Peru asks Southern Copper for Tia Maria copper project details

The country wants to know what sort of impact the copper project is expected to have on the area's water supplies

LIMA (Reuters)  - 

Peru's government said on Thursday it has asked Southern Copper (SPC.LM: Quote) (PCU.N: Quote) to provide details about the expected impact of its Tia Maria copper project on area water supplies.

Tia Maria, which is forecast to produce 120,000 tonnes of copper per year, is slated to start production in the second quarter of 2011.

But the project, which the company has said requires a nearly $1 billion investment, has come under criticism from communities that are worried the development will put local water supplies, and agriculture, at risk.

Peru is the world's third-largest copper producer.

"We've spoken to the company and asked it to provide area authorities with further details, so that they know what the implications (of the project) are in terms of water," Fernando Gala, the vice minister of mines, told the state news agency.

Southern Copper, one of the world's largest copper producers, is a unit of Grupo Mexico (GMEXICOB.MX: Quote).

The company has said it plans to use water found underground and not tap the two principle rivers that run through the area.

Besides Tia Maria, Southern Copper is moving forward with an expansion at Toquepala, which is expected to lift the mine's capacity to some 100,000 tonnes of copper per year. (Reporting by Patricia Velez; Writing by Dana Ford; Editing by Christian Wiessner)

© Thomson Reuters 2009 All rights reserved

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