Overview of Peru’s Mining Industry

Contents

Summary

Peru is a global leader in the mining industry; it’s one of the world’s biggest producers of base and precious metals. Currently, it is the third largest producer of copper and zinc in the world. Peru is also a major producer of gold, silver, among other minerals. The success of Peru’s mining sector stems not only from an abundance of rich natural resources, but also from an attractive legal and tax regime designed to support the industry.

Peru enjoys political and macroeconomic stability. It has a steadily growing economy, which is largely driven by mineral production. The high rates of production have attracted a large amount of inbound investment into Peru’s mining sector. An estimated US$ 59.5 billion is expected to flow into the country over the next few years.

New mines and expansion projects are expected to more than double its copper production by 2016. Much of the country is however yet to be subjected to vast exploration, leaving an immense potential for future development.

A foreign investment law guarantees the security of foreign and domestic investments. Furthermore, Peru is consistently undertaking measures to improve its business climate to attract more investment.

Peru’s economy continues to outperform both Mexico and Chile by GDP as its mining industry drives the economy with a diversity of metals. Selecting Peru as an early target market offers a long term opportunity for growing your international mining strategy.

Canadian mining suppliers should consider Peru as one of their early targets to expand internationally. Peruvian miners respect the quality of deliverable, and polite professionalism that Canadians present in carrying out their business. There has been more than 50 years of Canadian – Peruvian mining collaboration from the time of the “Wills Wagon” an early uppers drilling carriage built in Onaping Ontario. Making a clear strategy and selecting the right partner offers a high degree of confidence in making Peru a successful international program.

Minera Cerro operates an open-pit copper and molybdenum mining complex located some 20 miles southwest of Arequipa, Peru. US-based Freeport-McMoRan Copper & Gold Inc. has a 53.6% stake in Cerro Verde, through its subsidiary Cyprus Climax Metals Co
Minera Cerro operates an open-pit copper and molybdenum mining complex located some 20 miles southwest of Arequipa, Peru. US-based Freeport-McMoRan Copper & Gold Inc. has a 53.6% stake in Cerro Verde through its subsidiary Cyprus Climax Metals Co

Economic Overview

The country has had continuous economic and political stability since the early 1990’s. This growth was largely driven by prudent macroeconomic policies, investor-friendly market policies and the government’s aggressive trade liberalization strategies.

Mining is the dominant sector of the Peruvian economy. Substantial investment has flowed to the sector over the past 20 years. Peru is among the major producers of mineral commodities in the world and accounts for more than 60% of the country’s exports. Copper and gold are the most important mineral exports by value.

PE Copper Production

Pe Copper Production

Investment

The Peruvian government guarantees foreign investors legal stability on income tax regulations and dividend distributions. Peruvian laws, regulations, and practices do not discriminate between national and foreign companies. Accordingly, national treatment is offered to foreign investors. There are no restrictions on repatriation of earnings, international transfers of capital, or currency exchange practices. The remittance of dividends, interests and royalties has no restrictions either. Foreign currency may be used to acquire goods abroad or cover financial obligations so long as the operator is in compliance with the relevant Peruvian tax legislation.

Importance of the Mining Industry

The mining sector is, and has always been the key to the national economy of Peru.

Peru is considered one of the top ten richest mineral countries in the world. It is one of the world’s biggest producers of base and precious metals. Most of the world’s major mining companies, including Xstrata, Newmont, Glencore, Gold Fields,

Freeport-McMoRan, Rio Tinto, Anglo American and Barrick have operations in the country. There are also dozens of local mining companies and collaborations with major mining houses. A list of 80 such companies with coordinates and key people is available to baseline a strategy for market entry.

Currently Peru is the world’s third largest producer of copper and zinc and it is also a major producer of gold, silver, among other minerals. Peru has 13% of the world’s copper reserves, 4% of its gold, 22% of its silver, 7.6% of zinc, 9% of lead and 6% of tin reserves, according to the most recent data of the Peru’s Ministry of Energy and Mines.

It is estimated that Peru has some 200 operating mines and many major projects currently waiting to be developed as shown in an attachment. China is the largest foreign investor in Peru in mining projects, followed by the United States, Canada and Australia.

Within Latin America, Peru has, perhaps, the greatest untapped potential for new discoveries and production. Peru’s clear and simple mining law and excellent geological potential has helped the country to attract one of the largest budgets for minerals explorations and development in the world. It is believed that Peru has the capacity to double or triple current level of output, especially in base metals with continuing exploration.

Minera Chinalco Perú S.A., the local branch of Chinese-owned Aluminum Corp. of China Ltd. (Chinalco), is developing the Toromocho copper project, located 142km east of Lima in Junín region. The plant will have a capacity of 117,000t/d, yielding 1Mt/y of concentrates over a 36 year life. Its reserves are estimated in 1.5Mt. Chinalco expects to start full commercial production in the first quarter of 2015.
Minera Chinalco Perú S.A., the local branch of Chinese-owned Aluminum Corp. of China Ltd. (Chinalco), is developing the Toromocho copper project, located 142km east of Lima in Junín region. The plant will have a capacity of 117,000t/d, yielding 1Mt/y of concentrates over a 36 year life. Its reserves are estimated in 1.5Mt. Chinalco expects to start full commercial production in the first quarter of 2015.

Recent Developments

In recent years the four main forms of resource nationalism – mandated beneficiation, government ownership, restriction of exports, and increasing taxes or royalties – have spread across the world. Peru has however skirted this phenomenon by offering a balanced adjustment to the pressures of resource nationalism.

Peru’s redesign of existing tax regulations raised an extra US$1.1 billion a year for the state budget to help finance the new government; with the extent of increases moderate by world standards. Under the revised fiscal system, mining companies now pay royalties based on their operating profits, ranging from 1% to 12%, rather than the old system where they paid 1% to 3% based on sales. They also pay a new tax known as the “Special Mining Tax” based on a sliding scale, with progressive marginal rates ranging from 2% to 8.40%, of a company’s operating profits.

The fiscal changes introduced were largely supported by mining companies and according to industry analysts they have not adversely affected investment decisions or the degree of Peru’s mining sector competitiveness compared to other countries. The government continues to offer a favorable and competitive investment environment that attracts national and foreign capitals towards exploration and mining activities.

Peru offers mining investors significant commercial advantages and ample freedom to import machinery, equipment and services that they require for their mining activities at a lower cost and with less bureaucratic requirements than ever before.

Social License to Operate

As in many developing countries, achieving a social license to operate is the single most important challenge that the mining industry faces in Peru. Income and regional inequalities continue to be a source of social conflicts, which have had a negative impact on a number of mining projects.

Achieving a social license to operate is one challenge, maintaining it is another. The key to both is communicating value through the concept of shared value and, more broadly, of corporate social responsibility, which must be part of mining companies’ operations. The mining community continues to struggle to carry out this communication, based to a great extent on the rapid advancement of social media and strong environmental lobby groups.

In recent years Peru has seen a number highly publicized mega projects being postponed over environmental or community concerns, strikes and anti-mining protests, including the US$ 4.8 billion Conga project, Tia Maria (SPCC), Rio Blanco (Zijin), Cañariaco (Candente Copper). There is belief that community groups are manipulated by politicians, anti-mining NGO’s and other groups with wider political agendas.

The need for a social license to operate is readily accepted by the mining and metals sector. The Canadian Trade Commission Service have a world leading program to educate mining management on Corporate Social Responsibility as the corner stone of social license.

By managing an effective communication process highlighting the positive impact of mining through productive, profitable and sustainable development, initiatives can show the Peruvian government, communities and other stakeholders how their presence in the country can create positive economic and social contributions. This relies on working with local communities to create shared value, listening to what they want, rather than just coming up with initiatives that are not tailored to their needs.

Community support for a project is partly dependent on its economic participation and local employment is an important element of that. Meanwhile, the government is increasingly seeking to fill the gap between community expectations and existing legislation which require community consultation for the development of new projects with increased regulations.

Exploration

While Peru has not been immune to the general slowdown in overall mining exploration activity, there are still a significant number of projects actively being explored in different regions, as illustrated by the yet relatively strong volume of investment flows to fund drilling activities.

In recent years, the bulk of the exploration spending in the country has been carried out by approximately 100 Canadian based junior and major companies, representing investments worth in-or around US$ 78 billion, however, companies from the United States, Australia and China expanding beyond their borders also are becoming important investors in exploration. Canadian geophysical and exploration drilling companies are typically first on the ground to begin the mining cycle. This leads the Canadian mining supply industry to be aware very early of the potential for supplies and services.

The SNC Metal Economics Group’s (MEG) 2013 Corporate Exploration Strategy (CES) study indicates that Latin America remained the most popular destination for nonferrous exploration in 2012, attracting 25% of global total spending, a position it has held for the better part of the past two decades. Six countries – Mexico, Chile, Peru, Brazil, Argentina and Colombia traditionally attract the lion’s share of the regional total.

Customs Considerations

Customs legislation allows the temporary entry to the country, for an 18 months period of certain capital goods –included in a restrict list without the payment of the customs duties and import taxes (e.g. machinery and equipment). For these purposes, it is necessary to grant a guarantee for the non-paid taxes (besides of a compensatory interest) and the referred goods must be re-exported before the end of this term.

Shougang Hierro Perú S.A.A., a subsidiary of Chinese steel group Shougang Corp., is Peru's only iron ore producer. The Lima-based company operates the Marcona mine in Ica region, which is undergoing a US$1bn expansion to produce 10Mt/y by 2016. Shougang is one of the country's largest investors in Peru's mining sector, and has been working on its mine expansion since 2009. Despite a three week strike that ended in September, iron ore sales volumes rose 2% to 10.69Mt in 2014. Shougang Hierro's proven and probable iron ore reserves total 2.09Bt
Shougang Hierro Perú S.A.A., a subsidiary of Chinese steel group Shougang Corp., is Peru’s only iron ore producer. The Lima-based company operates the Marcona mine in Ica region, which is undergoing a US$1bn expansion to produce 10Mt/y by 2016. Shougang is one of the country’s largest investors in Peru’s mining sector, and has been working on its mine expansion since 2009. Despite a three week strike that ended in September, iron ore sales volumes rose 2% to 10.69Mt in 2014. Shougang Hierro’s proven and probable iron ore reserves total 2.09Bt

Employment

In accordance with the Peruvian Constitution, employees are protected against arbitrary dismissal. This right, called “job stability”, is granted to employees who work for the same employer for more than four hours per day in average, after a three month trial period. Once this period is completed, the employees are regarded as permanent and can only be dismissed under circumstances concerned with their behaviour at work or ability to carry out their duties.

Employers may enter into employment contracts for an undetermined period of time or for fixed terms. Fixed term contracts are expressly foreseen by Law and are basically allowed for cases such as business expansion, production increments, temporary labors, extraordinary circumstances and seasonal activities. These contracts must be entered into in writing and communicated to the labor authority.

In the event of unjustified dismissal, an employee may demand a severance payment equivalent to one and a half monthly salary per year of service (under a non-term working agreement); and, one and a half monthly salary per pending month (under a fixed term working agreement).

The maximum severance payment is twelve salaries. Alternatively, the employee can demand the restitution to the same job he had. The law allows collective dismissals under certain circumstances such as acts of God or force majeure, financial or technical streamlining, dissolution, bankruptcy or operating downsizing without having to grant the severance payment.

Canadian companies are well advised to be clear about employment standards and employee rights, when starting a subsidiary company and hiring Peruvians. Canadian supply and services are advised to look carefully at appointing Agents or Distributors as an early entry strategy until they are comfortable with the long term business potential.

Employees’ Benefits

Employers are required to provide the following benefits for employees:

  • Family allowance equivalent to PEN 65.4 (approximately).
  • One month paid vacation per year.
  • One month salary bonus in July and December.
  • One month salary per year (approximately) as severance indemnity which should be deposited in advance with a bank elected by the employee. Deposits are regarded as final payments of the accrued liability.
  • Profit sharing in cash, which is calculated on the employer’s taxable income and distributed among the employees. The rates are 5%, 8% and 10% depending on the employer’s activity (8% for mining). This benefit does not apply to companies employing less than 20 individuals. All these benefits are deductible for income tax purposes
  • Employers can negotiate with workers earning a monthly salary higher than 2 tax units (PEN S/. 7,600 in 2014) a total annual compensation, including all the benefits described above, except for the profit sharing.

It is recommended to engage Peruvian labour legal advice to be clear about the rules of engagement and the signing of labour contracts.

Expatriates

Expatriates working in Peru and foreign corporations carrying out activities in Peru are subject to Peruvian labor laws. As a general rule, foreign employees should not exceed 20% of total personnel. Additionally, wages paid to foreign employees cannot exceed 30% of total payroll cost. Such limits can however be waived for professionals and specialized technicians or management personnel, a new entrepreneurial activity or in case of a business re-conversion.

No restrictions apply to foreign individuals working in Peru with a Peruvian immigrant visa or individuals married to Peruvians. Expatriate employees should register their employment contract with the labor authorities and obtain a special non-immigrant work visa. No additional work permit is needed.

Economic Development of Canada (EDC) Risk Report

EDC is a strong partner for Canadian supply and service companies as hey venture into international markets. EDC offers a variety of services including receivable insurance, market intelligence, and most importantly B2B matchmaking events. In Peru, the major annual mining trade show and convention includes a strong B2B program organized by EDC and the Trade Commission Service.

EDC’s intelligence offers the following comments on the health of the Peruvian mining industry:

Short Term Commercial

“Following a significant decline last year due to a relative slowdown in China and a slump in metal prices, growth is expected to accelerate to around four per cent, driven by higher government spending. The central bank will continue its interventions to prevent a further drop in the Peruvian sol (down 12 per cent this year). The depreciation has been driven by low metal prices and the expectation of capital outflows as a result of full normalization of US monetary policy”.

Mid-Long Term Commercial

“Projects in the extractive and infrastructure sectors may be impacted by permitting/bureaucratic delays and social conflicts with local communities. Key challenges for companies are weak state institutions such as the judiciary, public security, and corruption. In an effort to boost foreign direct investment, the government is implementing a package of measures, including reducing red tape and simplifying the granting of environmental permits. Large infrastructure projects over the coming years, focused on transportation, offer opportunities for Canadian companies.”

Sovereign

“State finances are solid with low public debt of 20 per cent of GDP. The government has instituted prudent macroeconomic and fiscal policies to mitigate the impacts of US monetary tightening by the Federal Reserve. President Humala’s unpopularity combined with political gridlock in Congress, indicates his government is unlikely to pass any major reforms before the next presidential elections in 2016. Although populist politicians emerge periodically, especially at the regional level, future governments are likely to generally maintain the pro-investment policies in place.”

Minera Antares Peru – Haquira, a Canadian project in Peru

Peru Mining Industry – Largest Companies

Company Description
MINERA CERRO Minera Cerro operates an open-pit copper and molybdenum mining complex located some 20 miles southwest of Arequipa, Peru. US-based Freeport-McMoRan Copper & Gold Inc. has a 53.6% stake in Cerro Verde, through its subsidiary Cyprus Climax Metals Co
MINERA LAS BAMBAS Minera Las Bambas will have initial production of 400,000t/y of copper concentrate. The mine will produce copper concentrates containing payable gold and silver, and will also produce separate molybdenum concentrate. The mine is expected to produce more than 2Mt of copper in concentrate in its first five years of operation.
MINERA ANTAPACCAY Minera Antapaccay S.A., a subsidiary of Glencore plc, operates the Antapaccay copper mine in Peru’s Cuzco region. The 150,000t/y mine extends the life of Glencore’s Tintaya installations, privatized in 1993, by another 20 years. Completed at the end of 2012, it reached installed capacity in 2013. The company is also developing Coroccohuayco, a property near the Tintaya operation that has reserves of 290Mt at 1.03% copper and could produce 100,000t/y. Antapaccay aims to start up the copper mine by 2018.
HUDBAY PERU Hudbay Perú S.A.C., the local subsidiary of Canadian miner Hudbay Minerals Inc., owns the Constancia copper porphyry project in Peru’s Cusco region, comprising 36 mining concessions and covering an area of 22,516ha. In 2011, Hudbay acquired Norsemont Mining Inc. and its wholly owned Constancia mine. Production began as scheduled during the fourth quarter of 2014. Commercial production remains on track for the second quarter of 2015.
CHINALCO PERU Minera Chinalco Perú S.A., the local branch of Chinese-owned Aluminum Corp. of China Ltd. (Chinalco), is developing the Toromocho copper project, located 142km east of Lima in Junín region. The plant will have a capacity of 117,000t/d, yielding 1Mt/y of concentrates over a 36 year life. Its reserves are estimated in 1.5Mt. Chinalco expects to start full commercial production in the first quarter of 2015.
SOUTHERN PERU COPPER CORPORATION Southern Peru Copper Corp. (SPCC) is the country’s largest producer of copper. Its operations are comprised of the open pit Toquepala and Cuajone mines, and the Ilo metallurgical complex. It also co-owns the Tantahuatay gold operation in Cajamarca region with local precious metals miner Buenaventura. SPCC’s exploration projects include the Los Chancas copper-molybdenum project in Apurímac region, and the Tía María copper project in Arequipa region. SPCC is a majority-owned, indirect subsidiary of Mexican conglomerate Grupo Mexico.
MINERO HORIZONTE Consorcio Minero Horizonte S.A. (CMHSA) is a group engaged in the exploration and production of gold in Peru by means of three operational units: Parcoy, Culebrillas and Untuca (part of the Cori Puno company). CMHSA also has operations in the energy sector through its energy company Aguas y Energía Perú S.A. with which it is developing hydroelectric plants Piás 1 and 2, as well as the Yuracyacu hydroelectric project. CMHSA is privately held by the Navarro-Grau family and was founded in 1978.
MINERA ANTAMINA Compañia Minera Antamina S.A. engages in the production of copper, zinc and molybdenum concentrates, and silver and lead by-products. In terms of volume of operations, the miner is one of the country’s leading copper and zinc concentrate producers and operates one of the world’s ten largest mines. Mining is done by conventional open-pit methods. Production and sales activities are carried out through the following operational units: a mine, a concentrator and auxiliary units, a tailings dam, a slurry pipeline and a port facility (Punta Lobitos). The company estimates a reserve base of around 550Mt. Minera Antamina is controlled by multinational resource group BHP Billiton Ltd. and Anglo-Swiss Glencore plc.
SHOUGANG HIERRO PERU Shougang Hierro Perú S.A.A., a subsidiary of Chinese steel group Shougang Corp., is Peru’s only iron ore producer. The Lima-based company operates the Marcona mine in Ica region, which is undergoing a US$1bn expansion to produce 10Mt/y by 2016. Shougang is one of the country’s largest investors in Peru’s mining sector, and has been working on its mine expansion since 2009. Despite a three week strike that ended in September, iron ore sales volumes rose 2% to 10.69Mt in 2014. Shougang Hierro’s proven and probable iron ore reserves total 2.09Bt
BUENAVENTURA Buenaventura S.A.A. is a Peruvian miner engaged in the exploration, mining, development and processing of gold, silver and other precious metals. The company, the country’s largest locally owned precious metals producer, operates several mines in Peru (Orcopampa, Uchucchacua, Poracota, Tantahuatay, La Zanja, Rio Seco, Julcani, Antapite and Mallay) and has controlling interest in mining companies Cedimin and El Brocal. Buenaventura, through a JV with Newmont Mining Corp., also owns 43.7% of Yanacocha, Latin America’s largest gold mine, and 19.6% of copper producer Cerro Verde. The company recently announced that it will start operations at its Chucapaca gold-copper project by 2018. Buenaventura was founded in 1953 and is headquartered in Lima, Peru.
MINERA YANACOCHA Minera Yanacocha S.R.L. (Yanacocha), the JV between US-based Newmont Mining and local mining company Buenaventura, is a Peruvian mining company incorporated in 1992, with mining operations in the Cajamarca district. Its flagship project is the Minas Congas gold-copper operation. Newmont suspended construction at Conga in 2011 due to violent protests over water use. Since then, Minera Yanacocha has been working on reservoir projects at the site to quadruple the local water supply. Conga is one of the biggest investment projects in Peru’s mining portfolio. Average output over the first five years has been estimated at 650,000-750,000oz/y of gold and 160M-210Mlb/y of copper. The company is considering developing the troubled project along with neighboring deposits, like Michiquillay or Galeno.
VOLCAN Volcan Compañía Minera S.A.A. is a Peruvian polymetallic miner engaged in the exploration and production of zinc, copper, gold, silver, and lead in the country’s Sierra Central region. The company is the world’s fourth largest producer of zinc and silver, as well as Peru’s largest producer of zinc and silver. Its main operations include the Alpamarca, Animón, Cerro de Pasco, Chungar, Vinchos and Yauli mining units. Volcan completed its silver oxides project and Alpamarca silver mine in 2014, part of a US$1bn expansion project. The projects will boost annual silver output to 24-24.3Moz, zinc production to 288,000-295,000t and lead to 58,000-62,000t. Volcán was founded in 1943 and is based in Lima, Peru.
EMPRESA MINERA LOS QUENUALES Minera Los Quenuales, a Peruvian subsidiary of Glencore International, owns and operates the Iscaycruz and Yauliyacu mines in the Central Highlands of Peru. The Iscaycruz operations, which comprise underground and open pit mines, produce zinc and lead concentrates. Yauliyacu, which consists of an underground mine and a concentrator plant, produces zinc and lead/silver concentrates. Minera Los Quenuales was founded in 1990 and is based in Lima, Peru.
MINERA PODEROSA Poderosa is a Peruvian precious metals miner which operates an underground gold mine and two production plants in northern Peru’s La Libertad region. The mine has been producing since 1982. Its high-grade narrow veins, including on Jimena, Glorita, Choloque and Atahualpa, are mined using conventional, mechanized underground methods. The ore is treated in the 200t/d Santa Maria or 600t/d Marañón mills followed by cyanide leaching and Merril Crowe processes. The company also owns the Victoria metal refinery and local company Sociedad Eléctrica Lavasen, formed to develop the Lavasen-Quishuar hydroelectric project, that aims to satisfy the firm’s energy needs. Minera Poderosa was founded in September 1980 and is based in Lima, Peru.
MILPO ANDINA Peruvian mining group Compañía Minera Milpo S.A.A. is engaged in the mining of copper, gold, silver, lead and zinc in Peru and Chile. The firm has three mining units in Peru: El Porvenir and Atacocha in Pasco region and Cerro Lindo in Ica region. Milpo also operates the Iván mine and refinery in northern Chile’s Antofagasta region (II). The company acquired a controlling stake in Peruvian miner Atacocha in late 2008. In 2011 Milpo completed the acquisition of Vancouver-based Inca Pacific Resources, which previously held the contract to develop the Magistral copper-molybdenum project in Ancash region. Its other projects include Pukaqaqa (copper-gold) and Hilárion (zinc). The Lima-based company plans to complete work by 2016 on the integration of its El Porvenir and Atacocha zinc-lead mines. Milpo was founded in 1949 and is controlled by Brazil’s Votorantim Metais-Cajamarquilla S.A.
MARCOBRE Marcobre, a subsidiary of Peruvian miner Minsur, offers copper mining services. The company is the owner of the Marcona copper property and Mina Justa red metal project in southern Peru. Its main asset, Mina Justa, has a JORC compliant resource of 413Mt grading 0.79%, and its expected start date is in 2013 with average production of 110,000t/y over a 10-year mine life. Marcobre was founded in 2004 and is based in San Juan de Miraflores, Peru.
MINERA MISKI MAYO Compañía Minera Miski Mayo S.R.L., a subsidiary of Brazilian mining giant Vale, explores and produces minerals such as potassium, kaolin and phosphate. The company owns the Bayóvar mine in Peru, an open-pit operation for extracting phosphate rock, which is mostly used in fertilizers. Miski Mayo is based in Lima, Peru.
MINERA RAURA Peruvian polymetallic miner Compañía Minera Raura S.A. is engaged in the exploration, development and production of non-ferrous minerals and minerals such as zinc, lead and copper concentrates. Founded in 1960, the company mines at the San Miguel de Cuari operation in Peru’s Huánuco region. Raura, which is controlled by the Breca Group, produced 24,006t zinc, 12,188t lead, 1,752t copper and 64,957kg silver in 2014.
MINERA ATACOCHA Peruvian polymetallic miner Compañía Minera Atacocha S.A.A. is engaged in the mining, extraction, refining and sale of mineral resources, including lead, copper, zinc, silver, and gold. It operates the Atacocha and Santa Bárbara mining units in Peru’s Pasco region. The company also owns two hydro plants, Marcopampa and Chaprin, with an installed capacity of 6.6MW. Minera Atacocha was founded in 1936 and is controlled by local company Compañía Minera Milpo S.A.A.

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Peru Investment per Category 2016

Plant Equipment

Company 2016
SOUTHERN PERU COPPER CORPORATION SUCURSAL DEL PERU $38 M
COMPAÑIA MINERA ANTAPACCAY S.A. $38 M
SOCIEDAD MINERA CERRO VERDE S.A.A. $30 M
MINERA CHINALCO PERÚ S.A. $26 M
MINSUR S.A. $12 M
SOCIEDAD MINERA EL BROCAL S.A.A. $9 M
CIA MINERA HUAYCOLORO S.A.C. $9 M
COMPAÑÍA MINERA MILPO S.A.A. $5 M
COMPAÑIA MINERA SANTA LUISA S.A. $3 M
COMPAÑIA MINERA SAN IGNACIO DE MOROCOCHA S.A.A. $3 M
Other ( 2015= 107 Companies; 2016= 101 Companies) $28 M
Total $202 M

Mining Equipment

Company 2016
SOUTHERN PERU COPPER CORPORATION SUCURSAL DEL PERU $68 M
COMPAÑIA MINERA ANTAPACCAY S.A. $53 M
COMPAÑIA MINERA ANTAMINA S.A. $40 M
SOCIEDAD MINERA CERRO VERDE S.A.A. $34 M
MINERA YANACOCHA S.R.L. $10 M
MINERA CHINALCO PERÚ S.A. $9 M
MINERA LA ZANJA S.R.L. $7 M
COMPAÑÍA DE MINAS BUENAVENTURA S.A.A. $7 M
COMPAÑIA MINERA COIMOLACHE S.A. $5 M
MILPO ANDINA PERU S.A.C. $5 M
Other ( 2015= 237 Companies; 2016= 222 Companies) $73 M
Total $311 M

Exploration Expenditures

Company 2016
COMPAÑÍA DE MINAS BUENAVENTURA S.A.A. $82 M
COMPAÑIA MINERA PODEROSA S.A. $34 M
CONSORCIO MINERO HORIZONTE S.A. $20 M
MARCOBRE S.A.C. $16 M
COMPAÑIA MINERA ZAFRANAL S.A.C. $12 M
COMPAÑIA MINERA ANTAMINA S.A. $9 M
MINERA AURIFERA RETAMAS S.A. $9 M
EXPLORACIONES MINERAS SAN RAMON S.A. $9 M
ANABI S.A.C. $7 M
COMPAÑIA MINERA ATACOCHA S.A.A. $6 M
Other ( 2015= 333 Companies; 2016= 306 Companies) $128 M
Total $332 M

Exploration Drilling

Company 2016
COMPAÑIA MINERA ANTAPACCAY S.A. $361 M
CONSORCIO MINERO HORIZONTE S.A. $142 M
LA ARENA S.A. $88 M
TREVALI PERU S.A.C. $27 M
SHAHUINDO S.A.C. $20 M
HUDBAY PERU S.A.C. $18 M
TITAN CONTRATISTAS GENERALES S.A.C. $18 M
COMPAÑIA MINERA MISKI MAYO S.R.L. $17 M
UNION ANDINA DE CEMENTOS S.A.A. $15 M
MINERA IRL S.A. $15 M
Other ( 2015= 277 Companies; 2016= 274 Companies) $126 M
Total $846 M

Infrastructure Construction

Company 2016
SOUTHERN PERU COPPER CORPORATION SUCURSAL DEL PERU $215 M
COMPAÑIA MINERA ANTAMINA S.A. $120 M
HUDBAY PERU S.A.C. $91 M
SHOUGANG HIERRO PERU S.A.A. $76 M
SHAHUINDO S.A.C. $56 M
MINERA CHINALCO PERÚ S.A. $53 M
ANGLO AMERICAN QUELLAVECO S.A. $50 M
LA ARENA S.A. $23 M
MILPO ANDINA PERU S.A.C. $20 M
COMPAÑIA MINERA ANTAPACCAY S.A. $17 M
Other ( 2015= 248 Companies; 2016= 226 Companies) $146 M
Total $869 M

Mine Preparation

Company 2016
COMPAÑÍA DE MINAS BUENAVENTURA S.A.A. $59 M
COMPAÑIA MINERA ARES S.A.C. $40 M
MINERA YANACOCHA S.R.L. $37 M
VOLCAN COMPAÑÍA MINERA S.A.A. $31 M
SHOUGANG HIERRO PERU S.A.A. $30 M
LA ARENA S.A. $19 M
CONSORCIO MINERO HORIZONTE S.A. $17 M
EMPRESA ADMINISTRADORA CHUNGAR S.A.C. $9 M
COMPAÑIA MINERA PODEROSA S.A. $8 M
EMPRESA MINERA LOS QUENUALES S.A. $8 M
Other ( 2015= 212 Companies; 2016= 187 Companies) $66 M
Total $325 M

Peru Investment per Stage 2016-2021

Expansion

Project Mineral Investment
SOUTHERN PERU COPPER CORPORATION Ampliación Toquepala Cu 1,200
COMPANIA MINERA MISKI MAYO S.R.L. Ampliación Bayovar Phosphate 520
SHOUGANG HIERRO PERU S.A.A. Ampliación Marcona Fe 1,500
MINERA CHINALCO PERÚ S.A. Ampliacion Toromocho Cu 1,350
MINERA BARRICK MISQUICHILCA S.A. Ampliacion Lagunas Norte Au 640

Approved Construction

Project Mineral Investment
ANGLO AMERICAN QUELLAVECO S.A. Quellaveco Cu 5,000
MINERA YANACOCHA S.R.L. Minas Conga Cu, Au 4,800
COMPAÑÍA MINERA ARES S.A. Crespo Au – Ag 120
MINERA SHOUXIN PERU S.A. Explotacion de relaves Cu, Fe, Zn 239
SHAHUINDO S.A.C. Shahuindo Au 132
BEAR CREEK MINING COMPANY – SUC. DEL PERU Corani Ag 664
MINERA KURI KULLU S.A. Ollachea Au 180
FOSFATOS DEL PACIFICO S.A.-FOSPAC Proyecto Phosphate Phosphate 500
SOUTHERN PERU COPPER CORPORATION Tia Maria Cu 1,400
COMPAÑÍA DE MINAS BUENAVENTURA S.A.A. Tambomayo Au, Ag 340
JINZHAO MINING PERU S.A. Pampa de Pongo Fe 1,500
COMPAÑIA MINERA MILPO S.A.A. Pukaqaqa Cu-Mo 706
COMPAÑÍA MINERA MIILPO S.A.A. Magistral Cu 300
ARIANA OPERACIONES MINERAS S.A.C Ariana Cu, Zn, Au, Ag 200

Exploration

Project Mineral Investment
MARCOBRE S.A.C. Marcobre (Mina Justa) Cu 744
PROINVERSION Michiquillay Cu 1,000
APURIMAC FERRUM S.A. Hierro Apurimac Fe 2,300
CAÑARIACO COPPER PERU S.A. Cañariaco Cu 1,599
COMPAÑIA MINERA MILPO S.A.A. Hilarión Zn 470
COMPAÑIA MINERA QUECHUA S.A. Quechua Cu 490
JUNEFIELD GROUP S.A. Don Javier Cu 600
LUMINA COPPER S.A.C. Galeno Cu, Mo, Au, Ag 3,500
MINERA ANTARES PERU S.A.C. Haquira Cu-Mo 2,800
MINERA HAMPTON PERU S.A.C Los Calatos Cu-Mo 655
MINERA CUERVO S.A.C. Cerro Ccopane Fe
RIO BLANCO COPPER S.A. Río Blanco Cu 1,500
RIO TINTO MINERA PERU LIMITADA S.A.C. La Granja Cu 1,000
SOUTHERN PERU COPPER CORPORATION Los Chancas Cu 1,560
AMERICAS POTASH PERU S.A. Salmueras de Sechura Potasio 125
COMPAÑIA MINERA VICHAYCOCHA S.A. Rondoni Cu 350
MINERA AQM COPPER PERU S.A.C. Zafranal Cu, Au 1,122
EXPLORACIONES COLLASUYO S.A.C. Accha Zn, Pb 346
MANTARO PERU S.A. Fosfatos Mantaro Phosphate 850
CORPORACION MINERA CENTAURO S.A.C. Quicay II Au, Cu 90
ANABI S.A.C Anubia Cu
MINSUR S.A. Explotacion de relaves Bofedal 2 (B2) Sn 165
PANORO APURIMAC S.A. Cotabambas Cu, Au, Ag 1,963
EL MOLLE VERDE S.A.C. Trapiche Cu, Mo, Ag 1,000
PLATEAU URANIUM Macusani Uranio 300

Resources

Geological, Mining and Metallurgical Institute – INGEMMET

Geological Society of Peru

Ministry of Labor and Employment Promotion – MTPE

Institute of Peruvian Mining Engineers

Economic Development Canada (EDC) – Peru country snapshot

Trade Commission Service, Lima, Peru
Alexandra Laverdure, Trade Commissioner
Tel: 511 319 3353
Alexandra.laverdure@international.gc.ca

KPMG Peru Mining Guide

PwC, Doing Business in Peru

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