Southern Copper, Peru holding discussions over ongoing protests at Cuajone mine

Southern Copper Corp. reached a deal with the Peruvian government to begin talks aimed at stopping protests that led to the closure of the Cuajone copper mine in Peru, Reuters reported April 13, citing a statement from Peru's Energy Ministry.

The Cuajone operation suspended production Feb. 28 after protestors blocked the railway used to transport minerals and supplies. Protestors said the Peruvian government is failing to help guarantee jobs and financial security to local communities, according to the report.

A recent deal had already been made in which Southern Copper would have to withdraw complaints against protest leaders. If Cuajone is closed for a year, Peru will stop receiving over 3.1 billion soles in taxes and royalties, while 8,000 direct and indirect jobs might be lost, the report said, citing a company statement.

Southern Copper is 89%-owned by conglomerate Grupo México SAB de CV.

As of April 13, US$1 was equivalent to 3.74 Peruvian soles.

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