There are large-scale informal copper mining activities in Peru, with the potential for expansion.

On June 3 (Tuesday), the Peruvian government acknowledged for the first time the existence of large-scale informal copper mining, and warned that high prices could lead to an increase in such activities in the near future.

Jorge Montero, the Minister of Energy and Mines, told foreign media in Lima on Tuesday that the Peruvian government remained vigilant about large-scale informal copper mining, particularly in the area where mining rights belong to the Las Bambas copper mine operated by China's MMG Ltd.

"This is the largest informal copper mining operation we have discovered so far," Montero said. "It is alarming that we already have large-scale copper mining operations in that area."

The informal mine, named Apu Chunta, is operated by the indigenous community of the Pamputa tribe. Its annual production is estimated at 30,000 mt, worth approximately $300 million at current prices. Although Pamputa owns the land, Las Bambas holds the rights to mine copper. The mining company also plans to build an open-pit mine in the area in the 2030s, for which it must purchase land from the community.

Informal mining activities and conflicts between mineral resource owners and concession holders have become a critical issue in Peru's mining industry, and the government is striving to find a balanced solution.

Peru's rich mineral deposits have attracted thousands of small-scale miners, who mainly operate on land without mining rights.

Informal operators have encroached on exploration projects operated by Southern Copper Corp. and First Quantum Minerals Ltd. The minister also mentioned that Teck Resources Ltd.'s Zafranal project had been affected. To be sure, informal copper production remains negligible compared to formal production.

(Wenhua Comprehensive)