PERUMining Sector
Febrary, 2013
STRATEGIC STRATEGIC LOCATIONLOCATION
PERUPERU
ASIA
OCEANIA
PACIFICOCEAN
ATLANTICOCEAN• Australia
• China *• South Korea *• Malaysia• Singapore *• Thailand• Japan
• Canada *• United States *• Mexico*
• Cuba• El Salvador
• Argentina• Bolivia• Chile **• Colombia
• Ecuador• Paraguay• Venezuela
• Germany• Begium & Luxembourg• Denmark• Spain• Finland• France• Netherlands• Italy• Norway• Portugal• United Kingdom• Czech Republic• Romania • Sweden• Switzerland
Peru has signed Peru has signed Bilateral Investment Bilateral Investment Treaties and Free Treaties and Free Trade Agreements, Trade Agreements, which consolidate which consolidate our policy of our policy of openness. Moreover, openness. Moreover, Peru has signed Peru has signed Double Taxation Double Taxation Agreements with Agreements with Brasil, Chile and Brasil, Chile and Canada. Canada.
Located right in the middle of South America and the World, Peru has an strategic Located right in the middle of South America and the World, Peru has an strategic location that allows easy access to Southeast Asian markets and the United States. location that allows easy access to Southeast Asian markets and the United States. Also, as a member of the Asia-Pacific Economic Cooperation (APEC) and the Also, as a member of the Asia-Pacific Economic Cooperation (APEC) and the Andean Community enjoys the advantages of being integrated to these markets.Andean Community enjoys the advantages of being integrated to these markets.
* FTA
MACROECONOMIC MACROECONOMIC INDICATORSINDICATORS
MACROECONOMIC MACROECONOMIC INDICATORSINDICATORS
MACROECONOMIC MACROECONOMIC INDICATORSINDICATORS
MACROECONOMIC MACROECONOMIC INDICATORSINDICATORS
MACROECONOMIC MACROECONOMIC INDICATORSINDICATORS
MACROECONOMIC MACROECONOMIC INDICATORSINDICATORS
MACROECONOMIC MACROECONOMIC INDICATORSINDICATORS
LEGAL STABILITYLEGAL STABILITYFOR INVESTORS FOR INVESTORS
INVESTMENTINVESTMENTGRADEGRADE
PERU IN WORLD MINERAL PERU IN WORLD MINERAL PRODUCTION RANKINGSPRODUCTION RANKINGS
Peru is the largest Peru is the largest producer of gold, zinc, tin producer of gold, zinc, tin and lead in Latin America.and lead in Latin America.
Worldwide is the third Worldwide is the third largest producer of copper, largest producer of copper, silver, zinc and tin.silver, zinc and tin.
Source: U.S.Geological Survey-USGS-, The Silver Institute; Gold Fields Minerals Services-GFMS-International Copper Study Group -ICSG-;
International Lead and Zinc Study Group-ILZSG-International Tin Research Institute - ITRI-;
International Molybdenum Association-IMOA-Instituto Latinoamericano del Hierro y el Acero - ILAFA-
MINING AND MINING AND PERUVIAN EXPORTSPERUVIAN EXPORTS
Metallic and nonmetallic Metallic and nonmetallic minerals represent almost minerals represent almost
65% of total Peruvian exports.65% of total Peruvian exports.
In the last years, Peruvian mining exports In the last years, Peruvian mining exports have increased eight times its value, and have increased eight times its value, and together represent over 65% of its total together represent over 65% of its total
exports.exports.
In its wide polymetallic and non metallic In its wide polymetallic and non metallic range, copper and gold are products that range, copper and gold are products that
lead peruvian exports.lead peruvian exports.
COPPERCOPPER
GOLDGOLD
LEADLEAD
ZINCZINC
IRONIRONTINTIN
MINING MINING INVESTMENTINVESTMENT
Source: Ministry of Energy and Mines Peru
The notable increase in mining investment in The notable increase in mining investment in Peru has lead to an historical record the year Peru has lead to an historical record the year 2012: more than US$ 8,500 millions, most of 2012: more than US$ 8,500 millions, most of
which was invested in infrastructure, which was invested in infrastructure, production and exploration.production and exploration.
MINING MINING INVESTMENTINVESTMENT
Source: Ministry of Energy and Mines Peru
MINING EXPLORATIONS INVESTMENTS (US$ MILLION)
/1
There are about 400 mining units under There are about 400 mining units under exploration and some more in early exploration and some more in early
prospecting. Exploration investments in Peru prospecting. Exploration investments in Peru have sustained its growth for over six years have sustained its growth for over six years
and the last four year it has shown significant and the last four year it has shown significant development.development.
Peru remains among the first investment Peru remains among the first investment destinations for exploration budgets destinations for exploration budgets
worldwide.worldwide.
ESTIMATED INVESTMENT PORTFOLIO: ESTIMATED INVESTMENT PORTFOLIO: TOP MINING PROJECTSTOP MINING PROJECTS
ESTIMATED ESTIMATED PORTFOLIO OF PORTFOLIO OF INVESTMENT INVESTMENT PROJECTSPROJECTS::
US$ 54,680 MillionsUS$ 54,680 Millions
The estimated The estimated portfolio portfolio includes includes important important
Expansions Expansions and New and New Projects, Projects,
mainly copper, mainly copper, gold, zinc, and gold, zinc, and
others.others.
The estimated portfolio The estimated portfolio includes important includes important
Expansions and New Expansions and New Projects, mainly copper, gold, Projects, mainly copper, gold,
zinc, and others.zinc, and others.
US$ Millions
EXPANSION 9,058
WITH APPROVED EIA 17,963
UNDER EXPLORATION 23,713
TOTAL 54,680
63.9% estimated portfolio correspond to copper projects
US$ 34,937 million
The operation of these projects next triple domestic production Current copper
Peru is the third largest producer of copper and second in reserves
worldwide
MEGAPROJECTS COPPERWITH AN INVESTMENT OF:
COPPER PROJECTSCOPPER PROJECTS
13.35% estimated portfolio correspond to gold projects
US$ 7,302 million
Peru is the largest gold producer in LATIN AMERICA
MEGAPROJECTS GOLDWITH AN INVESTMENT OF:
GOLD PROJECTSGOLD PROJECTS
SAN LUIS Ancash
RONDONI
PALLANCA
CORANICATANGA ESTEINMACULADA
CHAQUELLE
Huánuco
Junín
Cusco
Arequipa
Ayacucho
Puno
1.88% estimated portfolio correspond to silver projects
US$ 1,026 million MEGAPROJECTS SILVER
WITH AN INVESTMENT OF:
SILVER PROJECTSSILVER PROJECTS
12.40% estimated portfolio correspond to iron projects
US$ 6,780 million MEGAPROJECTS IRON,
WITH AN INVESTMENT OF:
IRON PROJECTSIRON PROJECTS
MODERN MINING IN PERUMODERN MINING IN PERU
INVESTOR
COMMUNITY STATE
WAT
ERAGRICULTURE
MINING
SUSTAINABLE DEVELOPMENT
PROJECT SUSTAINABLEDEVELOPMENT
The state came from the beginning
Derecho de Vigencia y PenalidadRegalía Minera
Aranceles e ISC
Fideicomisos Sociales
Canon Minero Impuestos y Tributos
Fondo Empleo
Empleo Directo Local, regional y nacional
Compras Locales y nacionalesApoyo a la Producción
Empleo IndirectoPrograma de Desarrollo Sostenible
MODERN MINING WITH SOCIAL MODERN MINING WITH SOCIAL ENVIRONMENTAL RESPONSIBILITYENVIRONMENTAL RESPONSIBILITY
Aporte Voluntario
Estándares Nacionales
Legislación minera - ambiental
Sistemas de Gestión AmbientalEstándares Internacionales
Respeto al ambienteEstudios ambientales Rigurosos
AMBIENTAL
Innovación tecnológica
Aporte Voluntario
SOCIAL
ECONÓMICA
We promote a sustainable mining We promote a sustainable mining development in three areas: development in three areas:
economic, social and economic, social and environmental.environmental.
We promote a continuous dialogue We promote a continuous dialogue with the communities with the aim with the communities with the aim of achieving socio-environmental of achieving socio-environmental agreements and licenses and the agreements and licenses and the strict accomplishment of all the strict accomplishment of all the international standards in force.international standards in force.
from the Mining Investor?What do we expect
• Productive investment, non-speculative
• Environmental excellence
• Social Responsibility excellence•We expect modern businessmen, integrated to the community and
compromised with its development.