Reuters reported that Peru's government asked Southern Copper to provide details about the expected impact of its Tia Maria copper project on area water supplies.

Tia Maria, which is forecast to produce 120,000 tonnes of copper per year, is slated to start production in the Q2 of 2011. But the project, which the company has said that requires a nearly USD 1 billion investment has come under criticism from communities that are worried the development will put local water supplies and agriculture at risk.

Mr Fernando Gala the vice minister of mines said that "We've spoken to the company and asked it to provide area authorities with further details, so that they know what the implications are in terms of water."

Southern Copper said that it plans to use water found underground and not tap the 2 Principle Rivers that run through the area. Besides Tia Maria, Southern Copper is moving forward with an expansion at Toquepala which is expected to lift the mine's capacity to some 100,000 tonnes of copper per year.

(Sourced from Reuters)