How to Become Peru’s Largest Copper Mine? Only by Mining for Progress [SMM Analysis]

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On August 13, 2025, MMG Limited released its interim performance report for 2025, projecting total copper production to reach 520,000 tonnes, a significant year-on-year increase. According to foreign media reports, its Las Bambas copper mine is expected to become Peru’s largest copper mine by 2026.

As MMG’s flagship project in Peru, Las Bambas has set a copper production target of 400,000 metal tonnes for this year, with an estimated C1 cost of $1.40–$1.60 per pound. Notably, in the first half of this year, the mine already contributed 210,000 metal tonnes of copper production, with an actual C1 cost as low as $1.05 per pound. This cost level is lower than approximately three-quarters of global copper mines, reflecting significant cost optimization and improved production efficiency. From the financial data of the first half of the year, the company’s operating cash flow and profits have substantially improved, thanks largely to the steady operation of Las Bambas, which has laid a solid foundation for achieving the annual production target.

The Kinsevere copper mine in the Democratic Republic of Congo is currently in the ramp-up phase, with a production target of over 60,000 tonnes of copper this year. Since the completion of the cathode copper project with an annual capacity of 80,000 tonnes of sulfide ore last September, production has been gradually increasing. MMG has identified this sulfide project as a key priority and is fully committed to unlocking its production capacity.

The Khoemacau copper mine in Botswana, acquired in March last year, also holds potential for increased production, with a target of approximately 50,000 tonnes this year. The company is actively advancing an expansion project to achieve a capacity of 130,000 tonnes. The feasibility study and design work are expected to be completed by the end of this year, with construction scheduled from 2025 to 2027. The project is planned to be completed by the end of 2027, with production capacity expected to be realized in 2028.

In terms of external relations, MMG has laid a solid foundation for the sustained operation of Las Bambas by deepening cooperation with local governments and establishing a community benefit-sharing mechanism, significantly enhancing its risk resilience. Since March 2023, the mine has maintained full-capacity production without any shutdown incidents. Specific measures include:

First, proactively address historical issues prior to the acquisition by actively engaging with surrounding communities, conducting multiple rounds of fruitful negotiations, and reaching agreements with key communities to minimize potential risks to production and operations.

Second, restructure the organization by placing community relations and land acquisition teams under the newly established Sustainable Development Department, strengthening decision-making authority and long-term strategic planning capabilities.

Third, implement the "Corazón de Las Bambas" community strategy, closely integrating community development with mine operations. For instance, to resolve the long-delayed development of the second processing plant, the company facilitated the establishment of a community-owned enterprise with shares held by all residents, unifying interests and benefiting every household through service contracts. Additionally, agreements were signed with five surrounding community companies, and transportation contracts were awarded to three other community companies, deeply aligning the interests of local communities with the 430-kilometer concentrate transportation route.

The company also leveraged the "Tax Credit Works" mechanism to advance infrastructure development. For example, an investment of approximately 44 million soles (less than 90 million RMB) funded the construction of the Cutuctai Bridge, fulfilling a decades-long aspiration of the community with limited resources.

In the presence of the Peruvian President and Prime Minister, the company signed a Tax Credit Works agreement worth approximately 360 million RMB with the Ministry of Education to build 14 new schools and provide teacher training in the Cotabambas Province, significantly enhancing local educational resources.

With steadfast determination and a clear strategy, MMG is steadily enhancing its global copper production capacity and continuously optimizing operational efficiency. Through the outstanding performance of core projects like Las Bambas, the steady ramp-up of new mines, and the solid advancement of expansion plans, the company has not only achieved breakthroughs in both production and cost but has also deeply integrated into local community development in an innovative and responsible manner, building a new sustainable mining model that is enduring and mutually beneficial. These accomplishments paint a future blueprint filled with confidence and growth momentum, marking MMG’s steady progress toward a more influential leadership position in the global copper industry