Miner First Quantum Minerals FM-T expects updated drilling results for its Peru copper project La Granja in the second half of next year, and feasibility studies by 2028, project development manager Steven Lewis said on Thursday.
“The drilling is progressing well, it’s at 35%, and we expect to have the results in the second half of next year,” Lewis said on the sidelines of a mining industry conference.
About the feasibility studies slated for completion by 2028, he said: “We’re working to meet this deadline.”
First Quantum last year purchased a 55% stake in the project, which is co-owned with Rio Tinto, and at the time of the acquisition committed to investing up to $546 million for its development.
The project overall is estimated to amount to $2.4 billion investment.
According to data from Peru’s mining ministry, the site has the potential to produce 500,000 metric tons of copper a year, with a useful life of 40 years.
In addition to completing drilling and feasibility studies, First Quantum will also face challenges related to local communities, environmental permits and financing, Lewis said.
“La Granja has the potential to be a larger project, but the ultimate focus will depend on several challenges,” Lewis said in a presentation at the mining event.
First Quantum took a major blow last year after the Panama government ordered the shutdown of the Cobre Panama mine, which contributed to 40% of the miner’s revenue, due to public protests over environmental issues.