Investment in La Granja mining project grows to more than US$ 2,400 million

AMSAC statement

April 4, 2023

This is an automated translation of the press release issued in Spanish

The public company Activos Mineros SAC (AMSAC) signed with Río Tinto the addendum to the transfer contract for the La Granja mining project, located in the district of Querocoto, province of Chota (Cajamarca). PROINVERSIÓN , Rio Tinto Western Holdings Limited and First Quantum Minerals Ltd participated as interveners.

The general manager of AMSAC, Antonio Montenegro, stated that initially the investment cost of the La Granja project (Capex) amounted to approximately US$2,000 million, but with the signed addendum, the investment exceeds US$2,400 million, becoming a project of world class.

Prior to signing the addendum, Rio Tinto reported the agreement reached with First Quantum Minerals Ltd. for the latter to acquire a stake in the project as a strategic partner and carry out the feasibility study. In this way, the continuity of the project is ensured and its execution is guaranteed.

The executive director of ProInversión, José Salardi , pointed out that the signing of the addendum is very important because investment in the mining sector is increased, which is very necessary today. "With this, Peru continues to guarantee its future, because it will result in an increase in mining production, an increase in exports and higher income for the country," he added.

As part of the agreements for the subscription of the addendum, Río Tinto paid the sum of US$16.3 million, of which 50% (about US$8 million) will be allocated to the La Granja Social Fund, which will directly benefit and indirectly to the surrounding communities.

It should be remembered that in 2006 PROINVERSIÓN, through a process to promote private investment, awarded the La Granja project to the Rio Tinto mining company. With the incorporation of First Quatum, the operating and capital costs of the feasibility study and development of the project will be jointly financed.

The signing of the addendum was in charge of the executive director of PROINVERSIÓN, José Salardi; the general manager of AMSAC, Antonio Montenegro; the general manager of Rio Tinto, María Alejandra Delgado; the manager of South America Corporate Affairs of First Quantum, Jorge Benavides; and the representative of Rio Tinto Western Holdings Limited, Miguel Grau.