The mining giant Rio Tinto and the Canadian group First Quantum Minerals will form a joint venture to develop the La Granja copper project in Peru, announced the British-Australian company.
First Quantum will buy a 55% stake in the project for US$105 million and will commit to invest up to US$546 million in the joint venture.
According to the Peruvian government’s portfolio of mining projects, La Granja, located in the northern region of Cajamarca, is expected to benefit from an investment of US$5,000 million.
Rio Tinto had acquired the La Granja project from the Peruvian government in 2006.
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First Quantum will operate the La Granja project and initially work to complete a feasibility study, Rio Tinto said.
The Canadian company also owns the Haquira copper deposit in southern Peru, which it purchased in 2010.
Former First Quantum chief executive Philip Pascall said in 2019 that the miner was looking for strategic partners to develop new copper projects and that a partnership with Rio Tinto in Peru could be considered.
The two companies also signed a memorandum of understanding for global strategic cooperation in the exploration of copper and other base metals.
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