Marco Aquino
LIMA (Reuters) – Rising prices this year have led to a staggering increase in the number of trucks carrying copper from illegal mines in Peru, clogging roads, causing accidents and creating dangerous conditions, especially after dark on a key highway in the Andean country’s “mining corridor”, industry Reuters sources reported this.
With demand for copper soaring and the world rapidly shifting to electric vehicles and clean energy, illegal mining is booming. Trucks associated with artisanal and illegal mining operations have crowded vehicles from mines such as Chinese-controlled MMG Ltd in Las Bambas, Hudbay in Constantia and Glencore (OTC:) in Antapakkoy.
Mining industry sources told Reuters there was an alarming rise in delays and delays along the 482-kilometer highway, a partially paved road needed to transport truckloads of copper concentrate to the coast.
“There are as many or more of them (the trucks) than we have,” said a source close to Las Bambas in Peru’s southern Apurimac region, the country’s fifth-largest copper producer last year. “It makes life difficult for all the miners using the corridor.”
In May, unofficial mining trucks were involved in at least 11 highway crashes, according to a document provided to Reuters by a Hudbay Canada source that included images showing road damage.
A growing standoff between big mines and artisanal miners has complicated government efforts to spur investment and production to support the economy after Peru’s long-standing position as the world’s second-largest copper producer was snatched away by rival Congo. Chile ranks first, while Peru remains second in terms of shipments.
A source in Khudbay said about 120 trucks arrived daily from artisanal mining operations, some operating under permits and others illegally. Trucks have damaged roadways, causing accidents and causing pollution.
“Although we have been seeing this problem for several years, the increase in the number of trucks in 2024 is astounding,” the source added, saying the mine has formally sought government intervention to step up inspections and controls on the roads.
Peru’s Ministry of Energy and Mines and the Cusco regional government did not respond to requests for comment.
A source close to Antapakkai said craft and wild trucks often travel at night to avoid detection.
The Peruvian government has tried to more tightly regulate the artisanal mining sector by tightening permitting rules. Small copper and gold producers fought back and protested, thwarting government plans to overhaul the industry.
“NO CONTROL, NO MONITORING”
Local civil society groups told Reuters the recent boom meant more uncontrolled activity on the Andean region’s roads.
“The flow is heavy, sometimes even too large. It’s the same as in Las Bambas, with an average of more than 100 trucks a day,” Robertson Pacheco, leader of the local defense front in the Velil district of Cusco, told Reuters by telephone.
“Informal miners have no control, no monitoring.”
The mining corridor connects mines in the regions of Apurimac, Cusco and Arequipa. New projects worth about $12 billion are being developed along the highway, such as Southern Cooper’s Los Chancas and First Quantum’s (NASDAQ:) Haquira.
For months, Pacheco said, his district has asked for a meeting with Cusco authorities to facilitate “dialogue or agreement” with the artisan miners, but he has received no response.
The government, which has registered about 86,800 permits for artisanal miners across Peru, says illegal mining, mostly gold, generates about $3-4 billion a year and has become more profitable than the illicit drug trade.
“There is definitely a problem with increased traffic in the mining corridor,” said Lima-based mining conflict analyst Ivan Arenas, adding that illegal mining, transport and processing of metals is growing rapidly.
“This supply chain will only continue to grow.”
(This story has been rewritten to correct a typo in paragraph 11)