Cabinet chief Pedro Cateriano said the 60-day emergency would take effect today, with troops ordered into the streets to support more than 2,000 police in the rice-growing Tambo valley.
He said yesterday night that suspended rights would include freedom of assembly, freedom of movement and protection warrant-less searches.
One protester was killed and four injured yesterday in clashes, which have escalated since farmers mounted resistance two months ago to the USD 1.4 million project owned by Southern Copper, a subsidiary of Grupo Mexico.
People in the 40,000-population valley, backed by local mayors, fear the open-pit mine will contaminate their crops.
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The mining company claims it will use desalinated water from the nearby Pacific Ocean in processing and pipe it back to the sea.
Sixty-two per cent of Peru's export revenues come from mining. It is the world's No 3 copper producer.