{"id":733464,"date":"2018-05-31T19:05:12","date_gmt":"2018-05-31T19:05:12","guid":{"rendered":"http:\/\/juniorminingnews.com\/?p=733464"},"modified":"2018-05-31T19:05:12","modified_gmt":"2018-05-31T19:05:12","slug":"perus-buenaventura-seeks-deal-with-southern-on-copper-project-2","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=733464","title":{"rendered":"Peru’s Buenaventura seeks deal with Southern on copper project"},"content":{"rendered":"

By Reuters<\/a><\/span> <\/p>\n

LIMA, May 30 (Reuters) \u2013 Peruvian precious metals miner Buenaventura said Southern Copper Corp is evaluating its proposal to jointly develop Southern’s $2 billion copper project Michiquillay, Buenaventura’s chief executive told Reuters on Wednesday.<\/p>\n

“They were receptive \u2026 but it’s up to them to evaluate the preliminary proposal,” Victor Gobitz said in an interview at the International Gold & Silver Symposium in Lima, Peru.<\/p>\n

The two companies jointly own the Coimolache mining company in Peru, and are both junior partners in large mines in Peru controlled by U.S.-based companies.<\/p>\n

Buenaventura believes it is well-positioned to help develop the copper project because it already operates a large open-pit gold mine in the same northern Andean region where Southern will develop Michiquillay.<\/p>\n

Southern, controlled by Grupo Mexico, operates mines in southern Peru and Mexico.<\/p>\n

“Our logic is that there would be synergies,” Gobitz said. “You create more value.”<\/p>\n

Southern was not immediately available for comment but when the deal first became public last month said it was evaluating Buenaventura’s proposal.<\/p>\n

But the two companies building a major new mine together might also make Michiquillay a target for local opposition, according to an industry source.<\/p>\n

The project might require lengthy negotiations to resettle communities in the Andes, where obtaining a so-called social license can be one of the biggest hurdles to mining investments.<\/p>\n

Buenaventura and Southern were both forced to halt plans to build mining projects in Peru following deadly protests by activists and farmers worried about environmental impacts. <\/q>Buenaventura and Southern were both forced to halt plans to build mining projects in Peru following deadly protests by activists and farmers worried about environmental impacts. Southern suspended its $1.2 billion Tia Maria project in 2015. Newmont Mining Corp’s $4.8 billion gold and copper Conga project, which Buenaventura owns a 43.7 percent stake in, has been shelved since 2011.<\/p>\n

Gobitz said Buenaventura owed it to shareholders to create a business model that paves a path to the eventual construction of Conga. “It’s part of my mandate,” Gobitz said.<\/p>\n

Southern has said it hopes the government of the country’s new president, Martin Vizcarra, will issue a construction permit for Tia Maria this year.<\/p>\n

But reviving Tia Maria or Conga this year, when opposing the projects could become a platform for anti-mining candidates in regional elections, might be difficult.<\/p>\n

Gobitz added that Buenaventura has been implementing an “ambitious” plan to cut costs to trim debt as fuel prices rise.<\/p>\n

“This year we want to be more rigorous and critical before venturing into an investment\u2026with disciplined control of capital expenditure,” Gobitz said.<\/p>\n

New projects should deliver a return on investments of at least 15 percent, Gobitz said.<\/p>\n

The company expects its production of gold and silver to rise 8 percent this year, thanks in part to its mine Tambomayo, Gobitz said.<\/p>\n

(Reporting by Teresa Cespedes; Writing by Mitra Taj; Editing by Lisa Shumaker<\/em>)<\/p>\n

The post Peru’s Buenaventura seeks deal with Southern on copper project<\/a> appeared first on MINING.com<\/a>.<\/p>\n

…read more<\/a> <\/p>\n

From:: Mining.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By Reuters LIMA, May 30 (Reuters) \u2013 Peruvian precious metals miner Buenaventura said Southern Copper Corp is evaluating its proposal to jointly develop Southern’s $2 billion copper project Michiquillay, Buenaventura’s chief executive told Reuters on Wednesday. “They were receptive \u2026 but it’s up to them to evaluate the preliminary proposal,” Victor Gobitz said in an […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[369],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/733464"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=733464"}],"version-history":[{"count":0,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/733464\/revisions"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=733464"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=733464"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=733464"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}