In 1996, Manhattan Minerals, a Canadian mining company, bought the mineral rights below the town and had found a large copper and gold deposit, from which Manhattan Minerals sought to "extract US$1 billion worth of minerals". Upon this discovery, the Canadian mining company made a formal proposal to the Peruvian government, which would require the displacement of thousands and involve some harmful environmental risks to the town. The Peruvian government agreed to the proposal to mine the 10,000 hectares of land in Tambogrande for four years.