Rio Tinto and First Quantum complete La Granja joint venture transaction
August 27 2023 - 6:38PM
Business Wire
Rio Tinto and First Quantum Minerals ("First Quantum") have
completed a transaction to form a joint venture that will work to
unlock the development of the La Granja project in Peru, one of the
largest undeveloped copper deposits in the world.
La Granja is a complex orebody located at high altitude in
Cajamarca, Northern Peru, that has the potential to be a large,
long-life operation, with a published Indicated and Inferred
Mineral Resource totalling 4.32 billion tonnes at 0.51%
copper1.
Following the completion of conditions including regulatory
approvals from the Government of Peru, First Quantum has acquired a
55% stake in the project for $105 million. It will invest up to a
further $546 million into the joint venture to sole fund capital
and operational costs to take the project through a feasibility
study and toward development. Upon completion of the sole funding
commitment, all subsequent expenditures will be applied on a
pro-rata basis according to the share ownership of the project.
As majority owner, First Quantum will now operate the La Granja
project with initial work focussed on completing the feasibility
study, as per the Transfer Agreement signed with the Government of
Peru.
Rio Tinto Copper Chief Executive Bold Baatar said: “Developing
La Granja would provide a significant new supply of copper and
further strengthen Rio Tinto’s portfolio of materials needed for
the energy transition. Our partnership with First Quantum will
bring our combined development capabilities and deep knowledge of
La Granja to progress the project.”
First Quantum Chief Executive Officer Tristan Pascall said: “La
Granja has the potential to be a large, long-life operation and
supply the copper that will be needed as the world transitions to
the greener economy and where responsible mining will be the only
acceptable way to produce metals. As operator, we will leverage our
core strengths in mine design, project development and community
engagement and look forward to developing our partnership with Rio
Tinto. We appreciate the support from the Government of Peru for
the completion of this transaction.”
Rio Tinto acquired the La Granja Project from the Government of
Peru in 2006 and carried out an extensive drilling programme that
significantly expanded the declared resource and understanding of
the orebody, and established partnerships with host communities,
local and national governments.
________________________
1 The Mineral Resources referred to in this release comprise 130
Mt at 0.85% Cu Indicated Mineral Resources and 4,190 Mt at 0.50% Cu
Inferred Mineral Resources. These Mineral Resources were reported
in Rio Tinto’s 2022 Annual Report released on 22 February 2023,
which is available at Annual Report (riotinto.com). The Competent
Person responsible for reporting these Mineral Resources is Joanna
Marshall, a Member of the Australasian Institute of Mining and
Metallurgy (MAusIMM). Rio Tinto is not aware of any new information
or data that materially affects these Mineral Resource estimates
and confirms that all material assumptions and technical parameters
underpinning the estimates continue to apply and have not
materially changed. The company confirms that the form and context
in which the Competent Person’s findings are presented have not
been materially modified. Mineral Resources are quoted in this
release on a 100 per cent basis.
This announcement is authorised for release to the market by
Steve Allen, Rio Tinto’s Group Company Secretary.
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