Peru’s government plans to launch a tender to build the Algarrobo copper mining project in the third quarter this year, according to information from the Peruvian Private Investment Promotion Agency (ProInversión).

 

The project, which will require an investment of $350mn, will be developed under a Public-Private Partnership (PPP). Proinversión did not disclose further details about the project’s financials.

 

The copper project, which is located in Tambo Grande District, in Northern Peru, will involve exploration and mining operation through an underground mine and processing mineralized deposits. It will also incorporate the design and implementation of infrastructure projects focused on supplying water for the communities.

 

Peru’s copper production is expected to reach 2.3mn mt tonnes in 2020, a year when the Toquepala mining project is expected to reach its maximum production capacity, according to figures from a report Peru by BBVA Research.

 

Copper production increased 1.1pc to 2.2mn mt tonnes between January and November 2019, due to a better performance of mining companies such as the Compañía Minera Antamina S.A, and Southern Perú Copper Corporation, who ramped up operations at the Toquepala expansion project.

 

The mining industry is one of the most important economic activities in Peru, which represents about 9pc of GDP and 60pc of the country’s exports. Copper and Gold are the most important metals exported by value.

 

 

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