Peru: Morning News Roundup – Tuesday Jan 8

TAM and LAN Peru Begin Shared Flights

Agreement Reinforces the Existing Partnership Between TAM and the LAN Alliance

TAM and LAN Peru have begun their operational codeshare agreement. The partnership allows TAM to sell flights operated by LAN Peru between Sao Paulo and Lima, with the possibility of connections to the cities of Arequipa and Cuzco. In return, LAN Peru will offer multiple flight options to various Brazilian state capitals and cities served by TAM. TAM has already been operating shared flights with LAN Airlines (Chile) since November 2007, offering passengers the option of flights to 14 cities within Chile, such as Antofagasta, Calama, Concepcion, Iquique, La Serena, Puerto Montt, Punta Arenas and Valdivia. LAN clients have flights operated by TAM to 12 Brazilian cities at their disposal, among which are Rio de Janeiro, Salvador, Porto Alegre, Belo Horizonte, Florianopolis, Brasilia, Recife, Manaus and Porto Seguro. (PRNewswire – click here to read complete press release)

Houses of ALBA hold first international meeting in Peru

The first international meeting of representatives of the so-called Houses of the Bolivarian Alternative for the Americas (ALBA) -an integration initiative bolstered by President Hugo Chávez- will take place next January 24-26 in the Peruvian region of Puno, on the border with Bolivia, organizers said, press reports quoted on Monday. Delegates from Bolivia, Cuba, Nicaragua, Venezuela, and Peru are attending the meeting, the representative of the Houses of ALBA in Puno, Marcial Maydana, told Peruvian daily newspaper La República. He added that the meeting is assessing the Peruvian policies to fight poverty -a problem hitting 50 percent of the Peruvian population, Efe reported. (el universal – click here to read complete article)

Mine flood kills four in central Peru

Four miners were killed when a mine in central Peru was hit by floods and a mudslide, local officials said Monday. The mine owners said the accident happened at 9:50 p.m. local time Sunday (0250 GMT Monday) at the mine’s San Vicente production unit, five km from Vitoc, a city in Junin province. The mine company said it called rescuers after spotting flooding at the top of a ramp leading into the unit. Rescuers evacuated most of the workers in the area. Police identified the victims as Juan Valenzuela, 35; Ruben Carrion, 35; Daye Ninamanco, 30; and Gustavo Heredia, 22. (Xinhua – click here to read complete article)

John Buell: U.S.-Peru trade deal adds insult to NAFTA’s injury

Late last year, in especially untimely action, the U.S. Senate (with Sens. Susan Collins and Olympia Snowe voting yes) ratified the U.S.-Peru Free Trade Agreement. Just as its predecessor, the North American "Free" Trade Agreement, has been coming under increasing scrutiny and criticism even from some of its former advocates, Congress has now extended NAFTA’s concepts to one more South American nation. Like NAFTA before it, this deal risks further damage to the economic interests of working-class citizens not only in Maine and the U.S. but in Latin America as well. (bangor daily news – click here to read complete article)

Hochschild’s Profit to Miss Estimates; Shares Plunge (Update1)

Hochschild Mining Plc, Peru’s second- largest silver producer, fell the most in London trading since its 2006 initial public offering after saying profit this year will miss analyst estimates. Higher depreciation and lower-quality ore at its Ares and Selene mines will reduce gross margin and profit, the Lima-based company said today in a statement. Hochschild dropped as much as 147 pence, or 32 percent, to 310 pence, on the London Stock Exchange. “It looks like they’re attempting to curb some of the more bullish market earnings forecasts,” Damien Hackett, an analyst at Canaccord Adams Ltd. in London, said today by telephone. (Bloomberg – click here to read complete article by Brett Foley and Mark Herlihy)