Six prequalify for Kingsmill acid plant bidding

Wednesday, November 14, 2007

Peru's mining ministry reported that six parties have prequalified for the bidding to construct the Kingsmill acid water treatment plant to resolve environmental liabilities near the Yauli and Mantaro rivers.

The prequalified bidders are Peruvian engineering firms BISA, CESEL and GyM, the Chilean branch of Canada's Hatch, and two consortiums: one made up of Peru's COSAPI and the US branch of French company Veolia, and another between Earth Tech de México and Canadian Environmental and Metallurgical.

The ministry will accept official bids starting December 12 and open them January 21, 2008, with the first construction work set to start in the first quarter of next year, it said in a statement.

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Vancouverite Peru Copper (PCR), the owner of the Toromocho copper project, recently presented a feasibility study for the Kingsmill plant and agreed to donate US$24.1mn to build the operation.

The endeavor aims to clean up acid runoff from mining into the Yauli and Mataro rivers in Junín department that has been a serious problem for decades as a result of activities linked to the La Oroya polymetallic smelter.

The pollution first started when the Cerro de Pasco copper corporation owned La Oroya and in 1934 finished building the Kingsmill tunnel as an annex to it. Today, US company Doe Run owns La Oroya.