Global mining company Anglo American PLC is restarting work at its Peruvian Michiquillay project, described by the company as one of the world's largest undeveloped copper deposits.

A report Tuesday in Peruvian daily Gestion said Anglo American was restarting the delayed development of Michiquillay following discussions with nearby residents over how much money the company would spend on social and community projects.

"Anglo American has been working closely to define, in more detail and within the Social Agreement, the basis for working together in a sustainable manner," following a suspension of work that started in late 2009, Anglo American's country manager, Luis Marchese, told Gestion.

No one at Anglo American's office in Peru was available to confirm the report, but an email from a company spokesman in London confirmed Marchese's quotes as correct.

A spokesman for Peru's Energy and Mining Ministry said according to its project portfolio, investments at Michiquillay are slated to be about $700 million, while Gestion said investments could reach $1 billion. Anglo American's spokesman said it was too early to say what the cost of the project will be.

Anglo American acquired the Michiquillay concession in 2007 for $403 million. According to Anglo American's factbook, the mine is expected to reach full production by 2018 and produce 155,000 tons of copper a year, rising to a potential 300,000 tons per year.

Anglo American's other Peruvian copper project, Quellaveco, should begin development in 2011 and is expected to produce about 220,000 metric tons of copper annually as of 2014.

Source: Dow Jones Newswires