MMG Limited announced on August 19 that operations at its Las Bambas mine in Peru have been suspended, following an incident on August 18 that resulted in the deaths of two workers. Against a backdrop of already tight concentrate supply, this has added another disruption to copper supply in South America. However, MMG expects operations to gradually resume from August 21 and has not yet revised its 2026 copper production guidance. This timeline suggests the disruption may be relatively short-lived, though it has nonetheless introduced additional volatility to market sentiment concerning already tight copper concentrate supply.
Las Bambas is one of Peru's largest copper mines. According to data from Peru's Ministry of Energy and Mines, it produced 410,829 tonnes of copper in 2025, roughly 28% higher than in 2024 and representing approximately 2% of global mined copper supply .
The stoppage comes amid other disruptions in South America that have heightened concerns over concentrate supply. Production at Escondida, the world's largest copper mine, fell 3% to 1,261,000 tonnes in FY 2026 (July 2025-June 2026), due to a planned decline in concentrator feed grade to 0.90% from 1.02% in the prior fiscal year. Lundin Mining recently lowered its annual production guidance for its Chilean operations by 10,000 tonnes due to weather-related disruptions. Collahuasi in Chile has recorded five consecutive years of declining output, driven by falling ore grades and insufficient process water supply, which have eroded copper recovery efficiency. And Codelco's El Teniente mine is expected to see output remain low for roughly the next five years, following a fatal safety incident last year that has already impacted production. The mine is expected to produce 301,000 tonnes of copper this year.
Peru is the world's third-largest copper producer, and Las Bambas accounts for a significant share of global mined output. Any extended halt could therefore intensify the supply pressures already building from other disruptions across the region. Mysteel's clean copper concentrate spot treatment charge (TC) index, CIF China, stood at -$176.22/dmt as of August 14, continuously declining entering 2026 and reflecting historically tight availability, which could worsen further given frequent mining disruptions, declining ore grades, and slowed growth in new projects.
Written by Mingyuan Wang, wangmingyuan@mysteel.com
