Peruvian residents living near the Las Bambas copper mine in MMG Ltd agreed on Wednesday to lift the road blockade affecting the company's metal transport after a public meeting with Prime Minister Mirtha Vasquez.

Vasquez said at the meeting that, Las Bambas will begin to transfer tax funds to the area where the mine is located in January, which is the main demand of residents, saying that local mineral wealth has not been translated into better living conditions.

"as a sign of sincerity, we ask you to clear the road," Vasquez said at a meeting with residents of Cotabambas province. "

Las Bambas has not paid taxes because, under Peruvian law, these funds are due only after the company has recovered its initial investment. Las Bambas began operating in 2016 with an initial investment of $10 billion.

MMG did not immediately respond to a request for comment on whether or when shipments resumed.

Las Bambas is Peru's fourth-largest copper mine, accounting for about 2 per cent of global supply.

Vasquez, a lawyer, has defended rural communities that clashed with mining companies in the past, including a long dispute between Cotabambas province and Las Bambas.

"We know very well that all your demands are legal, and we should try to solve them," he said. "