MMG to stop operations at Las Bambas as a result of blockade

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As a result of a blockade of one of the roads used by MMG, the company has announced plans to halt production at its Las Bambas copper mine in Peru. 

A joint venture between the operator MMG (62.5%), a wholly-owned subsidiary of Guoxin International Investment (22.5%) and CITIC Metal (15.0%), Las Bambas is an open-pit copper mine with an estimated mine life of over 18 years.

According to the ASX Announcement, the leaders of a group of Peruvian communities have rejected the proposal from the government to prevent future blockades, despite the agreement reached in December to restart operations.

“Due to the restrictions to both inbound and outbound transportation, Las Bambas has been forced to progressively reduce mining operations. If the roadblock continues, production is expected to cease on approximately 20 February 2022”, reads MMG’s announcement signed by MMG Limited Interim CEO and Executive Director Li Liangang.

Adertisement

“The Company’s primary focus remains on working alongside the government of Peru and community members to deliver the 30 December agreement. MMG remains committed to ensuring the health, safety and security of employees, contractors and the community members involved and actively engaging in transparent and constructive dialogue. The company seeks the immediate removal of the illegal roadblocks.”

Located at more than 4,000 metres above sea level, between Grau and Cotabambas provinces, Apurímac region, Peru, Las Bambas produces copper concentrate with gold, silver, and molybdenum by-products.

It has reserves of 7.2 million tonnes of copper and mineral resources of 12.6 million tonnes. The company expects to produce over 2 million tonnes of copper in concentrate in the first five years of operation.

Video: Minera Las Bambas YouTube channel