Newmont Mining Withdraws from Cerro Quilish, Peru

Posted: 5 November 2004

Newmont Mining Corporation acknowledges misjudgments in its relationship with Peruvian communities

Lima, Peru—Oxfam America applauded Newmont Mining Corporation's announcement that it has asked the Peruvian government to revoke the company's permit to explore on Cerro Quilish, ending its plans to expand the Yanacocha gold mine near the northern city of Cajamarca, Peru.

During September, thousands of local residents protested the proposed expansion of Yanacocha due to concerns that expanding onto Cerro Quilish would lead to water pollution and depletion. The situation was extremely tense, with local residents taking control of Cerro Quilish and roads leading to the mine. Demonstrations of 10,000 people or more took place in Cajamarca's town square.

A statement issued by the Yanacocha Board of Directors said, "We recognize that we were not always able to understand the magnitude of these changes and did not always listen to the valid claims and concerns expressed over these years by the Cajamarca community."

The decision was welcomed by local organizations, including some supported by Oxfam, that had opposed the expansion.

"This is a step in the right direction for Newmont," said Keith Slack, senior policy advisor for Oxfam America. "Their decision confirms that mining activity should not happen until trust with local communities has been established and community consent obtained. Newmont should apply their learning from this situation to all their operations, including those in Indonesia, the United States, and Romania."

Oxfam America supports communities affected by mining around the world and promotes constructive dialogue about mining issues in Peru and other countries. Martin Scurrah, regional director of the Oxfam America South America program stated, "Oxfam is not opposed to mining investment in Peru or any other country. We do support reform of the global mining industry so that it demonstrates greater respect for the human rights of communities affected by mining operations."