An upsurge in the violent protests racking Peru is crimping copper output in the world’s No. 2 supplier, with about 30 percent of its production at risk at a time of low global stocks and high prices.
One copper mine is offline after demonstrators stormed the site and another has seen shipments choked by roadblocks, while others have slowed operations as a precaution to manage scarce supplies of fuel and other inputs, the National Society of Mining, Petroleum and Energy (NSMPE) industry group said.
“The situation of protests and the escalation of violence have affected the industry,” NSMPE mining sector committee head Magaly Bardales said. “We hope an understanding, a dialog with authorities, can be found to provide a swift solution.”
Photo: Reuters
Demonstrators have blocked roads across Peru and clashed with security forces in more than six weeks of violent turmoil that began when former Peruvian president Pedro Castillo was impeached after he attempted to dissolve the Peruvian Congress.
Protesters are calling for Peruvian President Dina Boluarte and Congress to be replaced, with more than 50 deaths and the violence showing no signs of easing.
The disruption coincides with operational setbacks and regulatory headwinds in neighboring Chile and the prospect of a mine shutdown in Panama, as authorities seek a bigger share of profit.
Those supply chain risks have combined with optimism over Chinese demand after it lifted its COVID-19 curbs to send copper futures to seven-month highs.
With 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 10 percent of global copper supply and is a major exporter of zinc and silver.
About US$160 million of production has been lost in 23 days of protests, Bardales said.
Protests are nothing new in Peru, and the country’s 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.
However, the current wave of unrest stands out from past events.
“I haven’t 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,” Bardales said.
Much of the unrest is centered in the southern region of Puno, where Minsur SA’s San Rafael tin mine has been targeted.
About 1,500 workers at San Rafael still cannot be evacuated, she said.
Tensions have fanned out into other areas of the south, including Espinar, Arequipa and Cusco. Glencore Plc’s Antapaccay mine has halted operations after protesters entered and damaged a worker camp.
The Las Bambas mining complex is operating at a reduced rate due to blockade-related supply challenges, said its Chinese-owned operator, MMG Ltd.
Bardales said Las Bambas is operating at just 20 percent of capacity, even as it continues to process ore on site.
The Cerro Verde mine in Arequipa is not directly affected by protests, but it has slowed mill operations by 10 to 15 percent in the past several days in a bid to conserve supplies such as lime amid a “very complicated” political situation, operator Freeport-McMoRan Inc said.
Other mines to the north, such as BHP Group-Glencore’s Antamina are running normally, as are mines in the south that do not depend on the so-called mining corridor for the transport of supplies, copper and people.
The transport of semi-processed copper to ports has seen some disruption, but the ports themselves are operating normally, Bardales said.
She said she had not heard of any “relevant” impacts on shipments.
The 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.
The unrest also jeopardizes the rollout of US$53.7 billion in possible investments at a time when the world needs to accelerate decarbonization and boost minerals required for electromobility, BTG Pactual analyst Cesar Perez-Novoa said.
“The combination of instability in other jurisdictions may exert upward pressure on copper prices,” Perez-Novoa said.
DAMAGE REPORT: Global central banks are assessing war-driven inflation risks as the law of unintended consequences careens around the world, spiking oil prices Central banks from Washington to London and from Jakarta to Taipei are about to make their first assessments of economic damage after more than two weeks of conflict between the US and Iran. Decisions this week encompassing every member of the G7 and eight of the world’s 10 most-traded currency jurisdictions are likely to confirm to investors that the specter of a new inflation shock is already worrying enough to prompt heightened caution. The US Federal Reserve is widely expected to do exactly what everyone anticipated weeks ahead of its March 17-18 policy gathering: hold rates steady. The narrative surrounding that
Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) share of the global foundry market rose to almost 70 percent last year amid booming demand for artificial intelligence (AI), market information advisory firm TrendForce Corp (集邦科技) said on Thursday. The contract chipmaker posted US$122.54 billion in revenue, up 36.1 percent from a year earlier, accounting for 69.9 percent of the global market, TrendForce said. Its share was up from 64.4 percent in 2024, it said. TSMC’s closest rival, Samsung Electronics, was a distant second, posting US$12.63 billion in sales, down 3.9 percent from a year earlier, for a 7.2 percent share of the global market. In the
At a massive shipyard in North Vancouver, Canadian workers grind metal beams for a powerful new icebreaker crucial to cementing the country’s presence in the increasingly contested arctic. Icebreakers are specialized, expensive vessels able to navigate in the frozen far north. And “this is the crown jewel,” said Eddie Schehr, vice president of production at the Seaspan shipyard. For Canadian Prime Minister Mark Carney, who heads to Norway next Friday to observe arctic defense drills involving troops from 14 NATO states, Canada’s extreme north has emerged as a strategic priority. “Canada is and forever will be an Arctic nation,” he said ahead of
Chinese entrepreneur Frank Gao used to spend long hours running his social media accounts but now outsources the chore to artificial intelligence (AI) agent tool OpenClaw, which is taking China by storm despite official warnings over cybersecurity. OpenClaw, created in November by an Austrian coder, differs from bots such as ChatGPT because it can execute real-life tasks such as sending e-mails, organizing files or even booking flight tickets. “Since January, I’ve spent hours on the lobster every day,” Gao said in an interview, referring to OpenClaw’s red crustacean mascot. “We’re family.” After downloading OpenClaw, users connect it to artificial intelligence models of their
RSS