Andina

Peru assesses 10 foreign firms' bids for Michiquillay mining project

Yanacocha is owned by Denver-based Newmont Mining Company

Yanacocha is owned by Denver-based Newmont Mining Company

15:27 | Lima, Nov. 6.

Ten firms —from Brazil, China, England and the United States— take part in Cajamarca-based Michiquillay mining project's bidding process, whose winner will be announced this December, Energy and Mines Minister Cayetana Aljovin informed Monday.

"Companies from China, the United States and England, as well as Milpo mining company [from Brazil] currently participate in this process," the minister told RPP local news station.

"There are 10 bidders, and the winner will be announced on December 20," she pointed out.

The cabinet member also recalled this project has a Social Fund worth close to US$130 million managed by Michiquillay and La Encañada peasant communities.

"The communities remain in contact with us and, constantly, ask about Michiquillay tendering process and its bidders. They want to be informed about the whole process," she noted.

Recipient communities

Aljovin affirmed communities understand the benefits of mining projects like Michiquillay. Therefore, they are awaiting its implementation.

It must be noted Michiquillay had been awarded to Anglo American company a few years ago. However, it was returned to the State as the firm did not move the project forward.

"The communities want this project to be implemented so they can benefit from the resulting mining canon," she stated.

According to some studies, Michiquillay is estimated to have an initial production of some 80,000 tons of copper per day, which means a US$2 billion investment.

About

Michiquillay is located in the Andes' eastern slope at 3,950 meters above sea level. The project area is inside properties belonging to Michiquillay and La Encañada peasant communities in North-Andean Cajamarca region.

(END) CNA/JJN/JAA/MVB

Published: 11/6/2017
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