LIMA-- Newmont Mining Corp. announced it will build reservoirs at its US$4.8 billion Minas Conga gold project before building the mine installations.
The project, suspended after environmental protests in November, will incorporate recommendations from a government- commissioned environmental review, Newmont’s Minera Yanacocha unit said today in an e-mailed statement. Continuity of investment will depend on whether the project is economically and socially viable, Yanacocha said.
“The first activity the company will do will be to build reservoirs to benefit surrounding communities,” Newmont’s Vice- President Carlos Santa Cruz said in the statement. “Construction of the project will continue if it can be done in a socially and environmentally responsible way and if risk-adjusted returns justify future investment.”
Peru’s government suspended the gold and copper project after protesters fearing the project would dry up local water supplies blocked highways and destroyed Newmont installations in November. The environmental review recommended relocating waste dumpsites and expanding reservoir capacity for farming communities in the northern Andean region of Cajamarca.
Newmont rose 16 cents, or 0.3%, to US$47.96 in New York trading today. Newmont partner Cia de Minas Buenaventura SAA’s American Depositary Receipts fell 26 cents, or 0.7%, to US$37.80. (Bloomberg/aph)
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