Zeev's Turnips Patch-No Politics (ZEEV)

[basserdan]

*** Gold related post (NEM) ***

Another twist in NEM's road....

Peru pulls Yanacocha permit

Sep-20-04 In a move that could dramatically slow the pace of mining investment to the country, the government of Peru revoked an exploration drilling permit it had issued last month to Newmont's Minera Yanacocha. Newmont and Peruvian Compañia de Minas Buenaventura are the joint venture partners in the project and have operated the mine without incident for well over a decade as first gold was poured in 1993.

The mine operates five open pits, and the government pulled the permit which would have allowed exploring the concept of expansion at the Cerro Quilish gold deposit. Exploratory drilling by definition is simply drilling holes in the ground and has nothing to do with actual mining operations which could be years away and would be permitted after vast array of engineering and ecological studies, a concept clearly not understood by many.

The revocation comes after a series of incidents over the past month that included protests and blockades. Local residents of Cajamarca maintain Cerro Quilish is on a mountain key to their water supply and any mining operation would automatically pollute as well as reduce the flow of water from a local stream. There has been a drought in northern Peru for some years, which may have led to the hysteria.

Yanacocha voluntarily suspended the exploratory drilling earlier this month and then scaled back all mining operations for two days. At press time, Newmont said all normal mining operations have been resumed. Yanachocha is the largest gold producer in South America.

(c) Copyright World Mining Equipment 2004

http://www.wme.com/news.asp?d=/archives/2002/&s=Headlines-09-20-2004-12-10-04.htm