Chinese miner MMG聽(HKG: 1208)聽will have to once again halt operations聽at its Las Bambas聽copper mine, one of Peru鈥檚 largest,聽as community protests in聽the聽nearby province聽of聽Chumbivilcas聽have affected聽supply logistics.听
The blockade on public roads along Peru鈥檚 major copper聽transport聽corridor has impacted the company鈥檚 concentrate shipments and sales,聽 on Monday.听
While聽production at the mine continues, the company expects ongoing disruptions will force it to halt the operation聽sometime聽this week.听
MMG said the protests聽relate to聽locals聽demands for more logistics transport contracts, as well as classification of these communities as an area of direct influence.听
Las Bambas is the world鈥檚 ninth-largest copper mine, with an output of about 400,000 tonnes of the industrial metal per year, or about 2% of global production
The miner said locals聽had聽rejected company proposals for social development,聽adding it was pursuing聽鈥渁ctive coordination鈥澛爓ith the Peruvian government and communities to reach an agreement.听
The announcement follows the company鈥檚 announcement last week that it was planning to聽invest $2 billion聽in Las Bambas to maintain production around 400,000 tonnes per annum in the medium term.
It also comes聽less than a month聽after a bus in the Peruvian Andes transporting contract workers at聽Las Bambas聽fell聽off a cliff,聽killing 16 people and injuring two.听
Road blockades, frequently followed by聽shipment suspensions, have been聽a common issue affecting the massive copper mine聽since its 2015-16 ramp-up.听聽
Overall, the mine was disrupted for more than 100 days in 2019, with more than 70 communities along the 450 km. road to the Port of聽Matarani聽demanding action from MMG and the national government over emissions from trucks and reduction of their farmlands.听
A three-week-long roadblock protest聽staged at the end of 2020聽prevented MMG from exporting 189,000 tonnes of聽copper concentrate聽worth $530 million聽from聽the mine.听
Las Bambas is the world鈥檚 ninth-largest copper mine, with an output of about 400,000 tonnes of the industrial metal per year, or about 2% of global production.听
Shares聽in MMG, majority owned by聽China Minmetals,聽dropped聽almost 7.5%聽on Monday,聽their聽worst day in more than a month.听
Mining聽comprises 60% of exports from Peru, primarily for the Chinese market.听