In October, Pacasmayo created subsidiary Fosfatos del Pacífico (Fospac) to handle the development of the Bayóvar deposits. Pacasmayo will hold 14.2mn shares in Fospac, and compatriot Cementos Selva will have 1,000 shares, Pacasmayo said in a statement.
The company official could not provide further details on the status of the projects or when prefeasibility work could wrap up.
Fospac will focus on all types of metallic and non-metallic mining activities - including prospecting, exploration, producing, processing, transporting and marketing minerals - as well as the production and sale of fertilizers and chemical products in general, and production and sale of construction materials, said Pacasmayo.
The deposits Pacasmayo won in the Bayóvar process - which also included a large phosphate deposit acquired by Brazil's Vale (NYSE: VALE) - are the Calcáreos calcium carbonate deposit and Diatomitas non-metallic minerals deposit.
The October 2007 privatization deal says Pacasmayo must enter production at the deposits within five years of the contract date and produce at a rate of at least 40,000t/y at Calcáreos. The cement company agreed to pay a total US$250,000 plus taxes, including US$150,000 upon signing the contract and US$25,000 in each of the four years thereafter.
Cementos Pacasmayo posted a 70.6mn-sol (US$24.1mn) consolidated net profit for 2008, up from 17.2mn soles.