PERU: THOUSANDS OF protesters overwhelmed Peruvian riot police on Monday, taking at least 60 hostage and defeating their push to end a week-long blockade in the mining region that has left cities without food or fuel.
Residents of Moquegua have seized roads, including Peru's main highway to Chile, and cut off access to a mine and smelter belonging to Southern Copper, the country's largest copper producer, to demand their province receive a bigger share of taxes paid by the company.
Police fired tear gas to disperse the crowds, but were beaten back and surrounded by club-wielding protesters who want more benefits from an economic boom that has generated windfall profits for mining companies. The protests started with 5,000 people and have grown to 20,000, police said.
"The situation here in Moquegua is out of control and the police must retreat. I have seven injured and am in trouble," said Alberto Jordan, a police chief taken hostage.
The blockade is the latest sign that president Alan García faces pressure to bring the benefits of the boom to the poor. Delays could erode support for his free-market programmes at a time when left-wing parties are eyeing Peru's next presidential election in 2011.
Mr Garcia's chief of staff, Jorge del Castillo, pleaded with local political leaders to negotiate an end to the stand-off and blamed left-wing political groups for rejecting a deal.
Road links have been severed to cities in Tacna, Peru's southernmost province, and the government has been forced to send tanker ships with food and gas to relieve shortages.
Peru's poverty rate, while falling, is almost 40 per cent. Residents in provinces like Moquegua say the boom passed them by. Moquegua blames the government for allowing Tacna to get a larger share of Southern Copper's taxes.
Southern Copper chief executive Oscar González urged the government to split revenue fairly between the provinces and move quickly to establish order."If the government doesn't declare a state of emergency, there will be more problems," he said. - (Reuters)