Anglo American is pleased to announce that it has been awarded the Michiquillay copper project in Peru following its successful tender in the privatization process. A purchase price of $403 million will be paid by Anglo American to the Peruvian government, staged over the first five years of the project.
Half of this payment will be allocated to a trust fund for the development and benefit of the local communities. This bid structure provides a welcome opportunity to substantially improve the lives of those living in the region and Anglo American looks forward to playing a meaningful role in such development.
Michiquillay is a large, advanced exploration project located in Cajamarca State in northern Peru, a highly prospective mineral district which already hosts a number of mines. Anglo American believes that there is significant additional exploration potential associated with this deposit.
The Michiquillay Project will enhance Anglo American’s major portfolio of copper projects already under evaluation. Quellaveco, also in Peru, is well advanced and the feasibility study is expected to be completed in the first half of 2008. These two opportunities in Peru are complementary and underline Anglo American’s confidence in Peru and its mining industry.
Cynthia Carroll, CEO of Anglo American plc said “Michiquillay is one of the best undeveloped copper prospects in the world with significant upside potential. Anglo American has extensive experience in Latin America where we have operated for many decades and we are excited by this opportunity to expand our activities in Peru.
Anglo American is committed to the highest international standards for community relations, environmental protection and health and safety and we are very pleased to be able to bring these skills and experience to Michiquillay. Anglo American will engage with the local communities as soon as possible in order to establish a good working relationship, whereafter we can begin our exploration work with a view to developing this exciting mining project.”
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