The mining company MMG Ltd announced this Friday that it will suspend copper production from its Las Bambas mine, located in the Apurímac region, in mid-December. The mining company makes this decision due to the blockade of roads in the Chumbivilcas community that demands commercial agreements with the mining company.
Reuters reported that MMG communicated its decision after failing to reach an agreement in a meeting held on November 30 between the government and the community, due to what the company considers “Excessive commercial demands”.
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MMG, a unit of state-owned China Minmetals Corp, has faced repeated disruptions to shipments from Las Bambas due to blockades by local community residents in recent years. In July, the company noted that production in 2021 would be at the lower end of its forecast of between 310.00 and 330,000 tonnes.
Las Bambas produces 400,000 tons of copper per year and about 2% of the world’s copper. It contributed about 69% of MMG’s revenue in 2020, according to Reuters data.
The imminent closure of Las Bambas comes as copper concentrate supply agreements are being negotiated for 2022.
Stocks at the site have risen to about 50,000 tonnes of copper in concentrate, the company said in a statement.
Former Economy Minister David Tuesta questioned the government’s decisions regarding the conflict in Las Bambas.
“Serious. Here are the consequences of populism. This Government has been seriously wrong in its decisions. Las Bambas announces the cessation of operations in Las Bambas on the Hong Kong Stock Exchange “, said the economist through Twitter.
With information from Reuters
