EL ALGARROBO PROJECT WILL PRIORITIZE SOCIAL MANAGEMENT AND THE WATER SOLUTION IN FAVOR OF AGRICULTUR
Lima, October 11, 2024.- El Algarrobo project will prioritize social management and the water solution in favor of agriculture for the Community of Locuto, in the district of Tambogrande (Piura) where this subway mining initiative will be developed, explained the Project Director of the Private Investment Promotion Agency - PROINVERSIÓN, Rogger Inicio.
At a press conference held in the city of Piura, the PROINVERSIÓN official ruled out that the mining project will not affect agriculture in the area and, rather, emphasized that it will allow, as a priority, the development of technical studies on the water problem that has been dragging the area of influence for decades and thus define alternative solutions that will favor the farmers on the left bank of the Piura River under a social framework agreement with the Rural Community of Locuto.
“Before initiating any mining exploration studies, we will first try to solve the water problem in the Locuto Community,” Incio stressed.
He reported that El Algarrobo Project also considers the establishment of a social fund that will manage the contributions derived from the contractual commitments assumed by the investor, since the signing of the social agreement. These funds will be used for the execution of social programs for the benefit of Locuto and the population centers in the area of influence.
Likewise, the income generated by the canon and royalties will increase the budgets of subnational governments, with special emphasis on the area of direct influence.
PROINVERSIÓN's project director recalled that the district of Tambogrande is one of the poorest in Peru and, in this sense, El Algarrobo project will offer an opportunity for decent employment and sustainable development for the new generations in the area of influence, improving their living conditions and achieving better basic education and health services.
El Algarrobo will contribute significantly to the economic reactivation of the region, boosting the agricultural sector and strengthening Peru's position in the world mining ranking.
About El Algarrobo, he indicated that it is a polymetallic copper, zinc and silver underground project, which will begin with a production of 5,000 tons per day and will then increase to 15,000 tons per day, without affecting agriculture in the area. The project was declared of interest last September 28, with an estimated investment of $ 759 million and a total project value of US$ 2,753 million.
After the declaration of interest, the companies interested in the project may express their expression of interest before PROINVERSIÓN within 90 calendar days. If there are no third parties interested in the execution of the project, PROINVERSIÓN will proceed - in accordance with current regulations - with the direct award of the project in favor of the proponent company, Compañía de Minas Buenaventura.
Source: Press Release – PROINVERSIÓN