Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

MMG's Las Bambas mine in Peru faces shutdown as talks to end blockade fail

Stock MarketsDec 03, 2021 03:02PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A man walks past the MMG Ltd logo after a news conference in Melbourne June 18, 2009. REUTERS/Mick Tsikas

By Marcelo Rochabrun, Marco Aquino and Sameer Manekar

LIMA (Reuters) -MMG Ltd's Las Bambas copper mine in Peru will shut down copper production by mid-December because of a road blockade, it said on Friday, as executives urged the government to build a freight rail link to avoid future disruption.

"The freight rail has huge social acceptance," Carlos Castro, Las Bambas head of corporate affairs, said in an interview with Reuters.

Las Bambas is one of Peru's largest copper mines, but its operations have been disrupted by close to 400 days since it began operations in 2016, executives said.

At issue is a dirt road that Las Bambas uses to transport the copper from its mine to a sea port. Communities along the road have opposed this method of transportation, alleging environmental and social concerns. Las Bambas last faced a production shutdown threat in October https://www.reuters.com/article/peru-mining-idUSL1N2RN2VT.

Executives said in the interview that the dirt road was not sustainable into the future, that it was the government's responsibility to pave the route in the medium term and that in the long term, a separate freight train link would be the best solution.

Peru's administration under socialist Pedro Castillo has endorsed the train, but the government's cost-estimate is significant at $9.2 billion, and it would only begin operations in 2028 at the earliest.

The ministry of energy and mines said in a statement that the government had not been informed about the potential shutdown and that it hoped the company and "would continue working for the benefit of (surrounding) communities".

Las Bambas originally intended to transport its copper through an underground mineral pipeline, but that plan was cancelled when the mining project was sold to Chinese miner MMG.

Executives said a mineral pipeline no longer made sense.

"From the point of view of social profitability, it is unacceptable," Castro said. "What local families tell us is that a mineral pipeline would negatively affect the area, because all the businesses associated with (copper) transport would cease to exist."

The road is blocked by residents of the Chumbivilcas province, who are negotiating contracts for locals to be hired as drivers for the mine.

The Hong Kong-listed company said that no resolution was reached at a meeting on Nov. 30 between the Peruvian government and the community because of what the company views as "excessive commercial demands".

In July, Las Bambas flagged that production in 2021 was expected in the low end of its 310,00-330,000 tonnes forecast.

Las Bambas produces 400,000 tonnes of copper a year, or about 2% of the world's copper.

Stockpiles on the site have increased to around 50,000 tonnes of copper in concentrate.

MMG's Las Bambas mine in Peru faces shutdown as talks to end blockade fail
 

Related Articles

AstraZeneca China summoned over suspected fraud
AstraZeneca China summoned over suspected fraud By Reuters - Jan 29, 2022

BEIJING (Reuters) -Chinese authorities summoned officials of AstraZeneca (NASDAQ:AZN) China regarding an investigation of suspected medical insurance fraud by the company's...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email