Peru's Ministry of Energy and Mines has approved an extension to MMG's Las Bambas copper mine.
MMG will develop the Chalcobamba pit, located approximately four kilometres northwest from the Las Bambas process plant. Chalcobamba will be an open pit, and will be commissioned over the next five months.
Ore will be transported by truck downhill to the already-built crushing and conveying plant, near the Ferrobamba pit.
Development of the Chalcobamba pit will increase Las Bambas production to around 380,000 to 400,000 tonnes per annum of copper in the medium term. First production at Chalcobamba is expected in the second half of 2022.
Production guidance for 2022 remains unchanged, MMG said.
MMG is expected to invest US$130 million for construction of the first phase, Reuters reported Peru's mining ministry as saying.
Las Bambas has been the focus of many protests and road blockades in recent months. Production dropped last month due to the ongoing blockade, forcing the mine to wind down operations temporarily.
Las Bambas produces 2% of the world's copper, a critical mineral required for the green transition.
MMG expected to produce between 310,000 tonnes and 330,000 tonnes in 2021, and said in July 2021 that due to the disruptions it expected to produce on the low end of that projection. In 2020, Las Bambas produced 311,020 tonnes of copper concentrate and 3,167 tonnes of molybdenum concentrate.
MMG operates Las Bambas as a joint venture, holding 62.5% of the project while wholly owned subsidiary Guoxin International Investment Co Ltd owns 22.5% and CITIC Metal Co owns 15%.
