Southern Copper Says Peru Project Still Closed Despite Recent Peace Accord

A recent agreement aimed at resolving demonstrations at the Cuajone copper mine prompted the corporation to dismiss accusations against protest leaders, despite a continuous blockage of the mine's railway, the firm claimed in a statement. Since February 28, production has been halted.

Separately, Peru's Energy Ministry said that it had signed an agreement with Southern Copper to begin discussions with local people.

"If we were to shut for a year, the government would lose approximately 3.1 billion soles ($830 million) in taxes and royalties, as well as 8,000 direct and indirect employment. That is precisely what we want to prevent "Southern Copper's statement was supplemented.

Peru is experiencing a surge of demonstrations from indigenous communities alleging that mining companies are failing to provide adequate employment and money to underprivileged indigenous people.

Adrian Armas, the central bank's deputy governor, said last week that protests at copper mines including MMG's Las Bambas and Southern Copper's Cuajone are weighing on the economy.

Peru is the world's second largest copper producer, and mining is a significant source of cash for the government.

Protests erupted against many mining corporations in Peru in July, when leftist President Pedro Castillo was elected with the support of the country's poor mining districts.