The transnationals red river and First Quantum Minerals Ltd. completed the transaction announced last March to continue with the next stage of the La Granja copper project, in Cajamarca, which includes the completion of the feasibility study and work with the community in the next 2 or 3 years.
In this way, First Quantum Minerals Ltd. takes over 55% of La Granja, a copper mine called to be one of the largest still unexploited in the world, in exchange for US$105 million, and will have to invest US$546 additions as part of the “seed funding”.
A portion of this initial funding will be used to complete the feasibility studies, and the remainder will be used for the construction of the mine itself, assuming the results are positive.
When the US$546 million is used up, the subsequent expenses will be borne by both companies according to their level of participation in La Granja.
The feasibility study will be aimed at updating the model of reserves and geological resources present in La Granja, in addition to additional metallurgical evaluations to establish the optimal processing configurations for the copper that is extracted.
Studies are also planned to certify the associated infrastructure requirements and logistics routes for the transport and subsequent commercialization of the red metal.
La Granja: Rio Tinto and First Quantum partner
Rio Tinto acquired La Granja in 2006 and undertook a lengthy drilling program that significantly expanded declared resources and reservoir knowledge, and established partnerships with host communities and local and national governments.
La Granja is a complex deposit located in Cajamarca that has the potential to be a “large and long-lived” copper operation, according to Rio Tinto. It maintains an inferred mineral resource of 4.320 million tons and potential for expansion.
The project, which now involves the investments of First Quantum, is called to be one of the largest in Peru’s mining portfolio, with some US$5 billion in total investment, according to the Ministry of Economy and Finance (MEF).
Source: Larepublica
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