An auction for the $2 billion Michiquillay copper project in Peru attracted 10 interested companies Peru's government investment agency Proinversión said on Tuesday with Southern Copper Corp declared the winner.

Reuters reports Southern Copper Corp won the tender with a proposal to transfer $400 million to the government and pay 3% royalties. Southern Copper is controlled by conglomerate Grupo Mexico. Southern's chief executive told Reuters in September that Michiquillay has arsenic impurities, requiring a "slightly higher" investment to clean up the area.

According to Proinversión, the 10 companies that pre-registered for the tender include: Buenaventura, Southern Copper, local units of Rio Tinto, Teck Resources and Hudbay Minerals, as well as Compania Minera Milpo, a company controlled by Brazil's Votorontim. Milpo had offered $250 million in transfers and 1.875% royalties.

Buenaventura produced 127,000 tonnes of copper in 2016, mostly through its 20% stake in Freeport McMoRan's 500,000 tonnes per year Cerro Verde mine in the country. Its Yanacocha mine, another Newmont-Buenaventura joint venture, is seeking to produce more copper as its gold production diminishes. According to Proinversión, mineral resources at Michiquillay are estimated at 1.1 billion tonnes of copper with an average grade of 0.629% and a cut-off of 0.4% copper. The asset also holds gold, silver and molybdenum. (SOUND FAMILIAR?)

http://www.mining.com/rio-teck-hudbay-among-bidders-massive-peru-copper-project/