MMG revises guidance on Las Bambas disruption

Resources company MMG revised its copper output guidance for 2019 downwards following disruption at the Las Bambas mine in Peru.

Blockades by local communities on inbound and outbound routes affected logistics at Las Bambas between February and April, causing expectations for the mine's output to fall to the lower end of the existing 2019 guidance of 385,000-405,000t.

MMG revised 2019 total copper production guidance to around 450,000t from a previous range of 462,500-485,000t.

Disruption was first reported at Las Bambas on 25 February and MMG declared force majeure at the mine on 26 March.

MMG restored inbound logistics on 12 April, and on 13 April concentrate logistics were re-established following the ratification of a deal between local communities and the government to end the blockade.

MMG's total copper production in the January-March period was down by 10pc year on year to 114,369t, as a 37pc decrease in copper cathode output at Kinsevere, Democratic Republic of Congo offset a 16pc rise in concentrates, driven by strong production at Las Bambas.

First-quarter zinc concentrate output was up by 21pc on the year to 57,151t. The increase was driven by higher production at the Dugald River zinc deposit in Queensland, Australia. Output jumped by 35pc despite temporary disruptions caused by extreme rainfall and flooding in February.

2019 zinc production was forecast to be 250,000-270,000t.

The group's output of lead concentrates rose by 19pc on the year to 10,986t in the first quarter.

Molybdenum concentrate production was up by 3pc year on year to 512t.

MMG's major shareholder is state-owned China Minmetals Corporation. It also owns Sweden-based Minmetals North-Europe, which trades a wide range of non-ferrous metals including copper, lead and zinc.