Andina

Peru: Over US$2.5 bn to be invested in Michiquillay mining project

18:50 | Lima, Jun. 12.

Peru's Energy-Mines Ministry (MEM) and Southern Copper Corporation on Tuesday signed the concession agreement of Michiquillay mining project, which entails an investment of more than US$2.5 billion.

"For Peru, it is essential to promote mining investment, as it will allow us, as a country, to use underground resources in order to generate wealth on the surface; and that is our goal," MEM head Francisco Ismodes expressed.

On behalf of the Peruvian State, Activos Mineros granted relevant licenses to Southern Copper Corporation with the purpose of executing the Michiquillay project, a mining deposit located between Michiquillay and La Encañada peasant communities in North-Andean Cajamarca region.

"The Government intends to closely follow up on this investment initiative and will emphasize the efforts to be undertaken in coordination with the company and the population," he noted.

A milestone

According to the cabinet member, Michiquillay's bidding process is regarded as a milestone for the mining sector and Cajamarca region, since it is the first mega mining project awarded in the last seven years.

"The implementation of this mega mining project will generate greater revenue and better development opportunities in Michiquillay and La Encañada peasant communities, as well as in Cajamarca region and the country (in general)," Ismodes pointed out.

As is known, Southern Copper Corporation won the bidding process on February 20 by presenting a US$400 million transfer price, and higher royalty payments (3%).

The concession agreement was signed by Energy and Mines Minister Francisco Ismodes, Private Investment Promotion Agency (ProInversion) Executive-Director Alberto Ñecco, Activos Mineros General Manager Antonio Montenegro, and Southern Copper Corporation CEO Oscar Gonzalez Rocha.

(END) RGP/JJN/JAA/MVB

Published: 6/12/2018