MMG Reports Rising Copper Losses from Informal Mining at Las Bambas Site in Peru
MMG Raises Estimate of Copper Lost to Informal Mining at Peru’s Las Bambas to 90,000 Tons
Chinese-owned MMG Ltd. has increased its estimate of copper extracted by informal miners within its Las Bambas concession in Peru, revealing escalating challenges at one of the world’s largest copper operations.
According to the company’s latest disclosures and responses to Bloomberg, an estimated 90,000 metric tons of copper have been removed over the past 15 years from land designated for MMG’s next open pit, known as Sulfobamba. This marks a rise from a previous estimate of 74,000 tons reported through mid-2024.
While the amount represents only a small fraction of Las Bambas’ total copper resources, it carries significant implications for MMG’s expansion plans. The proposed Sulfobamba pit sits on land currently being mined by members of the indigenous Pamputa community, who view their activity as artisanal mining rather than illegal extraction.
MMG, a subsidiary of China Minmetals Corp., holds the mineral rights to the concession but still needs to purchase the Pamputa community’s land before construction can begin.
Instead, the community has expanded its own copper quarry—known locally as Apu Chunta—which has become one of the largest informal copper mines in the world.
A Surge in Informal Mining
MMG’s data indicate that one-third of the total copper extraction at Sulfobamba has occurred in just the past two years, reflecting a broader surge in informal mining across rural Peru amid high global metal prices.
At current market rates, the estimated 90,000 tons of copper extracted would be worth nearly $950 million.
“This was a mining concession granted by the Peruvian state to Las Bambas, but then the state doesn’t protect it,” said Pablo O’Brien, a former Peruvian mining ministry official. “It tarnishes the country’s image in the eyes of international investors.”
Legal and Social Tensions
MMG has filed more than 100 complaints against the Pamputa miners, seeking to reclaim access to the area slated for production in the mid-2030s. The miners, however, argue that their operations are legitimate, citing ancestral land rights, local ownership, and temporary mining permits.
“Calling this illegal mining is a fallacy of the Chinese state,” said Hernán De La Cruz, head of the Federation of Indigenous Mining Communities of Apurímac.
According to MMG, losses from informal extraction amount to about 7% of Sulfobamba’s resources, or less than 1% of total Las Bambas reserves. The company emphasized that only 10% of the concession area has been explored so far, underscoring its long-term potential.
A Critical Project for Peru’s Economy
Las Bambas, which began operations in 2016, cost $10 billion to develop and remains Peru’s largest single investment project. The mine currently accounts for nearly 2% of global copper production and is one of the country’s key economic drivers.
Despite its scale, ongoing land disputes, social conflicts, and weak state enforcement continue to challenge both operations and investor confidence.
As MMG looks to advance its next phase of development, the conflict at Sulfobamba illustrates the growing tension between industrial mining and community-based extraction in Peru’s mineral-rich Andes—a clash that could shape the future of global copper supply.
