Peru says army to help curb mining law violence
Sat Nov 1, 2008 4:14pm EDT
reuters.com
By Teresa Cespedes
LIMA, Nov 1 (Reuters) - Peru on Saturday gave the military the green light to step in to maintain order in the southern province of Tacna, where thousands blocked roads and cut water supplies this week to protest against a mining royalty law.
"The armed forces are authorized to intervene to help the national police provide security in the department of Tacna, where diverse organizations and social agitators are preparing acts of violence," the Ministry of Defense said in a resolution.
The measure will remain in place until Nov. 7.
Local media reported troops were placed at strategic locations in Tacna, like the airport and public service installations.
Friday marked a fourth day of protests in the provinces of Tacna and neighboring Moquegua, which are locked in a dispute over how to share millions of dollars in taxes paid by Southern Copper Corp (PCU.N: Quote, Profile, Research, Stock Buzz), a unit of Grupo Mexico (GMEXICOB.MX: Quote, Profile, Research, Stock Buzz) and one of the world's largest mining companies.
There were no reports of protests on Saturday.
The legislation passed on Thursday overhauls the way royalties are distributed to all provinces in a country with hundreds of mines. The bill was approved by a big majority in Congress and President Alan Garcia is expected to sign it into law.
Garcia met on Saturday with Tacna's regional president Hugo Ordonez, who says his region will receive less money because of the new law.
The legislation would levy taxes based on how much mineral wealth a mine produces, rather than on how much dirt a mine moves, as the system does now.
The bill has been most controversial in southern Peru. Under the current system, Moquegua this year expects to receive 20 percent of taxes paid by Southern Copper that are distributed to provinces, while 80 percent will go to Tacna.
The new law would direct more money to Moquegua. Politicians in both provinces say they need the revenue to pay for basic services like water, electricity and education.
Some 40 percent of Peruvians live in poverty, despite seven years of fast economic growth, and critics say Garcia has not done enough to bring the boom's benefits to the poor.
Mining accounts for more than 50 percent of Peru's total exports. Peru is the world's second largest producer of copper and zinc, its top silver producer and its fifth gold producer. (Editing by Anthony Boadle) |
