Anglo American agrees to earlier community payout in Peru after protests

LIMA, Aug 21 (Reuters) - Anglo American PLC willspend some $30 million on community projects near its Quellavecocopper project in Peru three years earlier than planned afterprotests threatened to disrupt construction last week, a companymanager said on Wednesday.

Protesters in the southern region of Moquegua blocked a roadto the Quellaveco deposit last week to highlight concerns aboutthe $5 billion mine's environmental impacts and to push for morejobs for local residents.

Eduardo Serpa, Anglo American's sustainability manager inPeru, said the protests did not halt construction of the mine,which is now 25% built and on track to start operating in 2022.

But he said the protests led the company to double down onefforts to improve community relations.

In a deal with community leaders that ended a week ofprotests on Monday, Anglo offered to finance 100 million soles($29.6 million) in short-term local development projects forcommunities in Moquegua this year instead of in 2022.

"What we're doing is bringing forward what we've alreadycommitted to spending. We'd planned to spend 650 million soleson this in the operation stage, now we're bringing 100 millionof that forward to the construction stage," Serpa said.

"With regards to the rest, we're within the budgets set outfor the project," he added.

Serpa said Anglo has already invested $2 billion onQuellaveco, which Anglo bought in 1992. The deposit holds 7.5million tonnes of copper and is expected to give a 20% return oninvestment, according to the company's website.

Quellaveco has largely steered clear of the kind of stifflocal opposition that has derailed other mining investments inPeru, thanks in part to a deal the company signed with localcommunities and President Martin Vizcarra when he was governorof Moquegua in 2012.

But in the past year, authorities and civil society leadershave pushed Anglo to provide more jobs to local residents,accusing it of failing to fulfill its 2012 commitments, a chargethe company denies.

Last week, concerns about Quellaveco's potential impact on alocal river flared following demonstrations in the neighboringregion of Arequipa against another copper project, SouthernCopper Corp's Tia Maria mine, which farmers oppose dueto fears it will pollute their crops.

Serpa said that monthly talks with communities in Moqueguawill continue to address demands for jobs and that governmentofficials were traveling to the region to discuss the company'senvironmental plan.(Reporting By Mitra TajEditing by Marguerita Choy and Sonya Hepinstall)