The Private Investment Promotion Agency (Proinversión) awarded the development of the El Algarrobo mining project to Compañía de Minas Buenaventura for an amount of US$2,753 million. This amount is broken down into US$759 million of investment and US$1,994 million in operating expenses during the first 10 years.
After 90 days had elapsed since the declaration of interest and as no proposal had been submitted, the direct award corresponded to the proponent who will develop the project in the town of Tambogrande, in Piura.
The event will be held under the modality of Mining Concession Transfer Option Contract, by the state company Activos Mineros SAC, in compliance with the provisions of article 165 of the General Mining Law (Supreme Decree No. 014-92 -EM).
The process followed a rigorous scheme based on the regulations of Legislative Decree No. 1362, which regulates the Promotion of Private Investment through Public-Private Partnerships and Asset Projects. In this sense, it has favorable statements from the Ministry of Energy and Mines and the Ministry of Economy and Finance.
The Minister of Energy and Mines, Jorge Luis Montero, and the executive director of Proinversión, José Salardi, participated in the award ceremony.
The project
El Algarrobo is a polymetallic project that contemplates the extraction of copper, zinc and silver that would initially reach a production of 5 thousand tons per day, a capacity that will increase to 15 thousand, which will be determined, exactly, with the feasibility studies.
The first stage of the project will prioritize social management with the linked community, focusing on reaching agreements for the execution of a water project. Then, we will proceed with exploration, preparation of bankable feasibility studies, environmental impact and construction engineering, corresponding to the commercial stage of the project. And it will conclude with engineering planning for mine closure at the end of operations, ensuring the rehabilitation of the affected area.
The project will contribute to the economic reactivation of the region, especially in the agricultural sector, and will strengthen Peru’s position in the world mining ranking. In this case, the formation of Participatory Monitoring Committees is planned, made up of local representatives, who will supervise environmental aspects (water quality) and communicate the monitoring results to the community.
Impact
The Algarrobo includes the creation of a social fund to manage the contributions derived from the contractual commitments assumed by the investor. These funds will be used to implement social programs to benefit the communities within the area of influence.
Likewise, income from canons and royalties will increase the budgets of subnational governments, with special attention to areas of direct influence.
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