PERU
DESPITE A LEFT WING EL PRESIDENTE
MMG expects to invest $2 billion in troubled Las Bambas copper mine in PeruOR IN THIS CASE BECAUSE OF HIM
Reuters | September 27, 2022 |
(Reference image by the Peruvian Ministry of Energy and Mines, Twitter).
Chinese miner MMG Ltd expects to invest $2 billion in the next five years to expand its troubled Las Bambas copper mine in Peru and is eyeing potential acquisitions to further increase production, an executive said on Tuesday.
Las Bambas General Manager Edgardo Orderique said at the Perumin mining conference that the company is hoping to double copper production by 2025 and double it again by 2030.
The mine is expected to produce 240,000 tonnes of copper in 2022, after years of production drops due to falling ore grades and social conflicts.
Peru is the world’s No. 2 copper producer and Las Bambas is one of the largest producers of the red metal in the world.
Las Bambas opened in 2016 in the Peruvian Andes, but has suffered recurrent disruptions from indigenous communities who say its vast mineral wealth has not translated into better living conditions.
Those disruptions reached a new peak this year when members of two neighboring communities settled inside Las Bambas, forcing the company to suspend all operations for over 50 days.
“The cost of the conflict since 2016 to date is of about 528 days of interrupted operations, almost a year and a half that we have gone through this situation,” Orderique said.
Most of the disruptions affected copper trucking, rather than copper mining.
Las Bambas is currently trying to build a second pit but work has been halted due to opposition from the indigenous Huancuire community, which used to own the land where the project is slated to be built.
Orderique said he hoped that the pit can be built in the “following months” to compensate for falling ore grades at its current pit.
MMG has previously said it will not go forward with the project until it can reach an enduring agreement with the Huancuire community.
(By Marcelo Rochabrun and Marco Aquino; Editing by Richard Pullin and Josie Kao)
(Reference image by the Peruvian Ministry of Energy and Mines, Twitter).
Chinese miner MMG Ltd expects to invest $2 billion in the next five years to expand its troubled Las Bambas copper mine in Peru and is eyeing potential acquisitions to further increase production, an executive said on Tuesday.
Las Bambas General Manager Edgardo Orderique said at the Perumin mining conference that the company is hoping to double copper production by 2025 and double it again by 2030.
The mine is expected to produce 240,000 tonnes of copper in 2022, after years of production drops due to falling ore grades and social conflicts.
Peru is the world’s No. 2 copper producer and Las Bambas is one of the largest producers of the red metal in the world.
Las Bambas opened in 2016 in the Peruvian Andes, but has suffered recurrent disruptions from indigenous communities who say its vast mineral wealth has not translated into better living conditions.
Those disruptions reached a new peak this year when members of two neighboring communities settled inside Las Bambas, forcing the company to suspend all operations for over 50 days.
“The cost of the conflict since 2016 to date is of about 528 days of interrupted operations, almost a year and a half that we have gone through this situation,” Orderique said.
Most of the disruptions affected copper trucking, rather than copper mining.
Las Bambas is currently trying to build a second pit but work has been halted due to opposition from the indigenous Huancuire community, which used to own the land where the project is slated to be built.
Orderique said he hoped that the pit can be built in the “following months” to compensate for falling ore grades at its current pit.
MMG has previously said it will not go forward with the project until it can reach an enduring agreement with the Huancuire community.
(By Marcelo Rochabrun and Marco Aquino; Editing by Richard Pullin and Josie Kao)
BHP wants to expand presence in Peru, says executive
Reuters | September 27, 2022
The Antamina mine in Peru is one of the largest copper-zinc mines in the world. (Image courtesy of Antamina)
Global miner BHP wants to expand its presence in Peru through exploration of new projects, Rag Udd, who heads the company in the Americas, said on Tuesday at the Perumin mining conference.
Peru is the world’s No. 2 copper producer and BHP is a part-owner of one of its largest copper mines, Antamina.
Udd added that BHP will invest $12 million on exploration in the next 10 months and that it is evaluating six potential projects.
Despite falling prices in recent months, Udd said he remains optimistic about future demand for copper amid an energy transition away from fossil fuels.
“Peru has all the potential to grasp that opportunity and unleash a new positive cycle,” Udd said, adding the country has maintained “stable” macroeconomic fundamentals in recent years.
BHP is also the operator of the world’s largest copper mine, Escondida in Chile.
(By Marcelo Rochabrun and Marco Aquino; Editing by Jonathan Oatis)
The Antamina mine in Peru is one of the largest copper-zinc mines in the world. (Image courtesy of Antamina)
Global miner BHP wants to expand its presence in Peru through exploration of new projects, Rag Udd, who heads the company in the Americas, said on Tuesday at the Perumin mining conference.
Peru is the world’s No. 2 copper producer and BHP is a part-owner of one of its largest copper mines, Antamina.
Udd added that BHP will invest $12 million on exploration in the next 10 months and that it is evaluating six potential projects.
Despite falling prices in recent months, Udd said he remains optimistic about future demand for copper amid an energy transition away from fossil fuels.
“Peru has all the potential to grasp that opportunity and unleash a new positive cycle,” Udd said, adding the country has maintained “stable” macroeconomic fundamentals in recent years.
BHP is also the operator of the world’s largest copper mine, Escondida in Chile.
(By Marcelo Rochabrun and Marco Aquino; Editing by Jonathan Oatis)
Sierra Metals halts 2022 production and finance guidance on Peru mine blockade
Cecilia Jamasmie | September 23, 2022 |
Yauricocha copper mine. (Image courtesy of Sierra Metals | Twitter.)
Sierra Metals Inc. (TSX: SMT) (NYSE AMERICAN: SMTS) (BVL: SMT) said a group of residents from the Peruvian town of Alis are blocking the access to its flagship Yauricocha copper mine, where production has been suspended for over a week.
The Canadian miner did not specify why community members are blocking access to the mine, but some speculate it could be tied to the death of three miners at the operation due to a mudslide on Sept. 12.
Mine production remains halted with activities limited to critical operations to ensure proper safety and maintenance, Sierra Metals said.
The Toronto-based miner noted that due to uncertainty around how long it will take to solve the dispute and the potential delay in the progressive restart of production at Yauricocha, 2022 production and financial guidance have also been suspended.
Company representatives have taken part in conversations with members of the group and are also studying requests organized by the Peruvian government.
Sierra Metals said it remained committed to the social development of its host communities, adding that it was working towards “a peaceful and expeditious resolution” of the situation.
“As a road blockade is a matter of public concern, the company has involved the local authorities for their mediation and assistance in resolving this matter,” it said in the statement.
Yauricocha is an underground mine located in western central Peru in the Yauyos province at an average altitude of 4,600 meters.
Last produced 31.8 million pounds of copper and 79.3 million pounds of zinc.
Conflicts on the rise
Mining conflicts are on the rise in Peru, the world’s No. 2 copper producer and an important producer of zinc, as empowered local communities are upping demands under the administration of leftist President Pedro Castillo, in power since July 2021.
Earlier this year, a wave of protests hit the country’s major operations, including Glencore’s (LON: GLEN) Antapaccay, the country’s sixth largest copper mine. Other operations affected were Southern Copper Corp’s Cuajone mine and MMG’s giant Las Bambas mine, which is the nation’s fourth-largest copper mine and the world’s ninth-largest.
Copper is a hot commodity due to its role in the world’s decarbonization, with experts predicting that demand for the orange metal relating to energy transition activities — clean power and electrified transport, and the infrastructure supporting them — will grow about 4% per year between now and 2040.
Traditional copper consumers, such as construction and manufacturing of heating and cooling equipment will increase their need for copper only 1.5% per year over the same period.
Goldman Sachs expects global demand for copper will begin to outstrip supplies by 2025, pushing prices to twice their current level.
Cecilia Jamasmie | September 23, 2022 |
Yauricocha copper mine. (Image courtesy of Sierra Metals | Twitter.)
Sierra Metals Inc. (TSX: SMT) (NYSE AMERICAN: SMTS) (BVL: SMT) said a group of residents from the Peruvian town of Alis are blocking the access to its flagship Yauricocha copper mine, where production has been suspended for over a week.
The Canadian miner did not specify why community members are blocking access to the mine, but some speculate it could be tied to the death of three miners at the operation due to a mudslide on Sept. 12.
Mine production remains halted with activities limited to critical operations to ensure proper safety and maintenance, Sierra Metals said.
The Toronto-based miner noted that due to uncertainty around how long it will take to solve the dispute and the potential delay in the progressive restart of production at Yauricocha, 2022 production and financial guidance have also been suspended.
Company representatives have taken part in conversations with members of the group and are also studying requests organized by the Peruvian government.
Sierra Metals said it remained committed to the social development of its host communities, adding that it was working towards “a peaceful and expeditious resolution” of the situation.
“As a road blockade is a matter of public concern, the company has involved the local authorities for their mediation and assistance in resolving this matter,” it said in the statement.
Yauricocha is an underground mine located in western central Peru in the Yauyos province at an average altitude of 4,600 meters.
Last produced 31.8 million pounds of copper and 79.3 million pounds of zinc.
Conflicts on the rise
Mining conflicts are on the rise in Peru, the world’s No. 2 copper producer and an important producer of zinc, as empowered local communities are upping demands under the administration of leftist President Pedro Castillo, in power since July 2021.
Earlier this year, a wave of protests hit the country’s major operations, including Glencore’s (LON: GLEN) Antapaccay, the country’s sixth largest copper mine. Other operations affected were Southern Copper Corp’s Cuajone mine and MMG’s giant Las Bambas mine, which is the nation’s fourth-largest copper mine and the world’s ninth-largest.
Copper is a hot commodity due to its role in the world’s decarbonization, with experts predicting that demand for the orange metal relating to energy transition activities — clean power and electrified transport, and the infrastructure supporting them — will grow about 4% per year between now and 2040.
Traditional copper consumers, such as construction and manufacturing of heating and cooling equipment will increase their need for copper only 1.5% per year over the same period.
Goldman Sachs expects global demand for copper will begin to outstrip supplies by 2025, pushing prices to twice their current level.
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