Chinalco Mining’s Peru subsidiary was notified by the South American nation’s environmental agency on March 28 of an alleged non-compliance with environmental laws on certain water discharges, it said in a statement to the Hong Kong stock exchange today. Mining will cease until the matter is resolved. Work at its processing plant and other ancillary operations won’t be affected, the company said.
The Toromocho project started initial production in December 2013 and is scheduled to reach full production in the third quarter of this year, the company said. Copper is the worst performer on the London Metal Exchange this year as demand from top consumer China slows.
“So far, the halt of the mining operation won’t affect the schedule of reaching full capacity,” Yuan Li, spokesman for parent Aluminum Corp. of China, said by phone. He didn’t give an estimate for how long the stoppage will last.
Chinalco Mining added 1.1 percent to 95 Hong Kong cents as of 2:47 p.m. local time in Hong Kong, rebounding from a decline of as much as 16 percent earlier in the day, its biggest drop since its debut on Jan. 31, 2013.
Copper output from the $2.2 billion mine may reach 120,000 to 150,000 metric tons this year, compared with a previous forecast of 190,498 metric tons, Chinalco Mining said Dec. 11.
Global consumption of the metal will trail production by 81,000 metric tons in 2014, after a supply deficit of 175,000 tons last year, Barclays Plc said on Feb. 12.
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