3,000 Workers of Las Bambas Were Laid Off due to Shutdown of the Mine, Tcs of Imported Copper Concentrate Soared 166% in more than A Year

SHANGHAI, Jun 6 (SMM) - About 3,000 workers in Peru were fired and workers took to the streets to protest after MMG's Las Bambas copper mine was suspended for more than 40 days, a Peruvian mining labour union said on Thursday. It was the second protest by the union since the mine was shut down. Las Bambas, one of the world's largest copper mines, was forced to cease operations in April due to protests by indigenous communities near the Peruvian Andes. Union president Erick Ramos said the 3,000 workers were all contractors serving Las Bambas. It added that "hundreds" of direct mine employees were also fired. According to company disclosures, MMG employs approximately 2,700 people directly in Peru and another 6,000 through third-party companies. The government of leftist President Pedro Castillo has repeatedly tried to reach a ceasefire between protesting indigenous groups, who are demanding better redistribution of mining profits by the community, and the mine's management, but has failed to bring about the mine's reopening.  According to SMM data, the TCs of imported copper concentrate had risen from $29.57/mt on April 9 to $78.66/mt on June 2 this year, an increase of 166%.

The Las bambas copper mine in Peru has suspended production for more than a month. There has been no substantial progress in the consultation between the mine and the community. Even direct clashes broke out between the Peruvian police and community residents, and some community residents were injured. Peruvian authorities extend state of emergency in Challhuahuacho and Coyllurqui regions for another 2 months; Teck Resource will accelerate Chile’s Quebrada Blanca II expansion project and expects to double Quebrada Blanca copper production by the end of 2022. On the whole, there are still differences of opinion in the market. CNMC Daye Yangxin Hongsheng's new 400,000 mt/year project was originally planned to be commissioned on June 12. However, due to the pandemic in east China, some equipment failed to arrive, and the commissioning plan was delayed as a result, which has strengthened buyers’ confidence. Buyers demanded TCs of $80/mt for copper concentrate slated to arrive at ports in September, while sellers insisted on around $75/mt. Antofagasta held its first round of talks with Chinese and Japanese buyers over long-order orders in the second half of the year, but there was no substantial progress. The price coefficient of domestic spot Cu 20% copper concentrates remained at 89-91% on a delivery-to-factory basis as of early June.