Peru’s Copper Supply on Edge as MMG & Hudbay Raise Alarm Over Informal Miner Protests

MMG and Hudbay Minerals executives met with Peru’s cabinet chief this week to warn that production at their copper mines—Las Bambas and Constancia—could be affected if protests by informal miners blocking a key transit route continue. The government, through its cabinet, emphasized dialogue but acknowledged potential disruptions.

Background & Timeline

• The two-week road blockade began in late June 2025, as hundreds of informal miners protested to demand an extension of the deadline to regularize their operations via Peru’s REINFO program.

• These blockades cut off major transit corridors in the Cusco region, severely limiting the movement of copper-laden trucks from mines to coastal ports.

Mines at Risk

• Las Bambas (MMG): With a production of over 320,000 metric tons of copper in 2024, it ranks as Peru’s fourth-largest mine — high concern over transport gridlock.

• Constancia (Hudbay Minerals): Producing about 99,000 metric tons last year, it stands as the ninth-largest copper mine, similarly threatened by logistics issues.

• Glencore’s Antapaccay mine also uses the same blocked route but has not yet reported production impacts.

Meeting with the Cabinet Chief

Executives from both MMG and Hudbay met this week with Cabinet Chief Eduardo Arana to express their concerns. While both firms continue normal on-site operations, they cautioned that prolonged blockades could make the situation “complicated.” In response, Arana reaffirmed the government’s commitment to facilitating dialogue between companies and local communities.

Economic & Export Impacts

• Peru’s central bank projects a 0.2% drop in GDP for July, attributing the slowdown to the logistical bottleneck caused by the protests.

• As the world’s third-largest copper producer, Peru exports most of its output to China, making any disruption significant for global markets.

• A report estimates that nearly 42% of Peruvian copper output could be affected if blockades persist—posing a serious risk to supply chains.

Drivers Behind the Protests

Protesting informal miners are demanding an extension of Peru’s REINFO formalization deadline—a program that impacts over 50,000 mining operations in regions like Cusco and Apurímac. The end-of-year cutoff has triggered large-scale unrest, some reportedly supported by illegal activities and criminal gangs.

Outlook & Next Steps

• Short term: Operations at Las Bambas and Constancia remain steady, but supply chains are increasingly precarious.

• Government response: Cabinet Chief Arana urged renewed dialogue, but details surrounding formal negotiations remain scarce.

• Potential scenarios under discussion include:

  1. Granting a REINFO extension

  2. Enhancing security measures while pushing for formalization

  3. Offering targeted support to ease logistics