Rio Tinto PLC Partnership to progress La Granja copper project (8617U)
March 31 2023 - 1:00AM
UK Regulatory
TIDMRIO
RNS Number : 8617U
Rio Tinto PLC
31 March 2023
Notice to ASX/LSE
Rio Tinto and First Quantum Minerals partner to progress the La
Granja copper project in Peru
30 March 2023
Rio Tinto and First Quantum Minerals ("First Quantum") have
entered into an agreement to form a joint venture that will work to
unlock the development of the La Granja copper project in Peru, one
of the largest undeveloped copper deposits in the world.
La Granja is a complex orebody located at high altitude in
Cajamara, Northern Peru, that has the potential to be a large,
long-life operation, with a published Indicated and Inferred
Mineral Resource totalling 4.32 billion tonnes at 0.51 percent
copper ([1]) . The joint venture will bring together the combined
knowledge, expertise and resources of Rio Tinto and First Quantum
Minerals to progress the project.
Under the proposed transaction, First Quantum will acquire a 55%
stake in the project for $105 million, and commit to further invest
up to $546 million into the joint venture to sole fund capital and
operational costs to take the project through a feasibility study
and toward development. Upon completion of the sole funding
commitment, all subsequent expenditures will be applied on a
pro-rata basis according to the share ownership of the project.
The transaction is expected to complete by the end of Q3 2023,
subject to the satisfaction of regulatory approvals. As majority
owner, First Quantum will then operate the La Granja project with
initial work focussed on completing the feasibility study.
Rio Tinto acquired the La Granja Project from the Government of
Peru in 2006 and has since carried out an extensive drilling
program that significantly expanded the declared resource and
understanding of the orebody, and established partnerships with
host communities, local and national governments.
Rio Tinto Copper Chief Executive Bold Baatar said: "La Granja is
an exciting but complex project that has the potential to be a
significant new source of the copper that is needed for the energy
transition. We are pleased to enter into this agreement with First
Quantum, that will bring our combined development capabilities and
deep knowledge of La Granja to progress the project.
"This partnership underscores not only La Granja's potential to
be a significant copper producer, but Peru's position as one of the
world's most important mining investment destinations. Developing
La Granja would also further strengthen Rio Tinto's copper
portfolio following the acquisition of Turquoise Hill Resources and
commencement of underground mining at Oyu Tolgoi in Mongolia."
First Quantum Chief Executive Officer, Tristan Pascall said. "I
am very pleased to announce today's partnership with Rio Tinto, a
global leader in the mining industry. Rio Tinto's work on La Granja
has been extensive to date and we share our partner's view that the
project has the potential to be a Tier 1 copper mine. We look
forward to working together to build on this foundation, leveraging
First Quantum's core strengths in mine design, project development
and community engagement to progress La Granja to the next stage.
First Quantum is excited about broadening our existing
relationships in Peru and we are appreciative of the support
provided by the Government of Peru to this important partnership
for its future major investment in the country."
Rio Tinto and FQM have also entered into a memorandum of
understanding for strategic cooperation globally in copper and
other base metals exploration and project development, as well as
for sharing information and technical know-how around best-in-class
mining, processing, and decarbonisation.
Contacts
Please direct all enquiries to media.enquiries@riotinto.com
Media Relations, United Media Relations, Australia Media Relations,
Kingdom Americas
Matt Chambers
Matthew Klar M +61 433 525 739 Simon Letendre
M +44 7796 630 637 M +1 514 796 4973
Jesse Riseborough
David Outhwaite M +61 436 653 412 Malika Cherry
M +44 7787 597 493 M +1 418 592 7293
Alyesha Anderson
M +61 434 868 118
Investor Relations, United Investor Relations, Australia
Kingdom
Tom Gallop
Menno Sanderse M +61 439 353 948
M +44 7825 195 178
Amar Jambaa
David Ovington M +61 472 865 948
M +44 7920 010 978
Clare Peever
M +44 7788 967 877
Rio Tinto plc Rio Tinto Limited
6 St James's Square Level 43, 120 Collins Street
London SW1Y 4AD Melbourne 3000
United Kingdom Australia
T +44 20 7781 2000 T +61 3 9283 3333
Registered in England Registered in Australia
No. 719885 ABN 96 004 458 404
This announcement is authorised for release to the market by
Steve Allen, Rio Tinto's Group Company Secretary.
riotinto.com
[1] The Mineral Resources referred to in this release comprise
130 Mt at 0.85% Cu Indicated Mineral Resources and 4,190 Mt at
0.50% Cu Inferred Mineral Resources. These Mineral Resources were
reported in Rio Tinto's 2022 Annual Report released on 22 February
2023, which is available at Annual Report (riotinto.com) . The
Competent Person responsible for reporting these Mineral Resources
is Joanna Marshall, a Member of the Australasian Institute of
Mining and Metallurgy (MAusIMM). Rio Tinto is not aware of any new
information or data that materially affects these Mineral Resource
estimates and confirms that all material assumptions and technical
parameters underpinning the estimates continue to apply and have
not materially changed. The company confirms that the form and
context in which the Competent Person's findings are presented have
not been materially modified. Mineral Resources are quoted in this
release on a 100 per cent basis.
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