South American project Southern Copper has won the bidding process for the Michiquillay copper project in Peru. The company proposed a price of $400 million in the tender.
The Michiquillay mine has mineral resources of 1.15 billion tonnes and a copper grade of 0.63%. The project is to produce 225,000 tonnes of copper per year. The investment is expected to be worth about $2.5 billion, according to data released by Southern Copper.
"Michiquillay will start production in 2025 to become one of the largest copper mines in Peru," the company said in a statement.
Southern Copper is listed on the New York Stock Exchange and the Lima Stock Exchange. Grupo Mexico owns a 88.9% stake in the company. Southern Copper says it operates mining units and metallurgical facilities in Mexico and Peru, and performs exploration activities in Mexico, Argentina, Chile, Ecuador and Peru.