UPDATE 1-Rio Tinto, First Quantum partner to develop Peru copper project

(Adds details on joint venture)

March 31 (Reuters) - Rio Tinto Ltd and Canada's First Quantum Minerals Ltd will form a joint venture to develop the La Granja copper project in Peru, the Anglo-Australian miner said on Friday.

First Quantum will buy a 55% stake in the project for $105 million, and commit to invest up to $546 million in the joint venture.

Rio Tinto had acquired the La Granja project from Peru's government in 2006.

First Quantum will operate the La Granja project and will initially work on completing a feasibility study, Rio said.

The Canadian company also owns the Haquira copper deposit in southern Peru, which it bought in 2010.

First Quantum's former CEO Philip Pascall had said in 2019 that the miner was looking for strategic partners to develop new copper projects and a joint venture with Rio Tinto in Peru could be on the cards.

The two companies also signed a memorandum of understanding for strategic cooperation globally to explore copper and other base metals. (Reporting by Harish Sridharan in Bengaluru; Editing by Sriraj Kalluvila)