Peru miner eyeing Michiquillay copper project

Peruvian zinc-silver miner Milpo is interested in developing Michiquillay, one of the country's largest untapped copper-gold deposits, a senior government official said.

Milpo, a unit of Brazil's Votorantim, has contacted ProInversión, the state agency in charge of promoting private investment, energy and mines minister Rosa María Ortiz said. Lima-based Milpo is also developing the Magistral and Pukaqaqa copper projects in Peru.

"Milpo has presented ProInversión with a private initiative which is moving along," Ortiz told Lima-based Radioprogramas. "That means investment seeks to move ahead."

Anglo American pulled out of the US$700mn Michiquillay project, in Cajamarca region, in December after having explored the deposit since 2007. Michiquillay, which has reserves of 544Mt of 0.69% copper, 0.5g/t gold and 4g/t silver, could produce 225,000t/y copper, according to ProInversión.

Milpo CEO Victor Gobitz did not immediately return a telephone call seeking comment.

Michiquillay is part of Peru's US$64bn mining investment portfolio over the next decade. The Peruvian mining industry has invested US$34bn since President Ollanta Humala's government took office in 2011, Ortiz said.

Peru is the world's third largest copper producer,

The government is working to speed up permitting and resolve social conflicts that have held up projects such as Newmont Mining's US$4.8bn Minas Conga copper-gold deposit and Southern Copper's US$1.4bn Tía María copper-silver mine, Ortiz said. Slumping metals prices have delayed other mines such as Anglo American's US$3.3bn Quellaveco copper project, she said.

"In some cases, there are factors unrelated to the government such as company decisions not to invest, and in other cases they are due to conflicts such as Tía María or Conga," Ortiz said. "All this is occurring in an international context where prices have fallen."

Humala is scheduled to step down in July 2016 following general elections in April.