The shares of the mining company Hochschild they sank about 50% at stock market, this Monday, November 22, after the announcement of the head of the Presidency of the Council of Ministers (PCM), Mirtha Vásquez, on the possible arrest of operations in the Ayacucho mines, as reported Financial Times.
As you remember, the last friday 19 November, from Ayacucho, the Prime Minister Mirtha Vasquez, together with the High Level Commission of the Executive, announced the closure and negotiation of the withdrawal of four mines located in the basin headwaters, delicate ecosystems that provide water to the territories and need protection.
In that sense, Pallancata and Inmaculada silver and gold mines of the group Hochschild Mining are two of the four that would be closed. They are known to represent around more than two thirds of the annual production of these precious metals for the company.
Given the uncertainty and tension generated between the mining industry and the Peruvian State, shares of the company, which is listed at FTSE250, plummeted exactly 47% in its morning operations. However, in this year Hochschild shares fell 25% and decreased to 70 pence depending on the opening of the market; they lost over £ 300 million worth of company value.
According to Peruvian law, all mines have a planned closure date; however, these can be changed due to different circumstances if approved by specialized regulators. At present the industry of mining means 60% of export entries into the country.
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