Lima-based Compania da Minas Buenaventura has temporarily suspended production at its Uchucchacua silver-zinc-lead-manganese mine in Peru due to a community strike.

The company said it has submitted a request to Peruvian Energy and Mines Minster Ivan Merino to extend the suspension, saying that the suspension is an important opportunity to improve efficiency and profitability.

The strike began at midnight on September 13, causing Buenaventura to halt all mining and ore processing activities.

The company's production has declined in 2020 and 2021 to due operational challenges, Buenavista said in its October operating results.

The temporary suspension will also allow the company to preserve cash, the company said.

Over the next two years, Buenavista said it will focus on optimizing the Uchucchacua operation's size and reducing its fixed cost, lowering costs related to COVID-19 protocol compliance, and reassessing services with contractors and suppliers.

The company is also planning a mine redesign to increase cost efficiency.

Buenavista will also use this time to continue negotiations with the local community, it said.

Exploration activities at the Yumpag silver project will continue, with production expected in early 2024.

Minister Merino said on Sept 21 at Perumin that the government is looking to amend existing mining legislation and revisit legislation that determines royalty payments, Reuters reported.

Uchucchacua produced 3.73 million ounces of silver in the first nine months of 2021, versus an adjusted target of 3.7 million for the year, the company reported in third quarter results released on October 15.

"3Q21 silver, lead and zinc production below expectations with decreased production due to suspended operations resulting from an illegal road blockade by members of the local community which began on September 13, 2021," wrote the company.