In April, President Ollanta Humala said Minera Yanacocha, the company developing the mine project, will have to implement a number of measures before the project can proceed.

The recommendations include increasing the capacity to ensure water supplies, establishing a fund for social programs and providing large-scale employment.

The recommendations followed the release of a report by three international consultants that reviewed Minas Conga's environmental impact study.

The review is part of the government's efforts to resolve a dispute over the development of Minas Conga.

The project has been opposed by local residents and politicians over its potential impact on water supplies. Company officials have said they are studying the recommendations.

"It is now in the hands of the company to accept them," Valdes was quoted as saying by Dow Jones Newswires.

Minas Conga was suspended in November by the company and government due to community protests. It is Peru's biggest private-sector project, requiring an investment of $4.8 billion.

Average annual output during the first five years is seen at 580,000 to 680,000 ounces of gold and 155 million to 235 million pounds of copper.

Yanacocha is 51.35% owned by Newmont Mining Corp., while Compania de Minas Buenaventura SA has a 43.65% stake in Yanacocha. The International Finance Corp. has a minority stake.

(END) INT/EEP