Protests in Peru began to affect activities mines
2023.02.17 02:39
Protests in Peru began to affect activities mines
By Ray Johnson
Budrigannews.com – According to power data analyzed by Reuters, the Chinese-owned Las Bambas and Glencore PLC’s Antapaccay are currently the most severely affected of Peru’s top copper mines. Protests and blockades in the country’s southern Andes are beginning to impact activity more severely.
The nation in South America that holds the no. Despite the fact that mining operations had generally remained resilient up until this month, the number two producer of the red metal has been beset by protests since President Pedro Castillo’s ouster on December 7.
However, a Reuters analysis of COES’s daily power use data, which represents companies in Peru’s energy sector, reveals that at least two key mines are now regularly drawing only half their normal power as essential supplies for mining operations run out, indicating that they are in “care and maintenance” mode.
Those are Glencore’s (GLEN.L) Antapaccay and MMG’s (1208.HK) Las Bambas, Peru’s third-largest copper mine, which have both been impacted by blockades on a crucial mining corridor highway. Both had half-normal power usage as of Thursday, according to the most recent data.
However, miners in Peru have a long history of dealing with community protests that have occasionally resulted in prolonged shutdowns. This is not the case with the nationwide anti-government protests that are currently taking place, in which nearly 50 people have been killed in clashes.
This is supported by the data, which indicates that mines are occasionally obtaining supplies through the blockades. Las Bambas recently fluctuated between full and half power use.
On Thursday, a person who is familiar with the situation said that protesters had lifted temporary blockades on a crucial section of the mining corridor in Condoroma, Cusco, that Las Bambas, Antapaccay, and Hudbay’s (HBM.TO) Constancia use.
The source added that they were threatening to resume the blockade on Friday, highlighting the uncertain situation that has hampered supply deliveries to mines and export transportation of copper concentrate.
On Monday, Antapaccay reported that five fuel trucks had been targeted and damaged on their way to the mine.
In the two-day window after the blockades were lifted, representatives from Las Bambas, Antapaccay, and Constancia were unavailable to comment on whether they were receiving inputs for their operations or sending their concentrates.
Other important mines include Antamina, Glencore, BHP Group (BHP.AX), and Teck Resources Ltd (TECKb), Peru’s largest copper mine. Despite a few brief outages in recent months, Mitsubishi Corp. (8058.T) and TO) appear to be maintaining power levels that are close to normal.
An examination of the power consumption of six important mine operators reveals that, overall, levels of combined electricity use have decreased since the middle of January, with this month’s greatest decline.
In a note this week, Capital Economics stated, “The longer that the supply of raw materials remains hostage to the protests, the higher the risk that affected mines either run at limited capacity or halt production completely.”
“The ongoing civil unrest in Peru is beginning to choke off activity at key copper mines, according to anecdotal reports and frequent data. However, so long as closures are brief, output can quickly rebound, if recent history is any indication.”
