Peru's Las Bambas upbeat about new Chalcobamba pit

Minera Las Bambas, controlled by China's MMG, is optimistic about the new Chalcobamba copper pit in Peru's Apurímac region, reaffirming 2024 guidance at 280,000-320,000t.

Despite lower ore grades – 0.58% in 2Q24 versus 0.69% in 2Q23 – at the Las Bambas mine, mainly because of the Ferrobamba pit, processing of Chalcobamba ore has started, helping cushion the reduction. 

MMG expects further improvement for the second half, according to its latest results report.

The company owns 62.5% of Minera Las Bambas, Guoxin International Investment Corporation 22.5% and Citic Metal 15%.

Around 15.4Mt of ore was extracted in Q2, the highest figure in the last year and a half, while 13.5Mt was processed.

Las Bambas produced 70,173t copper in the second quarter, down 14% year-on-year, but higher than the 56,025t in 1Q24. 

In H1, it produced 126,198t, meaning it will have to produce at least 153,802t in the second half to reach guidance.

“As the operation progresses in the Chalcobamba pit, ore milled grades are expected to continue to improve from the third quarter onwards. Actual production is expected to be towards the higher end of this” guidance, the report said.

According to the energy and mines ministry's portfolio, Chalcobamba is a US$130 million brownfield project with 176Mt in mineral reserves. Its useful life is eight years and the pit will be 100% operational by the end of the year.

DIALOGUE  

Work at the Chalcobamba pit began earlier this year, after agreements with five companies from the area of influence were reached. MMG said production is currently ramping up with the support of six community companies, while talks on a long-term agreement with the Huancuire community and Peruvian authorities continue.

“On July 5, Las Bambas completed a number of agreements with the Huancuire community, covering education, local business and most recently local employment. This has further strengthened the relationship with the local community and commitment to mutual success. The dialogue will continue to cover other topics from the negotiation agenda,” the report said.

Regarding conflicts that threatened to delay the works at Chalcobamba, the company said that production has not been interrupted and another agreement was signed with the government in which the latter committed to extend the state of emergency in the region through August 5 to reinforce security.