Vedanta to exclude base metals business from sweeping demerger
The group said it will consider the base metals business demerger at a later stage.
Following a series of complaints presented by the Cotabambas Indigenous community in southern-central Peru, community representatives and executives from China-backed miner MMG Ltd. are scheduled to meet on Monday and Tuesday at the headquarters of the Presidency of the Council of Ministers in Lima.
Talking to local media on Sunday, the president of the Cotabambas Defense Front, Bruno Cabrera, said that both the government and the company have failed to comply with some of the commitments that were agreed upon earlier this year, such as an approximate contribution of $83 million to support the towns and villages that surround the mine.
Cabrera noted that the figure is an estimation made by Cotabambas but that they would like the company to come up with its own figure, which should be consistent with current copper sales.
According to the community leader, there have been cuts to the mining canon received by each district, province and region and the lack of proper funding has halted the development of new health, education, transport and agricultural infrastructure.
Cabrera said that his group wants the dialogue to work out to avoid further protest actions but pointed out that they ‘will respond accordingly,’ based on the outcome of the upcoming meetings.
“We are showing our willingness to talk. Following the last conflict, we are not going out to protest, instead, we are calling for a dialogue,” he said.
Back in February, MMG had to place Las Bambas on care and maintenance due to ongoing community unrest triggered by the destitution of President Pedro Castillo late last year.
The copper mine, which accounts for 2% of the metal worldwide, had also faced a shortage of critical supplies due to disruptions to inbound and outbound transport.
Overall, the wave of intermittently violent demonstrations imperilled 30% of Peru’s copper output.
