REG - Rio Tinto - Partnership to progress La Granja copper project

Rio TintoAnnouncement

31/03/2023 07:00

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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  (#_ftn1) )). 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

 

 

 

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 Rio Tinto plc           Rio Tinto Limited

 
 

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 London SW1Y 4AD         Melbourne 3000

 United Kingdom          Australia

 T +44 20 7781 2000      T +61 3 9283 3333

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This announcement is authorised for release to the market by Steve Allen, Rio
Tinto's Group Company Secretary.

 

 

 

riotinto.com

 1  (#_ftnref1) 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)
(https://www.riotinto.com/en/invest/reports/annual-report) . 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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