Las Bambas halt adds to South America copper woes

MMG Ltd. (HKG: 1208) has suspended operations at its Las Bambas mine in Peru after an accident killed two workers, adding another disruption to South American copper supply as concentrate availability remains tight.

The accident occurred Aug. 18 during pump replacement work at a clarification pond about 9 km from the processing plant, killing two workers and injuring three others. MMG, a subsidiary of state-owned China Minmetals Corp., said.

Peru’s labour inspection authority, Sunafil, has opened its own investigation and sent inspectors to the site to determine the circumstances surrounding the accident.

MMG expects operations to restart progressively from Aug. 21 and has not announced a change to its 2026 copper production guidance. The timetable suggests the interruption could be relatively brief.

Las Bambas is one of Peru’s largest copper mines and produced 410,829 tonnes of copper in 2025, according to the country’s Ministry of Energy and Mines data. That was about 28% above its 2024 output and represented roughly 2% of global mined supply.

Supply pressure

The shutdown comes as other disruptions in South America are adding to concerns about copper availability. Lundin Mining (TSX: LUN) recently lowered its annual copper production guidance in Chile by 10,000 tonnes because of weather-related interruptions.

Las Bambas has also endured repeated disruptions since ramping up in 2015-16, largely because of protests and road blockades involving communities along the roughly 450-km route used to transport concentrate to the Port of Matarani.

Operations were disrupted for more than 100 days in 2019 as communities along the transport corridor sought action from MMG and the Peruvian government over truck emissions and the loss of farmland.

The mine shut completely for more than a month in 2022 after two communities that had previously sold land for the project re-entered the properties. One was later evicted, while Huancuire remained on the property, according to MMG.

Market impact

The latest suspension stems from a workplace accident rather than the social conflicts behind many previous stoppages, giving the disruption a different risk profile.

Its significance extends beyond the mine. Peru is the world’s third-largest copper producer, while Las Bambas accounts for a meaningful share of global mined output. Any extension of the shutdown could therefore compound supply pressure from other interruptions across the region.