Peru's military command says a bomb has killed 12 soldiers and seven civilians in the country's southeastern mountains, and that the Shining Path is likely responsible.

If proven, this would be the biggest loss of life caused by the Peruvian subversives in years.

The military says the soldiers were ambushed on Thursday evening as they returned by truck to a base in Cochabamba Grande in Huancavelica province.

Peru's conflict has been largely dormant for more than a decade. However, the military in recent weeks moved to try to dislodge an estimated 300 Shining Path rebels who work in the cocaine the cocaine trade in the region.