Newmont Halts Work At Peru's Conga Project Due Protests
09 Noviembre 2011 - 10:08AM
Noticias Dow Jones
Newmont Mining Corp. (NEM) said Wednesday that it has
temporarily halted work at its Conga project in northern Peru due
to a planned general strike.
The company said the giant Yanacocha gold mine, also run by
Newmont Mining, is operating normally.
"Yanacocha continues operating normally today. In anticipation
of today's planned general strike, we temporarily halted work at
the Conga project to reduce any potential for conflict," the
company said in a statement.
Protesters in northern Cajamarca region plan to hold
demonstrations against the development of the Conga copper and gold
project. Those protesters want Minera Yanacocha SRL, run by Newmont
Mining, to suspend Conga due to concerns about water supplies.
"We respect and honor everyone's right to engage in peaceful
demonstrations, and we urge those raising issues around the Conga
project to participate in the working dialogues sponsored by the
government," the company said.
Minera Yanacocha SRL is 51.4% owned by Newmont Mining, while
Compania de Minas Buenaventura SAA (BVN, BUENAVC1.VL) has a 43.7%
stake. The International Finance Corp. owns the remainder.
Conga's environmental impact study was approved in October
2010.
President Ollanta Humala on Sunday called for a peaceful
resolution to the dispute.
Protests last week caused Yanacocha to temporarily stop work
then at Conga to ensure the safety of its employees and the
protesters.
On Tuesday, Prime Minister Salomon Lerner, in a trip to northern
Peru, said that the government will ensure a respect for the rule
of law, and called for dialogue and for non-violent protests.
On Sunday, President Ollanta Humala said Sunday that his
administration will respect all contracts signed in the mining
sector.
Minas Conga will require an investment of $4 billion to $4.8
billion. Production at Conga is scheduled to begin in 2015, with
average output during the first five years of 580,000 ounces to
680,000 ounces of gold, and 155 million to 235 million pounds of
copper.
-By Robert Kozak, Dow Jones Newswires; 51-1-99927 7269;
peru@dowjones.com