Arequipa puts US$1,263 million investment in Zafranal at risk

The Regional Government of Arequipa (GRA) published a statement that begins the process to cancel the usufruct of 12,207 hectares in favor of the Zafranal mining company. In this extensive area, between the provinces of Castilla and Caylloma, said company plans to exploit copper deposits.

The decision of the Arequipa institution, through its attached unit Majes Autonomous Authority (Autodema), would bring down an investment of US$1,263 million, which was even contemplated within the Con Punche Peru reactivation program. A source close to the mining operation has affirmed that with this decision Zafranal is unsustainable. The land removed by the GRA represents 85% of the project: there is all the fundamental component.

The Canadian and Japanese capital initiative has its project in the final part of the evaluation of its Environmental Impact Study (EIA), in charge of Sineace. It planned to start construction of the mine next year.

The transfer of land for the project was approved during the administration of the previous governor Kimmerlee Gutierrez. However, an internal control report from Autodema warns of defects. For example, they question the duration of the usufruct (30 years, if the project will last 19 years), the validity of the appraisal and the price at which the land was delivered, among others.

Zafranal pointed out that it complied with all the requirements for signing the contract. Regarding the initiation of the annulment process, he informed that he has submitted, within the term granted, the corresponding defenses that support the non-existence of grounds for annulment.

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Copper. Zafranal was one of the nine prioritized projects to be unlocked by the Executive, along with San Gabriel, Toromocho, Yumpaq, among others.

sinkhole With 440.7 million tons in reserves, It was estimated that, during the Zafranal operation, Arequipa’s GDP would increase by up to 6.6%.