MINING INVESTMENT CLIMATE IN PERU

Transcription

1 MINING INVESTMENT CLIMATE IN PERU March 2010 Ing. Pedro Sánchez Gamarra M I N I S T R Y O F E N E R G Y A N D M I N E S 1

2 2 PERU: Competitive Advantages

3 MACROECONOMIC INDICATORS M I N I N G I N V E S T M E N T C L I M A T E I N P E R U 3 INDICATORS Annual GDP (var. % real) 7.6% 9.0% 9.84% Mining GDP (var. % real) 1.1% 1.7% 7.3% Inflation (Var. IPC) 1.1% 3.9% 6.65% Average exchange rate (S/. per $) Exports (US$MM) 23,749 27,956 31,273 Mining Exports (US$MM) 14,707 17,328 18,656 Imports (US$MM) 14,897 19,599 28, % ,885 16,361 21,011 Source: MEF, INEI, BCRP

4 COMPETITIVENESS: INTERNATIONAL ARENA M I N I N G I N V E S T M E N T C L I M A T E I N P E R U 4 Peru has been granted Investment Grade PERU HAS BEEN GRANTED AN INVESTMENT GRADE STATUS BY THREE OF THE MAIN INTERNATIONAL CREDIT RATINGS AGENCIES: STANDARD & POOR'S, MOODY'S Y FITCH.

5 FAVOURABLE CLIMATE FOR MINING INVESTMENT M I N I N G I N V E S T M E N T C L I M A T E I N P E R U 5 Peru is considered first in the region regarding government s receptivity to private investment Globally, Peru moved from position 41 to number 11 according to the latest Survey of Mining Perception, jumping 30 positions and significantly improving its position against other countries. INVESTOR S PROTECTION INDEX Mining Company Survey Fraser Institut of Canadá Source: Doing Business 2009

6 LEGAL STABILITY FOR INVESTORS (i) M I N I N G I N V E S T M E N T C L I M A T E I N P E R U 6 Legal Stability Contracts signed by the Peruvian State and guaranteed by the National Political Constitution. Stability of the free availability and remittance of foreign currency regime. National or international arbitration to resolve eventual conflicts. Stability in the general tax regime (Income Tax, Customs Duty, Sales Tax). No discrimination between national and foreign investors. Advance Tax Return for tax on sales and Accelerated Depreciation regime.

7 LEGAL STABILITY FOR INVESTORS (ii) M I N I N G I N V E S T M E N T C L I M A T E I N P E R U 7 Guarantee of private property. Freedom to purchase stocks from locals. Freedom for accessing to internal and external credit. Freedom to remit royalties and profits. Free access to mining property for nationals and foreigners alike. By exception, foreigners require a government permission granted through a Supreme Decree to operate within 50 km from the national borders Information transparency. Irrevocability of the concession (except for non-compliance with obligations, as stipulated in the General Law on Mining.

8 8 Aiming to consolidate an adequate regulatory framework to foster foreign investment, Peru is now: Peru has suscribed several bilateral agreements, including Free Trade Agreements (FTAs) with the United States, Canada, China and Singapore, and is currently negotiating other FTAs with Thailand, South Korea and the European Union. In addition, Peru is a member of APEC and the Andean Community of Nations (CAN). Member of MIGA Member of CIADI Member of the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention) Signatory of 32 bilateral agreements with countries in Asia, Europe and Latin America.

9 MODERN MINING: Social and environmental responsability What do we expect from Mining Investors? M I N I N G I N V E S T M E N T C L I M A T E I N P E R U 9 Productive, non-speculative investment Excellent environmental practices. Excellent socially- responsible practices Modern businessmen Integrated to the community and committed to its development.

10 10 PERU: Potential Geological and Mining

11 11 PERU: MINING COUNTRY Traditionally, the main source of mineral resources in Peru has been the Andes mountain range. There is a vast and diverse geological wealth recognized by the international community, most of which has not yet been exploited or explored. The diverse potential of Peruvian mining is reflected in the current production of gold, copper, silver, lead, zinc, molybdenum, tin and the new deposits of iron and uranium.

12 12 PRIVILEGED LOCATION Located in the center of South America, Peru has a strategic geographical location, both within its continent and in the world. It has easy access to large markets such as those of South East Asia and the USA. Also, as a member country of the Asia Pacific Economic Cooperation (APEC) and the Andean Community of Nations (CAN), Peru enjoys the economic benefits of these markets.

13 COUNTRY AREA ALLOCATED TO MINING AND CONSERVATION M I N I N G I N V E S T M E N T C L I M A T E I N P E R U 13 Total country area: Natural Protected Areas: Area granted to mining activities. 128 million hectares million hectares ,470 hectares (100%) (28.17%) (11.62%) Area under mining exploitation 891,367 hectares (0.69 %) Area under mining exploration 813,626 hectares (0.63 %) Fuente: MEM/INGEMMET Enero 2010 Source: MEM / INGEMMET March 2010

14 14 LEADING MINING COMPANIES OPERATING IN PERU Aluminium Corp. of China- Chinalco Anglo American Plc Barrick Gold BHP-Billiton Freeport-McMoRan Copper & Gold Inc Grupo Buenaventura Grupo Hochschild Grupo México Grupo Milpo Iamgold Jiangxi Copper Minmetals Corp. Mitsubishi Mitsui Mining Corp. Nanjinzhao Group Co. Ltd. Newmont Peñoles Rio Tinto Shougang Group Sumitomo Teck Resources Limited Vale Votorantim Metais Xstrata Plc Zijin Mining Group

15 15 AT PRESENT Exploration: Over 100 Exploration companies, mainly from Canada, Australia, England, China and The United States. 276 Prospects and mining projects Production: 398 mining units in operation

16 RANKING: MINING PRODUCTION 16 1st producer of silver and 2nd in copper and zinc, worldwide 1st producer of gold, tin, lead, bismuth, tellurium and mercury in Latin America

17 17 MINING PRODUCTION / COPPER PRODUCTION (Thousands of TMF) SILVER PRODUCTION (Million of Fine Kg) ZINC PRODUCTION (Thousands de TMF) GOLD PRODUCTION (Million of fine gr.) LEAD PRODUCTION (Thousands de TMF) TIN PRODUCTION (Thousands de TLF)

18 MINING PRODUCTION / M I N I N G I N V E S T M E N T C L I M A T E I N P E R U 18

19 MINING PRODUCTION / M I N I N G I N V E S T M E N T C L I M A T E I N P E R U 19

20 20 PERU: Mining investment

21 PERU: 21 INVESTMENT IN MINING DEVELOPMENT TOTAL INVESTMENT 2009: 2,760 million US$

22 PERU: M I N I N G I N V E S T M E N T C L I M A T E I N P E R U INVESTMENTS BY ITEM 22 MINERAL PROCESSING PLANT EQUIPMENT OTHER INFRASTRUCTURE EXPLOITATION EXPLORATION MINING EQUIPMENT PREPARATION

23 PERU: M I N I N G I N V E S T M E N T C L I M A T E I N P E R U INVESTMENT BY ITEM 23

24 24 PERU: INVESTMENT IN MINING EXPLORATION According to CEPAL, during 2008 a total of US$ 630 millions were invested in exploration. 2nd major exploration investment in Latin America and y 6th major investment worldwide The Lima Stock Exchange (BVL) has a Segment of Risk Capital or Project Stock exchange specialized in the exploration sector of mining. The Peruvian State s aim is to improve competitiveness, bearing in mind the perception of investors. Country Investment in Mining Exploration (Millions US$) Investment (Millions US$) Canada % Australia % United States % Mexico % Peru % Rusia % Chile % Brasil % South Africa % China % Others % % % Source: Metal Economic Group

25 25 PERU: 5th DESTINATION IN THE WORLD FOR EXPLORATION INVESTMENT MINING EXPLORATION INVESTMENT IN THE WORLD IN 2008: Canada 19% Other countries 31% Australia 12% Brazil 3% China 3% South Africa 4% Chile 4% Russia 4% Perú 5% United States 7% Mexixo 5% Source: Metals Economic Group 2008

26 26 PERU: 2nd DESTINATION IN LATIN AMERICA FOR EXPLORATION INVESTMENT MINING EXPLORATION INVESTMENT IN L. AMERICA. IN 2008: Colombia 2% Other country 10% Mexico 25% Venezuela 3% Ecuador 3% Argentina 9% Brasil 13% Chile 15% Peru 20% Source: Metals Economic Group 2009

27 PERU: M I N I N G I N V E S T M E N T C L I M A T E I N P E R U MINING INVESTMENT PROJECTS 27 Estimated Portfolio 35,471 MM US$

28 PERU: EMPRESA LOCAL / INVERSIONISTA / PAIS M I N I N G I N V E S T M E N T C L I M A T E I N P E R U MINING INVESTMENT PROJECTS PROYECTO / REGION METAL PRINCIPAL INICIO DE OPERACIONES (estimado) Estimado de Inversión* (US$ mill.) Produccion Estimada (x año) Ampliaciones Fundicion / Moquegua 200,000 TM 10 1 Southern Perú Copper Corporation / Grupo Mexico (Mexico) Refineria de Ilo / Moquegua 80,000 TM 8 Cobre Toquepala / Tacna 100,000 TMF/Cu 25 Cuajone / Moquegua 38,000 TMF/Cu 17 2 Shougang Hierro Perú S.A.A. / Shougang Corporation (China) Marcona / Ica Hierro , Mill TM/ Fe x año Votarantim Metais-Cajamarquilla S.A. / Votarantim Metais (Brasil) Ref. Zinc Cajamarquilla / Lima Zinc Soc.Mra.Cerro Verde S.A. / Freeport-MacMoran Copper (USA) (1) Cerro Verde / Arequipa Cobre ,000 5 Compañía Minera Antamina S.A./ BHP Billiton-Xstrata-Teck-Mitsubishi Antamina / Ancash Cobre-Zinc , ,000 TMF/Cu 6 Sociedad Minera El Brocal S.A. / Grupo Buenaventura (Perú) Colquijirca / Junin Polimetalico Inversión confirmada 7 Southern Perú Copper Corporation / Grupo Mexico (Mexico) Tía María / Arequipa Cobre ,000 TMF/Cu 70 8 Minera Chinalco Perù S.A. / Chinalco-Aluminium Corp.of China (China) Toromocho / Junin Cobre , ,000 TMF/Cu Minera La Zanja S.A. / Grupo Buenaventura (Perú) La Zanja / Cajamarca Oro ,000 Oz/Au 2 Con estudio factibilidad 10 Rio Blanco Copper S.A. / Zijin Mining Group (China) Río Blanco / Piura Cobre , ,000 TMF/Cu Cía. Minera Miski Mayo S.A. / Compañía Vale Do Rio Doce (Brasil) Bayovar / Piura Fosfatos ,9 Mill TM/Fosfatos Anglo American Quellaveco S.A. / Anglo American (UK) Quellaveco / Moquegua Cobre , ,000 TMF/Cu 120 En exploración 13 Lumina Copper S.A.C. / Minmetals /Jiangxi Copper (China) Galeno / Cajamarca Cobre , ,000 TMF/ Cu Rio Tinto Minera Perú Ltd S.A.C. / Rio Tinto Plc (Uk-Australia) La Granja / Cajamarca Cobre , ,000 TMF/Cu Anglo American Michiquillay S.A. / Anglo American (UK) Michiquillay / Cajamarca Cobre ,000 TMF/Cu Minera Yanacocha S.R.L. / Newmont, Buenaventura (USA, Perú) Chaquicocha / Cajamarca Oro Por definir Cía. Mra. Quechua S.A. / Pan Pacific Copper Corp.; Nippon Mining Quechua / Cusco Cobre Holdings; Mitsui Mining & Smelting Co. (Japón) 60,000 TMF/Cu 18 Compañía Minera Milpo S.A. / Grupo Milpo (Perú) Pukaqaqa / Huancavelica Cobre Por definir Xstrata Tintaya S.A. / Xstrata Copper (Suiza) Antapaccay / Cusco Cobre , ,000 TMF/Cu Compañía Minera Milpo S.A. / Grupo Milpo (Perú) Hilarión / Ancash Zinc Cía. Minera Coimolache S.A. / Newmont, Buenaventura (USA, Perú) Tantahuatay / Cajamarca Oro ,000 Oz/Au 22 Minera Cuervo S.A.C. / Cuervo Resources Inc (Canada) Cerro Ccopane / Cusco Hierro Por definir Por definir 23 Jinzhao Mining Perù S.A./Nanjinzhao Group Co. Ltd., Zibo (China) Pampa de Pongo/ Arequipa Hierro , Mill de TM/Fe 24 Bear Creek Mining Company, Suc.Perú / Bear Creek Mining (USA) Corani/ Puno Plata Minera Yanacocha S.R.L. / Newmont, Buenaventura (Peru) (1) Minas Conga / Cajamarca Oro , ,000 Oz/Au Minera Áncash Cobre S.A. / Inca Pacific Resources (Canada) (1) Magistral / Ancash Cobre ,100 TMF/Cu Minera Oro Candente S.A, / Candente Copper Corp.( Canada) Cañariaco / Lambayeque Cobre Por definir 1, ,000 TMF/Cu 28 Norsemont Perú S.A.C. / Norsemont Mining (Canada) Constancia / Cuzco Cobre ,000 TMF/Cu 29 Minsur S.A. / Grupo Brecia (Perú) Pucamarca / Tacna Oro ,000 Oz/Au 7 30 Xstrata Perú S.A. / Xstrata Copper (Suiza) Las Bambas / Apurimac Cobre , ,000 TMF/Cu Apurimac Ferrum S.A. / Strike Resources (Australia) Hierro Apurimac / Apurimac Hierro Por definir 2, Mill de TM/Fe Southern Perú Copper Corporation / Grupo Mexico (Mexico) Los Chancas / Apurimac Cobre ,200 80,000 TMF/Cu Marcobre S.A.C. / Chariot Resources (Canada) Marcobre (Mina Justa) / Ica Cobre ,000 TMF/Cu Minera Antares Peru S.A.C./ Antares Minerals Inc (Canada) Haquira Cu-Mo-Au La Arena S.A. / Rio Alto Mining Limited (Canada) La Arena / La Libertad Oro-Cobre ,000 Oz/Au 36 Minera Sulliden Shahuindo S.A.C./ Sulliden Gold Corp. Ltd.(Canada) Shahuindo / Cajamarca Oro ,000 Oz/Au TOTAL 35, Energia estimada MW

29 29 PERU: Mineral Reserves and main projects

30 Metallic mineral mining potencial 30 The minerals produced in Peru are in great demand in today's global marketplace. U.S., China, Switzerland, Japan, Canada and the EU are the main country destinations of its mineral exports. Peru is the country with the second largest copper reserves in the world; first in Latin America, zinc, lead and tin, second in silver and molybdenum. (U.S. Geological Survey - USGS figures).

31 Copper 31 Proven and Probable Reserves Annual Production ,021 Thousand of TMF 1,275 Thousand of TMF RIO BLANCO LA GRANJA MICHIQUILLAY LA MORADA Main projects Toromocho Rio Blanco La Granja Michiquillay La Morada Los Chancas Las Bambas Quechua Antapaccay Tia Maria Mina Justa Cañariaco Constancia Magistral Quellaveco Pukaqaqa Marcobre Cobrepampa La Mancha El Chorro Palca Chapi Pinaya Zafranal Aguas Verdes Molletambo Utupara Trapiche Cotabambas Hakira Katanga Ballena TOROMOCHO MINA JUSTA LOS CHANCAS LAS BAMBAS QUECHUA ANTAPACCAY Source: DAC 2008 / MEM - DGM TIA MARIA

32 Gold 32 Proven and Probable Reserves Annual Production ,396 Thousand of fine Oz. 5,864 Thousand of Fine Oz. LA ZANJA TANTAHUATAY MINAS CONGA Main projects CHAQUICOCHA La Zanja Chaquicocha Tantahuatay Minas Conga Pucamarca Cerro Quilish La Granja Bolsa del Diablo La Pampa EL Tigre Laguna norte Tres Cruces Alto Dorado Mazo Cruz Santa Barbara Baños del Indio Tesoro Poracota Aucapampa Invicta Aucapampa Parón Cascabamba Pachagon San Luis Source: DAC 2008 / MEM - DGM PUCAMARCA

33 Silver 33 Proven and Probable Reserves Annual Production ,040,139 Thousand of Oz. 123,909 Thousand of Oz. Main projects Corani Servilleta Zapalache Tambogrande La Granja La Zanja Tantahuatay Shahuindo La Arena Tres Cruces Salpo Palma Pampa Andino Palla Palla Poracota Sta Ana Berenguela Mazo Cruz Baños del Indio Azuca Millo Estrella Bongará Igor Source: DAC 2008 / MEM - DGM

34 Zinc 34 Proven and Probable Reserves Annual Production ,416 Thousand of TMF 1,509 Thousand of TMF Main projects Amp. Cajamarquilla Hilarion Toromocho Potrobayo El Papayo Bongará Soloco Contonga Palma Accha Titiminas Pukajaja Shalipayco Source: DAC 2008 / MEM - DGM

35 35 Non-metallic mineral mining potencial Peru also has great potential in non-metallic minerals such as travertine marble, silice (largest producer in South America), bentonite and borates. In fact, Peru is among the few countries in the world where you can find deposits of these minerals.

36 36 PERU: MINING EXPORTS

37 MINING EXPORTS INCREASED FROM US$ 3,008 MM TO US$ 18,656 MM (5.2 TIMES) IN 10 YEARS 37 MINING EXPORTS US$ millions 17,328 18,656 14,707 9,790 7,124 3,008 3,220 3,205 3,809 4, : 16,361 MM (PRELIMINARY DATA BCRP)

38 DESTINATION OF M I N I N G I N V E S T M E N T C L I M A T E I N P E R U PERUVIAN MINING EXPORTS 38 Taiwan 2.8% (Copper) Alemania 2.9% (Copper) España 2.7% (Copper, Zinc) Otros 15.8% Brasil 3.6% (Copper, Zinc, Silver) Suiza 18.5% (Gold) Italia 4.2% (Copper, Lead) Chile 5.6% (Molybdenum) Canadá 8.5% (Gold, Copper) Japón 8.7% (Copper, Zinc, Silver) Estados Unidos 11.8% (Copper, Gold, Silver) China 14.9% (Copper, Lead, Zinc, Iron) Source: SUNAT

39 39 THANK YOU