Canada's Bear Creek files suit in Peru over mine

Wed Jul 13, 2011 2:09am GMT
 

LIMA, July 12 (Reuters) - Canadian miner Bear Creek said on Tuesday it had filed for a legal injunction to regain its license for a mining concession in southern Peru after the government cancelled it to calm protests by indigenous groups.

Peruvian officials in late June revoked the company's license for the Santa Ana silver deposit after protests by Aymara Indians in the region of Puno turned violent.

Chief Executive Andrew Swarthout, in a statement, said Bear Creek still hopes a political solution is possible despite the legal filing.

The filing in Peru, a leading global minerals exporter, was made just days before President Alan Garcia leaves office and leftist leader Ollanta Humala becomes president.

Humala has promised to calm nagging social conflicts in rural provinces that threaten to derail billions of dollars in foreign investment in one of the world's fastest-growing economies.

The company had expected to have Santa Ana developed by 2012, producing some 5 million ounces annually for the first six years of operation. (Reporting by Patricia Velez, Writing by Terry Wade; Editing by Muralikumar Anantharaman)

 
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