Mining companies Southern Copper Corp. and Anglo American are considering joining together to develop the Quellaveco copper project in southern Peru, according to a report in newspaper Gestion.
The $3.0 billion project is currently 82 percent owned by Anglo American, which has struggled to develop the deposit.
For several years, Anglo American has faced local opposition to the development of Quellaveco. It recently signed an agreement with local residents and politicians that will help it develop the project.
However the recent fall in copper prices has resulted in the company taking another look at its plans forthe development.
Southern Copper’s Chief Executive Officer, Oscar Gonzalez Rocha, in Arequipa for the Perumin convention last week, said that his company has long been interested in developing Quellaveco, which is located near some of Southern Copper’s mines in southern Peru.
“Now they [Anglo American] are reviewing their projects and they are interested in negotiating with us to do a joint venture and development the Quellaveco project together,” Gonzalez Rocha said.
“We have 50 years operating in this area. We have a railroad and machinery that could reduce their costs,” he added.
Southern Copper to invest $7.1 billion in mining projects
Speaking at the mining convention, Gonzalez Rocha also said that Southern Copper plans to invest $7.1 billion between now and 2016 in expanding and developing its own mining projects in Arequipa and Moquegua.
Investment is to be made in expansions at the Toquepala mine, upgrading operations at Cuajone , the Ilo 3 power station, and Los Chancas in Apurimac.
The company is also looking again at the large Tia Maria project, postponed in 2011 following violent protests in Islay and the Tambo valley that led to three dead and at least 50 people injured. Since then opposition to the project has diminished, Gonzalez Rocha said, and the company will present the environmental impact study before the end of this year.