By Marco Aquino and Adam Jourdan
LIMA, Feb 16 (Reuters) - Peru's top copper mines are
starting to see activity hit harder by protests and blockades in
the country's southern Andes, power data reviewed by Reuters
shows, with Chinese-owned Las Bambas and Glencore PLC's
Antapaccay currently worst affected.
The South American country, the world's no. 2 producer of
the red metal, has been roiled by protests since the Dec. 7
ouster of President Pedro Castillo, though mining operations had
generally remained resilient until this month.
However, a Reuters analysis of daily power use data from
COES, which represents firms in Peru's energy sector, shows that
at least two key mines are now regularly only drawing half their
normal power as key supplies needed for mining operations run
out, suggesting they are in 'care and maintenance' mode.
Those are MMG's Las Bambas, Peru's third largest
copper mine, and Glencore's Antapaccay, which have both
been hit by blockades on a key mining corridor highway. Latest
data up until Thursday showed both at half normal power usage.
Miners in Peru, however, have a long history of dealing with
community protests which have at times caused long shutdowns,
something not yet seen in the current nationwide anti-government
protests where nearly 50 people have died in clashes.
The data backs this up, suggesting that mines are at times
getting some supplies through the blockades, with Las Bambas in
recent days see-sawing between full and half power use.
A source familiar with the matter told Reuters on Thursday
that protesters had temporarily lifted blockades a day earlier
on a key section of the mining corridor in Condoroma, Cusco,
used by Las Bambas, Antapaccay and Hudbay's Constancia.
They were, however, threatening to resume the blockade on
Friday, the source added, underscoring the current uncertain
environment which has hit the arrival of supplies to mines and
transport of copper concentrate for export.
Antapaccay said on Monday that five fuel trucks had been
attacked and vandalized while on route to the mine.
Representatives from Las Bambas, Antapaccay and Constancia
were not immediately available to comment on whether they were
receiving inputs for their operations or sending their
concentrates in the two-day window with the blockades eased.
Other key mines including Peru's largest copper mine
Antamina, co-owned by Glencore, BHP Group , Teck
Resources Ltd and Mitsubishi Corp , appear to
be still drawing near normal levels of power, despite some
temporary disruptions in recent months.
An analysis of power use by six key mine operators shows
that combined electricity use levels have dropped overall since
mid-January, with the biggest slide this month.
"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 entirely," Capital
Economics said in a note this week.
"Anecdotal reports and high frequency data suggest that
ongoing civil unrest in Peru is beginning to choke off activity
at key copper mines. But, if recent history is anything to go
by, output can rebound rapidly so long as closures are brief."
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Peru Mines: 7-day average power use Peru Mines: 7-day average power use (Interactive graphic) Las Bambas: maintenance mode? (Interactive graphic) Peru: mines and power (Interactive graphic) Peru: mines and power Las Bambas: maintenance mode? Antapaccay: Protest hit Antapaccay: Protest hit (Interactive graphic) ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Marco Aquino and Adam Jourdan; editing by Diane
Craft)
Messaging: adam.jourdan.thomsonreuters.com@reuters.net))
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