Peru rules out unilateral closure of mines in Ayacucho region

RIO DE JANEIRO, BRAZIL – Peru’s Council of Ministers has clarified Wednesday that it rules out the closure and requests for the unilateral withdrawal of operations at four mining units in the Ayacucho region said in a statement.

Last week, the country’s prime minister, Mirtha Vásquez, announced that the government would not grant any more extensions to the operating contracts of four silver and gold mines in the Ayacucho region due to environmental issues.

Two of the mines – Pallancata and Inmaculada – belong to Hochschild Mining. In response to this announcement, the company’s shares suffered a fall of more than 36% and announced the implementation of actions to “vigorously defend its position”.

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However, the Government has reaffirmed its “absolute” respect for fundamental rights, the constitutional and legal framework in force, and the freedom of enterprise this Wednesday (24).

“In this framework, and in relation to the latest events, we rule out the closure and request for the unilateral withdrawal of the operations of the units of the mining units, which comply with the legal requirements and conditions established in the national and sectoral legislation, and which have the corresponding permits in force,” the government explained in a statement.

Likewise, the mining companies may request extensions and modifications to their operating permits. Given these requests, the competent authorities will be the ones to evaluate the proposals by the legislation in force.

The Council of Ministers has added that the closure plans submitted by the companies and approved by the authorities are managed and controlled by the Peruvian State.

The government has also expressed its “resounding rejection of violence in all its forms” about some protests that have arisen around these mines. However, it has recognized “the legitimate right to social protest”.

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