VANCOUVER (miningweekly.com) – Base metals miner Hudbay Minerals has resumed operations at its Constancia mine, in Peru, after negotiating a peaceful resolution regarding occupation of the openpit area, with support from the Peruvian government, the company reported Friday.
The Canadian miner on Tuesday called a halt to operations, citing trespassers in the openpit area.
According to a statement issued by nongovernmental organisation (NGO) MiningWatch Canada on Thursday, protestors indicated their discontent with the company’s failure to follow through on previous commitments and agreements.
According to the Peruvian Observatory of Mining Conflicts, the district of Chamaca is seeking renegotiation of a 2013 agreement with Hudbay to incorporate a yearly social benefit that would amount to a defined percentage of the company’s profits, similar to what takes place in the neighbouring province of Espinar around the Tintaya copper mine. The NGO stated that, since 2015, the municipality of Chamaca and the local population have also been asking for investment in education and infant malnutrition projects, which have yet to elicit a concrete response.
Human Rights Without Borders-Cusco also reported that the 2013 agreement with Chamaca included infrastructure projects that have not been fully implemented. As part of this negotiation, district authorities from Chamaca also requested that a contingency plan be established to address environmental contamination from the mine.
According to the NGOs, it is unclear if or when Hudbay will start to pay taxes on its income from the mine, as well as whether it might be seeking to use a mechanism in Peru known as ‘public works for taxes’, which lets companies write off supposed social contributions from future tax payments.