MAC: Mines and Communities

Peruvian farmers protest Anglo American's fresh water plan

Published by MAC on 2010-09-20
Source: Business News Americas (2010-09-02)

According to the newspaper, La República, residents are demanding that the Peruvian government force Anglo American to use sea water for its Quellaveco copper project - a move which would cost the UK company around US$200 million.

At present the UK company is planning to siphon fresh water from a major agricultural irrigation scheme.

ESPAÑOL

Moquegua residents protest water resolution for Anglo American's Quellaveco

Business News Americas

2 September 2010

Residents in southern Peru's Moquegua region held demonstrations on Wednesday (Sep 1) over a resolution by national water authority ANA related to water resources for London-based Anglo American's Quellaveco copper project.

The protests were held outside the regional government's office. Demonstrators were seeking a meeting with regional president Jaime Rodriguez, CNR news service reported.

In June, ANA rejected Anglo American's request to transfer some of the water from the Pasto Grande irrigation project to its 81.9%-controlled Quellaveco project.

The request was rejected because the application failed to provide sufficient information and documentation to justify the transfer.

Anglo American appealed the June decision and on August 27 ANA published a resolution in official gazette El Peruano saying the appeal was justified. The resolution annulled ANA's original decision.

Residents are concerned that Anglo American's use of water from Pasto Grande will affect agriculture projects.

Capital costs at Quellaveco are estimated at US$2.5bn-3.0bn, and the project is due to produce 225,000t/y of copper in concentrates once it ramps up to full production in 2016, pending initial startup in 2014.

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