Commodities Buzz: German Researchers Say Mining Intensifies Social Conflicts In Peru

A group of researchers from Berlins Humboldt University published a study where they say that mining activities are the leading cause of social conflicts in Peru. According to the study, which is titled n++Alternatives for the development of Perus mining regions,n++ one of the reasons that explains the unrest is the fact that the countrys economic policies do not allow for a large royalty collection from resource extraction and, therefore, there are few opportunities to reinvest those funds in mining cities and towns. On top of that, the experts say that the fall in commodity prices in the past years has worsened the situation. The experts expressed concerns over the fact that some firms are mining up to 660 metres deep, where the water table falls, and thus entire towns run out of water. Peru is the worlds No.2 copper producer and the sixth largest producer of gold.