October 9, 2006

AMEC to conduct EIA, feasibility study for mine drainage water treatment plant

VANCOUVER, BC-AMEC has been commissioned by Peru Copper to conduct a feasibility study and environmental impact assessment (EIA) for the construction of a water treatment plant to treat acid drainage water from the Kingsmill tunnel, a structure that crosses beneath mining concessions in Peru's Morococha mining district. The tunnel was constructed in the mid-1930's by Cerro de Pasco Corporation to drain mine workings. Discharging into the Yauli River at a rate of 1,200 litres per second, the tunnel collects highly acidic mine water containing certain elements at levels potentially exceeding permissible limits. The water then flows into the Mantaro River, which serves as a source of irrigation for agriculture. Peru Copper previously signed an agreement with Peru's Ministry of Energy and Mines and another firm, ProInversion, to fund the construction of a water treatment plant. Pursuant to that agreement the company has placed $15 million (U.S.) in an escrow account to fund the project and all three parties have committed to work in co-operation to insure the design, construction and operation of the plant.

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