LIMA, April 11 (Reuters) -

A road blockade on a key Peruvian transport route is halting

truck traffic but has not yet hit operations at the Andean

country's major Las Bambas copper mine, a source close to the

miner told Reuters on Thursday.

The mine, owned by China's MMG Ltd ( MMLTF ), faces a fresh

protest by local communities demanding greater benefits from the

copper mine, a major producer in a country that ranks among the

world's top suppliers of the red metal.

Residents of Velille, in Cusco's Chumbivilcas province, have

resumed a blockade that began over a week ago after a meeting

with company representatives failed to provide a solution.

"There is still no impact on production operations, but

if the blockade persists for a long time the situation could

change," the source said, adding the protest has paralyzed the

flow of trucks carrying minerals through the country's so-called

"mining corridor" to the coast for export.

"An alternate route is being used for the supply of

inputs for the mine operation," the source said.

Las Bambas offered the Velille community a voluntary sum

of 1.15 million soles ($312,925) for 2024/25, plus technical

assistance for development projects, but the community is

calling for an annual sum of 2 million soles, the source said.

The source said two other communities, one in Cusco and

another in the Aprurimac region, have accepted the offer.

Las Bambas has faced frequent stoppages due to protests

by poor communities demanding more benefits from the nearby

mines. Since launching operations in 2016, the mine counts

around 600 days of stoppages.

Last year, the mine nevertheless produced 302,039 metric

tons of copper, up from 254,838 tons in 2022, according to

government data. It typically supplies around 2% of global

copper supplies and is one of the top producers in Peru.

($1 = 3.6750 soles)