* Government says to study auditors recommendation
* Mine would be most expensive in Peruvian history
* Local foes reiterate opposition
LIMA, April 17 (Reuters) – A team of independent
environmental auditors said on Tuesday U.S.-based Newmont Mining
Corp should make “substantive improvements” to its $4.8
billion Conga project in Peru, which has been stalled by
community opposition.
The proposed gold mine, the biggest investment in the
history of Peruvian mining, would replace a string of alpine
lakes with reservoirs. Local protesters, led by the president of
the northern Andean region of Cajamarca, say it would bring
pollution or hurt scarce water supplies.
The Conga dispute has the highest profile of the more than
200 environmental conflicts that President Ollanta Humala is
trying to solve to avert delays on Peru’s $50 billion pipeline
of mining and energy projects.
“There’s no such thing as zero environmental impact. You
need to find a balance between economics, the environmental,
social needs and technical ones,” said Rafael Fernandez Rubio,
one of three European environmental experts hired by Peru’s
government to review Newmont’s mitigation plan for the mine.
Newmont has indicated it is willing to fine-tune its
mitigation plan for the project.
It has also said the reservoirs would provide steadier
supplies of water.
“Conga’s reservoirs would more than double the current water
storage capacity and would provide a reliable, year-round water
supply to downstream users, something they don’t currently have
as a result of the dry season,” the company said.
Prime Minister Oscar Valdes, who the president promoted from
interior minister in December and charged with quashing local
opposition to the mine, told reporters the government will now
review the 260-page report from the auditors, who analyzed the
water component of Newmont’s 7,000-page mitigation plan.
Some of the recommendations by the auditors could drive up
the costs of the project.
“It’s not our mission to say if the project is viable or not
… we’ve just tried to improve its technical aspects,” said
another auditor, Luis Lopez Garcia. “Some measures could be
implemented quite easily but others would require economic
studies to see if they make sense.”
Mines and Energy Minister Jorge Merino Tafur said the
independent review showed Peru was paying more attention to
environmental concerns after centuries of mining that often went
unchecked.
“I hope everyone understands that investments are very
important but only when you take into account factors like water
and sustainable development,” he said.
Gregorio Santos, the left-wing president of the region of
Cajamarca, who has defied Humala’s calls to let the mine be
built, reiterated his opposition to the project.
“The private sector in Peru must understand that you can’t
cause enormous damage to ecosystems in the pursuit of big
profits,” he said.
