By Ryan Dube
LIMA, Peru--Mines and Energy Minister Jorge Merino said Monday
that the $5 billion Minas Conga copper and gold project in northern
Peru is continuing as planned, denying local media reports that it
has been permanently suspended.
Local media reported Sunday that Minas Conga had been suspended
and "hundreds" of workers had been laid off.
Mr. Merino said he "emphatically denied" the reports.
"Officially I can say that…the project is continuing," Mr.
Merino said at a press conference.
An executive from Compania de Minas Buenaventura SAA (BVN,
BUENAVC1.VL), which has a minority stake in Minas Conga, also said
that the reports weren't correct.
Buenaventura has a 43.65% stake in Minas Conga, while Newmont
Mining Corp. (NEM) owns 51.35%. The World Bank's International
Finance Corp. owns the remainder.
Minas Conga has come under stiff opposition from local residents
and politicians in Peru's northern Cajamarca region over concerns
that it could hurt the supply of water of nearby communities. The
companies agreed last year to build reservoir dams first in order
to ensure the water supply before starting construction of the
mine.
The first reservoir dam was recently completed and another dam
is expected to be completed later this year.
Minister Merino added that there have been changes to personnel
at the mine project due the recent completion of the first
reservoir.
Write to Ryan Dube at ryan.dube@dowjones.com
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