MMG says road block protest to cut output at Las Bambas copper mine, Peru (updated)

Metallic Minerals

22/12/2020 15:29

(Adds context, detail from statement)
    By Marco Aquino
    LIMA, Dec 22 (Reuters) - Las Bambas copper mine in Peru,
controlled by China's MMG  MMG.V , said on Tuesday it will
progressively reduce production because of a protest by local
residents that has blocked a road for the last two weeks.
    Since Dec. 12. members of the local community have been
preventing mining trucks from using a road in Velille district,
Cusco region, 200 kilometers from the mine, MMG said in a
statement.
    Communities living around the mine have long complained
about the lack of local benefits from its presence and
periodically blocked roads in protest.
    The mine said blockades of public roads have disrupted its
operations on 95 days of the last year. 
    "We call on the national authorities to enforce the rule of
law and guarantee the development of our operations," it said in
a statement.
    Las Bambas produces about 400,000 tonnes of copper a year,
approximately 2% of the global total.
    In a separate statement, the company said it had reached an
agreement in September with the municipality of Velille to
finance sustainable development projects for up to 1.25 million
soles ($348,000) over two years, as well as making spot payments
to families impacted by the effects of COVID-19.
    "Unfortunately, the people carrying out the blockade reject
any possibility of dialogue, hampering the economic reactivation
process this country needs," the statement said.
    Mining is considered the engine of the Peruvian economy,
representing 60% of its exports. It is the world's
second-largest copper producer after Chile. 
    Representatives from the protesting district did not
immediately respond to a request for comment.

 (Reporting by Marco Aquino, writing by Aislinn Laing, Editing
by Chizu Nomiyama and Barbara Lewis)
 ((Aislinn.Laing@thomsonreuters.com; +56 223704250;))