Operations At Copper's Cuajone Mine in Southern Peru Have Been Blocked By A Blockade

Operations at Southern Copper's Cuajone mine in Peru have been suspended for 15 days as locals continue to block the company's access to reservoirs and other critical supplies, the country's mining and energy industry body revealed.

The blockade began Feb. 28, when Southern Copper Decided to replace a 50-year-old water pipe that supplied water to nearby communities.

According to Raul Jacob, chief executive of Southern Copper and current president of the Peruvian Association of Mines, Petroleum and Energy (SNMPE), the concession to the mine is being replaced.

Jacob told local media that he has documents proving the move was taken to community leaders and regional and national authorities.

"We were taken aback by the blockade," Jacob said.

Workers at the Cuajone mine, which employs more than 5,000 people, have asked the government to mediate the conflict between the company and locals, arguing that their jobs and lives are at risk.

“该居民拒绝恢复Cuajone和释放铁路的供水，阻止了我们恢复矿井的业务，”罗铜在一封电子邮件发表声明中表示。

SNMPE表示，抗议者要求赔偿50亿美元，公司的利润50％。

Pablo O'Brien, a mining expert at Velocity Trade Capital, said it was more than that, describing the situation as "very serious".

"No one can just turn off the water supply to a group of people for whatever reason. This situation unfortunately demonstrates the current inability of states to mediate in resolving conflicts, "O 'Brien said.

秘鲁是世界上邻近智利之后的第二大铜生产商，挖掘是税收收入的主要来源。附近社区的居民越来越多地抗议矿山，声称他们造成污染而不为当地经济造成足够的贡献。

Southern Copper, part of Grupo Mexico, is one of the copper companies with the largest mineral reserves, and Cuajone is its second largest mine in Peru.

矿工的铜产量于2021年下跌4.3％，最近表示，这预计今年进一步下滑。

By 2022, Southern Copper expects to produce 922,000 tons of metal used in construction and electric cars.

“今年,我们lieve our 2023 production will rebound to 1 million tonnes of copper," it said in its February earnings statement. By the end of the decade, as our organic growth projects mature, we expect copper production to reach 1.8 million tonnes.

China Southern is developing projects worth $2.8 billion in Peru. If the nascent Michiquillay and Los Chancas projects are included, the figure jumps to almost $8bn.

Protests have hit several of Peru's biggest mining companies since leftist President Pedro Castillo took office in July after winning an election with overwhelming support in the country's impoverished mining regions.

Roads used by MMG's Las Bambas copper mine to transport its metal have been intermittently blocked by residents demanding financial contributions from the company.

Last year protests also disrupted Antamina, the country's largest copper mine, which is jointly owned by BHP billiton (33.75 percent), Glencore (33.75 percent), Teck Resources (22.75 percent) and Mitsubishi (10 percent).

Mines of Glencore (LON: GLEN), Hudbady Minerals TSX, NYSE: HBM) and Hochschild Mining were also affected.

Social unrest in the country's mining areas has deepened global fears of a looming copper shortage.

根据CRU集团的估计，铜业需要花费超过1000亿美元，到2030年达到每年470万吨的短缺。