Locals shoot down Tambo Grande plan

Residents of Tambogrande, a small agricultural centre 865 km northwest of Lima, Peru, have voted to reject a US$270-million gold and base metal mine proposed by Manhattan Minerals (MAN-T) of Vancouver.

According to Reuters, nearly 98.7% of the valid ballots in the non-binding local referendum were opposed to 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 would likely 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 mangos and limes) produced annually.

The project is no stranger to controversy. Last year, a politically motivated group vandalized the property. 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 mid-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 to go ahead with its plan for an open pit mine.

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 per cent 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 did not have the facts to make a real decision, as the vote was held before the release of the environmental impact study (EIS).

However, Manhattan has completed the major technical components of the feasibility study and EIS, including mine planning, process engineering, concentrate marketing analysis, tailing design, and river engineering.

Technical and socio-economic studies along the transportation route, including the port, are complete and are being incorporated into a draft document.

Information about the San Lorenzo irrigation system will be incorporated into studies of the agricultural economy.

Manhattan also reported a first-quarter loss of $275,000 (1 per share), compared with a loss of $497,000 during the corresponding period last year.

After the vote, Manhattan shares tumbled more than 85 to 92.