Nov. 6 (Bloomberg) -- Mine projects in Peru will continue to face delays because of disputes over water until a new law takes effect that gives companies more say in how the resource is managed, Southern Copper Corp. Legal Manager Guido Bocchio said.

The new law approved in March hasn’t been implemented yet because farm groups are seeking greater influence over regional water councils, Bocchio said Nov. 4 in an interview at Southern’s offices in Lima. The law may take effect in January, he said.

Companies such as Southern, Anglo American Plc and Cia. De Minas Buenaventura SA face opposition from farm groups worried that new copper mines will take up water needed for agriculture. Peru is the world’s largest silver producer, third largest in copper, zinc and tin, and ranked fifth in gold.

“Peru’s mining boom has had a setback in terms of legislation,” he said. “This uncertainty hurts business.”

Villagers in September passed a referendum opposing Phoenix-based Southern Copper’s $934 million Tia Maria project, which is scheduled to produce 120,000 tons of copper a year by mid-2011. London-based Anglo American has been unable to develop its $3 billion Quellaveco project since 1992 because of disputes over water rights with local communities.

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

Last Updated: November 6, 2009 10:01 EST