Peru"s government on Tuesday failed to host a planned meeting between MMG Ltd"s (1208.HK) Las Bambas copper mine and a local community that has been blocking the road used by the firm to transport its metal for 25 days, threatening a complete production halt. The meeting on Tuesday had been proposed by the government as a last-minute bid to avoid a temporary shutdown at Las Bambas, which has been progressively winding down production because it cannot get supplies into the mine or its copper out onto a seaport. But a leader of the local community of Chumbivilcas told Reuters on Monday that the latest company proposal, which includes paying 100,000 soles ($24,700) annually per community was a "joke" in comparison to the 700,000 soles other communities received. He previously warned the community would boycott the Tuesday meeting if demands were not met. A person familiar with the situation confirmed to Reuters that the meeting did not take place. Shares of China"s MMG fell almost 10% on Monday on the uncertainty of whether Las Bambas will be able to resume normal operations or face a shutdown. The company has said it will have to fully suspend operations this week if no solution is found to lift the blockade. Peru is the world"s No. 2 copper producer and Las Bambas is one of its largest mines, accounting for 2% of global supply of the red metal. The dirt road used by Las Bambas which goes through the Chumbivilcas province has become a flashpoint of social unrest since the mine began operations in 2016, with residents alleging the dust from trucks pollutes their crops and that they do not receive enough economic compensation from the mine. The Chumbivilcas province has been blocking the road demanding jobs and higher economic contributions from Las Bambas since Nov. 20. Earlier on Tuesday, the government said in a letter to Chumbivilcas leaders seen by Reuters that it had sent the latest proposal for a meeting to Las Bambas and was awaiting a response. "We will be calling a meeting as soon as possible," the letter read, without specifying when. Reporting by Marcelo Rochabrun; Editing by Aurora Ellis Our Standards: The Thomson Reuters Trust Principles.