Peru seems poised to move forward with the controversial expansion of the Camisea gas project in the lowland rainforest of Cuzco region, following the Jan. 7 release of a new document by the Vice-Ministry for Interculturality. The document is an official response to consortium leader Pluspetrol's own response issued a week earlier to the Vice-Ministry's objections to the Environmental Impact Assessment for the project. The new response says the Vice-Ministry is lifting 34 of its 37 objections to the impact study. The remaining three points concern protection of the watershed of the Río Paquiría, which could impact where the consortium conducts seismic tests. But the statement apparently raised no concerns about isolated indigenous bands living in the concession area, which overlaps with the buffer zone of Manu National Park, hailed by UNSECO as having a level of biological diversity that "exceeds that of any other place on Earth." 

Peru's Vice-Ministry of Inter-Culturality (VMI) on July 12 issued a critical report temporarily blocking expansion of the country's biggest gas project and asserting that two "isolated" indigenous peoples living in the area could be made extinct if it goes ahead. The VMI report is a detailed review of the Environmental Impact Assessment (EIA) of the planned expansion of the Camisea project in the southeast Amazon, which was written by the operating company, Pluspetrol, together with UK consultancy Environmental Resources Management (ERM). Approval of the EIA is currently pending by Peru's Ministry of Energy (MEM). According to the VMI, the health, "traditional economic activities" and ways of life of the indigenous peoples in "initial contact" and "voluntary isolation" would be severely impacted and two of them, the Nanti and the Kirineri, could be made "extinct."

Peru's Minister of Mines and Energy, Jorge Merino, assured international investors Dec. 21 that his government will make every effort to see the controversial Conga and Tía María mining projects move forward in 2013. The two projects, in Cajamarca and Arequipa region, respectivamente, have both been suspended after campesino protests.  The pledge is part of the Ollanta Humala government's plan to attract $10 million in mining investment in 2013, $10 million more than this year. Merino also vowed to build new compression plants to expand the capacity of the trans-Andean Camisea gas pipeline from 1,200 cubic feet to 1,600. (El Comercio, Dec. 21)

Peru's Amazonian organizations AIDESEP, FENAMAD, ORAU and COMARU last week announced plans to sue both the government and oil companies over proposals to expand the huge Camisea gas project into land inhabited by "uncontacted" or isolated tribes. A consortium of companies in charge of the bloc—including Hunt Oil of Texas, Spain's Repsol and Argentina's Pluspetrol—plans to cut hundreds of testing tracks through the forest, detonate thousands of explosive charges, and drill exploratory wells. Some 75% of Block 88 lies inside the Nahua-Nanti Territorial Reserve, created to protect uncontacted and isolated peoples who are extremely vulnerable to disease and development projects on their land.

US Defense Secretary Leon Panetta, meeting with President Ollanta Humala in Lima Oct. 6, secured an agreement to re-negotiate Washington's 60-year-old defense cooperation pact with Peru. Panetta said updating the 1952 accord would "improve our ability to conduct joint activities, to do training and other exchanges. Ultimately that will help us deal with shared security challenges in the future." On the eve of the visit, the Department of Defense issued a press release broadly outlining new measures called for in the 2012 Western Hemisphere Defense Policy Statement—including plans to invite Peru to participate in a US program of Ministry of Defense Advisers (MODA), currently being pioneered in Afghanistan. "If Peru accepts, MODA will embed a technical expert in the Ministry of Defense for up to two years," the DoD statement said. "The expert will provide consistent technical advice on issues like budgeting, acquisition, procurement, planning and strategic planning." (Reuters, Oct. 7; Peruvian Times, Oct. 6; DoD press release, Oct. 5)