First Gen Corp.,the listed power generation company of the Lopez Group, said Friday its subsidiary Energy Development Corp. has decided to pull out of Peru.
EDC entered Peruvian energy market in 2012, with its partner Hot Rock Ltd. Of Australia, to develop two geothermal claims.
First Gen told the stock exchange that boards of EDC and EDC’s subsidiary Energy Development Corp. Peru S.A.C. “have decided to no longer pursue exploration and development activities in Peru due to political and market factors.”
Foreign investments in the mining industry in Peru have been under pressure since the election in 2021 of left-wing socialist Pedro Castillo.
EDC was planning to put up two geothermal power plants in Peru by 2026 or 2027. The power plants, which would require investments of over USD1 billion, would have been the Achumani plant in Arequipa and the Quello Apacheta plant in Moquegua.
