Chinese miner MMG to halt production at Peru’s Las Bambas copper mine amid blockades, stand-off with villagers
- Hong Kong-listed MMG says ‘production is expected to cease on around 20 February’ if the roadblock is not removed
- MMG’s shares fell by as much as 4.6 per cent to HK$2.48 on the news
Chinese mining firm MMG said production at the Las Bambas copper mine in Peru could stop in two weeks’ time, after new roadblocks set up by a local community forced the company to curtail operations.
The Hong Kong-listed company said in an exchange filing on Monday that “production is expected to cease on around 20 February” if the roadblock set up on January 28 by the Ccapacmarca community in Chumbivilcas province continues.
MMG’s shares fell by as much as 4.6 per cent on Monday, before recovering to close 0.8 per cent lower at HK$2.58.
Since its opening in 2016, the Las Bambas project has faced repeated protests as the Chumbivilcas communities – the poorest in Peru – accused the Chinese mining group of failing to provide jobs and money to the region.
In December, the protesters had blocked the roads leading to Las Bambas, forcing MMG to suspend operations for over a month. The Peruvian government reached an agreement with the protesters on December 30 to remove roadblocks and restart operations at the mine.