The surging global demand for copper, driven by the transition to electric vehicles and clean energy, has led to a startling growth in the number of trucks carrying copper from illegal mines in Peru. This has created major traffic problems and hazardous conditions along the country’s key “mining corridor” highway.
According to industry sources, the influx of trucks linked to artisan and illegal mining operations has been crowding out vehicles from major copper mines like MMG’s Las Bambas, Hudbay’s Constancia, and Glencore’s Antapaccay. The 482-kilometer partially paved highway is essential for transporting copper concentrate to the coast.
Sources close to the mines report alarming increases in delays and stoppages on the highway, with one source from Las Bambas saying “There are as many (trucks) or even more than ours. It complicates life for all the mines using the corridor.”
The surge in informal mining trucks has also led to at least 11 accidents along the highway in May, according to a document shared by a source at Hudbay. The trucks have been damaging the roadway, causing accidents and pollution.
The burgeoning standoff between the big mining companies and the artisan miners has complicated the Peruvian government’s efforts to boost investment and production to strengthen the economy. Peru is the world’s second-largest copper producer, but it has lost its position to rival Congo, with Chile remaining at number one.
Peru’s government has tried to regulate the artisan mining sector by tightening permitting requirements, but small-scale copper and gold miners have pushed back and protested, hindering the government’s plans to overhaul the sector.
Industry sources report that the artisan and wildcat trucks often travel at night to avoid detection, adding to the hazardous conditions on the highway. The government has not responded to requests for comment on the situation.