ANNUAL REPORT
ANNUAL REPORT
2020
Contents
/ THE HEALTH
AND INTEGRITY
OF EVERYONE IS
OUR PRIORITY
T
R
O
P
E
R
L
A
U
N
N
A
0
2
0
2
3
T
R
O
P
E
R
L
A
U
N
N
A
0
2
0
2
44
2020 ANNUAL REPORT
This document contains accurate and sufficient information
regarding the business development of Compañía de Minas
Buenaventura S.A.A. in 2020.
Without prejudice to the issuer’s liability, the undersigned is
responsible for its contents in accordance with the applicable
legal provisions.
Leandro García Raggio
GENERAL MANAGER
Lima, February 25, 2021
5
5
/ THE HEALTH
AND INTEGRITY
OF EVERYONE IS
OUR PRIORITY
Letter to shareholders
T
R
O
P
E
R
L
A
U
N
N
A
0
2
0
2
06
06
2020 ANNUAL REPORT
DEAR SHAREHOLDERS,
IN THE YEAR 2020 WE FACED ONE OF
THE HARDEST AND MOST COMPLEX
HEALTH, ECONOMIC AND SOCIAL
CRISES IN HISTORY.
07
07
Letter to shareholders
Reports from the city of Wuhan, China, revealed
the emergence of a rapidly spreading atypical
pneumonia, which would subsequently lead the
World Health Organization (WHO) to declare
COVID-19 a global threat on January 30, 2020.
After two months, this disease would reach global
pandemic levels.
In Peru, on March 16, 2020, the Government
declared a State of National Emergency with
mandatory physical distancing and the closure of
borders due to the advance of the spreading of
infections throughout the country and the collapse
of its health care services.
By the end of the year, the effects of COVID-19
continued to have an impact on our health as well
as the economy around the world, generating a
climate of uncertainty that still persists, despite
the efforts of the scientific community to develop
vaccines in record time.
08
2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
THE
GLOBAL GDP
SHRANK BY
-4.3%
WITH THE GREATEST IMPACT
ON DEVELOPING AND
EMERGING ECONOMIES
“
the WHO reported over
80 million infections
and 1.5 million deaths
worldwide.
As of 31 December 2020, the WHO reported over 80
million infections and 1.5 million deaths worldwide.
In our country, according to reports from the
Ministry of Health, there are more than one million
confirmed cases and over 37 thousand have died
from the virus.
The global economy went into recession, particularly
affecting Latin America. According to the World
Bank, the global GDP shrank by -4.3%, with the
greatest
impact on developing and emerging
economies such as Argentina (-10.6%), Peru (-12%),
Mexico (-9%), and Brazil (-4.5%).
Additionally, the Economic Commission for Latin
America and the Caribbean (ECLAC) described the
impact of the pandemic in the United States as
severe given the number of deaths and the paralysis
of economic activity.
The chance of a recession in the US economy
reduced in 2019; however, in 2020 the pandemic
led to a decline of -3.6%, according to the World
Bank. The political landscape in the United States
was also complex in 2020 and ended in Democrat
Joseph Biden succeeding Republican Donald Trump
as President.
09
Letter to shareholders
According to World Bank reports, China, the
country where the virus emerged, was the only
growing world power in 2020, by about 2%.
Infection control, production of biosafety-related
material, and economic stimulus policies were key
factors for China, analysts say. However, this trend
is low compared to its growth rates in 2018 (6.6%)
and 2019 (6.1%).
The Eurozone registered a decrease of -7.4% in
2020, and it was the most affected region in the
developed world, even despite policies aimed
at preserving employment, family income and
business activity.
In Peru, the health crisis and restrictions caused
the paralysis of 35% of the economy’s installed
capacity, according to CONFIEP’s 2020 Reactivation
Agenda, which made millions of households and
thousands of enterprises vulnerable.
In May 2020, Peru’s economic activity began to
reactivate gradually and in stages. While the mining
industry had been able to continue carrying out
critical activities with essential personnel from the
beginning of the quarantine, it was not until the
end of May, with the first phase of reactivation,
that it was able to fully resume its activities. This
thus meant the reactivation of thousands of jobs
and the resurgence of an activity that is one of the
driving forces of our national economy.
At Compañía de Minas Buenaventura, we adapted
our operations to the new circumstances to
ensure the health and integrity of our workers
and their families, contractors, and neighboring
communities.
During the first stage of the quarantine, our
direct operations focused only on essential tasks.
We gradually resumed mining activities on May
11, 2020, in accordance with the Government’s
supreme decree authorizing the resumption of
mining activities at the national level.
For this purpose, we designed a strict health
protocol (Workplace Plan for COVID-19 Surveillance,
Prevention and Control) approved by the relevant
authorities, the purpose of which is to prevent and
minimize the spread of the virus at our operations
and projects. This protocol is continually reviewed
and updated.
To comply with the new regulations, we decided
to restart operations in two phases, prioritizing
mines with higher levels of production. Phase 1
began on May 16, 2020 restarting operations in
Tambomayo, Uchucchacua, El Brocal (Tajo Norte
and Marcapunta) and Coimolache, while phase
2 began on June 16, 2020 with the Orcopampa,
Julcani and La Zanja units.
10
2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
BUENAVENTURA
CONTRIBUTED
MORE THAN
110 thousand
BIOSAFETY
EQUIPMENT
The reactivation of formal mining also demonstrated
the existing solidarity of mining companies, which, in
coordination with the authorities and society at large,
brought aid to their respective areas of influence,
locations where it was necessary to strengthen
health care systems, and the availability of biosafety
equipment for doctors and frontline staff workers,
among other contributions.
“
Since the beginning of the pandemic,
Buenaventura has been
coordinating with national, regional,
and local authorities to bring aid to
the most vulnerable populations in
eight regions of the country: Arequipa,
Cajamarca, Huancavelica, Pasco,
Apurímac, Moquegua, Piura, Lima and
Loreto, the latter outside our sphere of
influence, but one of the hardest hit by
the health emergency.
To date, Buenaventura’s contributions include an
oxygen plant for the Iquitos EsSalud Hospital III –
the first donated by the Peruvian private sector –
an oxygen plant for Hospital Arzobispo Loayza in
Lima; an electric generator for Yanahuara Hospital
in Arequipa; around 100 concentrators and more
than 150 oxygen cylinders; over 110 thousand
biosafety equipment; over 200 thousand medicines
and more than 47,000 tests to discard COVID-19,
among other contributions.
It should be noted that Buenaventura is part of the
group of private companies that, in coordination
with the Peruvian Government, has made possible
the arrival of the first batch of one million vaccines
of the Sinopharm laboratory from China to Peru.
In addition, together with other institutions, we
have collaborated with Pontificia Universidad
Católica del Perú (PUCP) on the MASI project for
the development of mechanical ventilators with
national technology.
In 2020, the climate of political instability and
clashes between the state powers continued,
triggering in November the ousting of President
Martín Vizcarra, the resignation of his successor
Manuel Merino and the appointment of Francisco
Sagasti as President. The latter will lead the country
until July 2021.
In 2021, the global and national landscape is expected
to continue to be one of uncertainty, adaptation
11
Letter to shareholders
PERÚ HAVE
48 MINING
PROJECTS WORTH
US$ 57
BILLION
and resilience. As Peruvians and entrepreneurs, we
have the mission to continue rebuilding the country
while caring for our employees, communities and
families.
offset by an improvement in metal prices. There
was also a lower cost of goods sold (US$ 119 M)
and lower spending on exploration in operating
units (US$ 16 M).
According to reports from the Ministry of Energy and
Mines, we currently have 48 mining projects worth
US$ 57 billion. This represents an opportunity
to highlight the value of our natural resources in
favor of the reconstruction of the country and the
generation of employment and opportunities for
Peruvians toward the 200th anniversary of our
independence.
As of December 31, 2020, the price of an ounce of
gold was US$ 1,891, while an ounce of silver closed
at US$ 26.49, according to the London Bullion
Market Association, the primary reference point
in the precious metals market.
The London Metal Exchange reported that a ton
of copper closed at US$ 7,742 in 2020 and the ton
of zinc at US$ 2,724. Lead closed the year at US$
1,972 a ton.
Buenaventura’s share price decreased by 19% in
2020, closing at US$ 12.2.
In the year under review, our company suffered a
net loss of US$ 150.3 M, compared to the US$ 28.5
M loss in 2019. This was mainly due to a drop in net
sales generated by lower production volumes but
The net debt/EBITDA ratio in 2020 increased from
2.06x to 2.46x. In addition, the cash position at the
end of 2020 increased from US$ 210.0 M to US$
235.4 M and the CAPEX for the year was US$ 73
M.
In November 2020, following the Tax Court’s
decision dismissing the appeals filed by our
company in connection with tax controversies we
hold with SUNAT, the collection of debt amounting
to S/ 567 million began. It is composed of S/ 192
million in taxes and S/ 1,375 million in fines and
interest.
In view of this, under the current legal framework,
Buenaventura filed a request for a deferral or
fractioning of the tax debt so that it can be paid
off within six years, paying, in addition, the
interest corresponding to such fractioning. To
such end, at the request of SUNAT, we submitted
all the documentation required with a group of
banks for the necessary financial guarantees for
the amounts charged, while we continue with the
legal processes in the corresponding instances.
The requested fractioning
initial
payment of 14% and 66 equal installments for the
remaining amount.
involves an
12
2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
“
Moreover, safety remains
a fundamental part
of all our activities. In
2020, the Accident Rate
fell by 90% compared
to 2019, due to, among other
factors, the decline in high-risk work
between March and June because of
the pandemic.
We are pleased to report that there were no fatal
accidents in our units during the year under review,
as opposed to the two fatal accidents that occurred
in 2019. These results require us to continue
making efforts and allocate resources to achieve
sustainability in our safety performance.
Faced with the complex situation resulting from
the pandemic, we also had to adapt our social
management and related activities, putting
greater emphasis on caring for the health needs of
the regions and localities near our units, in order
to contribute to the fight against COVID-19.
In ongoing coordination with local authorities, we
took part in setting up health safety fences. These
became one of the main tools in the districts and
communities in the highlands to reduce contact
with COVID-19 cases and to monitor compliance
with government regulations. In addition, as
explained at the start of this letter, we have
provided support to vulnerable people in the
most remote areas of the country, strengthening
frontline work with the distribution and donation
of oxygen, biosafety materials, Covid-discarding
tests, among other actions detailed in this report.
Our Environmental Management department
directed its interventions towards achieving the
sustainability of the units, through adequate
operational control of a mainly preventive nature
to minimize the impacts on the environment.
In addition, it focused on achieving adequate
management of water resources, controlling their
quality and ensuring their reuse and recirculation
in our processes.
In the Human Resources area, we closed 2020 with
a total workforce of 11,919 people. This number
13
Letter to shareholders
includes contractor personnel (8,985) who provide
services at our operations.
The performance of our production units fell
within the expected range. In 2020, Tambomayo,
in Caylloma, Arequipa, produced 63,477 ounces of
gold and 1,668,582 ounces of silver, compared to the
99,245 ounces of gold and 2,556,391 ounces of silver
of the previous year.
The Orcopampa Unit, in the province of Castilla
(Arequipa), produced 41,129 ounces of gold compared
to 41,660 ounces in 2019.
La Zanja and Coimolache, open-pit mines operating
in Cajamarca, produced 17,228 and 106,017 ounces of
gold in 2020, respectively, compared to the 31,500
ounces of gold produced by La Zanja and 162,196
ounces of gold produced by Coimolache in 2019.
Uchucchacua, a silver mine in Oyón, Lima, produced
5’000,312 ounces of silver, compared to the
10’640,913 ounces produced in 2019.
In 2020, Sociedad Minera El Brocal (61.43%
BVN), a Buenaventura subsidiary that operates
the Colquijirca Unit in Cerro de Pasco, recorded
a production 30,608 metric tons of copper and
54,909 metric tons of zinc. In 2019, it recorded
43,394 metric tons of copper and 43,580 metric
tons of zinc.
At El Brocal, lead production levels came to 20,066
tons compared to the 23,599 tons reached in 2019.
In addition, it produced 3,508,585 ounces of silver,
down from 4,366,438 ounces the previous year.
Sociedad Minera Cerro Verde (19.58% BVN), a
related company operating in Arequipa, reported
a production of 371,991 metric tons of copper
compared to the 455,305 metric tons produced the
previous year.
Minera Yanacocha (43.65% BVN), also a related
company located in Cajamarca, produced 340,052
ounces of gold in 2020, down from the 527,336
ounces produced in 2019.
The Julcani Unit, our flagship mine, located in
Huancavelica, produced 1’676,731 ounces of silver
compared to the 2’609,006 ounces produced the
previous year.
The effort put into exploration works is part of
Buenaventura’s culture, one which ensures the
continuity of our operations. At our underground
units of Orcopampa, Uchucchacua, Tambomayo,
14
2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
THE
SAN GABRIEL PROJECT
COMPLETED THE
FEASIBILITY STUDY
Julcani, and El Brocal, progress consisted of 7,197
meters of exploration tunnels and 112,607 meters
of diamond drill holes. No drilling was carried out
in open pit mines.
In terms of our project portfolio, the company
purchased 500 hectares in the community of
Huachus Yumpaq (Pasco), and performed the
planned resources delineation works for the project.
Currently, 80% of the mine’s detail engineering has
been developed and the Environmental Impact
Assessment (EIA) is planned for the second quarter
of 2021.
The San Gabriel Project (Moquegua) completed the
feasibility study carried out with Ausenco-Agnitia,
which estimated a total volume of 14.6 million
metric tons of ore with an average grade of 4.2
grams per ton of gold (1.96 million ounces of gold).
At Trapiche (Apurimac), the prefeasibility study
with M3 was completed, estimating a volume of 283
million metric tons of ore with an average copper
grade of 0.51% (1.4 million tons of copper).
“In 2020, the company
saw important changes
at the organizational
level. On July 30, 2020, the Board
of Directors accepted the resignation
of Mr. Víctor Gobitz from the General
Management of Buenaventura, a
position he had held since January
2017. Mr. Gobitz worked with us
until August 31, 2020. We would
like to thank him for his important
contributions to our operations and
wish him every success in his new
professional challenges.
15
Letter to shareholders
The Board of Directors decided to appoint Mr.
Leandro García as the new CEO-General Manager
of Buenaventura, a position he assumed on
September 1, 2020. Previously, Mr. García
had served as Vice-President of Finance and
Administration for the company since December
2017. His career at the company began in 1990.
We are confident that his experience will allow us
to achieve greater efficiencies in our operations
and projects.
In addition, Daniel Domínguez was appointed Vice-
President of Finance and Administration of the
company on September 8, 2020. Mr. Domínguez
joined Buenaventura over 20 years ago. Prior to
this appointment, he served as Logistics Manager
from 2017 to 2020. We wish him success in his
new role.
In December 2020, Mr. Raúl Benavides retired
from executive work after 40 years of valuable
contributions to the company, leaving his mark
for his important role in the development of
Buenaventura and for his active participation in
the start-up of mines such as Yanacocha, La Zanja
and Coimolache, as well as the Rio Seco Industrial
Processing Plant, among other
important
contributions. Raul had served as Vice-President
of Business Development since 2011.
The Board of Directors, in its session held on
January 4, 2021, appointed Mr. Raúl Benavides as
a new member of the Board of Directors to replace
Dr. José Miguel Morales, who resigned from the
position of Director after reaching the maximum
retirement age for Board members in accordance
with our Corporate Governance practices.
We especially thank Dr. Morales for his 50
years of service to the company. His experience
and profound knowledge of our company has
contributed significantly to its development, both
from his position as Director and from his position
as General Counsel. We would like to extend our
greatest appreciation and best wishes to him.
In January 2021, Mr. Aldo Massa assumed the
Vice Presidency of Business Development and
16
2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
of all our production units, projects, and offices
in eight regions of the country for their effort and
commitment to move our company forward in this
complex situation.
Lima, February 25, 2021
Roque Benavides
Chairman of the Board
Marketing. Mr. Massa had previously served as
Business Manager since February 2020. He has over
25 years of experience in the mining sector and prior
to joining Buenaventura he worked at Southern
Copper Corporation as its Commercial Director.
At the management level, Ms. Cecilia Puga took over
the Finance Management department in September
2020; Mr. Fernando Ortiz de Zevallos assumed the
Logistics Management in October 2020; Mr. Percy
Ponce assumed the Management of Metallurgical
in January
Projects and Business Development
2021; and Mr. Thiago Nantes the Technical Services
Management in January 2021. Similarly, Mr. Gary
Chircca was appointed Operations Management
Manager and Mr. Alex Lobo assumed the management
of the La Zanja and Coimolache units in January of
this year. We wish all of them every success.
Finally, on behalf of the Board of Directors of Compañía
de Minas Buenaventura we would like to thank the
Management, our shareholders, our suppliers, and
all the company’s stakeholders, as well as offer a
very special acknowledgement to the collaborators
17
History and long-term vision
SILVER
Acquisition of the Julcani mine
in Huancavelica Founding of
Buenaventura
BVN listed on the
a Stock Ex
Lima Stock Exchange
COPPER
BVN acquires 11% of
El Brocal. As of 2017, BVN
holds 61%
JV1:
COPPER
Privatization of Cerro Verde
(with Cyprus)
JV₃:
(1994: 30K → 2017: 450-500K Cu MT) 15 x
GOLD
JV₄:
La Zanja (1M oz/Au
produced to date)
Mn
Rio Seco
Inauguration of the
chemical plant
1953
1971
1979
1994
2010
2013
1967
GOLD
1975
SILVER
Orcopampa
(1967: 75 → 2017: 1.5K TPD) 20x
Uchucchacua
(1975: 150 → 2017:~4K TDP) 25x
1993
GOLD
First doré bar obtained at
Yanacocha (Over 36M
oz/Au produced to date)
JV2:
1996
First Latin American
mining company to be
listed on the New York
Stock Exchange
2011
GOLD
JV₅:
First doré bar obtained at
Coimolache (1M oz/Au
produced to date)
2014
Hydroelectric Plant: begins
commercial operations (100
Huanza:
MW)
68YEARS
GOLD
First doré bar obtained at
Tambomayo
2016
GOVERNMENTS OF PERU
ODRÍA
(1948-1956)
PRADO UGARTECHE
(1956-1962)
BELAÚNDE
(1963-1968)
VELASCO
(1968-1975)
MORALES BERMÚDEZ
(1975-1980)
BELAÚNDE
(1980-1985)
GARCÍA
(1985-1990)
FUJIMORI
(1990-2000)
TOLEDO
(2001-2006)
GARCÍA
(2006-2011)
HUMALA
(2011-2016)
KUCZYNSKI
(2016-2018)
VIZCARRA
(2018-2020)
MERINO
(2020-2020)
SAGASTI
(2020-2021)
18
18
2020 ANNUAL REPORT History and long-term vision
68YEARS
SILVER
Acquisition of the Julcani mine
in Huancavelica Founding of
Buenaventura
BVN listed on the
Lima Stock Exchange
a Stock Ex
BVN acquires 11% of
El Brocal. As of 2017, BVN
COPPER
holds 61%
JV1:
Privatization of Cerro Verde
COPPER
(with Cyprus)
JV₃:
(1994: 30K → 2017: 450-500K Cu MT) 15 x
GOLD
La Zanja (1M oz/Au
produced to date)
JV₄:
Mn
Rio Seco
Inauguration of the
chemical plant
1953
1971
1979
1994
2010
2013
GOLD
First doré bar obtained at
Tambomayo
2016
1967
GOLD
Orcopampa
1975
SILVER
Uchucchacua
(1967: 75 → 2017: 1.5K TPD) 20x
(1975: 150 → 2017:~4K TDP) 25x
1993
GOLD
First doré bar obtained at
Yanacocha (Over 36M
oz/Au produced to date)
JV2:
1996
First Latin American
mining company to be
listed on the New York
Stock Exchange
2011
GOLD
First doré bar obtained at
Coimolache (1M oz/Au
produced to date)
JV₅:
2014
Huanza:
Hydroelectric Plant: begins
commercial operations (100
MW)
GOVERNMENTS OF PERU
ODRÍA
(1948-1956)
PRADO UGARTECHE
(1956-1962)
BELAÚNDE
(1963-1968)
VELASCO
(1968-1975)
MORALES BERMÚDEZ
(1975-1980)
BELAÚNDE
(1980-1985)
GARCÍA
(1985-1990)
FUJIMORI
(1990-2000)
TOLEDO
(2001-2006)
GARCÍA
(2006-2011)
HUMALA
(2011-2016)
KUCZYNSKI
(2016-2018)
VIZCARRA
(2018-2020)
MERINO
(2020-2020)
SAGASTI
(2020-2021)
19
19
/ THE HEALTH
AND INTEGRITY
OF EVERYONE IS
OUR PRIORITY
Corporate Culture
T
R
O
P
E
R
L
A
U
N
N
A
0
2
0
2
20
20
2020 ANNUAL REPORT
2121
Corporate Culture
Vision
›
Develop mineral resources while creating the
highest possible value for society.
Mission
›
Be the mining company of choice and the most
widely accepted among communities, authorities
and the general public.
›
Make the company as highly valued as possible
by all of its stakeholders.
T
R
O
P
E
R
L
A
U
N
N
A
0
2
0
2
22
22
2020 ANNUAL REPORT
/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
Values
›
SAFETY
Promote respect for our team members’ lives in
all our processes, operations, and activities.
›
›
›
›
›
HONESTY
Act in an upright and honest manner, never lying,
deceiving, or omitting the truth.
INDUSTRIOUSNESS
Be passionate about our work, giving everything
our best and acting efficiently, safely, and
responsibly.
LOYALTY
Make a commitment to the company, its mission,
vision, and values. We are all part of the same
team.
RESPECT
Be considerate and treat others with courtesy
and respect for their ideas, their culture, and
rights.
TRANSPARENCY
Be truthful, clear, timely and unambiguous in all
communications and actions.
23
Corporate Culture
Sustainability
SAFETY
COMMUNITY RELATIONS
ENVIRONMENT
GOLD
SILVER
BASE
METALS
GOLD
SILVER
BASE
METALS
E
U
L
A
V
Tambomayo
Orcopampa
Coimolache (JV)
La Zanja (JV)
Yanacocha (JV)
›
›
›
›
›
Uchucchacua
Julcani
›
›
El Brocal
Cerro Verde
›
›
San Gabriel
›
Yumpaq
›
Río Seco (Chemical plant)
Yanacocha Sulfuros (JV)
Coimolache Sulfuros (JV)
Trapiche
›
›
›
›
OPERATIONS
PROJECTS
T
R
O
P
E
R
L
A
U
N
N
A
0
2
0
2
24
24
2020 ANNUAL REPORT
/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
Sustainability
SAFETY
COMMUNITY RELATIONS
ENVIRONMENT
GOLD
SILVER
GOLD
SILVER
BASE
METALS
BASE
METALS
E
U
L
A
V
Tambomayo
Orcopampa
Coimolache (JV)
La Zanja (JV)
Yanacocha (JV)
›
›
›
›
›
Uchucchacua
Julcani
›
›
El Brocal
Cerro Verde
›
›
San Gabriel
›
Yumpaq
›
Río Seco (Chemical plant)
Yanacocha Sulfuros (JV)
Coimolache Sulfuros (JV)
Trapiche
›
›
›
›
OPERATIONS
PROJECTS
25
25
/ THE HEALTH
AND INTEGRITY
OF EVERYONE IS
OUR PRIORITY
Operations
IN 2020, COMPAÑÍA DE MINAS
BUENAVENTURA S.A.A. OPERATED
EIGHT MINING UNITS OF WHICH FIVE
ARE UNDERGROUND (ORCOPAMPA,
UCHUCCHACUA, JULCANI,
TAMBOMAYO AND MARCAPUNTA)
AND THREE ARE OPEN-PIT UNITS (LA
ZANJA, COIMOLACHE Y TAJO NORTE).
T
R
O
P
E
R
L
A
U
N
N
A
0
2
0
2
26
26
2020 ANNUAL REPORT
2727
Operations
Tambomayo
(100% BVN)
The unit Is located in the province of Caylloma, in
the Arequipa region. Tambomayo is an epithermal
deposit with quartz veins and mineralization
mainly of gold and silver with significant lead and
zinc content.
In 2020, due to COVID-19 health emergency,
the plant reduced its operations from March
16 to April 29, restarting operations gradually
towards the end of the year. A surveillance plan
was established with prevention protocols that
included the screening process for the entry, stay
and exit of personnel with rapid and molecular
tests. In addition, the work system was modified
from 14 x 7 to 28 x 14, camp habitability was
increased from 470 to 650 people, and 2 dining
rooms and 2 locker rooms were built in addition to
the main dining hall and the main locker room. In
2021, habitability will increase to 696 people, the
work system will return to 14 x 7 and the screening
process for workers will be updated with antigen
and molecular tests.
The main structure is the Mirtha vein, which runs
NW-SE. At its SE end are the Paola and Paola
Norte veins are being developed. These three veins
account for 85% of the total mineral resources of
this deposit.
According to the consolidated net parts, in 2020,
510,405 DMT were processed with 5.10 g/t Au,
3.97 oz/t Ag, 1.45 % Pb and 1.92 % Zn, recovering
63,477 ounces of gold, 1’668.852 ounces of silver,
6.550 FMT of lead and 5.266 FMT of zinc. The
metallurgical recovery achieved was 75.80% for
Au and 82.39% for Ag, 88.30% for Pb and 53.62%
for Zn. The average annual cash cost was US$941
per oz of Au.
Mineral reserves as of December 31, 2020 are
as follows: 2’338.910 DMT, with 0,107 oz/t gold
(3.32 g/t), 4.08 oz/t silver, 1.00% lead and 1.50%
zinc, which represent 249.427 ounces of gold,
9’545.803 ounces of silver, 23,462 MT of lead and
35,060 MT of zinc.
The measured and indicated resources are 755,001
DMT with 0.10 oz/t gold (3.01 g/t), 4.24 oz/t silver,
0.95% lead and 1.48 % zinc, which represent 72,968
ounces of gold, 3’200,771 ounces of silver, 7,147 MT
of lead and 11,161 MT of zinc.
In the geology area, 119 meters of exploration
works, and 27,456 meters of diamond drill holes
were carried out. This program was aimed at
completing the reconnaissance of known structures
within the operation and at recategorizing and
extending resources (infill drilling). Three targets
28
2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
IN TAMBOMAYO WERE PROCESSED
63,477
OF GOLD IN 2020
OUNCES
were primarily explored: Mirtha Este, Melissa,
Gisela-Catalina, Carmen Norte and Profundización,
the objective of which is to open new exploration
fronts around the current area of operation
between levels 4,540 and 4,340. In 2021 we will
continue exploring these new areas.
The mine area undertook 4.076 meters of mining
work, of which 62 meters correspond to drilling
and 4,014 meters to preparation.
The Huaruro Irrigation Project, as part of the
mining unit’s social commitment is the expansion
and improvement of the Belen, Paclla, Cosñirhua,
Malata and Tapay countryside in the district of
Tapay over a 246-hectare area. In 2020, US$ 4.3
M were invested in this project for a 1.1-km water
collection and delivery works. In addition, 2.2 km
of pipes were installed, and the pipe-rack works
was completed in the Fure area.
29
Operations
Orcopampa
(100% BVN)
The Orcopampa Unit is located in the province of
Castilla, in the region of Arequipa, at 3,800 m.a.s.l,
150 km NW of the city of Arequipa in the Southern
Andes of Peru. It is a fissure-type epithermal
deposit of precious metals (Au – Ag). Currently it
operates the Chipmo mine and it contains a system
of gold-bearing veins related to tellurides.
In 2020, due to COVID-19 health emergency,
the plant stopped its operations from March
16 to June 4, restarting operations gradually
towards the end of the year. A surveillance plan
was established with prevention protocols that
included the screening process for the entry and
exit of personnel with rapid and molecular tests.
In addition, the work system was modified from
14x7 to 28x14, camp habitability increased from
492 to 580 people. Chipmo offices were modified
to provide 95 beds and where 1 satellite dining
room with a capacity for the 95 workers per shift
was also implemented. By 2021, habitability will
increase to 660 people, the work system will return
to 14 x 7 and the screening process for workers
will be updated with antigen and molecular tests.
According to the consolidated net parts, in 2020
the plant processed 88,249 t of ore with a grade
of 0.47 oz/t gold (14.6 g/t) and 0.13 oz/t silver,
recovering 41,129 ounces of gold and 9,069 ounces
of silver. The metallurgical recovery achieved was
96.41% for Au and 74.89% for Ag. The average
annual cash cost was US$962 per oz of Au.
30
2020 ANNUAL REPORT
/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
IN ORCOPAMPA WERE PROCESSED
41,129
OF GOLD IN 2020
OUNCES
The measured and indicated mineral resources
exclusive of the reserve report: 425,072 DMT with
0.30 oz/t gold (9.40 g/t Au) and 0.41 oz/t silver,
which represent 128,479 ounces of gold and
175,700 ounces of silver.
The measured and indicated mineral resources
exclusive of the reserve report: 536,844 DMT with
0.34 oz/t gold (10.43 g/t Au) and 0.51 oz/t silver,
which represent 180,080 ounces of gold and
273,790 ounces of silver.
In the geology area, 1,300 meters of exploration
works, and 15,532 meters of diamond drill holes
were carried out, mainly focused on exploration
drilling (11,975 m) and recategorization drilling
(3,557 m) of the Pucará Sur veins, R4, Pucara
Sur Piso, Pucarina, María Isabel 2, Ocoruro and
Nazarene, between levels 3,690 and 3,540. In
2021, exploration works will be prioritized in the
Pucara Sur (System R4), Pucarina Este and System
N20°E sectors.
The mine area undertook 2,643 meters of mining
works, of which 64 meters were development
works and 2,579 meters were preparation works.
31
Operations
Compañía Minera Coimolache S.A.
(40.095% BVN) Tantahuatay
Buenaventura is the company responsible for the
management of Compañía Minera Coimolache S.A. (40%
BVN, 44% SPCC and 16% ESPRO), which operates the
Tantahuatay mine, located in the district of Hualgayoc,
in the province of the same name, 50 kilometers north
of the city of Cajamarca.
In 2020 and in light of the COVID-19 health emergency,
mining at the Tantahuatay 2 pit and the transfer of ore
from Gold Fields stopped on March 16, until May 12 and
June 4, respectively, dates on which the operation began
to resume gradually towards the end of the year. Mining
operations at the Ciénaga Norte pit were postponed
until August 18. A surveillance plan with prevention and
control protocols was established, the work system
changed from 9 x 5 to 28 x 14, and the capacity of
camps, offices, vehicles, and dining rooms was reduced.
Habitability in the camps increased from 1,150 to 1,550
people through the acquisition of 104 portacamps and
the installation of partitions in 26 tents. Additionally, 1
dining room with a capacity for 72 workers per shift was
implemented, as well as a cleaning team made up of 10
employees, and a disinfection team for the facilities. The
personnel entry screening process was carried out with
a rapid and molecular test, in addition to performing
control tests every half-shift for the risk group. In 2021,
the current version of the protocol will be updated, and
the work system will return to 9 x 5; entry, stay and exit
screenings for each shift will be carried out with antigen
and molecular tests.
Mining was performed in the Tantahuatay 2 and
Ciénaga Norte pits, between levels 3,964 to 3,860
32
2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
IN COIMOLACHE WERE PROCESSED
106,017
OF GOLD IN 2020
OUNCES
and 3,924 to 3,860, respectively.
A total of 12’043,702 DMT oxide ore were sent to the
leach pads, with grades of 0,014 oz/t gold (0.43 g/t) and
0,485 oz/t silver (15.24 g/t), of which 1’254,956 DMT came
from hauling Goldfields oxides. The production of fine
metals amounts to 106,017 ounces of gold and 699,361
ounces of silver, of these recovered ounces of gold 344
oz correspond to re-leaching and 105,674 to run-of-mine
ore. As of the close of 2020, there is ore remaining in the
pad, counted as Inventory in Pad, totaling 1,907 ounces
of gold and 78,997 ounces of silver. The average annual
cash cost was US$ 854 per oz of Au.
With regard to the oxide development plan, 100 m of
a 700 m drill program has been implemented in the
Tantahuatay 2 pit, with the purpose of categorizing
inferred resources to measured/indicated. This program
was delayed due to the pandemic.
With regard to the Sulfides Project, the works were
aimed at reinterpreting the geological model in the
high copper-gold-grade zone, starting with resurveying
13,854 m to create an infill drilling program that allows
better definition of the resource model.
As of December 31, 2020, Tantahuatay’s proven and
probable mineral reserves of oxides total 75’193,421
DMT with grades of 0,011 oz/t gold (0,330 g/t) and 0,231
oz/t silver (7,191 g/t), which represent 798.079 ounces of
gold and 17’384,663 ounces of silver.
This result includes 6 mineral deposits, two currently in
production (Tantahuatay-2 and Ciénaga Norte) and the
Mirador Norte, Mirador Sur, Tantahuatay 2 Extension
Nor-Oeste and Tantahuatay 5 projects. The calculation
of reserves in the deposits was based on an economic
pit of 1,600 USD/Oz Au.
The measured and indicated oxide mineral resources
exclusive of reserves as of December 31, 2020 and within
the economic cone of US$ 1.760/oz total, 15’507,313
DMT with 0.0080 oz/t gold (0,250 g/t), 0.3882 oz/t
silver (12,073 g/t), which represent 124,468 ounces of
gold and 6’019,395 ounces of silver.
The extractions from the leach pads in 2020 were: Gold
64% and Silver 12%. The cumulative extractions from
the leach pad from the start of operations through
December 31, 2020 were: Gold 74% and Silver 17%.
In December 2020, the construction of the 5-ha Leach
Pad in Tantahuatay and the 1.8-ha leach pad in Ciénaga
Norte were completed and are used to process ore from
the Tantahuatay, Ciénaga and Mirador pits.
In addition, 3 ponds (20,000.00 m³) and a concrete-
lined collection channel (700 m) were built, and HDPE
pipes (2.5 km) were installed, all part of Mirador pit’s
contact water management. In addition, Pond 103
was expanded to 4.000 m³ for the management of
DME CN effluents.
As part of road infrastructure development, construction
of the Haul Road Mirador (0.40km) was undertaken to
aid in the development of the pit of the same name.
33
Operations
Minera La Zanja SRL
(53.06% BNV)
Minera La Zanja SRL is a subsidiary of Buenaventura
that operates the La Zanja Mine, located in the district
of Pulán, in the province of Santa Cruz, 107 kilometers
northwest of the city of Cajamarca.
In 2020 and in light of the COVID-19 health emergency,
mining at the San Pedro Sur and Pampa Verde pits
stopped from March 17 to May 27, and again from
August 12 to August 31 due to health controls, gradually
restarting operations on September 1 towards the
end of the year. A surveillance plan with prevention
and control protocols was established to change the
work system from 9 x 5 to 28 x 14, and the capacity
of camps, offices, vehicles and dining rooms was
reduced. Habitability in the camps increased from 496
to 616 people, with the construction of 7 igloos (with
a capacity for 84 people) and by making other spaces
habitable. The personnel entry screening process was
carried out with a rapid and molecular test, in addition
to performing control tests every half-shift for the risk
group. In 2021 the current version of the protocol will
be updated, and the work system will return to 9 x 5;
entry, stay and exit screening for each shift is carried
out with antigen and molecular tests.
Operations focused on the San Pedro Verde and San
Pedro Sur pits. 1’639.008 DMT of ore were sent to
the leach pad from the Pampa Verde and San Pedro
Sur pits with 0,012 oz/t gold (0,365 g/t) and 0,302
oz/t silver (9,407 g/t) on average, recovering 17,228
ounces of gold and 84,641 ounces of silver, and of the
recovered ounces of gold 8,716 oz correspond to re-
34
2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
IN LA ZANJA WERE PROCESSED
17,228
OF GOLD IN 2020
OUNCES
leaching and 8,512 oz to run-of-mine ore. The average
annual cash cost was US$941 per oz of Au.
Since the operation began at La Zanja in 2010, a total
of 1’099.544 ounces of gold and 2’832.484 ounces of
silver have been produced.
The mineral reserves of the open pits total 5’196,635
DMT with 0.012 oz/t gold (0.127 oz/t) and 0.127 oz/t
(3.945 g/t silver which represent 64,596 ounces of gold
and 659,093 ounces of silver. In addition, 1,175 ounces
of recoverable gold and 33,133 ounces of silver remain
in inventory at Pads and at the Plant.
The measured and indicated oxides mineral resources
exclusive of reserves as of December 31, 2020 and
within the economic cone of US$ 1.760/oz total,
9’116,578 DMT with 0.0132 oz/t gold (0,411 g/t), 0.2891
oz/t silver (8,992 g/t), which represent 120,435 ounces
of gold and 2,635,693 ounces of silver.
In 2020, the exploration area drilled a total of 70
diamond drill holes, of which 16,771 m were drilled
in the Corredor Emperatiriz – Sector Emperatriz Sur
project.
35
Operations
Uchucchacua
(100% BVN)
The Uchucchacua unit is located in Oyón district, in the
province of Oyón, Lima region. It is an underground
mining operation that produces silver, lead, and zinc.
In late 2019, the Yumpaq Project was integrated into
our unit after completing the delineation of Reserves
and Resources.
Yumpaq is located 5 kilometers NE of Uchucchacua and
consists of a system of veins with a predominantly NE
orientation, which are in tension with the Cachipampa
fault that controls the mineralization of Uchucchacua.
In 2020, in the light of the COVID-19 health emergency,
the concentrator stopped operations on March 16,
gradually resuming operations in May and June, and
stopping again in July. In August, operations resumed
gradually and finally, since September 5, operations
have been carried out continuously, aiming at
restoring the levels of preparation, development, and
infill exploration within mine.
A surveillance plan with prevention protocols was
established where the work system changed from
14 x 7 to 30 x 15. Also, a maintenance campaign was
carried out on the lodging modules to guarantee
1,324 beds which were increased by 120 to a total of
1,444 beds.
Operational controls were implemented to mitigate
Installation of thermal
COVID-19 transmission:
imaging cameras, hand basins with pedal systems,
infographics related to COVID-19 control, foot baths
and alcohol gel dispensers, physical barriers on tables
and in the dining room service line, and use of buses
at 50% capacity. In addition, a company specialized in
disinfection was hired for the facilities.
When operations restarted, the screening process for
the entry and exit of personnel included rapid tests
in the first stage (May-2020), and in the second stage
(June-2020) the molecular test was added.
In 2021 the surveillance plan will be updated, the work
system will return to 14 x 7, and the entry and exit
screenings of workers will be carried out with antigen
and molecular tests.
In 2020, 550,718 DMT were treated, with 10.10 oz/t
silver, 1.03% of lead, and 1.56% of zinc, with the ore
coming from the Socorro, Carmen, and Casualidad
Mines, obtaining 5,000.312 ounces of silver, 5.151 FMT
of lead, and 5,223 FMT of zinc. The average annual
cash cost in 2020 was US$22.24 per oz of Au.
Uchucchacua’s mineral reserves, including the Yumpaq
Project, as of December 31, 2020, totaled 7’616,848
DMT, with 9.67 oz/t of silver, 1.11% of lead, 1.93% zinc,
and 6.75% of manganese, which represent 73’661,978
ounces of silver, 84,846 MT of lead, and 146,946 MT
of zinc. Within this total, the Yumpaq Project accounts
for 1’132,996 DMT, with 19.35 oz/t silver, 0.43% of
36
2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
IN UCHUCCHACUA WERE PROCESSED
5’000,312
OF SILVER IN 2020
OUNCES
37
Operations
Uchucchacua
(100% BVN)
lead, 0.76% of zinc, and 15.51% of manganese, which
represent 22,088.630 ounces of silver, 4,856 MT of
lead, and 8,584 MT of zinc.
The report on measured and indicated resources
exclusive of reserves of the Uchucchacua Unit and the
Yumpaq Project are 2’334,609 DMT with 9.79 oz/t
silver, 1.20% lead, 2.06% zinc and 9.08% manganese,
which represent 22,865,461 oz of silver, 28,041 MT of
lead and 48,162 MT of zinc.
Progress in exploration undertaken included 1,753
meters of mining works and 30,172 meters of
diamond drill holes, focused primarily on the Socorro,
Cachipampa, Carmen, and Casualidad sectors, of
which 22,498 meters correspond to infill drilling, and
7,674 to explorations.
In 2021, exploration works will be prioritized toward the
projection of silver mineralized bodies with economic
values between levels 4,550 and 4,120, and which are
associated with the favorable horizons of the eastern
flank of the Cachipampa anticline. Diamond drilling
will be carried out toward the Nora and Sandra veins
considered in the long-term exploration works, with
the aim of generating inferred and potential resources;
Also, for medium- and short-term exploration works,
diamond drilling will be carried out toward Irma Viviana
veins 2.3,4, Socorro 2, Geraldine, Karen, Rosalía, Gina
Socorro, Lilia, Marisol, Ramal Nora, Liliana, Deissy,
Lesly, Rosa and Rita which will allow to generate
measured, indicated and inferred resources.
38
2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
The mine area undertook 14,685 meters of horizontal
and vertical mining works (14,472m and 213m),
distributed in the following stages: 618 meters of
development works, 11,884 meters of preparation
works, 1,753 meters of exploration works and 217
meters of infrastructure works.
At the Uchucchacua processing plant, flotation stage
Circuit II was set up to process high-grade silver ore.
In February 2020, the prior consultation process for
the components began (73 diamond drilling platforms,
1 vent, a 6.3-km access, Ramp 4490, and the pampa
Salera camp) approved in the 2nd amendment to
the EIAsd of the Yumpaq Carama project, before the
General Office of Social Management (OGGS) of the
Ministry of Energy Mines.
On November 10, 2020, the 3rd amendment to the EIAsd
of the Yumpaq Carama project (Yumpaq-Uchucchacua
physical integration, power transmission line from
Uchucchacua to Yumpaq, pilot pit, underground works,
camps and deposits) was submitted to the General
Office of Mining Environmental Affairs (DGAM) of the
Ministry of Energy and Mines (MEM). It is expected to
be approved during the second quarter of 2021.
39
Operations
Julcani
(100% BVN)
The Julcani Unit is located in the province of Angaraes,
department of Huancavelica, in the central Andes of
Peru. It is an underground operation that essentially
produces silver with lead and gold content.
In 2020, due to COVID-19 health emergency, the
its operations from
concentrator plant stopped
March 16 to June 5, restarting operations gradually
towards the end of the year. A surveillance plan with
prevention protocols was established and the work
system changed from 6 x 1 to 28 x 14. Habitability in
camps in Julcani increased from 150 to 746 people
within the industrial zone. Also implemented were
2 dining rooms with a capacity for 300 workers per
shift as well as a cleaning team of 15 employees, and
a disinfection team for the facilities. The screening
process for staff entry is performed with rapid
and molecular testing. In 2021 we will update the
surveillance plan and return to the 14 x 7 work system,
and the entry and exit screenings of workers will be
carried out with antigen and molecular tests.
In 2020, 71,943 t of ore from the Acchilla mine were
processed, with a head grade of 22.67 oz/t silver,
0,068 g/t of gold, 0.63% of lead, and 0.18% of copper,
recovering 1’579,918.6 ounces of silver, 68.4 ounces
of gold, 407.9 MT of lead and 127.47 MT of copper.
The average annual cash cost in 2020 was US$22.24
per oz of Au.
In addition, in 2020, tailings from Tailings Dams 1-5
were processed, recovering 96,812 ounces of silver
and 247 ounces of gold.
Mineral reserves as of December 31, 2020 between
the Acchilla and Estela mines totaled 269,310 t with
20.93 oz/t silver and 1.86% lead; which represent
5’635.985 fine oz of silver, 1,859 oz of gold, 5,001
MT of lead and 1,205 MT of copper; of these total
reserves, 77% belong to the Acchilla Mine and the
remaining 23% to the Estela Mine.
Mineral resources exclusive of reserves total
92,075 t with 21.78 oz/t silver, 1.29% lead, which
represent 2’005,837 ounces of silver and 1,189 MT
of lead.
In 2020, at the Acchilla Mine, a total of 4,042 m
of underground mining works and 16,130 m of
diamond drill holes were executed. The new ore
found totaled 52,596 t with 21.94 oz/t silver, 0.92%
lead (1’154,196 ounces of silver), with a volume
calculation ratio of 13.0 t/m of advance. The veins
that contribute the new mineral are Porvenir, Leyci,
Josmery, Yanela, Melisa R, Acchilla 7B Ramal, Jesús
R 2B, Romina, Sta. Fe Techo 1.
The mine area also undertook 3,614 meters of
mining works, of which 425 meters correspond
40
2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
IN JULCANI WERE PROCESSED
1’676,731
OF SILVER IN 2020
OUNCES
to development works and 3,189 meters to mine
preparation works
By 2021, at the Acchilla mine, exploration works will
be oriented towards the Melissa and Porvenir vein
sectors between levels 510 and 710. Exploration
works towards the SE to the Acchilla 7B R vein
system between levels 610 and 710 are still pending,
in addition to the search for veins with Ag and Au
content in the SW sector of the Acchilla mine within
the Yanela vein area and 28 between levels 560
and 660. These exploration works are expected
to confirm in 2021, 200,000t of reserves and new
resources between exploration works (8,400m)
and with diamond drilling. (24,000m).
In addition, exploration works north of the Estela
mine were restarted in Nv610, with the aim of
evaluating and defining the structural continuity of
the Angie and Belén veins, as well as other branches
of the same system with Pb and Ag content to
increase the Unit’s resources.
The processing plant started processing tailings at
the industrial level in July 2020 with an average
treatment of 400 TPD, increasing in December to
500 TPD.
41
Operations
Sociedad Minera el Brocal S.A.A.
(61.43% BVN)
Minera Sociedad El Brocal S.A.A. operates the
Colquijirca mining unit in the province and region of
Cerro de Pasco, 15 km south of the city of the same
name.
It currently extracts zinc, lead and silver minerals
from the Tajo Norte open pit mine, and copper ore
from the Marcapunta Norte underground mine.
Ore from both zones are processed in Concentrator
Plants 1 and 2 at Huaraucaca.
In 2020, in response to the COVID-19 health
emergency,
the concentrator plant stopped
operations from March 16 to June 3, where Plant
1 stopped for 77 days and Plant 2 for 78 days.
Operations resumed gradually towards the end of
the year.
A surveillance plan was established with prevention
protocols where the atypical 30 x 15 work system
was changed. We increased habitability within
the industrial zone of Huaraucaca, having up to
368 beds available which were distributed among
the different shifts. We are also in the process of
implementing a kitchen adjacent to the dining
room within the industrial zone. Furthermore, in
February we should complete the installation of
420 beds in Marcapunta Sur near the access to the
underground mine with all habitability conditions,
this in addition to building a full dining room which
42
2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
IN BROCAL WERE PROCESSED
54,909
OF ZINC IN 2020
OUNCES
should be completed in the second quarter of this
year.
The screening process for staff entry is performed
with rapid and molecular testing. In 2021 we will
update the surveillance plan, return to the 14 x 7
y work system, and the entry and exit screenings
of workers will be carried out with Antigen and
Molecular tests.
In 2020, 2’782.313 DMT of lead and zinc ore from
Tajo Norte were processed, recovering 2’520.528
ounces of silver, 20.066 MT of lead and 54,909 MT of
zinc. In addition, 91,477 DMT of copper ore from Tajo
Norte were processed recovering 175,556 ounces
of silver, 36 ounces of gold and 570 tons of copper.
Likewise, 1’659.731 DMT of copper ore (Marcapunta
Norte) were processed, recovering 812,501 ounces
of silver, 11,816 ounces of gold and 30,608 MT of
copper.
In 2020, the operation reached a total processing
volume of 4,533.521 DMT which represent an
average daily processing volume of 16,147 DMT. The
cumulative fine production in 2020 amounted to
3’508.585 ounces of silver, 11,852 ounces of gold,
20,066 MT of lead, 54, 909 MT of zinc and 30,608
MT of copper, contained in the 3 concentrates
produced. The average annual cash cost in 2020
was US$ 5,135/MT Cu and US$ 1,923/MT Zn.
43
Operations
Sociedad Minera el Brocal S.A.A.
(61.43% BVN)
The proven-probable mineral reserves as of
December 31, 2020 for the Tajo Norte - Smelter (Cu-
AG) are 31,759.551 DMT, with 0.8 oz/t silver, and
1.48 % Cu, which represent 25,352.124 ounces of
silver and 468,659 MT of copper.
The proven-probable mineral reserves as of
December 312020 for Tajo Norte (Zn-Pb-Ag zone)
are 9,840.358 DMT, with 2.15% Zn, 1.00% Pb and
2.76 oz/t Silver, which represent 211,394 MT of Zinc,
97,918 MT of Lead and 27’6,315 ounces of Silver.
The proven-probable mineral reserves as of
December 31, 2020 for Marcapunta Norte are
30,529.941 DMT, with 0.021 oz/t gold, 1.29% copper,
1.04 oz/t silver, which represent 654,523 oz of gold,
392,951 MT of copper, and 31,650.860 ounces of
silver.
The measured-indicated exclusive resources as of
December 31, 2020 for the Tajo Norte - Smelter
Cu-Ag) are 1’061,041 DMT, with 0.7 oz/t silver, and
1.40% Cu, which represent 742,325 ounces of silver
and 10,700 MT of copper.
The measured-indicated exclusive resources for the
Tajo Norte - Smelter (Zn – Pb- Ag) are 5’587,692 DMT,
with 3.17% Zn, 0.97% Pb and 0.74 oz/t silver, which
represent 177,371 MT of zinc, 54,282 MT of lead and
4’114,373 ounces of silver.
44
2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
IN BROCAL WERE PROCESSED
30,608
OF COPPER IN 2020
TMS
sequence of the northern wall. The instability was
constantly monitored with a radar allowing actions
to be taken in the face of potential harm to personnel
and damage to equipment.
At the concentrator plants, resources were directed
to critical equipment. Over 1,200 Maintenance
Plans were implemented, spare parts lead time was
improved, and major equipment was re-powered;
and at Plant 1 the Dominium mill was put into
operation on February 15, stabilizing production
on February 27. In addition, the 7’x12’ N°4 mill was
replaced; and in plant 2, 2.4 km of belt were changed
in Overland 2b and 600m in Overland 3; the HPGR
rollers were changed, the cracks of the washing drum
were repaired and 3 10’ x 8’ pumps were installed on
train 6 for pumping tailings, which contributed to the
availability of the plants, contributing to increasing
plant availability by 3%.
The measured-indicated exclusive resources for
Marcapunta Norte are 21’581,865 DMT, with 0.026
oz/t gold, 1.41% of copper, 0.93 oz/t silver, which
represent 551,265 ounces of gold, 302,146 MT of
copper and 20’105,318 ounces of silver.
In 2020, 22,816 m of diamond drill holes were
undertaken on the surface and within the mine.
Of these, 73% (16,662 m) was performed in the
areas of Marcapunta Norte, Marcapunta SW and
Marcapunta SE (underground), with the purpose
of recategorizing measured, indicated and inferred
resources to Cu-Ag-Au ore reserves, with positive
results with the increase of Cu-Au values. In
addition, 25% of this length corresponds to drilling
in the Tajo Norte with the aim of recategorizing
measured, indicated and inferred resources to
mineral reserves of Zn, Pb, Ag and Cu. Another 352
m were undertaken in 2 boreholes in Marcapunta
Sur for geo-metallurgical studies of mixed copper
ore. Laboratory tests are in the process of being
analyzed, which will help increase our resources.
In Marcapunta Norte, an underground mine, 2,327.5
meters of development mining works and 6,896.8
meters of preparation works were performed,
which add up to 9,224.3 meters.
In 2020, the instability of the northern slope in
the open pit caused minimal delays in the mining
45
Operations
Minera Yanacocha S.R.L.
(43.65% BVN)
Yanacocha is a mining district with several volcanic
events that have generated gold surface oxide
deposits underlying deposits of copper sulphides
with arsenic. It is located 54 km north of the city
of Cajamarca and is operated by Newmont Mining.
Yanacocha has produced approximately 38.6 M oz
of Au since 1993 to date.
Gold production in 2020 totaled to 340 thousand
ounces versus the 527 thousand ounces produced
in 2019. Silver production came to 2.140 million
ounces versus the 0.737 million ounces produced
in 2019. In 2020, the Gold Mill processed 4.068
million dry metric tons of ore, with an average
grade of 1.14 grams per ton and a gold recovery of
65.7%, obtaining a gold production of 100 thousand
ounces compared to the 229 thousand ounces in
2019. The ore discharged in the leach heap pads
in 2020 totaled 15.3 million dry metric tons, lower
than that in 2019, which totaled 31.5 million tons.
This is mainly due to the lower extraction of ore
at Tapado Oeste Layback and La Quinua Sur, with
gold production totaling 240 thousand ounces,
compared to the 298 thousand ounces in 2019.
Minera Yanacocha’s proven and probable reserves
as of December 31, 2020 total 6.6 million ounces of
gold, 97.3 million ounces of silver and 0.70 million
MT of copper. As of 31 December 2020, resources
amounted to 8.2 million ounces of gold, 60.9 million
ounces of silver and 0.52 million MT of copper.
Yanacocha’s CAPEX in 2020 came to US$ 41
million, with the main capital expenditures being
the Quecher Main Project ($25.7M), the EWTP LQ
Upgrade Project ($2.5M), the Water Treatment
Phase II Project ($2.6M), the Quecher Main 2 Project
(US$ 0.8 M), the KM 52 Camp Expansion Project
(US$ 4.8m), which serves to ensure isolation and
health protocols to prevent COVID-19 infections,
the Carachugo 14 Improvement Project
($ 0.4m) and the Yanacocha Shield Project ($4.2M).
Mine closure expenditures totaled US$ 23.2M.
Quecher Main is the project that continues Yanacocha’s
operations, contributing 1.3 million ounces of gold; its
operations are scheduled through 2027.
The EWTP LQ Plant Upgrade Project was completed
in June 2020. Quecher Main was able to complete the
construction of 13.2 ha leach pad in December 2020.
By 2021, Sustainable Capital Projects has approved
a capitalizable budget of US$ 43.3M that considers
mainly the construction of 13.6 ha heap leach pad
in Carachugo 14, the Water Treatment Phase II
Project, the Quecher Main 2 Project, the Carachugo
14 Improvement Project, and the Yanacocha Shield
Project. Mine closure has a budget of US$ 93.4M
for 2021.
The Yanacocha Sulphides Project is located within
the current area of operation and consists of
processing sulfide minerals for copper and gold
46
2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
IN YANACOCHA WERE PROCESSED
340,052
OF GOLD IN 2020
OUNCES
4747
Operations
Minera Yanacocha S.R.L.
(43.65% BVN)
production, which would extend the life of the
mine until 2041. Due to the health measures issued
by our authorities for the protection against of
COVID-19, any works requiring anyone to be in the
field, such as geotechnical drilling, were temporarily
paralyzed and progressively resumed according to
the reactivation plans, and eventually completed
in September 2020. The Definitive Feasibility
study was developed remotely and is expected
to be completed in 2021 to make any investment
decisions. The Second Amendment to the Yanacocha
Environmental Impact Assessment was approved in
December 2020.
As part of the activities of the Definitive Feasibility
Phase of the project, the stope tests have been
planned in the Southern Zone of Chaquicocha
Underground which will allow to validate the mining
method, productivity, geotechnical conditions,
and the development of exploration platforms.
Because of restrictions due to COVID-19, works at
Chaquicocha Underground stopped, though care
and maintenance work continued. Additionally,
diamond drilling was carried out at Chaquicocha
Underground advancing a total of 5.548 m.
In 2020, Yanacocha continued to strengthen the
conditions for the continuity of its operations and
the viability of the Sulphides project, taking into
account the health emergency due to the COVID-19
pandemic. In 2020, Minera Yanacocha continued to
48
2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
THE DEFINITIVE FEASIBILITY STUDY
WAS DEVELOPED REMOTELY
AND IS EXPECTED TO BE COMPLETED IN
2021
TO MAKE ANY
INVESTMENT
DECISIONS
maintain its Environmental Management System
certified by the ISO 14001:2015 standard focused
on the process of continuous improvement. It
also maintained its Environmental Monitoring
Laboratory accredited by the ISO 17025 standard,
and its control over process activities certified by
the International Cyanide Management Code. The
improvements were focused on reducing water
use in its operations, evaluating alternatives for
operational improvements in processes, mainly
in those associated with water treatment, and
on understanding – with the help of the National
Center for Atmospheric Research (NCAR – USA)
– projections of climate behavior in the coming
years and from there work on plans to reduce
greenhouse gas emissions and processes to adapt
to climate change.
49
Operations
Sociedad Minera Cerro Verde S.A.A.
(19.58% BVN)
The Cerro Verde production unit is operated by
Freeport-McMoRan and is located 30 km SW
of Arequipa in the Uchumayo and Yarabamba
districts.
In 2020, 121.4 million DMT were processed by
flotation which compares unfavorably with the
143.5 million DMT processed in 2019, with a head
grade of 0,343% copper, producing 1,601 thousand
DMT of copper concentrates with an average grade
of 21.89% copper and a recovery of 84.3%. A total
of 737,614 thousand pounds of copper (334,576
tons), 18,903 thousand pounds of molybdenum
(8,574 tons) and 3.38 million ounces of silver
contained in the concentrates were produced. In
addition, 82.49 million pounds of copper cathode
(37,415 tons) were produced.
The cash cost was US$ 1,646 per pound of copper
and the total cost was US$ 2,100 per pound of
copper produced.
Mineral reserves for grinding as of December 31,
2020 are as follows: 4’002,281,000 DMT, with
0.36% Cu, 0.014% molybdenum, 0.062 oz/t silver,
which represent 12,572 thousand tons of copper,
312 thousand tons of molybdenum, 111,370
thousand ounces of silver.
Leachable reserves as of December 31, 2020 are
as follows: 75’199,000 DMT, with 0.29% Cu, which
represent 148,000 tons of copper.
In 2020, sales reached US$ 2,539 million, with a
net profit of US$ 274.5 million. Long-term debt fell
from US$ 826 million to US$ 523 million.
Investment reached US$ 179.0 million in capital
projects compared to the US$ 283.5 million
invested in 2019.
Cerro Verde has been in dispute since 2009 with
the tax authority over the collection of royalties
corresponding to December 2006 and subsequent
periods up to December 31, 2013. Cerro Verde
has been paying mining royalty installments for
the periods corresponding to January 2009 to
September 2011 and for the years 2012 and 2013
and the special tax on mining for the October 2011
to December 2013 period. There are currently no
other periods in dispute with the tax authority.
Cerro Verde believes that it is not subject to
these payments in accordance with the stability
agreement signed in 1998 with the Peruvian
government.
In February 2020, Cerro Verde
requested an arbitration proceeding before the
International Center for Settlement of Investment
Disputes (ICSID).
Coronavirus COVID-19 outbreak in Peru
On March 15, 2020, the Peruvian government
issued an Executive Order and a National
Emergency Declaration in its efforts to contain
the COVID-19 outbreak, first for 15 days which
50
2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
EN CERRO VERDE SE PRODUJERON EN TOTAL
820
MILLIONS
DE LIBRAS DE COBRE EN EL 2020
51
51
Operations
Sociedad Minera Cerro Verde S.A.A.
(19.58% BVN)
later extended for different periods until January
31, 2021. To meet government requirements, Cerro
Verde temporarily transitioned to a state of care
and maintenance and adjusted its operations to
prioritize critical activities. Cerro Verde reactivated
its operations in the second quarter after the
Peruvian government lifted the restrictions imposed
in March 2020 given the COVID-19 pandemic. On
May 4, the Peruvian government updated its state
of emergency authorizing the first phase aimed at
restarting economic activities to allow large-scale
mining operations to progressively increase theirs.
In mid-May, the Peruvian government approved
the Workplace Plan for COVID-19 Surveillance,
Prevention and Control submitted by Cerro Verde,
which establishes guidelines for the surveillance,
prevention and control of the health of workers with
risk of exposure to the virus. The implementation
of these prevention, early detection and response
measures and actions is aimed at controlling the risk
of spread and health impact caused by the COVID-19
pandemic during the development of operational
activities, aiming at protecting the health of
workers and contractors, as well as allowing the
gradual resumption of normal operations.
Because of the significant negative impacts of the
COVID-19 pandemic on the global economy, Cerro
Verde has evaluated its short-term operational
plans with a focus on maximizing cash flow and
in a weak and uncertain
protecting
liquidity
52
2020 ANNUAL REPORT
/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
economic environment and preserve asset values
for improved copper prices in advance as economic
conditions recover. The revised mine plans point to
lower costs, deferment of non-essential projects and
the preservation of long-term value of long-lasting
resources. Cerro Verde continued to move toward
the restoration of operations during the third and
fourth quarters of 2020. The Company continues
to closely monitor health and market conditions
and will make adjustments to its mine plans as
needed. The costs of idle capacity associated with
temporary closure and costs related to the impact
of the COVID-19 pandemic during 2020 amounted
to US$ 95.7 million.
53
PROJECTS
The health and political crisis in the country also
affected the development of our projects. While the
majority of the works in 2020 were mostly clerical,
the mandatory social isolation and the constant
changes of government impacted the development
of some minor field works, and particularly
the obtaining of permits requiring liaison with
neighboring communities.
I. Projects at feasibility stage
1
SAN GABRIEL PROJECT (100% BVN)
The San Gabriel Project is an epithermal
intermediate sulphidation deposit with gold
contents, and lower copper and silver values,
located in the province of General Sánchez
Cerro, in the Moquegua region.
54
2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
IN SAN GABRIEL, THE FEASIBILITY STUDY WAS
COMPLETED, CONFIRMING AND UNDERGROUND
MINING OPERATION METHOD AT A
3,000
tpd
During 2020, the feasibility study was
completed with Ausenco – Agnitia companies,
confirming an underground mining operation
using the ODF (Overhead Drift and Fill)
method at a 3000 TPD rate, processed in a
scalable gravimetry-CIL-ADR plant for the
production of Doré bars and based on the
use of filtered tailings.
Towards the third quarter of 2020, the
procedure to obtain the Benefit Concession
for the first quarter of 2021 was started.
Unfortunately, social
isolation measures
and constant authority changes impacted
the normal implementation of the Prior
Consultation process. Only confirmatory
engineering field works were performed, so
reserves are maintained as follows:
Reserves: 11.6 mt with 4.68 g/t Au, representing
1.7 Moz Au.
(Ministry of Energy
In 2021, MINEM
and Mining) will continue with the Prior
Consultation process and, at the same time,
progress will be made with detail engineering
and the selection of the teams and contractors
in order to speed up the start of the project
construction by the second semester of 2021,
avoiding delays.
2
RIO SECO INDUSTRIAL PLANT CU-AS
(100% BVN)
The Rio Seco Industrial Plant project consists
of a hydrometallurgical process to leach Cu-
As concentrates from El Brocal unit, which
allows for the extraction of copper cathodes,
a high-grade Au/Ag and As residue in the
stable form of scorodite crystals.
During 2020, the research stage was
successfully completed with the audit of
the new process by Samuels Engineering;
the feasibility studies for a 40 k tpa copper-
cathode plant were completed, achieving the
expected results; the EIA file was admitted;
and the regional
improvement plan and
subsequent zoning change for the future
plant were obtained.
The improvement of commercial terms in the
complex copper concentrates market, and
a substantial increase in installed capacity
for concentrate blending compete with the
project’s profitability. The 2021 work plan
will aim at obtaining environmental permits
and completing the issue of the feasibility
study for future implementation.
55
Proyects
IN THE TRAPICHE PROJECT
THE REVISED PRE-FEASIBILITY
STUDY CONFIRMS AN OPEN-PIT
MINING OPERATION AT
45k
tpd
PROCESSED AT A
CRUSHING PLANT-LEACHING
PAD-SX/EW
II. Projects at pre-feasibility stage
Resources: 540 mt with 0.31% Cu, representing
1.7 mt Cu (floatable).
1
TRAPICHE PROJECT (EL MOLLE VERDE S.A.C.
- 100% BVN)
The Trapiche Project is an oligocene porphyry
copper-molybdenum deposit located on the
southwest bank of the Andahuaylas-Yauri
belt, Antabamba province, Apurimac region.
During 2020, social
isolation measures
prevented the execution of in-situ column tests
and delayed environmental baseline work and,
hence, the admission of the EIA. However, it
was possible to explore a new configuration of
components aimed at maximizing the present
net value of the project with excellent results
along with M3/Mining Plus/KCB. The revised
pre-feasibility study confirms an open-pit
mining operation at 45,000 TPD, processed at
a crushing plant-leaching pad-SX/EW for the
production of copper cathodes. No additional
work was done to increase resources, so the
balance is maintained at:
Reserves: 283.2 mt with 0.51% Cu, representing
1.4 mt Cu (leachable)
In 2021, in-situ column tests will be resumed
and the EIA will be updated for admission in
the first quarter of the year, in parallel with
the Prior Consultation processes, with a view
to supporting the start of the feasibility study
in 2022.
III. Projects at scoping stage
1
COIMOLACHE SULFIDES PROJECT
(COMPAÑÍA MINERA COIMOLACHE S.A. -
40.95% BVN)
The Coimolache Sulphides Project consists of
a flotation plant for the treatment of copper
sulphides lying under the Coimolache gold
mineral that is currently being exploited.
During 2020, the conceptual study was updated and
a favorable business case for an open pit operation
and a 60k-TPD flotation plant with thickened
tailings deposition was confirmed. The inferred-
resource model continues without variations in:
56
2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
Inferred Resources: 933 mt with 0.32% Cu, 0.18
g/t Au, 7.89 g/t Ag, representing 3 mt Cu and 5.4
Moz Au.
social and land-acquisition strategy, as well as an
additional diamond drilling campaign to provide
greater certainty regarding the mineral resources.
In 2021, preliminary works will begin to support
the start of the pre-feasibility study with a view
to completing it in 2022. These works include the
57
OTHER BUSINESSES
Consorcio Energético de
Huancavelica S.A. - CONENHUA
(100% BVN)
This company was founded 38 years ago. During
2020, they sold their last regulated line (systems
the remuneration of which is fixed by Osinergmin)
and the concession changed its ownership in
September, 2020. Its COES registration number is
L-6644:
Additionally, CONENHUA continues to operate
and maintain the secondary transmission lines
and their respective substations, which provide
energy to Buenaventura’s mining and industrial
operations, both in high and medium voltage.
Said mining operations are: La Zanja, Coimolache,
Uchucchacua, Procesadora Industrial Río Seco, El
Brocal, Julcani and Tambomayo.
The performance of all the aforementioned lines
has been as per the following table:
System
Voltage
(kV)
Voltage
(kV
Location
Voltage
levels
External
Failure
(Hours)
Internal
Failure
(Hours)
Maintenance
(Hours)
Total
(Hours)
Line from Ingenio
substation to Caudalosa
substation
60
52 Huancavelica
33 kV
60 kV
0.5
0.0
0.0
0.0
10.67
11.2
9.4
9.4
138 kV
5.87
12.98
17.57
36.42
Total
6.37
12.98
37.64
57.02
58
2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
THE NEXT RESULT AFTER INCOME TAX OF
US$ 29.85
IN 2020
MILLIONS
In 2020, COES approved the Pre-operation Study
of the project called “220 kV Transmission Line
from the Cotaruse Substation to the Trapiche
Substation”, commissioned by El Molle Verde S.A.
(EMV).
In 2020, COES also approved the Pre-operation
Study of the project called “220 kV Transmission
Line from the Chilota Substation to the San
Gabriel Substation”, commissioned by Compañía
de Minas Buenaventura S.A.A. The progress
regarding environmental permits and easement
managements was not as planned due to the health
restrictions related to COVID-19.
During this period, CONENHUA was awarded the
Pre-Feasibility and Feasibility Studies of the “220kV
Transmission Line of the Ishcayucro Diversion to
the Raurapata Substation” Project, commissioned
by Compañía Minera Raura for its project of mining
expansion to 6000 TPD.
As for the hydroelectric power plants, Empresa
de Generación Huanza has continued to improve
its electromechanical facilities and equipment,
obtaining a group availability of more than 93%
and generating 425.709 GWh.
The Huanza Hydroelectric Project has arranged and
obtained the 2020 Renewable Energy Certification
issued by Spanish certifier AENOR Internacional.
The Huanza Control Room has also been replicated
in the Buenaventura Lima offices, from where
the hydroelectric plant has been operated since
December 2020.
Throughout the year, the small Huapa and Ingenio
hydroelectric power plants have generated a total
of 9.521 GWh to the benefit of the operations of
the Buenaventura Julcani mine.
The Huanza Generation Company has completed
the Feasibility Study of a photovoltaic power
generation plant in the vicinity of the San Gabriel
Project until 20MW.
The economic outturn of Consorcio Energético
Huancavelica, in consolidated terms, has reported
a total operating income of US$ 59.69 M, an
operating profit of US$ 36.20 M, and a net income
after income tax of US$ 29.85 M.
59
Other Businesses
DURING 2020
THE ACID WASHING
PLANT TREATED
14, 963
TMS
OF CONCENTRATE
Procesadora Industrial Río Seco S.A.
(100% BVN)
Procesadora Industrial Rio Seco (Rio Seco Industrial
Processing Plant) is a Peruvian company dedicated
to the production of manganese sulphate from
lead-silver-manganese
the
Uchucchacua Unit. It is located in Huaral, 102
kilometers North of the city of Lima.
concentrates of
During 2020 the acid washing plant treated 14,963.3
DMT of concentrate from the Uchucchacua Unit,
the grades being 57.4 oz/t of silver, 7.4% of lead
and 22.9% of manganese. As a result of the acid
washing operations, a concentrate with a higher
silver grade and a lower manganese content is
obtained. The following table shows the results
before and after washing:
The Sulphuric Acid Plant produced 10,546 mt of
sulfuric acid with a purity of 98%. This Plant uses
WSA (Wet Sulphuric Acid) technology, which
is clean and ecofriendly. 61.5% of the acid was
produced from elemental sulphur, and 38.5% was
produced from acid gas coming from the Acid
Washing Plant.
The Crystallization Plant produced 11.765 MT of
Manganese Sulfate Monohydrate with two dryers.
The distribution of production per dryer is shown
in the following table:
Manganese Sulphate Monohydrate
TM
4,163
7,602
11,765
Concentrate
Uchucchacua
Concentrate
Rio Seco
Concentrate
DMT
Ag
Oz/TMS
14,963.3
57.4
Pb
%
7.4
Mn
%
22.9
Spray Dryer
Spin Flash Dryer
8,844.1
96.3
12.4
2.8
Total
60
2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
One of the main projects is the Rio Seco Copper
Plant, which is in the final stage of the feasibility
study and in the process of obtaining the EIA.
Rio Seco works with the highest environmental
safety standards, continuously coordinating with
the communities of Huaral and Sayán, the Lachay
National Reserve, the Municipality of Huaral
and the Municipality of Chancay, with which the
participatory environmental monitoring program is
carried out in the area.
61
SAFETY
“
DURING 2020 THERE WERE
NO FATAL ACCIDENTS IN OUR
UNITS.
At Buenaventura, we consider SAFETY to be an
inherent part of any process and not something
separate; in this sense, safety management is the
responsibility of the operating officer in charge of
the respective process, this being part of the quality
indicators and a cross-cutting value throughout the
company.
During 2020, the Accident Rate was reduced
to 0.16, 90% less than in 2019 (1.64). One of
the factors contributing to this reduction has
been the decline in high-risk works between
March and June due to the COVID-19 pandemic.
It is important to mention that there were no
fatal accidents in the units compared to the 02
accidents of that type occurred in 2019. These
results require us to continue to make efforts and
to allocate resources to achieve sustainability of
results based on the Critical Risk Management
(operating controls) approach and the Pact for
Life (change in beliefs).
Our main activities were as follows:
T
R
O
P
E
R
L
A
U
N
N
A
0
2
0
2
62
2020 ANNUAL REPORT
/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
THE ACCIDENT
RATE WAS
REDUCED TO
90%
LESS
THAN
IN 2019
›
›
›
Approach to Unions through awareness sessions
called “An Alliance for Life: Together We Achieve
Sustainable Results.”
Reinforcement of BNV collaborators and
contractors through the activities of the “A Pact for
Life” program, related to personal commitment.
›
›
Involvement of supervisors, workers and unions
through the Participatory Safety Approach.
Improvement
in the efficiency of corrective
actions through the prioritization of engineering-
type operational controls and the application of
the ICAM methodology for accident investigation.
Deployment of the “Critical Risk Management”
initiative, focused on the prevention of fatal and
permanently disabling accidents.
We continue to work in order to achieve a Safety
Culture that involves all the collaborators of the
Buenaventura family.
63
63
/ THE HEALTH
AND INTEGRITY
OF EVERYONE IS
OUR PRIORITY
ENVIRONMENTAL MANAGEMENT
THE COMPANY CONTINUED TO PERFORM
ITS ACTIVITIES IN THE MIDST OF THE
HEALTH EMERGENCY BY COVID-19,
ORIENTING ITS INTERVENTIONS TO THE
ACHIEVEMENT OF THE ENVIRONMENTAL
SUSTAINABILITY OF ITS OPERATIONS.
L
A
U
N
A
A
R
O
M
E
M
I
0
2
0
2
64
64
2020 ANNUAL REPORT
ENVIRONMENTAL MANAGEMENT
65
65
Environmental Management
Its performance was based on an adequate and mainly-
preventive monitoring and operational control to
minimize the impacts on the environment and to achieve
an adequate management of the water resources by
controlling their quality, and strengthening the reuse
and recirculation of water in our processes. Similarly,
we have focused on the importance of reducing the
disposal of sterile material and waste via recycling and
the execution of mine closure work, priority being given
to progressive closure.
Throughout the year, 40 environmental instruments
were arranged, of which 09 were approved,
23 are still under evaluation and 08 are under
development. Important Detailed Environmental
Impact Assessments (DEIA) ––such as for the
Trapiche, Rio Seco Cobre and Yumpaq projects––
are being arranged, and, due to health restrictions,
alternative mechanisms of citizen participation
through radio and multimedia communication
In
strategies were successfully
implemented.
66
2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
THE RATE OF RECIRCULATION
IN OPEN-PIT
OPERATIONS REACHED
93%
AND ABOUT IN
UNDERGROUND
OPERATIONS
50%
addition, amendments to the Environmental Impact
Assessments of Colquijirca, Julcani, Tambomayo and
Tantahuatay of Compañía Minera Coimolache were
promoted. In the case of the San Gabriel Project, the
DEIA of which had been approved, the coordination
aimed at obtaining the benefit concession and the
construction permit was started. On the other hand,
the Supporting Technical Reports (STR), which
allow for the execution of low-impact components,
were the most frequent, adding up to 10 of this
type of management instruments. Also, this year,
the Detailed Environmental Plans (DAP) of Julcani,
Uchucchacua, Tambomayo, Colquijirca and La Zanja,
which are under evaluation, were submitted to the
authority in accordance with the environmental
standards issued by MINEM that will allow to
include existing components in a new Environmental
Instrument.
It should be noted that, due to the health emergency,
the State introduced the Prior Communication
procedure through Legislative Decree 1500-2020
and Supreme Decree No. 005-2020, which allowed
for the implementation of components associated
with sanitary measures such as camps, drinking
water plants, among others. A total of fifteen (15)
prior communications were made in the open-pit
units, and thirteen (13) in the underground units.
We have the Buenaventura Integrated Management
System (SIB) Certification, which, in reference to
the Environmental Management System (EMS), is
based on the ISO 14001:2015 international standard.
Meanwhile, the Environmental Performance Index
(EPI) was used in order to increase involvement
in the environmental processes, reaching a 95%
compliance. This Index measures the degree of
compliance of the different areas with respect
to commitments and action plans resulting from
findings from inspections, audits, supervision and
implementation of the training plan.
Water is a strategic input for different economic
sectors, especially mining. Accordingly, our
operations made efforts to use water resources
efficiently by boosting the recirculation generated in
the metallurgical process. However, it is important
to note that, during the first months of the health
emergency, plant activities were partial and, in
some cases, shut down. Therefore, the rate of
recirculation in open-pit operations reached 93%,
and about 50% in underground operations. The
water consumption rate compared to the quantity
of ore processed was 0.20 m³/TM in open pit mines
and 0.96 m³/MT in underground mines.
67
Environmental Management
WE ARRANGED
35
operating
PERMITS FOR WATER RESOURCES
In the current year, we arranged 35 operating
permits for water resources, of which 16 correspond
to treatment system authorizations (07 industrial
discharges, 08 domestic discharges, 01 drinking
water treatment system), 10 correspond to
water-use rights, 07 are permits for the execution
of minimum works
infrastructure,
embankments, riverbed cleaning) and 02 permits
for hydrogeological studies.
(hydraulic
As for the implementation of participatory water-
quality monitoring
in the environment of our
operations, considering the health emergency caused
by COVID-19, virtual participation mechanisms have
been implemented in the cases of the Orcopampa
and Tambomayo units, managing to hold training
activities with 28 leaders, monitoring by accredited
laboratories and the dissemination of results to the
population through radio and electronic newsletters.
In the other units, due to the health emergency
conditions, the respective authorities were informed
of the need to reschedule these activities.
In the fourteenth (14) year, the Environmental
Assessment and Control Agency (OEFA) conducted
supervisions in the different units and projects.
This year, efforts were made to minimize potential
administrative procedures, acting preventively in
the field. The accrued environmental contingencies
as of 2020 are S/ 9.3 M.
We have continued to drive mine-closure works,
mainly in the Progressive Closure and Post-Closure
stage. It should be noted that, in 2020, because of the
health emergency caused by COVID-19, a large part
of the activities had to be rescheduled and, therefore,
the mine-closure plans were modified. Our closure
works have also been affected by the presence of
illegal mining, a situation we have communicated
to the competent authorities. It is worth noting
that, since, in most cases, we have not received a
timely response from the relevant authorities, we
have been forced to carry out remediation works on
already-closed areas that have been disturbed.
The mine-closure allowance, for both mining units and
exploration projects and environmental liabilities,
reached US$ 440M as of 12.31.20. The works carried
out in the year totaled US$ 10.4M, mainly including
rehabilitation and revegetation works.
Finally, in the field of innovation, we have improved
instrumentation and continued monitoring the
improved-soils project called “Tecnosoles” in La Zanja
in order to validate the technology and to improve the
prediction of application costs. We have also identified
knowledge gaps with regard to the mine-closure
technologies for our mining units, proposing research
projects to be developed in 2021. These projects are
aimed at reducing acid water generation and the cost
of physical closure of sterile material deposits.
68
2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
69
/ THE HEALTH
AND INTEGRITY
OF EVERYONE IS
OUR PRIORITY
SOCIAL MANAGEMENT
L
A
U
N
A
A
R
O
M
E
M
I
0
2
0
2
70
70
2020 ANNUAL REPORT
2020 WAS A COMPLEX YEAR.
CHARACTERIZED BY AN
UNPRECEDENTED HEALTH CRISIS THAT
AFFECTED –AND KEEPS AFFECTING–
THE WORLD, THE COUNTRY, AND THE
REGIONS AND COMMUNITIES WHERE
WE OPERATE.
71
71
Social Management
“
As a company, our operations have
suffered a significant production
decrease because of the Government
restrictions to the performance of
economic activities so as to mitigate
the impact in the health of the
Peruvian population during the first
months of this pandemic.
72
2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
BUENAVENTURA HAS DISTRIBUTED
98
Oxygen
concentrators
However, this situation, which is not over yet,
has not only affected the operational functioning
of our mining units, but also the development of
many of the liaison activities that contribute to
the normal coexistence with our neighbors. As
many Peruvians, though, we had to adapt to this
new reality; in our case, giving a much greater
importance to the attention of the health needs of
nearby regions and communities to contribute to
the fight against this virus.
In constant coordination with local authorities,
we have been part of the construction and
maintenance of health-safety fences. These
became one of the main tools for the districts and
communities of the highlands to reduce the inflow
of COVID-19 cases and to monitor compliance
with the isolation regulations established by
the Government. We have also been supporting
families that are most in need and that were
affected by this situation through the delivery of
more than 35 tons of food supplies.
In addition, to reinforce the work of the first line
of containment against this virus in eight regions
where we operate, we have distributed 98
oxygen concentrators, more than 110 thousand
health safety equipment, more than 150 oxygen
cylinders, more than 200 thousand medicines,
more than 2,700 rapid tests and a power
generator for an EsSalud Hospital in Arequipa
that handles COVID-19 cases. Also, at the worst
73
Social Management
IN LORETO WE SUPPORT
WITH THE INSTALLATION OF
01
Oxygen
generating plant
moment of the health crisis in Loreto, a region
that is not part of our area of influence, we were
able to provide support with the installation of an
oxygen generating plant.
Education has also been one of the pillars of our
work in 2020. To help children study remotely from
the most distant areas of the Cajamarca, Arequipa
and Moquegua regions, we have contributed to
the broadcast of the Ministry of Education’s radio
program Aprendo en Casa (I Learn at Home).
Following that same goal, in the Tapay district of
Caylloma, Arequipa, we distributed tablets to all
the students in the district and installed wireless
Internet antennas in every school.
74
2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
Furthermore, we adapted our teacher-training
program for around 220 teachers and principals
of our operation environment to a remote mode,
training them in the use of distance learning
tools, educational planning and evaluation, and
emotional support strategies for the families of
approximately 3,090 students of 9 districts in 5
regions (Cajamarca, Lima, Pasco, Huancavelica
and Arequipa).
As for the operational part of our mining units, we
also had to deal with the pandemic by adapting our
strategies to protect our workers. In addition to the
health protocols implemented by the company, the
decision was made to prioritize local and regional
labor hiring, reducing the contagion risk posed by
interprovincial travel. Thus, at the end of 2020,
62% of the workers in our mines belonged to the
regions where we operate, half of them from our
neighboring communities.
As mentioned above, the way we liaison also
changed because of the need for physical
distancing forced by COVID-19. In fact, within
the communities, these limitations also affected
the
communal decision-making because of
impossibility to hold assemblies. However, virtual
tools became an effective solution that enabled
us to maintain contact, primarily with leaders and
authorities, especially at the most critical times
of the pandemic. As the restrictions eased by the
last quarter of the year, we were able to get a
little closer to our neighbors, always respecting the
company’s health protocols. Thus, we have been
able to participate in over 130 sociocultural activities
organized by the communities and have organized
other 150 with the participation of our neighbors.
These virtual tools have also made it possible to
comply with the citizen participation mechanisms
of environmental management
instruments of
the Company’s projects and units. Platforms such
as Teams and Zoom allowed local and sectoral
authorities to meet with officials from Buenaventura
and consulting companies to conduct participatory
workshops that were broadcast on television or
radio, depending on access to them at each location.
The reactivation of mining activities has also been
an important government strategy that allowed the
local economy of the communities in our areas of
influence not to stop completely. During this year,
we have billed more than S/ 246 million to local
companies for services provided to our operations. In
line with the above, PRA Buenaventura has allowed
in Lima, Pasco, Huancavelica,
local producers
Arequipa and Moquegua to earn an income of over
S/ 4 million from the sale of their products in local,
regional and national markets.
En infraestructura, pudimos continuar con la gestión
de importantes obras a través de la modalidad de
obra por impuestos. En consecuencia, en la provincia
de Pasco, se recibió la Buena Pro de la Municipalidad
para la ejecución de los proyectos de pavimentación
75
Social Management
en el Centro Poblado Smelter por 1.8 millones de
soles y en el Barrio Uliachin por 500 mil soles. Por
su parte, en Oyón región Lima, se está culminando la
ejecución de la pavimentación de la avenida Huánuco
cuyo costo total asciende a 9.1 millones de soles.
financed by the Ministry of Housing, Construction
and Sanitation. In that same province and under
the same execution mode, work was started on
the irrigation project in Chugurcillo, for an amount
of S/ 4.3 million.
In Arequipa, with direct funding by Buenaventura
for assessments and execution, significant
progress has been made in the construction of the
Huaruro irrigation canal in the Tapay district. This
iconic work is over 15 kilometers in length and will
allow irrigation water to be brought to the lower
part of this district.
2020 has been a year of challenges that we have
taken on responsibly, taking care of our health
and aiming at seeking a harmonious coexistence
between our operations and the neighboring
communities,
sustainable
development.
promoting
their
As for infrastructure, we were able to continue
with the management of important works through
the Works for Taxes method. Consequently, in the
province of Pasco, we were awarded the successful
bid by the Municipality for the execution of the
paving projects in the Smelter Town Center for S/
1.8 million and in the Uliachin neighborhood for S/
500 thousand. In turn, in Oyón, Lima region, the
paving of Huánuco Avenue is being completed,
with a total cost of S/ 9.1 million.
In Cajamarca, with assessments financed by
Coimolache, the technical file of the biodigesters
project in the population center of Cuadratura,
province of Hualgayoc, was approved at S/ 1.9
million. The execution of this project will be
76
2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
7777
INNOVATION
Since the Innovation Management was created,
back in 2018, a series of innovative projects
has been given cross-cutting promotion
in
Buenaventura. Many of the projects that have
been developed and implemented have emerged
from opportunities that were born in mining
operations and because of the need to address
them from an innovative approach. In addition, we
have defined the road map that we must follow
to automate our operations, emphasizing critical
value-chain activities, such as mine operation and
plant operation, which allows us to bet on the
benefits of digital transformation.
For many, 2020 has been a very challenging year
given the circumstances we have been engulfed
in as a result of the pandemic. However, this new
reality, which has enabled changes to accelerate
globally, has allowed us as a company to identify,
test and validate some technologies that may be
of great importance in the development of our
operations, so that they are increasingly carried
out in a more productive and safe way.
As part of the automation projects that we have
been working on throughout the year, we can
highlight the following:
›
At the Colquijirca mining unit (El Brocal), efforts
focused on the remote-control room and the use
of artificial intelligence (AI) for the prediction of
faults in the HPGR crushers.
The remote-control room was obtained by
optimizing the System800xA control system
that allows remote operation of the process plant
using the Multisystem Integration protocol. The
operators selected for the prototype, who are
located in Lima, Arequipa and Trujillo, access
from their homes to supervise and control
metallurgical processes of the operation through
a platform that is similar to the one available
in the mining unit. The remote network access
was developed with high standards of security
and reliability.
As for the use of artificial intelligence to predict
faults, variables from the HPGR tertiary crusher
were integrated into the PI System of descriptive
analytics and the ERP. Added to this was the use
of artificial intelligence engine software. The
purpose of the project is to determine the causes
of failure because of equipment shutdown
based on operational signals compared against
the sources of corrective maintenance incidents
78
2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
EL BROCAL
AT
EFFORTS FOCUSED ON THE REMOTE-CONTROL ROOM AND THE USE OF
ARTIFICIAL INTELLIGENCE (AI) FOR THE PREDICTION OF FAULTS IN THE
HPGR CRUSHERS.
by SAP, as well as to anticipate failures and
determine when the equipment will need
corrective maintenance.
›
The model allows to predict operational
failures in advance following a behavior pattern
generated through the use of artificial intelligence.
The Uchucchacua mining unit began to implement the
use of telemetry for Simba S7C equipment through
an equipment monitoring system. This allows the
automated system equipment to perform automatic
drilling during down-time periods. In turn, through the
79
Innovation
IMPLEMENTATION OF A VIDEO-PRESENCE OR TELE-PRESENCE
SYSTEM THAT ALLOWS USERS OF THE
HUANZA HYDROELECTRIC
POWER PLANT
monitoring system, vital information is collected,
compared and communicated from the Simba
S7C equipment, which enables us to analyze
information at both the maintenance and the
equipment operation levels, allowing us to detect
sources of activity delay, down-time periods,
use of equipment in automatic mode, operators’
efficiency, to anticipate maintenance failures, count
daily drill meters, efficiency averages, among other
data. Such development should be considered
as a first stage of the underground mine’s digital
transformation plan as the implementation of fleet
management and equipment and people tracking
systems is under review.
›
Implementation of a video-presence or tele-
presence system that allows users of the Huanza
Hydroelectric Power Plant to interact remotely
from the field with process and maintenance
specialists through a virtual connection via
peripherals (augmented reality
lenses, mobile
phones or tablets).
Augmented reality lenses were purchased to
work with augmented reality, mixed and virtual,
to communicate directly with specialists located
anywhere in the country and around the world, and
to access virtual support and assisted machine and
equipment maintenance. The benefit of using this
technology lies in optimizing maintenance response
times, and remote operational monitoring; in turn, it
encourages the use of virtual tools as an accessible
solution for the operation.
Other innovation projects we have been working
on during 2020 include:
›
›
Development of a prototype to disinfect
common spaces in mining operations with UV
technology. Based on the need to use innovative
technology to disinfect work environments in
mining operations, the evaluation of alternatives
for a UV-technology disinfection prototype was
requested.
Development of innovative projects to improve the
efficiency of milling equipment in Buenaventura.
Through a national competition where we
collaborated with several mining companies
and UTEC University, funds were obtained from
Innóvate Perú to develop, in a first stage, an
agenda aimed at improving milling efficiency in
Peru, and later, in a second stage, implement
some of the projects selected.
›
Several prototypes have been developed to
advance the electrification of the different
mining units in Buenaventura. The technical and
80
2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
economic parts are being developed so that tests
can be carried out with an electric bus and a
battery Scoop equipment.
›
›
Preparation of feasibility studies so that the San
Gabriel project could be fully implemented as an
electric mine using solar energy.
reliability. Essentially,
Implementation of
Imago software by the
Management of Explorations and Geology, the
purpose being to exploit geological information
through the use of machine learning or artificial
intelligence, which will allow for the prediction
of geological models with greater precision
Imago enables
and
the conformation of a coded library of high-
resolution photographic records of drilling cores
and the interaction with the geological database
management and geological modeling systems
to place each core photo in their true spatial
position in the subsoil, correlate the photograph
with existing geological information (description,
structural control, mineral content, etc.) and
finally define geological models with greater
soundness.
Finally, the last work axis has been developed
alongside with the Mining Innovation Hub of Peru,
of which Buenaventura is one of the three founding
partners. This is why we have worked to create a
space to meet, connect and collaborate that, through
innovation, can generate greater value for us. Panel
discussions, meetings, trainings, events and open
innovation activities have been developed as part of
this work. It is worth noting that solutions were sought
to real challenges that arose in the mining units; for
instance: inorganic polymers for arsenic retention,
UV disinfection, solutions for moisture reduction in
mineral concentrates and fines control in the grinding
stage. Taking advantage of the collaborative spaces,
solutions were also sought to acquire molecular tests
for our operations and the Tikari project. The latter is
a project involving the Inter-American Development
Bank (IDB) and other mining companies looking
forward to developing and taking advantage of the
skills of women in communities located in areas
of influence of mining operations at the clothing,
embroidery and entrepreneurship
levels. Thus,
economic revival can be supported. In the case of
Buenaventura, it was decided to carry out the project
in our alma mater, Julcani, with the participation of
the Ccochaccasa community.
81
/ THE HEALTH
AND INTEGRITY
OF EVERYONE IS
OUR PRIORITY
Economic and Financial Report
L
A
U
N
A
A
R
O
M
E
M
I
0
2
0
2
82
82
2020 ANNUAL REPORT
Economic and Financial Report
83
83
we had 979 common
As of December 31, 2020,
“
21.641%
shareholders. Of those,
correspond to
Economic and Financial Report
The Company’s 2020 net loss was US$ 150.3 million,
compared to the net loss of US$ 28.5 million in
2019. This difference is mainly due to a fall in net
sales caused by a lower volume and offset by an
improvement in prices. Also, there was a lower sales
cost (US$ 119 M) and less spending on exploration
in operating units (US$ 16 M).
On a consolidated basis, the metal with the highest
percentage value of our 2020 sales was gold with
34%, followed by silver with 30%, copper with 18%,
zinc with 12% and lead with 6%.
In addition, the net debt/EBITDA ratio closed the
year at 2.46x.
During 2020, the final cash position increased from
US$ 210.0 million to US$ 235.4 million, and the total
CAPEX for the year was US$ 73.2 M.
84
2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
THE GOLD WITH
34%
WAS THE METAL THAT IN VALUE
CONSTITUTED THE HIGHEST
PERCENTAGE OF OUR SALES IN 2020
shareholders residing
in the country and
78.359%
to non-residents.
Likewise, we had 886 shareholders holding
investment shares.
During 2020, the ADRs program of the New York
Stock Exchange (NYSE), achieved a trading volume
of US$ 4,315,198,361 (407,179,365 ADS).
Also, as of December 31, 2020, there were
215,325,698 floating ADS, representing 78.33% of
the company’s total floating shares.
85
85
MANAGEMENT ANALYSIS AND DISCUSSION
“
The main variations in the
consolidated financial statements
for the 12-month periods ended on
December 31, 2020 and 2019, are
explained next:
(Figures in US dollars are expressed
in thousands, except for metal
quantities and quotations)
L
A
U
N
A
A
R
O
M
E
M
I
0
2
0
2
86
1
Net Sales
In 2020, the sales of goods accounted for
US$ 637,619, compared to sales of US$
821,930 in 2019, representing a decrease
of 22%. This decrease in sales is mainly
explained by the lower production due to
the temporary shutdown of the mining units
during the state of national emergency and
compulsory social isolation decreed by the
Peruvian government
“the
temporary shutdown”):
(hereinafter
a. SALES OF GOLD
The average sales quotation of this metal
went up from US$ 1,405.35/oz, in 2019, to
US$ 1,841.96/oz in 2020, which represents
a 31% price increase. However, sales were
down to 56,232 oz of gold, compared to 2019.
The combined effect meant a lower sales
revenue of US$ 24,604 in 2020, compared to
2019. The lower income corresponds mainly
to the net effect: (i) the decrease in sales in
the Tambomayo and La Zanja mining units by
US$ 29,028 and US$ 40,164, respectively, as
a result of the lower volume sold, offset by
(ii) the increase in sales of Rio Seco by US$
2020 ANNUAL REPORT
/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
IN 2020
THE SALES OF GOODS
ACCOUNTED FOR
US$ 637, 619
30,023, as a result of the increase in sales of
Doré bars during 2020.
b. SALES OF SILVER
The average sales quotation of this metal
went up from US$ 16.36/oz in 2019, to US$
22.14/oz in 2020, which represents a 35%
price increase. Also, sales went down to
7,813,844 oz of silver, compared to 2019.
The combined effect meant a lower sales
revenue of US$ 67,673 in 2020, compared
to 2019. The lower income corresponds to
the net effect of the decrease in sales of
the Uchucchacua, Julcani and Tambomayo
mining units in US$ 61,810, US$ 7,258, and
US$ 5,347, respectively, as a result of the
decrease in volumes sold. This was offset by
the increase in the Colquijirca mining unit by
US$ 5,439 as a result of the increase in the
agreed average quotations.
C. SALES OF ZINC
The average sales quotation of this metal
in
went down from US$ 2,490.60/mt
2019, to US$ 2,233.55/MT in 2020, which
represents a 10% price decrease. Likewise,
sales were down to 7,813,844 oz of zinc,
compared to 2019. The combined effect
meant a lower sales revenue of US$ 28,771 in
2020, compared to 2019. The lower income
corresponds to the effect of the decrease in
sales of the Uchucchacua and Tambomayo
mining units in US$ 29,788 and US$ 10,353,
respectively, as a result of the decrease in
volumes sold and average quotations. This
was offset by the growth in sales of the
Colquijirca mining unit by US$ 11,370, as a
result of the increase in volumes sold.
d. SALE OF COPPER
The average sales quotation of this metal
went up from US$ 5,808.47/mt, in 2019, to
US$ 6,259.49/mt in 2020, which represents
an 8% price increase. However, sales were
down to 12,061 mt of copper, compared to
2019. The combined effect meant a lower
in 2020,
sales revenue of US$ 56,993
compared to 2019. The lower income is
mainly due to the decrease in the quantities
sold and the average quotations of the
Colquijirca mining unit by US$ 56,962
e. DEDUCTIONS
During 2020, deductions to metal prices
for maquila and penalties in concentrate
sales as a whole amounted to US$ 179,748,
compared to US$ 220,306 in 2019, amounts
which have been deducted from total net
sales of each year.
87
Management Analysis and Discussion
f. SALE OF SERVICES
In 2020, service sales added up to US$
20,285 compared to sales of US$ 23,661
in 2019, a decrease of 14%, mainly in the
sale of energy generation and transmission
services to mining units as a result of the
temporary shutdown.
2
Operating costs
In 2020, operating expenses were US$
652,613, compared to US$ 799,582 of 2019,
which represents a decrease of 18%. This
decrease was mainly due to the effect of:
a. COST OF SALES OF GOODS, WITHOUT
CONSIDERING DEPRECIATION AND
AMORTIZATION
The cost of sales of goods, without considering
depreciation or amortization, decreased by
US$ 118,986, from US$ 512,874 in 2019 to
US$ 393,888 in 2020, which represents a
decrease of 23%. The decrease in the cost
of sales is mainly due to lower production
and sales in the mining units of the Group
as a result of the temporary shutdown from
88
2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
March 15, 2020 to May 16, 2020 for the
Tambomayo, Uchucchacua and El Brocal
units, and June 16, 2020 for Orcopampa,
Julcani and La Zanja units.
b. UNABSORBED COST DUE TO PRODUCTION
STOPPAGE
The costs not absorbed during the production
(net of
shutdown totaled US$ 27,758
intercompany eliminations), consisting of
services provided by third parties, costs of
personnel and supplies for US$ 13,885, US$
11,057 and US$ 2,816, respectively.
c. DEPRECIATION AND AMORTIZATION
The depreciation and amortization category
decreased by US$ 36,715, from US$ 226,335
in 2019 to US$ 189,620 in 2020, which
represents a decrease of 16%. The variation
is explained mainly by the decrease in
production in all the mining units of the Group
due to the State of National Emergency and
compulsory social isolation ordered by the
Peruvian Government.
89
Management Analysis and Discussion
d. EXPLORATION IN OPERATING UNITS
Exploration in operating units decreased by
US$ 16,119, from US$ 44,163 in 2019 to US$
28,044 in 2020, mainly due to the decrease
in explorations in all the units of the Group.
Explorations decreased by US$ 4,456, US$
3,842, US$ 2,937, US$ 2,697 and US$ 2,186
in the units of Tambomayo, Orcopampa,
Colquijirca,
and Uchucchacua,
respectively.
Julcani
3
Operating expenses
In 2020, operating expenses were US$
105,203, compared to US$ 126,319 of 2019,
which represents a decrease of 17%. This
decrease was mainly due to the net effect
of: (i) lower administration and sales costs
by US$ 9,112 and US$ 5,780; (ii) lower
exploration costs in non-operational areas
by US$ 3,404; (iii) higher expenditure in
2020 for the asset write-off as deferred-
clearing cost of the Colquijirca mining unit
at US$ 11,633; (iv) increased expenditure
related to the contingency allowance of
US$ 7,118 as a result of a US$ 2,968 income
decrease in 2019, compared to the 2020
expenditure of US$ 4,150 resulting from
an increase in the tax and environmental
contingency allowances by US$ 2,728 and
US$ 1,640, respectively; (v) a 2020 income
for an allowance recovery of US$ 2,083 due
to the impairment of long-term assets at the
Julcani mining unit, recorded as spending
in 2019; (vi) a variation in the “Others, net”
heading of a US$ 14,715 expenditure in 2019,
compared to a US$ 2,690 income in 2020,
explained mainly by: a) a 2020 income of
US$ 4,381 for the loss of profit at El Brocal
subsidiary from the insurance indemnity
received for damages suffered by the fire in
the electric engine of the 16x22 Dominium
mill occurred in 2019; and b) a 2019 income
from the sale of transmission systems
located
in the Huancavelica, Trujillo –
Cajamarca, Callalli – Ares and Lomera areas
of the Conenhua subsidiary to Conelsur LT
S.A.C. for US$ 21,023.
4
Other income (expenses), net
The Other income (expenses), net, decreased
by US$ 63,522, going down from a US$
14,478 profit in 2019 to a US$ 49,044 loss in
2020. Such a decrease is mainly explained
by the variation in the net share in the
90
2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
Minority interest
6
This category showed loss reduction of
US$ 16,251 in 2019, compared to a loss of
US$ 14,621 in 2020. The decrease is mainly
explained by the net effect of (i) a lower loss
in the minority interest of La Zanja subsidiary
in 2020 (loss of US $9,090 in 2019 compared
to a loss of US$ 6,905 in 2020), offset by (ii)
a lower profit on the minority interest of
Chaupiloma subsidiary (US$ 6,286 profit in
2019 compared to US$ 5,201 in 2020).
in 2020. This decrease
results from associates and joint business.
This category represented a profit of US$
47,710 in 2019, compared to a loss of US$
9,517
is mainly
explained by the net effect of a lower net
profit on the investments of US$ 30,639 in
Minera Yanacocha S.R.L. and of US$ 22,684
in Sociedad Minera Cerro Verde S.A.A.
5
Provision for income tax
This item is formed by the Income Tax and the
Mining Royalties and the Special Mining Tax.
a. PROFITS TAX
This category shows a variation from an
income of US$ 25,766 in 2019 to an expense of
US$ 23,716 in 2020, mainly explained by a loss
in the deferred portion of US$ 15,270 in 2020,
compared to a US$ 37,617 income in 2019.
b. MINING ROYALTIES AND SPECIAL MINING
TAX
This category shows a variation from a US$
176 expense in 2019 to a greater expense of
US$ 1,714 in 2020, mainly explained by an
expense increase in the current portion by
US$1,418.
91
OPERATIONS OVERVIEW
CHART No.1
OPERATIONS OVERVIEW 2020
Description
Ore treated
Head grades
Bulk concentrate (ag-pb-cu-au)
gold-silver concentrate
Lead-silver-gold concentrate
Copper concentrate
Zinc concentrate
Silver ounces
Gold ounces
Metallic copper
Metallic lead
Metallic zinc
Ag recovery
Au recovery
Cu recovery
Pb recovery
Zn recovery
Cost applicable to sales oz ag
Cost applicable to sales oz au
Cost applicable to sales mt zn
Cost applicable to sales mt cu
Unit.
Tambomayo Orcopampa
Coimolache
La Zanja
Yanacocha Uchucchacua
Ag
Au
Cu
Pb
Zn
DMT
oz/DMT
g/DMT
%
%
%
DMT
DMT
DMT
DMT
DMT
Oz
Oz
MT
MT
MT
%
%
%
%
%
US$
US$
US$
US$
510,405
88,249
12,043,702
1,639,008
17,102,000
3.97
5.10
1.45
1.92
17,722
11,638
1,668,582
63,477
6,550
5,266
82.39
75.80
88.3
53.6
942
0.13
14.65
0.49
0.43
0.30
0.37
586
9,069
41,129
699,361
106,017
84,641
17,228
2,140,360
340,052
74.89
96.41
11.97
64.11
17.07
89.56
962
854
1,739
1,043
550,718
10.10
1.03
1.56
54,381
15,236
5,000,312
5,151
5,223
89.88
90.55
60.90
22.24
92
2020 ANNUAL REPORT
/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
Description
Unit.
Julcani
El Brocal
Cerro verde
Acchilla
Tailings
Marcapunta Tajo Norte - Pb y Zn Tajo Norte - Cu
Cathodes Concentrate
Ore treated
Head grades
Ag.
Ag
Au
Au
Cu
Cu
Pb.
Pb
Zn
Zn
Lead-silver concentrate
Copper concentrate
Zinc concentrate
Metallic molybdenum
Silver ounces
Gold ounces
Metallic copper
Metallic Lead
Metallic Zinc
Ag recovery
Au recovery
Cu recovery
Pb recovery
Zn recovery
Cost applicable to sales Oz Ag
Cost applicable to sales Mt Zn
Cost applicable to sales Mt cu
*Considers Cash Cost
DMT
Oz/DMT
g/DMT
%
%
%
DMT
DMT
DMT
DMT
Oz
Oz
MT
MT
MT
%
%
%
%
%
US$
US$
US$
71,943
22.67
0.07
0.18
0.63
1,579,919
96,812
247
68
127
408
96.88
43.44
96.80
89.90
14.27
1,659,731
2,782,313
91,477
28,114,000
121,360,000
0.78
0.55
1.97
121,281
812,501
11,816
30,038
63.0
40.1
91.8
5,135
1.33
1.17
3.54
42,837
111,712
3.80
0.04
1.04
2,927
2,520,528
175,556
0.34
8,574
3,384,056
20,066
54,909
68.0
61.6
55.7
1,923
36
570
50.5
27.4
60.0
37,415
334,576
58.8
84.3
3,629*
93
Operations Overview
CHART No.2
RESERVES AS OF DECEMBER 31, 2020
PROVEN AND PROBABLE RESERVES
GOLD
Orcopampa
Julcani
Tambomayo
La Zanja
Coimolache
El Brocal Marcapunta
El Brocal (Tajo Norte Smelter – Cu – Ag)
Yanacocha
San Gabriel
Total Gold Reserves
SILVER
Uchucchacua (Silver-Lead-Zinc)
Julcani
Orcopampa
Tambomayo
La Zanja
Coimolache
El Brocal (Tajo Norte Smelter-Cu-Ag)
El Brocal (Tajo Norte Smelter-Zn-Pb-Ag)
El Brocal (Marcapunta)
Yanacocha
Cerro Verde (for grinding)
San Gabriel
Total Silver Reserves
BVN %
Share
100.00
100.00
100.00
53.06
40.10
61.43
61.43
43.65
100.00
BVN %
Share
100.00
100.00
100.00
100.00
53.06
40.10
61.43
61.43
61.43
43.65
19.58
100.00
DMT (000)
Oz / DMT
Ounces (000)
BVN
Ounces (000)
469
269
2,339
5,197
74,617
30,530
31,760
198,611
11,576
0.299
0.007
0.107
0.012
0.010
0.021
0.007
0.033
0.150
140
2
249
65
774
655
211
6,627
1,741
10,463
140
2
249
34
310
402
130
2,893
1,741
5,903
DMT (000)
Oz / DMT
Ounces (000)
BVN
Ounces (000)
7,617
269
469
2,339
5,197
74,617
31,760
9,840
30,530
221,609
4,002,281
11,576
9.67
20.93
0.55
4.08
0.13
0.23
0.80
2.76
1.04
0.44
-
0.24
73,662
5,636
260
9,546
659
17,385
25,352
27,169
31,651
96,554
111,370
2,724
73,662
5,636
260
9,546
350
6,970
15,574
16,690
19,443
42,146
21,806
2,724
401,968
214,807
94
2020 ANNUAL REPORT
/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
ZINC
Uchucchacua (Silver-Lead-Zinc)
Tambomayo
El Brocal (Tajo Norte Smelter – Zn-Pb-Ag)
Total Zinc Reserves
LEAD
Uchucchacua (Silver-Lead-Zinc))
Julcani
Tambomayo
El Brocal (Tajo Norte Smelter-Zn-Pb-Ag)
Total Lead Reserves
COPPER
Julcani
El Brocal (Marcapunta)
El Brocal (Tajo Norte Smelter-Cu-Ag)
San Gabriel
Trapiche
Yanacocha
Cerro Verde (for grinding)
Cerro Verde (for leaching)
Total Copper Reserves
MOLYBDENUM
BVN %
Share
100.00
100.00
61.43
BVN %
Share
100.00
100.00
100.00
61.43
BVN %
Share
100.00
61.43
61.43
100.00
100.00
43.65
19.58
19.58
BVN %
Share
DMT (000)
% Zn
DMT (000)
7,617
2,339
9,840
1.93
1.50
2.15
147
35
211
393
DMT (000)
%Pb
DMT (000)
10,426
255
2,446
14,756
1.19
2.00
1.27
1.17
124
5
31
173
334
DMT (000)
%Cu
DMT (000)
269
30,530
31,760
11,610
283,200
112,404
4,002,281
75,199
0.45
1.29
1.48
0.06
0.51
0.62
-
-
1
393
469
7
1,444
697
12,572
148
15,731
DMT (000)
% Mo
DMT (000)
Cerro Verde (for grinding)
19.58
4,002,281
Total Molybdenum Reserves
312
312
Prices used to estimate reserves: Gold US$ 1,600/Oz; Silver US$ 20.00/Oz; Lead US$ 1900/MT; Zinc US$ 2,300/MT; and Copper US$ 6,500/MT
BVN
DMT (000)
147
35
130
312
BVN
DMT (000)
124
5
31
106
267
BVN
DMT (000)
1
241
288
7
1,444
304
2,462
29
4,777
BVN
DMT (000)
61
61
95
Operations Overview
CHART No.3
RESERVES AS OF DECEMBER 31, 2019
PROVEN AND PROBABLE RESERVES
GOLD
Orcopampa
Julcani
Tambomayo
La Zanja
Coimolache
El Brocal (Marcapunta)
Yanacocha
San Gabriel
Total Gold Reserves
SILVER
Uchucchacua (Silver-Lead-Zinc)
Julcani
Orcopampa
Tambomayo
La Zanja
Coimolache
El Brocal (Tajo Norte Smelter)
El Brocal( Marcapunta)
Yanacocha
Cerro Verde (for grinding)
San Gabriel
Total Silver Reserves
BVN %
Share
100.00
100.00
100.00
53.06
40.10
61.43
43.65
100.00
BVN %
Share
100.00
100.00
100.00
100.00
53.06
40.10
61.43
61.43
43.65
19.58
100.00
DMT (000)
Oz/DMT
Ounces (000)
BVN
Ounces (000)
626
255
2,446
560
66,859
34,503
221,834
11,576
0.321
0.006
0.120
0.013
0.011
0.023
0.031
0.150
201
1
295
7
737
805
6,938
1,741
10,726
201
1
295
4
296
495
3,028
1,741
6,061
DMT (000)
Oz/DMT
Ounces (000)
BVN
Ounces (000)
10,426
255
626
2,446
560
66,859
42,216
34,503
227,718
4,169,880
11,576
9.46
21.02
0.49
4.46
0.27
0.26
1.08
1.15
0.45
-
0.24
98,598
5,361
305
10,898
152
17,145
45,581
39,799
102,473
113,314
2,724
98,598
5,361
305
10,898
80
6,874
28,000
24,448
44,729
22,187
2,724
436,349
244,205
96
2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
ZINC
Uchucchacua (Silver-Lead-Zinc)
Tambomayo
El Brocal (Tajo Norte Smelter-Zn-Pb-Ag)
Total Zinc Reserves
LEAD
Uchucchacua (Silver-Lead-Zinc))
Julcani
Tambomayo
El Brocal (Tajo Norte Smelter-Zn-Pb-Ag)
Total Lead Reserves
COPPER
Julcani
El Brocal (Marcapunta)
El Brocal (Tajo Norte Smelter-Cu-Ag)
San Gabriel
Trapiche
Yanacocha
Cerro Verde (for grinding)
Cerro Verde (for leaching)
Total Copper Reserves
MOLYBDENUM
BVN %
Share
100.00
100.00
61.43
BVN %
Share
100.00
100.00
100.00
61.43
BVN %
Share
100.00
61.43
61.43
100.00
100.00
43.65
19.58
19.58
BVN %
Share
DMT (000)
% Zn
DMT (000)
10,426
2,446
14,756
2.03
1.66
2.52
212
41
371
624
DMT (000)
%Pb
DMT (000)
10,426
255
2,446
14,756
1.19
2.00
1.27
1.17
124
5
31
173
334
DMT (000)
% Cu
DMT (000)
255
34,503
27,460
11,610
283,200
104,388
4,169,880
95,353
0.43
1.30
1.71
0.06
0.51
0.63
-
-
1
450
470
7
1,444
660
12,792
210
16,035
DMT (000)
% Mo
DMT (000)
Cerro Verde (for grinding)
19.58
4,169,880
Total Molybdenum Reserves
317
317
Prices used to estimate reserves: Gold US$ 1,300/Oz; Silver US$ 16.30/Oz; Lead US$ 2,200/MT; Zinc US$ 2,800/MT; and Copper US$ 6,200/MT
BVN
DMT (000)
212
41
228z
480
BVN
DMT (000)
124
5
31
106
267
BVN
DMT (000)
1
277
289
7
1,444
288
2,505
41
4,851
BVN
DMT (000)
62
62
97
Operations Overview
CHART No.4
NON- RESERVE MINERALS AS OF DECEMBER 31, 2020
NON-RESERVE MINERALS (measured + indicated)
GOLD
Orcopampa
Julcani
Tambomayo
La Zanja
Alejandra (La Zanja)
Coimolache - Óxidos
El Brocal Marcapunta
El Brocal (Tajo Norte Smelter – Cu-Ag)
Yanacocha
Yanacocha (Conga) 1
Yanacocha (Conga) 2
Total Gold Resources
SILVER
Orcopampa
Uchucchacua (Silver-Lead-Zinc)
Julcani
Tambomayo
La Zanja
Alejandra (La Zanja)
Coimolache - oxides
El Brocal (Tajo Norte Smelter – Cu-Ag)
El Brocal (Tajo Norte Smelter – Zn-Pb-Ag)
El Brocal Marcapunta
El Brocal (San Gregorio)
Yanacocha
Yanacocha (Conga) 1
Yanacocha (Conga) 2
Total Silver Resources
BVN %
Share
100.00
100.00
100.00
53.06
53.06
40.10
61.43
61.43
43.65
43.65
43.65
BVN %
Share
100.00
100.00
100.00
100.00
53.06
53.06
40.10
61.43
61.43
61.43
61.43
43.65
43.65
43.65
DMT (000)
Oz/DMT
Ounces (000)
BVN
Ounces (000)
425
92
755
9,117
123
15,507
21,582
1,061
337,893
536,015
388,268
0.302
0.000
0.097
0.013
0.703
0.008
0.026
0.004
0.0024
0.0023
0.012
128
0
73
120
86
124
551
4
8,245
12,593
4,880
26,806
128.5
0
73
64
46
50
339
3
3,599
5,497
2,130
11,928
DMT (000)
Oz/DMT
Ounces (000)
BVN
Ounces (000)
425
2,335
92
755
9,117
123
15,507
1,061
5,588
21,582
79,934
122,612
536,015
388,268
0.413
9.79
21.785
4.240
0.290
3.740
0.390
0.700
0.736
0.932
0.308
0.496
0.070
0.040
176
22,865
2,006
3,201
2,636
459
6,019
742
4,114
20,105
24,620
60,882
37,784
14,461
176
22,865
2,006
3,201
1,398.500
243.545
2,413
456
2,527
12,351
15,124
26,575
16,493
6,312
200,070
112,141
98
2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
ZINC
Uchucchacua (Silver-Lead-Zinc)
Tambomayo
El Brocal (Tajo Norte Smelter – Zn-Pb-Ag)
El Brocal (San Gregorio)
Total Zinc Resources
LEAD
Uchucchacua (Silver-Lead-Zinc)
Julcani
Tambomayo
El Brocal (Tajo Norte Smelter - Zn-Pb-Ag)
El Brocal (San Gregorio )
Total Lead Resources
COPPER
Julcani
Trapiche
El Brocal Marcapunta
El Brocal (Tajo Norte Smelter-Cu-Ag)
Yanacocha
Yanacocha ( Conga) 1
Yanacocha ( Conga) 2
Total Copper Resources
BVN %
Share
100.00
100.00
61.43
61.43
BVN %
Share
100.00
100.00
100.00
61.43
61.43
BVN %
Share
100.00
100.00
61.43
61.43
43.65
43.65
43.65
DMT (000)
% Zn
DMT (000)
2,335
755
5,588
79,934
2.063
1.480
3.174
5.223
48
11
177
4,175
4,412
DMT (000)
% Pb
DMT (000)
2,335
92
755
5,588
79,934
1.201
1.290
0.950
0.971
1.528
28
1
7
54
1,221
1,312
BVN
DMT (000)
48
11
109
2,565
2,733
BVN
DMT (000)
28
1
7
33
750
820
DMT (000)
% Cu
DMT (000)
BVN
DMT (000)
92
540,000
21,582
1,061
138,247
536,015
388,268
0.180
0.31
1.398
1.008
0.380
0.280
0.190
0
1,674
302
11
525
1,501
738
4,751
0
1,674
186
7
229
655
322
3,073
99
Operations Overview
CHART No.5
PRODUCTION OVERVIEW 2020
%
Share
100%
100%
100%
100%
Tambomayo
Orcopampa
Uchucchacua
Julcani
El Brocal
La Zanja
Coimolache
Total production
Produccion Atribuible a Buenaventura
Ag
Oz
Au
Oz
Pb
DMT
Zn
DMT
Cu
DMT
Ag
Oz
Au
Oz
Pb
DMT
Zn
DMT
Cu
DMT
1,668,582
63,477
6,550
5,266
Tambomayo
1,668,582
63,477
6,550
5,266
9,069
41,129
Orcopampa
9,069
41,129
5,000,312
1,676,731
5,151
408
315
5,223
127
61.43%
3,508,585
11,852
20,066
54,909
30,608
53,06%
40.10%
84,641
17,228
699,361
106,017
Yanacocha
43.65%
2,140,361
340,052
Uchucchacua
5,000,312
5,151
5,223
Julcani
El Brocal
La Zanja
Coimolache
Yanacocha
1,676,731
315
408
127
2,155,324
7,280
12,326
33,731
18,802
44,911
9,141
280,409
42,507
934,268
148,433
Cerro Verde
19.58%
3,384,056
371,992
Cerro Verde
662,598
72,836
Total Content
18,171,697
508,069
32,175
65,399
402,727
Total Content
12,432,202
312,282
24,436
44,221
91,766
COMMERCIAL OVERVIEW
Oro (US$/Oz)
Plata (US$/Oz)
Plomo (US$/TM)
Zinc (US$/TM)
Cobre (US$/TM)
Quotation of metals sold
2020
1,842
22.14
1,708
2,234
6,259
2019
1,405
16.36
1,939
2,492
5,808
Oro (Oz)
Plata (Oz)
Plomo (TM)
Zinc (TM)
Cobre (TM)
Volumes of metals sold
2020
2019
124,644
180,876
10,410,477
18,224,320
28,348
53,971
28,966
45,995
59,953
41,027
100
2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
PERSONNEL AS OF DECEMBER 31, 2020
Company
Units
Julcani
Recuperada
Orcopampa
Uchucchacua
Mallay
Poracota
Tambomayo
Shila Paula
Arequipa
San Gabriel
Lima (Proyectos)
Lima
TOTAL BUENAVENTURA
La Zanja
Conenhua
Molle Verde
Rio Seco
Coimolache
El Brocal
TOTAL GENERAL
Management
Executives
Employees
Bep
Employees
Workers
mine
Total
Company
Contracts
Total
General
0
0
1
1
0
0
1
0
0
1
1
21
26
0
1
1
1
1
3
33
53
3
50
104
1
0
78
3
5
19
13
191
520
35
21
12
20
77
160
845
4
1
1
13
0
0
5
0
3
1
12
87
127
0
48
1
1
4
175
356
1
0
0
1
0
0
1
0
0
0
0
1
4
0
0
0
0
0
0
4
43
0
103
126
1
0
109
0
0
3
0
0
385
28
0
4
67
75
0
84
0
243
247
2
0
143
11
0
1
0
1
732
33
19
0
0
42
311
559
1,137
185
4
398
492
4
0
337
14
8
25
26
301
1,794
96
89
18
89
199
649
2,934
873
0
446
1,639
0
0
612
0
0
156
37
55
3,818
756
50
48
87
1,633
2,593
8,985
1,058
4
844
2,131
4
0
949
14
8
181
63
356
5,612
852
139
66
176
1,832
3,242
11,919
VARIATION IN NUMBERS OF EMPLOYEES
Units
Julcani
Recuperada
Orcopampa
Uchucchacua
Mallay
Poracota
Tambomayo
Shila Paula
Arequipa
San Gabriel
Lima (Proyectos)
Lima
La Zanja
Conenhua
Molle Verde
Rio Seco
Coimolache
El Brocal
TOTAL
2020
2019
2018
201 7
185
4
406
492
0
0
4
327
14
25
0
18
89
96
89
199
337
649
2,934
193
4
451
506
0
0
13
344
13
19
0
31
87
90
106
214
346
678
181
4
573
532
0
0
74
374
30
18
0
15
95
141
109
202
383
748
199
4
609
547
0
0
127
395
34
25
0
12
91
166
173
189
401
816
3,095
3,479
3,788
101
SHAREHOLDING STRUCTURE
CIA. DE MINAS BUENAVENTURA S.A.A.
SECURITIES AREA
Shareholding Structure and Nationality with a Share over 5%
As of December 31, 2020
Total Common Shares
274,889,924
Name
Percentage Share
Compañía Minera Condesa S.A.
Roque Benavides Ganoza
The Bank of New York Mellon Dr.(*)(**)
Total
(*)THE BANK OF NEW YORK MELLON DR. Depository Bank, ADR holder
(**) Includes some members of the Benavides family
7.69
5.06
78.33
91.08
Nationality
Peruvian
Peruvian
USA
102
2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
SHAREHOLDING STRUCTURE, COMMON VOTING SHARES AS OF DECEMBER 31, 2020
Share holding
Number of shareholders
Shareholding percentage
Under 1%
Between 1% and 5%
Between 5% and 10%
Above 10%
Total
971
5
2
1
979
2.37
6.55
12.75
78.33
100.00
SHAREHOLDER COMPOSITION, INVESTMENT SHARES AS OF DECEMBER 31, 2020
Shareholding structure
Investment Shares as of December 31, 2020
Total Investment Shares
744,640
Share holding
Number of shareholders
Shareholding percentage
Under 1%
Between 1% and 5%
Between 5% and 10%
Above 10%
Total
881
3
1
1
886
27.83
3.37
5.45
63.35
100.00
103
Shareholding Structure
SHAREHOLDING STRUCTURE PER TYPE OF INVESTOR AS OF DECEMBER 31, 2020
Holding by shareholder type or proxy of the share composing the S&P Peru
Selective Index (at year end)
Number
of holders
Shareholding
%
1
2
3
4
5
6
7
8
9
Members of the Board of Directors and the top management, including family members.
Corporation workers, not included in number 1.
Individuals, not included in numbers 1 and 2.
Pension funds managed by Pension Fund Administrators under the supervision of the
Superintendence of Banking, Insurance and Pension Fund Administrators.
Pension fund administered by the Peruvian Social Security Administration (ONP, in Spanish).
Peruvian State entities, except for the case mentioned in paragraph 5.
Banks, financial institutions, municipal savings banks, small and micro enterprise
development agencies (edpymes, in Spanish), rural banks and credit unions under the
supervision of the of Banking, Insurance and AFP Regulator.
Insurance companies under the supervision of the Superintendence of Banking, Insurance and
Pension Fund Administrators.
Intermediation agents, under the supervision of the Peruvian Securities Market Regulator
(SMV, in Spanish).
10
Investment funds, mutual funds and equity trusts under the Securities Market Law and the
Investment Funds and Bank Trusts Law under the General Law of the Financial System.
19
0
920
1
0
1
0
1
1
0
12.11%
0.00%
1.84%
0.00%
0.00%
0.01%
0.00%
0.00%
0.00%
0.00%
104
2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
11
12
13
Autonomous assets and foreign bank trusts, to the extent that they can be identified.
Foreign depositories that appear as shareholders under ADR or ADS programs.
Foreign depositories that appear as shareholders not included in number 12
14
Foreign custodians appearing as shareholders.
15
Entities that do not appear in previous numbers.
16
Shares belonging to the S&P/BVL Peru Select Index or proxy of these shares, in the
portfolio of the company.
0
1
0
0
33
2
0.00%
78.33%
0.00%
0.00%
0.02%
7.69%
Total
979
100.00%
Holding by shareholders or the proxy of the share composing the S&P/BVL
Peru Select Index, based on their residence (at year end)
Number
of holders
Shareholding
%
Resident
Non-Resident
Total
934
45
979
21.64%
78.36%
100.00%
105
SHARES AND ADR BEHAVIOR
Behavior of the shares and ADS’s year 2020
BVN. Securities - ADS Quotation $
Opening
Closure
Maximum
Minimum
Average
US$
S/.
US$
S/.
US$
S/.
US$
S/.
US$
S/.
15.26
12.94
11.36
7.14
7.30
7.92
9.13
11.67
14.24
12.37
12.43
11.46
50.62
43.69
39.14
24.58
24.70
27.20
32.33
41.18
50.51
44.52
44.93
41.37
12.93
11.15
7.29
7.49
7.85
9.14
11.86
14.29
12.22
12.27
11.10
12.19
43.44
38.48
25.07
25.26
26.96
32.19
41.63
50.59
43.96
44.36
40.06
44.14
15.36
13.12
11.68
8.45
9.11
9.50
12.77
14.29
14.32
13.44
13.06
13.28
50.95
44.27
40.24
28.55
31.41
33.21
45.07
50.59
50.79
48.46
47.02
47.68
12.13
11.15
5.12
6.68
7.26
7.84
8.89
11.38
11.24
11.88
10.22
11.38
40.45
38.24
18.07
22.99
24.56
26.92
31.13
40.16
39.96
42.85
36.87
41.08
13.59
12.22
7.97
7.37
8.20
8.77
10.59
13.17
12.46
12.53
11.70
12.30
45.67
42.17
27.42
24.87
28.14
30.88
37.16
46.61
44.82
45.28
42.23
44.55
Opening
Closure
Maximum
Minimum
Average
TC
3.32
3.38
3.45
3.44
3.38
3.43
3.54
3.53
3.55
3.60
3.62
3.61
3.36
3.45
3.44
3.37
3.43
3.52
3.51
3.54
3.60
3.62
3.61
3.62
3.32
3.37
3.45
3.38
3.45
3.50
3.53
3.54
3.55
3.61
3.60
3.59
3.34
3.43
3.53
3.44
3.38
3.43
3.50
3.53
3.56
3.61
3.61
3.61
3.36
3.45
3.44
3.37
3.43
3.52
3.51
3.54
3.60
3.62
3.61
3.62
Month
January
February
March
April
May
June
July
August
September
October
November
December
Month
January
February
March
April
May
June
July
August
September
October
November
December
106
2020 ANNUAL REPORT
/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
Share price
Buenaventura Common (S/)
Month
January
February
March
April
May
June
July
August
September
October
November
December
Opening
Closure
Maximum
Minimum
Average
42.00
42.50
32.40
26.00
27.22
42.60
43.74
40.20
43.80
42.00
40.00
25.00
26.00
29.00
43.45
44.80
40.72
43.80
42.00
42.50
32.40
26.00
29.00
43.45
44.80
40.72
43.80
42.00
40.00
25.00
26.00
27.22
42.60
43.74
40.20
43.80
41.79
42.32
27.70
27.50
26.00
28.57
33.93
35.44
42.61
44.12
40.49
43.80
Buenaventura Investment (S/)
Month
January
February
March
April
May
June
July
August
September
October
November
December
Opening
Closure
Maximum
Minimum
Average
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
107
Shares and ADR behavior
a. ADRs
ADRs NEW YORK PROGRAMS YEAR 2020
During 2020, the ADRs program of the New York
Stock Exchange (NYSE), achieved a trading volume
of US$ 4,315,198,361 (407,179,365 ADS).
Also, as of December 31, 2020, there were
215,325,698 floating ADS, representing 78.33% of
the company’s total floating shares.
Lima, January 2021
108
2020 ANNUAL REPORT
/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
b. CORPORATE MATTERS
As of December 31, 2020, we had 979 common
shareholders. Of those, 21.641% correspond to
shareholders residing in the country and 78.359%
to non-residents.
Likewise, we had 886 shareholders holding
investment shares.
Lima, January 2021
109
FINANCIAL STATEMENTS
Paredes, Burga & Asociados
Sociedad Civil de Responsabilidad Limitada
Independent Auditor’s Report
To the Board of Directors and Shareholders of Compañía de Minas Buenaventura S.A.A.
We have audited the accompanying consolidated financial statements of Compañía de Minas Buenaventura S.A.A.
(a Peruvian publicly traded company) and Subsidiaries (hereinafter called “the Group”), which comprise the
consolidated statement of financial position as of December 31, 2020 and 2019, and the corresponding consolidated
income statement, comprehensive income statements, statements of changes in equity and cash flow statements
for the years ended in December 31, 2020, 2019 and 2018, as well as the summary of the significant accounting
policies and other explanatory notes.
Management’s Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements in
accordance with the International Financial Reporting Standards (IFRS), issued by the International Accounting Standards
Board (IASB), and for such internal control as Management deems necessary to enable the preparation of consolidated
financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted
our audit pursuant to the International Standards on Auditing approved for their application in Peru by the Council of
Deans of the Public Accountant Associations of Peru. Those standards require that we comply with ethical requirements,
and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are
free from material misstatement.
Registered in item 11396556 of the Registry of Legal Entities of Lima and Callao
Member of Ernst & Young Global
110
2020 ANNUAL REPORT
/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated
financial statements. The selected procedures depend on the auditor’s professional judgment, including the assessment of
the risks of material misstatement in the consolidated financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers the internal control relevant to the Group for the preparation and fair presentation
of the consolidated financial statements in order to design auditing procedures that are appropriate according to the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control. An
audit also includes evaluating the appropriateness of the accounting principles used and the reasonableness of the
accounting estimates made by the Management, as well as evaluating the overall presentation of the consolidated
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the accompanying consolidated financial statements fairly present, in all material aspects, the financial position
of Compañía de Minas Buenaventura S.A.A. and Subsidiaries as of December 31, 2020 and 2019, as well as their financial
performance and their consolidated cash flows for the years ended in December 31, 2020, 2019 and 2018, in accordance with
the International Financial Reporting Standards issued by the International Accounting Standards Board (IASB).
Lima, Perú,
February 25, 2021
Countersigned by:
Katherine Villanueva
C.P.C.C. Matrícula No.36892
Firma miembro de Ernst & Young Global Limited
111
Financial statements
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As of December 31, 2020 and 2019
Assets
Current assets
Cash and cash equivalents
Trade and other receivables, net
Inventories, net
Income tax credit
Prepaid expenses
Non-current assets
Trade and other receivables, net
Inventories, net
Investments in associates and joint venture
Mining concessions, development costs, right-of-use asset,
property, plant and equipment, net
Investment properties, net
Deferred income tax asset
Prepaid expenses
Other assets, net
Total assets
Liabilities and shareholders’ equity, net
Current liabilities
Bank loans
Trade and other payables
Provisions, contingent liabilities and other liabilities
Includes lines that are not provisions such as benefits to
Income tax payable
Financial obligations
employees. SAD.
Hedge derivative financial instruments
Non-current liabilities
Trade and other payables
Provisions, contingent liabilities and other liabilities
Includes lines that are not provisions such as benefits to
Financial obligations
employees. SAD.
Contingent consideration liability
Deferred income tax liabilities
Total liabilities
Shareholders’ equity, net
Capital stock
Investment shares
Additional paid-in capital
Legal reserve
Other reserves
Retained earnings
Other reserves of equity
Shareholders ‘equity, net attributable to owners of the parent
Non-controlling interest
Total shareholders’ equity, net
Total liabilities and shareholders’ equity, net
2020
US$(000)
2019
US$(000)
235,449
230,830
77,327
19,837
25,709
589,152
102,347
23,637
1,488,775
1,650,361
186
73,850
24,806
26,503
3,390,465
3,979,617
65,793
179,956
68,000
3,162
25,086
18,439
360,436
−
252,338
506,567
22,100
38,319
819,324
1,179,760
750,497
791
218,450
163,194
269
1,503,785
(9,526)
2,627,460
172,397
2,799,857
3,979,617
210,046
287,712
97,973
31,919
20,969
648,619
88,515
394
1,488,247
1,754,372
204
74,556
25,692
26,675
3,458,655
4,107,274
55,000
166,244
72,771
5,650
265,692
−
565,357
616
221,736
305,996
16,410
28,959
573,717
1,139,074
750,497
791
218,450
163,168
269
1,639,658
(1,311)
2,771,522
196,678
2,968,200
4,107,274
112
2020 ANNUAL REPORT
/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS
For the years ended December 31, 2020, 2019 and 2018
Continuing operations
Sales
Sales of goods
Sales of services
Royalty income
Total sales
Operating costs
Cost of sales of goods, excluding depreciation and
amortization
Unabsorbed cost due to production stoppage
Cost of sales of services, excluding depreciation and
amortization
Depreciation and amortization
Exploration in operating units
Mining royalties
Total operating costs
Gross profit
Operating expenses, net
Administrative expenses
Selling expenses
Write –off of stripping activity asset
Exploration in non-operating areas
Reversal (provision) of contingencies and others
Impairment recovery (loss) of long-lived assets
Other, net
Total operating expenses, net
Operating profit (loss)
Finance income
Finance costs
Share in the results of associates and joint venture
Net loss from currency exchange difference
Profit (loss) before income tax
Current income tax
Deferred income tax
Total income tax
Profit (loss) from continuing operations
Discontinued operations
Net profit (loss) from discontinued operations attributable to
equity holders of the parent
Loss for the year
Attributable to:
Equity holders of the parent
Non-controlling interest
2020
US$(000)
2019
US$(000)
2018
US$(000)
637,619
20,285
18,638
676,542
(393,888)
(27,758)
(1,554)
(189,620)
(28,044)
(11,749)
(652,613)
23,929
(67,185)
(18,533)
(11,633)
(8,475)
(4,150)
2,083
2,690
(105,203)
(81,274)
2,411
(37,822)
(9,517)
(4,116)
(130,318)
(9,924)
(15,506)
(25,430)
(155,748)
821,930
23,661
22,297
867,888
(512,874)
−
(3,378)
(226,335)
(44,163)
(12,832)
(799,582)
68,306
(76,297)
(24,313)
−
(11,879)
2,968
(2,083)
(14,715)
(126,319)
(58,013)
9,675
(42,173)
47,710
(734)
(43,535)
(11,911)
37,501
25,590
(17,945)
5,409
(10,514)
(150,339)
(28,459)
(135,718)
(14,621)
(12,208)
(16,251)
(150,339)
(28,459)
1,106,329
24,001
20,385
1,150,715
(613,381)
−
(4,318)
(238,879)
(89,730)
(21,388)
(967,696)
183,019
(77,099)
(26,948)
−
(36,307)
11,248
5,693
(1,308)
(124,721)
58,298
9,685
(38,422)
(1,144)
(1,384)
27,033
(16,882)
(9,997)
(26,879)
154
(11,808)
(11,654)
(13,445)
1,791
(11,654)
Basic and diluted loss per share attributable to equity
holders of the parent, stated in U.S. dollars
Loss for continuing operations, basic and diluted per share
attributable to equity holders of the parent, expressed in
US dollars
(0.53)
(0.05)
(0.05)
(0.56)
(0.01)
(0.02)
113
Financial statements
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the years ended December 31, 2020, 2019 and 2018
Operating activities
Proceeds from sales
Recovery from value added tax and other taxes
Royalty received
Dividends received from related parties
Dividends received from investments
Proceeds from insurance claim
Interest received
Payments to suppliers and third parties, and other net
Payments to employees
Income tax and Royalties paid to Peruvian State
Payments for tax litigation
Interest paid
Payments of royalties
Net cash and cash equivalents provided by operating activities
Investing activities
Proceeds from sale of property, plant and equipment to third parties
Additions to mining concessions, development costs,
property, plant and equipment
Acquisition of investment in associate
Payments for acquisition of other assets
2020
US$(000)
2019
US$(000)
2018
US$(000)
708,196
783,000
1,216,294
42,967
18,954
3,649
2,500
4,381
1,658
(454,140)
(129,353)
(25,708)
(22,386)
(21,653)
(6,180)
122,885
45,712
23,001
33,388
−
−
4,265
(610,737)
(137,300)
(24,935)
(36,322)
(28,266)
(4,741)
47,065
106,656
20,013
46,792
−
38,793
2,383
(861,282)
(151,602)
(30,898)
−
(27,699)
(13,190)
346,260
24,416
726
2,240
(71,546)
(13,453)
(1,641)
(102,627)
(111,270)
−
(3,700)
−
(8,529)
Net cash and cash equivalents used in investing activities
(62,224)
(105,601)
(117,559)
Financing activities
Proceeds from bank loans
Payments of bank loans
Proceeds from financial obligations
Payments of financial obligations
Dividends paid to controlling shareholders
Short-term and low value lease payments
Decrease (increase) of bank accounts in trust
Dividends paid to non-controlling shareholders
Net cash and cash equivalents used in financing activities
Increase (decrease) in cash and cash equivalents for the year, net
Cash and cash equivalents at beginning of year
Cash and cash equivalents at year-end
Financing and investing activities not
affecting cash flows:
Changes in estimates of mine closures plans
Change of the fair value for contingent consideration liability
Accounts receivable from sale of assets
18,019
(7,197)
−
(38,994)
−
(4,080)
2,134
(5,140)
(35,258)
25,403
210,046
235,449
55,000
(95,000)
161,894
(186,152)
(22,098)
(7,596)
(166)
(6,500)
(100,618)
(159,154)
369,200
210,046
95,000
(95,000)
−
(45,222)
(22,860)
−
(410)
(5,560)
(74,052)
154,649
214,551
369,200
31,558
(5,690)
8,233
26,722
(655)
21,648
42,874
1,815
2,715
114
2020 ANNUAL REPORT
/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
115
MEMBERS OF THE MANAGEMENT
Management
Roque Benavides G.
Raúl Benavides G.
CEO
Since 03/25/2011
Vice-President, Business Development
From 07/01/1997
To 12/31/2020 – termination
Juan Carlos Ortiz Zevallos
Vice-President, Operations
Alejandro Hermoza M.
Vice-President, Sustainability
Since 05/01/2018
Since 05/01/2018
Victor Gobitz C.
General Manager
From 01/02/2017
To 08/31/2020 – termination
Leandro García R.
Vice-President, Finance and Administration
From 12/01/2017
To 08/31/2020 – changed
Replaces Víctor Gobitz since 09/01/2020
position
Daniel Dominguez V.
Logistics Manager
From 03/01/2017
To 08/31/2020 – changed
Replaces Leandro García since 09/01/2020
position
Fernando Ortiz De Zevallos Malaga
Director, Business Development
From 01/01/2017
To 09/30/2020 – changed
Replaces Daniel Domínguez since 10/01/2020
position
Finance Manager
Since 09/01/2020
Manager of Information Technologies and Communications
Since 01/01/2020
Cecilia Puga Buse
Juan Buhytron Q.
Pedro Torres T.
Luz Campodónico A.
José Malca La Fuente
Gulnara La Rosa R.
Edgar Córdova M.
Aldo Massa Peschiera
Ignacio Agramunt B.
Accounting Manager
Internal Audit Manager
Human Resources Manager
Legal Manager
Community Relations Manager
Commercial Manager
Innovation Manager
Ernesto Ladron de Guevara H.
Compliance Manager
Renzo Macher C.
Andres Osorio A.
Julio Meza Paredes
Juan Carlos Salazar C.
Carlos Rodríguez Vigo
Percy Montoya Vargas
Diego Angulo de Aviles
Tomas Chaparro D.
Alex Lobo Guillén
Percy Ponce B.
Project Manager – Projects
Project Manager – Operations
Geology Manager
Geology and Explorations Manager
Manager of Environmental Management
Manager of Environmental Management
Planning Manager
Safety Manager
Technical Manager of Open-Pit Operations
Manager of Metallurgical Research and Plants
116
Since 02/01/2020
Since 01/15/2018
Since 04/08/2019
Since 09/01/2017
From 06/01/2019
To 04/30/2020 – termination
To 03/31/2020 – termination
Since 03/01/2020
Since 03/01/2020
To 02/29/2020 – termination
Since 09/25/2017
To 01/02/2020 – termination
Since 07/19/201
Since 07/01/2018
Since 01/01/2018
2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
Lima
Juan Ayala López
Kellyn Cristobal Paredes
Process Director
Planning Director
Augusto Bejarano Vásquez
Tax Accounting Director
Rosemarie Boltan Atoche
Regional Director of Environmental Management
Guillermo Chang Chag
Financial Audit and Process Director
Carlos Claux Mora
Juan Collao Guanilo
Andres Condori Benavides
José Luis Aquino Aquino
Pedro Navarro Bayona
Fredy Oscategui Salazar
Julio Velasquez Miñan
Miguel Diaz Romero
Jorge Falla Cordero
Social Responsibility and Development Director
Commercialization Director
Geology Director
Geology Director
Safety Director
Safety Director
Safety Director
Financial Accounting Director
Permits and Obligations Director
Luis Fernandez De Paredes Robles
Regional Explorations Director
Since 04/01/2019
Since 12/01/2019
From 08/01/2016
To 08/15/2020 – termination
From 02/01/2014
To 03/31/2020 – termination
Since 01/01/2020
Since 10/15/2018
Since 08/01/2017
Alfredo Gallardo Rios
Rolando Ligarda C.
Environmental, Mine-Closure Director Technical Director
From 01/01/2014
To 02/29/2020 – termination
Regional Explorations Director
Since 07/01/2018
Fernando Mayor Najera
Director of Research and Compliance Audit
Neil Mendoza Hoyos
Freddy Meza Padilla
Asset Management Reliability Director
Since 02/01/2018
Project Development Director
From 04/20/2013
To 08/15/2020 – termination
Miguel Infantes Quijano
Project Development Director
Since 07/06/2020
Alberto Peña Alburqueque
Modeling and Resources Director
From 06/15/2015
To 06/07/2020 – termination
José Gutierrez Ramirez
Modeling and Resources Director
Since 08/01/2020
Ana María Rivera Calderón
Social Management Director
Guillermo Shoof A.
Legal Director
Since 01/01/2018
Rossi Marie Montalvo S.
Service Procurement and Contract Administration Director
Since 10/01/2019
Juan Martin Chávez L.
Rafael Guillen Llerena
Harry Silva Nichos
Jorge Villanueva Samar
José Trujillo Salcedo
Procurement of Materials and Assets Director
Logistics Director
Project Control Director
Project Control Director
Regional Explorations Director
Pablo Valladares Hernandez
Regional Director of Environmental Management
Since 09/01/2018
Since 09/01/2018
From 11/08/207
To 04/30/2020 – termination
Since 05/01/2020
Since 07/01/2018
Since 08/01/2017
Dante García Suclla
Metallurgical Projects Director
From 01/01/2019
To 02/29/2020 – termination
Fernando Zeballos Zeballos
Metallurgical Projects Director
Since 05/08/2020
Juan Carlos Vargas Byrne
Director of Labor Relations and Personnel Management
Silvia Vicente León
Information Systems TIC Director
Manuel Villalobos Berrocal
Administration Director
From 01/04/2016
To 10/31/2020 – termination
Juan Pablo Zoeger La Hoz
Management and Human Development Director
Roger Velasquez Rosales
Costs and Budget Director
Since 06/01/2020
117
Members of the Management
Uchucchacua
José Luis Alcalá Valencia
Unit Manager
Waldir Guillermo Cisneros
Plant Superintendent
Roger Ccahuana Figueroa
Geology Superintendent
Heider Montoya Espinoza
Mine Superintendent
Martin Rodriguez Serveleon
Maintenance Superintendent
Planning Superintendent
Project Superintendent
Environmental Management Superintendent
Safety Superintendent
Social Affairs Superintendent
Administration Superintendent
Human Resources Superintendent
Unit Accountant
Orlando Olarte Olivas
Fabricio Huerta Luza
César Carrasco Loayza
Hector Quispe Chahua
César Rondinelli Zaga
Hector Quispe Ramos
Enrique Romero Graus
Julio Delgado Zúñiga
Mallay
Since 06/01/2019
Since 05/01/2019
Since 01/01/2020
Since 05/01/2019
Since 04/01/2019
Since 01/01/2019
Since 07/01/2019
Since 08/01/2019
To 09/30/2020 – termination
To 08/21/2020 (passed away)
Rolando Quispe Vilcahuamán
Head of Community Relations
Since 10/01/2015
Orcopampa
Gilmar Valenzuela Salazar
Production Manager
Since 12/01/2018
Edwin Mendoza Begazo
Geology Superintendent
Jimmy Gabriel Espinoza
Environmental Management Superintendent
Pedro Vizcardo Martínez
Administration Superintendent
Percy Quea Díaz
Human Resources Superintendent
Eduardo Molinari Arroyo
Head of Community Relations
Alex Huaraca Aylas
Head of Mine (Advance and Development)
Since 06/11/2019
Since 09/01/2019
118
2020 ANNUAL REPORT
/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
Julcani
Jaime Jimenez Tuse
Carlos Montes Moya
Unit General Superintendent
Geology Superintendent
Yackson Enrique Figueroa Cruz
Plant Superintendent
Mirko Martinez Neira
Ivan Carhuaz Castro
Alfredo Angulo S.
Rendel Apolo Farias
Marco Molina Rosas
Mine Superintendent
Social Affairs Superintendent
Environmental Management Superintendent
Safety Superintendent
Safety Superintendent
Jackson Arriola Céspedes
Planning and Projects Superintendent
Rommer Mendoza Ramírez
Head of Human Resources
Since 08/19/2019
Since 09/01/2019
Since 02/01/2019
From 07/08/2019
Since 06/01/2020
Since 09/01/2019
Salvador Salazar Zegarra
Head of Administration – Unit
Since 12/01/2019
Tambomayo
Edgar Roque Ortiz
William Agurto Anton
Edgard Atencia Daga
Antonio Blanco Quiroga
Unit Manager
Maintenance Superintendent
Mine Superintendent
Mine Superintendent
Roger Ccahuana Figueroa
Geology Superintendent
Edwin Mendoza Begazo
Geology Superintendent
Pedro Escudero Jaimes
Planning and Engineering Superintendent
Fernando Dueñas Aliaga
Safety Superintendent
Percy Quea Díaz
Human Resources Superintendent
Cesar Jacobo Nolasco
Plant Superintendent
Jimmy Gabriel Espinoza
Environmental Management Superintendent
Segundo Salazar Silva
Social Affairs Superintendent
Since 01/01/2018
Since 10/01/2018
From 02/01/2018
Since 07/01/2020
Since 01/01/2020
Since 03/01/2020
Since 11/01/2018
Since 03/01/2020
Since 01/01/2020
San Gabriel
Ricardo Huancaya Delgado
Project Manager – San Gabriel
Alicia Sotelo Rendón
Project Superintendent
Danny Valencia Galvan
Head of Community Relations
Eduardo Cuellar Bohorquez
Head of District Explorations
Julio Ugarte Luna
Environmental Management Superintendent
Huber Usuriaga Najera
Head of Mine
Javier Rendon Lopez -Torres
Head of Mine Geology
Jackson Durand Liñan
Edgardo Torres Suarez
Safety Engineer
Safety Engineer
Since 05/01/2019
From 04/15/2019
Since 09/01/2019
Since 06/01/2020
Since 09/01/2019
Since 04/01/2019
Since 02/01/2020
Since 10/14/2019
Since 01/01/2018
To 03/19/2020 (passed away)
To 06/30/2018 – Tr. to UCH
To 12/31/2019 – Tr. To UCH
To 12/20/2020 – termination
119
Members of the Management
La Zanja
Kenny Regalado Vasquez
General Superintendent – Unit
Jesus Guerra Molina
General Superintendent – Unit
Robinson Paredes Abanto
Plant Superintendent
From 03/06/2019
Since 10/02/2020
To 09/30/2020 – termination
Humberto Núñez Flores
Environmental Management Superintendent
Since 12/02/2019
CIA. Minera Coimolache
Gary Samuel Chircca Ayesta
Unit Manager
Since 07/01/2017
Juan Calizaya Yufra
Manuel Aranda Villar
Geology Superintendent
Mine Superintendent
César Esquivel Saavedra
Administration Superintendent
Segundo Velasquez Miranda
Plant Superintendent
Victor Orihuela Vega
Angel Francia Meza
Human Resources Superintendent
Human Resources Superintendent
Since 07/01/2018
Since 09/01/2018
Since 10/01/2020
To 09/30/2020 – Tr. to Brocal
Conenhua
Carlos Herrera B.
Mario Borda C.
David Giraldo Ch.
Fabio Mallqui A.
El Molle Verde
Ruben Valer Cruces
Julio Ayquipa Tapia
Technical Manager
Operations and Maintenance Superintendent
Since 03/01/2019
Operations Superintendent
Engineering Superintendent
Project Manager
Head of Process – Project
Angel Fernandez Canchos
Head of Environmental Management – Unit
Ruben Fernandez Soto
George Flores Caso
Javier Maguiña Aliaga
Walter Rondinelli Zaga
Walter Rondinelli Zaga
Project Superintendent
Head of Project Control
Head of Mine
Social Affairs Superintendent
Social Affairs Superintendent
Jose Luis Tafur Cabrera
Head of Planning – Unit
Francisco Javier Veliz Mamani
Geology Superintendent
To 07/05/2020 – termination
To 07/31/2020 – termination
Since 09/15/2020
(went back to El Molle)
To 07/31/2020 – termination
120
2020 ANNUAL REPORT
/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
Rio Seco
Jaime Díaz Yosa
Unit Manager
José Luis Lama Manayay
Research and Development Superintendent
Giovani Loayza Montenegro
Plant Operations Superintendent
Sandra Medina Vega
Felipe Gonzales Bernal
Safety Superintendent
General Maintenance Superintendent
Javier Vasquez Delgado
Human Resources Coordinator – Unit
Eduardo Solis Encinas
Head of Processes – Plant
Since 01/01/2018
Since 03/11/2019
Since 05/23/2019
Since 09/01/2020
SOC. Minera El Brocal
Marco Oyanguren Leon
Daniel Roca Fabian
Hector Alzamora Benites
El Brocal Manager
Mine Manager
Process Manager
Marco Calderon Marmanillo
Mine General Superintendent
Raul Olivares Jurado
Hugo Araoz Zevallos
Wilder Cabrera Teran
Project Optimization Manager – El Brocal
Environmental Superintendent
Project Superintendent
Carlos Camacho Delgado
Superintendent of Underground Mine Ops.
Sergio Gallesi Guanilo
Dante Gavidia Cannon
Plant Process Superintendent
Planning and Engineering Superintendent
Moises Mascco Cotaquispe
Plant Maintenance Superintendent
Ivan Monteagudo Gonzales
Development and Explorations General Superintendent
Armando Muñoz Santillana
Social Affairs Superintendent
Marco Negron Tunjar
Gino Ojeda Moret
Victor Orihuela Vega
Kely Santos Perez
Ivan Turco Aliaga
Safety Superintendent
Administration Superintendent
Human Resources Superintendent
Processes Technical Superintendent
Electric Maintenance and Instrumentation Superintendent
Marco Villalobos Oliva
Maintenance Planning Superintendent
To 12/03/2020 – termination
Since 01/14/2020
Since 09/01/2020
Since 10/01/2020
To 12/02/2020 – termination
121
CAREER OF MANAGEMENT AND
BOARD MEMBERS
Roque Benavides
Chairman of the Board of Directors
Civil Engineer from Pontificia Universidad Católica
del Perú with a Master’s Degree in Business
Administration by Henley, University of Reading,
United Kingdom. He completed the Management
Development Program at Harvard Business School,
United States, and the Advanced Management
Program at Templeton College, University of Oxford,
United Kingdom. He has worked at Buenaventura
since 1977, and is Director of Sociedad Minera El
Brocal and Banco de Crédito del Peru (BCP). He was
Director of UNACEM from 2010 to 2020.
the National
He served as President of
Confederation of Private Business Institutions
(CONFIEP, in Spanish) for two periods, the last of
which was completed in February 2019. He has also
been Chairman of the National Society for Mining,
Oil and Energy (SNMPE).
He is Chairman of the Board of Trustees of Universidad
Nacional de Ingeniería (UNI, in Spanish) since 2020.
He is also President of the Institute of Mining Safety
(ISEM, in Spanish) and has been a member of the
Fulbright Commission in Peru since 2019.
Nicole Bernex
Director
Member of the Board of Directors of BVN since
January 2018. She holds a Ph.D. in Geography (1975)
and a Master’s Degree in Geography (1971) by the
Université Paul-Valéry, Montpellier, France. She has
been Professor of the Department of Humanities at
Pontificia Universidad Católica del Perú (PUCP) since
1984; Academic Director of the Center for Research
in Applied Geography of said university from 1984
to 2018; Chairman of the Board of Directors of the
Scientific Institute of Water since 2018; President
of the Geographical Society of Lima since July 2016;
and member of the Board of Directors of 2030
Water Resource Group Peru. Member of the Global
Water Partnership Global Technical Committee
(2014-2017) and is Emeritus President of the Global
Water Partnership Peru. Vice-President of the
National Academy of Sciences. She has also been
Director for Latin America and the Caribbean of
the Scientific Committee of the United Nations
Convention to Combat Desertification, coordinator
of various research programs and consultant to
different international entities (SAP-BM, UNDP,
FAO and others). She has over 150 publications.
William Champion
Director
He holds a Bachelor’s Degree
in Chemical
Engineering and Biology by the University of
Arizona. He has been a member of the Board of
Directors since January 2016. He is Director of
PJSC Polyus, a large Russian gold company. He
is also Director of US-based Peabody Energy,
a producer of thermal and metallurgical coal.
More than 40 years of executive, managerial and
operational experience in the mining sector. He
worked at Rio Tinto PLC from 2002 to 2014, holding
various positions: CEO of Rio Tinto Coal Australia,
CEO of Rio Tinto Diamonds and President and
CEO of Kennecott Utah Copper. He also worked
at Phelps Dodge Mining Company from 1984 to
1995, where he held various positions (President
of Phelps Dodge Chile).
122
2020 ANNUAL REPORT
/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
Diego de la Torre
Director
Felipe Ortiz de Zevallos
Director
Industrial Engineer from UN with a Master’s
Degree
in Business Administration by the
University of Rochester, graduate of the OPM
Program at Harvard University School of
Business. In addition to various institutional
(NON-professional), academic and business
activities, he has been Founder and President
of APOYO since 1977. He was Senior Professor
and Rector of Universidad del Pacífico (2004-
2006), (NO and) Ambassador of Peru to the US
(2006-2009); and President of Asociación Civili
Transparencia. IPAE Award 1990.
Marco Antonio Zaldívar García
Independent Director
Chartered Public Accountant from Universidad
de Lima, graduated from the PAD Management
Development Program at Universidad de Piura, and
MBA from Adolfo Ibáñez School of Management,
United States. He is Independent Director of
various companies such as Backus & Johnston,
Banco Santander and Cementos Pacasmayo. He
has served as Chairman of the Board of Directors
of the Lima Stock Exchange (BVL) and Second Vice-
Chairman of CONFIEP, among other positions.
Bachelor’s Degree in Business Administration by
Universidad del Pacífico in Lima, and an MBA by the
London Business School, England. He is co-founder and
Chairman of the Board of Directors of La Viga, Quikrete
Peru, Aleteia Capital and Bodega RAS. Member of the
advisory board of the David Rockefeller Center for
Latin American Studies at Harvard University and the
international council of CEAPI in Madrid. He has been
professor at Universidad del Pacífico and director
of PPX Mining, Endeavor Peru, IPAE, IPE, CAPECO,
Museum of Art of Lima, and Peru 2021. Since 2005
he has been President of the United Nations Global
Compact in Peru. In 2013 he received the “Integral
Entrepreneur” award from the Latin American
Business Council (CEAL). Selected among the Top 100
Leaders by AACSB International, among other awards.
He is Director of Buenaventura since 2017.
José Miguel Morales
Director
Lawyer from the PUCP. He completed the Stanford
University Business School Training Program.
Chief Lawyer of the company since 1970 and
General Counsel from 1993 to 2010. He has been
a Senior Partner of the Aurelio García Sayán Law
Firm since 2007 and has been working since 1965
in this firm. Director of five associated companies
and several other non-mining companies. He
was President of the Mining and Petroleum Law
Institute, the National Society for Mining, Oil and
Energy, and CONIPEP. He is currently President of
the Entrepreneurs for Education Association.
123
Career of Management and Board Members
Leandro García, CEO
General Manager
He holds a Bachelor’s Degree
in Business
Administration and Accounting from Universidad
del Pacífico and a Master’s Degree in Business
Administration from the University of Miami,
Florida. He completed the Advanced Management
Program at Harvard Business School, United States,
in 2017.
He worked at Buenaventura from 1990 to 1997 as
Chief of Treasury and served as Finance Manager
of Sociedad Minera El Brocal until 2000. In 2011 he
rejoined the company as Comptroller General and
in 2017 he became Vice-President of Finance and
Administration. He was appointed CEO-General
Manager of Buenaventura in September 2020. He is
also General Manager of Sociedad Minera El Brocal.
He was General Manager of Consorcio Energético
Huancavelica
(Conenhua) and Empresa de
Generación Huanza until 2020, as well as General
Manager of Boticas BTL until 2005 and Boticas
Inkafarma until 2011. He was Director of Química
Suiza Retail, a business that manages Boticas Mi
Farma pharmacy chain, from 2016 to 2018.
Currently, he is Director of Compañía Minera
Coimolache, Compañía Minera Colquirrumi,
Compañía Minera Condesa, Consorcio Energético
Huancavelica (Conenhua), CONTACTO Corredores
de Seguros, Empresa de Generación Huanza, Rio
Seco Industrial Processing Plant and Sociedad
Minera El Brocal, as well as Alternate Director of
Sociedad Minera Cerro Verde and member of the
Yanacocha Executive Committee.
Raúl Benavides
Vice-President, Business Development
He holds a Bachelor’s Degree in Mining Engineering
by the Missouri-Rolla University. He holds a
Master’s Degree
in Mining Administration by
Pennsylvania State University and completed
the Advanced Management Program at Harvard
Business School (AMP-160). He is currently Director
of the Institute of Mining Engineers of Peru (IIMP).
He is also founder and President of the Institute of
Mining Safety (ISEM). He is currently President of
CETEMIN, technical mining school. He has worked
at Buenaventura since 1980 and is Director of 11
associated companies.
Daniel Domínguez
Vice-President, Finance and
Administration
in Economics
He holds a Bachelor’s Degree
by Universidad del Pacífico and a Master’s
Degree in Business Administration by the same
university. He successfully completed the General
Management Program at Harvard Business School
in 2015, and the Corporate Finance Program
at London Business School in 2010. He joined
Buenaventura 20 years ago, having started his
career at INMINSUR (former subsidiary company)
as Head of Treasury. He was then transferred
to Buenaventura, where he has held various
positions, such as Head of Treasury, from 2003 to
2012; Director of Treasury and Financial Planning,
from 2012 to 2015; Financial Planning and
Investor Relations Manager, from 2016 to 2017;
and Logistics Manager, from 2017 to 2020.
124
2020 ANNUAL REPORT
/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY
Alejandro Hermoza
Vice-President, Sustainability
Juan Carlos Ortiz
Vice-President, Operations
Mechanical engineer from the University of
Maryland, he holds a Master’s Degree in Engineering
by the same university and a Master’s Degree in
Administration by Universidad Peruana de Ciencias
Aplicadas – UPC. He worked as Development
Manager at the National Confederation of Private
Business Institutions (CONFIEP) and works at
Buenaventura since 2003 where he has held the
positions of Community Relations Manager (2008-
2011), Assistant Manager of Administration and
Human Resources (2003-2008) and Vice-President
of Sustainability (2008 to date). He has been an
alternate member of the Yanacocha Executive
Committee since 2014. In 2011 he graduated from
the Advanced Management Program at Harvard
Business School (AMP).
Mining Engineer from Pontificia Universidad
Católica del Perú (1992), with a Master’s Degree
in Engineering by Pennsylvania State University,
United States, with a major in Mining Engineering
Management. Before Buenaventura, he had served
as Technical Central Manager of Compañía Minera
Volcan, a polymetallic mining company and one
of the largest producers of zinc, lead and silver
in the world. Previously, he had been Corporate
Operations Manager at Compañía Minera Milpo
(now part of Nexa Resources Group), where
he was in charge of operations at Cerro Lindo,
Atacocha and El Porvenir. During his professional
development he has served in different operations
in Latin
and project management positions
America. He is currently Director of the Institute
of Mining Engineers of Peru.
125
126
2020 ANNUAL REPORT