Highlights
- China Minmetals released its first Peru Country Sustainability Report.
- The report highlights the significant economic contributions of the Las Bambas Mine.
- The mine has generated over $1.7 billion in taxes.
- It has dramatically increased the regional GDP.
- The mine sponsors environmental restoration projects.
- Despite positive reporting, the mine faces persistent community conflicts.
- Issues include protests, operational disruptions, and unresolved environmental concerns.
China Minmetals, a dominant vertically integrated state-backed rare earth element enterprise in Southern China officially released the Peru Country Sustainability Report on November 8, 2024, which marks the 10th anniversary of successful acquisition, construction, and operation of the Las Bambas Mine in Peru. While Rare Earth Exchanges reviewed the glowing annual report of China Minmetals (opens in a new tab), a dark underbelly also co-exists with the more upbeat vantage.
This is the first Peru Country Sustainability Report prepared by China Minmetals, fully demonstrating China Minmetals’ active fulfillment of economic, environmental, and social responsibilities, as well as its vivid practice of consultation and communication with all parties in Peru to seek harmonious development and create a better future together.
Las Bambas Mine
The Mine
Las Bambas is a significant open-pit copper mine located in the Cotabambas province of Peru. Operated by MMG Limited, the mine commenced production in early 2016 and contributes approximately 2% to the global copper supply.
The Report
A large report is divided into three chapters: “Rooted in Peru to Create Long-term Value, Committed to Steady Development to Consolidate the Foundation of Management, and Aimed for Sharing Common Benefits to Focus on Community Development”.
Through 48 real-world scene pictures, 17 pieces of big data, 36 cases, 12 logical diagrams and 9 stakeholder quotes, the Report comprehensively reveals China Minmetals’ key performance and fulfillment of social responsibilities during its investment, construction, and operation of the Las Bambas Mine in Peru.
The Report shows that China Minmetals has always followed the concept of “extensive consultation, joint efforts and shared benefits” by exploiting mineral resources at the Las Bambas Mine in a green, environmental-friendly, and sustainable manner and creating tens of thousands of job opportunities for the local area, effectively promoting the prosperous economic development in Peru.
Operation
Since the project was put into operation in 2016, the Mine has paid a total tax of over RMB 12.8 billion (USD$ 1,767,028,480) to the Peruvian government, driving the average annual GDP of Departamento de Apurímac up from RMB 3.6 billion to RMB 12.7 billion. And it’s per capita GDP has reached RMB 27,000, making it one of the fastest economically growing regions in Peru.
The Report reveals that throughout the construction, production and operation of the Las Bambas Mine, China Minmetals has always set employees’ health and safety as a top priority, strictly abided by Peruvian laws and regulations, and established a high-standard safety and environmental management system, winning the 24th Peru National Mining Safety Award. As the only mine in Peru with a soil and water environment monitoring laboratory, the Las Bambas Mine adopts advanced environmental technology and equipment to strengthen ecological conservation and restoration and ensure that various environmental indicators meet the standards, minimizing its impact on the surrounding ecological environment. It sponsored 34 communities to jointly launch a 368-hectare reforestation project and released 600,000 trout fry in 7 surrounding communities to promote the restoration and improvement of local ecosystems and improve the biodiversity level.
China Minmetals’ corporate report at least symbolically align with respond to Peru’s traditional culture and local customs, and strengthens communication and exchanges with local governments, partners, communities, and citizens.
The company has been active with social and cultural programs to further integrate its operation into Peru’s society. For example, China Minmetals implemented a series of initiatives such as building livelihood projects, training skilled talents, supporting education and medical care, and carrying out cultural exchanges to deliver a new vision of innovative, coordinated, green, open, and shared development and promote friendship and close contact between the people.
In April 2024, the Kutuctay Bridge built in Cotabambas Province with an investment of RMB 80 million by the Mine was completed and open to traffic, connecting the Departamento del Cusco and the Departamento de Apurímac, reducing transportation time between multiple communities by 4 hours, and benefiting more than 50,000 community residents.
The Mine implements the Bambas Heart Plan by regularly organizing community symposiums and enterprise open days to listen to the opinions and suggestions from community residents, continuously adjust operational strategies, consolidate, and deepen ties and strive to reach consensus.
Troubles not Discussed?
The Las Bambas mine in Peru has faced ongoing challenges since its operations began in 2016. These issues primarily stem from conflicts with local communities over environmental concerns, economic benefits, and social commitments.
Environmental and Social Concerns
Local communities have expressed worries about pollution affecting water sources and dust from mining activities harming crops and livestock. Additionally, there have been allegations that the mine’s operators have not fulfilled social investment commitments, including agreements related to community resettlement and development projects.
Frequent Protests and Blockades
These concerns have led to numerous protests and blockades, disrupting the mine’s operations. For instance, in April 2022, community members occupied company land, causing a suspension of activities. Similarly, in April 2024, residents of the Velille district in Cusco’s Chumbivilcas province blocked the main mining corridor after negotiations over local development contributions fell through.
Operational Disruptions
The mine has experienced significant operational halts due to these conflicts. Since its inception, Las Bambas has faced over 600 days of stoppages, impacting its production capacity. Despite these challenges, the mine produced approximately 302,000 metric tons of copper in the past year.
Government and Company Responses
Both the Peruvian government and the mine’s operators have engaged in dialogues with local communities to address these issues. However, reaching lasting agreements has proven difficult, leading to recurring disputes and operational challenges.
In summary, despite the overwhelmingly positive China Minmetals annual report, the Las Bambas mine continues to grapple with environmental, social, and operational challenges, primarily due to ongoing conflicts with local communities over unmet commitments and environmental concerns.
Daniel
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