Indigenous Grievances

For decades, Peru’s indigenous groups have repeatedly sabotaged companies extracting resources from contested land — land claimed by both the Peruvian government and indigenous groups. Mining and oil extraction have led to environmental degradation and associated health conditions among indigenous populations, who are no longer able to live off natural resources in areas contaminated by oil spills and pollution. In recent years, protests driven by these grievances have had a commercial impact on companies, which are often the direct targets of civil unrest. Actions against extraction and production facilities have included demonstrations, sabotage and even kidnapping, all aimed at halting production and forcing the government and firms to the negotiating table. Such protests continue to pose a threat to companies operating plants or partnering with the state in Peru’s extractive environment.

Anti-Mining Protests in the Andes

In the southern Peruvian Andes, anti-mining protesters from local towns and villages often block roads and highways leading to gold and copper mining sites. For example, in late March 2019, Peruvian authorities were forced to declare a state of emergency near the Chineseoperated Las Bambas mine in the south, one of Peru’s largest copper mines, amid ongoing demonstrations by indigenous rights activists demanding compensation for access to land they contest as theirs. 

Las Bambas has been the site of protests since 2015. However, incidents increased after the government declared a road built by Las Bambas’ mining operator, which extends through the Nueva Fuerabamba village’s farmland, a national highway in May 2018. Residents claimed that neither the company nor the government consulted the community prior to the road’s construction. In addition to protests, the Chinese-owned company operating the mine was subsequently sued for USD 46 million by affected indigenous communities. The case is ongoing.

Oil Protests in the Amazon

 In addition to anti-mining protests in the southern Andes region, several protests have taken place in northern Peru, with indigenous protesters causing disruptions and the suspension of operations at oil fields and platforms. While some protests are limited to a week or two, others have taken place over months, indicating indigenous communities’ commitment to long-term action. For example, in 2016, residents of the Amazon basin launched a flotilla which blocked oil transportation on the Lot 8 oil field located on the Marañón River for four months. Similar sustained demonstrations took place between September and November 2017, when indigenous activists peacefully blockaded 50 oil wells at Lot 192, Peru’s largest oil concession. The overall production loss across the lot amounted to a reported 12,000 barrels per day for the duration of the blockade.

Mostly Peaceful, Highly Disruptive

Indigenous communities frequently reiterate their intent to demonstrate peacefully. While isolated confrontations between security personnel and protesters have occurred, demonstrators predominantly focus on infiltrating and commandeering infrastructure at facilities, or blocking entries and exits to prevent access to operations. The knockon effect of such disruptions can result in the suspension or withdrawal of commercial operations. For example, in 2015, an Argentinian oil company withdrew its operations in Block 108, Junin Province, after four days of protests by residents who accused the company of environmental contamination. In a related demonstration, around 500 protesters barred access to one of the few Amazonian airports servicing the extractives industry, preventing several flights from landing and taking off. Beyond halting their operation, the company also sustained serious reputational damage as local and international media speculated over the legality of its activities

Occasional Aggressive Measures

Intermittently, activists sabotage pipelines to prevent oil from being transported from the production block to the ports. For example, in 2016, 26 incidents of protest action were recorded along the Loreto State pipeline, of which 19 were sabotage-related. In December 2018, a Canadian firm suspended operations at Lot 192 after indigenous activists damaged an oil transportation pipeline. Residents had also taken 20 oil workers from the company hostage a month prior, although hostages were released within within four days following the promise of dialogue with government representatives to resolve grievances.

Ongoing Impasse

Protesters also claim that the government continues to ignore the UN Declaration on the Rights of Indigenous Peoples, which addresses indigenous peoples’ right to be consulted on any development plans taking place on their territory. As such, the state target of increasing oil production to 100,000 barrels per day by 2021 — compared to the 48,500 barrels per day reached in November 2018 — is likely to be a key driver of further indigenous protests, as companies are invited to explore new oil blocks and increase production at existing fields. The government is also unlikely to meet protesters’ demands that it address the environmental degradation in the northern Peruvian rainforests, due to the high cost, estimated at USD 1 billion. As such, a resolution is unlikely in the next few years.