The project is in charge of the company Fosfatos del Pacífico SA, which identified the existence of important reserves of phosphate rock in the Bayóvar No. 9 concession.
The Private Investment Promotion Agency (ProInversión) incorporated into 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 aimed, among others, at promote non-metallic mining for the agricultural expansion of Peru.
The signing of the addendum to the contract for the expansion of Bayóvar phosphates could be carried out in the third quarter of 2024 through the Asset Projects (PA) mechanism.
It should be noted that the project, located in Sechura (Piura), is in charge of the company Fosfatos del Pacífico SA (FOSPAC) - a subsidiary of Cementos Pacasmayo - which has been in charge of the exploitation of diatomites since the award made in 2007.
In this case, the project that is incorporated into the promotion portfolio arises from the structuring of the transfer contract for 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- could be valued on the basis of studies carried out by the concessionaire itself.
Precisely, the concessionaire (FOSPAC) has developed studies that have made it possible to identify the existence of important reserves of phosphate rock, with which it has proposed to carry out, within the same Bayóvar No. 9 concession, a production project of this non-metallic mineral for its direct application as fertilizer in agriculture.
The director of ProInversión Projects, Rogger Incio, explained that it is now necessary to prepare an addendum to the contract for the transfer of the concession signed in 2007 so that the exploitation of the phosphate rock can be carried out, which must be approved by the Board of Directors. of the agency, prior to the internal process of issuing the reports for approval and support of the case, which could be signed in the third quarter of 2024.
As a result of the negotiations conducted by ProInversión, the company FOSPAC would be 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 San Martín de Sechura peasant community. (Piura) for the agreed deferred consideration, in addition to the legal royalties and the consequent generation of a source of work.
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: in the tenth year, it must produce 2.5 million tons, increasing the country's phosphate rock production by 50%.
Rogger Incio commented that the project will have a great energizing 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.
