Peru's Zafranal awaits construction permits for copper project

Minera Zafranal said it is waiting for the surface rights and construction permits for its US$1.26bn Zafranal copper project in southern Peru’s Arequipa region.

“This month, we started our detailed engineering, which we'll use to update the project's total cost. We'll continue with our processes to obtain all surface rights on time,” said Gisella Lombardi, Zafranal's interim CEO, at the Expomina 2024 event in Lima. 

Zafranal obtained the environmental impact statement for the project in May 2023.

According to the executive, Zafranal is also working on a contract with the company Tisur – operator of the Matarani port in Arequipa – for the storage and export of minerals. Matarani is also used by companies such as Las Bambas, Antapaccay and Hudbay, which operate in the so-called Southern Peru Mining Corridor.

“Another important point is that we need approval for the mining concession, which is the main construction permit to begin this stage. The idea is to request final approval from our investors next year to start production in 2029,” Lombardi added. Zafranal is owned by Canada’s Teck Resources (80%) and Japan’s Mitsubishi Materials Corporation.

THE PROJECT

Zafranal is an open-pit copper project with a useful life put at 19 years. According to the company, its Zafranal and Victoria pits have 440.7Mt of probable and proven reserves grading 0.38% copper.

The mine is expected to produce around 128,000t/y during the first five years and average 76,000t/y throughout its life. Its concentration plant will have capacity to process 65,000t/d.

The deposit is located in a desert area far from communities and will use brackish water from the Majes Pampa aquifer, which is not suitable for human consumption.