Peru Miner Nears Financing Finish Line

Atacocha Mining Company, one of Peru’s leading miners, is in the final stages of financing the construction of the 115MW Quitarasca hydroelectric plant. The total cost will be approximately $120m, of which $80m will be in debt and $40m in equity, CFO Juan Alberto Franco tells Latin Finance. “We have secured the financing for Quitarasca and the name of the bank will be made public soon,” says Franco. Atacocha took control of the Quitarasca project in 2007 from the Chaprin Energy Company. It is Atacocha’s first foray outside of the polymetalic business. In addition to lead, Atacocha also mines copper and zinc. It acquired Poderosa, a related gold mining operation, in 2006. Quitarasca is a key component in the Peruvian government’s effort to guarantee that energy production meets demand, which is increasing by 10% annually. The country needs to add at least 350MW yearly to satisfy that.