Loading ...10.55am: Hochschild Mining plunges on Peru threat
Monday’s child is fair of face but Hochschild Mining PLC (LSE:HOC, OTCQX:HCHDF) is more like Wednesday’s child: full of woe.
The shares plunged 40% to 99.65p after various media outlets reported minutes of a meeting signed by the Peruvian Head of Cabinet, certain vice-ministers as well as regional authorities in the town of Coracora in the Ayacucho region. The minutes refer to alleged environmental complaints, and state that a commission has been constituted in order to negotiate the timetable and terms for the closure of certain mining projects in southern Ayacucho, including the company’s Pallancata and Inmaculada mines.
The Peruvian Head of Cabinet subsequently indicated that approvals will no longer be granted to facilitate additional mining or exploration activities in relation to these mining operations. The company said it has not received any formal communication from the government regarding this matter.