Peru gives Newmont mining rights at the border

LIMA Oct 22 (Reuters) - Peru's government said on Thursday it granted mining rights to Newmont Mining Corp (NEM.N) in 20 lots within 30 miles (50 km) of its border with Ecuador.

Peruvian law prohibits foreign companies from acquiring mining rights near national borders, but Newmont was given the land under a "public necessity" exclusion meant to promote development in frontier areas.

The decision, signed by President Alan Garcia and Mining Minister Pedro Sanchez, was published in the state's official gazette.

Garcia and his cabinet are frequently criticized by the opposition for their business-friendly policies.

Nationalist leader Ollanta Humala, who spooked investors when he nearly won the last presidential race and plans to run again in 2011, has said that granting concessions near borders will compromise national security.

Humala has denounced the Rio Blanco copper project of Chinese miner Zijin, which is located near Peru's border with Ecuador.

Newmont's 20 lots span an area of roughly 48,856 acres (18,962 hectares), according to the decree.

A Newmont official was not immediately available for comment, or say what minerals the company hoped to find there.

The U.S.-based company controls the Yanacocha gold pit, one of Latin America's largest, also in northern Peru.

Peru, a leading global exporter of metals, is the world's third largest copper producer and ranks sixth in gold. (Reporting by Dana Ford; Editing by Marguerita Choy)