Yanacocha/Newmont Mining suspends $4.8 billion Peru Gold Mine Conga Operation
At least 20 people, including eight with gunshot wounds, were injured Tuesday in clashes between opponents of the Conga project and police who used firearms.
Newmont Mining Corp. Suspends $4.8 Billion Peru Gold Mine Operation After Violent Peasant Protests Over Water Supply
Andean people from the communities neighboring the Conga mine protest in front of the Laguna Cortada, in Cajamarca, Peru, on November 24, 2011. Mining, which drives the economy of Peru, had paradoxically triggered most of the social conflicts in poor areas, as in Cajamarca, where a strike has been called for November 24 to protest against mining environmental impact. ERNESTO BENAVIDES/AFP/Getty Images
Indigenous peruvians say the conga mine project threatens local environment
Indigenous peruvians say the conga mine project threatens local environment
LIMA, Peru -- A $4.8 billion gold and copper mining project, Peru's biggest such investment, was declared suspended Tuesday after increasingly violent protests by highlands peasants who fear for their water supply.
At least 20 people, including eight with gunshot wounds, were injured Tuesday in clashes between opponents of the Conga project and police who used firearms, Cajamarca state regional health director Reynaldo Nunez told Canal N television. He said one person was in critical condition and the injured included police.
"After discussions with the government, it was agreed that to help restore public order, the project would be suspended," Newmont Mining Corp. spokesman Omar Jabara told The Associated Press via email.
Denver-based Newmont is the majority owner of Conga, which was to begin production in 2015 and is an outgrowth of Yanacocha, Latin America's biggest gold mine.
However, leaders of the open-ended protest against the planned mine that began Thursday in the northern state bordering Ecuador said they would not halt the action until the project is canceled.
Cajamarca's president, Gregorio Santos, told the AP that opponents want "a legal document that definitively eliminates" the project.
At a Lima news conference, Prime Minister Salomon Lerner did not answer a reporter's question of whether the suspension was temporary or definitive.
The protests have been increasingly violent, including vandalism on the mine's property.
The Yanacocha consortium, which includes the Peruvian company Buenaventura Mining Co. and the International Finance Corporation, said in a statement that the suspension was "required" by the government "for the sake of re-establishing tranquility and social peace."
Lerner, appearing at a the news conference with Newmont Vice President Carlos Santa Cruz, said the government was forging "a new relation between communities and mining, a relation that was historically marked by mistrust."
That includes, Lerner said, involving the local populace in decisions involving mines to "dispel all doubts and guarantee, as a priority, water for human consumption."
Local protest leader Milton Sanchez was not appeased.
"We regret that the government's reaction came after the spilling of blood in which today we have 17 wounded," he told the AP by phone. "We peasants of Cajamarca feel tremendously defrauded by (President) Ollanta Humala and really consider him a traitor."
Humala, a center-leftist, had told Cajamarca residents before his June election that he would guarantee their water supply was more important to him than gold.
Before the suspension announcement, government officials continued to insist the protests did not enjoy widespread support.
"We regret the intransigence of the leaders who do not want to engage in dialogue," Interior Minister Oscar Valdes told reporters. "We regret that they are against their own population, children who aren't going to school, dairy farmers who are losing their milk."
Cajamarca is one the most heavily mined states in Peru, whose economy has been booming due high metal prices. Mining accounts for 61 percent of the South American nation's exports.
But peasants who live near mines complain that the government does little to ensure they don't contaminate or diminish water supplies.
Across Peru, there are currently more than 60 disputes over alleged damage to water supplies from mines, the country's ombudsman's office says.
An 11-page Environment Ministry study of the Conga project completed last week urges modifications to ensure water sources are protected, especially regarding the replacement of four highlands lakes by man-made reservoirs.
Local residents fear the displacement of those lakes could dry up an important aquifer. The project is located more than two miles (3,500 meters) above sea level, above the headwaters of two rivers.
Environment Minister Ricardo Giesecke said after the study was leaked Friday that its conclusions did not amount to a rejection of the mine but rather guidelines for improving it.
That only further angered protesters and a deputy environment minister quit over the government's handling of the protests.
The Mining Ministry approved the project in October 2010 and by law judges the environmental soundness of mining projects.
Environmental activists contend the ministry is heavily influenced by the industry and biased against environmental protection.
More than $40 billion in mining investments were lined up before Humala's June election, and the mining industry agreed at his urging to a windfall tax to pay for social welfare programs that the government says will net $1 billion a year in revenues.
Associated Press writer Frank Bajak reported this story from Bogota, Colombia, and Carla Salazar reported in Lima. AP writers Franklin Briceno and Martin Villena in Lima contributed to this report.
Published on 12/05/2011 peakwater.org/
“LIMA, Peru — A $4.8 billion gold and copper mining project, Peru’s biggest such investment, was declared suspended Tuesday after increasingly violent protests by highlands peasants who fear for their water supply.
At least 20 people, including eight with gunshot wounds, were injured Tuesday in clashes between opponents of the Conga project and police who used firearms, Cajamarca state regional health director Reynaldo Nunez told Canal N television. He said one person was in critical condition and the injured included police.
“After discussions with the government, it was agreed that to help restore public order, the project would be suspended,” Newmont Mining Corp. spokesman Omar Jabara told The Associated Press via email. Denver-based Newmont is the majority owner of Conga, which was to begin production in 2015 and is an outgrowth of Yanacocha, Latin America’s biggest gold mine.”
Read More: The Huffington Post
24 Nov 2011 ... People in the Cajamarca region say the proposed Conga mine will cause
pollution and ... The $4.8bn (£3.1bn) Conga project would be the biggest mining
... with local communities and meet the highest environmental standards. ... taxes
on mining companies and given indigenous communities the right to ...
Peru approves consultation law 07 SEPTEMBER 2011, LATIN AMERICA & CARIBBEAN
Peru cancels copper mine project 09 APRIL 2011, LATIN AMERICA & CARIBBEAN
Peru moves on illegal gold miners 20 FEBRUARY 2011, LATIN AMERICA & CARIBBEAN
'Two killed' in Peru mine attack 03 NOVEMBER 2009, AMERICAS
Peru country profile 06 DECEMBER 2011, COUNTRY PROFILES
Related Internet links
Mining proves a test of mettle for Peru's ambitions of economic development
The Conga mining project furore typifies the pitfalls developing countries face when trying to monetise their natural resources
Farmers in Cajamarca, northern Peru, came out in force to protest against the Conga mining project. Photograph: Paolo Aguilar/EPA
The resignation of Peru's deputy environment minister amid violent protests against the country's largest ever mining project has highlighted how weak institutions, unable to ensure decisions are made on the basis of robust information, undermine green policymaking in Latin America.
Peru strikes a vein of moderation
Yanacocha is majority owned by U.S. firm Newmont (51.35%), with local miner Buenaventura's Minera Condesa company (43.65%), and the International Finance Corporation, a unit of the World Bank, with the remaining 5%. (More...)
Richard OBrien, Newmonts President and Chief Executive Officer, said, "Newmont has nearly two decades of successful partnerships with the governments and communities at our Peruvian operations. (More...)
A STATE OF emergency has been declared in part of Peru over protests about mining in the country. President Ollanta Humala declared a 60-day state of emergency yesterday in a northern region wracked by protests against a highlands gold mine by peasants who fear for their water supply. The emergency restricts civil liberties such as the right to assembly and allows arrests without warrants in four provinces of Cajamarca state. These areas have been paralyzed for 11 days by increasingly violent protests against the $4.8-billion Conga gold-and-copper mining project, of which the US-based Newmont Mining Corp is the majority owner.  LIMA, Dec 5 (Reuters) - Peruvian President Ollanta Humala declared a state of emergency late on Sunday to quell protests against Newmont Mining's $4.8 billion Conga gold mine project that have hobbled the region of Cajamarca for 11 days.  LIMA, Dec 5 (Reuters) - Security forces fanned out across Peru's Cajamarca region on Monday to enforce emergency measures decreed by President Ollanta Humala to put an end to 11 days of protests against a $4.8 billion gold mine project. Humala, a former army officer, called leaders of the environmental protest "intransigent" after weeks of mediation efforts failed again late on Sunday - prompting him to give the military and police extraordinary powers to end rallies that have shut roads, schools and hospitals in Cajamarca.  LIMA Dec 6 (Reuters) - Peru's counterterrorism police on Tuesday detained two leaders of protests that have stalled Newmont Mining's $4.8 billion Conga gold mine project, in a widening crackdown by President Ollanta Humala. Wilfredo Saavedra, the leader of the Environment Defense Front of Cajamaraca, and Milton Sanchez, the head of a civic association, said they were detained after addressing a panel in Peru's Congress.  LIMA, Peru -- President Ollanta Humala's tightrope act was never going to be easy: keeping Peru's economy booming while cracking down on the mining industry's environmental excesses. Now, just four months after taking office, the president is struggling to regain his balance after violent protests in the Andes forced the suspension of the proposed Conga gold and copper mine, a $4.8 billion project heralded as Peru's largest-ever foreign investment.  President Ollanta Humala declared a state of emergency in four provinces in Cajamarca following increasingly violent protests against the $4.8 billion Minas Conga gold and copper project. 
A 60-day state of emergency has been declared in northern Peru after violent protests against a $4.8bn project to extend a gold mine, which residents fear will contaminate their water supply. The emergency restricts civil liberties, such as the right to assembly, and allows arrests without warrants in four provinces of Cajamarca state that have been paralysed for 11 days by protests against the Conga gold and copper mining project.  A two-month state of emergency is in effect in northern Peru following violent protests over a gold mine project that critics fear will taint and diminish water supplies. The emergency declaration restricts certain civil liberties such as the freedom of assembly and allows arrests without warrants in four provinces of Cajamarca state that have seen nearly two weeks of protests against the $4.8-billion Conga gold and copper project. 
CONFLICT: Peru's president declared a 60-day state of emergency as increasingly violent protests against a highlands gold mine enters its eleventh day. AT ISSUE: Residents fear that the $4.8-billion Conga gold-and-copper mining project, owned by U.S.-based Newmont Mining Corp., will damage their water supply.  LIMA (Reuters) - Peruvian protesters opposed to a $4.8 billion gold mine project abandoned roadblocks on Saturday as government officials called weekend talks with regional leaders to try to resolve the conflict. Earlier this week, U.S.-based Newmont Mining Corp agreed to a government request to stop work temporarily on the Conga mine after the protests turned violent.  Anti-mining protests are spreading, challenging Humala's promise to take the heat out of social conflicts in the top metals producer. The government last month asked U.S.-based Newmont to suspend construction work on its $4.8 billion Conga gold mine to buy more time to pacify protesters. Humala's image as an anti-corruption crusader has been threatened by investigations into one of his two vice presidents. His approval rating fell for the second straight month in November to 56 percent according to pollster Ipsos. The Andean country also faces a growing illegal cocaine trade and officials are trying to overhaul its anti-drugs policies to focus on development programs rather than crop eradication without losing the United States as a key partner.  Local residents in northern Peru continued a protest even after U.S.-based miner Newmont (NEM.N: Quote ) and the government temporarily suspended construction of the $4.8 billion Conga gold mine. The residents want the most expensive mine ever attempted in Peru permanently canceled because they fear it will affect scarce water supplies and bring no benefit to poor farmers. Many of them complain Humala has moved too far to the right by saying the mine will be built. Humala got Congress to pass a so-called consultation law requiring firms and the state to try to reach a consensus with indigenous communities before building mines, drilling for oil or enacting legislation that affects their lands. 
PERU Protest Against Mine Continues Despite State of Emergency By 'ngel P'ez [[ Local residents opposed to the Conga gold mine hold a vigil at one of the lakes that the project would affect in the highlands of Cajamarca. LIMA, Dec 6, 2011 (IPS) - Local residents and authorities in the northern Peruvian region of Cajamarca say they will continue to protest the Conga gold mine, despite the state of emergency declared by President Ollanta Humala.  Security forces fanned out across Perus Cajamarca region on Monday to enforce emergency measures decreed by President Ollanta Humala to put an end to 11 days of protests against a 4.8 billion dollars gold mine project.  Perus President Ollanta Humala has declared a state of emergency in a northern region that has seen bitter protests against a gold mine project.  Peru's president, Ollanta Humala, declared a state of emergency Sunday in the country's northern region, which has been besieged by violent protests over a highlands gold mine.  President Ollanta Humala declared a 60-day state of emergency Sunday in a northern region torn by more than a week of protests against a highlands gold mine, the country's biggest investment, by peasants who fear for their water supply. 
President Ollanta Humala of Peru went on national TV the night of Dec. 4 to announce that he has imposed a state of emergency in four provinces of Cajamarca region, which has been the scene of a general strike for the past 11 days in opposition to the mega-scale Conga mining project that residents say threatens local water resources.  Government officials have expressed no intention of redoing Conga's environmental impact study, which was approved by the Ministry of Mining in October 2010. Those plans call for displacing four lakes more than two miles high and replacing them with reservoirs. Local residents say they fear that could affect an important acquifer on which thousands depend. Humala told Cajamarca during campaign swings before his June election that clean water was more important for him than gold. Many local inhabitants said they now feel betrayed by the president. Peru's economy depends heavily on mining, which accounts for 61 percent of its export income. Humala, a former radical leftist who moved toward the center before being elected this year, agreed to a tax on windfall profits in the industry that the government says will yield about $1 billion a year to help fund social programs. Associated Press writer Frank Bajak contributed to this report.  Protests continued Friday in the area against the project, which Humala has backed, although a series of roadblocks set up by the demonstrators had eased. Activists have called for talks with government officials, the mining group and local residents, who are fearful the mine would compromise their water supply. They want scrapping the project altogether to be an option on the table, something which Humala's government has refused to consider. The conflict goes to the heart of the problems Humala faces in trying to balance the needs of the mainly poor people who elected him with the demands of the mining industry, Peru's main engine of economic growth. Mining in Peru last year generated $15 billion, and this year mining exports are expected to be above $25.5 billion, according to government figures. 
Humala, in a nationwide address, called leaders of the environmental protest intransigent and said the ruling would give security forces added power to ensure that roads, schools and hospitals could reopen after having been shuttered for days by rallies and marches against the proposed mine. It was the first time in Humala's young presidency that he has used extraordinary powers to defuse a social conflict over mining in Peru, where some 200 disputes nationwide threaten to delay billions of dollars in planned mining and oil projects. "Every possible means has been exhausted to establish dialogue and resolve the conflict democratically, but the intransigence of local and regional leaders has been exposed - not even the most basic agreements could be reached to ensure social peace and the reestablishment of public services," he said. Humala campaigned on promises to steer more social spending to rural towns to help calm social conflicts over natural resources while assuring companies they could move ahead with new mining and oil projects. He has urged mediation to solve the disputes, but nearly a week ago the government was forced to ask Newmont to temporarily halt work on the Conga mine after the protests turned violent.  Humala, a former army officer, chided leaders of the environmental protest as intransigent after weeks of mediation efforts failed. His decree allows the military to help police reopen roads, schools and hospitals shuttered for days by rallies and marches against the proposed mine. It was the first time in Humala's young presidency that he has used extraordinary powers to defuse a social conflict over mining in Peru, where disputes in some 200 communities across the country threaten to delay billions of dollars in planned mine and oil projects. "Every possible means has been exhausted to establish dialogue and resolve the conflict democratically, but the intransigence of local and regional leaders has been exposed - not even the most basic agreements could be reached to ensure social peace and the re-establishment of public services," he said on state television. Humala, a former leftist, won the presidency in June on promises to steer more social spending to rural towns to help calm social conflicts over natural resources while assuring companies their investments would be safe in Peru's surging economy. 
The decree marked the first time Humala has used special powers to defuse a social conflict over mining in Peru, where disputes in some 200 communities across the country threaten to delay billions of dollars in planned mine and oil projects. Gregorio Santos, the governor of Cajamarca region who has led the protests, said residents would return to their normal life but continue to peacefully oppose the mine. The president lacks the power of persuasion so he has had to resort to the power of guns. 
Humala yesterday granted the armed forces extra powers for 60 days, including the right to arrest without a warrant in four provinces of the Cajamarca region after two weeks of clashes between police and protesters forced Newmont Mining Corp. to suspend the $4.8 billion Minas Conga gold project.  Newmont Mining Corp., the world's second-largest gold producer, is finding its biggest growth project runs through lakes and land belonging to some of the poorest farmers in Peru's northern Andes. Work has stopped at the Minas Conga gold and copper project four months after Newmont approved the $4.8 billion mine, following two weeks of clashes between police and demonstrators, who say the project threatens to deplete their water supply.  Protests over water supplies under mining projects have forced Newmont Mining ( NEM, quote ) to suspend the $4.8 billion Minas Conga gold project in the area. Other protests have also caused stoppages at projects by Southern Copper ( SCCO, quote ), and Anglo American( AAUKY, quote ). Other companies operating in the area include Rio Tinto ( RIO, quote )and Gold Fields ( GFI, quote ). Humala, elected last year on a pledge to use the mining industry to better support the country's poor, has shown that he is much more like Brazil's Lula da Silva than he is a Peruvian Hugo Chavez.  Santos, who was elected to office late last year and who supported Humala's campaign for president, said that talks with high-ranking government officials on Sunday failed to resolve the problem and only managed to calm the escalating conflict. Santos has been leading the protests against gold producer Yanacocha's $4.8 billion, open pit Minas Conga project over concerns about its impact on water supplies. 
The move came after talks between the government and demonstrators, who say the project threatens water supplies, broke down. "It's very positive that Humala is taking specific measures to maintain order and not let the situation get out of control," said Isabel Darrigrandi, who covers Peruvian mining stocks for Celfin Capital SA in Santiago. "His major challenge is to support the mining industry and at the same time avoid alienating his base of support. There are groups among his base that have a very radical anti-mining position." Environmental protests this year by farmers halted projects by companies including Southern Copper Corp., Anglo American Plc and Bear Creek Mining Corp. Denver-based Newmont, the biggest U.S. gold producer, said it will seek talks with the government and communities opposing the project, Peru's largest.  The move came after talks between the government and protesters, who say the project threatens water supplies, broke down. "We will return to normal in all activities in Cajamarca so as not to be drawn into the game still being played by the government and those who want to resolve our people's problems with bullets and blood," Wilfredo Saavedra, head of the Cajamarca Environmental Defense Front, said late yesterday at a televised rally in Cajamarca. Environmental protests this year by farmers halted projects by companies including Southern Copper Corp., Anglo American Plc and Bear Creek Mining Corp. Denver-based Newmont, the biggest U.S. gold producer, said it will seek talks with the government and communities opposing the project, Peru's largest. 
Talks "have not succeeded in achieving even minimal accords to allow the return of social peace and the restoration of public services." Environmental protests this year by farmers halted projects by companies including Southern Copper Corp., Anglo American Plc and Bear Creek Mining Corp. Denver-based Newmont, the biggest U.S. gold producer, said it will seek talks with the government and communities opposing the project, Peru's largest. 
The protests reflect the difficulties gold producers face in building mines and expanding output, Day said. Environmental protests by Peruvian farmers this year have halted projects by mining companies including Southern Copper, Anglo American Plc and Bear Creek Mining Corp. Newmont was forced to shelve its Cerro Quilish gold project in the country in 2004 after opposition from environmental protesters. 
In Cajamarca, where a $4.8bn gold and copper mine being built by Newmont Mining Corp would empty four lakes that locals use for drinking water and irrigation, protests have become increasingly violent. Last week, Newmont suspended work at its Conga mine pending a solution to the conflict, sending a collective shudder through the mining community, which accounts for 60 per cent of Peru's GDP.  Yanacocha operates the largest gold mine in Latin America, 25 km southwest of Conga, and is owned by the U.S.-based Newmont Mining and the Lima-based Buenaventura corporations. Peasant farmers, backed by local and regional authorities, environmental activists and independent experts, say the Conga mining operation would cause irremediable damage to four high mountain lakes, and deplete their water supply. 
The project, which involves moving the water from four lakes high in the mountains into reservoirs the company would build, has been opposed by local peasants as well as local officials in Cajamarca, who led the protests. Fearing its possible negative effects on the quality and quantity of their water supply, they have demanded a new study of the environmental impact of the mine. Humala has voiced support for the Conga project and criticized local leaders for their "intransigence."  Under the emergency measures, civil liberties would be restricted and arrests without warrants would be allowed in four provinces of Cajamarca region. Out of fear for their water supply, local peasants have staged violent protests against a Conga mining project worth 4.8 billion dollars operated by U.S.-based mining giant Newmont.  The 60-day state of emergency in the Cajamarca region allows police to arrest people without warrant and restrict civil liberties. Violent protests erupted on Nov. 29 as peasants opposed the plan of Newmont Mining Corp. ( NYSE : NEM) to move water from four lakes into man-made reservoirs and fear that gold mining operation will contaminate and diminish their water supply. 
The emergency restricts civil liberties such as the right to assembly and allows arrests without warrants in four provinces of Cajamarca state that have been paralyzed for 11 days by increasingly violent protests against the $4.8-billion Conga gold and copper mining project.  Protests continued with demonstrations calling for Conga's definitive cancellation and a stop to all new mining projects in Cajamarca. After talks failed Sunday --the regional leaders refused to meet the government's demand to call off the strike while talks would continue-- Humala went on a nationwide television broadcast to announce a state of emergency, which suspends some constitutional rights such as freedom of assembly and permits the use of the military to normalize activities in the areas.  The 60-day state of emergency was imposed by Humala after Prime Minister Salom'n Lerner failed ' after 10 hours of negotiations Sunday in the city of Cajamarca, the regional capital, 160 km from the lakes ' to convince the demonstrators to call off the protests, which have brought activity in the city to a halt for two weeks. "We will agree to sign the agreement if Yanacocha removes its machinery from the Conga project area, because its mere presence there is a provocation for the peasants," the president of the Cajamarca Defence Front, Idelso Hern'ndez, told IPS. "But minister Lerner told us that we couldn't force Yanacocha to pull its machines out - which made it clear to us which side the government is on," he said. "Even though Yanacocha suspended the Conga project on Nov. 29, it left its machinery in the area, which means the police are still there, to protect the equipment," Hern'ndez said. 
As clashes between rock-throwing demonstrators and police continued over the weekend, Humala's government declared a 60-day state of emergency in the northern region of Cajamarca. The president's backing for Conga has prompted accusations that he has betrayed campaign promises to respect the wishes of local communities opposed to mining and other infrastructure projects on their land. 
After 11 days of protests against a gold mining project in Cajamarca, Ollanta Humala, the newly elected president, on Sunday declared a state of emergency and sent in the army to restore order.  Dec. 5 (Bloomberg) -- President Ollanta Humala declared a state of emergency in the northern Andes in a bid to quell anti- mining protests that have paralyzed the nation's biggest gold project and may derail billions in investment.  REPORTING FROM LIMA, PERU, AND BOGOTA, COLOMBIA -- Digging in his heels against opponents of a huge gold and copper mining project, Peruvian President Ollanta Humala declared a 60-day state of emergency and called on residents to maintain "serenity and calm." 
President Ollanta Humala has described leaders of the protest as "intransigent." The U.S.-based Newmont Mining Corporation is involved with the project, which calls for extracting gold and copper from the area as well as displacing four lakes and replacing them with reservoirs. 
The aim of the measure was to reopen schools, businesses, the airport, bus stations and markets in the city of Cajamarca, which had been shut down by the protesters since Nov. 24. When he visited Cajamarca as a presidential candidate, Humala expressed his support for the protest against the Conga project. He has now decided that it will go ahead, on the argument that if the gold and copper mining project is properly managed, the local residents will benefit from the "canon minero" - the direct economic compensation received by areas where minerals or oil are extracted.  Several big projects have recently been scrapped as a result. One protest leader in Cajamarca, Milton Sanchez, told the AP "this government that has put itself on the side of mining companies and distanced itself from its electoral promises." "We are not radical," he added. "It's just that the Conga project has no legitimacy in the eyes of the people." An early November opinion poll by the Datum firm found that 74 percent of Peruvians believe anti-mining protesters across the country are justified in their concerns.  Humala had been due in Caracas for the inaugural meeting of the Community of Latin American and Caribbean States, a bloc that excludes the United States and Canada. He was then to meet leaders of Chile, Colombia and Mexico in Merida. The Peruvian leader officially canceled his trip due to his "domestic agenda." Despite the suspension earlier this week of the so-called Conga project, an ambitious mining initiative operated by U.S. mining giant Newmont in the Cajamarca department of mountainous northern Peru, the conflict is raging on.  At some stage, Humala may have to choose between abandoning the mine -- potentially setting a precedent that could handicap Peru's ability to expand its critical mining sector -- or forcing the Conga project through despite the discontent. By declaring the state of emergency, Humala appears to be heading towards the second of those two highly unappealing options. 
Peru's president, Ollanta Humala, declares a state of emergency in a northern region over Conga mine protests.  LIMA — A restive mining region in northern Peru was calm Monday one day after President Ollanta Humala declared a state of emergency in a bid to end to several days of labor unrest, officials said. "The population of Cajamarca is resuming its normal activities," said Interior Minister Oscar Valdes, who told Peruvian radio that classes had resumed at schools throughout the region and that traffic was flowing normally.  Peruvian President Ollanta Humala declared a 60-day state of emergency Monday in the northern region of Cajamarca to put an end to a dispute over a massive gold mine. 
President Ollanta Humala said Sunday night's emergency declaration aimed to restore order and to reopen schools and roads paralyzed by a general strike and clashes with police in which dozens of people have been injured. Cajamarca state Gov. Gregorio Santos, who has been leading protests, said demonstrators had suspended a weeklong general strike on Thursday when they agreed to talks with the government. He said Monday that the president was "deceiving" Peruvians with the decree.  Peruvian President Ollanta Humala has placed four northern highland provinces under a state of emergency to stop violent protests against a U.S. mining firm that injured dozens of people and forced an airport to shut down.  LIMA, Dec. 4 (Xinhua) -- Peruvian President Ollanta Humala declared a state of emergency late Sunday following massive rallies against a multi-billion-U.S. dollar mining project in the north of the country.  LIMA — Peruvian President Ollanta Humala on Friday canceled a trip to Venezuela and Mexico for two regional summits as a dispute over a $4.8 billion gold mining project dragged on in the north of the country. 
Opponents of Peru's biggest mining investment said Monday they felt betrayed by the president's decision to impose a state of emergency to end violent protests against the $4.8 billion highlands gold mine, saying they had already halted a general strike and agreed to negotiations. 
The company, which planned to build a huge gold mine in Peru open the project announced that it will stop after several days of protests.The President of the Office of Newmont Peru, Carlos Santa Cruz, made the announcement after several days of protests by local communities who fear that the few sources of acute in the area affected by the.  Omar Jabara, a spokesman for the Greenwood Village, Colorado- based company, declined to comment yesterday on when the project may be restarted. Newmont will seek talks with communities opposed to the project, he said in an e-mail. Newmont, which owns 51 percent of Conga, is partnering with Peruvian partner Cia. de Minas Buenaventura SAA. (BVN) The U.S. company also controls Peru's Yanacocha, South America's largest gold mine, which is forecast to produce 1.3 million ounces this year, down from 3.3 million ounces in 2005. 
The 4.8 billion dollar Conga gold mine project, to be run by the Yanacocha mining company, is backed by the government of Humala, a left-leaning former army officer who took office in July.  We propose a sensible stance: water and gold." Humala is supporting Conga because his government realizes the project could form part of as much as $40 billion of Peruvian mining expansions, O'Brien said at a Nov. 10 gold conference organized by RBC Capital Markets. 
Big gold mining projects such as the Conga mine, owned by Newmont Mining NEM-N and Peru's Buenaventura, estimated to cost $4.8-billion (U.S.) and located at 13,800 feet in the Andes, inevitably produce environmental and local-opposition problems.  Andean people protest against Newmont Mining's Conga gold project during a march near the Cortada lagoon at Peru's region of Cajamarca, November 24, 2011.  Photo: Protesters marching last month against Newmont Mining's Conga gold project in Peru's Cajamarca region. 
Cajamarca is Perus leading dairy and livestock region, and activists fear that pollution from the mine could affect agriculture. The Newmont Mining Corporation says its plans have been drawn up in consultation with local communities and meet the highest environmental standards. It says the Conga mine will generate thousands of jobs. 
The emergency restricts civil liberties including the right to assembly and allows arrests without warrants in four provinces of the northern state. The protesters fear the Conga gold-and-silver mine, majority owned by U.S.-based Newmont Mining Corp., will taint their water and affect a major aquifer. They are alarmed by plans to drain or displace four lakes more than 2 miles (3 kilometers) in elevation and create four reservoirs, the biggest of which will supply water to wash metal out of crushed rock using cyanide.  Protesters say US-based Newmont Mining's Conga mine would hurt local water supplies and demand that it be cancelled. 
A US-Peruvian mining company has put a multibillion dollar project on hold following local protests. Operations at the Conga mine were due to start in 2015 but people living in the area say it will destroy their water supply.  The Conga project has drawn protests from local residents, including mine workers, farmer and environmental activists, who fear among other concerns that contaminated water from the project could despoil the areas lakes and rivers. 
Local elected officials in Cajamarca, including the state's governor, have led protests against Conga, an extension of the nearby Yanacocha mine, for more than a month. They say they fear it will taint and diminish water supplies affecting thousands and have demanded a new study of the environmental impact of the mine, which was scheduled to begin production in 2015.  Cajamarca is one of Peru's most heavily mined regions and many residents mistrust the new project because it is an extension of nearby Yanacocha mine, Latin America's largest gold mine, which is nearing the end of production. It has a history of troubled relations with neighboring farmers, ranchers and city dwellers downstream who claim it has harmed water supplies. 
Humala, a left-leaning former army officer who took office in July largely on the strength of support from poor voters, reacted to a continuing stalemate between the central government and impoverished groups in the Cajamarca region of northern Peru. Many residents fear the Conga project could ruin their water supply.  Speaking to the press at the business conference CADE 2011 in Cusco, Lerner said that the central government has been holding talks with protesters, which are being led by Cajamarca's regional president, Gregorio Santos, among others. "This is the call that I want to make to the region of Cajamarca, its mayors, its regional government, its environmental organizations: that with dialogue we can reach a deal," Lerner said. During his address to the CADE conference, Lerner Ghitis also mentioned the Conga project and said that the decision to suspend the project did not in any way imply a loss of authority. 
"Using my constitutional powers, I introduce a state of emergency in the provinces of Cajamarca, Celendin, Hualgayoc and Contumaza," President Humala said. He blamed the impasse over the project on local officials. "Every possible means has been exhausted to establish dialogue and resolve the conflict democratically, but the intransigence of local and regional leaders has been exposed - not even the most basic agreements could be reached to ensure social peace and the re-establishment of public services," he said.  Prime Minister Salomon Lerner negotiated on Sunday for hours with leaders of the protest, who say the mine will hurt water supplies and caused pollution. Lerner failed to reach an accord with protesters, prompting Humala to invoke a state of emergency - a tool that his predecessor, former President Alan Garcia, frequently used to quash social protests. 
Dec. 5 (Bloomberg) -- Protesters halted demonstrations that have paralyzed Peru's biggest gold project and threatened billions of dollars in investment after President Ollanta Humala declared a state of emergency in the northern Andes.  President of Peru Ollanta Humala has declared a state of emergency as massive protests persist. 
The government will seek to restart talks with local protest leaders "as soon as possible," said Daniel Abugattas, president of Congress and a senior member of President Ollanta Humala's Gana Peru party.  Local political leaders want President Ollanta Humala to stop the gold mine from being built, saying the biggest mining investment in Peruvian history would replace a string of alpine lakes with artificial reservoirs and cause pollution. 
Company spokesman Omar Jabara said by email that the company is "closely monitoring the situation and continues to want to participate in a good-faith dialogue" with local residents. Its chief executive, Richard O'Brien, said in a statement earlier that if Newmont was unable to continue with Conga, the Denver-based company would "re-prioritize and reallocate capital" to "alternatives in Nevada, Canada, Ghana, Indonesia and Suriname." Humala told Cajamarca residents during campaign swings before his June election that clean water was more important for him than gold. Many local inhabitants said they now feel betrayed. "We expected a president who would stand up for Peruvians, for those in greatest need," said Jose Quintero, a 45-year-old farmer who lives in Celendin near the Conga site and was reached by phone at random. "First he says he's going to protect the water, now he says no." "He needs to keep his word, that he was gong to protect the water." said Karla Ramos, a 33-year-old preschool teacher in Celendin. 
Humala has called for "dialogue." He insists that Peru need not choose between water and gold. He made a major gesture towards the country's Andean and Amazonian communities when he recently chose the rainforest town of Bagua, scene of a massacre between police and indigenous protesters in 2009, to sign into law a bill that gives native communities the right to be consulted about infrastructure projects on their lands. He must now find a way to resolve the standoff in Cajamarca.  Even the most responsible companies can face sudden blow-ups in community relations after years of painstaking negotiations. This is in part because violent confrontation has increasingly become the means by which communities and protestors secure gains. It was only after 33 people were killed in clashes near the jungle town of Bagua in 2009 that former president Alan Garcia agreed to consider a law granting communities the right to be consulted over investments, for example. (He later vetoed the bill, saying it would grant communities the right to veto projects of value to the entire nation). Humala's administration is still working out how to apply its new law of consultation. It is also, with the Conga dispute, working out how to reconcile its commitment to investors with its promises to honour social inclusion and the environment; and how to bring protestors to the negotiating table, instead of the streets.  Peru's mining ministry green-lighted the project last year when President Alan Garcia was in office, after the company submitted an environmental impact report. Humala's continuing support of the project in the face of opposition from many in his support base reflects his administration's need for the estimated $800 million in royalties and taxes that the project would generate. He has set forth an ambitious social agenda to be administered by the new Ministry of Social Inclusion. The project has exposed divisions among his supporters, some of whom favor a more stringent environmental policy.  Major mining firms have agreed to pay the government some $1 billion per year under a new tax and royalty program, though revenue for the new social programs will depend on metals prices and profit margins. The government also wants to exert greater control over "strategic" oil and natural gas resources, saying they should be steered toward domestic consumers instead of exports. Humala has vowed not to copy the nationalizations carried out by his one-time political mentor, Venezuela's socialist President Hugo Chavez. Instead he has tried to emulate the soft-left style of Brazil's former President Luiz Inacio Lula and promote economic growth with what he calls "social inclusion." Since Humala took office, foreign firms have pledged about $15 billion in investments in Peru, or 10 percent of gross domestic product, while the World Bank pledged a $3 billion line of credit to help fund his anti-poverty agenda.  Humala, a left-wing former army officer, came to power on promises to champion Peru's poor. He quickly negotiated a new tax on the mining companies worth an extra $1 billion a year, cash that he plans to use for social spending. He has also gone out of his way to appease foreign companies slated to invest a total of $50 billion in Peru's mining sector over the next decade. 
The current protests are estimated to be costing the Cajamarca region $10-million a day. Approvals that must be renegotiated with each political change also produce huge costs through the delays they impose. Mr. Humala may not like foreign mining companies, but he seems to recognize the wealth they can bring to Peru, especially when resource prices are near record highs. More important, his administration is distinguishing between problems that foreign investors can deal with and those with the potential to gum up the economy broadly. If he persists on the current course, Peru may find itself promoted well up international investors' wish lists - with potentially long-term benefits to its people's living standards.  LIMA -(Dow Jones)- Activity in northern Peru's Cajamarca region is returning to normal following days of anti-mine protests that led the government on Sunday to declare a state of emergency, state news agency Andina reported Interior Minister Oscar Valdes as saying. 
The most recent report from the Defensor'a del Pueblo (ombudsman's office) says that nearly 60 percent of the 154 active social conflicts in the country's 25 regions involve socioenvironmental protests, like the one in Cajamarca. "The people of Cajamarca weren't expecting a state of emergency to be declared," Mes'as Guevara, who represents the region in Congress for Per' Posible, a party allied with Humala's Gana Per' party, told IPS. "It is an extreme measure that will fuel the discontent.  A state of emergency has been declared in the northern region of Cajamarca where, for days, farmers have been protesting against a mining project that could have negative social and environmental consequences. 
US-based. At the time of this article's publication, on the sixth day of regional push back in Cajamarca, the Yanacocha mining company announced the suspension of Conga project operations; residents, however, have declared that they are hoping.  Activity in Cajamarca has begun to return to normal after days of increasingly violent protests against gold producer Yanacocha's Minas Conga project, according to newspaper El Comercio. 
Newmont, based in Denver, Colorado, is the majority owner of the Conga project, which was to begin production in 2015 and is an extension of Yanacocha, Latin Americas biggest gold mine.  The mine is the largest component of Chief Executive Officer Richard O'Brien's $7 billion plan to boost gold output by as much as 35 percent to 7 million ounces a year by 2017. If Newmont can't proceed with its plans for Conga, it may switch to projects in Nevada, Canada, Ghana, Indonesia and Suriname, O'Brien said Nov. 30. Conga may yield 680,000 ounces of gold and 235 million pounds of copper annually in its first five years. That represents annual sales of about $2 billion based on current metal prices.  Protesters oppose a project planned by the U.S. mining company Newmont to establish a gold mine, valued at USD 4.8 billion, or over three and a half billion euros.  The announcement Sunday came after protests against the construction of a $4.8 billion gold mining project called Conga.  No one has died during protests on Humala's watch, but the lingering conflicts could hold up some $50 billion in mostly foreign investment planned for oil and mining projects over the next decade. 
Peru, the world's third-largest copper miner and the sixth- largest gold producer, has lined up $50 billion in mining investment projects over the next decade.  Conga is Peru's biggest mining project. It was scheduled to begin production in 2015, with average output during the first five years of 580,000 ounces to 680,000 ounces of gold and 155 million to 235 million pounds of copper. 
Conga has become a battleground for Peru's disgruntled left, which expected to wield far greater influence in Humala's administration. To their annoyance, the government has said there is no need to review Conga's environmental impact statement approved by the former administration last year. A very public split between the environment ministry - which raised serious concerns about Conga's environmental impacts - and the mining and energy ministry, underscore weaknesses in both Humala's administration and Peru's mining licensing, regulation and oversight.  Conga's environmental impact study was approved in October, 2010, by the previous centre-left Garcia administration, and included the provision of new reservoirs to replace threatened mountain lakes. Since Mr. Humala was elected with the support of the rural poor, it was thought he might delay the project, but his government has merely vowed to "review" the approval. Mr. Humala has already moved against miners by increasing taxes on their operations, expected to produce about $1-billion in annual revenue.  Peruvian government officials have expressed no intention of redoing Conga's environmental impact study, which was approved by the Ministry of Mining in October 2010. Those plans call for displacing four lakes more than two miles high and replacing them with reservoirs. Local residents say they fear that could affect an important acquifer on which thousands depend.  "The Conga Environmental Impact Assessment was approved in 2010 after extensive review by the Peruvian government, which included significant engagement and consultation with local communities," it said. 
Yanacocha is majority owned by U.S. firm Newmont (51.35%), with local miner Buenaventura's Minera Condesa company (43.65%), and the International Finance Corporation, a unit of the World Bank, with the remaining 5%. Conga was suspended earlier this week, but protesters have said they want the government to issue a decree to definitively cancel it. Protesters have said they are concerned about how the project will affect their water supply and quality. Lerner called on Yanacocha to work towards improving its relations with communities.  Newmont, which is based in Denver, Colorado, and describes itself as one of the world's largest oil companies, said it had suspended construction on the project "for the safety of employees and community members." It noted that operations there and at the nearby Yanacocha mine "have experienced intermittent work stoppages as a result of ongoing protests in the region." The protests began when anti-mining activists expressed concern about the possible impact of the project on the local water supply, the company said in a statement on its website. 
U.S. firm Newmont halted work on the huge $4.8bn (£3.1bn) open-cast mine last week after protesters were injured. Those against the project say it will destroy local water supplies.  The project shows how competing water interests from communities and industry threaten to derail the world's next generation of mines and petroleum resources. "This is a core growth project," said Adrian Day, president of Adrian Day's Asset Management in Annapolis, Maryland, which manages $190 million, including Newmont shares. 
The protests reflect the difficulties gold producers face in building mines and expanding output, Day said. Newmont was forced to shelve its Cerro Quilish gold project in the country in 2004 after opposition from environmental protesters.  Newmont immediately suspended the Conga project for the safety of employees and protesters. Humala supports the mining project, from which the country derive most of its revenue.  Besides demanding the removal of Yanacocha's machinery from the area around the lakes, the local and regional authorities and social leaders were asking for 24 hours to consult with the mainly indigenous protesters holding a vigil at the site of the Conga mining project, which is located in the Andes highlands over 4,000 metres above sea level.  Protests continued last week despite Yanacocha's announcement to suspend the project. Protesters, which are calling for Conga's definitive cancellation, have said they are concerned about environmental contamination and the project's impact on water supplies for farmers.  We believe that the multi-year approval process followed by Yanacocha and the Peruvian government for the Conga project thoroughly considered impacts to the environment, including water resources in the region."  Protest leader Pelayo Hurtado, president of the Andahuaylas Irrigation District Users Board (JUDRA), as well as the mayors of several villages in the affected provinces, agreed to hear government proposals for roads, electrification, potable water and other development projects for the impoverished mining region. 
LIMA, Peru -- Peru's president declares state of emergency in region torn by protests against gold mine.  Food markets reopened today after protests in the region, which is home to mines operated by Newmont and Gold Fields Ltd., shut schools and businesses and blocked roads, state television TV Peru reported. Both mines are operating normally, the companies said today.  Food markets reopened and flights to Cajamarca resumed today after protests in the region, which is home to mines operated by Newmont and Gold Fields Ltd., shut schools and businesses and blocked roads, Interior Minister Oscar Valdes told Lima-based Radioprogramas. Both mines are operating normally, the companies said today. 
Headed by Denver-based Newmont Mining, the consortium already runs the Yanacocha mine, also in Cajamarca, a 100-square-mile pit that is said to be the world's second-largest gold mine. That mine also has led to fierce disputes with neighboring communities.  Newmont Mining Corporation (NYSE: NEM), based in Denver, Colorado, USA, is among the 3 largest producers of gold in the world. It has active mines in Nevada, Indonesia, Australia, New Zealand, Ghana, and Peru. 
Although the government has increased royalties on mining, the original fear that the new administration would be anti-capitalist has proven unfounded. Peru is expected to post the largest increase in GDP within the region for this year. GDP growth in the third quarter expanded to 6.5% while the Peruvian sol has appreciated 3.9% against the dollar this year. The central bank meets on Wednesday of this week but is not expected to move rates from 4.25%. Newmont is down about 0.5% this morning but up strongly over the last six months (24.8%) and year (10.4%). The Peruvian ETF( EPU, quote ) is significantly lagging its Latin counterparts this morning, up a mere 0.6% compared to gains of 1.5% to 2.5% elsewhere in the region. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.  Lerner, appearing at the press conference with Newmont vice president Carlos Santa Cruz, said the government is forging "a new relation between communities and mining, a relation that was historically marked by mistrust." He pledged to nvolve the local populace in decisions to "dispel all doubts and guarantee, as a priority, water for human consumption."  The order was issued last night by President Ollanta Humala, who was elected last July, after a day of fruitless negotiations between representatives of the Government and local communities.  The demonstrations stopped after President Ollanta Humala on Dec. 4 granted the country's armed forces extra powers for 60 days, including the right to make arrests without warrants in four provinces of the Cajamarca region.  President Ollanta Humala said that protest leaders had shown no interest "in reaching minimal agreements to permit a return of social peace." Cajamarca's state governor, Gregorio Santos, has been leading the protests and he said Monday that the president's action was a mistake.  The state's governor, Gregorio Santos, who has led the protests, called President Ollanta Humala's announcement of the emergency an unnecessary provocation. 
The presence of Peruvian President Ollanta Humala at the Summit of Latin American and the Caribbean on Integration and Development (CALC), leading to the creation of the Community of Latin American and Caribbean States (Celac) remains in doubt. "We hope that he can join us tomorrow (December 2) at the summit, but we cannot say that for sure, given Peru's domestic situation," Peruvian Foreign Minister Rafael Roncagliolo said.  Peruvian President Ollanta Humala canceled, due to "domestic agenda" issues, his trip to Caracas on November 2 to attend the founding conference of the Community of Latin American and Caribbean States (Celac), as well as his visit to Mexico, his press secretary announced late on Thursday. 
Congress provided authorization Wednesday for President Ollanta Humala to travel to Venezuela and Mexico where he will participate in regional summits, state news agency Andina reported.  Peru's new President Ollanta Humala waves after being sworn into office in.  Peru's President Ollanta Humala has shown surprising determination to keep foreign capital flowing into the Andean nation, defying the expectations of many investors who greeted his election in June with concern. While he raised taxes on miners, he's now pledged to protect legitimate mines from agitators. Mr. Humala may be a leftist, but he's shown Peru is open to the international investment that it needs to grow richer.  What looks like a remarkably pro-business move by Ollanta Humala, Peru's president, may not make it much easier for miners to negotiate Peru's thorny business environment. 
Tags: Cajamarca, Ollanta Humala, Peru.  Peru s Ollanta Humala will not attend his scheduled meetings in Caracas and Mexico City. His government claimed he has issues pending in his "domestic agenda." 
First Vice President Marisol Espinoza, co-leader of Humala'sGana Peru party, has criticized meetings of Humala's advisor Luis Favre with mining company officials during the crisis, saying the discussions lacked transparency. Other government officials told The Times on Monday that they are concerned the incident could damage support for the party among its young followers.  "People don't live off gold. They use water to wash the gold. that's the way it is." Peru's economy depends heavily on mining, which accounts for 61 percent of its export income. Humala, a former radical leftist who moved toward the center before his June election, persuaded the mining industry to agree to a tax on windfall profits to help him fund social programs.  Humala, a former renegade army officer who took over one of Southern Copper Corp.' s mines a decade ago, was elected in June on pledges to exert greater control over the mining industry to finance spending for the 8 million Peruvian living in extreme poverty. Metals account for 60 percent of the country's export revenue and half its tax income.  Humala, a former renegade army officer who took over one of Southern Copper Corp. (SCCO)'s mines a decade ago, was elected in June on pledges to raise taxes and exert greater control over the mining industry. Metals account for 60 percent of the country's export revenue and half its tax income, according to the National society of Mining, Petroleum and Energy, an industry group. 
The stakes are also high for Mr Humala. The leftist colonel's election in June sparked a record sell-off on the Lima stock exchange on fears that he would take a Chávez-like stance towards business. However, he has sought to balance economic development with social inclusion, watering down a tax on miners, yet also promising to consult communities about projects that affect them. This is the right stance to adopt. In reality, Mr Humala had little choice: Peruvian economic output is dominated by mining; Mr Humala needs the resulting revenues to fund his ambitious social programme. 
The move may have bought Humala and his government a breather, but many regard relations between the extractive industries and neighboring communities as a ticking bomb. "It is just a maneuver to win time and to confuse the population," said Gregorio Santos, the regional president of Cajamarca. "The response that we demand is not from Yanacocha but from the government, that they declare Conga unviable."  The 60-day state emergency affects the provinces of Cajamarca, Celend'n, Hualgayoc and Contumazá. In his address, Humala said the government "has exhausted all paths to establish dialogue as a point of departure to resolve the conflict democratically" and blamed "the intransigence of a sector of local and regional leaders."  The conflict has posed a major challenge to Humala's government, which took office in late July and has led to one high-level official's resignation from the Environment Ministry. Humala, a 49-year-old former army officer, cancelled a trip to Venezuela and Mexico where he was to participate in two regional summits. A statement from his office did not say why the trips were cancelled, but El Comercio reported that it was due to the Cajamarca conflicts and new conflicts on the south coast at Cañete. 
Humala was referring in part to Cajamarca regional leader Gregorio Santos, who has galvanized opposition to the $4.8-billion mine project.  Villagers have burned a warehouse and destroyed $2 million of machinery at Newmont's Minas Conga site, 560 kilometers (350 miles) northwest of Lima. Cajamarca, where Newmont was forced to shelve its Cerro Quilish gold project in 2004, is also home to copper projects being developed by Anglo American Plc, Rio Tinto Plc and China Minmetals Corp.  The so-called Conga project, currently in the exploration phase, is an plan by U.S. company Newmont, to extract seven million ounces of gold and 400 million pounds of copper by 2017 from the area. 
Newmont slid 0.1 percent to $66.94 at 1:09 p.m. in New York and has declined 2.9 percent in the three days after suspending the Conga project.  Newmont can move some equipment that it bought for Conga to other assets if the project faces significant delays, said Tom Winmill, president of Winmill & Co. and portfolio manager of the Midas Fund in New York. Newmont has other mines and projects it could invest in to meet its 7 million-ounce target, he said in a telephone interview. "I think it's definitely doable," he said.  Newmont is also developing a mine in Ghana and expanding existing operations in North and South America, Africa and the Asia Pacific region. Conga's suspension is "a negative but it's not a game- changer" for Newmont, said John Stephenson, who helps manage $2.7 billion including Newmont stock at First Asset Management Inc. in Toronto. "They can hit their growth targets with or without it."  Peasants comprise the bulk of the protest movement and say that the $4.8 billion mine will damage the region's water supply.  The crackdown followed an 11-day worker strike over the adverse environmental impacts that many in the region fear will result from a planned $4.8 billion mining initiative. 
The people of the north-Andean region of Cajamarca, northwestern Peru, are on indefinite strike since a week ago against a mining project in the area.  The demonstrations in the northern region of Cajamarca, which included roadblocks designed to pressure the government to cancel the largest mining investment in Peru's history, started 10 days ago. 
"However, the government deployed a large number of troops over the weekend, and even brought in the head of the joint forces command, General Luis Howell, on Sunday. That means everything was prepared for the declaration of a state of emergency, and they were just looking for a pretext for a military crackdown on the social protests," he added. The two-month state of emergency, which covers the provinces of Cajamarca, Celend'n, Hualgayoc and Contumaz' in the south of the region of Cajamarca, suspends constitutional rights such as freedom of assembly, association and circulation, and gives the security forces the right to search homes at will.  The four provinces of Cajamarca state that have been paralyzed by strikes and roadblocks that have choked activity, caused shortages in the region and led to clashes in which dozens of people have been injured. RAISING THE STAKES: The state of emergency restricts civil liberties such as the right to assembly and allows arrests without warrants in the effected region.  The 60-day state of emergency takes effect across four provinces of Cajamarca state, the A ssociated Press reported. It restricts the right to assembly and allows arrests without warrants. 
The army and police will have additional powers for 60 days, including the right to arrest without a warrant in four states within the Cajamarca region. 
Humala said in a brief televised address Sunday night that protest leaders had shown no interest "in reaching minimal agreements to permit a return of social peace" after a day of talks in Cajamarca with Cabinet chief Salmon Lerner, who was accompanied by military and police chiefs and was guarded by heavily armed police.  Humala, a former army officer, called leaders of the environmental protest intransigent after weeks of mediation efforts failed again late Sunday, prompting him to give the military and police extraordinary powers to end rallies that have shut roads, schools and hospitals in Cajamarca. 
We don't know why," Sanchez said. Humala, a former army officer who shed his leftist rhetoric and recast himself as a moderate to win election in June, invoked a state of emergency on Sunday to break 11 days of protests that had shut roads, schools and hospitals in Cajamarca.  The decision to declare the state of emergency followed a trip to Cajamarca by Prime Minister Salomon Lerner to meet with protest leaders and regional authorities. 
Cajamarca state's governor, Gregorio Santos, has been leading the protests and vowed to continue the fight against the mine project.  Santos said protest leaders had asked government officials for an additional 12 hours to consult with protesters. A German agronomist advising them, Reinhard Seifert, said he believed the government had no intention of engaging in serious dialogue. He noted that authorities had sealed off the state capital's central square on Sunday and the only demonstration was by mine workers "who marched, wearing white shirts and carrying placards that said "No to the roadblocks.  "Representatives of the Catholic Church and public advocates have exhausted the means to establish a dialogue" with protesters, Humala said in a speech Sunday night. Blaming the "intransigence" of unnamed local and regional leaders, he said the government has been unable to reestablish public services suspended since widespread protests began late last month.  Humala said in a televised address Sunday that the government "has exhausted all paths to establish dialogue as a point of departure to resolve the conflict democratically," the Associated Press reported. He blamed the conflict on "the intransigence of a sector of local and regional leaders." 
A Denver-based company, Newmont, plans to expand the mine's operations in 2015 relocating four lakes to man-made reservoirs that locals say will disrupt groundwater flow in the area, the BBC reported. Last week, the country's Deputy Environment Minister resigned saying he did not agree with the government's handling of the conflict, the Associated Press reported.  A Newmont official told the Associated Press the company is "closely monitoring the situation and continues to want to participate in a good-faith dialogue" with local residents. In the statement issued last week, the company said that if it could not continue with Conga, it would change its focus to gold mines in other countries.  Analysts say that in addition to environmental concerns, the protests have gained support from local residents due to a deep distrust of Yanacocha, which has been operating South America's biggest gold mines since the early 1990s. 
A Canadian mining firm is preparing draft proposals for a major gold mine north of Fairbanks, and putting some well-known faces in front of the project.  Protesters have been angry with a gold and copper mining project, primarily owned by the US-based Newmont Mining Corporation.  Since Nov. 24, schools and businesses have been closed and roads blocked in much of the area because of protests against the project, which is to be operated by Newmont Mining.  The protests took place despite an announcement Tuesday by U.S.-based Newmont Mining Corp. that work on the project would be suspended. 
After days of increasingly violent protests, Yanacocha, majority owned by US-based giant Newmont, agreed to a request by the government to suspend the project.  Yanacocha decided to suspend the project last week after six days of a general strike in Cajamarca, including a roadblock of the local capital and a riot which left 18 casualties, including six officers injured by rocks, and five protesters with bullet wounds.  Protests had raged throughout the Cajamarca department for the better part of a week, with a mob setting fire to a local warehouse and the main airport being forced to close. At least 10 people were injured in Tuesday's protests, which brought the department to a near-standstill, before the suspension of the project was announced.  Several weeks ago, the Interior Ministry asked prosecutors to file criminal charges against Cajamarca Gov. Gregorio Santos and four other local leaders who have led protests against Conga, a top ministry lawyer, Julio Talledo, told The Associated Press. 
"Social inclusion depends on the investment process continuing," Abugattas told reporters in Lima today. "I believe Conga will go ahead, but it's important that all precautions are taken." The city of Cajamarca, which lies near the deposit 560 kilometers (350 miles) northwest of Lima, reopened its airport, bus stations, schools and food markets after Humala sent 2,000 soldiers to guard highways, water and power companies and government offices, according to footage broadcast today by Lima- based Canal N.  The law will not go into affect until January and is not retroactive, leaving Humala's team scrambling to mediate existing conflicts over projects that were approved by the previous government, like Conga.  Environment Minister Ricardo Giesecke said the government will review all mining projects that could result in conflicts, taking into account issues like the use of water.  Residents of Peru are concerned over the state of potable water sources as a result of the mining project.  In southeastern Peru, a regional protest that left 30 injured in Andahuaylas last month was suspended after regional authorities pledged to carry out an in-depth study on water supplies before offering mining licenses.  There are currently more than 60 disputes in Peru over the alleged detrimental impact of mining on water supplies, according to the national ombudsman's office. 
LIMA, Peru - Peru have declared a state of emergency to suppress dissent in the country due to a planned mining construction of a company in the said country.  President Humala has declared a state of emergency in the northern part of Peru as talks with protesters have broken down.  Despite many early successes, Humala's anti-corruption credibility is at risk as the attorney general and Congress investigate Vice President Omar Chehade for corruption. Chehade, one of Peru's two vice presidents, allegedly asked a police general to help his brother evict workers from a cooperative farm to benefit a private company. Humala has said he would prefer that Chehade resign, but that he cannot legally fire him and the results of the inquiries will determine his fate. What to watch for: -- Public prosecutors find Chehade guilty of illegal lobbying, Humala's credibility hurt by the drawn-out scandal. -- Radical members of Humala's party become frustrated by his moderate policies. -- Humala struggles to hold together a diverse cabinet or reshuffles it to reflect a more progressive streak. -- Statist reforms or public-private partnerships in the energy sector. 
Sources at Dircote, Peru's counterterrorism police, said the two were detained for "investigatory reasons." Saavedra - who once spent a decade in prison for belonging to the violent left-wing Tupac Amaru insurgency and has said his past shouldn't be used against him - has emerged as a high-profile leader in an environmental dispute that has tested Humala's resolve to govern as a centrist who can simultaneously help Peru's poor and attract foreign investment. 
Cabinet chief Salmon Lerner spent most of Sunday in the region, under heavy police protection, trying unsuccessfully to reach an accord with local leaders. In a news conference after the president's speech, Santos urged the project's opponents to "not be provoked" and to hang flags from their houses to register their position.  The future of four mountain lakes of the country are at stake. People in the region depend on them for drinking water and irrigation. The mine project would involve emptying the lakes and replacing them with a reservoir.  At stake in the dispute is Peru's largest investment project, a mine that would yield $2 billion of metal a year at current prices in Latin America's seventh-largest economy, a nation of 30 million where 7.3 percent are unemployed.  Humala took office in July with promises to resolve the disputes, which threaten to derail some $50 billion in investments by mining companies during the next 10 years.  If Conga were to be shelved, government officials fear not just for the windfall tax's yield but also for the fate of more than $40 billion in mining investment that's in the pipeline.  Officials fear that the shelving of Conga would not only reduce the windfall tax but also would affect some of the more than $40 billion in mining investments that are planned. 
"We had given a talk about mining and the Conga project in Congress and the police detained us when we left.  In the wake of that day's violence, the Yanacocha consortium announced a suspension of the Conga project.  What to watch for: -- Implementation of the consultation law in rural towns. -- Dashed hopes in towns where the law won't be applied retroactively. -- The Conga project is built or canceled permanently, either solidify Humala's reputation as a friend of big business or emboldening the radical left.  The Denver-based Newmont was supposed to begin production from the Conga project in 2015.  Last Wednesday, Newmont announced in a statement that it was suspending construction activities at the Conga project for the safety of employees and community members. 
According to the sociologist Barrenechea, whether Conga really would trigger the environmental devastation that locals fear barely matters. "It is not about whether the project is legal or justified in terms of Peru's overall economic development," he told GlobalPost.  Peru's environmental ministry has acknowledged that the company has not accounted for the cumulative effects of the project across Cajamarca's fragile watersheds.  Peru's deputy environment minister Jose De Echave last month resigned in protest over the project, calling official environmental impact studies on the project "weak, outdated and lacking in credibility." 
Local elected officials have led the protests against the project, which is worth 4.8 billion dollars.  Local residents fear that contaminated water from the project could ruin area lakes and rivers.  The open-pit project, located some 3,700 meters (12,140 feet) above sea level, involves moving the water from four lakes high in the mountains into reservoirs the company would build.  The major conflict is based on the need to drain four lakes, and re-channel the waters to man-made reservoirs, in order to develop the open pit mine. 
Social conflicts have led to the suspension of numerous mining projects in recent years, including Southern Copper Corp.' s (SCCO) Tia Maria copper project.  The consortium, led by Colorado-based Newmont Mining, said in a statement that the suspension was "required" by the government "for the sake of re-establishing tranquility and social peace." Strike leaders have not called off their action.  Conga is being developed by Minera Yanacocha SRL, which is 51.35% owned by Newmont Mining Corp. ( NEM ). 
On Nov. 29, five comuneros (communal peasants) received bullet wounds in clashes with the National Police at different locales around Cajamarca region--including the at Yanacocha mine site in Cajamarca province and the Conga mine site in Celend'n province.  Protesters block the way to the Yanacocha mine in Cajamarca, Peru on November 25,.  In 2000, a mercury spill at the Yanacocha mine poisoned more than 900 villagers, and the case was eventually settled out of court. Local opponents claim to have been placed under surveillance -- and in one notorious, unresolved case a community leader was shot dead in 2006, days before he was due to meet representatives of Peru's ministry of energy and mines to discuss his concerns with Yanacocha. 
Humala was strongly critical of the protestors. In a televised address to the nation, he said "the intransigence of local and regional leaders been exposed". "Not even the most basic agreements could be reached to ensure social peace and the reestablishment of social services," he said.  Humala's office said Monday that regional ministers and the presidency have attempted to start a dialogue with protesters in the Cajamarca region but that little progress has been made.  Cajamarca strike leader Milton Sánchez was not appeased. "We regret that the government's reaction came after the spilling of blood in which today we have 17 wounded," he told the AP by phone the night after the latest violence. Humala meanwhile was able to secure a pledge by strike leaders elsewhere in the country to call off their actions while talks ensue.  Santos called the state of emergency "a joke" and said that protest leaders were already working on normalizing activities. He said the measure has only magnified the situation and that if the state of emergency is lifted then protest leaders will be open to resuming talks with central government officials. 
In compliance with constitutional provisions, we have announced the declaration of a state of emergency," Humala said in a statement. He added that the country's legal system clearly states that "those take over local roads by force, or hinder and impede the free movement of citizens, or disrupt the normal functioning of public services or legally authorized works" should be punished.  The state of emergency, which begins Monday, which will last for 60 days in four areas of Cajamarca department, according to Andina.  Sunday's state of emergency, which will remain in force for two months, allows authorities to keep the troubled region under military control. It also suspends certain constitutional rights, such as freedom of assembly, freedom from unauthorized searches and seizures, and the ability of people to travel freely across the affected area.  The Peruvian leader also ordered that army troops be mobilized to support police in the region, where some constitutional rights have been suspended under the emergency decree. 
Salomón Lerner also met in Lima with the regional president of Madre de Dios, Luis Aguirre, and Aquiles Velásquez, leader of the Madre de Dios Mining Federation (FEDEMIN), to announce an accord suspending the general strike in the lowland rainforest region.  Cajamarcas president, Gregorio Santos, and peasants want the mining project cancelled.  Cajamarca's regional president, Gregorio Santos, told the AP that opponents want "a legal document that definitively eliminates" the project. 
Last week, Newmont suspended work on the project, which affects the Cajamarca districts of Enca'ada, Sorochuco and Huasm'n, where the mainly impoverished rural highlands population depends on agriculture and livestock for a living and needs abundant clean water.  Critics say the mining project would adversely affect the area's ecosystem and would leave cattle in the zone without access to water. CNN's Helena DeMoura and journalist Maria Belaunde contributed to this report.  Conga was expected to start production in 2015. It is the country's biggest mining project.  Conga would require the draining of several mountain lakes to make room for dumps of mining waste. The lakes form the headwaters of three different rivers used by thousands of local campesinos, or peasants, for their subsistence farms. 
The Denver-based company also operates the giant Yanachocha open-pit gold mine 20 miles to the north of the Conga site.  An open pit at the Batu Hijau copper and gold mine operated by PT Newmont Nusa Tenggara in Sumbawa, West Nusa Tenggara province, Indonesia.  Newmont employs approximately 15,000 people worldwide. Other metals that the company mines include copper and silver. 
Production in the Americas accounts for about 70% of the company's equity ounces, but even so, Newmont is the largest gold mining company in Australia.  Newmont fell 0.7 percent to $65.50 at 9:48 a.m. in New York. It has risen 6.6 percent this year, compared with the 12 percent drop in the Philadelphia Stock Exchange Gold and Silver Index. Its output has climbed for three successive years and was at 5.39 million ounces in 2010, equal to about 6.2 percent of global mined output, according to data compiled by Bloomberg Industries. Newmont is the second-largest producer ranked by both sales and output after Canada's Barrick Gold Corp.  Newmont fell 2.6 percent to $67.03 at the close of trade on Dec. 2 in New York. The stock is up 9 percent this year. 
Richard OBrien, Newmonts President and Chief Executive Officer, said, "Newmont has nearly two decades of successful partnerships with the governments and communities at our Peruvian operations.  "Humala in a way has turned the mining industry into a partner of the government," said Isabel Darrigrandi, who covers Peruvian mining stocks for Celfin Capital SA in Santiago.  Peru needs mining investment to grow by an average 6 percent to finance spending on the 8 million Peruvians living in extreme poverty, Finance Minister Miguel Castilla said in a Dec. 3 interview.  A mining-dependent economy, Peru earns more than 60 percent of export income from mining. 
With gold at record levels, the stakes could not be higher for Peru's economic development, which is heavily dependent on mining royalties.  Dec. 5 (Bloomberg) -- Protesters halted demonstrations that have paralyzed Peru's biggest gold project and threatened.  Protests forced the closure last week of the airport in the city of Cajamarca as some 500 protesters besieged it and 100 passengers headed for Lima were left stranded. They also had used boulders and fallen frees to block road traffic, but police removed these barricades on Saturday. Cajamarca, known as the city where the last Inca emperor filled a room with gold to pay ransom for his release from Spanish conquistadors, is located 870 kilometers (550 miles) northeast of Lima.  The protests led to the closure of the airport in the city of Cajamarca last week, and clashes between police and protesters have left dozens injured. 
Cajamarca state's governor, Gregorio Santos, who has been leading the protests, called Humala's announcement an unnecessary provocation.  Local officials who support the strike have repeatedly invited Humala to visit Cajamarca -- a department of 1.4 million -- but so far only Prime Minister Salomon Lerner and three other members of the president's cabinet made the trip.  President Ollanta Humala Tasso announced the decision, described as an attempt to re-establish peace in the area, Andina reported.  Peru's then-presidential candidate Ollanta Humala talks to supporters during a campaign rally in Mala, southern Lima, May 26, 2011. 
While drawing support from Peru's peasant majority, Humala has also tried to curry favor among investors since taking office July 28. In addition to asking Central Bank President Julio Velarde to a second, five-year term, he's also said he'd honor policies that made Peru the fastest-growing economy in Latin America over the past decade.  Conga will allow Peru "to carry out a great transformation," Humala said Nov. 16.  Humala distanced himself from Chavez and his firebrand rhetoric. During the recent presidential campaign he attracted moderate voters by pledging to promote private investments and swearing on a bible that he would not seek to rewrite Peru's Constitution. From Dec. 4-5, Humala will then travel to Merida, Mexico, where he will participate in the second Summit on the Pacific Alliance. That conference will discuss issues related to regional integration, peace, cooperation and development.  The new anti-drug czar Ricardo Soberon says eradication has since resumed and that Peru has had some success persuading U.S. officials to accommodate Humala's emphasis on alternative development for coca farmers.  During an interview with Ideeleradio on Monday, Santos said that Peru's new government "is lying to the country, that they are resolving conflicts. What they are doing is only drawing them out, cooling them and later it is going to cost the country a lot."  SOCIAL CONFLICT Peru's human rights agency says there are some 200 social conflicts over natural resources in the country, mostly in poor rural areas that have failed to see the benefits of a prolonged commodities bonanza. 
The ones promoting the protest are not people from the area but politicians from the left that want control of the area. 2 billion of dollars invested in Peru will produce work, but the propaganda by some will ruin others.  Peru is the world's No. 1 coca producer and the second-biggest cocaine producer, according to the United Nations, while the United States has said Peru may now be a bigger cocaine producer than Colombia. At least 50 soldiers or anti-drug police have been killed in the VRAE and other jungle areas controlled by the Shining Path in the last two years. 
As Peru's dairy and livestock region, Cajamarca has been afflicted by a drought, which has forced water rationing for three months.  Cajamarca is Peru's leading dairy and livestock region, and the issue is of particular concern as a drought has forced water rationing for three months. 
The project, located in the region of Cajamarca, 560 kilometers (350 miles) northwest of Lima, will include the construction of four reservoirs to replace four lagoons.  In the remote regions where many projects are located, the state may be entirely absent. 
Protesters also have criticized Humala for moving too far to the right and for supporting the project, which would generate thousands of jobs and enormous tax revenues.  Protesters have continued to march and demanded the government permanently cancel the project.  The move came after talks between the government and protesters, who say the project threatens a vital watershed, broke down. 
Even if governments welcome economic development, many new projects are taking place in ever more distant and environmentally fragile locations. Companies and governments in countries as far-flung as India, Indonesia and Bolivia have had to confront this problem. 
Giesecke supported comments by Buenaventura Chief Executive Roque Benavides that the company is open to reviewing Conga's environmental impact study, which was approved by the government in October 2010.  National officials have balked at protesters' demands for a new study of the environmental impact of the mine, which was to begin production in 2015. 
Humala, in a nationwide address, called leaders of the environmental protest intransigent and said the ruling would give security forces.  Pres. Humala called the leaders of the said protest in his nationwide address, but they remain stiff. 
Protest leader Wilfredo Saavedra said mine opponents had agreed to dismantle the blockades. 
Protests have lasted more than 11 days in Cajamarca, with some turning violent, according to a statement from the president's office.  Critics had urged the president to take a firmer hand in breaking up the strike, saying left-wing groups had infiltrated the protest marches by local residents. 
The government must choose between locals' water source or major gold profits.  "In a democracy, it is about whether it is legitimate in the eyes of the local population. That clearly is not the case right now, and the company and the government need to make a greater effort to communicate with local people."  Calming local fears about exploitation and damage will require the government and mining companies to work together. Some of the practical concerns can surely be met: mining companies no longer routinely wreck the environment in which they work. They also need to find a way to engage with local communities and persuade them that the intrusion will be temporary and of overall benefit.  Under Peruvian law, mining companies must consult local communities and obtain prior approval before conducting any mining operations. 
Holdings include Battle Mountain Gold, Normandy Mining, and Franco-Nevada Corp. Newmont also has many joint venture relationships.  Citizens are indignant over the activity of the American Newmont company which has been mining in the north.  Away from Lima, where mining companies operate, the problem is more often than not an absent, rather than a weak, state. Community relations can be a nightmare, from figuring out who exactly belongs to a community and who are its legitimate leaders, to managing the very high expectations of a company's responsibilities.  The mining company as part of the contract will make the water drinkable for people and animals.  The officials are reportedly fearful the mine will hurt water supplies affecting thousands of people in the area.  The project's opponents claim that it will disrupt a chain of Alpine lakes and pollute water supplies.  You all know the environmental studies done show that the lakes in that area have no drinking water as of right now. 
Mr Humala said the measure would last 60 days and allow security forces to restore public services shut by rallies and marches against the mine.  The conflict has tested populist Humala's resolve to govern as a moderate who can simultaneously help Peru's poor and keep big business happy.  I would think that people in Cajamarca who voted for Humala are feeling pretty disillusioned."  The state of emergency has restored calm to the streets of Cajamarca, where anti-Conga protestors, lead by regional governor Gregorio Santos, had blocked roads, destroyed property and extorted hapless drivers with "taxes". 
Yanacocha intends to resume Conga once tempers have cooled, something that would likely only trigger a new wave of protests.  Conga is the latest project to be affected by opposition from nearby communities. 
The special powers suspend freedom of assembly and allow the army to help police end marches and rallies against the proposed gold mine.  Reservoirs, LOL. no mining involves toxic poisonous heavy metals, like LITHIUM in GOLD MINING, they don't TALK ABOUT THE TOXIC CHEMICALS, which they won't pay to clean up nor for the babies mutating, or the people that die of cancer. 
EL HUECO MAS CONTAMINADO DEL MUNDO ES PERUANO Y ES MINERO: LA OROYA
Es la primera vez que esto me
400 × 684 - 69 k - jpg