First Quantum hits back at ESG report on “blocked” La Granja

First Quantum Minerals (TSX: FM) has pushed back against claims that its La Granja copper project in northern Peru is stalled due to public opposition, calling the allegations outdated and misleading.

The comments come in response to a study by GEM Mining Consulting, which suggests the project remains “blocked by public distrust.” First Quantum responded this week, stating La Granja is progressing “decisively and transparently” under strict environmental, social, and governance (ESG) standards.

The company noted that GEM’s study relies on community opposition sources that are nearly two decades old and no longer reflect the current state of the project or its relationship with local stakeholders.

La Granja, a joint venture between First Quantum (55%) and Rio Tinto (45%), sits in the district of Querocoto, Cajamarca. The project entered a new development phase in September 2023, focusing on advanced exploration and in-depth technical and socio-environmental studies. With an inferred mineral resource of 4.32 billion tonnes at 0.51% copper and room for further expansion, the site is viewed as a major copper asset.

First Quantum highlighted ongoing regulatory inspections by Peruvian authorities, none of which have identified non-compliance. It also cited its participatory environmental monitoring program, which includes local community representatives.

ESIA in the works

The miner described its relationship with surrounding communities as strong, pointing to local employment, use of regional suppliers, and a permanent community information office in Querocoto. 

According to First Quantum, perception studies show that a majority of residents view La Granja favourably and consider it a key driver of regional development.

Support from local, regional and national authorities further reinforces the project’s strategic importance to Peru’s economy, the company added.

The miner said part of its $546 million initial funding is being invested in an Environmental and Social Impact Assessment (ESIA), which is expected to be completed in the next two years.

“La Granja is a model of responsible mining where agriculture, livestock, and mining coexist harmoniously,” First Quantum said. “Far from being ‘blocked,’ the project continues to advance, grounded in dialogue, trust, and environmental stewardship.”