Glencore (LON: GLEN) has secured the land access agreements needed to advance its Coroccohuayco copper expansion in southern Peru, clearing a major hurdle for a project expected to extend the life of its Antapaccay mining complex to more than 40 years.
The Swiss commodities giant said its Peruvian subsidiary, Compañía Minera Antapaccay, completed agreements covering the remaining land parcels required for the brownfield project in Espinar, Cusco. The company is now pursuing final permits, with first production targeted for the second half of 2029.
“Securing access to the required land is an important milestone for Coroccohuayco and for the long-term future of the wider Antapaccay operation, and complements the MEIA environmental approval received earlier in the year,” Luis Rivera, Glencore’s chief operating officer for South America, said in a statement.
The development forms part of Glencore’s broader push to expand its copper business as it pursues a long-term goal of nearly doubling global output. Peru is central to that strategy, although lengthy permitting processes and recurring tensions between mining companies and local communities remain obstacles to bringing new production online.
Longer mine life
Coroccohuayco is expected to increase Antapaccay’s copper production while extending operations at one of the Cusco region’s established mining centres. The existing mine began production in 2012 and produced about 146,000 tonnes of copper last year.
The expansion could also sustain employment, local procurement and economic activity in Espinar for decades, according to Jon Evans, Glencore’s industrial lead for copper.
The company has pledged to continue working with local communities and authorities as the development moves through its remaining regulatory requirements.
Peru’s mining sector has faced persistent challenges involving environmental concerns, community opposition and bureaucratic delays. Major copper developments can take decades to progress from exploration to production, raising costs and complicating investment decisions.
These risks remain relevant to Coroccohuayco despite its environmental approval and newly secured land access. The project must still obtain the remaining permits before construction and production can proceed as planned.
Regional copper ambitions
Glencore has also strengthened its position around Antapaccay through its acquisition of the nearby Quechua copper project, previously held by Pan Pacific Copper.
Quechua, which remained undeveloped under its former owner, adds another potential source of future production to a district that includes the operating Antapaccay mine and the planned Coroccohuayco expansion.
The acquisition could create opportunities for infrastructure sharing and operational efficiencies across Glencore’s holdings, although the company has not outlined a development timetable for Quechua.
Beyond its wholly controlled operations, Glencore holds a 34% interest in Peru’s Antamina copper and zinc mine alongside BHP (ASX: BHP; NYSE: BHP), Teck Resources (TSX: TECK.B)(NYSE: TECK) and Mitsubishi Corp. (TYO: 8058).
Together, the investments give Glencore a substantial position in one of the world’s leading copper-producing countries as miners seek additional supply to meet demand from electrification, power infrastructure and industrial growth.