Peru to auction $2 billion Michiquillay copper project in November

The Michiquillay project is located in the country’s northern Cajamarca region which already hosts a number of mines. (Screenshot from Peru Libertad | YouTube.)

Peru has set a date for auctioning the rights to develop the proposed Michiquillay copper mine, located in the country’s northern Cajamarca region, a highly prospective mineral district that already hosts a number of mines.

The $2 billion project, which is projected to process close to 80,000 tonnes of copper ore a day, will be awarded on Nov. 15, state bidding agency Proinversión said in a statement (in Spanish).

The $2 billion project is expected to process close to 80,000 tonnes of copper ore a day.

The asset used to belong to Anglo American (LON:AAL), but the mining giant pulled out of the project in late 2014 due to capital constraints.

Milpo, controlled by Brazil’s Votorantim Metals, later evaluated the project. But the miner withdrew from Michiquillay in March this year after Proinversión asked Milpo to modify its proposal for the mine’s development.

At the time, the company said the proposed changes were not compatible with market conditions.

According to Proinversión, mineral resources at Michiquillay are estimated at 1,159 million tonnes of copper with an average grade of 0.629% and a cut-off of 0.4% copper. The asset also holds gold, silver and molybdenum

Peru is the world’s No.2 copper producer and mining accounts for about 60% of its export earnings.