Investing in Mining in Peru. A country of opportunities

Álvaro Quijandría Executive Director

The State agency for private investment promotion. Offers guidance services to investors

Promotes PPP projects in infrastructure and public services.

Promotes private investment on public assets

Promotes the special regimen of Work for Taxes.

WHAT’S THE ROLE OF

PROINVERSION?

INVESTMENT VEHICLES ON MINING

PROMOTED BY PROINVERSION

Transfer of former State-owned mining

units

ANAP (Reserved

area)

Investment on Mining

Assets

INVESTMENT PROMOTION IN FORMER STATE-

OWNED MINING UNITS

Mining

Project

Company Investment Commitment

US$

Alto Chicama Barrick Misquichilca 12 113 759

Las Bambas MMG Limited, CITIC Metal Co.

Ltd & and a filial of Guoxin

International Investment Co. Ltd

6 187 155 388

Toromocho Chinalco 2 329 661 527

La Granja Río Tinto 622 687 044

Antamina BHP Billiton, Glencore, Teck &

Mitsubishi

2 148 154 000

Cerro Verde Freeport-McMoRan 449 786 164

Main projects transferred to private investors between 1992 and 2008

Estimated Investment Amount

US$ 2 billion

Private Initiative

Under Evaluation

Estimated award: 2017

MICHIQUILLAY MINING PROJECT

Michiquillay is a copper and molybdenum

porphyritic deposit. The estimated resources

exceed 1 billion tons, with 0.63% of Cu and

0.014% of Mo, for a production of 80 Thousand

TPD of ore.

The deposit is located in Northern Peru, in the

department of Cajamarca, one of the most

promising mining regions of Peru.

It has access to nearby sources of energy,

labor, water and supporting infrastructure.

Since it is surrounded by several privately

owned mining deposits, construction of

common infrastructure could be shared

between owners of such deposits in order to

reduce investment costs.

El Galeno (Cu)

Conga (Cu, Au) La Carpa Central (Cu)

MICHIQUILLAY

(Cu)

China Linda

(Au)

Chaupiloma Sur (Au)

Cerro Negro

(Au)

San José 2 (Au)

Chaquicocha

(Au)

Northwest

(Au)

Tinajas (Au)

Castrejon (Cu,

Mo)

La Zanja

(Au)

Shahuindo (Au)

Cerro Corona (Cu,

Au)

Colorada (Au) Tantahuaytay (Au)

La Granja

(Cu)

Chota

Santa Cruz

San Miguel

San

Pablo

Contumaza

Cajamarca San Marcos

Cajabamba

Celendín

Cutervo

Hualgayoc

LA LIBERTAD

C A J A M A R C A

L A

M B

A Y

E Q

U E

A M A Z O N A S

N

A

Huamachuco

Chongoyape

Llama Desv.

Yanacuna

Querocoto

Desv.

Ciudad de

Dios

Pacasmayo

MICHIQUILLAY MINING PROJECT

ANAP (RESERVED AREA)

a

An ANAP is an area in which it is not possible to request mining petitions or claims.

INGEMMET (Geological Mining and Metallurgical Institute of Peru) is the only one authorized by MINEM to make mining prospection in those areas.

The results of prospection made by INGEMMET are available to the public; except when the promotion of an ANAP is entrusted to ProInversion.

ProInversion, in agreement with the Regional Governments, may undertake the process of promoting investment in ANAP’S.

Such area is considered an ANAP until a Transfer agreement is entered into by the investor and INGEMMET grants its concession.

Characteristics of an ANAP

Investment amount and Estimated award date under evaluation

State Initiative

Project Owner: MINEM

Estimated Award: 2018

Modality: Transfer

Agreement

JALAOCA MINING PROJECT

The deposit is located in Southern-central

Peru, in the department of Apurimac, well

known for its copper potential.

The mine zone offers conditions to be

explored for copper, gold and

molybdenum.

Interesting possibilities in two out of four

identified targets: at Pucasalla, a porphyry-

skarn Cu-Au deposit, and at Llamoja, a

porphyry Cu-Mo deposit. The deposit

potential and size shall be defined with

drilling works.

Investment amount and Estimated award date under evaluation

State Initiative

Project Owner: MINEM

Estimated Award: 2018

Modality: Transfer

Agreement

COLCA MINING PROJECT

The deposit is located in Southern-central

Peru, in the department of Apurimac, well

known for its copper potential.

It comprises a superficial extension of 14,100

hectares, in which two important mineralized

zones have been identified. These are

surrounded by other important mining

properties with defined potential.

Favorable geophysical information and lab

results point the possibility to find a possible

Copper-Gold porphyry. With drilling works,

deposit potential and size would be defined.

JALAOCA & COLCA PROJECTS

Location of

Jalaoca & Colca

Projects

ANAP COLCA

(Cu & Au)

ANAP

JALAOCA

(Cu, Mo & Au)

LOGISTICS INFRASTRUCTURE

Source: EY. Peru’s mining & metals investment guide 2017/2018.

27 projects

Estimated investmente: USD 11.8 billion

INFRASTRUCTURE AND PUBLIC SERVICES

PROINVERSION PPP PORTFOLIO 2017-2018

10

9

3

3

2

27

Energy

Transport

Health

Telecom

Water