A study of development options underway at Anglo-Australian miner Rio Tinto’s (LSE: RIO) La Granja copper project in Peru is likely to take another 12-24 months to complete, according to Andrew Harding, Rio Tinto’s chief executive, copper.

The study aims to consider different project scales and potential roads to development. “We’ve got a number of degrees of freedom in what we could do and we want to make sure we take the best option,” Harding told BNamericas on the sidelines of the 9th World Copper Conference organized by CRU in Santiago, Chile.

“The steps that we’re taking to consider the best option for development allow us more time to work with the community,” he added.

La Granja was previously undergoing prefeasibility work and was scheduled to see completion of a feasibility study by February 2011, but in 2009 Rio Tinto scaled back work at this and other projects due to the economic crisis. Startup of the mine had been forecast for 2014, with capital expenditure of US$2.5bn-3.0bn and production at 300,000t/y with the potential to rise to 500,000t/y.

The project has faced some social issues, particularly in October 2008 when locals forced the temporary suspension of construction of a demonstration plant, saying that although the company received construction permits from the local mayor it did not consult the community directly.

Harding noted that Rio Tinto has community relations staff on the ground in Peru and is working “quite extensively” with the community.

La Granja holds resources of 2.77Bt grading 0.51% copper and 0.1% zinc and sits in the Reque district of Lambayeque region.

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