The Michiquillay copper project will place this mine in the top 20 largest copper mines in the world.
Southern Copper Corp was the company declared as the winner of the Michiquillay copper project last Tuesday, said Mining yesterday.
This is the first time the Peruvian government auctions the Michiquillay copper project.
“According to a statement by Southern Copper, controlled by conglomerate Grupo Mexico won the tender with a proposal to transfer $400 million to the government and pay 3% royalties.”, the website wrote.
To Southern Copper this is “indisputably a world-class mining project”, referring to its location in the country’s northern region of Cajamarca and to estimations done by the Peruvian investment agency Proinversión.
The amount of copper that is estimated to be produced yearly is of 225,000 tons, as well as by-products, such as molybdenum, gold, and silver. The mine life is expected to be of more than 25 years.
“Michiquillay will start production in 2025 to become one of the largest copper mines in Peru, the company said”, according to Mining, who adds that this will place the mine in the top 20 largest copper mines in the world.
Southern Copper Corp is currently the world’s fifth largest mining company with a market value of $38.8 billion dollars.