Buenaventura to Advance $2.7bn Mine Project With Water Deal in Peru

Wedoany.com Report-Mar 30, Peruvian miner Buenaventura Mining Company has signed a concession contract with Peruvian Government agency ProInversión for the El Algarrobo hydro-mining project in Piura, Peru.

The operating expenses for the project could amount to $2.75bn (10.05bn new sol) in ten years.

ProInversión awarded the El Algarrobo project to Buenaventura in December 2024.

The concession contract aims to address the water needs of the Locuto community in Tambogrande within the Piura district before developing an underground polymetallic mining operation for copper, zinc and silver.

Tambogrande has historically struggled with a low Human Development Index and a lack of water resources for consumption and agriculture.

The project will support agricultural activities in the area while promoting sustainable development in the Piura region.

The company is now focused on establishing a social agreement with the local community in the initial phase and conducting mining exploration subsequently.

The construction phase of the project is set to start with an investment of around $480m, potentially escalating to $759m with further capital injections.

Over a ten-year production period, the operating expenses for the project could amount to $2.75bn.

Buenaventura Business Development and Marketing vice-president Aldo Massa said: “We are guided by the principle of water first, mine second.

“Thanks to El Algarrobo’s water-based approach, we seek to strengthen local agriculture and improve the quality of life for thousands of families in Piura who currently lack an adequate supply of drinking water, before the start of mining activities.”

The project’s first phase is already under way. Concurrently, technical research will assess the water potential in the region to design solutions for water supply, agriculture and livestock support.

Mining exploration for the underground mine, adhering to top technical and environmental practices, will only commence after a social licence has been secured and the water project phase has been finalised.

In March 2024, Buenaventura secured the final operating permit for its Yumpag mine in Peru.