Peru Minister Says Minas Conga Continuing as Planned

By Ryan Dube

LIMA, Peru--Mines and Energy Minister Jorge Merino said Monday that the $5 billion Minas Conga copper and gold project in northern Peru is continuing as planned, denying local media reports that it has been permanently suspended.

Local media reported Sunday that Minas Conga had been suspended and "hundreds" of workers had been laid off.

Mr. Merino said he "emphatically denied" the reports.

"Officially I can say that…the project is continuing," Mr. Merino said at a press conference.

An executive from Compania de Minas Buenaventura SAA (BVN, BUENAVC1.VL), which has a minority stake in Minas Conga, also said that the reports weren't correct.

Buenaventura has a 43.65% stake in Minas Conga, while Newmont Mining Corp. (NEM) owns 51.35%. The World Bank's International Finance Corp. owns the remainder.

Minas Conga has come under stiff opposition from local residents and politicians in Peru's northern Cajamarca region over concerns that it could hurt the supply of water of nearby communities. The companies agreed last year to build reservoir dams first in order to ensure the water supply before starting construction of the mine.

The first reservoir dam was recently completed and another dam is expected to be completed later this year.

Minister Merino added that there have been changes to personnel at the mine project due the recent completion of the first reservoir.

Write to Ryan Dube at [e-mail]

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