Hudbay Minerals Temporarily Shuts Down Constancia Copper Mill in Peru Amid Widespread Unrest

Operations Halted at Constancia Mill

Hudbay Minerals Inc. announced on September 23, 2025, the temporary shutdown of its Constancia copper mill operations in Peru. This decision comes in response to widespread civil unrest, protests, and illegal blockades that have escalated across the country, particularly affecting the southern mining corridor where the Constancia mine is located.

Escalating Social Unrest and Mining Sector Impact

The current wave of social unrest in Peru has intensified over recent months, culminating in riots in Lima and numerous protests nationwide. These demonstrations are primarily driven by regulatory changes concerning temporary mining permits under the REINFO program, which aimed to formalize informal mining operations. The expiration or revocation of these permits has sparked mass protests, road blockades, and riots in cities like Lima and Cusco, disrupting critical copper transport routes and affecting multiple mining operations, including Hudbay's.

The protests highlight a broader tension between formal mining operators and informal miners who argue that new regulatory requirements are economically impractical. Peru's mining sector, a cornerstone of its economy, has frequently experienced social conflicts, with significant disruptions reported in 2022 and 2023 following the removal of President Pedro Castillo and subsequent protests.

Hudbay's Response and Future Outlook

In light of the escalating situation, Hudbay Minerals prioritized the safety of its personnel, implementing precautions that included the temporary demobilization of its non-essential workforce. The company stated that while the Constancia mill had continued to operate over the preceding weekend, the recent demonstrations necessitated a precautionary shutdown.

During this operational pause, Hudbay intends to utilize the downtime to perform preventative mill maintenance and potentially advance some of the planned maintenance originally scheduled for later in the year. Despite the temporary disruption, Hudbay Minerals remains confident that these issues will be resolved and does not anticipate an impact on its 2025 production and cost guidance range. The company has affirmed its commitment to collaborating with government and legal authorities to engage with protestors and achieve a prompt resolution.