disobedience. These are Humala's supporters and voters. Why does he not step up and condemn these terrorist actions? Where is his leadership? Where is his love of Perú? This far flung unrest has provided an excellent opportunity for foreign infiltrators and agitators to enter the fray. Reports have confirmed this. President-elect Ollanta Humala is frantically and absurdly calling on the outgoing President Alan Garcia (with one month left in office) to fix all these problems that Humala himself incited. So far Humala’s publicly announced plan to deal with the situation is the resolution of demands by talking with each group.

================================

Wednesday, June 22, 2011

Peru-N-English Opinion:

Humala incited and inflamed the current riots and acts of terrorism, or euphemistically called “social conflicts” by sympathizers, with his outrageous promises. Soon it will be time to pay the piper. This kind of pressure is notorious for causing ill-informed, economically imprudent and reckless decision making.

Humala is already preposterously pleading for Garcia to fix (in his few remaining days) the Puno problem before Humala (himself) takes office. These are obviously Humala supporters. He stirred them up to get their vote, shouldn't he be going to Puno to calm them down? It is obvious that Puno is going to be a long term problem, that will require a thoughtful process and that will need to be addressed by the incoming administration. You’d think someone who is about to become president would know that.

Attempts to pacify active terrorists’ arguments tend only to embolden them and other terrorist groups while broadening the lunacy of their demands. Before steps can be taken or policies moved forward, to address any realistic concerns of these affected communities, the government must demand and enforce that all the acts of terrorism be halted immediately and indefinitely. Anarchy and chaos should never be rewarded.

Humala’s apparent (up to this point) impulsiveness for saying whatever the group immediately in front of him wants to hear, works only in campaigns to gain the votes of ignorance, not in real life situations. Humala needs desperately to show a strength and conviction in that only peaceful requests will be heard, and that all terrorism will be met with overwhelming force. I sincerely hope that Humala’s incoming “Dream Team” is far more than just a dream. The World is watching!

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Liar! Liar! Pants On Fire! But They're Not Burning On "Barato" (Cheap) Gas

2011-06-22T12:37:00.010-05:00

Humala has already, since being elected, backtracked on the promise of bidónes of gas for S/.12 each. Actually saying, he never promised bidónes of gas for S/.12 each. You can be the judge. Maybe Humala should send some people out to take down his political campaign signs that advertised bidónes of gas for S/.12 each? They’re still up in many locations. Especially where the poorer folks live. Most intelligent people knew that S/. 12 gas was not a sound policy based in economic reality. But most of the poorer folks around here, I talked with, were really excited about bidónes of gas for S/. 12 as they headed off to the polls to vote. “Ollanta! Presidente! Ollanta! Presidente! Ollanta! Presidente!”

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Puno’s Extorsiónistas

2011-06-16T13:31:00.020-05:00

June 16, 2011
Violence, lawlessness, destruction of property and intimidation are proven effective tools against Perú authorities as they back down and Puno terrorist leader Walter Aduviri walks free.
===============

PUNO TERRORISM

No different than an old Mafia movie. The wealthy, hard working and legitimate business man moves into a rough area to start up a new business. Then next he is visited by the local Mafia thugs wanting to extract protection money for the mob. They tell the businessman, “You have violated the neighborhood rules by moving in without talking to the folks around here. You understand, don’t you? The neighbors say they don’t feel like you fit into our little neighborhood. You could be subject to violence and your family may be in danger. But don’t worry. We’re here to help you out. You just have to give us some of your profits and we will keep these awful people off your back.” That’s Puno. Yes, I know, many of these people are holding the false flags of agriculture and environment. But since neither of these concerns are realistic nor would be impacted by the new Puno, Santa Ana mine, I think it is safe to say that monetary reparations would rip the heart out of anymore riots near term. And would most assuredly assuage the criminal, Walter Aduviri. But it would set a horrible future precedent.

The Truth:

The Santa Ana (Puno) property, of Bear Creek Mining, in dispute is located 140 km (87 miles) south of the city of Puno, 20 km (12.5 miles) south of the paved highway connecting to the port of Ilo, Peru. It isn't even in the same drainage basin as Lake Titicaca nor Puno‘s water supplies. There are already to other highly functioning mines in the area. Two of them are the Cuajone and Toquepala mines. Neither of these mines have neglected nor destroyed the environment. They have invested hundreds of millions of dollars to protect the environment. Does anyone truly believe that the Peruvian government, which has difficulty containing corruption and managing itself, would make those kind of investments, if the mines were turned over to them? Let’s not be absurd!

SOURCE

Factual not Emotional:

The Cuajone mine, located in the rugged Peruvian Andes at 12,000 feet, was the largest single copper mine and smelter complex ever built. Fluor provided detailed engineering, procurement and construction management services along with training for 7,000 peak “local” workers.
SOURCE

Reporting from Peru in 1992, Nathaniel C. Nash of the New York Times wrote that Southern Peru Copper's 5,000 workers and their 20,000 dependents received free housing, education, electricity, water, medical care, and food at the mines and Ilo. The company also was subsidizing college education for the children of its workers. 'A tour through both Cuajone and Toquepala,' he continued, 'found them to be more like modern rural United States towns, with manicured lawns, clean buildings and streets. The hospital in Cuajone is considered perhaps the most modern in Peru.' Nevertheless, he noted, 'Recent surveys have found that 75 percent of the residents do not like the presence of this American corporate giant, dubbed by some as the `gringo octopus.'
SOURCE

During its long history, Southern has continued to modernize and improve its operations but not only to increase production. The company has spent hundreds of millions of dollars on environmental controls including modernization of the Ilo copper smelter which represents the largest environmental expenditure in Peru's history ($600 million).
SOURCE

University training and involvement: The 2005 edition, was for the second time (after the 2002 edition) completely devoted to the geochemical and geomicrobiological aspects of mine waste management. During the six days of lectures, a broad overview about the environmental problems of mining activities with special focus on the formation, control and prevention of acid mine drainage was given.

Toquepala porphyry copper deposit and the remediation approach at the Bahía de Ite tailings deposit (Southern Peru Copper Corporation) were visited to show the complete mining process from the mineral extraction in the open pit, through crushing, milling, flotation, to the tailings disposal, and mine waste remediation in these world class deposits.
SOURCE

Back to Puno:

We have wealthy, hard working, legitimate and ethical Bear Creek Mining Company, that has followed the laws and regulations, and has committed to (and in some case surpassed) the world’s most stringent environmental controls, moving into the rough Puno area. The privately owned mines in Perú are largely the impetus behind Perú’s astounding rise in world status, societal wealth and reduced poverty. Bear Creek Mining Company wants to move into an area already occupied by successfully functioning and environmentally responsible mines. They have spent millions already in feasibility and environmental studies. Now the Puno criminal Mafia, with the aid of activists from outside of Perú and ignorant Puno residents (with the mentality of lemmings), starts waving around fictitious claims of environmental concerns and damage.* What some of these criminals really want is to extort money from the local mines. Others, are just baseless xenophobic haters of the “gringo octopus.” The Puno criminals threaten that if they are not appeased they will “radicalize” and endanger the prosperity of every resident in Perú. Why is this rebellion not crushed? Legitimate protests present the public with proof and facts, not violence.

* The media has failed purposely, I suppose for reasons of ideology, to question any of the Puno rioters’ and terrorists’ claims or to present any actual mining facts or figures. Shameful!

Keep in mind that the terrorist leaders of the Puno riots are demanding that "ALL" mining and drilling operations be permanently shutdown.

Fear Mongering:

The one mine I hear brought up over and over again, as an example of an environmental disaster within Perú, is the La Oroya polymetallic smelter (now owned by Doe Run Mining). Nearly 90 years old, the government owned La Oroya mine for 23 years, during which time the pollution grew to unmanageable levels. The mine was then sold in a “too little too late” attempt to clean it up. It was established by the American Cerro de Pasco Corporation in 1922, was nationalized and became the property of Centromin in 1974 and was then privatized in 1997 when Doe Run bought it for US$247 million. It consists of a copper and lead smelter and zinc refinery.

When Doe Run bought La Oroya, it took over Centromin's PAMA, (Programa de Adecuación y Manejo Ambiental or Environmental Remediation and Management Program), an environmental contract requiring environmental remediation measures. The measures required new sulfuric acid plants, elimination of fugitive gases from the coke plant, use of oxygenated gases in the anodic residue plant, a water treatment plant for the copper refinery, a recirculation system for cooling waters at the smelter, management and disposal of acidic solutions at the silver refinery, an industrial wastewater treatment plant for the smelter and refinery, a containment dam for the lead mud near the zileret plant, a granulation process water at the lead smelter, an anode washing system at the zinc refinery, management and disposal of lead and copper slag wastes, domestic waste water treatment, and domestic waste disposal.

Because of the difficulty, and potential impossibility of the task, Doe Run Peru has been indemnified by Centromin (and guaranteed by the Peruvian Government) against any environmental liability arising out of Centromin's prior operation. Doe Run's original commitment to this program was US$107 million but it is now expected that it will cost at least US$244 million. The cleanup process continues today.

SOURCE

Related Post 1
Related Post 2

No surprise. Government owned companies are always a disaster.

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Perú’s Pelosi

2011-06-14T11:40:00.015-05:00

June 30, 2011 UPDATE:

Statue of Christ inaugurated in Peru

Pope Benedict XVI prayed that the 121 foot-tall monument overlooking the city of Lima, Peru will “inspire everyone to grow in the love of God and neighbor.”

While the extremely far left, ideologically driven, kooky mayor of Lima, Susana Villarán, who claims to be a devout Catholic while working feverishly to advance abortion, prostitution and LGBT rights (at the expense of many substantive and badly needed projects in Lima), couldn't put together a kind word for the majority supported project. Susana Villarán appears to be more than just a bit conflicted.

Pope Benedict XVI prayed that the 121 foot-tall monument overlooking the city of Lima, Peru will “inspire everyone to grow in the love of God and neighbor.” He encouraged Peruvians to “work tirelessly in the building of an ever more just, unified and fraternal society, in a climate of respect and diligent collaboration in the search for the common good,” according to the newspaper El Comercio. The Pope's words came in a message for the blessing of the massive “Christ of the Pacific” statue on June 24.

Mayor of Lima, Susana Villarán said. "I'm Catholic; I don't have problems with the figure of Christ, but it would have been better to dedicate the resources to social investment," The mayor dismisses the statue as "a plastic copy of the Christ of Corcovado.

But Susana Villarán's words seem infinitesimally small, spiteful and petty when compared to the message read by Cardinal Juan Luis Cipriani of Lima. “It’s very easy to find reasons to criticize. We could talk about so many investments — without getting into details in order to avoid stepping on anyone’s toes — so many areas where there is useless spending. I think this is a small expense because it is a donation,” the cardinal noted. He said his own personal intention regarding the project is “to reconcile and not divide.”

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Looney Tunes

Hookers trumping infrastructure
Absent on commitments of national pride
Distractions rather than accomplishments
Obstruction without contribution

Symbolism over substance
Where is the Villarán plan to materially improve Lima, Perú?

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From Living in Peru

Disagreement on giant statue of Christ to be installed in Lima

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Obviously elitist liberal/progressive “secular politics” are alive and well in Lima.

Lima mayor, Susana Villarán, has asked president Alan García to consider moving the location of the new statue, known as "Christ of the Pacific," saying the statue will affect the view of the Morro Solar.

Of course we all know this is about secularism and politics. Not the unsightly tower obstructed skyline of Morro Solar. If it were a statue of Karl Marx, or another famous secular figure, would Susana Villarán be objecting?

Aren’t there more pressing issues in Lima, on which Mayor Susana Villarán, should expend her energy and diminishing political clout? I believe there are (pollution, crime, corruption, traffic, social services, etc.). But then, chasing insignificance seems to be her passion.

Final Thought:

I think this statue is a brilliant idea and will immediately become a point of local pride and a marvelous tourist attraction. It certainly doesn’t hurt the featureless, barren and tower struck skyline of Morro Solar. Anyone with an ounce of common sense knows that this beautiful gift is only exclusionary if you have a closed mind. I appreciate all points of view and symbols of devotion, from any belief or religion, promoting love, community spirit and tolerance. Perhaps the reason atheists have such a problem with people of all religions expressing their faith is because they have none to share. Thank you to all in Perú and Brazil who made this possible.

Comments posted here may be copied to the Peru-N-English Discussion Group site.