The Peruvian government has opposed the blockades to the Southern Runway caused due to protests which is affecting transport of copper concentrates and other movement to and from MMG’s Las Bambas mine.
On December 24, MMG issued a statement stating that it is deeply frustrated by the blockade. The miner has warned that due to blockade the production was likely to be cut down forcing delays in few shipments of concentrate.
Las Bambas was expected to produce between 350,000-370,000mt of copper concentrate or about 2pc the global projected production of copper in 2020.
The activists started protesting a fortnight ago in the Velille district, Cusco region, 200 km from the mine demanding review of an agreement signed in September between Las Bambas and the Velille-Chumbivilcas District. The agreement stipulates that the company must finance sustainable development projects for up to PEN1.25mn ($348,000) in the next two years and make spot payments to families impacted by the COVID-19 pandemic. The activist demands the amount to be increased to about PEN1.3mn.
News reports quoted spokesmen from Ministry of Energy and Mines that the blockages are hindering mediation efforts led by the government and appealed for restoring the public order in the region.
The committee members, including members of the Ministry, visited the spot on Dec 27, hoping to start a conversation but to no avail.
In April this year, MMG withdrew the mine’s guidance due to the pandemic and hasn’t yet released the new full-year output guidance.