Highlights
– Residents of Moquegua province hold protests to demand higher revenue from booming copper industry
– Demonstrators take more than 60 police officers hostage
– All officials have since been released, negotiations to commence
– Agreement will likely be reached in the near term evading further violence
An estimated 5,000 residents of the Peruvian province Moquegua started blocking roadways on June 10, 2008, in an effort to demand a greater share of the region’s mine revenues. Residents stated they want a larger share of the taxes which operators of the local mine, Southern Copper, pays the government. Residents are calling for changes to a mining law that would base profits on the quantity of metal produced as opposed to the tonnage of metal bearing earth that is removed from the mine.
Protests commenced by residents blocking several roadways, including the main highway into Chile. Protesters also blocked access to a mine and smelter owned by Southern Copper. The roadblocks cut access to the Tacna region, causing food and fuel shortages in the area and forcing the government to ship in supplies by water. As the week progressed, participation increased and officials were far outnumbered. Several police officers were taken hostage after rallies became violent; 24 hours later, however, they were released. Negotiations over mining revenue will likely continue in the near-term. We do not believe an additional outbreak of violence in the region is likely.
Clashes Result in Hostage Situation
According to media sources, by June 16, 2008, participation in the protests had exceeded 15,000. As an estimated 100 police officials attempted to break up the blockade, demonstrators began throwing rocks, injuring 57 officers. Although law enforcement on the ground and in helicopters above were equipped with tear gas, residents disarmed the officers, resulting in the capture of over 60 policemen. The crowd then took the hostages to the city’s cathedral where they were held. The region’s police chief, who was also taken to the church, discussed the situation with a local radio station stating, “The situation is not longer under police control. I have wounded here and I am in trouble, so I urge police to draw back.”
Outcome
President Alan Garcia’s administration asserted negotiations would end if demonstrators did not release the officers. Additionally, he requested local political leaders negotiate an end to the standoff and blamed left-wing political parties for refusing a settlement. Twelve hostages were released soon after arriving to the church due to their severe injuries. All remaining officers were released within 24 hours of being captured to secure talks with the government. Reportedly, the remaining individuals were released were unharmed.
Looking Ahead
Following suspension, the Cabinet Chief stated negotiations would resume now that all hostages had been freed. According to media reports, Southern Copper’s chief executive stated the government should split the revenue fairly between the provinces.
As both sides included in the dispute have shown willingness to negotiate the situation, it is likely an agreement will be reached in the near-term that will placate both sides. As such, we believe it is unlikely an additional outbreak of violence will occur in the region due to the mining law dispute.
