TORONTO (miningweekly.com) – Multinational miner Anglo American on Friday said it would withdraw from the Michiquillay copper project, in Peru, citing the current economic environment as a key driver to prioritise its capital to drive greater returns.
The LSE-listed company said it had given notice to the government of Peru to terminate the 2007 privatisation agreement, which would result in it withdrawing from the exploration-phase Michiquillay project.
Under the terms of the 2007 privatisation agreement, Anglo American Michiquillay had started the appropriate legal processes to return the project to Activos Mineros SAC.
Anglo explained that its drive to focus on specific areas and target its capital to drive greater returns meant that prospects to develop Michiquillay would be improved under different ownership.
“While Michiquillay represents an attractive copper deposit, we have made the decision to withdraw [from the project] following a comprehensive evaluation of the potential of our long-dated project options. We have reduced the capital required to sustain projects during the pre-approval phases of their development as we focus the portfolio and prioritise our capital on the projects and assets that offer the greatest source of potential value to us, over the short and long term,” Anglo’s base metals and minerals business CEO, Duncan Wanblad, said.
Anglo American was continuing to progress its Quellaveco copper project in southern Peru and was targeting submission of that project to its board in 2015.