MercoPress. South Atlantic News Agency

International environmental audit for mining project, promises Peru government

“We will be globally competitive and attract first-class mining” says minister Merino

Peru's new mine and energy minister said on Monday the government would attract private investment to the vast sector while requiring that it bring more social benefits for the fast-growing economy.

President Ollanta Humala shuffled his cabinet over the weekend in part to calm widespread disputes over natural-resource projects, such as Newmont's proposed 4.8 billion dollars Conga gold mine in the northern region of Cajamarca.

“We will be globally competitive and attract first-class mining,” Jorge Merino, an engineer who spent years working for the government agency that promotes foreign investment before he was picked by Humala, told reporters.

“My commitment is to decide how the country can bring investment, but investment that helps develop social programs” said Merino, who was also once head of social affairs at the agency, Pro-Inversion.

Prime Minister Oscar Valdes, a former army officer who had been interior minister, said the government will ask international experts to audit the disputed environmental plan for Conga before making a decision on what would be Peru's most expensive mining project ever.

“We think this is a good way to defend investment in Peru”, Valdes, speaking on local television, said of the audit. He said protesters had ”reasonable doubts” that should be addressed.

Peru has 50 billion dollars in mining and oil investment lined up for the next decade, but the government is worried some 200 social and environmental conflicts nationwide could prevent that from taking off.

Humala has struggled to assuage the environmental concerns over water supplies from local communities opposed to the Conga project, many of which voted for him in the June election.

However he declared a state of emergency last week to break up protests against Conga, a joint venture between US-based Newmont and Peru's Buenaventura. It was the first sign his government may be willing to take a firmer stance to ensure the giant project goes forward.