Port blockade leaves Peru miners with US$390mn in losses
Mining exports from southern Peru have been halted for some three weeks by protests by groups opposed to the Tía María copper project, who have have blocked a mineral port, forcing the government to send soldiers to regain control, said mining and energy association SNMPE.
The trade group said in a statement that four companies operating in the so-called mining corridor of Cusco, Apurímac and Arequipa regions have lost US$390mn due to the blockade of roads and railways to the port of Matarani, which is operated by Terminal Internacional del Sur (Tisur).
"We've seen more than 20 days of continuous blockades of roads, railways and the port of Matarani that are affecting not only mineral exports, but also the development of other productive activities in Arequipa," SNMPE president Manuel Fumagalli said in the statement.
"Unfortunately, due to the intransigent and violent positions of radical groups, it has still not been possible to restore public order, despite the efforts made by law enforcement officers."
However, economy minister Carlos Oliva said the army was been deployed in the port to clear the rail line.
"We have had some problems with exports ... but the armed forces are inside the port to facilitate exports," the official told foreign correspondents.
FOUR COPPER MINES AFFECTED
An executive from the Las Bambas mine, controlled by China Minmetals, told BNamericas that protesters have blocked access to Matarani port since July 18, also affecting the Cerro Verde, Antapaccay and Constancia copper mines of Freeport, Glencore and Hudbay, respectively.
Meanwhile, an SNMPE representative told BNamericas that the four companies have stopped exporting about 49,600t of copper.
Residents of Islay province, in Arequipa region, have protested since mid-July against Tía María, a Southern Copper project that contemplates investment of US$1.4bn, after the government gave it a construction permit.
According to Oliva, although mining companies have not been able to ship their minerals, they have continued to produce and accumulate stocks.
"It's a conflict that could indeed have a greater impact, but we're making a big effort to reach a consensus with the population," he added.
The Las Bambas official said production continues at the mine, but the blockade is causing problems for the supply of inputs.
President Martín Vizcarra's government has deployed the national police and the armed forces to control protests in Arequipa region, where on Monday an indefinite strike began against the controversial copper project.
Peru is the second largest copper producer in the world and mining accounts for 60% of exports.
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