Bloomberg News

Newmont’s Peruvian Gold-Mine Review Accepted by Opponents

December 28, 2011

(Updates with comment from official in third paragraph, share price in fifth.)

Dec. 27 (Bloomberg) -- Opponents of Newmont Mining Corp.’s $4.8 billion Minas Conga gold project in Peru accepted a review of the mine’s environmental impact study, the Andean country’s government said.

The 40-day review of Peru’s largest investment project, which was suspended after environmental protests, will be funded by the government, Cabinet Chief Oscar Valdes told reporters in Lima today. The consulting company that undertakes the review must have at least 15 years of experience, he said.

“We’ve reached a happy ending where Peru came out winning,” Valdes said after meeting with 50 local officials from the northern highland region of Cajamarca. “We’ve reached a unanimous agreement on an international investigation and the way it will be done.”

Newmont, based in Greenwood Village, Colorado, suspended work last month at Minas Conga after Andean villagers protested that the mine will dry up water supplies. Companies including Anglo American Plc and Rio Tinto Plc have cut back investment in Peru because of protests, central bank President Julio Velarde said Dec. 16.

Newmont’s shares fell 0.8 percent to $61.37 at 4:15 p.m. in New York after sliding as much as 1.1 percent.

--Editors: Carlos Caminada, James Attwood.

To contact the reporter on this story: Alex Emery in Lima at aemery1@bloomberg.net

To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net


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