The board of directors of the Anglo American company approved the development of the world-class copper project Quellaveco, in southern Peru last week.
According to information from Gestión, Mark Cutifani, executive director of Anglo American, said that Quellaveco is one of the “largest and most attractive in the world” undeveloped copper deposits.
“We expect Quellaveco to generate a real Internal Rate of Return (IRR) after the tax exceeding 15%, with a four-year amortization”, said Cutifani to the media.
He also added that the company sees significant potential to expand Quellaveco beyond its current 30-year reserve and to increase the initial capacity of 127,500 tons per day.
“After several years of extensive preparatory work, we are very pleased to develop the project together with our Mitsubishi partners, and we are grateful for the strong support we have received from our host communities and nationally,” he said, according to Gestión.
In addition, Cutifani believes that Quellaveco could provide significant opportunities and sustainable benefits to the people who work in the mine, as well as business partners, the surrounding region (Moquegua) and Peru as a whole, in the coming decades.
The development phase of the project will begin after the completion of the transaction, announced in June 2018, through which Mitsubishi Corporation will increase its stake in Anglo American Quellaveco SA, owner of the Quellaveco project, to 40%.
The company expects to start copper production in 2022, increasing to total production by 2023.