Construction expected to begin at 3 major Peruvian mines this year

Peru's energy and mines ministry (Minem) expects works on three major greenfield mining projects – Tía María, Zafranal and Pampa de Pongo – to begin in 2025, with the associated investments in the initiatives forecast to exceed US$5bn.

Minem, now headed by newly appointed minister Jorge Montero, expects construction work to begin on two copper mines and one iron ore development this year, with the goal being to start operations at all three within the next two or three years.

BNamericas looks at the projects' current progress and Montero's statements on them.

Tía María

Tía María is a copper project in the Arequipa region of southern Peru. Southern Copper has budgeted US$210mn for works this year and Montero has said that construction is expected to start in August or September.

"The project is progressing very well in terms of social issues and engagement… they have made sound decisions regarding environmental matters and I believe they will start without delay," Montero said in an interview with Peru's institute of mining engineers.

According to Southern Copper's latest earnings presentation, the company has already begun preliminary work, including delimiting the perimeter of the concession, and it plans to start building roads and access points shortly. 

The total cost of Tía María is estimated at US$1.8bn, with a projected operational lifespan of 20 years and expected copper output of 120,000t/y.

Zafranal

Zafranal, an open-pit copper development owned by Teck Resources, is also preparing to begin construction now that significant progress has been made to overcome various obstacles.

"There was an issue related to water use that they managed to resolve, and they have presented a solid proposal for utilizing the aquifer. They will be able to use it without any negative impact," Montero said.

Zafranal, also in Arequipa region, is currently advancing with its detailed engineering phase and could be ready for a final investment decision in the second half of 2025. The project involves capex of US$1.26bn, has an estimated mine life of 19 years and is expected to begin production late 2028 or early 2029.

Pampa de Pongo

Pampa de Pongo, an iron and copper project in Ica region being developed by China's Jinzhao Mining, is also showing promising progress. 

"The project is very advanced. They will source water from a desalination plant, which is an excellent decision," said Montero.

According to Minem, Pampa de Pongo's capex is estimated at US$1.78bn, with construction scheduled to take place between this year and 2028. 

The mine is expected to operate for 21.5 years. In phase 1, it is forecast to produce 3.33Mt/y of iron and 5,700t/y of copper, ramping up to 7.13Mt/y of iron and 12,800t/y of copper in phase 2 and then 10.8Mt/y of iron and 18,909t/y of copper in phase 3.