Southern Copper wins bid for Peru's Michiquillay copper mine | S&P Global Market Intelligence 2021/07/02, 19)46

20 Feb, 2018 | 22:16

Southern Copper wins bid for

Peru's Michiquillay copper
mine
! 

Author Sarah Mughal

Theme Metals

Grupo México SAB de CV-owned Southern Copper Corp. won a tender to develop the
Michiquillay copper mine in Peru, Reuters reported Feb. 20.

Southern Copper's proposal included the transfer of US$400 million to the

government and the payment of 3% royalties, beating Cía. Minera Milpo SAA's offer
of US$250 million in transfers and 1.875% in royalties.

About half of the transfer payment will go to a fund dedicated to social projects in
the Cajamarca area, said Alberto Ñecco, director of state investment agency
Proinversion.

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Southern Copper wins bid for Peru's Michiquillay copper mine | S&P Global Market Intelligence 2021/07/02, 19)46

The government-led auction attracted only two bidders. Eight of the 10 companies
that submitted pre-registration documents pulled out of the bidding, including local
affiliates of Rio Tinto and Teck Resources Ltd., and Peru's Cia. de Minas
Buenaventura SAA.

In December 2014, Anglo American Plc withdrew from the project, saying the
prospective development of Michiquillay would be better served by different
ownership.

Proinversion estimates that Michiquillay will require about US$2 billion worth of
investments to develop the project's 1.16 billion tonnes of copper resources.

The government is planning to auction 15 projects that would cost US$10.35 billion
this year, according to the investment agency.

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