LONDON (dpa-AFX) - Shares of Hochschild Mining plc (HOC.L) were gaining around 21 percent in the early morning trading in London after the precious metals company Thursday said it can continue operations in southern Ayacucho, Pallancata and Inmaculada mines in Peru under the existing legal framework following clarification from Peruvian Government.
Hochschild earlier said it learnt through various media outlets about the Peruvian Government meeting's minutes, which refer to alleged environmental complaints, and 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.
It was reported that 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.
Hochschild now notes the government's commitment to upholding the rule of law and that its express recognition of the continued rights of mining companies to request extensions and modifications of existing permits for mining and exploration activities.
In line with the Government announcement, the company said Inmaculada and Pallancata mines can continue to operate without further uncertainty. With this, the company reaffirmed goal to increasing resources and extending mine lives, in accordance with current legislation.
In London, Hochschild Mining shares were trading at 147.31 pence, up 20.75 percent.
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