Peru Priests to Lead Talks in Minas Conga Mining Dispute

LIMA--Two well-known Catholic priests will lead talks on Monday in northern Peru aimed at restoring peace following violent protests against the Minas Conga mining project.

Parts of the Cajamarca region remain in a state of emergency, declared by Peru President Ollanta Humala last week following protests in which five people died and more were injured.

Priests Miguel Cabrejos and Gaston Garatea are scheduled Monday to meet with antimining activists, including the regional president of Cajamarca, Gregorio Santos, who is one of the main leaders of the protests.

"There needs to be a lot of flexibility on all sides in order to create peace," Msgr. Cabrejos said Monday in a televised interview.

Opponents of the Minas Conga copper and gold mine project have marched for weeks, pressuring the government to kill the project. President Humala has supported the approximately $5 billion project run by Minera Yanacocha, majority-owned by Newmont Mining Corp. (NEM).

"What Mr. Santos must understand is what is best for Peru. This is what the facilitators have to tell him," Prime Minister Oscar Valdes told Canal N television.

Police in Cajamarca last week briefly detained antimining activist Marco Arana, a former priest, who now leads a left-leaning political party known as Earth and Liberty.

Antimining protesters attacked and destroyed government buildings last week.

Opponents want the government to cancel Minas Conga, saying it will hurt water supplies. The company plans to build reservoirs in order to ensure more water is available.

The government and Minera Yanacocha called a temporary halt to work late last year following protests but have since said the project will proceed.

Peru is one of the world's largest producers of gold, copper, zinc, silver and other minerals. Economists say canceling Minas Conga would send a bad message to investors.

Production at Minas Conga is slated to have an average annual output of 580,000 to 680,000 ounces of gold and 155 million to 235 million pounds of copper during its first five years.

Minas Conga is 51.35%-owned by Newmont Mining, while Compania de Minas Buenaventura SA (BVN, BUENAVC1.VL) has a 43.65% stake. International Finance Corp. holds the rest.

Write to Robert Kozak at [e-mail]