Update from Reuters
UPDATE 2-Peru's Tintaya output normal despite protest
Tue May 24, 2005 06:58 PM ET
By Miguel Zegarra
AREQUIPA, Peru, May 24 (Reuters) - More than 2,000 people demanding more investment in local infrastructure broke into BHP Billiton's (BHP.AX: Quote, Profile, Research) Tintaya copper mine in southern Peru on Tuesday and sparked chaos, but production was unaffected, mine officials said.
"Mining activity has not been halted. Shifts have been conducted normally," spokemsan Richard Adahui told Reuters from the mine camp in the province of Cusco.
The mine, Peru's third biggest copper producer, has its head office in the southern city of Arequipa.
The mine's vice president Lucio Rios told RPP radio earlier the protesters were blocking entry to the mine and had set fire to grassland within the mine camp after clashing with and stoning police. Police had responded with tear gas.
"The situation is chaotic," he said.
Adahui said administrative staff had been evacuated starting from Monday, when around 500 protesters entered the camp.
He said there had been damage to administrative offices, where there were around 500 protesters. He gave no details.
Fires which had been started inside the camp had all been brought under control, he said, adding a statement would be released shortly.
MINING PROTESTS COMMON IN PERU
Tintaya was Peru's third biggest producer in March, producing around 12.1 percent of the country's copper output, behind Antamina and Southern Peru (SPC.LM: Quote, Profile, Research) (PCU.N: Quote, Profile, Research) , which had 39 percent and 33.5 percent, respectively, according to Energy and Mines Ministry data.
Antamina is owned by BHP Billiton (BHP.AX: Quote, Profile, Research) , Noranda Inc. (NRD.TO: Quote, Profile, Research) , Teck-Cominco Ltd. (TEKb.TO: Quote, Profile, Research) and Mitsubishi Corp. (8058.T: Quote, Profile, Research) .
Tintaya's production in March fell 11.2 percent because of mineral conditions.
Protests against mining are common in mineral-rich Peru by residents who fear their agricultural livelihood will be jeopardized or locals who say they are not seeing enough of the benefit from the vast investments by rich forign mining firms.
Oscar Gonzalez, vice president of the private National Society of Mining, Petroleum and Energy, said the protesters accused Tintaya of seeking to backtrack on social agreements made two years ago -- a charge he said the company denied.
Among other things, they were demanding a 125-mile (200-km) stretch of road be paved and other works worth $20 million, way beyond the current agreement to invest $1.5 million, Gonzalez, who is also president of Southern Peru, told CPN radio. |
