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(Reuters) -Hong Kong-listed miner MMG Ltd said on Thursday it would shut production at its Las Bambas mine in Peru from Saturday, after failing to reach an agreement with the Peruvian community blocking a transport road used by the facility.
The blockade by residents of the Chumbivilcas province has been in place since Nov. 20, and the shutdown now will halt production at the Chinese-owned mine, which accounts for 2% of world copper supply. Peru is the world’s no. 2 copper producer.
The point of contention is a dirt road used by Las Bambas to transport copper to a seaport. Residents from several regions who live along the road allege the dust lifted by the trucks pollutes their crops and affects their livelihoods.
Stockpiles on the site are now about 60,770 tonnes of copper concentrate as the blockade stopped transportation to the seaport.
The company has attempted to make several peace offerings to Chumbivilcas residents including jobs and investment, but talks fell through over specific details.
“The company continues to request the immediate removal of the illegal roadblocks to facilitate transparent, open and constructive dialogue,” MMG said in a statement.
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