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MMG says its copper production in second quarter 'significantly impacted' by community actions at Las Bambas

Kitco Media
By Vladimir Basov
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Updated
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(Kitco News) - China-controlled MMG, a mid-tier global producer of base metals, reported today that in Q2 2022, its total copper production was 44,514 tonnes, which is a decrease of 52% compared to Q1 2022.

According to the company’s statement, a decline in quarterly copper production was due to a community protest at its Las Bambas mine in Peru leading to an operational shut of more than 50 days.

The company said that Las Bambas resumed production on 11 June 2022 following an agreement by the 6 communities involved to cease protest activities and participate in a Government-led dialogue process, adding that this dialogue process remains underway, with the operation currently running at full capacity.

However, MMG noted it withdrew its 2022 production guidance for Las Bambas and will provide an update in the Interim Report when further updates regarding the progress of the dialogue process with communities are available.

The company also pointed out that lower copper production due to community challenges at Las Bambas was partially offset by strong production at Kinsevere which produced 12,250 tonnes of copper cathode in the second quarter, representing a 24% increase on first quarter’s production as mining activity resumed following a temporary suspension in the fourth quarter of 2020.

The company’s total zinc production of 53,488 tonnes was 8% higher than the March quarter with improved labor availability and strong processing plant performance at Dugald River.

MMG said that its full-year zinc production guidance for 2022 is maintained at between 225,000 and 255,000 tonnes.

Headquartered in Melbourne, Australia, MMG is a mid-tier, global producer of base metals including copper and zinc. The company is listed on the Hong Kong Stock Exchange (HKEx: 1208) and operates and develops copper, zinc and other base metals products across Australia, the Democratic Republic of the Congo and Peru. The major shareholder of the company is China Minmetals.

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Kitco Media

Vladimir Basov

Vladimir (PhD, MEng in Mining) is a professional mining engineer, scientist and analyst that has more than 20 years of practical in-field and research experience. He is particularly interested in collecting, processing baseline data and writing insightful data-driven mining industry analytics, articles, statistical and research reports.

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