The Peruvian Minister of Mines and Energy Carlos Herrera told Congress on Wednesday that the $4.8 billion Minas Conga mine project would not continue without the approval of the local community. “Projects should be approved by the people who will be affected by them," said Minister Herrera. Accompanied by the ministers of agriculture and the environment, Minister Herrera traveled to the project site in the northern Cajamarca region late Wednesday to negotiate an accord between the American mining company Newmont Mining and the local community.

Minas Conga is being developed in collaboration with Peruvian mining company Buenaventura and is expected to produce between 580,000 and 680,000 ounces of gold per year, starting in 2015. But local residents are concerned that the mine’s proximity to a water basin will cause pollution and sap vital water supplies. Responding to protests by local communities, some of which turned violent, Minister Herrera told Congress that "the position of the government is that it wants investment, but not at any price."

While it is unlikely that the project will be abandoned, Prime Minister Salomón Lerner Ghitis said on Wednesday that the government will carry out a "strict" evaluation of the mine’s environmental impact. On the other hand, the National Mining, Oil and Energy Society (SNMPE) said the government “cannot allow small, violent groups to impede inclusive development and private investment." An Americas Quarterly article to be released in the Fall issue on November 9 ("Do Chinese Mining Companies Exploit More?") looks at the labor rights and environmental records of Chinese mines in Peru.

As the world’s sixth largest gold producer, mines like Conga have fueled Peru’s stunning 7 percent annual growth rate. At the same time, President Ollanta Humala has made social inclusion a priority for his administration, promising to resolve the countless social and environmental conflicts plaguing Peru—many of them over mining and oil projects. President Humala will address the issue of responsible investment and social inclusion at the Americas Society and Council of the Americas Latin American Cities Conference in Lima tomorrow.

Venezuelan Opposition Agrees to Back One Candidate

Members in the Venezuelan opposition umbrella group known as the Coalition for Democratic United (MUD) signed a pact Monday agreeing to present a united front against President Hugo Chávez in next year’s presidential election. The pact states they will recognize the winner of the February 12 primary as the sole candidate of the MUD. The MUD also asked the Venezuelan Electoral Council that international observers from the OAS, UN, EU, Mercosur, and Unasur be invited to monitor the vote.

Read an AS/COA Online News Analysis about the Venezuelan opposition’s decision to back one candidate.

Bolivian Ministers Resign over Rainforest Highway Controversy

As Bloggings by Boz notes, some 20 social movements in eight Bolivian departments aligned with indigenous protests against construction of a highway through the country’s rainforest. The Brazil-funded highway would connect the northeast of Bolivia with northern Chile and run through the Isiboro-Sécure Indigenous Territory and National Park (known by its Spanish acronym TIPNIS). With the government of Evo Morales facing criticism over police action against the protesters, the interior and defense ministers are among officials to resign over the controversy. Morales suspended construction of the TIPNIS project; its fate will be decided in a referendum held in two Bolivian departments.

An AS/COA News Analysis offers background on the TIPNIS highway protests. 

Bolivia in Focus

The Fall 2011 issue of Harvard’s ReVista focuses on Bolivia, taking a look in particular at changes in the country since current President Evo Morales took office. Topics explored include economics and development, education, political processes, natural resources, and different aspects of Bolivian identity.