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Exclusive: Peru mines on power despite protests, though halt risk looms

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Exclusive: Peru mines on power despite protests, though halt risk looms

Peru’s biggest copper mines have been able to maintain production despite road blockades, attacks and protests that have roiled the Andean nation for over two months and led to warnings of production halts, an analysis showed on Wednesday.

The analysis of power usage data by Reuters at some of the key mines in Peru, the world’s no. 2 copper producer, indicates that activity at the deposits remains near normal levels, although a source close to one major mine said the risk of stoppages was rising.

The South American nation has been gripped by anti-government protests since the Dec. 7 ouster of leftist President Pedro Castillo. Highways have been blockaded throughout the copper-rich south, threatening production and transport of the metal, hitting some company shares, and boosting already high prices.

But the data suggests mining activity has been resilient, at least for now.

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This includes massive deposit Las Bambas, owned by China’s MMG Ltd (1208.HK), which previously said it would have to halt production from Feb. 1, and Glencore’s (GLEN.L) Antapaccay, which stopped production in mid-January but has since resumed.

The power data from COES, which represents firms in Peru’s energy sector, shows that nearly all major mines are drawing normal or near-normal levels of electricity. The data has traditionally been a reliable indicator of mining activity.

A source close to Las Bambas said the mine, which previously said it faced a production halt from Feb. 1 due to key provisions not reaching the mine, said it had been able to keep operating at a minimum level after getting “last minute supplies.”

The mine, which normally supplies some 2% of global copper, has been hit by regular blockades for years, usually causing its power use to fall sharply during the periods of disruption. This has not yet happened this time around, despite the protests.

The person added, however, that the mine risked fully running out of supplies by Wednesday, which would force it to move into a “care and maintenance” mode with its machinery that would use half the normal level of power.

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The data shows some mines experienced temporary dips in power use in recent months, including Peru’s largest mine Antamina, co-owned by Glencore and BHP (BHP.AX), and Glencore’s Antapaccay around the middle of January.

Antapaccay reopened on Jan. 31 after a temporary halt and has been operating again at full capacity.

Hudbay Mineral Inc’s (HBM.TO) Constancia mine has seen power use start to decline recently. Others, like Freeport-McMoRan’s (FCX.N) Cerro Verde are at normal or elevated levels. A combined index of six key mines is near normal.

Freeport-McMoRan spokesperson Linda Hayes said: “We are continuing to operate, but have limited our mill throughput by about 10% to deal with intermittent supply disruptions.”

The other firms did not immediately respond to requests for comment about activity at their mines in Peru.

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The mining activity is key to keeping global copper supply flowing. Brokerage Jefferies said in a Jan. 31 note that some 30% of Peruvian copper supply was at risk from the unrest, a “potential positive for the copper price.”

The protests – which have led to the deaths of 48 people and are the worst violence Peru has seen in over 20 years – could of course soon start to have a greater effect on mining operations.

Demonstrators are becoming more determined as lawmakers struggle to agree on calling snap elections, a key protest demand.
This week, Peru’s Buenaventura (BUENAVC1.LM) suspended operations at a key silver mine after protesters invaded the site.

At a blockade on the “mining corridor” highway, protester Wilber Toco Aragua Salcedo told Reuters that people felt like the mines took all the wealth and left little for locals.

“The south is quite rich, but the mining concessions that we have harm the people,” he said, adding he had heard mines were stocking up on supplies. “The people do not get tired, the people won’t go away, we will not take a step back.”

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Two dozen people dead after van falls into Afghan ravine

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Two dozen people dead after van falls into Afghan ravine

Twenty four people, including 12 women and 8 children, died on Wednesday when the van they were travelling in fell into a ravine in northern Afghanistan, police said.

“Due to the neglect of the driver, the vehicle deviated from the road and fell into a ravine. Twenty four people are dead,” said Den Mohammed Nazari, a police spokesman in Sar e Pol province,

No further details were available about the cause of the accident.

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Israeli army detonates home of Palestinian ‘assailant’ in West Bank

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Israeli army detonates home of Palestinian 'assailant' in West Bank

The Israeli army demolished the home of an alleged Palestinian assailant on Thursday in the occupied West Bank city of Ramallah.

The Israeli military said its forces were operating in Ramallah “to demolish the residence of the terrorist who carried out a bombing attack in Jerusalem last November.”

The Israeli army released video footage showing soldiers setting explosives and explosions as they demolished the home.

Clashes erupted after Israeli forces mounted a rare raid into the Palestinian city of Ramallah in the occupied West Bank early on Thursday, in what the military said was an operation to demolish the house of an assailant.

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A Reuters witness said a large military convoy arrived in downtown Ramallah, the seat of the Palestinian government, leading hundreds of Palestinians to gather in the area.

Some Palestinian youth hurled stones at Israeli forces, who fired live bullets, stun grenades and tear gas at the crowd, the witness said. Trash bins that had been set on fire blocked roads as ambulance sirens wailed.

The Palestinian health ministry said at least six people were transferred to hospital for treatment, including three who sustained gunshot wounds.

The twin blasts carried out by the Palestinian assailant in November killed two people, including an Israeli-Canadian teenager, and wounded at least 14 others in what police said were explosions of improvised bombs that were planted at bus stops near the city exit and in a junction leading to a settlement.

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In unusual orca sighting, tour spots at least 20 killer whales off San Francisco

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In unusual orca sighting, tour spots at least 20 killer whales off San Francisco

 An uncommonly large grouping of orcas for Northern California — roughly two dozen killer whales — were spotted by a whale watching tour off the coast of San Francisco last month, likely gathered together to celebrate a successful hunt for sea lions or seals.

“I screamed ‘orca!’” recalled Michael Pierson, a Oceanic Society naturalist leading the tour, after noticing “those distinct dorsal fins poking out of the water.”

“It was really, really special,” Pearson said in an interview on Wednesday.

The big group of whales was seen on May 7 near the Farallon Islands, about 28 miles (45 kilometers) west of San Francisco. Killer whales are more commonly found around the deep ocean canyon beneath Monterey Bay — about 75 miles south of the city — and can be spotted anywhere from the coastline to just 5 miles off shore, according to Nancy Black, a marine biologist and owner of Monterey Bay Whale Watch.

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It’s easier for whale-watching tours to see them in Monterey Bay because the canyon is so close to the beach, while the Farallon Islands require a miles-long boat ride from San Francisco, and the water still may not be deep enough there, Black said.

“They’re the whale that most people want to see when they go whale-watching,” she said, “you just don’t know when they’re going to be around.”

Black, who is also the director of the nonprofit California Killer Whale Project, said she’s seen larger groupings of orcas than last month’s two dozen but added that any sighting is special. As she spoke, she watched five swim together in Monterey Bay.

The Oceanic Society regularly does tours to the Farallon Islands — which include collecting data for scientists and conservationists — and spring is migration season. Pierson and the boat’s captain, Jared Davis, decided to try a different route on May 7 to head out over deeper water.

When spotted during Farallon Islands tours, the orcas are usually in a family group of three to six whales. They typically range from Baja California up the West Coast and Canada to Alaska.

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Last month, however, the tour stumbled across several family groups congregating together, for a total of 20 to 24. They were likely near the islands because it’s where pregnant sea lions and seals give birth this time of year — and the mammal-eating whales had probably just feasted.

“We don’t know exactly why this particular group was so big,” he said.

While the adult males, with their distinctive 6 feet-tall (2-meter) dorsal fins, were “definitely a showstopper,” Pierson said the mothers and their calves were also a big hit.

“You could hear the coos and awws from everyone on board,” he said.

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