After completing feasibility studies last year, Jinzhao Mining Peru is now focused on optimising the Pampa de Pongo project. The iron complex that is located near Arequipa and was acquired in 2009 will require an investment of at least $1,500 million, including related infrastructure, including a long overland  conveyor and the port, announced its CEO, Tang Xiaohuan in a recent interview. Tang said that since the project was acquired, the company has invested $80 million in its progress and expects to begin production in late 2016. Pampa de Pongo includes, in addition to the operation of the mine, the construction and use of a port terminal on the coast at Sombrerillo in Arequipa, province of Caravelí.

This port terminal will be used to ship the iron concentrate obtained from the mine to various parts of the world. “We do not concentrate only in China, we will sell to other countries depending on market needs,” he said. “The exploration phase, which was completed in 2012, determined the existence of 3,500 Mt of iron with a little copper and gold content.”

Now Jinzhao Mining expects to achieve in the first phase of production at between 10 and 11 Mt/y of iron, which in turn could be expanded to between 20 and 22 Mt/y at a later stage. The current design of the project gives an estimated lifetime of 30 years.

“We believe this is one of the largest deposits of iron ore in Latin America,” Tang said. Jinzhao Mining expects later this year the approval of the environmental impact assessment (EIA), which would be presented in the second half of the year. Meanwhile, the Chinese company is already doing social work and projects in the area, Tang explained.