The two Chinese companies plan to set up a joint venture to work on the first stage of the mine, which also contains copper, cobalt and gold reserves, an HBIS Resources filing to the Shenzhen Stock Exchange showed.

The scope of cooperation includes mine and port construction and operation, it added. No value was put on the framework agreement, which was signed on July 31 and will serve as a basis for negotiations between the two firms.

Investing in Peru, the world’s second-biggest copper producer after neighbouring Chile, would be HBIS’ first foray into South America. It coincides with steady demand from Chinese steel mills as prices of iron ore, the main steel-making ingredient, top $100 a tonne.

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