Pan American plans to invest $520 million in Shahuindo gold mine expansion

Canadian miner Pan American Silver is preparing an investment of approximately US$518mn to expand operations at the Shahuindo gold mine in Peru’s Cajamarca region.

Expansion Plans and Investments

According to the environmental certification service for sustainable investments (Senace), the company presented an eighth supporting technical report (ITS) for evaluation, prepared by consulting firm EAS. This proposed investment is part of Pan American’s expansion plans for all its units in Peru. In addition to Shahuindo, Pan American has also presented documents for expansions at Huarón and La Arena in Peru.

Shahuindo, acquired in 2019, is Pan American’s key asset in the region, with significant gold production in comparison to La Arena. Projections show continued growth in gold production at Shahuindo, with anticipated investments to drive this expansion if the ITS is approved.

Overview of Modifications

The ITS outlines multiple modifications, with the key one being the expansion of the Chalarina open pit due to the discovery of a new orebody extension. This expansion involves various changes to optimize water resources, expand the leaching pad, reconfigure the tailings facility, and relocate the acid water treatment plant, among others.

The report highlights the necessity for a new mining quarry for materials required for the expansion. This move is based on resource scarcity within the extraction area of the Chalarina pit.

Schedule and Costs

Implementation of the proposed modifications is expected to take between two to nine months, with some tasks taking longer due to complexity. The costs associated with each proposal vary, with the pit expansion being the most substantial investment.

Source: EAS