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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,
United Kingdom Australia Americas
Matthew Klar Matt Chambers Simon Letendre
M +44 7796 630 637 M +61 433 525 739 M +1 514 796 4973
David Outhwaite Jesse Riseborough Malika Cherry
M +44 7787 597 493 M +61 436 653 412 M +1 418 592 7293
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
M +44 7920 010 978 M +61 472 865 948
Laura Brooks
M +44 7826 942 797
Rio Tinto plc Rio Tinto Limited
6 St James's Square Level 43, 120 Collins Street
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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