Fortescue Reinforces Interest in Peru Amid Bullish Copper Market

Written by Amir Richani for IIR News (Sugar Land, Texas)

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Summary

Fortescue aims to put a bigger footprint on Peru's copper operations. The copper sector remains tight by the end of 2025, driven by operational disruptions, strong demand from cleaner energy sources and geopolitical tensions.

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Fortescue Doubles Down on Peru

Amid increased copper demand, operational setbacks and high copper prices, Fortescue Metals Group Limited (Perth, Australia) is doubling down on its investments in Peru.

The miner has announced the acquisition of the remaining 64% stakes of Alta Copper (Vancouver, British Columbia) for C$139 million (US$101 million). Fortescue already owned 36% of Alta Copper.

The move is part of a strategy to gain a stronger foothold in copper operations in Peru, as Alta Copper is the sole owner of the Canariaco copper project in the northern part of the country. The copper project covers 91 square kilometres and comprises the Canariaco Norte and Canariaco Sur deposits, as well as the Quebrada Verde prospect. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project and Plant databases can view the Canariaco project reports and plant profile.

The asset has a total measured and indicated mineral resource of 1.1 billion tons at 0.42% copper equivalent grade, and 0.9 billion tons at 0.29% copper equivalent grade of inferred resources. The Canariaco project completed a preliminary economic assessment in 2024.

Alta Copper also wholly owns the Arikepay copper project and the Don Gregorio copper-gold project, both in Peru. Arikepay is currently optioned for earn-in by Precore Gold.

A Bullish Copper Market

The news from Fortescue is not unusual. Copper mining companies have cashed in on high copper prices throughout 2025, with a new record price reached in December. A mix of geopolitical tensions, tight supply and strong demand for the metal is driving the bullish market.

Recent operational setbacks at mining operations such as the Grasberg mine in Indonesia, the Kamoa-Kakula mine in the Democratic Republic of Congo and the Quebrada Blanca and El Teniente mines in Chile have also put pressure on copper supply, with production cuts from these mines occurring in 2025.

Next year is looking to be another year of bullish markets, as companies try to regain operational capacity and demand for copper remains solid amid the transition to cleaner technologies such as renewable energy and electric vehicles, accompanied by grid upgrades.

The current dynamic is reinforced by a lack of new projects coming online. In recent weeks, Cochilco, the Chilean mining authority, published its mining portfolio for 2025-2034, totalling US$104.5 billion. Of those, 81% of the projects are brownfield developments, with only 19% focused on new projects. Copper dominates the portfolio, accounting for 89.8% of all investments.

Greenfield copper developments only account for US$11 billion of the total investments.

In Peru, the government has reported a mining portfolio of 67 projects worth US$64 billion. The majority of the investments, around 60%, are for greenfield projects. However, the greenfield Tia Maria project could be among the few large-scale copper mines expected to come online in Peru over the next two years.

The possible reopening of First Quantum's (Vancouver) Cobre Panama mine could offer the copper market some respite. No dates have been set yet for discussions between the company and the Panamanian government.

Meanwhile, Argentina could offer new greenfield projects in the next decade with its Josemaria, Filo del Sol, MARA, and other projects moving across multiple developmental phases.

Geopolitical tensions are also playing a key role in current market dynamics. The threat of copper tariffs sent markets rallying earlier this year. Protectionist policies from the United States could further impact markets.

Key Takeaways

• Fortescue acquires the remaining 64% stakes of Alta Copper.
• The acquisition gives the company access to three copper projects in Peru
• The copper sector is expected to remain bullish amid tight supply and strong demand.

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