Chinalco Peru business unaffected by plant closure

A subsidiary of Chinese State-owned mining giant Aluminum Corporation of China (Chinalco) said Monday that the Peruvian environmental watchdog's order of halting one of its mining projects will not affect the commissioning at its processing plant and other ancillary operations.

The Chinalco Mining Corp International said one of it subsidiaries, Minera Chinalco Perú (MCP), was notified by a department of the Peruvian Ministry of Environment on Friday of an alleged non-compliance with environmental laws relating to certain water discharges of its Toromocho copper mining project.

"As a preventive measure, such notification required MCP to stop its commissioning work at its mining operation until the matter is resolved," the company said in a statement posted on its website on Monday.

Yet the company's processing plant and other operations will not be impacted, the statement said.

Friday's order by the Peruvian government was sparked by inspections carried out from March 16 to 20 that detected contaminants in the Huacrococha and Huascacocha lakes, AFP reported Saturday.

The watchdog posted a video on its website showing a yellow-colored liquid flowing into the bodies of water, APF said.

The Chinalco Mining Corp is not aware of any facts which would result in a material impact on the Toromocho Project, which started production on December 10, 2013, the company said in the statement.

"MCP is taking all appropriate measures to restart commissioning at its mining operations as soon as possible," it added.

Peru is the world's second biggest copper producer.

According to its financial report posted on the Shanghai bourse in March, Chinalco recorded net profit of 948 million yuan ($154.87 million) in 2013, reversing heavy losses in 2012.

Total revenue last year hit 173.04 billion yuan, a surge of 16 percent year-on-year.