According to Mining News Pro - The Canadian miner, which discovered Pampacancha in 2011, said that while the community of Chilloroya had formally approved a surface rights agreement, additional consultation between the government and local community was required before it can move forward.

Hudbay’s president and chief executive officer, Peter Kukielski, said the satellite pit adds high-grade copper and gold ore into the Constancia mine plan, lowering future cash costs and increasing cash flows at the operation.

Constancia, located in Peru’s southern highlands, is slated to produce this year between 100,000 and 125,000 tonnes of copper, around 45,000 to 55,000 ounces of precious metals, and 1,100-1,200 tonnes of molybdenum.

Other companies operating in the area, including Glencore and China Minmetals have faced delays due to local opposition to mining.