HBIS Resources will work with Zhongrong Xinda to develop the Pampa de Pongo mine

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Pampa de Pongo mine is scheduled to commence operations in 2023. (Credit: Bishnu Sarangi/Pixabay)

China’s steelmaker HBIS Group unit HBIS Resources has reportedly signed an agreement to invest in the Pampa de Pongo iron ore mine in the Arequipa region, Peru.

Under the terms of the agreement, HBIS Resources will work together with Shandong-based Zhongrong Xinda to develop the mine.

By forming a joint venture (JV), the two Chinese firms intend to work on the first stage of the Pampa de Pongo mine.

HBIS and Zhongrong Xinda will work together for mine and port construction and operation, Reuters reported.

Zhongrong Xinda is the current licence holder of the mine, which also contains copper, cobalt and gold reserves. The Pampa de Pongo is claimed to be one of the largest iron ore deposits in Latin America.

Pampa de Pongo mine estimated to cost $2.2bn

Estimated to cost $2.2bn, the mine is planned to commence operations in 2023, according to the news agency.

The latest investment in the Pampa de Pongo mine would mark HBIS’ entry into South America.

In 2016, Zhongrong Xinda acquired the rights to Pampa de Pongo mine. Zhongrong Xinda subsidiary Jinzhao Mining Peru serves as the project operator.

As per Peru’s Ministry of Energy and Mines 2018 published portfolio, the Pampa de Pongo mine is expected to produce about 28.1 million tonnes per annum (Mtpa) of iron ore.

Located in the coastal region of southern Peru and about 40km southeast of the port of San Juan, the Pampa de Pongo property hosts eight adjoining mineral claims that form contiguous claim block 8000ha in size.