BASE METALS

MMG ready to declare force majeure in Peru

MMG has warned it will declare force majeure at its major Las Bambas copper mine this week

Staff reporter

This article is 5 years old. Images might not display.

As the company has previously reported, outbound copper concentrate transport is being interrupted by a community blockade 136km from the mine.

The blockade is related to a compensation claim for the a pre-existing easement on the Yavi Yavi farmland transferred to the Fuerabamba community as part of the 2011 Las Bambas resettlement agreement.

"Production continues at site, however, failure to resolve the situation, or any escalation, could impact on production in the near term," MMG CEO Geoffrey Gao warned earlier this month.

"Stocks at the Matarani port are exhausted and customers have been advised of delays to future shipments."

The government has stepped in to try and assist with the removal of the block, but has been unsuccessful so far.

Today, MMG said protestors were now disrupting personnel transport as well as inbound and outbound logistics.

"Production at site continues, however, following the suspension of personnel and inbound supply logistics, production is expected to be progressively impacted from later this week," the company said.

"Consequently, force majeure will be declared under sales contracts."

MMG said its primary focus remained the safety and security of its employees, contractors and the community.

Las Bambas is slated to produce 385,000-405,000 tonnes of copper this year.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

editions

ESG Mining Company Index: Benchmarking the Future of Sustainable Mining

The ESG Mining Company Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Journal Intelligence Global Leadership Report 2024: Net Zero

Gain insights into decarbonisation trends and strategies from interviews with 20+ top mining executives and experts plus an industrywide survey.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.