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FILE PHOTO: People sit in the mountains in front of a mine operated by MMG Las Bambas, in a region where locals claim mining activity has negatively affected crop yields and killed livestock, outside of Cusco, Peru October 14, 2021. REUTERS/Angela Ponce/File Photo - 

MMG Ltd's Las Bambas mine on Thursday welcomed an agreement by a local Peruvian community to lift a month-long road blockade that derailed its operations, but did not say whether it would now restart copper production.

Peru is the world's No 2 copper producer. The agreement was reached at a meeting earlier on Thursday organized by the government in its most ambitious effort yet to try to unblock the road.

Prime Minister Mirtha Vasquez traveled to Chumbivilcas, the site of the disruption, and met with local residents and company executives.

Las Bambas, one of Peru's largest copper mines, suspended operations on Dec. 18 due to the blockade, which prevented the firm from transporting its copper production to a sea port.

"Las Bambas welcomes the commitment to dialogue of the representatives of the Chumbivilcas communities and recognises the effort of the national authorities ... to try to find better investment conditions," the miner said in a brief statement.

The suspension has caused a major problem for the country's leftist administration, which needs the miner's tax revenue but has also pledged to prioritise demands from marginalised communities.

"The communities commit to continue the dialogue in a climate of peace and social tranquility, without the use of force," the meeting minutes said.

The minutes also acknowledged that the government has yet to address the main demand from Chumbivilcas. The community wants Las Bambas to hire local residents to drive copper trucks and also give them cash contributions.

Those issues will be reviewed again in mid January, the minutes said.

Representatives for Chumbivilcas did not respond to requests for comment.

Chumbivilcas residents reached a similar agreement not to block the road used by Las Bambas in October, but then blocked the road regardless in November when negotiations stalled//CNA