It will promote agricultural modernization, predicts the Minister of Agriculture of Peru.
A great step for the production of phosphate rock in Peru. The production of fertilizers in the Andean country will be a reality and ProInversión indicated that it will require an investment of US$ 940 million in 10 years.
The Private Investment Promotion Agency (ProInversión) participated in the signing of an addendum, with the company Fosfatos del Pacífico de Perú (Fospac) and Activos Mineros (AMSAC), in the contract for the transfer of mining concession No. 9 of Bayóvar, to develop the exploitation of phosphate rock from Sechura (Piura).
The investment promoting entity led the negotiations to sign the addendum by which Fospac has committed to investing US$ 940 million to produce 2.5 million tons of phosphate rock per year (concentrated between 28.5% and 30% of P2O5 ) that can be used directly as fertilizer for agriculture as well as in the production of phosphoric acid and granular fertilizers for agriculture.
The phosphate rock production project will be carried out in two stages. First, the company will produce 100,000 tons per year in the fifth year after signing the addendum; Second, in the tenth year, it will produce 2.5 million tons, increasing the country's phosphate rock production by 50%.
"The phosphate rock will help expand the agricultural frontier in the jungle and the valleys and intervals of the Peruvian coast that correspond to irrigation projects," stated ProInversión.
EMPLOYMENT
Likewise, it will generate direct and indirect employment in all activities related to the exploitation, production and marketing process.
The event was attended by the president of the Council of Ministers, Gustavo Adrianzén; the Minister of Agrarian Development and Irrigation, Angel Manero; the general manager of Mining Assets (AMSAC), Antonio Montenegro; the Vice Minister of Economy of the MEF, Carlos Alberto González; the executive director of ProInversión, Jose Salardi; and representatives of private companies.
Manero highlighted the signing of the addendum to exploit phosphate rock as a form of comprehensive use of phosphates and the national production of environmentally friendly fertilizers in Peru.
"For this reason, it is a very important day for the country because in a few years we will have national production of this input so required by agriculture," he said.
He said that Peru's demand for ammonium phosphates is 250,000 tons per year, because the fields in production in the country are underfertilized.
“But with a more technical national agriculture, demand could reach one million tons per year. That is the great opportunity that will arise, since not only will there be national production of fertilizers but also the sector will become more technical, which will increase productivity significantly,” he commented.
He recalled that in 2022 the import price of ammonium phosphates exceeded US$ 1,000 per ton. “Three times the normal price and despite that there was no availability to buy it,” he said.
It should be noted that the project, located in Sechura (Piura), is in charge of the company Fosfatos del Pacífico (Fospac) - a subsidiary of Cementos Pacasmayo - which has been in charge of the exploitation of diatomites since the award made in 2007.
On the other hand, the president of the Council of Ministers, Gustavo Adrianzén, saluted the private sector for this investment of US$ 940 million that will significantly boost the agriculture and economy of the Piura region.
PROMOTION OF PRIVATE INVESTMENT
At the event, the premier commented that it is very important to continue promoting private investment, which represents 80% of the capital in the Andean country.
"We feel very satisfied that projects like this are completed and become a reality because it means the commitment of private investment to a serious country that generates stability, confidence and optimism," he stressed.
The prime minister congratulated the work being carried out by ProInversión, which so far this year has generated investment commitments for around US$ 5,000 million in public-private investment projects, in line with its annual goal of PPP and Project awards. in Assets.
For his part, the head of ProInversión, José Salardi, highlighted the commitment signed because it will allow the value of the non-metallic mineral resource fundamental for agriculture to be valued and will also have a great economic impact for the State and the San Martín de Sechura peasant community. (Piura) for the agreed deferred consideration, legal royalties and job creation.
The compensation for the Peruvian State is estimated at approximately US$242 million and a similar amount for the San Martín de Sechura Community Foundation, according to initial estimates.
PROJECT FEATURES
The useful life of the project is 20 years and will be developed as a multi-layer open pit mine, using continuous and conventional mining methods.
To process phosphate rock, it will have a benefit plant, port facilities, waste ponds, energy supply facilities, water facilities and auxiliary facilities.
The mining concession includes 6,891 hectares; Fospac has the surface rights through a contract signed with the San Martín de Sechura Community Foundation, with the participation of ProInversión y Activos Mineros.
