MMG, Hudbay warn Peru production at risk amid wildcat protests

MMG and Hudbay Minerals executives met with Peru’s cabinet chief this week to warn that production at their copper mines could be affected if a two-week protest by informal miners along a major transit route continues, two sources told Reuters on Friday.

The Las Bambas mine of Chinese firm MMG and the Constancia mine of Canadian company Hudbay in the Cusco region are among Peru’s top ten copper producers.

The companies did not immediately reply to requests for comment. A person familiar with Las Bambas said the site’s production remained normal for now.

One of the sources, who attended the meeting but was not authorized to comment, said concern at Las Bambas and Constancia was mounting over the inability for copper-loaded trucks to transit freely.

The blockades along a road that is essential for connecting mines to the coast began in late June as hundreds of informal miners pressed Peru’s government to extend a deadline to regularize their operations.

“Large vehicles that supply and transport the mineral cannot pass,” the person said. “Both companies are still operating, but they mentioned that if the situation continues for much longer, it could become complicated.”

Las Bambas produced more than 320,000 metric tons of copper last year, making it the fourth-biggest miner in Peru. Constancia ranked ninth, with about 99,000 tons of copper.

Glencore’s Antapaccay copper mine, which uses the same transit route, has not yet reported production impacts.

Peru is the world’s third-largest copper producer, and it exports most of the red metal to China.

Peru’s cabinet chief, Eduardo Arana, in a statement on Thursday evening said he met with mining representatives, including from Hudbay and MMG, and emphasized the government’s commitment to fostering dialogue between companies and communities.

The statement did not provide further details about the protests, or address their potential impact on copper output.

Despite the protests, which have also taken place in the capital Lima and other areas, Peruvian officials are taking steps to end a temporary program that allowed informal mining, called REINFO, by year’s end.

Last week they removed from the program more than 50,000 mining operations that failed to properly register.

Informal miners have protested numerous times to extend REINFO. It began in 2012 as a short-term scheme to formalize miners operating outside the law, but has been criticized for enabling illegal mining that harms the environment. 

https://www.mining.com/web/mmg-hudbay-warn-peru-production-at-risk-amid-wildcat-protests/