Southern Copper Cancels Plan to Build $1.4 Billion Peru Project

Southern Copper Corp. won’t proceed with plans to build a copper mine in Peru after renewed farmers’ protests, a company official said.

Local opposition to the project has been stoked by anti-mining “terrorists” with political motives, Julio Morriberon, the company’s director of institutional relations who oversees the project, told Lima-based Radio Programas.

“I’m here to announce the cancellation of Tia Maria project and the complete withdrawal of our investment,” from the area, he said.

Farmers concerned that the Tia Maria mine would pollute the local water supply marched this week in the Tambo Valley, 780-kilometers (484 miles) south of Lima. Three people died during protests against the project in 2011. The mine was part of Southern Copper’s plan to almost double output to 1.2 million tons.

“It’s impossible for us to carry on,” Morriberon said.

Southern Copper shares fell 4.5 percent to $28.10 at 11:23 a.m. in New York, the most since Jan. 13. Earlier the stock slid as much as 4.8 percent.

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