Creditors of the troubled Doe Run Peru company voted to sell the controversial metal smelting complex at La Oroya, Junín region, to Citibank, Peru's Energy and Mines Ministry (MEM) announced Oct. 11. The New York financial giant will have responsibility for reorganizing the smelter's debts and environmental management plan, as well as those of another scandal-ridden project that will be transferred, the Cobriza gold and copper mine in neighboring Huancavelica region. After three years of being idled by government order over pollution concerns, the decrepit Oroya smelter, which has been dubbed "Peru's Chernobyl," resumed limited operations in July. The local dispute over the issue bitterly divided the local community, pitting campesinos who oppose the smelter against residents employed by Doe Run, who were laid off when the plant was ordered shut. Last year, Doe Run Peru was cited by MEM for resuming construction of a tailings containment area at Cobriza without approval. The mine is still officially halted pending an environmental impact review. (Diario 16, Oct. 13; La Republica, Andina, Oct. 12; MineWeb, July 30; El Comercio, Oct. 18, 2011)

On Oct. 10, the US Justice Department announced the seizure of more than $31 million in funds allegedly "connected to an international money laundering scheme run by a drug trafficking organization operated by members of the Sánchez-Paredes family," a Peruvian clan deemed by US law enforcement to be a drug trafficking organization (DTO). The funds were held in nine US banks, including Bank of America, Wells Fargo, and JPMorgan Chase, none of which have been charged with any wrongdoing. Additional moneys in three Peruvian bank accounts have also been frozen. The US Attorney's Office for the Southern District of New York found that the family was using its gold mining interests as a front for cocaine trafficking:

In a dawn raid on Oct. 8, the Colombian National Police special Mobile Anti-disturbance Squad (ESMAD) stormed the Technological University of Chocó in the departmental capital of Quibdó, using tear gas to evict students had had been occupying the campus. Several students were injured, and one, Edwin Córdoba, is in critical condition at the city's hospital. Organizers say 12 students were arrested and two have been "disappeared." Students are continuing to demonstrate in front the university. 

Venezuela's populist President Hugo Chávez of the United Venezuelan Socialist Party (PSUV) was re-elected by 54.42% of the vote, with 90% of the ballots counted as results of the hard-fought race came in the night of Oct. 7. Young opposition candidate Henrique Capriles of the Primero Justicia coalition had 44.97%. Over 80% of Venezuela's 19,119,809 registered voters participated in the election. As the results were announced, Chávez supporters poured into the streets, with a massive and spontaneous party breaking out in front of the Miraflores presidential palace in Caracas. (VenezuelAnalysis, Reuters, AVN, Aporrea, Oct. 8)

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)

In an open letter Sept. 20, Human Rights Watch urged Peru's President Ollanta Humala to take steps to prevent the unlawful killing of protesters, noting growing incidents of deadly force. Local media report that at least 19 have died in protests over mineral projects since Humala took office last year. On the same day HRW issued the letter, National Police killed a protester at Barrick Gold's Pierina mine in Áncash region. The confrontation came as residents from Mareniyoc and other local villages pushed their way onto the company's property, prompting police guarding the entrance to open fire. Barrick temporarily suspend production at the mine following the clash, in which four campesinos were also injured.

On Oct. 1, the indigenous village of San Juan Bautista de Cañaris in Peru's northern region of Lambayeque announced the results of a consulta, or community consultation, on the proposed Cañariaco Norte open-pit copper mine, saying 1,896 members of the pueblo of some 4,000 voted by 95% to reject it. The results were immediately forwarded to the Energy and Mines Ministry (MINEM). Vancouver-based Candente Copper, which hopes to develop the project, issued a statement rejecting the consulta, saying the community had already approved the project in a "general assembly" held on July 8. The statement noted that the "general assembly" has been called for judicial authorities after Cristobal Barrios, the president of the Cañaris Campesino Community, had refused to convene it. The statement said the "general assembly" had been confirmed as "legally binding" by MINEM, and charged that Barrios had called the consulta "unilaterally" in violation of Peru's General Law of Campesino Communities (PDF). Cañaris community representatives, in turn, noted that more residents participated in the consulta than in the "general assembly," and insisted that the new vote represents the will of the community. (Marketwire Canada, Bloomberg, Oct. 2; El Comercio via Gato Encerrado, Diario Correo, Oct. 1)

Peru's coca crop increased by some 5.2% in 2011, according to the UN Office on Drugs and Crime (UNODC)—marking the sixth consecutive year that cultivation increased in the Andean nation. Some 64,400 hectares of coca cultivation were detected in satellite images, compared to the estimated 61,200 hectares cultivated in 2010. While the Upper Huallaga Valley and Apurímac-Ene River Valley (VRAE) continued to account for some 50% of Peru's illegal coca crop, the area under cultivation in these zones increased by only 1%. However, cultivation was up by over 40% in northern Peru, with the provinces of Putumayo and Bajo Amazonas (both in Loreto region) especially named—areas newly opened to cultivation, where the government carries out no eradication campaigns. "Drug traffickers are becoming more efficient," said Flavio Mirella, chief of UNODC's Peruvian office, during a presentation of the report in Lima. "Traffickers need less coca leaf to produce more cocaine. Routes of supply are diversifying and producing areas are getting closer to certain routes of exit" toward Bolivia and Brazil, he said. (Bloomberg, UNODC press release, Sept. 27; BBC News, Sept. 26*)