Southern Copper pushes back start of Peru project

AREQUIPA, Peru Nov 20 (Reuters) - Southern Copper (SPC.LM) PCU.N said on Friday its Tia Maria copper project would likely start production by the end of 2011, roughly six months later than previously predicted.

Tia Maria, which is expected to cost nearly $1 billion, has come under criticism from nearby communities that are worried the development will put local water supplies at risk.

In August, protesters disrupted a meeting the company called to explain its project, throwing chairs and tables.

The government has asked Southern Copper to provide additional details on the development's expected impact.

"We will finish construction on the project in 2011 and the expectation is that production could start before the end of 2011," Oscar Gonzalez, head of Southern Copper, told Reuters in the southern city of Arequipa, which is hosting a business summit this week.

Once operational, Tia Maria is forecast to churn out some 120,000 tonnes of copper per year.

Southern Copper, one of the world's largest copper producers and a unit of Grupo Mexico (GMEXICOB.MX), had previously said the project was slated to start production in the second quarter of 2011.

Peru is the world's third-largest copper producer. (Reporting by Marco Aquino; Writing by Dana Ford; editing by Jim Marshall)