Mining

China Copper Miner MMG Reaches Tentative Deal in Peru Protests

 

Chinese miner MMG, battered by Peruvian activists over its operations in the South American country, has reached a tentative settlement with indigenous peoples and is seeking a resumption of trading in its Hong Kong-listed shares.

The company said in a statement on Friday that it expects to resume production and transport of copper concentrate at the Las Bambas open-pit mine from Saturday.

Operations have been halted since April, when members of the Fuerabamba and Huancuire communities entered  the Las Bambas property.

“MMG welcomes the agreement by the communities to cease protest activities and to participate in a government-led dialogue process for a planned 30-day period commencing on 15 June,” MMG said.

“The company reaffirms its commitment to work closely with the government of Peru and the communities to engage in transparent and constructive dialogue to achieve enduring and sustainable agreements,” it added.

The community of Fuerabamba in the Andean region of Peru was resettled eight years ago to make way for  the giant Chinese-owned copper mine.

The indigenous Peruvians had accused the company of breaching social investment commitments.

MMG denied the accusations, saying it had offered resettlement of the Fuerabambas, a Quechua-speaking community, in the Nueva Fuerabamba township with modern infrastructure, health and education facilities.

The miner’s Hong Kong shares closed at HK$3.35 on Thursday. The trading halt was sought on Friday morning and MMG hoped for a resumption on Friday afternoon. The stock is up more than 31% in the year to date.

 

  • George Russell

 

 

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George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.

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