Peru begins close scrutiny of Newmont mine
Jan
25
Written by:
25/01/2012 15:09
Work currently suspended due to protests
The Peruvian government is monitoring the situation at Newmont's Conga gold and copper mine where operations have been suspended for two months following an 11 day blockade of the town of Cajamarca by anti-Conga protesters.
The government had declared a state of emergency after 33 people died during clashes. Local campaigners want greater consultation over the investment – the mine is the biggest single investment in the country’s history. Newmont said it was losing $2m for every day the mine remained closed.
Water supply and pollution of waterways were among protesters’ key concerns. In an attempt to break the current deadlock, three international consultants have been selected by the government to review the situation at Newmont Mining Corp's $4.8bn mining complex. Their review will focus on the mine's impact on the local water supply.
According to the Financial Times, the province of Cajamarca receives $45m in mining taxes in 2011, but almost half its residents still live in poverty and almost a third had no access to water and sanitation.
The government also announced it will invest more than $1.6bn in Cajamarca’s sanitation and water infrastructure, as well as rail, road, power and communication links. Who says protest never gets you anywhere?
This story has been added to our corporate database. The database powers all our live buyers' guides, giving the score for each company on our rankings tables.