PERU: MMG & Hudbay Warn of Production Risk Amid Informal Miner Protests

In July 2025, mining giants MMG and Hudbay issued formal warnings to the Peruvian government about escalating risks to their operations due to protests and road blockades led by informal miners. These actions have severely disrupted the Southern Mining Corridor, a strategic route for transporting copper concentrates from mines such as Las Bambas and Constancia to the Pacific coast. The protests were sparked by the government’s decision to remove over 50,000 individuals from the REINFO registry—a program that allows small-scale and artisanal miners to begin formalizing their activities. The excluded miners argue the move was abrupt, unfair, and threatens their only source of income.

Company representatives met with the President of the Council of Ministers to express concern over the deepening crisis. They emphasized that the continuation of road blockades could lead to halted production, missed export commitments, and financial losses in the hundreds of millions. Both MMG and Hudbay operate in areas where community tensions are historically high, and social license to operate (SLO) is fragile. While the companies themselves are not directly responsible for the policy decisions that sparked the unrest, their infrastructure and supply chains are now caught in the crossfire—highlighting how unresolved issues around informal mining can destabilize formal operations.

This situation underscores the urgent need for a renewed, inclusive approach to Peru’s mining governance. Addressing the root causes of informality—such as lack of access to legal titles, technical assistance, and financial resources—is essential for maintaining both regulatory legitimacy and operational continuity. The case also demonstrates that social license is not static—it must be continually earned not only by companies but also by the state. Without coherent strategies that integrate informal miners into the legal framework while protecting the rights of formal operators, Peru risks deepening polarization in mining zones, jeopardizing its position as one of the world’s top copper exporters.

SOURCE