Resource conflicts and the surprising price of slicing red tape

By James Munson, May 16, 2014, iPolitics

The fate of Peru’s banks are intimately tied to the severity of the country’s many mining conflicts.

As one of the world’s top mineral producers – 1.3 millions tons of copper and 3.4 million tons of silver in 2012, according to the U.S. Geological Survey – anxieties over water usage, unfair exploitation and pollution can seriously dent the Latin American nation’s economic prospects.

So the Superintendent of Banks, Insurers and Private Pensions Funds (SBS) — the country’s banking regulator — is right now devising a regulation that would force the companies it regulates to take stock of an investment’s social and environmental risk.