Surging copper prices this year have brought startling growth in the number of trucks carrying copper from illegal mines in Peru, jamming roads, causing accidents and creating hazardous conditions especially after dark along the Andean country’s key “mining corridor” highway, industry sources told Reuters.
With copper demand soaring as the world rapidly moves toward electric vehicles and clean energy, illegal mining has been booming. Trucks linked to artisan and illegal mining operations have been crowding vehicles from mines like Chinese-controlled MMG Ltd’s (1208.HK), opens new tab Las Bambas, Hudbay’s (HBM.TO), opens new tab Constancia and Glencore’s (GLEN.L), opens new tab Antapaccay.
Mining sources told Reuters about alarming growth in delays and stoppages on the 482-kilometer highway, a partially paved road that is essential for trucks of copper concentrate getting to the coast.
“There are as many (trucks) or even more than ours,” said a source close to Las Bambas in Peru’s southern Apurimac region, the country’s fifth largest copper producer last year. “It complicates life for all the mines using the corridor.”
Informal mining trucks were involved in at least 11 accidents in May along the highway, according to a document shared with Reuters by a source at Canada’s Hudbay, which included images showing damage to the roadway.
Burgeoning stand-offs between big mines and artisan miners have complicated government efforts to spur investment and production to bolster the economy after Peru’s long-held position as the No. 2 global copper producer was snatched away by rival Congo. Chile is No. 1, and Peru remains second for shipments.
The Hudbay source said there were around 120 trucks daily from artisan mining operations, some of which operate with permits and others illegally. The trucks were damaging the roadway, causing accidents and pollution.
“While we’ve seen this problem for some years, the increase in truck numbers in 2024 is startling,” the source added, saying the mine had formally sought government intervention to strengthen inspection and controls on the road.