Peruvian community suspends Antamina protest that rocked markets

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Julio Velarde, President of the Central Bank of Peru, speaks during an interview with Reuters at the headquarters of the Central Bank in Lima, Peru, April 30, 2018. REUTERS / Mariana Bazo / File Photo

LIMA, Nov.2 (Reuters) – A rural community in Peru will lift the blockade on Wednesday at the country’s largest copper mine, Antamina, after protests forced miners to suspend operations, Peru’s ministry said. Energy and Mines in a tweet.

The protest, part of a series of protests against miners in Peru, rocked the Andean country’s markets on Tuesday, putting left-wing President Pedro Castillo to the test.

Castillo sent officials to the region on Tuesday to negotiate after protesters told Reuters they would not lift the blockade without first holding formal talks between all parties.

Antamina did not respond to a request for comment on the deal.

The Energy and Mines Ministry said the protest would not be lifted until Wednesday when Antamina signed a formal talks deal.

Talks will resume on Friday with a visit from Antamina CEO Victor Gobitz, according to a copy of the deal tweeted by the Peruvian prime minister’s office.

The world is no. Copper producer 2 saw its sol currency and stock markets weaken on Tuesday, with traders highlighting unrest in mines owned by Glencore (GLEN.L), BHP Billiton and MMG Ltd (1208.HK) in recent times. weeks.

The country’s largest copper producer, Antamina, suspended operations on Sunday due to a roadblock established by protesters in the rural community of Aquia.

Castillo came to power in July thanks to strong support from voters in mining regions, pledging to redistribute mineral wealth to communities that have long complained they were left behind in the country’s copper-linked economic boom.

‘NO ADVANTAGE’

Adan Damian, the head of the Aquia community, previously told Reuters that Antamina was giving them “no benefit” in an interview Tuesday morning before the decision was made.

He said the main grievance was that Antamina never fully paid Aquia for the land she used, a claim the company has disputed in the past. Read more

Damian did not respond to a request for comment after the deal was closed.

The recent rise in tensions has led industry bodies to denounce a “spiral” of protests and prompted industry-friendly central bank chief Julio Velarde to say the protests have traditionally damaged the image. strong country as an investment market.

“Obviously, order needs to be restored,” Velarde said Tuesday as he was sworn in for an additional five-year term.

A currency trader at a Lima bank said the local soil currency was falling on political backdrop and “really negative news” of the suspension of production in Antamina.

The currency weakened 0.43% to more than 4 per dollar, while a Lima stock index .SPBLPSPT lost around 0.36%.

Report by Marcelo Rochabrun and Marco Aquino; Editing by Mark Potter and Aurora Ellis

Our Standards: Thomson Reuters Trust Principles.


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