Bloomberg quoted Peru government, which seeks to curb anti-mining protests that threaten to derail USDN 50 billion in mining investment said companies must set up an environmental conservation fund as part of future contracts.

Mr Oscar Valdes the Andean country cabinet chief said the government will also create an office in charge of settling social conflicts related to mining and other industries. He didn’t provide details on the environmental fund.

He said that “The environmental guarantee fund will be used in case of any damage done to the natural surroundings. The government’s plan for responsible mining with the joint participation of the state, the community and investors will be fundamental to make mining investment viable.”

The company said in a statement that Newmont which halted work in November at Conga, Peru biggest investment project will pay more than USD 2 billion in taxes over the life of the mine. Newmont will invest USD 37.7 million in roads, schools and social programs in the Cajamarca region.

Mr Bret Rosen a strategist at Standard Chartered Bank in New York said “The efforts of the government and Newmont sound like a step in the right direction to quell some of the demands of the protestors. It will take time “to calm the demands of the anti-Conga movement and allow the project and others in the country to proceed without the specter of other outbursts of protests and violence.”

(Sourced from Bloomberg)