Opponents, however, vow to continue to oppose the development, which is considered key to showing that Peru--one of the world's top producers of base and precious metals--can provide an adequate investment environment for large-scale mining projects.
Production at Minas Conga is slated at an average annual output of 580,000 to 680,000 ounces of gold and 155 million to 235 million pounds of copper during its first five years.
Late Friday, Minera Yanacocha, which is run by Newmont Mining Corp. (NEM), said it will restart the project, first by building reservoirs to provide more water before actually building the mine.
Environment Minister Manuel Pulgar-Vidal said Monday the reservoirs will be constructed in 18 to 24 months.
On Monday, a Newmont spokesman said that: "The tentative plan would be to start construction on the first reservoir sometime in the third quarter of this year."
Opponents have led protests--often violent ones--against the project, saying it will hurt water supplies since the mining company initially said it wanted to drain four high-mountain lakes. The government and the company called a temporary halt to work late last year following the protests.
On Saturday, Mr. Humala gave an address to the nation in which he said the government will make sure the company lives up to its promise to increase water supplies in the heavily agricultural area around Cajamarca in northern Peru. The government also has set up a high-level commission to report back within a month on proposals to improve environmental standards.
"There are people who are ideologically driven and who don't want any change. But we have to keep advancing in Peru," Mr. Humala said in a speech Sunday in which he criticized opponents of mining.
The central government's promises have failed to calm opponents, who have led protests in Cajamarca for the last few weeks.
Gregorio Santos, president of the Cajamarca region and a staunch foe of the project, continues to criticize Mr. Humala, saying the government hasn't listened to the opinion of the local residents.
"They are underestimating the social movements in Cajamarca, which will continue with its resistance in order to force Newmont to leave the area and for the state to assume its role as a protector," Mr. Santos said in an interview with newspaper La Republica on Monday.
In 2010, the government approved the company's environmental impact study for the project. Following the protests, the government commissioned three international experts to write a report on how to improve the project. Minera Yanacocha said it will incorporate the improvements recommended by the experts.
Analysts say much of the opposition to the project in Cajamarca is being led by politically motivated opponents, including Peru's communist party, Patria Roja, acting through the union organizing public-sector teachers, known as Sutep.
Minas Conga is 51.35% owned by Newmont Mining, while Compania de Minas Buenaventura SA (BVN, BUENAVC1.VL) has a 43.65% stake. International Finance Corp. holds the rest.
Write to Robert Kozak at robert.kozak@dowjones.com
Copyright © 2012 Dow Jones Newswires
FACEBOOK 
TWITTER
12.67 |