"Peru\u2019s violent protests imperil 30% of its copper output"

" \r\n \r\n \r\n \r\n \r\n\r\n Peru\u2019s violent protests imperil 30% of its copper output \r\n\r\nAn upsurge in the violent protests wracking Peru is\u00a0 crimping copper output \u00a0in the world\u2019s No. 2 supplier, with about 30% of its production at risk at a time of low global stocks and high prices.\r\n\r\n One copper mine is offline after demonstrators stormed the site, another has seen shipments choked by roadblocks, while others have slowed operations as a precaution to manage scarce supplies of fuel and other inputs, according to industry group SNMPE.\r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n\u201cThe situation of protests and the escalation of violence have affected the industry,\u201d Magaly Bardales, who heads a mining sector committee at the association, said in a telephone interview. \u201cWe hope an understanding, a dialog with authorities, can be found to provide a swift solution.\u201d\r\n\r\nDemonstrators have blocked roads across Peru and clashed with security forces in more than six weeks of violent turmoil that began when President Pedro Castillo was impeached after he attempted to dissolve congress. Protesters are calling for both interim President Dina Boluarte and congress to be replaced, with more than 50 deaths and the violence showing no signs of easing.\r\n\r\nThe disruption coincides with operational setbacks and regulatory headwinds in neighboring Chile and the prospect of a mine shutdown in Panama as the government there seeks a bigger share of profit. Those supply threats have combined with optimism over Chinese demand after the lifting of covid restrictions to send copper futures to seven-month highs.\r\n\r\nWith global stockpiles of the wiring metal at historically low levels, traders are keeping close watch on events in Peru. The Andean nation accounts for about a 10th of global copper supply and is a major exporter of zinc and silver. About $160 million of production has been lost in 23 days of protests, Bardales said.\r\n\r\nTo be sure, protests are nothing new in Peru. It\u2019s emergence as a major mineral producer has exacerbated historically tense relations with poor rural communities. The mining industry says not enough of the record-high revenue it generates for the state goes to improving local infrastructure and services.\r\n\r\nBut the current wave of unrest stands out from past events.\r\n\r\n\u201cI haven\u2019t seen this level of violence, the coordinated nature of action, seeking to affect mining and energy, during the time I have been working in the sector,\u201d Bardales said.\r\n\r\nMuch of the unrest is centered in the southern region of Puno, where Minsur SA\u2019s San Rafael tin mine has been targeted. About 1,500 workers at San Rafael still can\u2019t be evacuated, she said.\r\n\r\nTensions have fanned out into other areas of the south including Espinar, Arequipa and Cusco. Glencore Plc\u2019s Antapaccay mine has halted operations after protesters entered and damaged a worker camp.\r\n\r\n The Las Bambas complex \u00a0is mining at a reduced rate due to blockade-related supply challenges, its Chinese-owned operator MMG Ltd. said, without elaborating. Bardales said Las Bambas is operating at just 20% of capacity, even as it continues to process ore on site.\r\n\r\nThe Cerro Verde mine in Arequipa isn\u2019t being directly affected by protests but it has slowed mill operations by 10-15% in the past several days in a bid to conserve supplies such as lime amid a \u201cvery complicated\u201d political situation, operator Freeport-McMoRan Inc. said this week on an earnings call.\r\n\r\nOther mines to the north, such as BHP Group-Glencore\u2019s Antamina are running normally, as are mines in the south that don\u2019t depend on the so-called mining corridor for the transport of supplies, copper and people.\r\n\r\nWhile the transport of semi-processed copper to ports has seen some disruption, the ports themselves are operating normally, Bardales said. She hadn\u2019t heard of any \u201crelevant\u201d impacts on shipments.\r\n\r\nThe mining society continues to project an increase in Peruvian copper production this year as a new mine ramps up, although much depends on how long the current spate of protests lasts.\r\n\r\nThe unrest also jeopardizes the rollout of $53.7 billion in possible investments at a time when the world needs to accelerate decarbonization and boost minerals required for electromobility, according to BTG Pactual analyst Cesar Perez-Novoa.\r\n\r\n\u201cThe combination of instability in other jurisdictions may exert upward pressure on copper prices,\u201d Perez-Novoa said.\r\n\r\n \r\n \r\n \r\n "

"Peru\u2019s violent protests imperil 30% of its copper output"

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