Five-year production could reach around 900,000 tonnes of copper by 2026 if the second concentrator at its Centinela mine in Chile is approved.

Nexa called the road blockade "illegal" and said it would only be carrying out "critical functions" during the suspension.

The world's largest copper producer has reached advance contractual agreements with three unions at its century-old Chuquicamata mine.

Communities around Peru have long been skeptical of the benefits of mining to their lives. But they are growing bolder about their demands under socialist President Pedro Castillo.

The National Society of Mining, Oil and Energy said Francke's proposal would "irreparably" damage competitiveness in Peru's mining sector.

The Brazilian mining giant said that the deal is linked to its strategy of focusing on its core businesses and a commitment to a leaner portfolio.

The mining tax reform is the signature proposal of socialist President Pedro Castillo, who came to office in July.

The blockade, in place since Nov. 20, threatens to halt output at the Chinese-owned mine in southern Peru, which produces some 2% of the world's supply of copper.