By Alex Emery

June 19 (Bloomberg) -- Peru's government and regional officials reached an agreement to end a protest in its 10th day over mining-tax income for local governments.

Officials from the southern region of Moquegua agreed to end roadblocks after signing an accord that covers public works in the area, Presidential Cabinet Chief Jorge del Castillo told reporters in Lima today. Protesting residents and workers were concerned that Peru's tax law, which bases mining levies on the amount of earth moved instead of minerals produced, would reduce revenue for Moquegua's government this year.

Thousands of demonstrators blocked roads and rail access to Southern Copper Corp.'s Cuajone copper mine and Ilo smelter, burned government offices and took police hostage during the protest that began June 10. Dozens of people were arrested and at least 30 were injured, Lima-based Radioprogramas said.

``We've achieved an important agreement that puts an end to this conflict,'' del Castillo said. ``Each mayor will go home with at least one project under his arm.''

Southern Copper workers today ended a 48-hour strike at Cuajone, mine union official Roman More said in a telephone interview. Protesters began clearing rocks and tree trunks from roads and bridges outside the city of Ilo, state news agency Andina reported.

Southern Copper Chief Executive Oscar Gonzalez Rocha said in a June 17 interview that the company would be forced to shut its operations today because supplies were running low.

Southern Copper rose for the first day in three, gaining 96 cents, or 0.9 percent, to $104.22 at 1:38 p.m. in New York Stock Exchange composite trading. The shares have fallen 6.9 percent since the protests began.

To contact the reporter on the story: Alex Emery in Lima at aemery1@bloomberg.net.