Lara Exploration expands role in Peruvian phosphate market

Lara Exploration Ltd. has successfully increased its ownership in the Mantaro Phosphate Project from 33% to 70% after completing the necessary expenditures. This strategic move underscores Lara’s commitment to expanding its operations in Peru’s phosphate sector, with a focus on sustainable development. To further this initiative, Lara has established a new subsidiary, Fosfatos Alli Allpa, which will spearhead future exploration and the development of phosphate resources.

Fosfatos Alli Allpa, meaning “good soil” in Quechua, aims to produce and concentrate phosphate rock to address the rising demand for natural fertilizers, particularly in the Junín Region and across Peru, with eventual plans to tap into the export market.

Strategic Collaboration with Local Institutions

In its ongoing commitment to sustainable agricultural solutions, Lara is working with the Peruvian National Institute of Agrarian Innovation (INIA). The collaboration focuses on testing crushed phosphate rock on local soils to enhance crop yields, demonstrating the potential for locally sourced phosphates to contribute to regional agricultural productivity.

A Well-Positioned Project

The Mantaro Phosphate Project is located between Jauja and Concepción in the Junín Region of Central Peru. The region is known for its extensive layers of sedimentary phosphate, which previous studies, including trenching, drilling, and processing test work, have shown to be suitable for surface extraction and beneficiation. The project was earlier assessed by Stonegate Agricom Ltd. (now part of Itafos Inc.), which published a NI 43-101 technical report in 2010.

The project benefits from a strategic location with access to major infrastructure. It lies near the national highway and a rail line connecting Huancayo with Lima and the port of Callao. Additionally, the nearby Chinese-operated mega-port of Chancay offers opportunities for export, and rail upgrades in the region will further enhance transport capacity. High tension transmission lines also traverse the project area, ensuring reliable power access for future operations.

Looking Ahead

With its increased stake in the Mantaro Phosphate Project and the establishment of Fosfatos Alli Allpa, Lara Exploration Ltd. is well-positioned to advance its goal of developing a phosphate fertilizer production hub in Peru. The company’s long-term vision includes not only meeting domestic demand for natural fertilizers but also expanding into the international market.