Southern Copper says Peru mine remains halted despite latest deal to end protests

By Valentine Hilaire

(Reuters) – Southern Copper Corp mentioned on Wednesday that its Peruvian mine stays closed after six weeks of a standoff with protesters, accusing Peru’s authorities of failing to intervene to ensure safety for its 1,300 staff and their households.

A current deal geared toward ending protests on the Cuajone copper mine required the corporate to withdraw complaints towards protest leaders, amid a unbroken blockade of its railway to move minerals and provides, the corporate mentioned in an announcement. Manufacturing has been suspended since Feb. 28.

Peru’s Power Ministry mentioned in a separate assertion that it had additionally reached an settlement with Southern Copper to begin talks to search out frequent floor with native communities.

“If we closed for a 12 months, the federal government would cease receiving greater than 3.1 billion soles ($830 million) in taxes and royalties, and eight,000 direct and oblique jobs could be misplaced. That is what we need to keep away from,” the Southern Copper assertion added.

Peru is dealing with a wave of protests from indigenous communities that accuse mining companies of not offering sufficient jobs and cash to impoverished locals.

Central financial institution official Adrian Armas mentioned final week that protests hitting copper mines corresponding to MMG’s Las Bambas and Southern Copper’s Cuajone are weighing down the financial system.

Peru is the world’s No. 2 copper producer and mining is a key supply of tax income.

Protests hit a number of mining firms in Peru when leftist President Pedro Castillo took workplace final July after profitable the election with assist from the nation’s impoverished mining areas.

($1 = 3.7330 soles)

(Extra reporting by Marcelo Rochabrun; Enhancing by Kenneth Maxwell)