Peru fears mining mess could poison drinking water

[Judi Lynn]

Peru fears mining mess could poison drinking water
Wed Oct 29, 2008 7:03pm EDT

LIMA, Oct 28 (Reuters) - Peru's government said on Wednesday it fears the coming rainy season could cause an environmental mess by destabilizing tailing ponds near a river that provides drinking water to the capital, Lima.

Gold Hawk Resources (CGK.V: Quote, Profile, Research, Stock Buzz) of Canada, a tiny metals company, stopped production in May at the processing plant for its Coricancha mine as a preventative measure.

An emergency decree the government issued in July helped stop farmers from irrigating crops on the hills above the tailing site over concern the irrigation water could put pressure on the walls of the ponds, which contain toxic chemicals.

But now the rainy season is approaching.

"With the rains, there could be filtration on the hillside and cause a disaster that would affect the central highway, a mining facility, a hydroelectric plant, and the tailings would reach the Rimac River, causing a big disaster of contamination," said Environment Minister Antonio Brack

More:
http://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSN2947112520081029?rpc=401&



The tailings pond at Coricancha (highlighted in red)





Gold Hawk Mine, Coricancha, Peru