Rio Tinto has formed a joint venture with First Quantum Minerals to develop the La Granja project in Peru, one of the world’s largest undeveloped copper deposits.
According to Rio Tinto, the La Granja project is a complex orebody in Cajamarca, Northern Peru, with the potential to be a significant, long-life operation and a published Indicated and Inferred Mineral Resource reaching 4.32 billion tonnes at 0.51% copper.
First Quantum has acquired a 55% stake in the project for $105 million after obtaining regulatory approvals from the Government of Peru. The company plans to invest up to $546 million to fund capital and operational costs for feasibility study and development. Subsequent expenditures will be pro-rata based on the project’s share ownership after the sole funding commitment.
Under the Transfer Agreement agreed with the Government of Peru, First Quantum will now operate the La Granja project as the primary owner, with initial activity focused on completing the feasibility study.
“Developing La Granja would provide a significant new supply of copper and further strengthen Rio Tinto’s portfolio of materials needed for the energy transition. Our partnership with First Quantum will bring our combined development capabilities and deep knowledge of La Granja to progress the project,” Rio Tinto Copper Chief Executive Bold Baatar said.
First Quantum CEO Tristan Pascall commented, “La Granja has the potential to be a large, long-life operation and supply the copper that will be needed as the world transitions to the greener economy and where responsible mining will be the only acceptable way to produce metals. As operator, we will leverage our core strengths in mine design, project development and community engagement and look forward to developing our partnership with Rio Tinto. We appreciate the support from the Government of Peru for the completion of this transaction.”
Rio Tinto acquired the La Granja Project from the Government of Peru in 2006 and embarked on an extensive drilling program that significantly increased the declared resource and understanding of the orebody and established partnerships with host communities and local and national governments.
