Bear Creek Mining Corporation’s Corani project in Puno, Peru, stands poised to become one of the world’s largest silver mines.
This ambitious venture promises to reshape the global silver market and bolster Peru’s standing as a leading silver producer.
The Corani project, located in the Andes Mountains, hosts one of the largest silver deposits globally.
The site spans approximately 5,500 hectares. It sits at an elevation of 4,800 to 5,200 meters.
Bear Creek began exploring Corani in 2005. The company focused on drilling, geologic mapping, trenching, and geophysical surveys.
By 2019, Bear Creek had completed around 101,400 meters of drilling.
Reserves and Production
Corani boasts proven and probable reserves of 139 million tonnes. The deposit grades 50.3 g/t silver, 0.90% lead, and 0.59% zinc.
This translates to 225 million ounces of silver, 2.75 billion pounds of lead, and 1.81 billion pounds of zinc. The mine will operate three open pits: Este, Minas, and Main.
It will have a processing capacity of 27,000 tonnes per day. Over its 15-year life, Corani will produce an average of 9.6 million ounces of silver annually.
It will also yield 98 million pounds of lead and 69 million pounds of zinc each year.
Economic Impact
The Corani project represents a significant investment in Peru’s mining sector. The capital expenditure exceeds $600 million.
Construction is set to begin in 2024. This phase will create 2,500 jobs. The project will also develop a new 63 km access road, enhancing regional infrastructure.
Bear Creek has secured all necessary permits. The company continues to work on project financing.
The project has faced delays due to the COVID-19 pandemic and local protests. Initially, construction was expected to start in 2021.
Now, it is slated for 2024, with operations beginning in 2027. Despite these setbacks, the project’s internal rate of return remains attractive.
It stands at 36.5%, with current silver prices around $28-29 per ounce.
Global Silver Market Impact
Corani’s development will significantly impact the global silver market. It will increase supply and influence silver prices.
This development could challenge other large producers. Peru, already the world’s second-largest silver producer, could see its annual production increase by over 10%.
This growth may rival Mexico’s top position.
Benchmarking Against Global Producers
- Fresnillo plc (Mexico): The world’s largest silver producer, with over 50 million ounces annually.
- KGHM Polska Miedź (Poland): Produces around 40 million ounces of silver annually.
- Glencore (Various locations): Produces approximately 35 million ounces of silver annually.
Corani’s projected annual production of 9.6 million ounces places it among the top individual silver mines globally.
Conclusion
The Corani project has the potential to become a game-changer in the global silver market. Its development will strengthen Peru’s position as a leading silver producer.
This growth may challenge Mexico’s dominance. However, the project’s success hinges on overcoming market volatility and environmental concerns.
Maintaining positive community relations is also crucial. As Corani progresses, its impact on both the local economy and the global silver market will be closely watched.
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This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. How we use AI · Report an error