MINING IN PERU (ENGLISH)

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Guillermo Shinno HuamanĂ­ Viceminister of Mines Ministry of Energy and Mining March 2014


Map of Mining Units 2016 - 2030

Operation Extension Exploration

Mining Projects (1950 – 2030)

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Investments grow every year

2013: Investment grew 14% since 2012

SOURCE: MINEM


MINING OUTPUT 2012 - 2013

Production

Units

2012

2013

Change (%)

TMF

1’298,761

1’375,641

6%

Gold

Gr. Finos

161’544,666

151’486,072

-6%

Zinc

TMF

1’281,282

1’351,273

6%

Silver

Kg. Finos

3’480,857

3’674,283

6%

Lead

TMF

249,236

266,472

7%

Iron

TLF

6’684,539

6’680,659

0%

Tin

TMF

26,105

23,668

-9%

Molybdenum

TMF

16,790

18,140

8%

Copper

The output of the main metals, including copper, silver, zinc, lead and iron, increased between 6% and 8% SOURCE: MINEM

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Exports FOB value in million US$ Exports: AND

61 % MINING 12 % ENERGY


INCREASING COPPER OUTPUT

ANTAPACCAY ANTAMINA (AMPL.) TOROMOCHO CONSTANCIA LAS BAMBAS CERRO VERDE (AMPL.) TOQUEPALA (AMPL.) TÍA MARÍA TOTAL 2012 1.3 millions FMT

Investment Millions US$ 1,500 1,300 4,800 1,500 5,200 4,400 900 1,000 21,920

Production TMF / Cu 160,000 175,000 300,000 80,000 315,000 272,000 100,000 100,000 1,527,000

Operation Dec-12 Dec-12 Dec-13 Aug-14 Mar-15 Aug-15 Jul-15 Mar-16

2016 2.8 millions FMT 5


DEVELOPMENT ROUNDTABLES

Cotabambas.

Civil Society

Jangas / Huarmey. Ca単aris.

Company

Corani. Hualgayoc. Chumbivilcas.

Authority


FRIENDLY INVESTMENT ENVIRONMENT

Peru offers a favorable legal framework for foreign investment ‌

Non discriminatory treatment: Foreign investors receive the same treatment as local investors. Free transfer of capital. Free competition. Guarantee for Private Property. Freedom to purchase stocks from locals. Freedom to access internal and external credit. Freedom to pay royalties. Network of investments agreements and member of ICSID and MIGA. 7


Recognized mining potential

PROVEN AND PROBABLE MINERAL RESERVES

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Recognized electricity potential

Cost of electricity to 2020 (US$ / KWh)

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Mining Activity: There is mining activity in only 1.2% of the Peruvian territory 14.8% is under concession 10


STREAMLINED PERMITTING

S.D. 054-2013-PCM • Changes to auxiliary components, expansion of investment proyects and technology improvements in operation without significant environmental impacts will not require to alter the environmental assessment. • Authorities will issue their no-objection within 15 business days.

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STREAMLINED PERMITTING

S.D. 054-2013-PCM

• Archaeological non-objection certificates will be approved within 20 business days. Archaeological Monitoring Plans will be approved in 10 business days, benefitting from positive administrative silence (Art. 3º). • Temporary and definitive easements on a unclativated State-owned lands will be provided within 15 days (Art. 6º).

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Faster environmental assessments

300 250 200

230 días

150

2013

195 días 100 50

42 días

0 DIA

EIAsd

2012

EIA


Private sector viewpoint

El Comercio: 27/10/13


Development poles


“Include to grow” President Ollanta Humala Tasso Closing ceremony. PERUMIN – AREQUIPA September 20, 2013


Energy and mines industry

The Energy and Mines industry contributes to the development of mineral and energy resources and promotes sustainable development Urban and agricultural growth flora and fauna protection. Infrastructure and development projects. Natural resources: minerals, gas, oil, electric, energy and fresh water. Cultural heritage, traditions and customs development in coastal, high Andes, Amazon and high Amazon areas. Fisheries and oil resources on the continental shelve. 17


NORTH MACRO-REGION TERRITORY DEVELOPMENT COLOMBIA

NORTHERN IIRSA

COPPER-GOLD PROJECTS FOR US$ 20 billion

COPPER REFINERY PROJECT

ECUADOR MANSERICHE Hydro 7550 MW RENTEMA Hydro 1525 MW

CUMBA 4 Hydro 825 MW ALTO MAYO PROJECT 768 000 Ha

BRAZIL BAYOVAR PORT

CHADIN 2 Hydro 600 MW

BAYOVAR PROJECT • PHOSPHATES • DIATOMITES • BRINE • LIME

BALSAS Hydro 915 MW

Copper Projects Silver Projects Gold Projects Iron Projects Hydropower Station

PACIFIC OCEAN CAJAMARCA -PIURA TRAIN

Estimated Annual Production Project Copper 1.018.000 tmf Gold 867.000 Oz Phosphates 5.800.000 tm

CAJAMARCA - CHACHAPOYASTARAPOTO TRAIN

Railroad Project Railroad study

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CENTRAL MACRO-REGION TERRITORY DEVELOPMENT

PERU- BRAZIL TRANSCONTINENTAL RAILROAD

BRAZIL

TOROMOCHO PROJECT (CHINALCO)

CENTRAL IIRSA

LA OROYA

CALLAO PORT

COBRIZA MINE

LIQUEFACTION PLANT

LA OROYA METALLURGICAL COMPLEX

Estimated Annual Production Project Copper 530.000 tmf Gold 160.000 Oz Silver 7.500.000 Oz Lead 16.000 tmf Zinc 641.500 tmf Copper Projects Silver Projects Gold Projects Iron Projects 19


SOUTH MACRO-REGION TERRITORY DEVELOPMENT

BRAZIL GAS PIPELINE

CAMISEA FRACTIONING PLANT

INTER-OCEANIC HIGHWAY

BOLIVIA Estimated Annual Production Project Copper 1.826.000 tmf Gold 524.000 Oz Silver 11.339.000 Oz Iron 3.500.000 tm* * Iron concentrate expansion project Marcona Actual production: 6.500.000 tm

MARCONA PORT

PACIFIC OCEAN Copper Projects Silver Projects

MATARANI PORT

ENERGY NODE 2000 MW

Gold Projects

CHILE

Iron Projects Gas pipeline Camisea Gas pipeline 20


SUSTAINABLE MINING IN PERU

Peruvian Mining contributes to the sustainable development of all regions in Peru

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Guillermo Shinno HuamanĂ­ Viceminister of Mines Ministry of Energy and Mining March 2014


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