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Peru’s economy and finance minister has raised further doubts about Southern Copper’s long-delayed $1.4 billion Tía Maria project in the southern province of Islay, Arequipa region, saying the proposed mine is ‘socially and politically’ unfeasible.

Tía María has already gone through three or four waves of community and government repression attempts.

President Pedro Castillo has identified the Tía Maria project as a ‘non-starter’ under his administration, a view that has been echoed by other members of his cabinet, including Energy and Mines Minister Ivan Merino.

Southern Copper, a subsidiary of Grupo Mexico, has suffered several setbacks since it announced its intention to develop Tía María in 2010.

Construction plans have been halted and readjusted twice, in 2011 and 2015, due to fierce opposition from locals, who were concerned about the mine’s impact on nearby crops and water supplies.

Peru’s previous government approved Tia Maria’s licence in 2019, a decision that triggered another wave of protests in the Arequipa region.

The development of the controversial project would be a turning point in a country where mining industry relations with isolated rural communities often sour.

Despite its continued opposition to Tia Maria, the Castillo administration is working on a new approach to community relations and bureaucracy to unlock more of the country’s vast mineral wealth.

The mine is expected to produce 120,000 tonnes of copper per year for an estimated 20 years. It would employ 3,000 people during construction and provide 4,150 permanent direct and indirect jobs.

Peru is the world’s second largest copper producer after neighbouring Chile and a major supplier of silver and zinc.