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HK-listed MMG to cease copper operations at Peru mine -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO – A man passes the MMG Ltd logo following a Melbourne news conference on June 18, 2009. REUTERS/Mick Tsikas

(Reuters) – Miner MMG Ltd announced Friday that it will cease production at its Las Bambas Peru mine by mid-December after failing to establish commercial relations with Peruvian Chumbivilcas community organizations.

According to the Hong Kong-listed company, no agreement was reached between Peruvian authorities and community members on November 30th due to what they consider excessive commercial demands.

MMG (a China Minmetals Corp unit) has experienced repeated delays in shipments from Las Bambas because of local blockades. The company indicated in July that it expected production to be lower than its 320,000-330,000-tonne forecast for 2021.

Las Bambas is a copper producer that produces about 2% world copper per year. In 2020, it brought in 69% or more of MMG’s Hong Kong listed revenue.

As miners and smelters negotiate copper concentrate supply agreements for 2022, the imminent shutdown of the mine is being discussed.

According to the company, stockpiles at the site now total around 50,000 tonnes copper concentrate.

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