MMG Limited (ASX: MMG) is an ASX listed metals and mining company based in Australia. The company’s objective is to become a top mining company in mid-tier by the year 2020. It is also active member of some of the leading industry organisations like International Council on Mining and Metals (ICMM), Society of Mineral and Energy Producers of Peru etc. The company has several projects like Las Bambas copper mine Cotabambas, Apurimac region of Peru, Kinsevere copper mine located in the Democratic Republic of the Congo (DRC) etc.
On 8th April 2019, the company made an announcement regarding the previous update about Las Bambas which was released on 26 March 2019. The announcement is pursuant to Rule 13.09 of the rules governing the listing of securities on the stock exchange of Hong Kong Limited (Listing Rules) and the Inside Information Provisions.
Las Bambas is a world-class transformational copper mine situated in Cotabambas, Apurimac region of Peru. It is a JV between 3 companies namely, MMG (62.5% interest), CITIC Metal Co. Ltd (15% interest) and a wholly owned subsidiary of Guoxin International Investment Co. Ltd (22.5% interest). It is a long-life asset with an initial mine life of more than 20 years. It has reached 97% of its design capacity in six months which is way ahead of schedule and that too below the estimated cost.
The company had a dialogue with Community, Government, Ombudsman and Church representatives which progressed positively and welcomed by the company.
The community of Nueva Fuerabamba has agreed to an agreement with Las Bambas according to which the community will remove their current roadblocks at Manantiales near the mine entrance and at the Yavi Yavi farm.
The undertakings have also been agreed by the Government of Peru with the district of Challhuahuacho to decide their support for roadblocks. The conclusion is to be confirmed at the community meetings scheduled for Monday, 8 April 2019 (today).
These agreements are expected to remove the current roadblocks which are hampering the road transport to and from the Las Bambas site. Upon successful consent by the community in its meeting, continuous restoration of mining, production and concentration of transport to normal operation can be seen at Las Bambas.
Currently, the finished reserves of approximately 59,000t of contained copper in concentrate are present at the site. A further update will be provided by the company in its March quarter production report on 17 April 2019.
On 26th March 2019, the company announced that its personnel transport is getting damaged including outbound and inbound logistics due to protest activities carried out by Fuerabamba community near the entrance to the Las Bambas copper mine. Production at the site continued, however, it is expected to be progressively impacted from later that week. The company stated that it would continue to carry on active communication with Fuerabamba and others to come at a peaceful resolution of this current situation. Health and safety of its employees, the community and contractors, remains the main focus of the company.
The stock traded last at A$5.00 in January 2017.
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