one off or a sign of things to come?

AAP article taken from the businessspectator:

http://www.businessspectator.com.au/bs.nsf/Article/Protests-halt-A48bn-Peru-mine-project-P4A9E?OpenDocument&src=hp23


Protests halt $A4.8bn Peru mine project
Published 5:58 PM, 30 Nov 2011

Days of increasingly violent environmental protests have forced the suspension of a $US4.8 billion ($A4.80 billion) gold mining project in northern Peru operated by US mining giant Newmont.

Protests throughout the Cajamarca department have been boiling over for almost a week, with a mob of some 1500 demonstrators setting fire to a local warehouse and the main airport being forced to close.

At least 10 people were injured on Tuesday's sixth day of protests against the so-called Conga Project, which President Ollanta Humala has so far backed.

The protests brought the department to a near standstill.

"For the sake of re-establishing tranquility and social peace in Cajamarca, it has been decided to suspend the project's activities," said a statement from the Yanacocha mine, operated by Newmont and local partner Buenaventura.

The open-pit Conga Project, located some 3700 metres above sea level, involves moving the water from four lakes high in the mountains into reservoirs the company would build.

Protesters say the reservoirs do not adequately replace the lakes, which also provide groundwater for agriculture and to irrigate pasture fields for livestock.

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.

Deputy environment minister Jose De Echave resigned on Monday, calling official environmental impact studies on the project "weak, outdated and lacking in credibility."

The statement from Yanacocha - the largest gold mine in South America, also located in Cajamarca department - said the company was committed to entering new negotiations and seeking the "recovery of trust".

Protests forced the closure of the airport in the city of Cajamarca on Monday as some 500 protesters besieged it and 100 passengers headed for Lima were left stranded.


The question is whether this is an isolated protest based on water or a sign that mining in Peru is facing growing opposition. Given that Humala originally supported this project a populist about turn here (whether justifiable or not and irrespective of whether this is an isolated case) could negatively impact the entire Peruvian exploration industry. Perhaps MNC wanted to get their CR away before an official government change of position on this one?