La Granja: A Generational Copper Project in Peru

Peru remains one of Latin America’s most important mining jurisdictions, with a mining investment pipeline of approximately USD $63 billion across 65 projects. Within that pipeline, few assets are attracting as much attention as La Granja, a major copper project located in the Cajamarca region of northern Peru.

The project is currently owned through a joint venture between First Quantum Minerals, which holds a 55% operating stake, and Rio Tinto, which retains 45%. First Quantum acquired its interest in 2023 and has since moved quickly to advance drilling, technical studies, and the project’s long-term development strategy.

La Granja is not just another large copper deposit. The latest NI 43-101 technical report confirms it as one of the most significant undeveloped copper resources in the world, with the potential to become a major long-life source of copper supply. This matters not only for Peru, but also for global copper markets at a time when demand from electrification, infrastructure, and the energy transition continues to rise.

This blog looks at why La Granja is attracting global attention, what the latest resource update tells us, how the project is being designed, and the key commercial, technical, and permitting challenges that still need to be addressed before it can move toward production.

Key Numbers at a Glance

• 23 million tonnes of contained copper in Measured and Indicated Resources 4.8 billion tonnes at 0.48% copper
• 20.7 million tonnes of additional copper in Inferred Resources 5.2 billion tonnes at 0.40% copper
• Approximately 500,000 tonnes per year of projected annual output at full production
• More than USD 2.4 billion in estimated development capex, based on a prior government estimate
• 370,000 metres drilled across 832 diamond drill holes

 Background: How First Quantum Entered the Project

La Granja has been known to the mining industry for decades. Rio Tinto held the asset for many years and completed extensive drilling and technical work, but the project’s size, mineralogy, and development complexity meant it never advanced into construction.

That changed in 2023 when First Quantum Minerals acquired a 55% operating interest in La Granja from Rio Tinto for USD $105 million. Looking back, the transaction now appears to be one of the more strategic copper acquisitions of recent years. First Quantum CEO Tristan Pascall later noted that, while the deal was not one of the largest in dollar terms, it was one of the largest in terms of copper in the ground over the past 10 to 20 years.

As part of the transaction, First Quantum also committed up to USD $546 million to advance the project through feasibility. Approximately USD $70 million has already been invested, supporting the intensive drilling program and technical studies behind the latest resource update.

The May 2026 Resource Update: Why It Matters

The updated mineral resource estimate, prepared to NI 43-101 standards as of December 31, 2025, provides the clearest picture to date of the scale of La Granja.

The Measured and Indicated Resource now stands at 4.831 billion tonnes at 0.48% copper, containing approximately 23 million tonnes of copper metal. The Inferred Resource adds a further 5.206 billion tonnes at 0.40% copper, representing another 20.7 million tonnes of contained copper.

Taken together, the copper endowment approaches 44 million tonnes.

That places La Granja second among all undeveloped copper projects globally in Measured and Indicated Resources, behind only Northern Dynasty’s Pebble project in Alaska. When compared against both undeveloped and producing assets, La Granja ranks behind only Kamoa-Kakula, Ivanhoe Mines’ major copper complex in the Democratic Republic of Congo.

Importantly, the deposit remains open at depth. First Quantum has also identified further exploration potential at the Paja Blanca and Mirador domains, meaning the resource could continue to grow.

A Key Technical Breakthrough: The Arsenic Question

One of the historic challenges at La Granja has been its mineralogy, particularly the presence of arsenic. For copper projects, arsenic can create issues around concentrate quality, processing, and marketability.

First Quantum has spent the past three years testing whether the arsenic was discrete rather than broadly disseminated through the orebody. The results appear to have validated the company’s view.

According to First Quantum, the arsenic can be managed through a conventional flotation flowsheet, without the need for highly complex or unusual processing technology. This is an important development because it removes one of the major technical concerns that had long surrounded the project.

Mine Design: Built for Long-Term Development

The current development concept is ambitious, but it also reflects a practical approach to some of the project’s most important logistical, environmental, and community-related challenges.

La Granja is located at elevations between 2,000 and 2,800 metres above sea level. By Andean standards, this is moderate, which provides certain advantages for logistics, workforce conditions, and long-term operations when compared with higher-altitude projects.

Open-Pit Mining

The project is expected to use conventional open-pit mining methods, including drill-and-blast, shovel loading, and off-highway truck haulage at the Paja Blanca and Mirador pits.

First Quantum also plans to use its proprietary Quantum Electra-Haul™ trolley-assist system, which is expected to reduce fuel consumption on ramps by more than 90%, from approximately 650 litres per hour to 60 litres per hour. The system is also expected to increase ramp speeds from 11 kilometres per hour to 22 kilometres per hour.

For a project of this scale, improvements in fuel efficiency, haulage speed, and operating costs could have a meaningful impact over the life of the mine.

7 Kilometre Pipeline Tunnel

One of the more distinctive features of the proposed mine design is the use of a 7 kilometre access tunnel and pipeline system.

Under the current concept, ore would be crushed and milled near the pit before being transported by pipeline through the tunnel to a coastal processing facility. This approach is intended to reduce the environmental footprint in the highland area and limit the amount of infrastructure required near more sensitive Andean ecosystems.

Desalinated Water Supply

Water is one of the most important issues for any major mining project in the region.

For La Granja, the primary water source is expected to be desalinated seawater from the Pacific coast. This is a deliberate design choice aimed at reducing pressure on local freshwater resources and addressing one of the key concerns that often arises in community and environmental discussions around large mining projects.

Coastal Processing Plant

The project also contemplates a coastal processing plant located on a flat, arid Pacific coastal plain approximately 100 kilometres from the mine site.

Flotation processing and tailings management would be located away from sensitive Andean watersheds and communities. This structure could help reduce certain environmental and social risks, although it will also require significant infrastructure, permitting, and execution discipline.

Copper Price Context

The pit optimization was modelled using a conservative copper price of USD$4 per pound.

With copper trading significantly above that level, the project’s economics may look stronger than the base case suggests. However, the ultimate investment decision will still depend on the feasibility study, permitting progress, capital costs, community engagement, and long-term market assumptions.

Project Timeline

August 2023 First Quantum acquires a 55% operating stake from Rio Tinto for USD 105 million. The joint venture is formally established, with First Quantum committing up to USD 546 million to advance the project.

2023–2025 An intensive drilling campaign is completed, with 370,000 metres drilled across 832 diamond holes. Geological confidence improves significantly, and First Quantum validates its technical view on arsenic management.

May 12, 2026 The updated NI 43-101 resource estimate is published. La Granja is confirmed as the world’s second-largest undeveloped copper resource, and further details are provided on the mine concept and water strategy.

2026–2028 Environmental and Social Impact Assessment baseline studies continue. Community engagement and permitting work remain central to the project’s next phase.

2028 Target First Quantum is targeting completion of the full feasibility study in 2028. This will be the key milestone before any formal investment decision can be considered.

Why the World Is Watching

La Granja is important because it sits at the intersection of two major trends shaping the global mining industry.

First, many of the world’s most productive copper mines are aging. Grades are declining, replacement projects are harder to find, and the pipeline of large, technically credible copper assets is limited.

Second, copper demand continues to grow as electrification, grid expansion, renewable energy, electric vehicles, and digital infrastructure continue to scale globally.

That combination makes large copper projects like La Granja increasingly strategic.

At a projected production rate of approximately 500,000 tonnes per year, La Granja could become a major contributor to Peru’s copper output. It would also strengthen Peru’s position as one of the world’s most important copper jurisdictions at a time when supply security is becoming a priority for governments, manufacturers, and investors.

Bottom Line

La Granja has just received its most important validation to date.

The updated resource confirms that the project belongs in a very small group of globally significant undeveloped copper assets. Its scale, ownership structure, water strategy, and development concept make it one of the most closely watched projects in Latin America.

That said, the project is still years away from a production decision. Permitting, community engagement, financing, and the full feasibility study all remain ahead.

But the direction is clear. First Quantum and Rio Tinto are advancing one of the most important copper assets in the world, and Peru has an opportunity to bring a generational copper project into its future mining pipeline.

The next key milestone is the feasibility study targeted for 2028. That is when the market will get a clearer view of whether La Granja can move from world-class resource to world-class mine.

Ax Legal helps industrial technology, engineering, and service companies to navigate the legal and commercial aspects of operating their business in Latin America. With deep knowledge of the industrial and natural resource sectors, we provide actionable and practical advice to help streamline our clients’ entries into Latin America, improve how they operate in the region, and to protect their interests.

Over the years, our team of legal and commercial advisors have developed a track record of working with companies of all sizes from Australia, Canada, the U.S., and Europe. The one common factor that connects our clients is that they are leaders in their field, providing innovative technologies and services to the industrial sectors.

To better understand how we can support you in the Region, please contact Cody Mcfarlane at cmm@ax.legal