SÃO PAULO Social
conflicts over water reserves have deferred more than $7
billion in Perus project investments since last year.
Those problems are expected to
continue, Pedro Martínez, president of Peruvian mining,
oil and energy society SNMPE, had said at the end of last year.
"The problems faced by the (Peruvian) mining sector this year
caused a delay of $7.2 billion in investments. For 2013, the
same will happen with projects worth $3.6 billion; and for 2014
there are four deferred projects (valued at) $7.1 billion," he
The epicenter of the conflicts
was Newmont Mining Corp.s Minas Conga project in
Perus Cajamarca region.
Locals fear that the arrival of
the project will deplete water reserves in the region.
Construction work was suspended
at the site after five people dies in violent protests.
Peruvian president Ollanta
Humala replaced six cabinet ministers amid the backlash that
followed the fatalities.
Southern Copper Corp.s
Tía Maria also was halted due to protests by local
The company is expected to
present a new environmental study and intends to resume work
"This is more of a political
problem than a problem of lack of water," a commercial
executive at MK Metal Trading Peru SAC-Nexxtrade told
AMM sister publication Metal Bulletin. "If
large projects like Conga, Las Bambas and Tía Maria
manage to start producing by 2015 in a peaceful manner, then
Perus copper output will increase
A version of this article was
first published by AMM sister publication Metal