Rio Tinto sells 55% interest in La Granja copper project in Peru to First Quantum

Rio Tinto has sold 55 percent of its interest in the La Granja Copper Project in Peru, South America, to Canadian minerals company First Quantum.

The deal is valued at US$105m (£83.4m). The group says it will invest up to “an additional $546 million in the joint venture to fund capital and operating costs alone to advance the project through a feasibility study and into development.”

“Located high up in Cajamarca in northern Peru, La Granja has the potential to be a large, long-lived operation with a published total indicated and inferred mineral resource of 4.32 billion tonnes grading 0.51 percent copper,” adds Rio.

Rio Tinto has sold 55% of its interest in the La Granja copper project in Peru to First Quantum

Tristan Pascall, Chief Executive Officer of First Quantum, said: “La Granja has the potential to be a large, long-lived operation, supplying the copper needed as the world transitions to a greener economy and responsible mining becomes the only option .” way of producing metals.

“As an operator, we will leverage our core competencies in mine design, project development and community engagement and look forward to developing our partnership with Rio Tinto.”

“We appreciate the Peruvian government’s support in completing this transaction.”

Rio Tinto shares rose 1.3 percent in early afternoon trade on Tuesday.

Rio Tinto Copper, CEO of Bold Baatar, said: “The development of La Granja would enable a significant new copper supply and further strengthen Rio Tinto’s portfolio of materials needed for the energy transition.”

“Our partnership with First Quantum will bring our combined development capabilities and deep knowledge of La Granja to move the project forward.”

Earlier this month, Rio Tinto’s chief executive broke down in tears as he apologized to two whistleblowers who had raised concerns about wrongdoing at the company for years, according to a report in the Mail.

Jakob Stausholm, who has run the company since 2021, reportedly said that no one “ever deserves” to be victimized and “financially ruined” in the way Dr. Maurice Duffy, a longtime advisor to the company, and project manager Richard Bowley have done the FTSE 100 miner.

The leaked document contains a series of damning allegations of irregular payments, corruption and bullying in Rio over several years.