La Granja copper project : Rio Tinto, First Quantum Minerals forge $651m JV
Rio Tinto and First Quantum Minerals have finalized a joint venture to expedite the development of the La Granja copper project in Peru. The venture comes at a time when the demand for copper is surging due to its pivotal role in green technologies and the global energy transition. This joint venture aims to unlock the immense potential of La Granja, located in Northern Peru’s high-altitude region of Cajamarca, recognized as one of the world’s largest undeveloped copper deposits.
First Quantum Minerals Acquires Majority Stake Following Government of Peru’s Approval
After securing the essential regulatory approvals from the Government of Peru, First Quantum Minerals has now become the majority owner by purchasing a 55% stake in the La Granja Copper Project for $105 million. In addition to this, the company will infuse up to $546 million to singularly cover capital and operational costs. This funding will support the project through the crucial feasibility study phase and towards ultimate development. The transaction underscores the significant investment both companies are making in this potentially game-changing copper resource.
La Granja Copper Project Holds Promising Reserves
La Granja boasts an impressive Indicated and Inferred Mineral Resource totalling 4.32 billion tonnes with a copper grade of 0.51%. The project’s abundant copper reserves underline its potential to be a long-life operation that could significantly impact the global copper supply chain. Copper is a critical component in various green technologies, making La Granja’s potential role in the energy transition more prominent.
First Quantum Minerals to Spearhead Initial Development
As the majority owner and the operating partner, First Quantum Minerals will focus initially on completing the feasibility study, as stipulated in the Transfer Agreement signed with the Government of Peru. Both Rio Tinto and First Quantum Minerals will collaborate closely to leverage their combined expertise and capabilities in mining development.
Executives Speak on the La Granja Copper Project JV
Rio Tinto Copper Chief Executive, Bold Baatar, emphasized the project’s importance, stating that developing the La Granja Copper Project would bring a “significant new supply of copper” and enrich Rio Tinto’s material portfolio needed for the energy transition. On the other hand, Tristan Pascall, First Quantum Chief Executive Officer, mentioned that La Granja will “supply the copper that will be needed as the world transitions to a greener economy.”
Historical Backdrop of the La Granja Copper Project
Rio Tinto originally acquired the La Granja Copper Project from the Government of Peru in 2006. Since then, the company has conducted an extensive drilling program that considerably expanded the known resource and developed partnerships with local communities and governments. The new joint venture with First Quantum aims to build upon this foundational work to bring the project to fruition.
The completion of this joint venture between Rio Tinto and First Quantum Minerals to develop La Granja is a monumental step in boosting the global copper supply, thereby fortifying its pivotal role in the world’s transition to green energy.