Residents shoot down Tambo Grande plan

Residents shoot down Tambo Grande planResidents of Tambogrande, a small agricultural centre about 865 km northwest of Lima, Peru, have voted overwhelmingly on Sunday to reject a US$270-million gold and base metal mine planned by Vancouver-based junior Manhattan Minerals (MAN-T), according to Reuters.

Nearly 98.7% of the voters to turn out for the non-binding local referendum voted against plans for an open pit mine that would target mineral resources along the valley on Peru’s arid desert coast. About 27% of the 36,000 eligible voters failed to turn out.

If built, the mine could displace more than half the town’s population of around 16,000. The residents are also worried that the development could pollute the valley’s river, which provides irrigation for more than US$100 million worth of fruit crops (mainly mangoes and limes) produced annually.

The project is no stranger to controversy. Last year, a politically motivated group vandalized the project. Manhattan attributed the incident to a group intent on disrupting government and industrial activities in the run-up to a national election. The disruption forced Manhattan to delay its feasibility study on the TG-1 oxide gold deposit, originally expected by June 2001. The feasibility and environmental impact studies are now expected by the middle of 2002.

Manhattan is earning a 75% stake in Tambo Grande, which consists of 10 concessions measuring 100 sq. km. The company has until May 2003 to decide whether or not to go ahead with its plan for an open pit mine.

According to Reuters, Roberto Obradovich, head of Manhattan’s local unit told a Peruvian radio station, “The vote was full of flaws. It seems suspicious that 93 or 94% voted no but that 10,000 people didn’t turn up. We have to assume that means that those absent at least want to hear more about the project.”

Obradovich also complained that residents didn’t have the facts to make a real decision as the vote was held before the release of the environmental impact study.

Manhattan shares were off 42 or nearly 24% at $1.36 in late afternoon trade on the Toronto Stock Exchange on Monday.