Minmetals group MMG (HKG: 1208) will once again have to halt operations at its Las Bambas copper mine because community protests in nearby Chumbivilcas province have affected supply logistics. The mine is one of the largest copper deposits in Peru.
The company said on Monday that the blockade of public roads along Peru's main copper transport corridor had affected shipments and sales of concentrate.
While production at the mine is continuing, the company expects the ongoing disruption to force it to halt operations sometime this week.
MMG said the protests were related to local demands for more logistics contracts and the classification of these communities as direct impact zones.
LAS BAMBAS is the ninth largest copper mine in the world, producing about 400,000 tonnes of industrial metal a year, or about 2% of global output.
The miner said locals had rejected the company's social development proposals, adding that it was seeking "active coordination" with the Peruvian government and community to reach an agreement.
The incident comes less than a month after a bus carrying Las Bambas contract workers plunged off a cliff in the Peruvian Andes, killing 16 people and injuring two others.
Road blockades have been a common problem affecting the large mine since production ramped up in 2015-16, often accompanied by the suspension of shipments.
Overall, the mine was disrupted for more than 100 days in 2019, with more than 70 communities along its 450km route. The community is demanding that the roads around Matarani Port MMG and the national government take action on truck emissions and reducing farmland.
A three-week roadblock protest in late 2020 prevented MMG from exporting 189,000 tonnes of copper concentrate, worth $530 million, from the mine.
Las Bambas is the ninth largest copper mine in the world, producing about 400,000 tonnes of industrial metal a year, or about 2% of global output.
Shares in MMG, majority-owned by China Minmetals, fell nearly 7.5 per cent on Monday, their worst day in more than a month.
Mining accounts for 60 percent of Peru's exports, mostly to The Chinese market.
