How Is Strike Advancing Peru’s Iron Ore Project Amid Political Upheaval?

Apurímac Iron Ore Project, Progress Amid Political Turbulence

Strike Resources Limited (ASX, SRK) continues to advance its flagship Apurímac Iron Ore Project in Peru, recognised for its high-grade magnetite resources. The company is actively pursuing access to the proposed Andahuaylas-Marcona Railway, a critical infrastructure link connecting the mining region to the San Juan de Marcona port. Negotiations with the Peruvian Ministry of Transport and Communications and investment agencies remain ongoing, though the recent resignation of President Dina Boluarte and subsequent political unrest have introduced delays.

Strike is also moving forward with preparatory mining, environmental, and community relations studies necessary for a Mining Permit application. However, field activities and community engagement were temporarily suspended due to protests triggered by reforms to Peru’s informal mining sector, which saw the cancellation of thousands of small-scale mining permits. The unrest has since moderated, with protest leaders engaging the new government, but the situation remains fluid.

Political Transition and Regulatory Uncertainty

The smooth constitutional transition to President José Jerí, a centre-right Somos Peru Party member, has so far not signaled adverse policy shifts for mining or the broader economy. Nevertheless, uncertainty persists regarding the continuation of informal mining reforms under the new administration. Strike is closely monitoring developments, aware that regulatory stability is crucial for advancing its mining permit and project timelines.

Lithium Energy, Strategic Acquisitions and Exploration Drive

Strike holds a significant 27.7% stake in Lithium Energy Limited (ASX, LEL), which remains suspended from ASX trading since October 2024 following the sale of its Solaroz Lithium Project in Argentina. Lithium Energy is actively working to meet ASX’s reinstatement criteria by expanding its project portfolio and ramping up exploration activities.

Key acquisitions include the Capricorn Gold-Copper Belt Project in Queensland, where Lithium Energy is deploying modern geophysical techniques and planning extensive drilling targeting gold, copper, molybdenum, and zinc mineralisation. Additionally, the recent purchase of the Mt Dromedary Graphite Project complements its adjacent Burke Graphite Project, positioning Lithium Energy to develop a vertically integrated battery anode materials business.

In the United States, Lithium Energy confirmed lithium brine mineralisation at its White Plains Lithium Project in Utah through auger sampling and geophysical surveys, setting the stage for upcoming drilling programs to test multiple aquifers.

Financial Position and Outlook

Strike reported operating cash outflows of A$314,000 and investing outflows of A$70,000 for the quarter, ending with a healthy cash balance of A$3.426 million. Director remuneration totaled A$174,000. The company’s financial position supports ongoing project development and corporate activities, though the timing of key milestones remains contingent on political and regulatory developments in Peru and the progress of Lithium Energy’s ASX reinstatement efforts.