Force Majeure responsible for MMG contract issues in peru
Ongoing protests have made it impossible for the mining company to deliver.

MMG said Thursday that transportation was temporarily suspended due to roadblocks by local residents near its Las Bambas copper mine in Peru, forcing the company to declare force majeure for some supply contracts. "Based on the current Las Bambas schedule, there will be delays in some concentrate shipments due to this event," MMG, a subsidiary of the Chinese state-owned company China Minmetals Corp, said in a statement Thursday. Las Bambas produces around 400,000 tons of copper per year, which is roughly 2% of the total worldwide. Production at the site continued and was not yet affected by the blockade, which began on December 12, but due to the impact on logistics, there was a risk that production would have to be gradually cut back from this week, the mining company said. If a solution cannot be reached, Las Bambas will take the opportunity to conduct maintenance on the site, some of which has been postponed due to the effects of Covid-19, it added. On Tuesday, MMG warned against phasing out production as protests by members of the local community prevented mine vehicles from using a road in the Velille district of the Cusco region, 200 km (124 miles) from the mine. MMG, together with representatives of the office of the Peruvian Prime Minister and the Peruvian Ministry of Energy and Mining, sought a constructive dialogue with the members of the Velille district, the mining company said on Thursday.





