Company News

UPDATE 1-Peru to auction rights to Michiquillay copper project this year

(Adds comment from Proinversion about projects next year, context on Michiquillay)

LIMA, Jan 26 (Reuters) - Peru plans to award the rights to develop the Michiquillay copper deposit in a public tender this year, one of 16 public-private projects worth $4 billion that it intends to auction in 2017, the head of the state bidding agency said on Thursday.

In 2018, some fifteen projects that would cost up to $10.35 billion will be tendered, including a new commuter train line in the city of Lima, said Alvaro Quijandria, the new chief of Proinversion.

London-based miner Anglo American Plc returned its contract for operating Michiquillay to Peru in late 2014 due to capital constraints. The company had estimated that it would produce some 200,000 tonnes of copper per year.

Peruvian polymetallic miner Milpo said in 2015 that it would like to develop Michiquillay. Proinversion said several companies have expressed interest in the project. (Reporting by Mitra Taj; Editing by Jeffrey Benkoe)