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Original title: The impeachment of the president of Peru, the world’s second largest copper producer, raises concerns about political unrest Source: Mining.com
Peruvian mining authorities hope that interim president Manuel Merino can guarantee stability before the April elections. Peru, as the world’s second largest copper producer, seeks to recover from the worst economic crisis in nearly a century.
According to industry experts, domestic miners are being hit hard by the spread of the new corona virus, and now it’s a new political crisis.
Roque Benavides, president of the Peruvian mining company Buenaventura, described the situation as “painful and regrettable.” This precisely reflects the current state of mind of many miners and analysts.
Benavides said that the mining industry is a long-term activity and needs legal, political and economic stability.
After Peru’s Martín Vizcarra resigned Monday night, Merino assumed the presidency on Tuesday and the interim president will serve for seven months. Due to the impact of the new corona virus outbreak this year, Peru’s economy could contract by 12.5%.
Benavides urged the interim government to avoid further volatility in its economic plan.
Benavides said the role of the transitional government is to maintain the status quo and observe the rule of law, but not to carry out major reforms.
Martín Viscala’s resignation on Tuesday sparked panic in the Peruvian market, bond prices plummeted and the sol currency fell to 18-year lows. Market watchers also worry about the further development of populism under the interim government.
Carlos Anderson, an economist at the local consulting firm Instituto del Futuro, said: All these factors are exacerbating the already high uncertainty.
Peruvian copper miners have been hit hard by the new coronavirus.
In mid-March, strict quarantine measures were put in place to prevent the spread of the new coronavirus, resulting in serious damage to production. Production in July returned to the level prior to the spread of the new krone, but has since declined slightly.
Peru’s mining exports represent 60% of the total exports of the countries of South America. The mining industry is an important economic engine and source of employment for Peru.
(Source: Mining.com)
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