- First Quantum Minerals (FM) and Rio Tinto will form a joint venture to develop the La Granja copper project in Peru
- The Canadian miner will buy a 55 per cent stake in the project, for a consideration of $105 million and will become its operator
- La Granja is one of the largest undeveloped copper resources in the world with a published Inferred mineral resource of 4.32 billion tonnes at 0.51 percent copper
- First Quantum Minerals Ltd. (FM) opened trading at C$30.92
First Quantum Minerals (FM) and Rio Tinto will form a joint venture to develop the La Granja copper project in Peru.
The Canadian miner will buy a 55 per cent stake in the project, for a consideration of $105 million and will become its operator.
Located in the district of Querocoto in the northern region of Cajamarca, Peru, the project lies 90 km northeast of Chiclayo, the capital of Lambayeque region, at an altitude of between 2,000 and 2,800 meters.
La Granja is one of the largest undeveloped copper resources in the world with a published Inferred mineral resource of 4.32 billion tonnes at 0.51 per cent copper and potential for substantial expansion. Rio Tinto has operated the Project since 2006, carrying out an extensive drilling program that has significantly expanded the resource.
First Quantum will undertake the feasibility study and possible further development.
First Quantum’s Chief Executive Officer, Tristan Pascall praised Rio Tinto’s work on La Granja, saying it has been extensive to date and he shares his partner’s view that the project has the potential to be a Tier 1 copper mine.
“This partnership will provide First Quantum access to an attractive copper project, offering additional future optionality in the Company’s project pipeline while we focus on strengthening the balance sheet in the interim.”
Rio Tinto Copper’s Chief Executive Officer, Bold Baatar added that La Granja is an exciting but complex project that has the potential to be a significant new source of the copper that is needed for the energy transition.
“We are pleased to enter into this agreement with First Quantum, that will bring our combined development capabilities and deep knowledge of La Granja to progress the project,” he said. “This partnership underscores not only La Granja’s potential to be a significant copper producer, but Peru’s position as one of the world’s most important mining investment destinations.”
First Quantum Minerals’ principal activities include mineral exploration, mine engineering and construction, development, and mining operations. The firm produces copper in concentrate, copper anode, copper cathode, nickel, gold, zinc, silver, acid, and pyrite. It has operating mines located in Zambia, Finland, Turkey, Spain, and Mauritania. The firm’s projects include Guelb Moghrein, Sentinel, Kansanshi, Cobre Panama, Pyhasalmi, and Ravensthorpe, among others. Substantial revenue is generated from Cobre Panamá.
First Quantum Minerals Ltd. (FM) opened trading at C$30.92.