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Protesters block road to Peru Yanacocha gold mine

Wed May 13, 2009 10:58pm IST
 
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LIMA, May 13 (Reuters) - Protesters in Peru, angry over the handling of a mercury spill, have blocked the road to one of Latin America's largest gold mines, Yanacocha, which is running low on crucial supplies, sector sources said on Wednesday.

Residents near the mine, run by U.S.-based Newmont Mining Corp (NEM.N: Quote, Profile, Research) and Peruvian precious metals miner Buenaventura (BUEv.LM: Quote, Profile, Research) (BVN.N: Quote, Profile, Research), are asking for greater compensation related to a toxic spill that occurred in 2000.

They have blocked access for about a week.

"As of yesterday, 80 of Yanacocha's large trailers were not able to move -- 35 could not come down and 45 could not go up (to the mine)," said Fernando Rospigliosi, a conflict expert and former Peruvian interior minister.

"The company can withstand (the blockade) for up to two weeks, after which it may have to halt (production)," he said.

Officials at Yanacocha were not immediately available for comment, but a person familiar with company operations said the protests are having an impact.

"Vehicles are not being allowed access. There is almost no fuel and supplies are not coming in," the source said.

The mine, which is located some 375 miles (604 km) north of Lima, posted gold sales of 1.8 million ounces last year.

Peru is the world's sixth-largest gold producer. (Reporting by Marco Aquino; Writing by Dana Ford; Editing by Christian Wiessner)

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