Peru's Miners Yanacocha seeks new solutions for stalled mine project
Minera Yanacocha, owner of Minas Conga Copper-Gold project, said late Saturday that it will seek technical and economic alternatives in order to allow work to resume on the stalled US$4.8-B project.
Violent protests by anti-mine groups late last year led the administration of President Ollanta Humala and Newmont Mining Corp., (NYSE:NEM) which runs Minera Yanacocha, to put a halt to work on the project in the Cajamarca region of northern Peru.
Following the release Tuesday of a report on water use at Minas Conga carried out by 3 international consultants, President Humala Friday suggested the project could proceed if the Company complied with changes suggested by the experts.
The report by the international experts has ratified unquestionably the environmental impact study, or EIA, approved by the Peruvian government in October 2010. While the experts have proven that the EIA meets with national and international standards, we recognize that every study can be improved, Yanacocha said in its statement.
In its most recent statement Yanacocha said it will again evaluate technical and economic alternatives.
Economists say cancelling the project would send a bad signal to investors. Peru is one of the World's largest mining countries for Copper, Gold, Silver, Zinc, Tin and other minerals.
Yanacocha hopes to have production up and running at Minas Conga by the end of Y 2014 or early Y 2015. Production is seen at an average annual output during the 1st 5 yrs of 580,000 to 680,000 oz of Gold and 155 to 235-M lbs of Copper.
Newmont has a 51.35% interest in Yanacocha, while Compania de Minas Buenaventura SA (NYSE:BVN), (VL:BUENAVC1) has a 43.65% stake in Yanacocha, with the International Finance Corp. holding a minority stake.
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.