By Ryan Dube
LIMA, Peru--Peru President Ollanta Humala said Wednesday that
the development of the Minas Conga copper and gold project in
northern Peru is in the hands of Minera Yanacocha, the company that
owns the deposit.
The $5 billion Minas Conga project has faced opposition from
residents and politicians in Peru's Cajamarca region over concerns
that it would deplete the local water supply. Violent protests
against the project last year left several people dead and led
Yanacocha to suspend construction work at the mine.
President Humala's administration has supported the development
of Minas Conga, but has struggled to help resolve the dispute. The
dispute was a key reason behind Mr. Humala replacing his prime
minister and other cabinet members two times within the first year
of his administration.
Yanacocha is currently building water reservoirs that it hopes
will help it win over local support by ensuring communities' water
supply.
In an interview with RPP television Wednesday, President Humala
said the development of the project is out of the government's
control and is with Yanacocha, which is majority owned by Newmont
Mining Corp. (NEM).
"In the case of Conga, as the state we've fulfilled what we had
to do, which was guarantee private property and guarantee public
order," Mr. Humala said. "Today, the rhythm that the Conga project
advances is completely in the field of the private company."
"It isn't a state problem," Mr. Humala added.
Newmont has a 51.35% interest in Minas Conga, while Compania de
Minas Buenaventura SAA (BVN) has a 43.65% stake. The World Bank's
International Finance Corp. owns the remainder.
Both the company and government officials have said that they
believe they are making advances in gaining community support for
Minas Conga. However, one of the project's main opponents,
Cajamarca Regional President Gregorio Santos, was reported saying
this week that he isn't interested in holding talks with
Yanacocha.
Resolving social conflicts that have delayed the development of
mining projects is one of the key challenges facing the sector in
Peru. The Andean country's economy is heavily dependent on the
mining sector, which accounts for about 60% of its exports.
President Humala's comments come before he leaves for an
official trip to Asia, where he will take part in the Asia-Pacific
Economic Cooperation summit in Bali, Indonesia, starting on Oct. 5.
Mr. Humala is also planning to travel to Thailand, where he is
scheduled to meet with that country's political and business
leaders.
Write to Ryan Dube at ryan.dube@wsj.com
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