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A recent addition to Peru’s mining legacy

Anglo American today has one of the most compelling growth profiles in the industry, with considerable optionality, across a truly diversified mix of metals and minerals, which are the essential products needed for a cleaner, greener world, and cater to the consumer demands of the world’s fast-growing population.

Central to that volume growth, our Quellaveco copper project will boost our supply of one of the modern world’s most needed energy transition metals.

Quellaveco expects to deliver around 300,000 tonnes per annum of copper on average in the first ten years of operation.

The energy transition

From April 2023, our new Quellaveco copper mine was supplied with 100% renewable electricity, transforming our exposure to copper, a metal critical to economic development and implementing the energy transition.

Key highlights

36 years
of mine life
300,000-
330,000 tonnes
Production guidance for 2024
300,000 tonnes
per year of copper equivalent in the first ten years of operation

Working with Peruvian communities

Key to the success of any mining activity is the sustainable support of local host communities.

In 2011, we began an 18-month consultation where Peruvian stakeholders from 31 local authorities and institutions, alongside representatives of the Moquegua community, gathered with us to define how Quellaveco could best contribute to the long-term sustainable development of Moquegua, agreeing on 26 detailed and specific commitments relating to water management, environmental care and social investment.

Quellaveco will use water from the Titire river that is unsuitable for human consumption or agricultural use, due to its volcanic origins, complemented by excess rainwater that we will collect, the majority of which will be shared with the communities, thereby increasing their water availability.

Supporting social programmes

For some time, we have supported social programmes and initiatives in the area, including our own Moquegua Emerge enterprise programme, helping more than 1156 local entrepreneurs to scale their own businesses. This programme is a partnership with the Inter-American Development Bank and the current phase focuses on improving market access for labour and goods/services based on interventions that build capacity in local public and private actors.

By now, we have carried out over 20 capacity building programs for over 9000 participants to increase employability and technical growth opportunities in the mining sector and various economic sectors.

We are also planning to invest 25 million Peruvian Soles to make the technical-educational institute José Carlos Mariátegui, the Centre of Excellence in Peru.

Since 2011, the Quellaveco Fund, a 10 million US dollars trust which funds sustainable development projects, has financed 48 local community projects focussed on areas such as education, health, nutrition and agriculture, improving the lives of more than 26,500 people in the Moquegua region.

As part of this work, more than 20 entrepreneurial networks have been set-up to sell agricultural products, such as avocado and oregano; olive producers from Ilo Valley have increased their incomes by 65%; and water optimisation techniques introduced in Omate have helped grow grape vine yields by three tonnes per hectare, a 60% increase.

New partnership that will help to bring our Purpose to life in the region

In November 2021, we launched the ‘Moquegua Crece’ Collaborative Regional Development (CRD)  programme alongside our key platform partners – Regional Government of Moquegua, Mitsubishi Corporation, M.C. Inversiones Perú (MCIP), and the International Finance Corporation IFC, a member of the World Bank Group, and supported by Engie and Forest Trends.  Moquegua Crece (Moquegua Grows) is a new private/public partnership in the region where our Quellaveco copper project is based.

The partnership was set up to create sustainable and inclusive development initiatives that can help our community in Moquegua to realise the full potential of their region - and help us to bring our Purpose to life.

The partnership is already working with local governments to strengthen the public investment process and improve services and infrastructure for communities in the region and collaborates with the Regional Government on the 2030 Regional Development Plan, which incorporates the voices of the population in the identification of development priorities.

Moquegua Crece also aims at generating employment and income by strengthening and developing value chains with high potential in the region, such as agriculture and aquaculture, and it encourages the use of sustainable renewable resources. As part of our partnership with Forest Trends, Moquegua Crece supports initiatives to improve natural infrastructure in the region, aiming at enhancing water quality and availability.

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