Copper strip The Bambas MMG increased its supply of jobs and investments to a Peruvian province blocking a highway used to transport the red metal in a bid to avoid a production shutdown next week, meeting minutes seen by Reuters show.
The dirt road from the Chinese-owned mine to a seaport has been blocked since November 20 by residents of Chumbivilcas province, who are negotiating contracts for locals to be hired as drivers for the mine.
The parties reached a tentative agreement in October, but talks stalled over the exact amount of jobs and funding Las Bambas would provide, leading to roadblocks.
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In its latest proposal, dated December 10 according to the minutes, Las Bambas offers to hire residents of Chumbivilcas to operate 14 trucks that transport copper and 12 vans and invest around 1 million soles ($ 247,000) a year in projects that benefit to 10 communities.
The meeting was held on Saturday morning between Chumbivilcas leaders and government representatives, who presented the proposal on behalf of Las Bambas. Chumbivilcas will now offer a counterproposal and called the mine for a meeting on Tuesday to discuss the new proposal, the minutes said.
The mining road used by Las Bambas is a source of tension, having been blocked for more than 400 days since the mine began operations in 2016.
Residents of various regions who live along the road, including Chumbivilcas, allege that the dust raised by the trucks contaminates their crops and affects their livelihoods.
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Representatives for Chumbivilcas and Las Bambas did not respond to requests for comment.
Las Bambas warned that it will have to suspend production next week if an agreement is not reached to unblock the highway.
Peru is the second largest copper producer in the world and Las Bambas is the fourth largest producer of red metal.
