By Valentine Hilaire

(Reuters) – Southern Copper (NYSE) Corp announced Wednesday that it remains shut down its Peruvian mine after six weeks of protests. The Corp accused Peru of not intervening to ensure security for the 1,300 Peruvian workers and their families.

According to a company statement, a recent agreement was reached to end protests at Cuajone’s mine. The company had to retract complaints about protest leaders amid the ongoing blockade on its railroad to transport supplies and minerals. Since February 28, production has been stopped.

In a separate statement, Peru’s Energy Ministry stated that an agreement had been reached with Southern Copper for talks to reach common ground with the local communities.

The government wouldn’t receive more than $3.13 billion in tax and royalties if it closed down for an entire year. This would result in the loss of 8,000 indirect and direct jobs. This is what we are trying to avoid,” said the Southern Copper statement.

Peru is currently facing protests by indigenous communities. They accuse the mining companies of not offering enough work and money for poor locals.

Adrian Armas from the central bank stated last week that protests at copper mines, such as MMG’s Las Bambas (and Southern Copper’s Cuajone), are slowing down the economy.

Peru is world number 2. The No. 2 copper producer in the world, and mining is an important source of tax revenue.

After President Pedro Castillo won the support of Peru’s poor mining areas, protests erupted at several Peru mining firms.

($1 = 3.7330 soles)