Newmont Mining Corporation, headquartered in Denver, CO, and one of the world’s largest gold producers, is facing some serious local opposition in Cajamarca, Peru, where they have plans for a 5 billion dollar gold mine, The Conga mine. And it’s making a difference. Recent poll results have shown that 78% of people in Cajamarca oppose the mine. That number increases to 83% in rural areas. Although nationally, 45% approve and 40% oppose it.
Miningweekly.com reports “this high-profile conflict has dominated President Ollanta Humala’s first year in office, resulting in five deaths and two cabinet shuffles.”
Locals fear the project, an expansion of the Yanacocha mine in Cajamarca, will cause contamination and ruin local water sources essential to their agricultural livelihoods. The company says reservoirs it would build will provide year-round water supplies in areas that currently suffer during the dry season.
The Conga mine would be one of the biggest investments in Peru’s history. Mining makes up 60% of Peru’s export earnings and has traditionally powered its economy, although towns near mines often are plagued by poverty.
The project has become a lightning rod for debates about whether mining can benefit local communities without damaging the environment, and whether national economic interests should trump local opposition to extractive activities.
Newmont’s CE, Richard O’Brien said last month that Conga “will occur only with local and national support … Conga is still in our plans but moving ahead on a very measured basis.”
We’ll be keeping any eye on how this develops.
