MMG to Begin Expansion of Peru's Las Bambas Copper Mine

Mining Weekly reported on the 23rd (local time) that China's mining company MMG (Minmetals Resources Limited) is set to commence new copper mining at the large-scale Las Bambas project in Peru by the end of this year.

This expansion of the copper mine appears to be a measure aimed at securing the much-needed additional supply for the global market, which is facing concerns over supply shortages. Las Bambas has been operating at levels significantly below its annual production capacity of 400,000 tons for years due to intense protests from local communities. However, MMG Chief Executive Officer Troy Hey stated that the company aims to achieve an annual production of 400,000 tons by 2025.

Impact of Las Bambas Expansion on the Global Copper Market

Copper prices reached an all-time high this week amidst growing concerns that global mine supply will not keep pace with the surging demand from electric vehicle and renewable energy projects. The expansion of Las Bambas is expected to contribute to increasing copper production to mitigate these potential shortages.

Conflict Resolution through Agreements with Local Communities

In 2022, Las Bambas received government approval for the construction of the Chalcobamba mine, but construction could not begin due to opposition from local residents. However, both parties have now agreed to commence construction in a way that benefits both local workers and the company.

"We have been discussing for years that we want to update a fully comprehensive agreement before starting mining," Hey said. "Through consultations with the Huancuire indigenous community, which previously owned the land, the strategy has now changed."

Prospects for Increased Production

Hey stated, "Las Bambas produced 300,000 tons of copper last year, and assuming the new mine starts operating in the second half, we could produce up to 320,000 tons this year."

The expansion of the Las Bambas copper mine aims to provide additional supply to the constrained global copper market and achieve sustainable operations through agreements with local communities. This is expected to play a crucial role in the growth of the electric vehicle and renewable energy industries.