Violent protests hit copper mining, about 30% of the world’s second-largest copper-producing country is at risk
Mining in Peru, the world’s second-largest copper supplier, has been disrupted as violent protests in the region continue to rage, putting about 30 percent of the country’s copper production at risk amid high global copper prices and low inventories.
Political quake sparks riots in Peru
On December 7 last year, the Peruvian political scene was shaken. The then President Castillo was impeached and resigned by the Congress on the grounds of “dissolving the Congress unconstitutionally and usurping public power”. Stillo was arrested by the Peruvian judiciary on his way out of the presidential palace.
Violent protests erupted across Peru amid dissatisfaction with Castillo’s resignation and imprisonment. Demonstrators blocked roads across Peru and clashed with security forces. Violent disturbances have lasted for more than 6 weeks, and more than 50 people have been killed so far, and the riots show no signs of easing up.
Much of the unrest has been centered in the Puno region of southern Peru, but tensions have spread to other parts of the south, including Espinal, Arequipa and Cusco.
Several copper mines have been hit
Peru’s National Society of Mines, Petroleum and Energy (SNMPE) said one copper mine stopped production after demonstrators stormed the site, while transport at another mine was blocked by roadblocks and others had slowed production.
Glencore-owned Antapaccay copper mine has halted operations after protesters entered and vandalized a workers camp. Las Bambas, Peru’s third-biggest copper mine, is currently running at just 20% of capacity due to supply challenges related to the blockade.
Although Peru’s largest copper mine, Cerro Verde, was not directly affected by the protests, the mine’s operator, Freeport McMoran, said that in order to save the supply of raw materials such as lime, the company had slowed down the production speed of local factories by 10% in the past few days. %-15%.
Magaly Bardales, head of the SNMPE Mining Industry Committee, said in an interview with the media: “The protests and escalation of violence have affected the industry, and we hope to reach a settlement and dialogue with the authorities to provide a quick solution.”
While protests erupting in Peru are nothing new, the current wave of unrest is unlike past events. “I’ve never seen this level of violence, such a concerted effort to influence mining and energy, in all the time I’ve been in the industry,” Bardales said.
Copper prices face upward pressure
The world’s second-largest copper producer, Peru accounts for about 10 percent of global copper supply and is also a major exporter of zinc and silver.
With global copper inventories at an all-time low, traders are closely watching developments in Peru.
Cesar Perez-Novoa, an analyst at Brazilian investment bank BTG Pactual, warned that the unrest in Peru jeopardized $53.7 billion in potential investments at a time when the world is desperate for the key metal.
Perez-Novoa added: “Combined with instability elsewhere, this could put upward pressure on copper prices.” month high.
This article is forwarded by “Huitong Finance” authorized by the Financial Association
