Zijin Mining to take 9.9% stake in Montage Gold
As part of the deal, the Lundin Family Trust also agreed increase its stake in the company from 17.7% to 19.9%.
Opponents began protesting in late March and have continued to hold demonstrations and block roads even though the company announced a 60-day “pause” in the project to allow time to allay opponents’ concerns.
Peru’s government declared a state of emergency for 60 days in the southern province of Arequipa Saturday after ongoing protests against Southern Copper Corp.’s (NYSE, LON: SCCO) $1.4 billion Tía Maria project claimed a fourth life.
Armed forces will help police restore order in the area and some constitutional rights will be suspended, including freedom of transit and the right to hold meetings, local newspaper El País reports (in Spanish).
Opponents began protesting in late March and have continued to hold demonstrations and block roads even though Southern Copper, a unit of Mexican mining giant Grupo Mexico, announced a 60-day “pause” in the project to allow time to allay local farmers’ concerns. They fear a new copper mine in the region will pollute land and water and hurt their crops.
Last month Peru’s Energy and Mines Ministry issued a statement saying that the company has guaranteed that it won’t touch water to be used for farming, and that dust from the mining process will also be controlled. The announcement followed Minister of the Environment Manuel Pulgar-Vidal’s declarations affirming that Tia Maria was “safe for the environment.”
Southern Copper, which has two mines and a smelter in the South American country, is awaiting a construction permit from the government so it can restart work on the project.
The protests against Tia Maria echo other fights between anti-mining groups, farmers and mining companies over the last few years over who gets to use precious water supplies in bone-dry areas of Peru.
The company estimates that Tia Maria will produce 120,000 tons of copper cathodes a year, for an estimated 20-year lifespan.
Peru’s government forecasts the country will produce 2.8 million tons of copper a year by 2016, about double its current production as a number of new projects come on stream.
5 Comments
Alan Garcia
When will people realise incorporating renewable energy and providing some of the benefits if it is the key to sustainability. The poor people in the moutains in Peru have been pissed on by big business based in Lima for the last 450 years. They normally have one shot at getting something out of a mine to help provide for their families for the next generations. Other wise they will be treated the same as they have been for generations.
Mike Failla
Perhaps the plant could use a pipeline from the ocean and build a desalinization plant therefore not using any water from any well or water source. Maybe then that would calm this situation down and allay the concerns for future generations.
Perhaps this would then become a win-wins situation? Or would agitators find something else? Just wondering I guess.
Sean C. Muller, PGeo
Working with indigenous peoples requires a certain level of sensitivity to establish trust. Once the trust is broken the repair is most difficult especially when these people are influenced by International NGOs. While bringing water from the Pacific and desalinating it might seem like an easy fix, it is not due to the pumping requirements to overcome due to the elevation change. A more logic solution that I used with a tribe in Central America is to find in mountain valley and construct a water supply project and low head hydro project. Give the electrical generation to the locals and provide them with a sustainable water supply to agriculture is the ticket to a successful solution. While there likely will be people to displace when the waters rise, provide them with land, farm tracts and better housing along with first water rights for agriculture and maybe the coexistence of mining with long term sustainability of local land use will remedy the situation.
SCMuller
Edgar Rodriguez Ancajima
Indigenous people?, Arequipa is the second city in Peru, Cocachacra is a land of farmers but they are not ignorant…Tia Maria is located few meters of the river, and all around is full of mineral…Southern polluted Moquegua and other cities of the world…now, they want to destroy the beautiful valley. And you, Mr Garcia (I supposed ,you are the ex president?) you signed the contract with Southern, u have responsibility in this conflict, can you tell me, what about Cajamarca?, Espinar?, what is the progress?, they have great mines, but people are poor, cities are poor…
Teamster Union Boss.
Do the miners have a Union? Try the ‘Teamsters Union’ in the Usa….. They would be glad to help you in your cause. President…. Jimmie Hoffa JR> Washington DC. USA. We are the worlds biggest & the strongest! We can/will kick some ass for you down there!!!!!!!!!