Representatives from Compañía de Minas Buenaventura and ProInversión have signed the concession contract for the “El Algarrobo” water-mining project, according to a recent press release. The goal of this initiative is to prioritize water access for the community of Locuto (Tambogrande, Piura), before moving forward with the development of an underground polymetallic mining project focused on copper, zinc, and silver. This project is intended to complement agricultural activity in the area and promote sustainable development in the Piura region.
As a reminder, in December 2024, ProInversión awarded the development of this project to Buenaventura. In this initial phase, the company will aim to reach a Social Agreement with the community and, afterward, carry out mining exploration. If successful, the project's construction phase would require an initial investment of approximately USD 480 million. As construction progresses, additional capital investments could bring the total to USD 759 million. If the mine becomes operational, the gradual and cumulative investment over 10 years of production, including operating expenses, would total USD 2.7 billion.
“We are guided by the principle of ‘water first, mine later,’” said Aldo Massa, Vice President of Business Development and Marketing at Buenaventura. “Thanks to the water-focused approach of El Algarrobo, we aim to strengthen local agriculture and improve the quality of life for thousands of families in Piura who currently lack adequate access to potable water—before mining operations even begin,” he added.
The Tambogrande district in Piura has the lowest Human Development Index in all of Peru and has been calling for decades for a reliable supply of water for human consumption and agricultural development. El Algarrobo aims to close this historical gap and will offer opportunities for decent employment and sustainable development for future generations in the surrounding area—improving their living conditions and access to basic services like education and healthcare. The project will also significantly contribute to the region's economic recovery by boosting the agricultural sector and reinforcing Peru's global standing in the mining industry.
The project's first phase has already begun and focuses on building a Social Agreement with local communities and authorities through dialogue and trust. At the same time, technical research will be conducted to determine the area’s water potential, which will help prioritize the design of solutions to supply water to the population and promote agriculture and livestock farming. Only after securing social license and completing the water-related phase of the project will exploration activities begin to develop an underground copper mine, following the highest technical and environmental standards.
Authorities attending the event included José Salardi, Minister of Economy and Finance; Henry Luna, Vice Minister of Mines; Rosangella Barbarán, Chair of the Special Multiparty Commission of ProInversión; and Luis del Carpio, Executive Director of ProInversión.
The signing of this contract reaffirms Buenaventura’s commitment to continue working with transparency, respect, and efficiency—building, alongside local authorities and communities, a future full of opportunities for Piura and Peru, where water serves as a unifying element that drives sustainable development, strengthens agriculture, and demonstrates that responsible mining can be a driver of progress.
