Southern Copper To Evaluate Peru Tia Maria Project April 15

LIMA, Mar 30, 2011 (Dow Jones Commodities News via Comtex) -- The board of Southern Copper Corp. (SCCO) is to evaluate its stalled Peruvian Tia Maria mine project on April 15, said Chief Executive Oscar Gonzalez Rocha Wednesday.

In an email, Gonzalez Rocha said that as president he will "recommend continuing, but the final decision rests with the board which represents the shareholders."

Analysts pointed out that the April 15 review date will allow the company to take stock of Peru's first-round election vote on April 10.

The results may show leftist presidential candidate, Ollanta Humala, who wants the state to take a greater role in running the economy and plans higher mining taxes, in the running for president. A second round run-off for the post of president is scheduled to take place June 5.

The Tia Maria project has been on hold since April last year, due to protests claiming it will cause water and environmental damage in the southern Peruvian district of Islay. In another development last week, the Mining Ministry said the company must comply with a number of new environmental-impact recommendations contained in a government commissioned United Nations report.

On Tuesday, Southern Copper official Mauricio Pero said the company was reviewing the U.N. report and expects to comply with the "applicable recommendations" within the required 90- day period, starting from Monday when the company officially received a copy.
Tia Maria is seen producing 120,000 tons of copper a year and in February the company said it expected the mine to go into production at the end of 2012. The company has said that it plans to spend about $1 billion developing the project.

Southern Copper, which has mines in Peru and Mexico, is controlled by Grupo Mexico SAB de CV (GMEXICO.MX).

Peru is the world's second-biggest copper producer, according to figures from the mining ministry.