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Southern Copper Corporation wins tender for Peru Michiquillay copper project

Southern Copper Corporation has emerged as the winner of a tender for a Peruvian mine valued at $2 billion.

SCC won a tender to develop the Michiquillay copper mine in Peru with a proposal to transfer $400 million to the Peruvian government as well as 3% royalties.

The Michiquillay mine, located in the La Encañada district in Peru, will require around $2billion to develop according to the government.

According to the Peruvian government, no more than 10 different mining operators had presented pre-registration documents to bid for the mine.

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These included Compania de Minas Buenaventura SAA , Southern Copper Corp Rio Tinto PLC unit Rio Tinto Western Holdings Ltd, Teck Resources Ltd unit Teck Perú S.A., Hudbay Minerals Inc (NYSE: HBM - news) unit Hudbay Peru, and Compania Minera Milpo SAA

The Michiquillay mine is estimated to hold around 1.159 billion tonnes in copper resources.

Southern Copper Corporation is a copper operator based in Peru, which has a poprtfolio of the highest copper reserves in the mining industry.