A copper mine Photo: VCG

Share of Chinese copper miner MMG Ltd plunged 5.99 percent as of 1:30 pm Monday after the group flags production halt at its Las Bambas mine in Peru.

The miner said in a filing on the Hong Kong Exchanges and Clearing on Monday that its Las Bambas mine in Peru would likely have to halt production from February due to shortage of supplies caused by transport disruptions linked to protests in Peru

The company advised that following transport disruptions, affecting both inbound and outbound transport, it has been forced to commence a progressive slow-down of its Las Bambas operation due to a shortage of critical supplies, MMG said in the filing.

If the situation remains unchanged, the mine will be unable to continue copper production from 1 February 2023 with the operation entering a period of care and maintenance, MMG confirmed. 

The transport disruptions follow weeks of nationwide protests in Peru which has caused extensive unrest in the southern region affecting mining operations along the Southern Road Corridor. Las Bambas has mobilized its site security team and the property remains secure, MMG said.

Las Bambas is a large, long-life copper mine located in Cotabambas in the Apurimac region of southern Peru. In 2020 Las Bambas produced 311,020 tons of copper concentrate and 3,167 tons of molybdenum concentrate - a positive outcome in view of an extremely challenging year.