Economy.- Shares of mining company Hochschild fall more than 30% after Peru announced the closure of two of its mines

06-10-2016 Antamina Mine, in Peru. TORSA ECONOMY


Hochschild Mining shares have suffered a fall of more than 36% in Monday’s session after the Peruvian government announced its intention to close two of its mines in the Andean country for environmental reasons.

The titles of the miner in London have left 36.05% of their value throughout the day, to place the value at 105.27 pounds sterling (125.5 euros).

Peru’s Prime Minister Mirtha Vásquez announced last weekend that the government would not grant further extensions to the operating contracts of four mines in the Ayacucho region, two of which – Pallancata and Inmaculada – belong to Hochschild.

In its response on Monday, the mining company has indicated that it will “vigorously defend its position” and has ensured that its mines operate under “the highest environmental standards.”

“Hochschild will vigorously defend its position and will take all necessary actions to ensure that the rights of the company and its subsidiaries are respected under Peruvian and international law,” stressed the company, which currently employs more than 5,000 people in the country. Andean.

The South American country is the second largest copper producer in the world and a significant source of gold and silver, among other raw materials. Companies such as Anglo American, Newmont, Glencore and Freeport-McMoRal also maintain operating mines in the country, as well as Chinese firms – MMG and Chinalco – and local producers such as Buenaventura.

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