MMG Limited (MMG) today released its third quarter 2021 production result, producing 91,202 tonnes of copper and 61,834 tonnes of zinc in the three months to 30 September.
Safety
The total recordable Injury Frequency (TRIF) for the third quarter 2021 was 1.13 per million hours worked and year-to-date TRIF was 1.16. However, it is with much sorrow and deep sympathy for grieving family and community members, that MMG reports a tragic bus accident that claimed the lives of 16 employees of contractor partners in Cotabambas, Peru on 27 August. MMG Las Bambas has extended support, welfare and resources to the loved ones of those involved in this tragic incident together with assisting investigations into the incident.
Production
“Total copper production (copper cathode plus copper in concentrate) of 91,202 tonnes was 2% below the prior quarter due to a prolonged community road blockade at Las Bambas and lower ore grades at Kinsevere,” MMG Chief Executive Officer Geoffrey Gao said.
“Total zinc production of 61,834 tonnes was 6% above the prior quarter, mainly driven by higher mining and milling volumes at Dugald River following a planned shutdown in June.”
Community road blockades in the Chumbivilcas province of Peru restricted inbound and outbound logistics for about 20 days and Las Bambas mining operations for 12 days during the quarter. As a result, Las Bambas annual copper production is now expected to be around 300,000 to 305,000 tonnes. C1 costs are expected to be around 10 cents lower than previous guidance, at US$1.00 to US$1.10/lb.
On 30 September 2021, an agreement for the temporary removal of roadblocks was reached and transport operations resumed at Las Bambas.
In recent days however, the neighbouring communities of Cotabambas and Challhuahuacho have demanded the presence of the President of the Republic and the Prime Minister to re-start discussions regarding the fulfillment of social and economic commitments. A visiting delegation of senior officials was rejected on October 18. As a result, there are a number of new regional roadblocks now in place.
MMG continues to advance dialogue with the national government and the communities to establish enduring agreements while committing to regional social development.
Outlook
Looking ahead, work continues to advance the Kinsevere Expansion Project (KEP), with final approval targeted at year-end. Kinsevere production is now forecast to be around 45,000 to 50,000 tonnes of copper cathode. This is due to an expectation that mining will not resume in the fourth quarter as previously planned.
Following submission of the original application in February 2019 and the completion of the prior consultation process, Las Bambas continues to seek regulatory approval for the development of the Chalcobamba pit. A combination of lengthy community consultation and administrative delays – as well as complications associated with the 2021 national elections – continues to delay receipt of permits.
Dugald River and Rosebery production guidance is unchanged with C1 costs expected to be at the lower end of guidance, due to stronger by-product credit prices, reduction in treatment costs and a strong focus on cost controls.
MMG’s support for a low carbon future
MMG is pleased to announce its support for the International Council on Mining & Metals’ target to achieve net zero emissions by 2050.
“The world is moving to a low carbon future and MMG is committed to playing its part. Zinc and copper from our operations are essential inputs to low carbon technologies including solar panels, wind turbines, electric vehicles and large-scale batteries to name just a few,” MMG Chief Executive Officer Geoffrey Gao said.
“To minimise our own carbon footprint, MMG will measure and report our progress for cutting emissions across our mines to bolster wider global efforts.
“MMG is completing a company-wide climate resilience strategy spanning energy solutions and technologies together with mitigation measures that will determine interim 2030 targets and support the 2050 goal. This work is due in early 2022.”
Please download a full copy of the MMG 2021 Third Quarter Production Report here.