Anglo American pulls out of Peruvian copper project

Mining giant Anglo American is pulling out of a copper exploration project in Peru.

Anglo said its wholly owned subsidiary Anglo American Michiquillay (AAM) had notified the Peruvian government to terminate a 2007 privatisation agreement, which will result in AAM returning the scheme to Activos Mineros SAC.

Anglo said its drive to focus on specific areas and to target its capital to drive greater returns meant that prospects to develop Michiquillay would be improved under different ownership.

Anglo American said it was continuing to progress its Quellaveco copper project in southern Peru and was targeting submission of that project to its board in 2015.

Shares fell 20.5p or 1.6% to 1262.5p at 15:46 in London.