Civil Unrest in Peru Forces Strike Resources to Scale Back Operations Amid Growth Plans
Strike Resources has made significant progress on its Apurimac Iron Ore Project in Peru, engaging with government agencies on critical railway infrastructure and initiating environmental studies, despite recent civil unrest impacting operations. Meanwhile, its stake in Lithium Energy Limited sees advancement in key lithium and gold-copper projects.
- Strategic engagement with Peruvian government on Andahuaylas–Marcona Railway
- Tendering initiated for Environmental Impact Assessment and mining permits
- Temporary operational scale-back due to civil unrest linked to informal mining reforms
- Lithium Energy completes first tranche acquisition of Capricorn Gold-Copper Belt Project
- Lithium Energy advances lithium brine claims in Utah and receives US$26 million from Solaroz sale
Progress on Apurimac Iron Ore Project
Strike Resources Limited (ASX, SRK) has taken important steps forward in developing its flagship Apurimac Iron Ore Project in Peru during the June 2025 quarter. Central to this progress was the company’s strategic engagement with key Peruvian government agencies, including the Ministry of Energy and Mines and ProInversión, the country’s investment promotion agency. These discussions focused on the proposed Andahuaylas–Marcona Railway, a critical infrastructure project that would link the Apurimac mining region to the Marcona Port on Peru’s southern coast, facilitating large-scale iron ore exports.
Strike submitted a formal Letter of Intent to participate in the railway project, aligning its development timeline with this transformative infrastructure initiative. The company also engaged early with the port concession holder to explore long-term logistics integration, underscoring its commitment to securing essential export pathways.
Environmental and Regulatory Milestones
In parallel with infrastructure discussions, Strike initiated the tendering process for technical and environmental studies required to support a full Mining Permit application. This includes a comprehensive Environmental Impact Assessment (EIA), a prerequisite given the scale of the proposed operations. The permitting process is expected to take at least 12 months and is being carefully coordinated with the company’s broader development and infrastructure plans.
Operational Challenges Amid Civil Unrest
The quarter was not without challenges. The Peruvian government’s reforms to the REINFO registry, which regulates informal and small-scale mining, triggered widespread civil unrest in the Apurimac region. This unrest led Strike to temporarily scale back community engagement and field activities to ensure personnel safety. The company remains vigilant, maintaining communication with local stakeholders and authorities, and plans to resume full operations once stability returns.
Corporate Developments, Lithium Energy Limited
Strike holds a 27.7% stake in Lithium Energy Limited (ASX, LEL), which made notable progress during the quarter. Lithium Energy completed the first tranche acquisition (51%) of the Capricorn Gold-Copper Belt Project in Queensland, a district-scale asset with significant exploration potential for gold, copper, molybdenum, and zinc. The company also staked 6,150 hectares of lithium brine claims in Utah, USA, advancing its battery and renewable energy minerals portfolio.
Additionally, Lithium Energy received US$26 million from the first tranche of the Solaroz Lithium Brine Project sale, with the final tranche expected in January 2026. Despite these advances, Lithium Energy remains suspended from ASX pending demonstration of sufficient operational activity.
Financial Position and Outlook
Strike reported a net cash outflow from operating activities of A$841,000 and investing activities of A$106,000 for the quarter, ending with cash reserves of A$3.8 million. The company continues to manage expenditures prudently while advancing key project milestones and navigating the complex socio-political environment in Peru.
Overall, Strike Resources is positioning itself strategically to capitalize on the growing demand for high-grade iron ore, particularly as global steel producers seek low-impurity feedstock to meet decarbonization targets. The company’s dual focus on infrastructure, permitting, and corporate investments in battery minerals reflects a diversified approach to value creation.
Bottom Line?
Strike’s progress in Peru and its Lithium Energy investment set the stage for pivotal developments, but local unrest and regulatory hurdles remain key watchpoints.
Questions in the middle?
- How will ongoing civil unrest in Peru affect the timeline for Apurimac’s mining permits and infrastructure access?
- What are the prospects and timing for Lithium Energy’s ASX reinstatement and completion of the Capricorn Project acquisition?
- Can Strike Resources secure long-term financing to support project development amid current cash outflows?