Chinese miner MMG has withdrawn its 2020 copper output guidance for Las Bambas mine after the Peruvian government extended the COVID-19 lockdown on Monday.

 

Las Bambas’ copper concentrate guidance for 2020 was 350,000- 370,000mt, according to the company’s Q4 2019 results filing. The guidance was lower than 382,518mt of copper concentrate produced in the year 2019, mainly due to lower grades of concentrate. MMG was looking to develop Chalcobamba pit at the mine for higher grades of concentrate and partially offset the decline in grade at Ferrobamba.

 

The extension of lockdown in Peru has proved to be a dampener for the company. MMG has reduced levels of mining and production at Las Bambas, in adherence to the Peruvian government’s guidelines. Additionally, with the suspension of transport, movement of people and critical supplies has been significantly restricted.

 

The company’s operations in Australia and the Democratic Republic have been doing considerably better. The company has decided to maintain its 2020 guidance for its Dugald River, Rosebery and Kinsevere operations.

 

MMG’s zinc concentrate production from Dugald River is expected to be at 170,000-180,000mt in 2020 compared to 170,057mt produced in 2019. At Kinsevere operations, the company targets to produce 68,000 -75,000mt of copper cathodes in 2020 from 67,935mt in 2019. Zinc production guidance for Rosebery is 55,000-65,000mt, down from 83,463mt in 2019 as a result of lower grades of ore from the mine.

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