MMG, an Australian-Chinese global resources company that explores and creates new mines around the world, has just announced a $3 billion investment in completing the construction of the Bambas copper mine in Peru. China’s MMG (Minerals and Metals Group), hopes to start extracting copper by 2016.
Although the mine is currently under construction, MMG bought it from Glencore, an Anglo-Swiss multinational trading and mining company, for $7 billion. The mine, projected to be the third largest copper mine in the world, is forecasted to produce 175,000-187,000 tons of copper for the year.
The slowed economy and present social issues within Peru however, are slowing the process of the project. The company was aware of the risks included in investing in this mine,
These included the availability of skilled labour, changes in the design of the tailings dam and higher than expected costs for building a new town for the community that had to be moved at the site, which had led to delays and an increase in capital expenditure,” said Reuters.
At the cost of development, Reuters had also mentioned the displacement of a community, a recurring thing in extraction countries such as Peru. The mines create jobs, or so the companies advertise, but jobs for trained members in the community? The lack there of, of trained members is something as well that is a disconnect between extraction companies, the government and the community.
Nevertheless, the Chinese investment has been made and the mine will be up and running soon enough, working for Chinese benefit.