Las Bambas Mine will resume operations temporarily
The Las Bambas copper mine in Peru will temporarily resume production as mine owner MMG Ltd. meets with a group of indigenous Peruvian communities that had blocked production at the mine for more than 50 days.
According to meeting minutes signed on Thursday afternoon, the truce will last thirty days from June 15 and the communities and the mine will engage in talks during that time.
Reuters reported that MMG welcomed the agreement by the communities and said it expects production at the site and concentrate transport to recommence on June 11.
Peru is the world’s No. 2 copper producer and Chinese-owned Las Bambas is one of the world’s largest producers of copper. The protest and shutdown had caused a major problem for the leftist administration of President Pedro Castillo, who is under pressure to grow the economy and had struggled for weeks to broker a restart deal.
Las Bambas alone accounts for 1 percent of Peru’s gross domestic product.
The protest was started by the communities of Fuerabamba and Huancuire in mid-April, who say Las Bambas had not honored all of its commitments with them. Both communities sold land to the company to make way for the mine, which opened in 2016 and is notorious for its recurrent social conflicts.
The two communities entered the mine and settled inside, forcing Las Bambas to halt operations. While Fuerabamba was evicted soon after that, Huancuire had managed to remain inside.
Under the agreement, Huancuire will no longer protest inside mine property. During the truce, Las Bambas will also halt construction of its new Chalcobamba open pit mine, set to be located in land formerly owned by Huancuire.
At the meeting, community leaders also demanded jobs for community members and for the reshuffling of top mine executives, who they blame for causing social conflicts.
Las Bambas has agreed to an "evaluation and restructuring of the executives" who participate in negotiations with the local communities.