Permitting delays impact British Columbia projects valued at C$38 billion, AME says
British Columbia's exploration sector has over 60 critical mineral projects waiting for permits.
Newmont Mining announced on Wednesday protesters are now allowing access to the Yanacocha gold mine in northern Peru. A local paper reported protesters decided to remove roadblocks following an agreement with the mines ministry and regional authorities.
Newmont on Monday was forced to shut down operations at Yanacocha, South America’s largest gold mine with annual output of 1.5 million ounces. Newmont and local partner Buenaventura are also advancing a $4.8 billion project to expand the mine which would be the largest investment ever in Peru.
Newmont (NYSE: NEM) gave up 4.8% on Wednesday on a bad day for gold stocks across the board and the counter has now lost 6.8% since the news broke. The company is worth $30.8 billion the NYSE and has outperformed its peers and the S&P 500 this year – it is up 1.4% for 2011 versus a 5% decline in the broader market, a 9% thumping for Barrick, the world’s number one gold producer, and the besieged Freeport McMoran which is worth a third less than it was at the start of the year.
Newmont on Wednesday urged protesters to continue three-way talks with the company and the government over their demands for more local investment. Protesters decided to lift the blockades following an agreement with the Mines and Energy Ministry and regional authorities, and plan to present a list of demands to Yanacocha Thursday according to newspaper El Comercio.
There are some 200 operating mines in Peru and protests and strikes have increased since July when left-leaning Ollanta Humala was sworn in as president. Reuters reports with a 65% approval rating Humala’s political honeymoon has been sweeter than anyone predicted and it could go on for months if he can ramp up social spending even as a dismal global economy tempers Peru’s long boom.
Reuters broke the news on Monday: Besides the protest at Yanacocha, Humala’s labour ministry has been trying for weeks to broker a new wage pact between striking workers at Freeport-McMoRan (NYSE:FCX) Cerro Verde copper mine, where some frustrated workers started a hunger strike on Monday.
Investment site Trefis had a thorough look at the impact of the shutdown and believes although Yanacocha represents almost 25% of Newmont’s (NYSE: NEM) total daily gold output the issue will be resolved soon and the overall impact of this closure will be much minimal.
2 Comments
Juan Vera
Peru is a lucky and rich country having mineral resources. Why do their own people do not want to become rich people ?…..Agriculture and livestock uses more water that mining industry. Agriculture accounts for more than 75% disposal of water reservoirs.
Petercourt 28
Why don’t Newmont build dams for their own use and leave the local water supply alone, especially as they are certain the man made dams will be more than adequate for the locals, why can’t they in turn be adequate for Newmont’s needs ?
I am in the industry, working in close by La Zanja and various other projects in Sth America, especially in Peru, it saddens me that we hold “ourselves” up as model operators when we know damn well we would not get away with half the nonsence at home.