Hochschild shares fall again despite ‘productive’ Peru mining talks
LIMA (Reuters) – Shares of Hochschild Mining were down around 8% on Tuesday, after collapsing 27% a day earlier after Peru’s government indicated that it would not approve operational extensions for its flagship Inmaculada silver mine.
The slide continued despite a crunch meeting late on Monday between the government and the powerful National Society of Mining, Energy and Oil, which both sides said had been “very productive.”
Peru’s prime minister, Mirtha Vasquez, sparked anger in the sector and triggered the Hochschild sell-off when she said on Friday that several mines would not be granted further operational extensions due to environmental concerns.
Leftist President Pedro Castillo is looking to shake up the Andean nation’s huge mining sector after pledging to redistribute mineral profits more evenly and empower local indigenous groups and farming communities.
His government has tried to strike a balance between community demands and encouraging mining operations, key for growth in the world’s No. 2 producer of copper and silver.
Hochschild’s shares had plummeted as much as 57% on Monday, before recouping some losses, but it was still the worst trading day ever for the London-listed miner’s shares.
Amid uncertainty in the sector, Peru’s vice minister of mines has also appeared to leave room open for a reprieve, saying that the “door is not closed” and that mining firms could present their cases for extension.
Hochschild: Trouble in Peru https://tmsnrt.rs/30NKxwD
Hochschild: Trouble in Peru (Interactive graphic) https://tmsnrt.rs/30S4VfX
(Reporting by Marco Aquino and Marcelo Rochabrun; Writing by Adam Jourdan; Editing by Paul Simao)