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Las Bambas: MMG rules out cessation of operations, but could halt production in December

MMG Limited, majority member of the consortium that owns The Bambas, reported that copper production in the deposit could stop in mid-December due to the lack of inputs for the exploitation of the mineral, after the neighboring communities of Chumbivilcas resumed the blockade of roads. Already in September he had issued a similar warning.

Through a note on the Hong Kong Stock Exchange, the miner of Chinese and Australian capital said that, however, it does not plan to withdraw its operations from Peru, so it demanded a more fluid intervention through dialogue with the Government, given its “progressive” reduction in supplies.

“As a result of this ongoing lockdown and restriction of inbound and outbound logistics, Las Bambas has been forced to phase out operations at the mine and production will cease in mid-December due to a lack of consumables. key (inputs for mining exploitation) ”, he specified.

The note signed by Gao Xiaoyu, CEO and Executive Director of MMG Limited, maintains that the impact that this lack of supplies and the continuity of blockages in copper production could produce for December is still “very uncertain”.

“Stocks (of copper) at the site have now increased to around 50,000 tons of concentrate. The copper production until the end of November was around 278,000 tonnes with all and the delay in place. The impacts of December production remain highly uncertain, ”MMG said.

Likewise, MMG reports that around 400 days of production have been lost in Las Bambas since the blockades began in 2016. It should be noted that the demonstrations against the project had started a long time ago.

“The current blockade of the communities in the remote province of Chumbivilcas, approximately 200 kilometers from the Las Bambas operations, has led, since the beginning of 2016, to a 400-day delay in the transportation of copper concentrates,” the document states. .

Finally, the mining company settled the issue of the population’s demands and described them as “disproportionate”, in contrast to the messages issued by Las Bambas in Peru, in which they suggest that the negotiations are still ongoing.

While MMG remains committed to seeking constructive dialogue, the actions of external agents, disproportionate demands on the company and the impossibility of reaching lasting agreements continue to limit Las Bambas operations, future investment and economic contribution to the communities ”, he concludes.


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