Reuters reported that Peru has brokered a deal between the regional government of Moquegua and Anglo American to allow the global firm to build its USD 3 billion Quellaveco copper mine.

Mr Oscar Valdes PM od Peru said that Anglo American will make voluntary payments to communities near the mine of some USD 370 million during the mine's 30 years of operations including protests against Newmont Mining's USD 5 billion Conga project in the northern region of Cajamarca. We resolved the issue of Moquegua and Anglo American with Quellaveco, it was a long negotiation with steep demands.

Mr Luis Marchese Anglo American's country manager said that the company had won crucial community support for its water plan and hoped to secure government approval to start construction soon in the southern region of Moquegua.

Quellaveco would produce 220,000 tonnes of copper per year about a fifth of 2011 output in Peru. The project's environmental impact study was approved years ago but community opposition has delayed its development.

Brokering a deal on Quellaveco would mark a small victory for Valdes, who has been sharply criticized for failing to resolve the dispute over Newmont's project in Cajamarca. Five people have died in clashes with police this month.

Political opponents said that Mr Valdes and President Mr Ollanta Humala have been too quick to suspend civil liberties and back mining firms over citizens. Mr Valdes has called the protesters in Cajamarca extremists and blames local officials for inciting violence for political gain.

Source - Reuters

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