Rio and First Quantum seal partnership over La Granja

British-Australian mining giant Rio Tinto said its La Granja copper project in Peru is one step closer to development after the completion of a joint venture transaction with First Quantum Minerals.

The joint venture, first announced back in March, has seen First Quantum acquire a 55% stake in the project for $105m.

First Quantum will now operate the project and initially focus on finishing a feasibility study.

La Granja, based in Cajamarca, Northern Peru, is said to be a long-life operations with an indicated and inferred mineral resource of 4.32bn tonnes at 0.51 copper.

Rio Tinto first purchased La Granja from the Peruvian government back in 2006, and has since carried out an "extensive drilling program" that expanded estimated resources and the understanding of the project's orebody.

Bold Baatar, the chief executive of Rio's copper division, said: "Developing La Granja would provide a significant new supply of copper and further strengthen Rio Tinto's portfolio of materials needed for the energy transition. Our partnership with First Quantum will bring our combined development capabilities and deep knowledge of La Granja to progress the project."

Under the agreement, First Quantum will invest a further $546m into the joint venture to sole fund capital and operational costs.