{"id":1134542,"date":"2019-08-25T08:30:59","date_gmt":"2019-08-25T13:30:59","guid":{"rendered":"https:\/\/www.mining.com\/?p=1000206"},"modified":"2019-08-25T08:30:59","modified_gmt":"2019-08-25T13:30:59","slug":"southern-copper-reviewing-tia-marias-budget","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1134542","title":{"rendered":"Southern Copper reviewing T\u00eda Mar\u00eda\u2019s budget"},"content":{"rendered":"<p>Southern Copper\u2019s VP of Finance, Ra\u00fal Jacob, said this week that the company is evaluating the possibility of making changes to the T\u00eda Mar\u00eda project\u2019s $300-million development budget.\u00a0<\/p>\n<div class='d-flex justify-content-center'>\n<div id='div-gpt-ad-1561499308230-0'><script>googletag.cmd.push(function() {googletag.display('div-gpt-ad-1561499308230-0');});<\/script><\/div>\n<\/div>\n<p>According to Jacob, the financial reassessment follows the <a rel=\"noreferrer noopener\" aria-label=\"temporary suspension (opens in a new tab)\" href=\"https:\/\/www.mining.com\/peruvian-government-suspends-southerns-construction-licence-for-tia-maria-project\/\" >temporary suspension<\/a> of the project\u2019s construction <g class=\"gr_ gr_3 gr-alert gr_spell gr_inline_cards gr_disable_anim_appear ContextualSpelling multiReplace\" id=\"3\" data-gr-id=\"3\">licence<\/g>, recently issued by the Peruvian Ministry of Energy and Mines.<\/p>\n<p>In early August, the ministry\u2019s Mining Council made public a <a rel=\"noreferrer noopener\" aria-label=\"communiqu\u00e9 (opens in a new tab)\" href=\"https:\/\/www.mining.com\/wp-content\/uploads\/2019\/08\/Peru-suspends-Southern-Coppers-licence.pdf\" >communiqu\u00e9<\/a> where it explained that the suspension was based on a request made on July 19, 2019, by the regional government of Arequipa, the Association of Workers of the Chucarapi Pampa Blanca Sugar Processing Plant, and the Board of the Tambo Valley residents, to review Southern\u2019s proposal. Such a review has to be carried out within the next four months.<\/p>\n<figure class=\"wp-block-pullquote alignright\">\n<blockquote>\n<p>Southern is proposing an \u2018environmental insurance policy\u2019 for the farms and communities that surround the T\u00eda Mar\u00eda project\u00a0<\/p>\n<\/blockquote>\n<\/figure>\n<p>The petitioners believe a review is needed because the T\u00eda Mar\u00eda site sits on a protected area known as the \u2018Lomas de Cachendo\u2019 ecosystem, where extractive operations should be forbidden.<\/p>\n<p>But Southern Copper (NYSE:SCCO) says that while the decision on the review is being made, it cannot move forward with its plans for this year, which included social programs for the nearby communities.\u00a0<\/p>\n<p>During the <a rel=\"noreferrer noopener\" aria-label=\"Jueves Minero (opens in a new tab)\" href=\"http:\/\/www.iimp.org.pe\/jueves-minero\" >Jueves Minero<\/a> event, organized by the Institute of Mining Engineers of Peru, Jacob also said that the company -a subsidiary of Grupo Mexico- is planning to present solid legal arguments before the Mining Council to properly explain why the project should go ahead.<\/p>\n<p>The exec also suggested that Southern will put forward \u2018legal measures\u2019 to deal with the review of the project requested by the Arequipa government.<\/p>\n<p>In terms of the <a rel=\"noreferrer noopener\" aria-label=\"protests (opens in a new tab)\" href=\"https:\/\/www.mining.com\/southern-copper-faces-fresh-opposition-to-billion-dollar-project-in-peru\/\" >protests<\/a> that farmers from the Tambo Valley have been carrying out against the copper project since mid-July, Jacob said that the company is proposing an \u2018environmental insurance policy,\u2019 which would be in place from the construction phase onwards.<\/p>\n<p>\u201cFor example, if a farm is affected [by Southern\u2019s operations], the insurance company would take care of the damages and reimburse farmers for the lost profits,\u201d he said.<\/p>\n<p>According to Jacob, the miner is also willing to set up an online solution so that authorities can monitor the project and verify whether or not it is complying with environmental regulations.<\/p>\n<p>This is not the first time Southern Copper, which is the world\u2019s fifth-largest producer of the red metal in terms of output, experiences a setback related to T\u00eda Mar\u00eda.<\/p>\n<p>The construction plan has been <a href=\"https:\/\/mining.com\/web\/southern-copper-says-legal-dispute-perus-tia-maria-resolved\/\">halted and readjusted twice<\/a> since it first came up, around 2010, due to fierce opposition by locals who are worried about its environmental impacts and the possibility of an open-pit mine damaging crops.<\/p>\n<p>Southern executives, however, <a href=\"https:\/\/www.mining.com\/tia-maria-copper-project-gaining-legitimacy-exec\/\">are hopeful<\/a> that the project will be developed by 2020. Once completed, the mine is expected to produce 120,000 tonnes of copper a year for an estimated 20-year lifespan.<\/p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The suspension of the construction licence is forcing the company to reassess its plans for 2019.<\/p>\n","protected":false},"author":42,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[2648,369,2640],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1134542"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/42"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1134542"}],"version-history":[{"count":2,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1134542\/revisions"}],"predecessor-version":[{"id":1134548,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1134542\/revisions\/1134548"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1134542"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1134542"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1134542"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}