LIMA, Peru - Peru's government has declared a state of emergency at a Canadian-owned mine east of Lima, fearing toxic materials there could spill into the capital city's main water source.

President Alan Garcia's government decreed a 60-day state of emergency in the mountainous district of San Mateo after soil began to loosen around a waste pit at the Coricancha mine.

It threatens to spill into the Rimac River, the capital's main source of water.

The mine is owned and operated by Canadian miner Gold Hawk Resources Inc.

In a statement late Friday, the company said the government has asked it to relocate its facilities.

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