(Minews) - Southern Copper Corp. said it is canceling the $1.4 billion Tia Maria copper mine project in southern Peru due to ongoing protests and a lack of government support.
Southern Copper’s director of institutional relations, Julio Morriberon, told RPP radio Friday that the company is pulling out of the Arequipa region, where the project is located.
”I am here to announce the cancellation of the Tia Maria project and the removal of all our investments in Arequipa,” he said.
”Our company isn’t ready to be a victim of these violent persons even more so when the government doesn’t give us the guarantees and the needed backing,” he added.
Protesters for years have marched and blocked highways in opposition to the proposed mine, saying it could hurt water supplies among other things.
In response, Southern Copper, one of the world’s biggest producers, has reworked its project several times to gain approval.
The government approved the environmental impact assessment for the Tia Maria project in August 2014. The company had said it would produce 120,000 tons of copper cathodes a year, for an estimated 20-year lifespan.
Company officials had said recently that they hoped the mine could be running by 2017.
Peru is one of the world’s largest producers of copper, gold, silver and zinc, although it has been beset by widespread protests against mining projects for years.
The cancellation of the Tia Maria is a blow for the government, which hopes to sharply increase copper production to help fuel economic growth.
In another high-profile case, U.S.-based Newmont Mining Corp. put on hold development of its giant copper-gold project known as Minas Conga in northern Peru following violent protests.
Southern Copper operates mines, smelting and refining facilities in Mexico and Peru. Grupo Mexico SAB has a controlling stake in Southern Copper.
