REG - Rio Tinto - Rio Tinto and First Quantum form La Granja JV

Rio TintoAnnouncement

29/08/2023 07:00

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RNS Number : 5444K  Rio Tinto PLC  29 August 2023

 

Notice to
ASX/LSE

 

Rio Tinto and First Quantum complete La Granja joint venture transaction

29 August 2023

 

 

Rio Tinto and First Quantum Minerals ("First Quantum") have completed a
transaction to form a joint venture that will work to unlock the development
of the La Granja project in Peru, one of the largest undeveloped copper
deposits in the world.

 

La Granja is a complex orebody located at high altitude in Cajamarca, 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% copper(( 1  (#_ftn1) )).

 

Following the completion of conditions including regulatory approvals from the
Government of Peru, First Quantum has acquired a 55% stake in the project for
$105 million. It will invest up to a further $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.

 

As majority owner, First Quantum will now operate the La Granja project with
initial work focussed on completing the feasibility study, as per the Transfer
Agreement signed with the Government of Peru.

 

Rio Tinto Copper Chief Executive Bold Baatar said: "Developing La Granja would
provide a significant new supply of copper and further strengthen Rio Tinto's
portfolio of materials needed for the energy transition. Our partnership with
First Quantum will bring our combined development capabilities and deep
knowledge of La Granja to progress the project."

 

First Quantum Chief Executive Officer Tristan Pascall said: "La Granja has the
potential to be a large, long-life operation and supply the copper that will
be needed as the world transitions to the greener economy and where
responsible mining will be the only acceptable way to produce metals. As
operator, we will leverage our core strengths in mine design, project
development and community engagement and look forward to developing our
partnership with Rio Tinto. We appreciate the support from the Government of
Peru for the completion of this transaction."

 

Rio Tinto acquired the La Granja Project from the Government of Peru in 2006
and carried out an extensive drilling programme that significantly expanded
the declared resource and understanding of the orebody, and established
partnerships with host communities, local and national governments.

 

 

Contacts

Please direct all enquiries to media.enquiries@riotinto.com

 

 

 

 Media Relations,        Media Relations,               Media Relations,
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                         Alyesha Anderson

                         M +61 434 868 118

 Investor Relations,     Investor Relations,
 United Kingdom          Australia

 
 

 Menno Sanderse          Tom Gallop

 M +44 7825 195 178      M +61 439 353 948

 David Ovington          Amar Jambaa

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 Laura Brooks

 M +44 7826 942 797

 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

 Registered in England   Registered in Australia

 No. 719885              ABN 96 004 458 404

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

 

 

 

 

 

 

 

 

 

riotinto.com

 

Category: General

 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 (
(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.riotinto.com%2Fen%2Finvest%2Freports%2Fannual-report&esheet=53371205&newsitemid=20230330005455&lan=en-US&anchor=Annual+Report+%28riotinto.com%29&index=2&md5=38f9b502c867aaa0a48aa206e9da5789)
riotinto.com (http://riotinto.com/) )
(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.riotinto.com%2Fen%2Finvest%2Freports%2Fannual-report&esheet=53371205&newsitemid=20230330005455&lan=en-US&anchor=Annual+Report+%28riotinto.com%29&index=2&md5=38f9b502c867aaa0a48aa206e9da5789)
. 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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