economy - Shougang upsets Peruvians

Not only in Africa, also in South America China companies increasingly find themselves in trouble by ignoring laws, environmental rules and labor relations, writes China Dialogue. Shougang, the fourth largest steel maker in China, operates already 14 years in the Peruvian town of San Juan de Marcona in an iron ore mine.

Shougang has received four fines for environmental infractions. The most serious of these, according to local activists, is Shougang’s pumping of waste water into the nearby San Nicolas Bay, where its deepwater port is located. In March 2006, the Ica regional government declared a state of “environmental emergency” in San Juan de Marcona, a largely-symbolic measure enacted to protest Shougang’s activities.

But also the low payment of its miners is an issue and the company had this year already four strikes.

Union leader Julio Ortiz said the situation remains tense because the company’s profit margins continue to increase, while workers continue to receive little in terms of better wages and benefits.

Polution by Shougang on only 50 metres from the population