MMG and Hudbay warn Peru copper production at risk amid informal mining protests

The blockades highlight the ongoing tensions between formal mining operations and informal miners, as Peru attempts to transition to a more regulated and environmentally responsible mining sector.

Mining giants MMG Ltd. and Hudbay Minerals have warned the Peruvian government that copper production at their operations could be disrupted if ongoing road blockades by informal miners continue, according to sources cited by Reuters.

Executives from both companies met this week with Peru’s Prime Minister Eduardo Arana to express growing concerns over protests that have paralyzed a vital transportation corridor in southern Peru. The Las Bambas mine (operated by Chinese firm MMG) and the Constancia mine (owned by Canada's Hudbay) are among the country’s top ten copper producers and rely heavily on this route to transport copper concentrate to port facilities.

“Large vehicles that supply and transport mineral cannot pass,” one source who attended the meeting said. “Both companies are still operating, but they mentioned that if the situation continues for much longer, it could become complicated.”

The road blockades began in late June, as hundreds of informal miners demanded the extension of REINFO, a temporary government program aimed at formalizing illegal mining operations. The program, launched in 2012, is set to end by the end of this year. Last week, over 50,000 mining operations were removed from the registry due to non-compliance with formalization requirements — a move that has sparked demonstrations in Cusco, Lima, and other regions.

Although MMG and Hudbay did not provide official comments, sources familiar with the situation say that while operations at Las Bambas remain normal for now, concerns are escalating as copper-loaded trucks face growing difficulty reaching the coast.

Las Bambas produced more than 320,000 metric tons of copper in 2024, ranking as Peru’s fourth-largest producer. Constancia followed with approximately 99,000 metric tons, placing ninth. Glencore’s Antapaccay mine, which also uses the same route, has not yet reported any impact on production.

As the world’s third-largest copper producer, Peru plays a crucial role in the global copper supply chain, especially for China, its largest export market.

In an official statement released Thursday night, Prime Minister Eduardo Arana confirmed the meeting with mining representatives, including executives from MMG and Hudbay, and emphasized the government’s commitment to fostering dialogue between companies and local communities. However, the statement did not address the protests directly or their potential economic impact.