Peru Protesters Attack Xstrata's Copper Mine; Clashes Kill 2, Injure 44

Sep 17 (Bloomberg)--

Peruvian protesters attempted to seize Xstrata Plc’s Tintaya copper mine in the southern Andes after clashes with police left two dead and wounded 44 others.

Police reinforcements will be sent to the Cuzco region tomorrow after 26 policemen were hurt by protesters throwing stones, Peru’s Cabinet Chief Jose Antonio Chang said. Villagers concerned that the Majes-Siguas II irrigation project will divert water supplies from local farming failed in their attempt to take over the Tintaya mine, he said.

"The government won’t begin a dialogue until the protests subside,” Chang, who was sworn in Sept. 14, told reporters today in Lima. "We trust this will occur by tomorrow so we can avoid further trouble.”

Xstrata this year approved $5.7 billion in projects in Peru, part of $41 billion in mining investment commitments in the Andean country over the next decade. Protests by farmers over water in the Andes in have delayed projects by Anglo American Plc, Southern Copper Corp. and Newmont Mining Corp. Xstrata spokeswoman Claire Divver wasn’t immediately available to comment.

A unit of Spain’s Actividades de Construccion & Servicios SA, known as ACS, was awarded a $424 million contract on Sept. 13 to build the Majes-Siguas II irrigation project in neighboring Arequipa.

Xstrata rose 50 pence to 1,160.50 pence in London trading. ACS climbed 3 percent to 35.85 euros in Madrid.