Peru suspends $1.4 billion mining project by Grupo Mexico
LIMA, Peru (AP) — Peruvian authorities have indefinitely suspended a planned $1.4 billion copper mine that has roused increasing protests by its neighbors.
Energy and Mines Minister Francisco Ismodes told N television Friday night that the Tia Maria project will be suspended until objections raised by protesting farmers are resolved.
The government granted a construction license a month ago to the local associate of mining company Grupo Mexico.
Farmers in the nearby Tambo Valley fear the open pit project will contaminate water they need, though the company says it will bring in its own desalinated water.
Protesters had blocked ports used by other mines in southern Peru.
An association of mining companies issued a statement saying the suspension is a bad signal for investors.