The company Minerals and Metals Group (MMG) announced that the Las Bambas mining company will not be able to continue copper production, as of this Wednesday, April 20, due to the the occupation of its land by some 200 community members of Fuerabamba, in the Challhuahuacho district ( Apurímac), who are demanding the alleged non-compliance with their social investment commitments.
“Due to safety concerns, Minera Las Bambas will not be able to continue producing copper from April 20, 2022, ″ the company said in a statement.
This Wednesday, the former Minister of Economy, Pedro Francke, considered that the paralysis of the Las Bambas mining companies because of the conflicts in the community is a matter of concern, since it is the largest mine in Peru.
“The effect (of the standstill) will depend on how long it lasts. If Las Bambas closes for a day or two it is quite negative, but it is not very serious. But what we cannot allow is for this to last for weeks,” he warned.
It should be noted that Las Bambas represents 2% of the world's copper supply and about 15% of Peru's copper production.
LAS BAMBAS LOSSES
The shutdown of the country's largest mine would amount to $9.5 million a day, according to Pablo de la Flor, executive director of the National Society of Mining, Oil and Energy (SNMPE), when there was a similar halt in December 2021.
In addition, this mine employs more than 8,000 workers and suppliers. Of these, 28% come from the Apurimac region and 21% from Cusco.
A study by Macroconsult indicates that Las Bambas is the third largest producer of copper in terms of production capacity. It represents 1% of the country's GDP, 78% of Apurimac's GDP and 9% of Peru's mining GDP. In fact, more than 92% of the transfers for mining concepts to the Apurimac region correspond to Las Bambas.
The royalties and mining fee of Las Bambas go to the Regional Government of Apurimac, the 84 municipalities of the region, and the two public universities operating in Abancay and Andahuaylas.
COMMUNITY REQUESTS
The president of the Fuerabamba community, Edison Vargas, argued on Tuesday that they took possession of the Takiruta pasture sector, within the mining area, because the land where they were relocated by Las Bambas would not have legal physical sanitation.
For this reason, they are threatening to start building their homes on the grounds of MMG Las Bambas, which used to belong to them. For now, they are located in tents, 200 meters from the mining sites.
It should be noted that the community sold its land to Las Bambas in 2014 and that, according to its leaders, 171 commitments were made, of which 126 would still be pending.
“Those grounds have problems. The communities of Chila and Choaquere have practically evicted us and we have now taken possession of the old Fuerabamba,” Edison Vargas told the newspaper La República.
In addition, he assured that they are not anti-miners since thanks to them there is Las Bambas. “We have given everything for mining and we regret that we left our lands,” he added.
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