Peru Cabinet seeks solution for Las Bambas crisis as leftists urge nationalization

LIMA, Peru, 3 June (Reuters) – On Friday, Peru’s Cabinet met to try to find a solution to the protracted conflict that has stalled operations at MMG Ltd’s (1208.HK) Las Bambas copper mine, with some left-wing politicians suggesting nationalisation as a solution.

Protesting members of the indigenous Huancuire community who have settled inside corporate property have brought operations at Las Bambas, one of the world’s largest copper mines, to a halt since April 20.

Late Thursday, parliamentarians from the ruling Peru Libre party introduced a plan to nationalise copper output in Peru, the world’s second-largest copper producer, including the problematic Las Bambas mine. The bill is unlikely to pass in the current Republican-controlled Congress.

According to a government press release, leftist President Pedro Castillo will host “an extraordinary session of the Council of Ministers to discuss the position and challenges of the Las Bambas mining project” on Friday.

Defense Minister Jose Luis Gavidida said he was prepared to dispatch a military force to clear the protesting villages and restore mine operations, but that this would require Cabinet approval.

“To restore the rule of law, a military and police intervention is required,” he told Canal N, a local news channel. “We’re prepared to step in.”

The situation in Las Bambas, which has already cost 3,000 people their jobs, deteriorated last week when a fire broke out in section of a mine camp amid skirmishes between police and community members. The demonstrators were blamed by the firm, although the Huancuire community denied any role in the incident. find out more

Since entering power in July, Castillo’s government has failed to pacify demonstrators. With promises to better disperse mining revenues, Castillo was elected with overwhelming support in mining regions.