MMG Ltd. flagged possible shipment delays if a road blockade by a community displaced near the Las Bambas copper mine in Peru continues, Reuters reported March 12.
The company said it ran out of stock at the Matarani port in Peru and expects future production to fall due to the monthlong "illegal" blockade.
The community of Fuerabamba claims the company built the road on its farmland without consultation, and the government illegally turned it into a state highway.
The president of Fuerabamba, Gregorio Rojas, said the community asked MMG for about US$12 million for rights to the road, which is used to transport copper concentrates from Las Bambas to Matarani.
Rojas said mediation talks with the government to settle the dispute failed last week after the community refused to end the blockade as a condition to discussing its demands with the company.
MMG said it remains "permanently open to dialogue."
The company took the brunt of lower production at Las Bambas as its attributable net profit in 2018 dropped 55% to US$64.8 million, from US$144 million in the prior year.