Peru protesters dig in heels after Newmont mine halted

LIMA, (Reuters) – Opponents of Newmont Mining’s $4.8  billion Conga project refused to end their rallies yesterday, saying Peru must permanently cancel the proposed  mine after temporarily halting work on it to avert violence.

Local political leaders want President Ollanta Humala to  stop the gold mine from being built, saying the biggest mining  investment in Peruvian history would replace a string of alpine  lakes with artificial reservoirs and cause pollution.

U.S.-based Newmont and the government late on Tuesday  suspended construction work for the time being after 30 people  were injured when police fired rubber bullets, tear gas and at  least two live rounds at protesters. The government urged both  sides to negotiate an accord but faced resistance.

“We demand that the government issue a legal decree  cancelling the project,” Wilfredo Saavedra of the Environmental  Defense Front of Cajamarca told Reuters.

“We will continue our protest. We want to see the miner  pull its machinery out of the area,” he said.

Gregorio Santos, who is the president of the region of  Cajamarca and has helped lead protests now in their seventh  straight day, said the mine must be scrapped.

The Conga impasse has become the biggest test yet for  Humala, a left-wing former military officer who reinvented  himself as a moderate to win election in June.

If the mine is eventually built, it would solidify Humala’s  reputation as a friend of big business who can ensure stability  for $50 billion of planned mining and oil projects.

But if the project is stopped it might embolden left-wing  groups who say Humala has drifted too far to the right.

“The radical left feels like it has gained ground in  Cajamarca,” lawmaker Luis Iberico said on local TV.

Local media have accused Saavedra, a lawyer who spent a  decade in prison for belonging to the left-wing Tupac Amaru  insurgency, of exploiting the issue to further a radical  agenda. Saavedra has said his past shouldn’t be used against  him.