Rio Tinto, First Quantum make JV agreement for Peru copper mine

Mining giants Rio Tinto and First Quantum Minerals have entered into a joint venture to develop the La Granja copper project in Peru. First Quantum has acquired a 55% stake in the project by paying $105 million to Rio Tinto and will be the operator. As part of the deal, First Quantum has committed to investing up to $546 million into the project, with a portion of the funds allocated to completing a feasibility study over the next two to three years. La Granja is considered one of the world’s largest undeveloped copper deposits, with significant potential for expansion.

Located at an altitude of 2,000 to 2,800 meters in northern Peru’s Cajamara province, the La Granja project is a complex undertaking. Previous reserve estimates indicate significant copper resources, with 4.32 billion tonnes of indicated and inferred mineral resources at a grade of 0.51% copper. The development of La Granja aligns with the growing demand for copper as the world transitions to a greener economy and increases its reliance on clean energy technologies.

Tristan Pascall, CEO of First Quantum, highlighted the project’s potential to be a large, long-life operation that could contribute to the global supply of copper for the energy transition. Rio Tinto’s Copper Division CEO, Bold Baatar, echoed this sentiment, emphasizing that La Granja’s development would further strengthen Rio Tinto’s materials portfolio for the energy transition.

Rio Tinto originally acquired the La Granja Project from the Peruvian government in 2006 and subsequently conducted extensive drilling to expand the understanding of the orebody. The joint venture signifies a strategic move for both companies to tap into the growing demand for copper in the context of global efforts to reduce carbon emissions and promote sustainable technologies.

Elevate your business with QU4TRO PRO!

Gain access to comprehensive analysis, in-depth reports and market trends.

Interested in learning more?

Sign up for Top Insights Today

Top Insights Today delivers the latest insights straight to your inbox.

You will get daily industry insights on

Oil & Gas, Rare Earths & Commodities, Mining & Metals, EVs & Battery Technology, ESG & Renewable Energy, AI & Semiconductors, Aerospace & Defense, Sanctions & Regulation, Business & Politics.

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

Australian lithium developer Liontown’s board favors Albemarle’s $4.3 billion offer

Shares of Australia’s Liontown Resources have surged 11.5% after the lithium developer’s board endorsed a renewed AUD 6.6 billion ($4.3 billion) bid from Albemarle Corp, the world’s largest producer of the battery material. Emerging Australian lithium companies have been attracting buyouts as their lower valuations and cash requirements entice top lithium producers and others looking to secure supplies.

China initiates new naval exercises near Taiwan

China has initiated military drills near Taiwan in what it calls a “serious warning” to separatist forces, responding to Taiwan’s Vice President William Lai’s recent visit to the United States. This move exacerbates the longstanding tensions between China and Taiwan, as China views Taiwan as its own territory and has consistently opposed any moves toward independence.

China cuts one-year benchmark lending rate by 10 basis points

China’s central bank, the People’s Bank of China (PBOC), has reduced its one-year benchmark lending rate by 10 basis points to 3.45% as part of efforts to stimulate credit demand. However, in a surprise move, the PBOC decided to keep the five-year lending rate unchanged at 4.20%. This decision comes against a backdrop of concerns about the rapid weakening of China’s currency, the yuan.

Stay informed

error: Content is protected !!