London-listed mining firm banned from expanding in Peru region
The Peruvian head of cabinet had indicated that approvals for more mining or exploration will no longer be granted.
The meeting also suggested a timetable and terms for the closure of certain mining projects in the southern Ayacucho region, including the company’s Pallancata and Inmaculada mines.
Hochschild, which operates primarily in Peru and Argentina, said that it would defend its position in the region, adding that it has not received any formal communication from the government regarding the alleged ban.
“Hochschild is surprised by this unilateral announcement by the head of cabinet. Our goal is to continue investing in Peru, growing our resources and extending mine lives, in accordance with the Peruvian legal framework,” CEO Ignacio Bustamante said in a statement this morning.
“We are prepared to enter into a dialogue with the government in order to resolve any misunderstandings with respect to our mining operations. However, given the illegal nature of the proposed action, the company will vigorously defend its rights to operate these mines using all available legal avenues.”
The mining firm employs more than 5,000 people directly and around 40,000 people indirectly in Peru.