SPILL OF COPPER CONCENTRATE IN CAJACAY, ANCASH, PERU

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ACTIONS AFTER LEAKS OF COPPER AND ZINC CONCENTRATE OF THE PIPELINE OF ANTAMINA IN THE TOWN OF SANTA ROSA, CAJACAY DISTRICT, BOLOGNESI PROVINCE, ANCASH DEPARTMENT, IN PERU BY THE ENORMOUS IMPORTANCE OF PRESERVING LIFE, HEALTH AND PROPERTY OF OUR PEOPLE, THAT IN THE TOWN OF SANTA ROSA, CAJACAY DISTRICT, BOLOGNESI PROVINCE, ANCASH DEPARTMENT, IN PERU, HAS BEEN AFFECTED BY THE LEAK OF CONCENTRATE OF COPPER, ZINC AND OTHER MINERALS FROM ANTAMINA’S PIPELINE WHICH OPERATES AT EXTREMELY HIGH PRESSURE OF 70 TIMES ATMOSPHERIC PRESSURE AND HAS RUPTURED, POLLUTING THE TOWN, INCLUDING ITS PEOPLE, ANIMALS, FARMS AND ITS FACILITIES. UNDERSTANDABLY THE PARTIES HAVE A CONFLICT OF INTEREST, SO THE ACTORS IN THIS PROCESS MUST PUT THEIR BEST VALUES TO OVERCOME THIS ACCIDENT INVOLVING OUR PEOPLE. EVERYONE MUST TAKE ITS RESPONSIBILITY. 1. Environmental Impact Study According to the Environmental Impact Study Expansion Project Open Pit Optimization and Processing Antamina Mine, prepared by Golder Associates Peru SA to Compania Minera Antamina SA, which can be located in http://intranet2.minem.gob .pe/web/archivos/dgaam/inicio/resumen/RE_1707562.PDF , Compania Minera Antamina SA (Antamina) Antamina Mine has been operating since 2001. Its operations are located in the Department of Ancash and its various facilities are located in the provinces of Huari, Bolognesi and Huarmey. Antamina is running its activities in three main areas:  Mine Area.  Pipeline Area.  Port Area.

The mine area is located in the San Marcos district, province of Huari, Ancash department, 270 km north of Lima in a straight line. In this area is located the open pit, process plant, the waste dumps, among others. The pipeline area is a corridor of 302 km in which is installed the pipe that carries the concentrate from the mine area to the port area located in the province of Huarmey. It has eleven stations that serve several functions, including pumping the concentrate,

This is the pipeline that failure in the town of Santa Rosa, district of Cajacay, Bolognesi Province, Ancash department, in Peru. pressure monitoring, flow monitoring, cathodic protection (to prevent corrosion).

The port area is located in Punta Lobitos, district and province of Huarmey, south of the city of Huarmey. Here is the concentrate discharge station, filtration plant, a warehouse, dock, and auxiliary facilities.


2. Institutional and Legal Framework Environmental authority in Peru is the National Environment Council (CONAM). However, the environmental authority for the mining sector is the Ministry of Energy and Mines (MINEM), which grants concessions functions include mineral resource on behalf of the State, environmental and technically evaluate mining projects, gives the general national regulations in respect of matters within its competence. Account with the Department of Mining Environmental Affairs (DGAAM) as a technical body. According to Law 28964, since January 2007, the regulation, supervision and monitoring of mining activities is the responsibility of the Supervisory Board for Investment in Energy and Mining (OSINERGMIN). This organism is a regular function, oversee and monitor national compliance with the laws and techniques in the electricity subsector, hydrocarbons and mining, and compliance with legal and technical provisions relating to conservation and environmental protection in the development of such activities. 3. The Antamina pipeline We present some views of the video prepared by Antamina, which describes the pipeline caracteristics:

STORAGE TANKS OF COPPER CONCENTRATE (3) AND ZINC CONCENTRATE (2), WHICH ARE PART OF THE PIPELINE THAT TRANSPORTS THE MINERALS FROM THE MINE TO PUERTO LOBITOS

PS-1 STATION EQUIPPED WITH FOUR CARGO PUMPS AND FOUR MAIN LINE PUMPS.

As seen this pipeline carries mine production, indicating its importance and great value in the process. Also be noted that conservation is important both for Antamina, as for the inhabitants of the area by which runs the pipeline for the impacts that can result in people, as in the environment. From this we can infer a great responsibility of Antamina and authorities in both process control and in the protection of people and goods of all kinds.


The characteristics of the pipeline are as follows, according to information from the Antamina’s website http://www.antamina.com/es/content.php?25/operaciones/mineroducto.html • Total length: 302 km • Length of each pipe: 12 m. • Diameter of each pipe: 8 to 10 inches (21 to 25 cm.) • Thickness of each line: 1cm. • thickness polypropylene cover: 7mm • Pipe Material: steel coated internally and externally. • Tubing Resistance: get a pressure of 70 bar, but can withstand 200 Bar • Life of the pipe: 30 years • Type of joint between pipes: welding . • Average depth of the trenches: 1.30 to 1.50 m. • Resistance to earthquakes: up to grade VIII on the Modified Mercalli scale.

Is important to note that delivery pressure is about 70 times atmospheric pressure, which is high pressure and that, despite indicating that it can withstand the pressure of 200 times atmospheric pressure, this broke in Santa Rosa . This explains why people describes the event as "the pipe exploded." 4. EFFECTS OF COPPER AND ZINC POISONING On the website of the National Library of Medicine U.S. of America, National Institute of Health, http://www.nlm.nih.gov/medlineplus/spanish/ency/article/002496.htm, we read that ingest large amounts of copper can cause vomiting, abdominal pain, diarrhea and yellow skin (jaundice). Also, contact with large amounts of copper can result in hair discoloration (green). Symptoms may include:  Anemia  Pain  Shock  Burning  Chills  Vomiting  Seizures  Weakness  Diarrhea (often  Yellow eyes  Yellow skin  bloody and may be blue)  Fever  Liver failure  Metallic taste  Muscle aches  Sickness  No urine output


Several of these symptoms are consistent with those described in the press releases of the Rural Community of Cajacay. It is evident that the immediate effect of spill of concentrate of copper and zinc in the population, both children and adults. Copper toxicity has been the effect of the vapors, particles suspended in the air, direct contact to participate actively in control of the spill by the peasants. 5. ANTAMINA’S ATTITUDE TO THE FACTS Antamina issued the following information

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Pipeline elbow rupture inside valve station VS1 caused a mineral concentrate leak Julio 26, 2012 The population and authorities are being provided support for all actions needed to control the event Compania Minera Antamina wishes to clarify that it has been determined that the cause of the mineral concentrate leak on Wednesday July 25th was a rupture of the lower section of a pipeline elbow inside valve station VS1 and not a defective concentrate plug as was initially mentioned. This verification was possible following a new system check and a detailed review of the event. Initially the recording film of the monitoring cameras located in Valve Station VS1 led us to believe that the cause of the leak was related to a defective ž inch plug when in fact it turned out to be a rupture in the pipe elbow. This is the first time that a technical failure of this nature has been recorded inside our valve station. It is worth emphasizing that this station has a contingency well located inside which has received and contained most of the load with a small amount that has flowed into a ditch but without reaching the Fortaleza River, and the flow was contained by company emergency equipment. Antamina has provided the necessary support to transport and provide medical attention for nine people at the San Pablo Clinic in Huaraz who stated they were suffering from headache and nausea. Of these people, 5 are children and 4 are adults, one of whom is a pregnant woman. Following a medical examination and laboratory tests it was determined that all the symptoms have progressed in a positive way. The pregnant woman was thoroughly examined including fetal monitoring and ultrasound tests with results showing that all parameters are found to be within the normal range. The Santa Rosa Health Post has provided medical attention to 52 patients with similar symptoms and all of them have been released. Antamina is continuing with the implementation of its Contingency and Emergency Action Plan which consists of reducing risks and controlling the events in addition to obtaining approval to commence clean up tasks. Huaraz, July 26, 2012 Office of Corporate Communications Compania Minera Antamina S.A.


These pictures confirm the scope of minimizing the effects of the accidental spill

There is an attitude of Antamina to minimize their liability. We understand that the control measures of population health must continue later with the participation of national health authorities of Peru. So too, must control the effects of the spill on the environment by the competent authorities. 6 . STATEMENT OF AUTHORITY MINAM AND OEFA OVERSEES AND EVALUATES AREA AFFECTED BY MINING PRODUCT LEAKS IN ANCASH

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General Director of Environmental Quality and specialists MINAM Assessment Agency and Environmental Control (OEFA) tour affected areas in the district of Cajacay (Ancash).


Specialists took water samples, soil and sediments.

Lima, July 28, 2012. - A group of specialists from the Ministry of Environment run from last Thursday Cajacay district, province of Bolognesi (Ancash) area where the spill occurred a mineral from the pipeline valve station VS1 of company Antamina. Officials of the Agency for Assessment and Environmental Control (OEFA), an agency under the MINAM, said that they arrived to the district on 26 July to analyze the point of origin of the spill (VS1 Valve Station, located at the Km 110 of the Pativilca route Conococha hamlet of Santa Rosa, (Cajacay district) and the outer zones of the incident area. The first actions taken by the specialists were taking water samples in the area of the incident, sediment samples in the spill area and soil samples around the area of the incident. The presence of experts from the State to guarantee the rights of individuals. The inspection was conducted in the presence of local authorities as Cajacay district mayor, the president of the Community of Santa Rosa, Attorney specializing in environmental Ancash Ancash Regional Governor and a representative of the Antamina Mining Company. Work is under way also to clean the affected area. Communications MINAM www.minam.gob.pe In the other hand Bolognesi provincial mayor has spoken publicly requesting declare a state of emergency in the area due to the massive intoximación of population, anticipating the after-effects of intoxication.

6 . REACTION OF THE POPULATION ANTAMINA issued the following statement: Antamina rejects acts that seek to obstruct clean up activities in Santa Rosa Julio 27, 2012 Campania Minera Antamina expresses its strong opposition to the attitude of a group of people who for the past 48 hours have been obstructing the access of company personnel to our valve station known as the VS1 valve station. This illegal act is interfering with our immediate actions aimed at performing cleanup activities associated with the accidental rupture of the lower section of a pipe elbow that created a copper concentrate leak. As previously communicated, last Wednesday, July 25th, in the Santa Rosa community, the Cajatay District, Province of Bolognesi in the Ancash Region, the above mentioned concentrate leak occurred with most of the concentrate captured and contained inside the contingency well and another smaller amount in an adjacent area. The company´s cleanup equipment is assigned very specific instructions about what tasks need to be completed in this type of events. We fail to understand the reasons for blocking the access of the special emergency teams, which only seek to bring about an immediate solution to this fortuitous incident.


We call upon all citizens to reflect about the risks associated with obstructing this cleanup which is technical. Any delays in starting this work for reasons beyond our control could lead to situations of risk that are essential and prudent to avoid. Antamina also wishes to clarify that no amount of concentrate has fallen into the Fortaleza River as has already been verified by the pertinent authorities. As you well know, we are acting with complete awareness and responsibility in accordance with established procedures for this type of events. Our company has spared no cost in providing immediate medical attention to the people of Santa Rosa who showed any type of discomfort during this incident and fortunately everyone is under the observation of the health care authorities and in stable condition. We have also learned that the road between Pativilca and Conococha (near the village of Santa Rosa) is blocked and obstructing the free flow of transit. Finally, we are concerned that third parties seek to force the inception of situations of social conflict in this single, isolated and accidental event. We invoke the assistance and cooperation of the authorities in recovering respect for the law and that our personnel are given all necessary access so they can carry out the required cleanup work as soon and effectively as possible. Huaraz, July 27th, 2012 Office of Corporate Communications Compania Minera Antamina

ANTAMINA "INVOKES THE COLLABORATION OF THE AUTHORITIES TO GET RESPECT FOR THE LAW ..." AS RESULT OF THE REACTION OF THE POPULATION FRONT TO THE SPILL OF CONCENTRATED THAT AFFECTED TO HIS PERSONS AND GOODS OF ALL KINDS, WHICH MUST BE TECHNICALLY STABLISHED TAKING THE FORECAST FOR THIS TYPE OF EVENTS NOT HAPPEN AGAIN. IS NATURAL TO REACT WHIT EXTREME VIOLENCE TO EVENTS AFFECTING THE LIFE, HEALTH AND PROPERTY. ANTAMINA AND AUTHORITIES MUST ACT WITH RESPECT. OUR LAND ALL TIME ALLOWS THE DEVELOPMENT OF THESE ACTIVITIES WITH GREAT BENEFITS FOR THEM. 7. TO WHICH PHENOMENON WE FACE AS COUNTRY? IN RECENT INTERVIEW TO THE RENOWNED ECONOMIST HERNANDO DE SOTO POLAR, HE SPOKE ABOUT THE RESENTMENT EXPRESSED BY THE FARMERS TO MAJOR MINING COMPANIES "... NOW THIS PHENOMENON THAT HAPPENS IN PERU IS A PHENOMENON THAT HAPPENS IN THE WORLD, AS THE WEST IS IN RECESSION AND GOES IN SEARCH OF RAW MATERIALS IN THE SOUTH, BUT IN ALL COUNTRIES


OF THE THIRD WORLD, AS THE MINING SECTOR FACES THE INFORMAL ... " REFERS TO THE INFORMAL SECTOR BECAUSE ARE NOT RECOGNIZED IN THE PRACTICE THE RIGHTS OF FARMERS ON THEIR LAND. THEY COME, THE MINING COMPANIES AND THE STATE AND USUFRUCT LAND, BUT FARMERS ARE MERE OBSERVER NOT RECEIVING BENEFITS THEM PROPERLY APPLIED, WITHOUT BEING SERVED IMMEDIATELY TO THE FACTS OF GRAVITY AS OCCURRED. 8. WHAT MUST BE DONE NOW? •

THERE MUST BE MONITORING THE HEALTH STATUS OF THE PEOPLE AFFECTED BY THE SPILL TO AVOID EFFECTS OF POISONING BY METALS SUCH AS COPPER AND ZINC.

ASSESSING THE DAMAGE TO THE ENVIRONMENT AND PROPERTIES FOR THE SPILL. TAKE ACTION TO REVERT AND INDEMNIFY THE AFFECTED.

INVESTIGATE THE CAUSES OF THE FAILURE OF THE PIPELINE AND TAKE REMEDIAL TO THE CASE TO PREVENT THE LAND CONTINUES POLLUTING.

ACTION ALL THE ACTORS IN THESE FACTS WITH TRANSPARENCY, LOYALTY, TRUTH AND PATRIOTISM. TAKE NOTE THAT RESPECTS RESPECTS KEEP AND CORPORATE BENEFITS SHOULD NOT BE ABOVE THE RIGHTS OF OUR PEOPLE.


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