Teck Resources may raise value of Zafranal project in Peru to more than $2 bln

Mitsubishi Materials

29/09/2022 24:05

LIMA, Sept 28 (Reuters) - Canada's Teck Resources is
considering revising the value of its Zafranal copper project in
Peru to more than $2 billion from $1.3 billion, one of its
executives said Wednesday.
    The initial value of the project was set in 2019, when
copper prices were below their current levels, the general
manager of Zafranal Mining Co, Mario Baeza, said at a conference
on Peru's mining industry.
    "We are updating capex and project numbers," Baeza said,
adding that the value of the project could be raised to "more
than $2 billion."
        Teck Resources  TECKb.TO  owns an 80% stake in Zafranal
and Japanese firm Mitsubishi Materials Corp  5711.T  holds the
remaining 20%.
    The project is waiting on approval of an environmental
study.
    Baeza said he expects the Peruvian government to approve the
environmental impact study by the end of 2022 or "at the latest"
in the first quarter of next year.
    Construction could start at the end of 2024 and would take
three years, he added.
    The facility is expected to produce at least 1.5 million
tonnes of copper over about 19 years, Baeza said.
 (Reporting by Marco Aquino; editing by Richard Pullin)
 ((Valentine.Hilaire@thomsonreuters.com;))