* Anglo American hopes to start construction this year
* Quellaveco would produce 220,000 tonnes of copper per year
* Negotiations resume over Newmont mine in Cajamarca
LIMA, July 9 (Reuters) – Anglo American hopes to begin
construction of its $3 billion Quellaveco copper project in Peru
soon and has won crucial community support for its water plan,
the global mining company said on Mon day.
Luis Marchese, Anglo American’s country manager for
Peru, said the company is now waiting for construction permits
from President Ollanta Humala’s government.
Humala has encouraged companies to move ahead with a $50
billion pipeline of mining projects, but has had limited success
overcoming disputes nationwide over the spoils of natural
resources.
Quellaveco would produce 220,000 tonnes of the red metal per
year, about a fifth of Peru’s 2011 copper output. The project’s
environmental impact study was approved years ago by the
government.
A series of accords, including the crucial issue of water
access, has been reached with the local community, Marchese
said. The miner still needs to reach a deal on contributions to
the local area for social and other programs.
“We are in the dialogue process … we are seeking the
relevant permits and hope these can be obtained as soon as
possible,” Marchese told Reuters.
If construction starts on Quellevaco it would mark a rare
bright spot in Peru’s mining sector, which has been roiled by
opposition led by local environmental and political groups for
months. Poverty is still widespread in provinces where most
mines are built and many locals complain of being left behind by
the country’s decade-long economic boom.
The government called in Roman Catholic leaders to start a
new round of mediation o n M onday to end eight months of protests
against Newmont Mining’s proposed $5 billion Conga gold
mine.
Protests against the project, the biggest in Peruvian
history, turned deadly last week and have prompted calls for
Humala to fire his prime minister and interior minister for
leading a harsh crackdown.
Meanwhile, Humala’s environment minister, Manuel Pulgar
Vidal, said o n M onday the government would lift a freeze on bank
accounts of the municipality of Espinar, in the southern region
of Cusco.
The government froze the accounts in May over worries that
the town’s mayor was using public money to finance protests
against Xstrata’s $1.5 billion Antapaccay copper
project, slated to open next month. Humala’s government is
trying to broker a deal between the town and the miner over
voluntary financial contributions Xstrata makes to the municipal
budget.
Water is often a source of conflict in the world’s No. 2
copper producer. Farmers fear companies will pollute alpine
lakes or use up scarce water resources they need for their
crops.
Official data shows at least 15 people have died during
Humala’s term in protests over natural resources, and 174 were
killed in similar circumstances from 2006 to 2011 on the watch
of his predecessor, Alan Garcia.
The government suspended civil liberties in northern
Cajamarca, near Newmont’s Conga project, last week after clashes
between protesters and police turned deadly. Critics said the
government was too quick to give up on mediation and resort to
force.
Anglo American hopes to begin construction later this year
of Quellaveco, located in the southern region of Moquegua,
Marchese said. Construction will take 44 months.
“We are maintaining our start date,” he said. “We hope to
have good news soon.”
Anglo American operates the Collahuasi mine in neighbouring
Chile, the world’s top copper producer, with Xstrata. It is also
trying to settle a multimillion dollar dispute with Chile’s
state-run Codelco.
