Peru Pivots from Attacks on Oil Pipelines to Mining Unrest

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Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Social unrest continues to plague Peru's mining infrastructure.

On Monday, Hochschild Mining (London, England) reported that its Inmaculada gold and silver mine was sabotaged by a group of 30 individuals from the Casma Palla Palla neighborhood.

The group entered the mine and burned the entrance checkpoint and one warehouse, according to Hochschild, leading to tensions and panic among the 1,700 workers that were present. The British company also reported that the communities had shut down the roads to the mine's entrance since October 27.

It was unclear from the statement if the incidents disrupted mining operations. Hochschild did not specify the reasons behind the protests but called the groups to dialogue.

These kind of attacks are not uncommon in Peru. They seem to be related to a pattern impacting energy and mining infrastructure through attacks on pipelines, mines and logistical assets. In many situations, the episodes are perpetuated by local communities demanding social programs or support. For related information, see October 28, 2022, article - Peru's Energy Sector Rocked by Sabotages, Political Crises.

Last month, similar incidents at other mining locations were reported by media sources, highlighting Peru's unstable situation. This included protests at mines and the blockade of mining distribution lines. Such incidents slow ongoing investments and could deter future investments in Peru, the world's second-largest producer of copper.

The Inmaculada mine is a 20,000-hectare underground gold and silver mine. It is located in the Ayacucho province and is fully owned by Hochschild. In the last quarter, the mine produced 39,819 ounces of gold and 1.5 million ounces of silver, 14% and 15% higher than the previous quarter, respectively. The Inmaculada mine is Hochschild's largest producing asset in Peru. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Plant Database can click here for the plant profile.

Peru's gold production in August averaged 8.067 million fine grams, about 1.3% more than the previous month and 0.6% higher year on year. The region of La Libertad produced about a third of the nation's total output, while about 20.9% came from the Cajamarca region and 18.7% from the Arequipa. Gold production in the first nine months of this year was 0.7% lower than the same period last year.

Peru's silver production in August stood at 270,286 fine kilograms, 11.2% lower than in August last year. This was the result of lower output from Compañia Minera Antamian (-6.8%) and Hotschild's Compañia Minera Ares (-2.4%). Peru's silver production was up 9% from January through August compared with the same period last year.

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