By Robert Kozak
LIMA, Peru--Protesters are continuing to demand that Minera
Yanacocha close down its $5 billion Minas Conga copper and gold
project in the Cajamarca area of northern Peru.
Protesters want the company, run by Newmont Mining Corp. (NEM)
to stop work on the Conga project, including the building of water
reservoirs.
Violent protests last year led to a partial suspension of work
at the greenfield site. Opponents say that water supplies will be
threatened by any mine, something the company disputes.
More protests are planned for this week.
A tweet sent Monday from a Twitter account with the name of
Gregory Santos, president of the regional government of Cajamarca
and a staunch foe of the project, said, "We won't accept that the
lakes in Conga become waste pits for toxic wastes."
In an interview published Monday in newspaper El Comercio,
Energy and Mines Minister Jorge Merino said the Conga project will
proceed, although he noted that the company still doesn't have a
"social license."
"The government will support private investment, but we can't
impose a forced decision unless there is a majority in favor of the
development," Mr. Merino was quoted as saying.
In a statement last week, Yanacocha said its main focus is a
program to increase water-storage capacity and provide greater
availability of water to downstream users.
The company said the Chailhuagon reservoir was completed
recently and will more than double the storage capacity of the
Chailhuagon Lake.
"Construction of the Perol reservoir will only begin once we
obtain all the required permits, which we estimate could be secured
by the second quarter of 2014," Javier Velarde, a company official,
said.
He said the company will have to go through an "extensive public
consultation process" with the communities and stakeholders in the
area of influence of Perol Lake.
"For the remainder of the year, the company will only be working
on the construction of access roads, environmental management and
sediment control, as well as social investment projects aimed to
maximizing the community benefits of Chailhuagon reservoir," he
added.
The Conga project is located 73 kilometers from the city of
Cajamarca and close to Minera Yanacocha's existing Yanacocha gold
mine.
Production at Minas Conga is slated to have an average annual
output of 580,000 to 680,000 ounces of gold and 155 million to 235
million pounds of copper during its first five years.
Minas Conga is 51.35%-owned by Newmont Mining, while Compania de
Minas Buenaventura SA (BVN, BUENAVC1.VL) has a 43.65% stake. The
World Bank's International Finance Corp. holds the rest.
Write to Robert Kozak at robert.kozak@dowjones.com
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