By Ryan Dube
LIMA, Peru--Antimining protesters vandalized parts of property
owned by gold mining company Minera Yanacocha in northern Peru, the
company said Thursday, highlighting the challenges the firm
continues to face in developing its $5.0 billion Minas Conga copper
and gold project.
Yanacocha said about 400 protesters on Wednesday entered part of
its property near the El Perol lake in Peru's Cajamarca region. The
company said the protesters burned a container and pipes. It said
it evacuated its personnel and removed its machinery for security
reasons.
A spokesman from Yanacocha in Cajamarca said the property is
part of the concession of Minas Conga. Organizers of the protest
were reported as saying by local media that the demonstration was
against the development of Minas Conga. Efforts to contact the
organizers were not immediately successful.
About 150 protesters continued to occupy the property late
Wednesday. A spokesman for Newmont Mining Corp. (NEM), which has a
majority stake in Yanacocha, told Dow Jones Newswires Thursday that
all of the protesters have now left the property.
Yanacocha is 51.35%-owned by Newmont. Compania de Minas
Buenaventura SA (BVN, BUENAVC1.VL) has a 43.65% stake in Yanacocha
and the International Finance Corp. holds the rest.
Minas Conga has come under stiff opposition from local
politicians and residents, who say they are concerned about its
potential impact on the local water supply.
Violent protests last year against Minas Conga resulted in most
of the work at the project being put on hold. The company has
looked to ease the concerns over the project by building water
reservoirs that will increase the supply of water to local
populations before it starts mine construction.
Newmont said in its April annual report that it could reallocate
capital from Minas Conga to other projects outside of Peru if it is
unable to advance its current development plan.
Resolving opposition against Minas Conga has been seen as an
important test of the government's ability to end several other
social conflicts in Peru's key mining sector. Mining companies have
lined up investment projects worth $53 billion, but many of those
projects have been delayed due to community opposition.
Peru is a major global producer of copper, gold, silver and
other minerals.
Write to Ryan Dube at ryan.dube@dowjones.com
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