The Peruvian government reported that it intends to reach an agreement with Canadian miner Bear Creek, and avoid international arbitration.
The conflict arose because the previous government of Peru canceled the rights of Bear Creek on the Santa Ana silver project following protests by the people of the southern region of Puno, who questioned its operation by fears of environmental damage.
Bear Creek Mining Corp presented the Peruvian Government in February 2014 "notice of intent" to initiate an international arbitration under the provisions of the Free Trade Agreement between Peru and Canada, signed in 2008, which guaranteed rights of investors in both countries.
The Peru 's economy minister, Luis Castilla, recently said: " There is total commitment of the Government and the company to overcome this problem exists, it is resolved as soon as possible and not get to arbitration." "There are certain mechanisms to address conflicts between the country and investors and are effective and then we are in that process."
In Santa Ana , Bear Creek plans to produce five million ounces of silver annually since 2012 . The mine has reserves of 63.2 million ounces of silver.
On the other hand, the Canadian company last year received approval of its environmental impact study to develop another project in Peru called silver Corani which is bigger than Santa Ana and is also found in Puno.
In Corani , with an investment of 574 million dollars , Bear Creek would draw about 13 million ounces of silver per year over the first five years of production.
Peru is the third largest producer of silver and has mining as an engine of growth since its metals exports represent 60 % of total exports. (data : Reuters)