📋 Tender Overview
The Private Investment Promotion Agency (PROINVERSIÓN) added to the 2024 portfolio the opportunity to exploit phosphate rock in the Bayóvar No. 9 concession, which would generate investment commitments of US$ 940 million and would be oriented, among others, to promote non-metallic mining for the country's agricultural expansion. The signing of the addendum to the contract for the expansion of Bayóvar phosphates could take place in the third quarter of 2024 through the Projects in Assets (PA) mechanism.
It should be noted that the project, located in Sechura (Piura), is in charge of the company Fosfatos del Pacífico S.A. (FOSPAC) - a subsidiary of Cementos Pacasmayo - which has been responsible for the exploitation of diatomites since the award made in 2007.
In this case, the project that is incorporated into the development portfolio arises from the structuring of the transfer contract of the Bayóvar Mining Concession No. 9 made by PROINVERSIÓN, in which the provision was made that if the concessionaire discovered another mineral substance – in this case phosphate rock – it could be valued on the basis of studies that would be carried out by the concessionaire itself.
Precisely, the concessionaire (FOSPAC) has developed studies that have made it possible to identify the existence of important phosphate rock reserves, with which it has proposed to carry out, within the same Bayóvar No. 9 concession, a project for the production of this non-metallic mineral for its direct application as fertilizer in agriculture.
The Director of Projects of PROINVERSIÓN, Rogger Incio, explained that now, it is time to prepare an addendum to the contract for the transfer of the concession signed in 2007 for the exploitation of the phosphate rock, which must go through the approval of the Board of Directors of the agency, after the internal process of issuing the reports for approval and support of the case. which could be subscribed in the third quarter of 2024.
As a result of the negotiations conducted by PROINVERSIÓN, the company FOSPAC is committing to an investment of US$ 940 million over a period of 10 years, with a significant economic impact for the Peruvian State, as well as for the peasant community of San Martín de Sechura (Piura) for the deferred consideration agreed, in addition to the royalties of law and the consequent generation of a source of employment.
The project would be executed in two stages: first: the company will produce 100,000 tons per year by the fifth year after the addendum is signed. Second, by the tenth year, it should produce 2.5 million tons, increasing the country's phosphate rock production by 50%.
Rogger Incio commented that the project will have a great dynamic effect on the country's economy and will also facilitate the expansion of agricultural production. "This type of product is in demand in the local market, in fact, in the jungle it has been identified that its application can be direct as well as in the development of modern agriculture in the valleys and intervals of the Peruvian coast that will be expanded by irrigation megaprojects," he stressed.
