PPT Investment Opportunities in Mining - 2007 May

Investment Investment Opportunities in MiningOpportunities in Mining

Agenda

I. World leader in mining production

II. Mining Investment

III. World Class Deposits

IV. Main mineral products

I. Peru: World leader in mining production

Latin America WorldwideCopper 2 3Gold 1 5Zinc 1 3Silver 1 1Lead 1 4Tin 1 3Molybdenum 2 4Bismuth 2 3Tellurium 1 2

Production Ranking 2006

Source: U.S.G.S…………………

Peru:Current Production & Resources

(as a Percentage of Global Figures)

CommodityProduction

2006 ResourcesGold 8.4% 4.6%Copper 6.9% 6.4%Zinc 12.1% 4.3%Silver 16.4% 6.5%Tin 15.5% 9.1%Molybdenum 9.8% 1.2%

Note: Calculated from USGS published figures for year 2006Resources: Measured + Indicated

Source: Miguel Cardozo (2006) Geology and Mineral Potential

Mineral Exports(US$ million)

2,731 2,747 3,008 3,220 3,205 3,8094,690

7,124

9,760

14,716

-1,000

1,000

3,000

5,000

7,000

9,000

11,000

13,000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Source: Central Reserve Bank of Peru

Mineral Exports(US$ million)

Products 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Copper 1198.3 1052.2 1096.3 778.8 776.3 932.6 985.6 1187.1 1260.5 2446.0 3360.3 6034.4

Tin 87.7 108.6 133.2 118.6 132.9 170.2 149.5 155.4 211.0 350.7 269.3 332.1

Iron 100.1 83.9 76.5 96.4 66.7 66.6 81.4 82.9 94.1 128.4 216.1 256.0

Gold 462.9 579.3 500.1 928.5 1192.5 1144.7 1166.2 1500.7 2101.6 2383.1 3165.5 4048.3

Silver 109.7 119.5 104.8 130.6 169.3 179.5 168.6 173.7 191.0 260.2 280.6 478.6

Lead 258.3 274.3 237.0 208.7 177.1 190.4 196.0 210.8 201.4 389.1 491.4 712.6

Zinc 325.5 400.8 539.3 445.2 462.4 495.8 419.4 428.9 528.7 576.8 805.1 1991.3Molybdenum 54.9 26.5 32.3 26.9 24.3 33.1 32.9 64.4 94.6 406.7 1149.4 838.3

Source: Central Reserve Bank of Peru

II. Mining Investment in Peru

YANACOCHALA VIRGENSANTA ROSAQUIRUVILCA

PIERINA

SANTA LUISA

UCHUCCHAQUA

COLQUISIRI

CASAPALCA

PERUBAR

CORONA

SHOUGANG

LAYTARUMAARCATA

CUAJONE

CASTROVIRREYNA

CARAVELI

PODEROSAHORIZONTE

RETAMAS

ANTAMINA

RAURA

ATACOCHAMILPO

HUARONEL BROCAL CHUNGARVOLCAN

SIMSA

AUSTRIA DUVAZCORONAVOLCAN

COBRIZA

JULCANI

MADRE DE DIOSMINAS CANARIA

SELENE

BHP TINTAYA

MINSUR

ARES

ORCOPAMPA

ARUNTANI

TOQUEPALACERRO VERDE

Leyenda

Cobre

Oro

Plata

Estaño

Zinc

Hierro

ISCAYCRUZ

ANTAPITE

ALTO CHICAMALAGUNAS NORTE

RIO BLANCO

LAS BAMBAS

TOROMOCHO

BAYOVAR

MICHIQUILLAY

LA GRANJA

Mines under operation andmain mining projects

Fuente: Ministerio de Energía y Minas, 2005

The geologic potential in Latin America % (1)

Source: Fraser Institute Annual Survey of Mining Companies 2006/2007

465254

596870

747676

0 10 20 30 40 50 60 70 80

PerúChile

MéxicoBrasil

ArgentinaEcuador

ColombiaBolivar

Venezuela

Encourages investment

(1) Mineral Potential assuming no land use restriction in place and assuming Industry “Best Practices”, Table A2, p.59.

Preferred mining investment destination

Source: Metals Economic Group, 2007

Other Countries

31%

China3%

Mongolia4%

Brazil4%

Canada19%

Australia11%

United States8%

Mexico6%Russia

5%

Peru5%

South Africa4%

Top 10 Countries Exploration Investment 2006

US$ 356.5 Million

TOTAL MINING COMPANIES INVESTMENT(US$ million)

387

1.102 1.1151.236

1.502

1.146

420 462

850

1.182

1.559

1.136

0

200

400

600

800

1.000

1.200

1.400

1.600

1.800

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005(e) 2006(e) 2007(f)

,,

(e): Estimated(f): ForecastedSource: Central Reserve Bank of Peru

Growing interest in exploration

Mining Rights Applications(Number)

2.844

1.687

3.045 3.294

5.130 5.052

6.748

0

1.000

2.000

3.000

4.000

5.000

6.000

2000 2001 2002 2003 2004 2005 2006

Source: Instituto Nacional de Concesiones y Catastro Minero

Growing interest in exploration

Mining Rights Applications(Ha)

1.490.125

716.679

1.465.519

2.247.988 2.329.252 2.253.871

3.187.880

0500.000

1.000.0001.500.0002.000.0002.500.0003.000.0003.500.000

2000 2001 2002 2003 2004 2005 2006

Source: Instituto Nacional de Concesiones y Catastro Minero

Main International Companies in PeruAnglo American (South Africa)Barrick Gold Corp. (Canada)BHP Billiton (Australia)Sumitomo Metal Mining (Japan)Doe Run (USA)Glencore (Switzerland)Grupo Mexico (Mexico)Votorantim (Brazil)Vale Do Rio Doce (Brazil)Noranda (Canada)Newmont Mining Corp.(EEUU)Gold Fields Ltd.(South Africa)Phelps Dodge (USA)/FreeportRio Tinto (UK)Shougang Corporation (China)Teck Cominco (Canada)Xstrata (Switzerland)

• Foreign investors have achieved internationally recognized results (e.g. Alto Chicama prize PDAC – Prospectors and Developers Association of Canada, for the best discovery in the world).

• Peru has received investments of US$ 1.3 billion (1992-2005), and additional investment commitments for US$ 6.6 billion.

• High potential in non-metallic mining in: common phosphates rock, diatomite, boron, bentonite, travertine marble, among others.

III. Mining Sector Advantages

Yanacocha (gold)

Las Bambas(copper)

Antamina (copper/zinc)

Alto Chicama(gold)

III. World Class Deposits

World – class ore deposites in Peru

• High – Sulphidation Epithermal Gold- Yanacocha: +60 million oz of gold- Pierina: +8 million oz of gold- Alto Chicama: +9 million oz of gold

• Cu – Zn Skarn Deposits– Antamina: 500 MT @ 1.3% Cum 1% Zn

• Polymetallic Replacement Deposits– Cerro de Pasco: +120 Mt @ 7.2% Zn, 2.3% Pb– San Gregorio: +70 Mt @ 7.4% Zn, 2.2% Pb


World – class ore deposits in Peru

• Copper Porphyries– Cuajone: 1,200 Mt @0.64% Cu– Toquepala: 770 Mt @ 0.74% Cu

• IOCG– Mina Justa: 412 Mt @0.62%

• Iron ore deposits– Marcona: 1,800 Mt @ 53.3% Fe


IV. Main mineral products

Copper production (MT)

Source: Ministry of Energy and Mines

0

200.000

400.000

600.000

800.000

1.000.000

1.200.000

Copper 409.693 485.595 506.498 483.338 536.387 553.924 722.355 844.553 842.579 1.053.574 1.009.800 1.048.897

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Priv. Cerro Verde

Priv. Tintaya

Antamina

Paraliz. Tintaya

Reinic.Tintaya

Copper Mining Companies


2006

Antamina 37,3%

Southern 34,5%

Xstrata Tintaya11,0%

Condestable 1,9%

Others4,8%

Doe Run 1,6%

Cerro Verde9,0%

Copper Mining Companies


Local Company Headquarter / Economic

Group Representantive Adress Phone Email

Compañía Minera Antamina S.A.

Xstrata,BHP-Billiton Plc,Teck-Cominco, Mitsubishi

Ian Kilgour

La Floresta Nº 479, 4º piso - Edf. Parque Las Lomas, Chacarilla

511 372-6228 [email protected]

Southern Peru Copper Corporation Suc.del Perú

Grupo México Oscar González Rocha

Av. Caminos del Inca 171, Chacarilla


Xstrata Tintaya S.A. Xstrata Plc. José Marún

Monte Rosa 271, Of. 7b, Chacarilla del Estanque - Surco

511 372-2233 (084) – 301150

[email protected]

Sociedad Minera Cerro Verde S.A.

Phelps Dodge Corp. John Broderick Av. Alfonso Ugarte

304 - Arequipa (054) 28-3363 [email protected]

Compañía Minera Condestable S.A.A.

Trafigura Beheer / CORMIN S.A.

Thomas Savage Manuel Roaud y Paz Soldan 364 2do Piso.


Doe Run Perú S.R.Ltda.

Doe Run Company

Juan Carlos Huyhua

Av. Víctor Andrés Belaunde 147, Vía Principal 155 - Torre Real 3, piso 9


Gold production (MT)


0

50

100

150

200

250

Gold 58 65 78 94 128 133 139 158 173 173 208 203

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Sipán

PierinaAres

Antapite

AruntaniQuicay

San SimónAlto ChicamaTucari

Gold Mining Companies


2006

Barrick25,5%

Aruntani3,2%

Yanacocha40,0%

Others14,2%

Horizonte2,5%

Ares3,0%

Lavaderos MdD.7,8%

Buenaventura3,9%

Gold Mining Companies


Local Company

Headquarter / Economic

Group Representantive Adress Phone Email

Minera Yanacocha S.R.L

Newmont Gold

Ing. Carlos Santa Cruz

Av. Camino Real 348, Torre del Pilar, oficina 1001


Minera Barrick Misquichilca S.A.

Barrick Gold Corp. Igor Gonzales

Pasaje Los Delfines 159, Piso 3 - Las Gardenias


Aruntani S.A.C. MDH S.A.C

Guido del Castillo Echegaray

Av. Principal N° 560, Of 402


Consorcio Minero Horizonte S.A.

Navarro Grau Félix Alberto Navarro Grau

Jr. Crane 102, Of. 5-6, Urb, Jacaranda - San Borja.

618-1000

[email protected]

Compañía Minera Ares S.A.C.

Grupo Hochschild

Miguel Aramburu Álvarez Calderón

Psje.El Carmen N°180 Urb.El Vivero Monterrico


Compañía Minera Aurifera Santa Rosa S.A.

Grupo Sanchez-Paredes -COMARSA-

Orlando Sanchez Paredes

Av. Nicolás Ayllón 1928-1944 – Ate.


Compañía de Minas Buenaventura S.A.A.

Grupo Buenaventura

Roque Benavides

Carlos Villarán 790, Santa Catalina


Minera Aurifera Retamas S.A. (Marsa)

Marsano Francisco Conroy Lanatta

Av. Trinidad Moran 821 - Lince

4117400

[email protected]

Silver production (MT)


0

5001,000

1,5002,000

2,500

3,0003,500

4,000

Silver 1,929 1,977 2,090 2,025 2,231 2,438 2,571 2,870 2,921 3,060 3,186 3,471

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Ares Pierina

Antamina

Huaron (reinicio)

AruntaniQuicay Perubar

Alto Chicama

Silver Mining Companies


2006

Ares 10,4%

El Brocal9,3%Antamina

8,7%

Others38,7%

Los Quenuales 5,0% Quiruvilca

5,2%

Volcan11,9% Buenaventura

10,9%

Silver Mining Companies2006

Silver Mining Companies


Local Company Headquarter /

Economic Group

Representantive Adress Phone Email

Compañía de Minas Buenaventura S.A.A.

Grupo Buenaventura Roque Benavides Carlos Villarán 790,

Santa Catalina 511 419-2500 [email protected]

Compañía Minera Ares S.A.C.

Grupo Hochschild

Miguel Aramburu Álvarez Calderón

Psje.El Carmen N°180 Urb.El Vivero Monterrico


Volcan Compañia Minera S.A. A. Grupo Volcan Jacob Timmers

Maat Gregorio Escobedo 710, piso 3



Xtrata,BHP-Billiton,Teck-Cominco, Mitsubishi

Ian Kilgour La Floresta Nº 479, 4º piso - Edf. Parque Las Lomas, Chacarilla


Empresa Minera Los Quenuales S.A.

Grupo Glencore

Rogerio Fernandes

Pasaje Los Delfines 159, piso 8, Urb. Las Gardenias


Sociedad Minera El Brocal S.A.

Grupo Buenaventura

Ysaac Cruz Ramirez

Faustino Sánchez Carrión 451 / 479


Pan American Silver Perú S.A.C. Minas Quiruvilca

Pan American Silver Corp.

Andrés Antonio Dasso Ch.

Av. La Floresta 497,Of. 301, Chacarilla del Estanque

511-618-3300

[email protected]

Zinc production (MT)


0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

Zinc 692,290 760,353 867,691 868,757 899,524 910,303 1,056,629 1,232,997 1,372,790 1,209,006 1,201,300 1,201,794

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Iscaycruz

Priv. Centromin

Antamina

Amp. Chungar y Brocal

Amp. Antamina

Zinc Mining Companies


2006

Volcan19,4%

Antamina 14,8%

Milpo 6,6%

El Brocal 5,8%

Chungar 5,2%

Atacocha5,0%

Others22,8%

Santa Luisa 3,9%

Los Quenuales 16,6%

Zinc Mining Companies


Local Company Headquarter / Economic Group Representantive Adress Phone Email

Volcan Compañia Minera S.A. A. Grupo Volcan Jacob Timmers

Maat Gregorio Escobedo 710, piso 3 511 219-4000 [email protected]

Compañía Minera Milpo S.A. Grupo Berthel Abraham

Chahuan Av. San Borja Norte 523 511 710-5500 [email protected]

Empresa Minera Los Quenuales S.A.

Grupo Glencore Rogerio Fernandes




Xtrata,BHP-Billiton Plc,Teck-Cominco, Mitsubishi

Ian Kilgour

La Floresta Nº 479, 4º piso - Edf. Parque Las Lomas, Chacarilla


Compañía Minera Atacocha S.A.A.

Compañía Minera Atacocha S.A.

Juan José Herrera Tavara

Av. Javier Prado Oeste 980 511 612-3600 [email protected]

Sociedad Minera El Brocal S.A. Grupo Buenaventura Ysaac Cruz

Ramirez Faustino Sánchez Carrión 451 / 479 511 463-9055 [email protected]

Compañía Minera Santa Luisa S.A.

Mitsui Mining & Smelting Co. Ltd. Minoru Machida

Av. República de Panamá 3531, piso 15 San Isidro

511-2212-484 [email protected]

Lead Production (MT)


0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

Lead 237,597248,929262,466 257,713 271,782 270,576289,548 305,651308,874 306,211 318,554 313,325

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Iscaycruz

Priv. Centromin Antamina Amp. Atacocha

Lead Mining Companies


2006

Volcan 20,9%

El Brocal 11,7%

Chungar 8,0%

Milpo7,0%

Los Quenuales6,9%

Atacocha 6,3%

Santa Luisa4,8%

Perubar4,3%

Others30,1%

Lead Mining Companies



Volcan Compañia Minera S.A. A. Grupo Volcan Jacob Timmers Gregorio Escobedo

710, piso 3 511 219-4000 [email protected]

Compañía Minera Atacocha S.A.A.

Compañía Minera Atacocha S.A.

Juan José Herrera Tavara

Av. Javier Prado Oeste 980 511 612-3600 [email protected]

Sociedad Minera El Brocal S.A.

Grupo Buenaventura

Ysaac Cruz Ramirez

Faustino Sánchez Carrión 451 / 479 511 463-9055 [email protected]

Empresa Minera Los Quenuales S.A. Grupo Glencore Rogerio

Fernandes



Compañía Minera Milpo S.A. Grupo Berthel Abraham Chahuan Av. San Borja Norte

523 511 710-5500 [email protected]

Compañía Minera Santa Luisa S.A.

Mitsui Mining & Smelting Co. Ltd. Minoru Machida

Av. República de Panamá 3531, piso 15


Tin production (MT)


0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

Tin 22,662 26,842 27,953 25,907 30,618 37,410 38,182 38,815 40,202 41,613 42,145 38,470

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Amp. Minsur

Tin Mining Companies



Minsur S.A. Grupo Brescia Fausto Zavaleta Cruzado

Las Begonias 441, oficina 338 San Isidro

51-1-442-1919 [email protected]

Iron Production (MT)


0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

Iron 3,948,192,915,69 3,171,312 3,282,112,715,39 2,812,78 3,087,013,104,953,540,654,315,12 4,564,9 4,784,6

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Iron Mining Companies



Shougang Hierro Perú S.A.A. M Jian Guo

República de Chile 262 Jesús María Lima.

714-5200 [email protected]

Mining Units


Region Province District

1Shougang Hierro Peru S.A.A CPS - 1 ICA NAZCA MARCONA 854.253.064

2Transportes Barcino S.A. ACERO L-1 CUSCO CHUMBIVILCAS LIVITACA 15.350.000

3Transportes Barcino S.A. ACERO L-12 CUSCO CHUMBIVILCAS LIVITACA 15.350.000

4Transportes Barcino S.A. ACERO P-1 CUSCO ACOMAYO POMACANCHI 1.500.000

5 Yura S.A. MAGNETITA PUNO LAMPA SANTA LUCIA 748.721

6Transportes Barcino S.A. ACERO P-2 CUSCO ACOMAYO ACOPIA 580.000

7Minera San Maximiliano GERMANIA CAJAMARCA CONTUMAZA CUPISNIQUE 100.000

8Corp. Aceros Arequipa CHALA SUR AREQUIPA CARAVELI CHAPARRA 45.000

9Corp. Aceros Arequipa

PAROMA CENTRAL ICA NAZCA NAZCA 45.000

Fuente: MEM

ReservesNº Name UnitLocalitation

Owner Mining Units


Local CompanyHeadquarter /

Economic Group Representantive Adress Phone Email

Shougang Hierro Peru S.A.A Shougang Corporation M Jian Guo

Av. Republica de Chile 262- Jesus María, Lima. 714-5200 [email protected]

Yura S.A. Grupo GloriaSr.Jorge Columbo Rodriguez

Av. República de Panama # 2461 - Santa Catalina - La Victoria - Lima.

[email protected]

Transportes Barcino S.A. Corp. Aceros Arequipa Pedro Blay Cebollero

Calle Jacinto Ibañez 509,Of. 301, Parque Industrial - Arequipa

(54) 24-4130 (54) 24-4258

Minera San MaximilianoMario Narvaez Saldaña

Ca. Lizarzaburi 750 - Urb. Las Quintanas - Trujillo 233-215 [email protected]

Corp. Aceros Arequipa Grupo Cillóniz Pedro Blay CebolleroAv. Enrique Meigss 297, Callao 517-1800 [email protected]

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PPT Investment Opportunities in Mining - 2007 May