Peruvian zinc and silver miner Volcan said Monday that operations have returned to normal at its Chungar unit after a month of protests.
The company reached an agreement with the community of Huayllay in the central Andean Pasco region, Lima-based Volcan said in a corporate filing to state securities regulator SMV. The company didn't specify how much output had been lost because of the protests.
Local inhabitants blocked roads to the underground poly-metallic mine for the past month as part of ongoing protests for greater social spending and job creation. Volcan has reduced its staff over the past year to cut costs.
"The company reiterates its permanent will for dialogue with the legitimate representatives of the communities located around its operations and respect for the compliance with assumed commitments," Volcan said.
Chungar, the second-largest of Volcan's units, produces zinc, lead, copper and silver, accounting for about 27% of the company's revenue. Volcan last year produced 280,700 mt of zinc, 57,000 mt of lead, 22.5 million oz of silver and 3,400 mt of copper.
Social conflicts are expected to increase as the campaign gets underway for Peru's general elections in April, according to the National Society of Mining, Petroleum & Energy. Peru is the world's third largest copper and zinc producer, ranked fourth in lead output and second in silver.
Volcan, which completed its Silver Oxides and Alpamarca silver projects last year at a combined investment of $420 million, part of a $1 billion expansion project, posted a $10.9 million third-quarter loss as sales dropped 32.5% to $183 million on falling metals prices.
