The negotiation failed! Major copper mines will be shut down and downgraded by agencies. The company's share price has plummeted.

SMM survey: what kind of metal do you like most in 2022?

On the morning of December 16, Minmetals announced that its Las Bambas copper mine would stop production due to unsuccessful dialogue with the Chumbivilcas community in Peru.

Credit Suisse downgraded Minmetals resources rating and target price accordingly. Minmetals shares fell 5.35% at the close of trading on December 16, with the biggest intraday drop of more than 10%.

The market already has expectations.

The problem of Las Bambas copper mine has existed for a long time. On September 27th, Minmetals Resources announced that there was a community road block in Peru's Chumbivilcas province, which was kilometers away from Las Bambas200, which continued to hinder transportation.

On September 30, the roadblock was temporarily removed. Minmetals said that transportation has resumed since that day, and dialogue with government and community representatives will continue next week.

On December 3rd, Minmetals announced that the dialogue with the Chumbivilcas community organization was not successful. Subsequently, some institutions predicted that Minmetals Resources had little hope of ending community blocking in the future.

According to Shanghai Nonferrous Network, Victor Villa, legal adviser of Chumbivilcas province, said that the road blockade would not be lifted.

Minmetals said in an early announcement on December 16th that dialogue with the Chumbivilcas community in Peru was still unsuccessful and that a solution could not be reached to remove roadblocks. At present, the key consumables in the mine have been exhausted.

, Las Bambas will not be able to continue to produce copper due to blocked transportation in and out of the country. As of December 18 (Peru time), Las Bambas copper concentrate production this year is about 290000 tons, with mine inventory of about 60770 tons.

In fact, since Minmetals began to transport copper concentrates in early 2016, road blockages in communities have caused a total of 400 days of losses.

Minmetals said the company continued to ask for the removal of roadblocks and a transparent, open and constructive dialogue. The company is committed to working closely with the Peruvian government and community members to reach a lasting agreement.

The agency lowered its production forecast.

Las Bambas is one of the largest mines in Peru and one of the top 10 copper mines in the world. In 2014, Minmetals invested in the acquisition of Las Bambas. In 2016, Minmetals disclosed that the, Las Bambas copper mine had entered commercial production.

According to the announcement, Minmetals sold 191700 tons of copper and 108900 tons of zinc in the first half of this year. Realized operating income of $2.434 billion, net profit after tax of $584 million, net profit attributable to shareholders of $400m, compared with a net after-tax loss of $183 million in the first half of 2020.

Minmetals said the reasons for "record first-half results" in the first half of 2021 included higher commodity prices, increased production and the sale of Las Bambas inventory.

Huatai Securities reported that copper production and sales at the, Las Bambas mine were 278000 tons and 272000 tons respectively by the end of November. Cut the copper production forecast of the Las Bambas mine to 290000 tons in 2021. Las Bambas Mine is the most important single asset of Minmetals Resources, accounting for about 80 per cent of the company's EBITDA (earnings before tax, interest, depreciation and amortization).

China International Capital Corporation pointed out that the mine accounted for about 1.4% of the global copper supply in 2021, and the global copper supply may be further tightened if subsequent production does not resume smoothly.