Operations at Southern Copper's Cuajone mine in Peru have been suspended for 15 days as locals continue to block the company's access to reservoirs and other critical supplies, the country's mining and energy industry body revealed.
De blokkade begon op 28 februari, toen Southern Copper besloot een 50-jaar oude waterleiding te vervangen die de nabijgelegen gemeenschappen van water voorzag.
Volgens Raul Jacob, chief executive van Southern Copper en huidige president van de Peruvian Association of Mines, Petroleum and Energy (SNMPE), wordt de concessie aan de mijn vervangen.
Jacob vertelde de lokale media dat hij documenten heeft waaruit blijkt dat de verhuizing is doorgegeven aan gemeenschapsleiders en regionale en nationale autoriteiten.
"We were taken aback by the blockade," Jacob said.
Werknemers van de Cuajone-mijn, waar meer dan 5000 mensen werkzaam zijn, hebben de regering gevraagd te bemiddelen in het conflict tussen het bedrijf en de lokale bevolking, met het argument dat hun banen en leven op het spel staan.
"The residents' refusal to restore water supply to Cuajone and release the railway has prevented us from resuming operations at the mine," Southern Copper said in an emailed statement.
SNMPE said the protesters were demanding 5bn in compensation and a 5 per cent share of the company's profits.
Pablo O'Brien, a mining expert at Velocity Trade Capital, said it was more than that, describing the situation as "very serious".
"No one can just turn off the water supply to a group of people for whatever reason. This situation unfortunately demonstrates the current inability of states to mediate in resolving conflicts, "O 'Brien said.
Peru is the world's second-largest copper producer after neighboring Chile, and mining is a major source of tax revenue. Residents of nearby communities have increasingly protested against the mines, claiming they cause pollution without contributing enough to the local economy.
Southern Copper, onderdeel van Grupo Mexico, is een van de koperbedrijven met de grootste minerale reserves, en Cuajone is de op één na grootste mijn in Peru.
The miner's copper production fell 4.3 per cent in 2021 and recently said it expected a further decline this year.
Tegen 2022 verwacht Southern Copper 922,000 ton metaal te produceren dat wordt gebruikt in de bouw en elektrische auto's.
"After this year, we believe our 2023 production will rebound to 1 million tonnes of copper," it said in its February earnings statement. By the end of the decade, as our organic growth projects mature, we expect copper production to reach 1.8 million tonnes.
China Southern ontwikkelt projecten ter waarde van 2,8 miljard in Peru. Als de ontluikende projecten van Michiquillay en Los Chancas worden meegerekend, springt het cijfer op tot bijna 8 miljard.
Protests have hit several of Peru's biggest mining companies since leftist President Pedro Castillo took office in July after winning an election with overwhelming support in the country's impoverished mining regions.
Roads used by MMG's Las Bambas copper mine to transport its metal have been intermittently blocked by residents demanding financial contributions from the company.
Last year protests also disrupted Antamina, the country's largest copper mine, which is jointly owned by BHP billiton (33.75 percent), Glencore (33.75 percent), Teck Resources (22.75 percent) and Mitsubishi (10 percent).
Mijnen van Glencore (LON: GLEN), Hudbady Minerals TSX, NYSE: HBM) en Hochschild Mining werden ook getroffen.
Social unrest in the country's mining areas has deepened global fears of a looming copper shortage.
Volgens schattingen van de CRU Group moet de koperindustrie meer dan 100 miljard uitgeven om tegen 2030 een tekort van 4,7 miljoen ton per jaar aan te pakken.
