During Southern Peru Copper Corporation's participation in PERUMIN 36, Oscar Gonzalez Rocha, the CEO, shared with Instituto de Ingenieros de Minas del Peru [the Peruvian Institute of Mining Engineers] the company's goals for the mining convention, the current situation of its projects, the investment objectives for the current year and the opportunities of Tia Maria, the copper mining operation with the longest delay in its investment portfolio in our country.

What is the relevance of PERUMIN 36 for Southern Peru and what are its expectations?

PERUMIN 36 is very important both at the national and international levels because it enables national industries to present the progress and projects of the mining industry in order to propose how they can engage in this driving force that promotes their development, as well as the development of the towns and regions where the mining industry operates or where there are expectations of transforming a deposit into a mining operation. Something similar happens with the world's industries that manufacture equipment used in mining. PERUMIN is a showcase where technological advances are presented in order to improve operations and make them more efficient. For Peru at large it is very significant because during that week national authorities express their vision of the country and how they propose to improve the acceptance of the mining activity, as well as to improve the use of resources derived from mining for the benefit of decentralized development.

What news or information will be shared at the event?

Southern Peru continues to develop its Exploration program at the Michiquillay project in Cajamarca, and in the case of Los Chancas in Apurimac we continue to engage in dialogue with the communities to develop it in the best possible way. Nevertheless, the authorities are responsible for preventing mining concessions from being invaded. Fortunately, progress is also being made in this regard. The pre-feasibility and feasibility studies are continuing their regular course, as well as the surface land negotiation processes. Regarding the Tia Maria project, we believe that there has been significant progress in the social acceptance of the project; the population requires employment opportunities and the strengthening of the joint work with farmers in the Tambo valley is yielding the expected results.

How much do you expect to invest and produce this year and how much progress has been made?

During the first four months of the year, we have produced approximately 110,000 metric tons of fine copper; we are aligned with our estimates for the current year. The capital investments that we have estimated for the current year, as Southern Copper, which includes Southern Peru, will be approximately $1.1 billion. In the case of Southern Peru, specifically, the capital investment amounts to $350 million.

What progress are you making with the implementation of your mining projects?

We believe that we are moving forward as planned; however, we prefer not to give projections because evolving political and social issues are having an impact that has affected the entire industry, beyond the technical and economic feasibility of a particular project. Nevertheless, we miners are optimistic; we believe in the importance and relevance of our projects and their favorable impact in economic, social and environmental terms because each one of them will use the most modern and environmentally friendly technology.

Why is Tia Maria important for Arequipa and what is its level of acceptance?

The Tia Maria project has a delay of approximately 15 years. With the resources it would have generated during that period, the Tambo valley would now have access to controlled water, overcoming the problems caused by the dry seasons and could have undertaken an agricultural export program that meets local demand and allows for the development of agro-livestock farming. Tia Maria will be a great boost for the province of Islay, because it will strengthen several drivers of development: agriculture, livestock farming, fishing, the energy node, mining, metal mechanics, among others, as well as services for the benefit of the population. However, the time elapsed has served as experience and we must always look to the future with optimism.

What new technologies did you adopt for operational excellence?

The Tia Maria project, due to the characteristics of its deposits, namely La Tapada and Tia Maria, will use the solvent extraction system to achieve the detachment of copper from the rock and recover it through the electrodeposition system to finally transform it into copper cathodes of 99.999% purity. This hydrometallurgical system does not generate tailings or fumes released into the environment. We use it in the ore heaps at Cuajone and Toquepala without any adverse effect on the environment or the workers who are directly in contact with these operations. There will be no impact on agriculture or people.