2017
ANNUAL
REPORT
MEMORIA ANUAL 2017
1
TABLE OF CONTENTS
2
MEMORIA ANUAL 2017
LETTER TO THE SHAREHOLDERS
65 YEARS OF HISTORY
AND LONG-TERM VISION
CORPORATE CULTURE
STRATEGIC MAP
OPERATIONS
PROJECTS
OTHER BUSINESS DEALINGS
SAFETY
ENVIRONMENTAL MANAGEMENT
SOCIAL MANAGEMENT
ECONOMIC, FINANCIAL, AND
CORPORATE MATTERS REPORT
MANAGEMENT
ANALYSIS AND DISCUSSION
OPERATIONS SUMMARY
04
12
14
16
18
38
44
50
52
56
60
62
70
SHAREHOLDING STRUCTURE
90
SHARE AND ADS BEHAVIOR
FINANCIAL STATEMENTS
MEMBERS OF THE MANAGEMENT
BACKGROUND OF THE MEMBERS OF THE
BOARD OF DIRECTORS AND MANAGEMENT
GOOD CORPORATE
GOVERNANCE REPORT
94
96
214
220
226
ORIA ANUAL 2017
MEM
3
LETTER TO THE
SHAREHOLDERS
To our shareholders:
2017 turned out to be a good year despite the surprising
political events seen both around the world and in Peru.
of the independence movement and possible future Catalan
president, remains in self-exile in Belgium.
And then there were the many natural disasters that
caused immense damages, such as the earthquake in
Mexico, the mudslides and landslides in Peru and
Colombia, and Hurricane Irma, which took lives and
wrought havoc throughout the Caribbean. Special note
should be made of the disasters caused by the Coastal
The businessman Donald Trump took office as president
of the United States on January 20, 2017, with a
platform
focused on bolstering border security,
expanding tax reform, and creating jobs.
In his first year in office, President Trump has taken
actions to limit immigration , mainly from Muslim
countries, and to foster private investment through
deregulation and lower taxes for the corporate sector.
His administration has declared this latter measure the
most important tax reform of the last thirty years.
On the international front, tensions between the United
States and North Korea over Kim Jong-un’s nuclear
program have increased the possibility of conflict in
Asia.
In Latin America, the “Operation Car Wash” corruption
case, which came to light in 2013, tarnished politicians
and Brazilian construction companies, with Odebrecht
first and foremost among them. During 2017, this case
caused repercussions in a number of countries in the
including Ecuador, Colombia, Argentina,
region,
Panama, the Dominican Republic, and Peru.
In Europe, the region of Catalonia (which accounts for
19% of Spain’s GDP) held a referendum on seceding
from Spain. Spain’s president, Mariano Rajoy, declared
the referendum illegal and called new elections for
Catalonian authorities. Carles Puigdemont, the leader
4
2017 ANNUAL REPORT
El Niño effect , which mainly affected northern Peru.
During 2017, the political environment in Peru was
shaken by Operation Car Wash. Odebrecht admitted
to
to U.S. authorities
government officials, authorities, and politicians in
Peru in exchange for being awarded contracts for
major infrastructure works. As a result,
it had paid bribes
that
officials from various past administrations are now under
investigation by the Congress of the Republic and
Peruvian judicial authorities.
Against this backdrop, the President of the Republic,
Pedro Pablo Kuczynski, was forced to respond to a
motion for impeachment in Congress brought by the
opposition parties, led by Fuerza Popular.
(From L to R): German
Suarez, Diego de la Torre,
Felipe Ortiz de Zevallos,
William Champion, Roque
Benavides, Nicole Bernexy,
Jose Miguel Morales.
LETTER TO THE
SHAREHOLDERS
They were unable to cobble together the necessary
votes required under the Constitution, however, and the
motion for impeachment was denied.
Another big news story this year was the pardon, on
humanitarian grounds, of ex-president Alberto Fujimori,
who had been serving time in prison since 2009. This
decision led to a great deal of controversy, even within
the pro-Fujimori party.
In economic terms, the International Monetary Fund
(IMF) estimates a growth of 3.7% in the world GDP in
2017, the highest rate since 2011. This recovery is
expected for both developed and developing countries.
The U.S. economy showed a slight improvement. In
the third quarter of 2017, the GDP growth (2.3%)
exceeded expectations in the market and exhibited
favorable behavior in most spending components.
In the Eurozone, the victories of Emmanuel Macron
(France) and Angela Merkel (Germany) ensured the
economic bloc’s continued unity. During the first half of
the
the European economy exceeded
expectations, with economic growth benefiting the
majority of its member countries.
year,
Japan registered a GDP growth rate of 2.1% in the
third quarter of 2017, which was higher than those
observed in the previous two quarters (1.6% and 1.5%,
respectively). In China, meanwhile, the economy grew
by 6.8% in the third quarter, at a rate slightly below that
registered in the first two quarters of the year (6.9% in
both quarters), but higher than expected.
6
MEMORIA ANUAL 2017
The International
Monetary Fund
estimates the growth
of the world’s
economy at
3.7
%
in 2017
Our country
maintained its
macroeconomic
soundness and
grew by
2.5
%
at a higher rate
than its peers in
the Pacific
Alliance
Due to an improved international climate, Latin America
was able to transition out of its recession, led by the
recovery of the Argentinian and Brazilian economies.
rate than its peers in the Pacific Alliance. Because of this,
Fitch, Moody’s, and S&P did not change Peru’s rating or
debt outlook, and the country’s risk indicator continued
falling until hitting its lowest levels in the last ten years.
Nevertheless, the Chilean economy remained stagnant for
the first half of 2017 due to the halting of work at the
Escondida copper mine, which suffered the longest (43
days) and largest strike (2,500 workers) in the history of
the Chilean mining sector.
Metal prices exhibited a stronger performance during
the year, with gold closing at US$ 1,302.80 per ounce,
while silver ended the year at US$ 16.94 per ounce and
copper closed at US$ 7,207.00 per ton, its highest level in
the last three years. Meanwhile, zinc closed at US$
3,337.50 per ton, its highest peak in the last decade.
Lead hit US$ 2,484.75 per ton, and tin closed at US$
19,756.00 per ton. This will encourage mining investments
and help reactivate halted projects.
In Peru, the economy was affected by four variables: the
Coastal El Niño effect in the summer; the drop in public
spending during the first half of the year; the Operation Car
Wash corruption scandal; and political conflicts between
the executive and legislative branches.
Due to the improved international scenario, however,
Peru was able to continue growing. This external boost,
together with the reactivation of public spending starting
in the third quarter, helped drive the sectors most hurt
by the slowdown, such as mining, construction, and
non-primary industry.
Despite difficulties, our country maintained
its
macroeconomic soundness and grew by 2.5%, a higher
The upward trend in metal prices led to increased
acquisitions of shares in Peruvian companies, causing
the General Index of the Lima Stock Exchange (BVL), to
rise by 28%. In fact, the BVL was among the emerging
economies that received the greatest influx of foreign
investments.
to
The price of Buenaventura’s shares rose by 24.8%
during the year, closing out at US$ 14.08. This was
largely thanks to higher metal prices and the increase in
production due
into operation of
the entry
Tambomayo. While the expansive policy continues to be
drawn back as the U.S. economy gains its footing,
geopolitical risks remained present, which helped the
price of gold. During the second half of the year, industrial
metal prices experienced a sharp jump due to the
synchronized progress of the world’s economies and the
stronger growth outlook in China.
During 2017, the Company registered a net profit of US$
64.4 million, compared to a net loss of US$ 327.8 million
in fiscal year 2016, due mainly to the effect of Yanacocha’s
losses. As a result of the decisions made in 2016 in an
effort to improve Buenaventura’s debt position, the ratio of
net debt to EBITDA fell from 1.74x to 1.38x.
The higher influx of dollars led the sol to appreciate
against the U.S. currency (up 3.5% from December
2016). In this context, the Banco Central de Reserva
MEMORIA ANUAL 2017
7
LETTER TO
SHAREHOLDERS
(BCRP) bought up a net of US$ 5.246 billion, while
Peru’s net international reserves totaled US$ 63.621
million.
The World Bank’s Doing Business ranking places Peru
in 58th place out of 190 countries, and third in Latin
America, behind Mexico (49) and Chile (55), moving
Colombia (59) to fourth place.
We must not forget that mining is a “price-taker” activity.
As such, our efforts must remain focused on reducing
costs and
in our operating
procedures in order to make the most of our natural
resources.
increasing efficiency
For Buenaventura, 2017 was a good year. Our mining
units hit their production goals, and our projects continue
to make progress.
The safety of our collaborators also continues to be a
critical goal. Our objective is to reinforce our safety culture
to help improve results and achieve our goal of “zero
accidents.”
We are pleased to report that in August of 2017, our
Tambomayo Unit, located in the Province of Caylloma, in
Arequipa, satisfactorily completed the “ramp up” process,
operating stably at its full capacity of 1,500 tons per day
(TPD). This achievement is proof of our team’s abilities and
dedication to reaching the goals set for them.
As of the close of 2017, Tambomayo had produced 64,175
ounces of gold and 1,788,219 ounces of silver. Over the
course of a full year, the mine is expected to produce
between 110 and 130 thousand ounces of gold, and 3 to
3.5 million ounces of silver.
The Orcopampa Unit, located in Castilla, Arequipa, produced
190,976 ounces of gold, compared to 191,102 ounces
the previous year. Meanwhile, explorations in the
Pucará area have had positive results. This will enable
us to increase the mine’s useful life, maintaining current
production levels. Additionally, a program is being
implemented to resolve certain bottlenecks with regard
to ventilation and hoisting, with the goal of improving
operating conditions, and of course, reducing costs.
Our open-pit units in Cajamarca also exhibited a strong
performance. La Zanja produced 127,118 ounces of
gold, while according to estimates, Coimolache had
produced 151,454 ounces of gold as of the close of
2017.
It should be noted that we have decided to modify the
production plan for La Zanja to extend its useful life until
2019. This will allow us to develop the new Luciana
(gold) and Emperatriz (copper) exploration projects.
We would also like to highlight the agreement reached
with Gold Fields to process the gold ore extracted by
said company at the Coimolache processing plant,
which is expected to produce between 40 and 50
thousand ounces of gold annually in the coming years.
Additionally, we continue to study the Coimolache
Sulfides Project, a copper deposit located below the
current gold oxides operation area.
Uchucchacua, located in the highlands near Lima,
achieved a new production record with 16,583,698
ounces of silver, surpassing the 16,212,746 ounces
produced the previous year, despite a three-day
shutdown due to a roundtable discussion with the
community of Oyón.
8
MEMORIA ANUAL 2017
In 2018, Uchucchacua will also seek to overcome a
series of bottlenecks, including ventilation, hoisting,
and drainage. On the other hand, the results of the
explorations at Cachipampa have been encouraging.
This zone features silver grades similar to current ones,
but with an interesting presence of lead and zinc.
Mallay, in Oyón, produced 1,109,382 ounces of silver,
compared to the 1,627,246 ounces reported in 2016. In
an effort to increase profitability for the Company, the
Mallay processing plant is now prioritizing the ore from
Uchucchacua. This decision explains the drop in annual
production. Additionally, hydrogeological studies are
being performed
the continuity of
to determine
operations inside the mine.
Our Julcani Unit, in Huancavelica—Buenaventura’s first
mine—produced 2,249,527 ounces of silver, compared
to 3,264,420 ounces in 2016. At this mine, we have
decided to reduce the treatment volume so we can focus
on the most accessible areas with the highest grades,
thus decreasing dilution.
El Brocal
(61.43% BVN), a subsidiary of
Buenaventura that operates the Colquijirca Unit in Cerro
de Pasco, completed its operational integration with our
Company with the goal of creating synergies in an effort
to increase efficiency and improve productivity. This
process began in 2016, with the transfer of the support
systems and the different administrative areas.
In terms of production, in 2017, El Brocal registered
45,097 metric tons of copper, compared to 49,170 in
2016; and 51,511 metric tons of zinc, compared to
57,385 the previous year.
The 13K Project (13,000 tons of copper per day) is
expected
in 2018,
to be successfully achieved
increasing the mine’s production from 7,500 to 13,000
tons per day.
At the San Gabriel Project, located in Moquegua, we
continued to move forward with the prefeasibility
studies. The Environmental Impact Assessment (EIA)
was approved in March 2017 after a successful public
hearing, the first in history to be held in the Quechua
language. At the same time, we have continued to work
on improving relations with the community, and we are
currently performing geomechanical studies to define
the most appropriate mining method.
The Yumpaq Project, in Pasco, located five kilometers
from Uchucchacua, is also progressing nicely. This
silver deposit is very similar to Uchucchacua, and the two
units will be integrated in the future through a tunnel at the
3,850 level. Yumpaq is expected to be the future of
Uchucchacua.
Trapiche, a copper deposit in Apurímac, has prepared a
conceptual study for the heap leaching of secondary
enrichment ore. The prefeasibility study is scheduled for
completion in 2018.
Cerro Verde (19.58% BVN), in Arequipa, registered
481,810 metric tons of copper, compared to 502,495
tons produced the previous year. The company also
established a provision of US$ 376.6 million in the third
quarter, due to the contingent issues with the Peruvian tax
authority (SUNAT).
On the other hand, after concluding the expansion of its
copper concentrating plant—the biggest in the world—a
new dividends policy is expected to be announced at
the next Cerro Verde Shareholders’ Meeting.
MEMORIA ANUAL 2017
9
LETTER TO THE
SHAREHOLDERS
Yanacocha (43.65% BVN) reported a production of
534,691 ounces of gold in 2017. Its production is
expected to gradually decline until hitting a low of
200,000 ounces of gold starting in 2020. However the
Quecher Main Project is now being developed at this
mine, located in Cajamarca, which will allow for the
extraction of the remaining oxide ore to extend its useful
life
the
exploration of the sulfide deposits to determine their
viability.
through 2027, in addition
facilitating
to
Procesadora Industrial Río Seco produced 21,402
metric tons of manganese sulfate, positioning it among
the world’s largest producers of this product. The Río
Seco Center
Innovation and
for Technological
Development also continues to work on the BVN
Process, in an effort to add value to copper processing.
We expect to build and operate a copper refinery by
2021 to process compound minerals.
The effort dedicated to
exploration is part
of our culture at
Buenaventura
This ensures the
continuity of our
operations. As such, it is our
job to continue discovering
deposits, replenishing
reserves, and striving to
expand.
10
MEMORIA ANUAL 2017
The effort dedicated to exploration is part of our culture
at Buenaventura. It ensures the continuity of our
operations. As such, it is our job to continue discovering
deposits, replenishing reserves, and striving to expand.
With this in mind, we have carried out these tasks near
our mines, and in new areas, too.
We have set a goal of achieving operational excellence
technological
through a management based on
processes and tools. As previously reported, in 2016 we
implemented the SAP system, an enterprise resource
planning (ERP) program that integrates the finance,
accounting, and logistics systems. In 2017, we migrated
this system to El Brocal, as part of the synergy process with
that company, and we implemented an additional module
for maintenance management.
We are pleased to announce that in August 2017, we
revamped our website with updated, easy-to-find
information on our history, operations, projects, news,
social and environmental responsibility activities, and
relevant information for investors, thus reaffirming our
commitment to openness and transparency.
In other news, we would like to welcome Nicole Bernex,
who has joined Buenaventura’s Board of Directors as an
independent member in 2018. Igor Gonzales retired from
the board for personal reasons after four years of service.
We would like to thank him and acknowledge the
support, hard work, and passion he brought to the
Company as Vice President of Operations and one of its
directors.
Dr. Bernex is a Full Professor at the Department of Arts
and Letters of the Pontifical Catholic University of Peru
(PUCP), the Academic Director of the Center for
Research in Applied Geography at said university, and
a member of the Global Water Partnership. She is also a
consultant for a number of international bodies, such as
the World Bank’s Water and Sanitation Program. She
holds a PhD and a Master’s in Geography from Paul
Valéry University in Montpellier, France.
there were several changes
in our
In 2017,
management. Carlos Gálvez retired after working with
us for forty years. Carlos joined the Buenaventura family
in 1978, and had been Vice President of Finance and
Administration since 2001. We would like to thank him for
his important contributions and his constant dedication
and affection for Buenaventura. Leandro García took
over as Vice President of Finance and Administration on
December 1, 2017, where he is responsible for the
financial, commercial, and administrative departments.
Elsewhere, Gonzalo Eyzaguirre became Vice President
of Operations on July 1, 2017, replacing Igor Gonzales.
He is in charge of Buenaventura’s direct mining units,
as well as its subsidiaries. Prior to this, Gonzalo was the
General Manager of Sociedad Minera El Brocal.
It is important to note that 2018 marks the 65th
anniversary of our founding. As we traditionally do, we
will be celebrating with our entire team. This is an
occasion to remember those who contributed to the
company in the past, and of course, to acknowledge
those who make it possible for Buenaventura to remain
one of the leading mining companies in Latin America,
creating more and more value for society.
like
I would
On behalf of the Board of Directors of Compañía de
Minas Buenaventura,
thank our
management, our shareholders, and our suppliers. And
of course,
to express our special
appreciation to all of our collaborators from all of our
offices, units, and projects. Without your hard work,
none of this would be possible.
I would
like
to
Sincerely,
Roque Benavides
Chairman of the Board
MEMORIA ANUAL 2017
11
65 YEARS OF HISTORY AND
LONG-TERM VISION
Buenaventura has over 65 years of experience
in the exploration, development, construction,
and operation of mines, as well as in joint
ventures with world-class companies.
BVN acquires 11% of El
Brocal
As of this date, BVN
holds 61%
JV1:
Acquisition
of the Julcani
mine in
Huancavelica
Founding of
Buenaventura
1953
1950
Orcopampa
(1967: 75 →2017: 1.5K
TPD) 20x
1975
1971
1980
1979
1970
1967
1960
BVN lists on Lima
Stock Exchange
Uchucchacua
(1967: 150 →2017: ~4K
TPD) 25x
(1948-1956)
(1956-1962)
(1963-1968)
(1968-1975)
(1980-1985)
(1975-1980)
12 MEMORIA ANUAL 2017
Coimolache: First doré bar
obtained (nearly 1M OzAu
produced to date)
Huanza: Hydroelectric power
plant
commercial
operations (100 MW)
begins
2016
2013
JV3:
2
0
2
0
2010
2011
2014
Privatization of
Cerro Verde
(together with
Cyprus)
JV3:
(1994: 30k →2017:
500-550k MT Cu)
18x
1996
1994
2000
1993
1990
First doré bar obtained at
Tambomayo
La Zanja (nearly 1M OzAu
produced to date)
Inauguration of the Río Seco plant
First doré bar obtained
at Yanacocha (over 36M
Oz Au produced to date)
JV2:
First Latin American mining
company to list on the New
York Stock Exchange
García
(1985-1990)
Fujimori
(1990-2000)
Toledo
(2001- 2005)
García
(2006- 2011)
Humala
(2011-2016)
Kuczynski
(2016-to date)
MEMORIA ANUAL 2017
13
CORPORATE
CULTURE
Vision
Mission
Develop mineral resources while creating the greatest
value possible for society.
Be the mining company of choice, and that which is
most widely accepted, among communities, authorities,
and the general public.
Make the company as highly valued as possible by all
of its stakeholders.
Values
Safety: Promote respect for our
collaborators’ lives in all of our
processes, operations, and
activities.
Industriousness: Exhibit a
passion for our work, doing our
best, and acting efficiently,
safely, and responsibly.
Honesty: Act straightforwardly and
honestly, without lying, deceiving,
or omitting the truth.
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, culture, and rights.
Transparency: Be truthful, clear,
prompt, and unambiguous in all of
our communications and actions.
14
MEMORIA ANUAL 2017
We have incorporated
safety
as one of the core values
present in all of our
activities
2017 ANNUAL REPORT 15
STRATEGIC
MAP
Value
Tambomayo
Orcopampa
La Zanja
Coimolache
Yanacocha
ORO
Uchucchacua -Mallay
Julcani
OPERATIONS
Safety
Personnel
Management
Social Mgmt.
Environmental
Management
Technology &
Innovation
Energy
Communications
t
r
o
p
p
u
S
El Brocal
Cerro Verde
BASE
METALS
San Gabriel
Quecher Main
SILVER
GOLD
Main Office
Yumpaq
SILVER
BASE
METALS
PROJECTS
El Faique
Trapiche
San Gregorio
Marcapunta Norte-Sur
Yanacocha Sulfides
Coimolache Sulfides
16
2017 ANNUAL REPORT
2017 ANNUAL REPORT 17
OPERATIONS
During 2017, Compañía de Minas Buenaventura
S.A.A. operated nine mining units, of which six are
underground
(Orcopampa, Uchucchacua, Julcani,
Tambomayo, Mallay, and Marcapunta) and three are
open-pit (La Zanja, Coimolache, and Tajo Norte).
During the year in review, the mines operated by
Buenaventura processed 5,016,298 DMT of minerals
from its underground mines and 26,982,137 DMT from
the open-pit mines (see Table 1). The Company
achieved a total cumulative production of 557,100
ounces of gold, 27,425,373 ounces of silver, 44,976
FMT of lead, 74,560 FMT of zinc, and 45,289 FMT of
copper.
TAMBOMAYO
(100% BVN)
Tambomayo is an epithermal deposit with quartz veins
and mineralization, mainly gold-silver, with significant
lead and zinc content. The mining unit is located in the
Province of Caylloma, in the Region of Arequipa.
In 2017,
it processed 332,193 DMT, with 8.50
ounces/ton of silver, 0.225 ounces/ton of gold (6.987
g/t), 1.72% lead, and 2.35% zinc, recovering 1,788,219
ounces of silver, 64,175 ounces of gold, 2,070 FMT of
lead, and 2,906 FMT of zinc. The annual average cash
cost was US$ 553/ounce of silver (see Table 1).
As of December 31, 2017, total mineral reserves at
Tambomayo have been evaluated at 1,898,280 DMT,
with 0.282 ounces/tons of gold, 9.83 ounces/tons of
silver, 1.25% lead, and 2.50% zinc, which represents
534,561 ounces of gold, 18’653,000 ounces of silver,
23,720 MT of lead, and 47,508 MT of zinc (see Table 2).
The mining works in the principal vein, known as Mirtha,
and the diamond drill holes drilled to date show
economic mineralization up to around 4,300 masl,
which tentatively sizes the economic mineralization up
to a depth of about 650 meters. Levels beneath 4,540
are being explored and developed using a ramp
currently underway, having reached a depth of 4,340 at
present.
As of December 31, 2017,
total mineral reserves at
Tambomayo have been
evaluated at
1,898,280
The measured and indicated resources total 584,147
DMT, with 0.216 ounces/tons of gold, 9.13 ounces/tons of
silver, 1.24% lead, and 2.16% zinc, which represent
164,498 ounces of gold, 5,333,799 ounces of silver,
7,226 MT of lead, and 12,641 MT of zinc.
DMT
MEMORIA ANUAL 2017
19
OPERATIONS
During 2017, a total of 3,866 meters of underground
work was carried out. At level 4,540, this work was
focused on continuing explorations toward the west and
east ends of the Mirtha vein, as well as the exploration
of the Esperanza vein and its branches, strategically
locating diamond drilling cabs that explored the areas
of the Catalina, Soledad, and Fátima veins.
For 2018, the main objective is to obtain more resources,
intensifying exploration using diamond drill holes
between levels 4,840 and 4,340, primarily in the areas of
Fátima (Fátima vein), Soledad (Soledad 1 and 2), Mirtha
Sureste (Esperanza, Claudia, Ángela), Mirtha Oeste, and
the Central Area (at greater depth); and to explore the
veins’ prolongation at depths below level 4,340.
At level 4,340, on the other hand, work continued on the
exploration of the Paola, Paola Techo, Paola Techo Norte,
and Paola Norte veins and their branches. Diamond drill
cabs were also prepared to continue evaluating the
aforementioned veins below level 4,340.
The Tambomayo processing plant
satisfactorily
concluded the ramp-up process, and has been operating
at its maximum capacity of 1,500 MTD since August
2017. Tambomayo has thus become a major commercial
operation for Buenaventura, with an expected production
of 110,000 to 130,000 ounces of gold in 2018.
The diamond drilling campaign executed a total of
29,683 meters of diamond drill holes, with the objective
of improving the certainty of our mineral resources and
evaluating the continuity of the Mirtha, Paola, Paola
Techo, Paola Norte, Paola Techo Norte, Susy, Esperanza,
Fátima, and Catalina vines below levels 4,540 and 4,440 in
the direction of the inferred and potential resources,
which will continue during 2018.
20 MEMORIA ANUAL 2017
During 2017, a total of
3,866
meters of underground
works were carried out
at Tambomayo
MEMORIA ANUAL 2017
21
OPERATIONS
ORCOPAMPA
(100% BVN)
In the Pucará Sur area, the most important exploration
finding was the paystreak of the Pucara Sur vein, where
high-grade
reserves were gained. The current
exploration of it using mining work and diamond drill
holes is focused on level 3,540, toward its east and west
ends.
During 2018, the plan is to continue with diamond
drilling until the upper levels of 3,690 and 3,740, where
evidence suggests probable deposits with gold
mineralization in the vein at these levels. In this same
area, the exploration of the Ariana vein, as surveyed last
year, remains pending. This vein shows strong signs of
gold and silver mineralization, and exhibits the same
favorable structural control as the major Nazareno and
Pucará veins.
Exploration of the Pucarina and Pucará Sur veins has
begun at level 3,340. These veins have shown short,
mineralized stretches with a high grade of gold and
silver during the development of work there.
At the Orcopampa Unit, located in the Province of
Castilla, Arequipa, a total of 500,580 DMT of ore from the
Chipmo mine was processed and treated, with 0.382
ounces/ton of gold and 1.22 ounces/ton of silver,
recovering 190,976 ounces of gold and 528,449 ounces
of silver in doré bars. The cash cost was US$ 744/ounce
of gold.
this operation, as of
The mineral reserves of
December 31, 2017, totaled 851,166 DMT, with 0.459
ounces/tons of gold (14.29 g/t) and 1.23 ounces/tons of
silver, which represent a content of 391,110 ounces of
gold and 1,046,369 ounces of silver (see Table 2).
The indicated mineral resources of the unit, as of the
end of the year, totaled 204,622 DMT, with 0.372
ounces/tons of gold and 1.11 ounces/tons of silver, which
represent 76,218 ounces of gold and 227,573 ounces of
silver (see Table 4).
Over the course of the year, a total of 12,540 meters of
underground exploration works were carried out. An
additional 67,922 meters of diamond drill holes were
drilled, mainly focused on the exploration of the Pucará
Sur, Pucarina, Nazareno, Ariana, Lucía-Julissa, Lucía
Centro, Esperanza, and Prometida R1 vein systems.
22 MEMORIA ANUAL 2017
Orcopampa
In the Nazareno zone, the Nazareno, Prosperidad, and
Andrea veins were explored at the upper levels of the
mine, primarily at level 3,690. The exploration of these
three veins at levels 3,740, 3,690, and 3640 resulted in
78,000 DMT of reserves with high grades of gold and
silver, for which reason their exploration will continue
toward the east and west at level 3,540. Additionally, the
Lucy Piso vein will be explored as part of the system of
veins to the north of the Nazareno vein.
In the area of Prometida, the main finding was the
Alondra vein, a structure controlled by the Prometida R1
fault, with widths of up to 2 meters. Exploration has been
conducted, with positive results, between levels 3,540
and 3490, with galleries and diamond drill holes. The
exploration plan for 2018 includes diamond drill holes at
the east and west ends.
In Orcopampa, a total of
500,580
DMT of ore from the Chipmo mine
was processed and treated
MEMORIA ANUAL 2017
23
OPERATIONS
Minera La Zanja S.R.L.
(53.06% BVN)
Minera La Zanja S.R.L., a subsidiary of
Buenaventura, is located in the District of Pulán,
Province of Santa Cruz, 107 kilometers northwest of the
city of Cajamarca.
In 2017, operations were focused on the Pampa Verde
Pit, working between levels 3,384 and 3,276. In the San
Pedro Sur Pit, a lower tonnage was mined than in the
northern part, which covers the Mariella Body between
levels 3,396 and 3,294, and the area of Cecilia between
levels 3,558 and 3,504.
During the year in review, a total of 10,694,942 MT of
ore was sent to the leach pad from the Pampa Verde
and San Pedro Sur Pits, with 0.203 ounces/MT of silver
and 0.015 ounces/MT of gold, revering 280,908 ounces
of silver and 127,118 ounces of gold. The cash cost was
US$ 740/ounce of gold.
As of December 31, 2017, the minerals reserves of the
open pits totaled 10,801,144 MT, with 0.204 ounces/MT
of silver and 0.015 ounces/MT of gold, which means
2,204,306 ounces of silver and 162,751 ounces of gold.
Additionally, there is still a recoverable inventory in pads
and plant of 176,529 ounces of silver and 3,728 ounces
of gold, bringing the total reserves to 2,380,835 ounces
of silver and 166,479 ounces of gold.
The measured and indicated mineral resources in
oxides total 7,287,031 MT, with 0.215 ounces/MT of
silver and 0.015 ounces/MT of gold, which represent
1,564,522 ounces of silver and 110,553 ounces of gold.
In 2017, a total of 6,031 meters of exploratory diamond
drill holes were drilled in Pampa Verde and San Pedro
Sur. An additional 3,719 meters of exploratory diamond
drill holes were drilled in the area of
24 MEMORIA ANUAL 2017
La Zanja
bodies with
Casablanca (Lastre). Another 3,069 meters of diamond
drill holes were drilled in the Emperatriz Project,
discovering
copper”
(chalcopyrite, bornite), and the Corredor de Domos and
Luciana prospected were developed, encountering
prospective areas with gold and silver that will be
evaluated at a later date through drilling.
“peacock
Finally, we have decided to modify the production plan
at La Zanja to extend its useful life through 2019. This will
allow us to develop the new exploration projects at
Luciana (gold) and Emperatriz (copper).
At La Zanja, a total of
10,694,942
MT of ore was sent to the leach pad
MEMORIA ANUAL 2017
25
OPERATIONS
Compañía Minera Coimolache S.A.
(40.095% BVN)
is an affiliate
Compañía Minera Coimolache S.A.
managed by Buenaventura.
the
Tantahuatay Mine, located in the District of Hualgayoc,
in the province of the same name, 50 kilometers to the
north of the city of Cajamarca.
It operates
During 2017, mining was performed at
the
Tantahuatay 2 and Ciénaga Norte Pits between levels
3,852 and 3,996, and between 3,924 and 3,996,
respectively.
A total of 13,117,287 DMT of oxidized ore was sent to
the leach pad, with grades of 0.015 ounces/tons of gold
(0.456 g/t) and 0.395 ounces/tons of silver (12.298 g/t).
Fine metals production totaled 151,454 ounces of gold
and 800,942 ounces of silver. The annual average cash
cost came to US$ 385/ounce of gold.
focused on
Drilling in oxides totaled 8,724.95 meters of diamond
the operating areas of
drill holes,
Tantahuatay 2 and Ciénaga Norte, and on the Mirador
Norte and Mirador Sur Projects. Another part of the
drilling was focused on sulfides, for a total of 20,578
meters. This drilling was performed in Tantahuatay 2—
Northwest End, along with Mirador Sur and Ciénaga
Norte.
As of December 31, 2017, the proven and probable
oxidized mineral
reserves at Tantahuatay totaled
68,099,157 DMT, with grades of 0.012 ounces/ton of
gold and 0.230 ounces/tons of silver, which represent
821,152 ounces of gold and 15,645,458 ounces of silver.
This is an estimate for the five deposits, two of which
contributed in production (Tantahuatay-2 and Ciénaga
Norte), and
the Mirador Norte, Mirador Sur, and
Tantahuatay 2—Northwest End Projects.
As of the close of 2017, there is ore remaining on the
pad, for a recoverable total of 4,836 ounces of gold y
144,908 ounces of silver.
The measured and
indicated oxidized minerals
resources as of December 31, 2017 total 51,371,140
DMT, with 0.009 ounces/ton of gold 0.243 ounces/tons of
silver, which represent 438,649 ounces of gold and
12,475,327 ounces of silver.
Construction was also completed on the metallurgical
laboratory near the M&C plant, which consists of six (6)
columns for percolation tests, a sample preparation
room, and a metallurgical test evaluation room.
26
MEMORIA ANUAL 2017
As part of the infrastructure necessary for operations
at Ciénaga Norte, construction was completed on
Organic Matter Deposit No. 2 (6.5 ha), the Inadequate
Material Deposit (5.52 ha), the Barren Material Deposit
(10.0 ha), and Contact Water Pond No. 4 – Stage 2
(15,000 m³), including environmental controls and
reclaimed slopes.
For the Tantahuatay 2 Operation, construction was
finished on Barren Material Deposit No. 2 (10.3 ha) and
Barren Material Deposit No. 3 (13.67 ha), and the leach
pad was expanded by 13.90 ha, as part of Stages II, III,
y III-A located at Hueco II; including environmental
controls and reclaimed slopes.
Special note should be made of the agreement we have
reached with Gold Fields to process the gold ore
extracted by said company
in our Tantahuatay
processing plant.
Coimolache
As of December 31, 2017,
the proven and probable
oxidized mineral reserves
totaled
68,099,157
DMT
MEMORIA ANUAL 2017
27
OPERATIONS
Minera Yanacocha S.R.L.
(43.65% BVN)
Yanacocha is operated by Newmont Mining, and is
located 20 km to the northeast of the city of Cajamarca.
Gold production in 2017 came to 535,000 ounces,
compared to 655,000 ounces in 2016. Silver production
totaled 1.039 million ounces, compared to 457,000
ounces in 2016. During 2017, the gold mill processed
5.1 million dry metric tons, with a grade of 2.08 grams
per ton and a gold recovery of 71.7%, obtaining a gold
production of 239,000 ounces, compared to 330,000
ounces in 2016, with a registered gold recovery of
75.6%. The lower production in the gold mill was due to
the lower tonnage processed (5.1 million vs. 5.3 million
in 2016), the lower grade fed into the mill, the higher
content of soluble copper, and the lower recovery
compared to 2016. The ore discharged in the leach pads
in 2017 totaled 21.8 million dry metric tons, which was
lower than the 27.8 million tons deposited in 2016, due
to the fact that no mining was done at Cerro Negro and
Marleny, as well as the lower ore extraction at
Yanacocha, partially offset by the higher ore extraction
at La Quinua Sur and Tapado Oeste Layback compared
to 2016, making for a gold production of 296,000
ounces, compared to 325,000 ounces in 2016.
Yanacocha’s CAPEX in 2017 totaled US$ 51.3 million.
The main capital expenditures included the construction
of access routes at Quecher, the construction of the
north
tailings dam, acquisition of equipment
components, etc. Minera Yanacocha predicts that its
capital expenditures for 2018 will total approximately
US$ 123 million, of which it plans to use approximately
US$ 97 million for the construction of the leach pad for
the Quecher Project. In 2017, a total of 24,687 meters
were drilled at Chaquicocha for exploration purposes.
Additionally, the diagnostic and design stage was
finished for the Yanacocha Transformation Project.
The proven and probable reserves of Minera Yanacocha
as of December 31, 2017 totaled 3.8 million ounces of
gold and 49.9 million ounces of silver. As of December
31, 2017, resources totaled 9.8 million ounces of gold,
75.5 million ounces of silver, and 0.658 million MT of
copper.
The Quecher Main Project is the bridge that will ensure
the continuity of operations at Yanacocha, contributing
1.3 million ounces of gold. It consists of two leach
pads—Carachugo 11, with an area of 5 ha; and
Carachugo 14, with an area of 57 ha—a pumping
station, an operating pond and a storm events pond, an
28 MEMORIA ANUAL 2017
open pit, and the related mine development works. It will
be under construction for six (6) years, and is scheduled
to remain in operation until 2027. The year 2017 began
with the preliminary works, including the construction of
the haulage road for giant dump trucks. This year will
see the continuation of work on the foundations of the
Carachugo 14 leach pad and the delivery of Carachugo
11 for operation. The Yanacocha Sulfides Project is
located within the current operating area, and consists
of the processing of sulfide ore for the production of
copper and gold, which is expected to substantially
lengthen the life of the mine. In 2017, the second
long—was
tunnel—measuring 420 m
exploration
completed with the purpose of exploring the oxides
area to the south of Chaquicocha. The tunnel was
completed without accidents, on schedule, and in
accordance with planned costs. During 2018, the
exploration tunnel will be extended and completed,
running to the northwest of Chaquicocha for a length of
930 m. The
the drilling and
metallurgical testing will also be obtained in 2018,
allowing us to evaluate the mineral potential in these
zones. The prefeasibility studies for the Yanacocha
Sulfides Project were also finished. In the first quarter of
2018, the prefeasibility stage will be concluded and
followed up by the development of the project’s
feasibility.
initial results
from
its processing
During 2017, Minera Yanacocha continued to maintain
and improve its Environmental Management System,
certified under ISO 14001:2015 and ISO 17025
standards for its quality control and environmental
assurance laboratory; and under the Cyanide Code
for
Improvements were
facilities.
focused on reducing water use in its operations;
optimizing water discharge in line with its focus on
optimizing waste
basins
management; and operational improvements in cyanide
management at its processing facilities. This enabled it
to efficiently comply with it environmental management
of water, air, emissions, and biodiversity, as well as its
environmental and legal commitments.
needs;
social
and
MEMORIA ANUAL 2017
29
OPERATIONS
Uchucchacua
(100% BVN)
The Uchucchacua Mine is located in the District of Oyón,
Province of Oyón, Region of Lima.
is an
underground operation that produces silver, lead, and
zinc.
It
Ore treatment for 2017 totaled 1,364,478 DMT, with
14.73 ounces/tons of silver, 1.36% lead, and 1.80% zinc
from the Socorro, Carmen, Casualidad, and Huantajalla
Mines. A total of 16,583,698 ounces of silver, 16,708
FMT of lead, and 13,040 FMT of zinc were obtained. The
annual average cash cost for 2017 was US$ 11.18/ ounce
of silver.
The mineral reserves of Uchucchacua, as of December
31, 2017, totaled 4,893,597 DMT, with 13.21 ounces/ton
of silver, 1.32% lead, 2.18% zinc, and 7.59% manganese,
representing contents of 64,639,805 ounces of silver,
64,646 MT of lead, and 106,605 MT of zinc (see Table 2).
The mine’s measured and indicated resources total
3,243,840 DMT, with 14.95 ounces/tons of silver, 1.15%
lead, 2.11% zinc, and 9.14% manganese, which
represents 48,488,655 ounces of silver, 37,181 MT of
lead, and 68,597 MT of zinc (see Table 4).
Explorations resulted in 13,916 meters of mine works
and 71,289 meters of diamond drill holes, mainly
concentrated in the Socorro Mine on the Gina-Socorro,
Socorro 3, and Cachipampa Veins, where the greatest
gains in reserves were reported. In the Huantajalla,
Carmen, and Casualidad Mines, explorations were
focused on the Sandra, Jaqueline, Violeta, 7-A, and
Marcia Veins, which are characterized by widths less
than or equal to one meter, but with high silver contents.
New structures developed this year in this area include
the Cachipampa 1, 2, 3, and 4, Arlet, and Marcia 1 Veins.
As part of the deepening of the Socorro Mine, the Luz
Shaft reached a level of 3,707.70 masl, and the main
extraction level of 3,850 operated normally throughout
2017. Access Ramp 626-1 reached a level of 3,512.90
masl, while Ramp 626-2 reached 3,544 masl, for a total
of 194.80 and 163.70 m, respectively, below the level
reached by the Luz Shaft. These works will primarily
help in preparing the calculation of the reserves volume
30 MEMORIA ANUAL 2017
in the Socorro Bajo Mine between Levels 3,710 and
3,510 (Ramp 626-1) and intensifying explorations at the
northeast end of the Socorro Bajo Mine (Ramp 626-2).
Operating improvements were made at the processing
plant, most importantly the streamlining of the milling
stages (milling load) and the streamlining of the closed
secondary crushing circuit (Circuit II), making it possible
to increase the treatment tonnage to 1,100 DMTD (March
16, 2017), and then 1,140 DMTD (August 3, 2017). Starting
on September 1, the tonnage was increased to 1,190
DMTD, making for a consolidated daily treatment
tonnage of 4,000 DMTD (2,810 DMTD in Circuit I; and
1,190 DMTD in Circuit II). Additionally, a design change
was made to the outlets of the 15.5’ x 11’ SAG mill, thus
allowing us to increase the treatment tonnage in this
stage.
Uchucchacua
As of December 31,
mineral reserves
totaled
4,893,597
DMT
MEMORIA ANUAL 2017
31
OPERATIONS
Mallay
(100% BVN)
The Mallay Mine, located in the Province of Oyón, in the
highlands north of Lima, treated a total of 170,519 DMT
in its processing plant, with 7.19 ounces/tons of silver,
2.70% lead, and 4.73% zinc, recovering 1,109,382
ounces of silver, 4,061 FMT of lead, and 7,102 FMT of zinc.
The annual average cash cost came to US$ 10.61/ ounce
of silver (see Table 1).
In 2017, a total of 3,942 meters of mining exploration
and development works were performed, along with
20,058 meters of diamond drill holes, which were
focused on the structures of the Isguiz Vein/Body, and
the veins of the María, Dana, Denisse, and Maricruz
systems.
The mineral reserves as of December 31, 2017 totaled
192,890 DMT, with 6.45 ounces/tons of silver, 3.58%
lead, and 7.55% zinc, representing 1,243,932 ounces of
silver, 6,907 MT of lead, and 14,557 MT of zinc (see
Table 2), contained in the Isguiz Body and the María,
Dana, Denisse, and Maricruz Vein systems.
The measured and indicated mineral resources totaled
6,762 DMT, with 7.37 ounces/tons of silver, 2.23% lead,
and 3.42% zinc, which contain 49,836 ounces of silver,
151 MT of lead, and 231 MT of zinc (see Table 4).
32 MEMORIA ANUAL 2017
The diamond drill holes drilled totaled 20,058 meters in
2017, primarily below Level 4,090. This has helped
increase the certainty of the mineral identified in 2016,
defining mineral resources of silver, lead, and zinc,
especially in the Isguiz Clavo 3 Vein, with greater
thicknesses than those observed at higher levels.
that
The deepening project is on standby due to the
flooded Ramp 400 and
presence of water
prevented the establishment of Level 4,030. However,
an auxiliary ramp (Ramp 1282) has been implemented
between Bodies 6 and 2 of the Isguiz Vein, reaching a
depth of 45 meters below Level 4,090 and providing an
alternative for the efforts to begin preparing said bodies,
including the María and Maricruz Veins. Approximately
40 l/sec. of water was gaged at Ramp 1282, which is
leaking from Ramp 400. Additionally, 5 piezometers
were installed in the area of Bodies 6, 2, and 3 of the
Isguiz Vein, in addition to those already existing, in order
to monitor the presence of water at depth.
During 2017, the decision was made to prioritize the
mineral from Uchucchacua, in order to improve the
Company’s profitability. This decision explains the drop
in annual production at Mallay.
Mallay treated
170,519
DMT at its processing plant
Mallay
MEMORIA ANUAL 2017
33
OPERATIONS
Sociedad Minera El Brocal S.A.A.
(61.43% BVN)
Sociedad Minera El Brocal S.A.A. operates the
Colquijirca Mine in the Province and Region of Cerro de
Pasco, 15 km south of the city of the same name, in one
of the oldest and most prolific mining districts in Peru. It
currently exploits zinc, lead, and silver ore in the Tajo
Norte open pit, and copper ore in the Marcapunta Norte
underground mine. The minerals from both zones are
treated in Concentrating Plants 1 and 2 at Huaraucaca.
During 2017, a total of 3,169,908 DMT of lead and zinc
was treated, recovering 3,031,796 ounces of silver,
20,313 MT of lead, and 51,511 MT of zinc. Additionally,
2,517,673 DMT of copper ore was treated, recovering
1,052,453 ounces of silver, 22,536 ounces of gold, and
45,097 MT of copper. The operation achieved an
average daily treatment volume of 15,600 dry metric
tons (see Table 1).
The financial results show a positive change in the main
performance indicators. Net sales totaled US$ 323.9
million, a growth of 40% over 2016 as a consequence
of better average prices for lead, zinc, and copper, as
well as the increase in fines produced and sold
compared to
34 MEMORIA ANUAL 2017
the previous year. Production costs, before depreciation
or amortization, rose by 26%, mainly due to a higher
clearing rate at Tajo Norte and an increase in the
the works at Marcapunta. After
progress rate of
depreciation and amortization and
financial
expenses associated with the leaseback agreement
with BCP, the results showed an annual net profit of US$
11.7 million, representing an increase of US$ 44.4
million over 2016 (US$ -32.8 million).
the
In 2017, work was concluded on the synergy project
with Buenaventura. Special note should be made of
the transfer of all support functions, such as the
Legal, Permits, and Securities Areas, among others.
The challenges for 2018 will be mainly centered on
optimizing the mining method at Marcapunta; achieving
the optimization of productivity and production costs;
to
and accelerating
reserves. Of course, we will not neglect our commitment
to safety,
the surrounding
communities, with programs aimed at improving their
quality of life by caring for jobs and sustainable economic
activities in the area.
the conversion of resources
the environment, and
El Brocal
Net sales totaled
US$ 323.9
million,
40% higher than in 2016
MEMORIA ANUAL 2017
35
OPERATIONS
Sociedad Minera
Cerro Verde S.A.A.
(19.58% BVN)
The Cerro Verde Mine
is operated by Freeport–
McMoRan, and is located 30 km southwest of the city of
Arequipa, in the Districts of Uchumayo and Yarabamba.
Investments
in capital
totaled US$ 171.6 million
projects, compared to US$ 153.5 million invested in
2016.
Since 2009, Cerro Verde has been involved in a dispute
with the tax authority over the collection of royalties for
December 2006 and subsequent periods through
December 31, 2012. Fiscal year 2013 is currently being
audited. For December 2006, 2007, and 2008, Cerro
Verde is currently paying the royalties determined by
SUNAT in installments, under protest. Cerro Verde
argues that it was not subject to these payments,
according to the stability agreement entered into in 1998
with the Peruvian State. Nevertheless, Cerro Verde has
continued to act in good faith at all times, and is currently
evaluating other alternatives for the defense of its rights.
During 2017, it processed 131.4 million DMT via
flotation, which compares favorably to the 129.3 million
DMT produced in 2016, with a head grade of 0.435%
copper, producing 2.007 million DMT of copper
concentrates with an average head grade of 23%
copper and a recovery of 81.2%. In total, this mining unit
produced 980.030 million pounds of copper, 27.341
million pounds of molybdenum, and 3.81 million ounces
of silver contained in the concentrates. Additionally, a
total of 82.18 million pounds of copper was produced in
the form of cathodes.
The cash cost was US$ 1.510 per pound of copper, and
the total cost was US$ 1.799 per pound of copper
produced.
In 2017, sales totaled US$ 3.203 billion, achieving a net
profit of US$ 349.9 million. The long-term debt was
reduced from US$ 1.996 billion to US$ 1.268 billion.
36
MEMORIA ANUAL 2017
In 2017, Cerro Verde reported net profits of
US$ 349.9
million
MEMORIA ANUAL 2017
37
PROJECTS
In 2017, we implemented the project methodology
described in Project Management for Mining: Handbook
for Delivering Project Success (2015) by Terry L. Owen
and Robin J. Hickson. Mr. Owen acted as our advisor
during the implementation and follow-up process.
The objective of this initiative is to reduce the risk
inherent in these types of projects, in a structured and
disciplined manner, thus minimizing the exposure of our
upcoming investments to the new dimension of our
projects.
Along these lines, we have defined the following phases
or stages of maturity for our projects:
» Conceptual Phase: Begun several months before
finishing the advanced exploration of the deposit
(definition of resources), this phase seeks to
determine the appropriate business case for the
development of the future mining unit, achieving an
order of magnitude in the range of +100% to -50%
for the development of a mostly inferred resource,
with an engineering development level on the order
of 2%.
38
2017 ANNUAL REPORT
field data
» Prefeasibility Phase: Aimed at collecting
to decide among
necessary
the
different possible solutions, reducing the order of
magnitude to a range of +40% to -30% for the
development of a mostly indicated resource, with an
engineering development level in excess of 7%.
the
to
» Feasibility Phase: Aimed at developing
firming up
the
alternatives selected in the previous step with a
view
the basic engineering,
achieving an order of magnitude of +25% to -20%
for the development of an 80% measured/indicated
resource, with an engineering development level of
over 20%. The project’s feasibility is confirmed in
this stage.
» Development Phase: Aimed at developing
the
its
that will accompany
the project
controls
implementation, achieving an
throughout
order of magnitude of +12% to -10% for the
development of a 100% measured/indicated
resource, with an engineering development level in
excess of 70%.
During the second half of 2017, we proceeded to
evaluate the projects in our portfolio, identifying any
gaps with regard to the selected methodology, in order
to then recategorize them as necessary, and ultimately
define a plan of action to fill in any gaps identified and
meet the new benchmarks.
2017 ANNUAL REPORT 39
PROJECTS
I. Projects in the Conceptual Phase
Proyecto San Gabriel
(100% BVN)
The San Gabriel project is an intermediate sulfidation
epithermal deposit with gold, copper, and silver metal
contents, located in the Province of General Sánchez
Cerro, in the Moquegua Region.
is
The project’s social situation
favorable, as
demonstrated by the approval of the detailed EIA on
March 31, 2017, on which we will continue working,
progressively and reciprocally, throughout the life of the
project.
The measured and indicated mineral resources totaled
7,676,748 DMT, with 0.23 ounces/ton of silver, 0.184
ounces/tons of gold, and 0.06% copper, representing
1,415,684 ounces of gold, 1,728,904 ounces of silver,
and 4,401 FMT of copper (see Table 4).
The inferred mineral resources totaled 5,530,961 DMT,
with 0.23 ounces/ton of silver, 0.148 ounces/tons of gold,
and 0.06% copper, representing 786,638 ounces of gold,
1,234,460 ounces of silver, and 3,108 FMT of copper.
The total mineral resources (measured, indicated, and
inferred resources) calculated as of the end of 2017 total
13,007,709 DMT, with 0.17 ounces/tons of gold, 0.23
ounces/tons of silver, and 0.06% copper, representing
2,202,322 ounces of gold, 2,963,365 ounces of silver,
and 7,509 FMT of copper.
For 2018, we plan to continue with a second drilling
campaign, aimed at increasing the current mineral
resources with the inclusion of the San Gabriel Norte
Body, while beginning
the basic
engineering in order to demonstrate the project’s
feasibility by early 2019.
to develop
The inferred mineral resources at
San Gabriel totaled
5,530,961
DMT
40 MEMORIA ANUAL 2017
Trapiche Project - El Molle Verde SAC
(100% BVN)
The Trapiche project is a copper and molybdenum
porphyry from the Oligocene Epoch located on the
southwestern edge of the Andahuaylas-Yauri belt, in
the Province of Antabamba, in the Apurimac Region.
During 2017, we worked together with the community
to supplement the existing easement agreement for
for the project, achieving
the
significant progress.
lands necessary
Conceptually, the Trapiche Project involves an initial
copper leaching operation, working at a pace of 45,000 tons
per day.
In 2018, we will focus on conducting the project’s
prefeasibility, with a view to evaluating the exploitation
of the minable resources.
For this leaching scenario, the minable resources have
been estimated at 290,416,144 DMT, with a grade of
0.51% copper, representing 1,469,014 MT of contents
and 1,057,690 FMT of copper, with an average
metallurgical recovery of 72%. Acid consumption is
approximately 7.5 kg/t, and the irrigation cycle is 200
days.
As of December 2017, the total resources of Trapiche
have been revised and updated. This revision is
reported based on the standards defined by the
Canadian
Institute of Mining, Metallurgy, and
Petroleum (CIM), as per Standard NI 43-101. The
estimated measured and indicated mineral resources
total 868,300,000 DMT, with a copper grade of 0.37 %,
representing 3,247,458 MT of copper. The inferred
mineral resources total 44,400,000 DMT, with 0.30%
copper, representing 132,753 MT of copper.
Conceptually, the Trapiche
Project is based on an initial
copper leaching operation,
working at a pace of
45,000
tons per day
MEMORIA ANUAL 2017
41
PROJECTS
II. Projects Pending
Entry into the
Conceptual Phase
Yumpaq Project (100% BVN)
El Faique Project (100% BVN)
The Yumpaq Project is located 5 kilometers from our
Uchucchacua Mine, and consists of a system of
intermediate sulfidation veins
running primarily
northeast, in tension with the Cachipampa Fault, which
controls the mineralization at Uchucchacua. We have not
yet determined whether Yumpaq will be a separate
operation from Uchucchacua, or an add-on to said mine.
During 2017, we began the process of defining
resources through underground works. The plan for
2018 is to continue defining resources and complete the
conceptual phase by the final quarter of the year.
San Gregorio Project - Sociedad Minera
El Brocal (61.43% BVN)
The San Gregorio Project is a massive zinc deposit, and
a continuation of the mineralization in our operations at
El Brocal, located in the District of Colquijirca, in the
Pasco Region.
foster positive
During 2017, we continued
community relations. For 2018, we will continue to
work on identifying gaps to adapt our information to the
new project management model.
to
42 MEMORIA ANUAL 2017
The El Faique is a volcanogenic massive sulfide (VMS)
ore deposit hosted in the Mesozoic basin of Lacones,
located in the Province of Tambogrande, in the Piura
Region.
During 2017, we continued to work on community
relations, where we will also focus our efforts in 2018,
in parallel with the identification of gaps so we can
adapt our
the new project
management model.
information
to
Coimolache Sulfides Project - Compañía
Minera Coimolache S.A. (40.95% BVN)
The Coimolache Sulfides Project consists of an
epithermal arsenical copper mineralization covering
an area of 2.0 by 2.0 km, and enriched copper
located beneath the oxidized area of the Coimolache
Mine.
The works carried out in 2017 were focused on defining
the resources. The plan for 2018 is to finish drilling and
conclude the project’s conceptual phase by the end of
the year.
Our projects were carried out in
four phases: Conceptual,
Prefeasibility, Feasibility, and
Development
MEMORIA ANUAL 2017
43
OTHER
BUSINESS
DEALINGS
Procesadora Industrial Río Seco S.A.
(100% BVN)
Río Seco is located in the Province of Huaral,
Department of Lima, 102 kilometers to the north of the
city of Lima. This chemical industrial plant commenced
operations in January 2014 for the production of
manganese sulfate monohydrate from the lead-silver-
manganese concentrates from the Uchucchacua Mine.
During 2017, the acid wash plant treated 32,435 DMT of
concentrate from Uchucchacua, with grades of 129.4
ounces/ton of silver, 10.9% lead, and 25.7% manganese.
After acid washing, the new concentrate grades were as
follows:
DMT
Ag
Pb
Mn
oz./DMT
%
%
Concentrate from Mine
Washed Concentrate
32,435.3
19,862.9
129.4
210.4
10.9
17.8
25.7
3.4
44 MEMORIA ANUAL 2017
The sulfuric acid plant produced 17,014 MT of sulfuric
acid with a purity of 98%. This plant uses wet sulfuric acid
(WSA) technology, which is clean and environmentally
friendly. Of the total sulfuric acid, 52.8% was produced
through sulfur smelting, and 47.2% was from the H2S
gases produced in the acid wash plant.
The crystallization plant produced 21,402 DMT of
manganese sulfate monohydrate. The manganese
sulfate production is shown in the following table:
Spin Flash Dryer
Spray Dryer
13,882.0
7,520.0
Total
21,402.0
and
Research
Buenaventura’s
Technological
Innovation Center is located on the same premises as
the facilities of Río Seco. The Center includes a pilot
plant used to perform research into the development
of an industrial process for the production of cathodic
copper using copper concentrates with enargite from
El Brocal.
The first stage in this development consisted of a batch
operation in the process, where the laboratory results
were verified. The operating variables were then fine-
tuned until ensuring the replicability of the process and
establishing optimal conditions. The second stage
consisted of a continuous operating circuit until finally
obtaining a product and handling the solutions. This
the BVN Process with
pilot plant
hydrometallurgical operations, such as extraction using
solvents and electrowinning, where copper cathodes
were obtained with a 99.999% purity.
integrates
The project’s feasibility includes the exploitation of
waste and an efficient management of effluents with
economic value.
Río Seco works based on the highest environmental
safety standards, in constant coordination with the
communities of Huaral and Sayán, the Lachay National
Reserve, the Municipality of Huaral, and the Municipality
of Chancay, with which it carries out a participative
environmental monitoring program in the area.
MEMORIA ANUAL 2017
45
OTHER
BUSINESS
DEALINGS
The company renewed its registration in the National
Suppliers’ Registry, which will allow BISA to participate
in bidding contests for the engineering and supervision
of public infrastructure projects.
Sales in 2017 totaled
US$ 11
million
compared to US$ 13 million in
2016
Buenaventura Ingenieros S.A. (BISA)
(100% BVN)
In 2017, BISA’s sales totaled US$ 11 million, compared
to US$ 13 million reported in 2016. The recovery of
metal prices did not result in a higher demand for mining
services, and the expected rebound of infrastructure
investments did not happen in 2017. Nevertheless,
thanks to the hard work done to diversify the client
portfolio, services rendered
the industrial and
infrastructure sectors accounts for 19% of the year’s
sales (compared to 13% in 2016).
to
Administrative expenses dropped from US$ 4.5 to US$
3.6 million in 2017, and are expected to decrease further
in 2018.
In terms of operations, the impact of fixed costs was
reduced, making operating costs viable through specific
contracts on a project-by-project basis and
the
outsourcing of certain services.
The sale of seven floors of office space in a building in
Surco was completed, thus making it possible to pay off
all the company’s long-term obligations. Additionally,
BISA Construcción (BICO) was closed down, meaning
that the financial statements exclusively reflect the
activity of BISA.
46 MEMORIA ANUAL 2017
Consorcio Energético de Huancavelica S.A.
(CONENHUA) (100% BVN)
Consorcio Energético de Huancavelica S.A. has now
been in business for 32 years. In 2017, it operated
479.45 km of transmission lines: 59.90 km at 22.9 kV;
14.80 km at 33 kV; 104.32 km at 60 kV; 152.46 km at
138 kV; and 147.97 km at 220 kV, covering operations
in Cajamarca, Huancavelica, Arequipa, Cerro de Pasco,
and Lima.
It is also in charge of operating eight VHV/HV
substations: two 220 kV substations, three 138 kV
substations, and three 60 kV substations.
During 2017, there were a total of 193.31 hours of
interruptions, as follows:
Voltage Level
External Failure
(Hours)
Internal Failure
(Hours)
Maintenance
(Hours)
Total
(Hours)
33 kV
60 kV
138 kV
220 kV
Total
1.49
---
2.94
---
1.96
---
2.14
2.31
1.34
3.48
9.38
10.35
29.95
97.04
123.96
10.87
12.49
8.06
98.38
129.8
MEMORIA ANUAL 2017
47
OTHER
BUSINESS
DEALINGS
carried out
At the request of Compañía Minera Coimolache (CMC),
the company
the engineering and
construction for the expansion of the Cerro Corona 220
kV substation, with the installation of a new 220/60/22.9
kV - 40 MVA transformer to increase the supply capacity
to meet the electricity demand from CMC.
The consolidated economic results of the Consorcio
Energético de Huancavelica reported total operating
revenues of US$ 60.5 million, an operating profit of US$
22.0 million, and a net profit after income tax of US$ 8.6
million.
Aside from that, in October, Concesionaria CCNCM
commissioned the two new cells for the Carhuaquero
– Cajamarca Norte and Cajamarca Norte – Cáclic lines
at the Cajamarca Norte Substation, thus expanding and
reinforcing the electricity system in the northern part of
the country.
The consolidated economic
results of the Consorcio
Energético
de
reported
Huancavelica
total operating revenues of
In terms of hydroelectric power plants, Empresa de
Generación Huanza continued to improve its facilities
and electromechanical equipment, achieving a
generator availability in excess of 92% and generating
489.29 GWh.
The small hydroelectric power plants, Huapa and
Ingenio, generated a total of 13.38 GWh during the year,
to the benefit of Buenaventura’s operations.
US$ 60.5
million
48
2017 ANNUAL REPORT
2017 ANNUAL REPORT 49
More than a set
of
standards or
procedures, safety
is one of our core
values
SAFETY
50
2017 ANNUAL REPORT
For Buenaventura, safety is a fundamental, cross-
cutting aspect of all
our operating and
administrative procedures, and in our day-to-day
lives. More than a set of standards or procedures,
safety is one of our core values.
During 2017, approximately 44 million man-hours were
worked, 20.5% more hours than in 2016. Unfortunately,
5 fatal accidents were reported (2 more than in 2016),
at the Uchucchacua, Julcani, and El Brocal Mines, and in
the area of direct influence (ADI) of Tambomayo. As a
result, the Incapacitating and Fatal Accident Rate was
2.01, an increase of 12% compared to 2016.
Our main safety-oriented activities included the following:
» Launch of the campaign “A Pact for Life,” aimed at
ensuring compliance with critical risk standards for
each type of operation.
» Relaunch of the Safe Conduct Observers
Program, to ensure adequate involvement and
raise awareness among all collaborators.
» Strengthening of the IBI proactive performance
indicator, aimed at preventive activities on the part
of supervisory staff.
» Reorganization of the Safety Area, to guarantee
»
adequate advisory and auditing services in the
mining units.
Increase in the frequency of internal audits and
inspections in the mining units, to better identify
hazards, assess risks, and implement controls.
We continued to work hard to achieve a “Culture of
Safety”
the
that
Buenaventura family.
the collaborators of
involves all
2017 ANNUAL REPORT 51
ENVIRONMENTAL
MANAGEMENT
As a result of our goal of
reducing freshwater
consumption through
recirculation processes, we
have now reached
96%
in open pit operations
and
77 %
in underground
operations
This year, our environmental management was aimed
at implementing best industry practices and promoting
a number of research projects to contribute to the
sustainability of our operations. As part of these efforts,
we complied with the laws in force and the commitments
we made under
the approved environmental
management instruments, the agreements we have
reached with the surrounding populations, and the
agreements entered into with different authorities. We
are currently in the process of recertifying in the
Integrated Management System (IMS) that guides our
performance, based on OHSAS 18001, ISO 9001, and
ISO 14001 international standards.
As part of our environmental policy, we prioritize the use
of clean technologies in our units and projects, and we
foster “water harvesting” by storing rainwater
to
contribute part of the water required by the surrounding
communities and our own operations. As part of our
objective of reducing freshwater consumption through
recirculation processes, we now recirculate 96% of all
water
in
underground operations. Along these same lines, in our
search for ever-increasing efficiency, we also continued
our attempts to minimize waste generation, promote
recycling, and reduce the consumption of different
inputs used for metallurgical processing.
in our open pit operations and 77%
52 MEMORIA ANUAL 2017
During 2017, we achieved 94% compliance with the
commitments made in our environmental management
instruments; and 97% compliance with our approved
environmental management plans, which form part of
force. Our Basic
the environmental studies
Environmental Performance
(BEPI), which
measures the degree of supervisor involvement, as well
as compliance with corrective and preventive measures
established in our action plans, was 91%.
in
Index
It should be noted that over the course of 2017, the
Environmental Assessment and Enforcement Agency
(OEFA) conducted 24 inspection visits to our operations,
our subsidiary companies, and our exploration projects.
Out of all of these inspection visits, a total of 27 findings
were reported, representing a rate of 1.12 findings/ visit,
compared to 0.9 findings/visit in 2016, when 53
inspection visits were made and 47 findings were
reported.
Environmental contingencies as of December 31, 2017
totaled US$1.2 million, which is higher than the
contingencies of US$ 0.8 million provided for as of
December 31, 2016. I think the explanation for the
increase should address the reasons for which this
impact may have been caused, rather than pointing out
one operation in particular, since ultimately, El Brocal is
part of Buenaventura.
2017 ANNUAL REPORT 53
ENVIRONMENTAL
MANAGEMENT
In 2017, we had a
total of 45 environmental
instruments, of which 16 are approved, 13 are currently
being processed, and 16 are still being prepared.
Formalities were performed for a total of 67 operating
permits, of which 48 have been approved, 15 are
currently being processed, and 4 are still being
prepared. We mention this aspect because it reflects the
great efforts that companies must make to meet the
growing regulations and permits under national law. This
specific aspect forced us to implement certain changes
in the organization of the environmental area so we can
more efficiently manage the permits and obligations
required by our operations.
It is of the utmost importance that we ensure the
proper management of water resources in all of our
organization’s activities. For this reason, we focus
heavily on the recirculation and reuse of water, with
an emphasis on metallurgical processes. We also
continue working to increase the efficiency of our
treatment systems to ensure the quality of our
result, during 2017, water
dumpings. As a
in open pit mining
recirculation
processes and 77%
in underground mining
processes. On the other hand, we bolstered our
participation in participative monitoring activities,
which include the participation of regional, municipal,
and community authorities.
totaled 96%
A total of 50 key participative monitoring activities were
performed (training, monitoring, dissemination of
results)
organizations
(Monitoring Committees and Groups), and 120
10 monitoring
through
54 MEMORIA ANUAL 2017
community leaders were trained. This work has helped
inspire greater trust among the residents who live near
our operations, while also building local capacities in
environmental aspects that we expect to benefit them
and serve as an example for their own local economic
activities.
In 2017, we obtained 21 authorizations for treatment
systems: 10 for industrial dumping; 7 for domestic
dumping; and 4 for drinking water systems. We also
obtained 7 water use authorizations and 6
authorizations for the performance of minor works
(hydraulic infrastructure, riverbank defenses, cleaning
of the watercourse).
the most
important processes
the
One of
development of mining projects is that of environmental
closure. Over the last year, we made significant
progress in our progressive mine closure works,
including in our subsidiaries.
in
to US$ 206,462,000
The provision for mine closures at our Operating Units
and Exploration Projects was US$ 200,183,000 for
2017, compared
in 2016.
Disbursements during 2017 totaled US$ 23,292,000,
and included revegetation programs, among others. It
is important to highlight the importance the Company
research and development of
places on
techniques
innovation projects
focused on environmental sustainability.
the
for environmental
50
participative monitoring
activities
on water
quality
MEMORIA ANUAL 2017
55
SOCIAL
MANAGEMENT
56
2017 ANNUAL REPORT
We are convinced that mining can establish itself as a
driver of change for the country and for the communities
near our projects. That change will be sustainable in
time if the community, its authorities, and the company
work together as one, striving to achieve a common
goal.
With this in mind, Buenaventura’s Social Management
has been aimed at two major objectives:
» Maintain a cordial relationship, based on trust,
with the communities in the area of influence of
our operations.
» Promote sustainable development with a view to
Shared Social Responsibility.
With a view to achieving the first objective, and as
part of our firm conviction regarding the importance
of keeping local traditions and customs alive, we
actively participate in our communities’ traditions
and activities. We also help promote activities that
allow us to remain in touch with community members
and continue to forge bonds of trust with them and
their leaders. As a result of these efforts, in 2017 we
participated
the
communities, while ourselves organizing 357 activities
with the participation of the communities.
in 295 activities organized by
Additionally, in keeping with our “open door” policy,
we have carried out 436 communication activities,
which are aimed at sharing information on our fieldwork
and clearing up any doubts the population may have.
These rapport-building and communications
tasks
include the participation of a number of people from
different areas of our company, allowing for greater
coordination in the work we do, to the benefit of
everyone else.
the Buenaventura PRA promoted 37
This year,
economic
the
and
communities, helping to articulate 4,118 local producers
and generate sales of S/ 16.1 million, thus creating a
positive impact on local household economies.
undertakings with
social
Through the Company’s Shared Social Responsibility
policy, Buenaventura is able to effectively help improve
basic services and infrastructure.
As part of our commitment to promoting the sustainable
development of the communities, we mainly seek to
help drive growth in the local economy by creating
formal jobs, hiring local companies, and strengthening
and selling local production.
We also contribute to improvements in health and
education services, as well as access to high-quality
roads, and
(water and sanitation,
infrastructure
hydraulics),
levels of
in alliance with different
government and local communities.
During 2017, 63% of the workforce hired at our units
came from the regions where we operate. We also
for
billed S/ 151.5 million with
procurements and the contracting of support services
for our operations.
local companies
At Buenaventura, we are convinced that we can
contribute to our communities’ traditional economic
activities, helping to bolster their productivity by
mentoring producers, building capacities, and fostering
business opportunities. The Buenaventura PRA is just
one example of this.
Thanks to these alliances, we have been able to help
improve the health services and infrastructure in our
units, as in the case of the annual campaign we organize
together with the Peruvian American Medical Society
(PAMS), the staff of the Public Health Network in the
province of Angaraes, doctors from the Lircay Hospital,
and students from the UDEA.
In 2017, as part of this campaign, local residents were
given access to 1,100 appointments with specialists,
including 23 surgeries for conditions such as harelip,
cleft palate,
tumors.
Improvements were also made to the infrastructure of
the Lircay Hospital, along with
the donation of
telemedicine and anesthesia equipment.
foot malformations, and
MEMORIA ANUAL 2017
57
SOCIAL MANAGEMENT
of this resource. This is what we call the “Brotherhood
of Water.”
As part of this conviction, in 2017 we aim to complete
studies and obtain financing for the performance of
comprehensive water and sanitation works in the
populated centers of Colquijirca and Nuevo Smelter in the
District of Tinyahuarco, in Pasco; the villages of La Zanja,
San Lorenzo, and Gordillos in the Districts of Pulán and
Calquis, in Cajamarca; Santa Cruz de Oyo, in the District
of Ichuña, in Moquegua; and in the Districts of
Orcopampa,
in
Huancavelica.
in Arequipa, and Ccochaccasa,
As for water infrastructure works, this year we expect
to obtain the approval of the technical files and the
financing for the Fahuarpampa Project, which will
transport 30 l/s for the irrigation of 60 ha, to the benefit
of the population of Llatica, in the District of Tapay
(Arequipa); and the Mancancota Project, which will
transport 85 l/s for the irrigation of 250 ha, to the benefit
of the population of the District of Oyón (Lima). We will
also move forward with the construction of the Huaruro
Canal, in Tapay, which will transport 250 l/s for the
irrigation of over 200 ha.
Along these same lines, the El Tingo Health Center was
inaugurated in Hualgayoc, in partnership with the
Regional Government of Cajamarca, and studies are
currently being conducted for three strategic health
establishments in Oyón (Lima), Orcopampa (Arequipa),
and Ichuña (Moquegua).
At Buenaventura, we are convinced of the importance
of education in overcoming poverty. That is why we
have continued with our goal of improving the quality of
basic education,
through our
to Grow”
("Aprender para Crecer”) and “Teach Peru” (“Enseña
Perú”) programs, which benefited over 3,000 students in
more than 80 schools in our areas of influence in 2017.
Our scholarship program, on the other hand, seeks to
offer young people more opportunities to pursue higher
education, including through the “Beca 18” program.
“Learn
In terms of environmental management, thanks to our
management and financing of the project profile and
technical file, the Municipality of Orcopampa, home to
15,000 residents, will now have a modern solid waste
treatment center funded with resources leveraged from
the Foniprel.
This year, we will also begin construction of the Pisit
High School, in the District of Tongod (Cajamarca), as
well as the paving of 22,000 m2 of roads in the District of
Oyón (Lima), through the “works in exchange for taxes”
mechanism.
At Buenaventura, we believe that mining can and should
contribute to providing more water for the population
and their production activities, along with all other users
58
2017 ANNUAL REPORT
2017 ANNUAL REPORT 59
ECONOMIC, FINANCIAL, AND
CORPORATE MATTERS REPORT
Gold was the metal
that accounted for the
highest percentage of
our sales, with
35
%
The Company’s consolidated profit for fiscal year 2017
totaled US$64.4 million, compared to a loss of US$327.8
million in fiscal year 2016. The net loss in 2016 was mainly
due to the results of our related company Minera
Yanacocha.
On a consolidated basis, the metal that accounted for
the highest percentage of our sales in 2017, in value
terms, was gold, with 35%, followed by silver with 28%,
copper with 18%, zinc with 13%, and lead with 6%.
During 2017, a number of actions were taken to improve
our debt position. First of all, we refinanced our mature
financial leases, reducing interest rates for Huanza and
El Brocal. Buenaventura short-term debt position was
also decreased, helped by the payment of the loan to
the shareholders of Cerro Verde for US$ 125 million, plus
interest (granted in 2015), while the commercial and
short-term debt at El Brocal was reprofiled, taking out a
3-year loan for US$ 80 million. As a result, 2017 closed
with a net debt-to-EBITDA ratio of 1.38x.
60
2017 ANNUAL REPORT
During 2017, the Company’s cash position was affected
by the delay in the start of commercial operations at
Tambomayo. This led to increased working capital
requirements, as well as the need for additional
investments to stabilize the project.
As of December 31, 2017, we had 1,059 common
shareholders. Of these, 23% were shareholders
domiciled in Peru, while 77% were non-domiciled.
We also had 899 shareholders with investment
stock.
The capital stock and investment shares accounts as of
December 31, 2017 totaled US$ 750.5 million and US$
0.8 million, respectively, while the legal reserve was at
US$ 163 million. The Company’s consolidated
cumulative earnings to date total US$ 1.728 billion.
The ADR program on the New York Stock Exchange
(NYSE) reached a trade volume of US$ 4.439 billion
during 2017 (348 million ADSs).
The consolidated earnings
for fiscal year 2017 totaled
US$ 64.4
million
MEMORIA ANUAL 2017
61
MANAGEMENT’S ANALYSIS
AND DISCUSSION
The main variations in the consolidated financial
statements
twelve-month periods ending
December 31, 2017 and 2016, are explained below:
the
for
In fiscal year 2017, net sales
of assets totaled
US$ 1,223,942
(Figures given in U.S. dollars are expressed in thousands,
except for metal prices and quantities)
I. Net Sales
In fiscal year 2017, nets sales of assets totaled US$
1,223,942, compared to sales of US$ 1,015,670 in
fiscal year 2016, representing an increase of 20.50%.
Gold Sales
Zinc Sales
The average sale price of this metal rose from US$
1,244.24/ounce in 2016 to US$ 1,267.56/ounce in
2017, representing a price increase of 1.87%. Gold
sales were 49,364 ounces higher than in 2016. The
combined effect meant revenues from sales that were
US$ 70,831 higher in 2017 than in 2016. The higher
revenues were due to the combined effect of the
the Tambomayo Unit by
increase
the start of
US$80,796, as a consequence of
operations, and the drop in sales of production from
our subsidiary La Zanja by US$ 27,806, due mainly to
the lower volume of ounces sold.
in sales at
The average sale price of this metal jumped from US$
2,266.85/MT in 2016 to US$ 3,046.19/MT in 2017,
representing a price increase of 34.38%. However, zinc
sales were 1,105 MT lower than in 2016. The combined
effect was US$ 45,598 more revenues from sales in
2017 than in 2016. The higher revenues correspond to
the increase in sales from Colquijirca and Uchucchacua,
which
rose by US$ 20,174 and US$ 19,772,
respectively, mainly due to higher prices and higher
grades in the ore treated.
Silver Sales
Lead Sales
The average sale price of this metal dropped from US$
17.65/ounce in 2016 to US$ 16.54/ounce in 2017,
representing a price decrease of 6.29%. However,
sales of silver were higher by 2,910,259 ounces
compared to 2016. The combined effect was US$
23,786 more revenues from sales in 2017 compared to
2016. The higher
the
combined effect of the increase in sales from the
Tambomayo Unit by US$ 27,285 as a consequence of
the start of operations, and the US$ 25,069 increase
in sales from the Colquijirca Unit as a result of the
higher volume sold, together with the decrease in sales
from the Julcani Unit by US$15,118, due mainly to the
lower prices and volumes negotiated.
revenues correspond
to
fell
this metal
The average price of
from
US$2,745.80/MT in 2016 to US$ 2,372.00/MT in 2017,
representing a price decrease of 13.61%. However,
sales of lead were 18,658 MT higher than in 2016. The
combined effect was US$ 36,265 more revenues from
sales in 2017 than in 2016. The higher revenues
correspond to the increased sales from Colquijirca and
Uchucchacua, which rose by US$ 20,307 and US$
15,962, respectively, due mainly to the higher tonnage
produced and the higher grades in the ore treated.
MEMORIA ANUAL 2017
63
MANAGEMENT’S ANALYSIS
AND DISCUSSION
64
2017 ANNUAL REPORT
Copper Sales
Insurance Brokerage Sales
The average sale price of copper jumped from US$
4,918.51/MT in 2016 to US$ 6,280.47/MT in 2017,
representing a price increase of 27.69%. However,
copper sales volumes were 2,918 MT lower than in
2016. The combined effect was sales revenues that
were US$ 43,878 higher in 2017 than in 2016. The
higher revenues correspond to the increase in sales
from the Colquijirca mining unit, which were US$43,561
higher, due mainly to higher prices.
Deductions
During 2017, deductions applied for maquila (tolling)
and penalties on concentrate sales jointly totaled US$
253,939, compared to US$ 244,414 in 2016. These
amounts were deducted from the net sales for each
year.
In fiscal year 2017, net sales of services totaled US$
29,697, compared to sales of US$ 28,782 in fiscal year
2016, representing an increase of 3.18%. This variation
is mainly explained by the net effect of the following
factors:
In 2017, sales to third parties for this concept totaled
US$ 14,323 (US$ 12,267 in 2016).
Engineering Service Sales
In 2017, sales to third parties by Buenaventura
Ingenieros S.A. (BISA) for this concept totaled US$
6,743 (US$ 7,907 in 2016).
The average sale price for
copper jumped to
US$6,280.47/MT
in 2017
2017 ANNUAL REPORT 65
MANAGEMENT’S ANALYSIS
AND DISCUSSION
II. Revenues from Royalties
III. Operating Costs
the
royalties
received by S.M.R.L
In 2017,
Chaupiloma Dos de Cajamarca (Chaupiloma) came to
US$ 20,739, a drop of 14.79% compared to those
received in 2016 (US$ 24,339). This decrease was due
to the combined effect of lower silver prices and lower
sales volumes of gold and silver from Yanacocha during
2017 compared to 2016.
In 2017, the royalties
received by Chaupiloma Dos
de Cajamarca totaled
US$20,739,
a 14.79% decrease compared to
those received in 2016
66
2017 ANNUAL REPORT
totaled US$ 980,254,
In 2017, operating costs
compared to US$ 824,973 for 2016, representing an
increase of 18.82%. This increase was mainly due to the
following line items:
Cost of Goods, Not Including Depreciation
or Amortization
The “Cost of Goods” line item, not including depreciation
or amortization, increased by US$ 129,621, going from
US$ 497,812 in 2016 to US$ 627,433 in 2017, which
represents an increase of 26.04%. This rise was mainly
due to: (i) US$ 53,555 for the start of operations at the
Tambomayo Unit; and (ii) US$ 24,225 and US$ 18,653
at the Uchucchacua and Orcopampa Units, due mainly
to the higher tonnages produced.
Depreciation and Amortization
The “Depreciation and Amortization” line item increased
by US$ 21,075, going from US$ 192,647 in 2016 to US$
213,722 in 2017, which represents an increase of
10.94%. This rise was due mainly to the net effect of: (i)
a US$ 42,789 increase due to the start of operations at
Tambomayo; and (ii) a decrease of US$ 19,157 at La
Zanja resulting from the increase in its useful life.
IV. Operating Expenditures
Operating expenditures rose by US$ 76,986, going from
US$ 111,622 in 2016 to US$ 188,608 in 2017, which
represents an increase of 68.97%. This increase was
mainly due to: (i) US$ 21,620 due to a provision for the
deterioration of long-term assets of the subsidiary La
Zanja in 2017; (ii) US$ 13,573 for the write-off of a
deferred clearing cost at the El Brocal subsidiary due to
a change in the operating design model of the clearing
cost; and (iii) an increase of US$ 13,314 in provisions.
V. Other Revenues (Expenditures), Net
Other expenditures fell by US$ 374,462, from US$
387,433 in 2016 to US$ 12,971 in 2017, representing a
decrease of 96.65%. This decrease is explained below:
Net Share in the Results of
Related Companies
This line item represented a loss of US$ 365,321 in
2016, compared to a profit of US$ 13,207 in 2017. The
increase is primarily explained by a drop in the net loss
of Minera Yanacocha S.R.L. by US$ 379,013.
2017 ANNUAL REPORT 67
MANAGEMENT’S ANALYSIS
AND DISCUSSION
VI. Provision for Income
Tax
VII. Non-Controlling Interest
This line item showed a loss of US$ 4,322 in 2016,
compared to a profit of US$ 3,612 in 2017. The decrease
in this loss is primarily explained by the net effect of an
increase in results of El Brocal (loss of US$ 13,426 in
2016 compared to a profit of US$ 4,246 in 2017); and a
decrease in the net loss of Minera La Zanja S.R.L. by
US$8,348 (profit of US$ 2,342 in 2016 compared to a
loss of US$ 6,006 in 2017).
This line item comprises income tax, mining royalties,
and the special mining tax.
Income Tax
This line item registered an expenditure of US$ 12,797
for 2017, and an expenditure of US$ 46,710 for 2016.
Mining Royalties and Special Mining
Tax
This line item exhibited an expenditure of US$ 5,215 for
2017, and an expenditure of US$ 6,794 for 2016.
68
2017 ANNUAL REPORT
VIII. Declaration of Changes in
Preparation and Review of
Financial Information
During the year 2017 there have been no changes in
the responsible (General Accountant or External
Auditors) of the preparation and review of the financial
information of the Company.
2017 ANNUAL REPORT 69
MEMBERS OF THE
MANAGEMENT
MANAGEMENT
Victor Gobitz C.
Raúl Benavides G.
Leandro García R.
Igor Gonzales
Gonzalo Eyzaguirre T.
Alejandro Hermoza M.
Oswaldo Cabrera R.
Pedro Torres T.
Luz Campodónico A.
Daniel Domínguez V.
General Manager
Vice President of Business Development
Vice President of Finance and Adm.
Vice President of Operations
Vice President of Vice President of
Since Jan. 2, 2017
Since Jul. 1, 1997
Since Dec. 1, 2017
Since Nov. 1, 2014
Since Jul. 1, 2017
Vice President of Soc. and Env. Affairs
Since Sep. 2, 2008
Information and Communications Technology Manager
Accounting Manager
Internal Auditing Manager
Logistics Manager
Miguel Ángel de la Flor M.
Administration and Human Resources Manager
Pedro Solís P.
Gulnara La Rosa R.
Edgar Córdova M.
Alan Angles A.
Treasury and Sales Manager
Legal Manager
Social Affairs and Mine Property Manager
Sustainable Operations Projects Manager
Julio Meza P.
Geology Manager
Juan Carlos Salazar C.
Explorations Manager
Carlos Rodríguez V.
Diego Angulo de A.
Tomás Chaparro D.
Sandro Arce V.
Ricardo Huancaya D.
Marco Oyanguren L.
Julio Rojas E.
Luis de la Cruz R.
James León V.
Rubén Valer C.
Renzo Macher C.
Augusto Bejarano V.
Rosemarie Boltan A.
Guillermo Chang C.
Carlos Claux M.
Juan Collao G.
Andres Condori B.
Alan Cruz C.
Miguel Díaz R.
Jorge Falla C.
Luis Fernandez de P.
Alfredo Gallardo R.
Rafael Guillén Ll.
Alex Lobo G.
José Lopez La T.
José Malca La F.
Fernando Mayor N.
Freddy Meza P.
Environmental Manager
Planning Manager
Safety Manager
Asset Manager
Operations Manager - Southern Region
Operations Manager - Central Region
Operations Manager - Northern Region
Northern Regional Manager
Central Regional Manager
Project Manager - San Gabriel
Project Manager - Tambomayo
Director of Tax Accounting
Regional Director of Environmental Management
Director Financial and Process Auditing
Director of Social Responsibility and Development
Director of Sales
Director of Geology
Safety Director
Director of Financial Accounting
Director of Permits and Obligations
Director of Regional Explorations
Regional Director of Environmental Management
Contract Management Director
Yanacocha Project Director
Compliance Director
Legal Director
Director of Compliance Auditing and Investigation
Director of Project Development
Fernando Ortíz De Zevallos M.
Director of Business Development
Alberto Peña A.
Cecilia Puga B.
Director of Modeling and Resources
Treasury Director
MEMORIA ANUAL 2017
215
MEMBERS OF THE
MANAGEMENT
Ana María Rivera C.
Exequiel Salazar C.
Harry Silva N.
Pablo Valladares H.
Juan Carlos Vargas B.
Julio Velásquez M.
Silvia Vicente L.
Manuel Villalobos B.
Social Management Director
Procurements Director
Project Control Director
Regional Director of Environmental Management
Director of Labor Relations and Personnel Management
Safety Director
Director of ICT Information Systems
Director of Administrative Control - Mining Units
Juan Pablo Zoeger La H.
Director of Human Resources and Development
UCHUCCHACUA
Andres Osorio A.
Juan Ayala L.
Roger Ccahuana F.
Fredy Macetas F.
Neil Mendoya H.
Jakcson Arriola C.
Fabricio Huerta L.
Julio Ugarte L.
Fredy Oscategui S.
César Rondinelli Z.
Carlos Tovar A.
Enrique Romero G.
Julio Delgado Z.
MALLAY
Jose Luis Morán M.
José Bacilio J.
Dante Gavidia C.
Carlos Montes M.
Jaime Jimenes T.
Sabino Velásquez T.
Rommer Mendoza R.
Luis Yarma Y.
216 MEMORIA ANUAL 2017
Unit Manager
Plant Supervisor
Geology Supervisor
Mine Supervisor
Maintenance Supervisor
Planning and Engineering Supervisor
Project Supervisor
Environmental Management Supervisor
Safety Supervisor
Social Affairs Supervisor
Administration Supervisor
Human Resources Supervisor
Unit Accountant
Unit Manager
Plant Supervisor
Planning and Engineering Supervisor
Geology Supervisor
Mine Supervisor
Safety Supervisor
Head of Human Resources
Unit Accountant
ORCOPAMPA
Marco Oyanguren L.
Cristina Gutiérrez J.
José Luis Aquino A.
Heider Montoya E.
Unit Manager
Plant Supervisor
Geology Supervisor
Mine Supervisor
Rommel Cotacallapa V.
General Maintenance Supervisor
Jorge Nakagawa Y.
Jimmy Gabriel E.
Dante Gallegos A.
Walter Rondineli Z.
Edwin Chuquipul R.
Víctor Orihuela V.
JULCANI
José Luis Morán M.
Juan Jesús Carlos B.
Yackson Enrique Figueroa C.
Marco López C.
Iván Carhuaz Castro
Edgar Delgado M.
Fernando Dueñas A.
Carlos Lara M.
Ciro López V.
LA ZANJA
Víctor Medina Y.
Walter Amaya A.
Julian Muñoz. G.
Robinson Paredes A.
Percy Chávez R.
César Carrasco L.
Enver Carhuaz C.
David Reaño V.
Planning and Engineering Supervisor
Environmental Management Supervisor
Safety Supervisor
Social Affairs Supervisor
Administration Supervisor
Human Resources Supervisor
Unit Manager
Geology Supervisor
Plant Supervisor
Mine Supervisor
Social Affairs Supervisor
Environmental Management Supervisor
Safety Supervisor
Planning and Engineering Supervisor
Head of Human Resources
Unit Manager
Geology Supervisor
Mine Supervisor
Plant Supervisor
Planning and Engineering Supervisor
Environmental Management Supervisor
Social Affairs Supervisor
Construction Supervisor
Hernando Saboya R.
Safety Supervisor
MEMORIA ANUAL 2017
217
Unit Manager
Geology Supervisor
Mine Supervisor
Administration Supervisor
Plant Supervisor
Human Resources Supervisor
Unit Accountant
Unit Manager
Plant Supervisor
Mine Supervisor
Geology Supervisor
Planning Supervisor
General Maintenance Supervisor
Environmental Management Supervisor
Commissioning/Construction Supervisor
Safety Supervisor
Social Affairs Supervisor
Administration Supervisor
Human Resources Supervisor
Operations Manager
Business Manager
MEMBERS OF THE
MANAGEMENT
COIMOLACHE
Gary Chircca A.
Percy Zamora D.
Manuel Aranda V.
Giancarlo Sarria I.
Christian Dávila G.
Ángel Francia M.
Roni Flores C.
TAMBOMAYO
Julio Rojas E.
Héctor Alzamora B.
Edgar Roque O.
Edwin Mendoza B.
Christian Flores V.
Fernando Guillén P.
Henry Arcos R.
Augusto Barboza V.
Miguel Achata Y.
Segundo Salazar S.
Esaud Saleh C.
Percy Quea D.
CONENHUA
Reynel Aspilcueta
Julio Montoya G.
218 MEMORIA ANUAL 2017
EL MOLLE VERDE
Edgar Paico S.
Miguel Pérez F.
Edgardo Prado A.
RIO SECO
Jaime Díaz Y.
José Luis Lama M.
Sandra Medina Vega
Martín Rodriguez S.
Manuel Ruiz C.
Richard Villagaray S.
ANTAPITE
Edgar Ruiz S.
BREAPAMPA
Head of Construction
Project Director
Social Affairs Supervisor
Unit Manager
Plant Operations Supervisor
Safety Supervisor
General Maintenance Supervisor
Administration Supervisor
Head of Plant Processes
Safety Supervisor
Sandro Briceño V.
Safety Program Head
SAN GABRIEL
Mariella Nuñez H.
Gabriela Palomino L.
Fernando Remigio J.
Rubén Fernandez S.
Gilmar Valenzuela S.
Social Affairs Supervisor
Environmental Management Supervisor
Geology Supervisor
Construction Supervisor
Mine Supervisor
MEMORIA ANUAL 2017
219
BACKGROUND OF THE MEMBERS
OF THE BOARD OF DIRECTORS
AND MANAGEMENT
Roque Benavides,
Chairman of the Board
Felipe Ortíz de Zevallos,
Director
Received his degree in Civil Engineering from the
Pontifical Catholic University of Peru (PUCP). Master of
Business Administration from the Henley Business
School at the University of Reading in the U.K.
Completed the Management Development Program at
the Harvard Business School and the Advanced
Management Programme at Oxford University. He has
worked at Buenaventura since 1977. On the board of
9 related companies, as well as the Banco de Crédito
del Perú and UNACEM. He was previously President of
the Peruvian Mining, Oil, and Energy Association
(SNMPE), and is currently the President of the Peruvian
Confederation of Private Business
Institutions
(CONFIEP).
Received his degree in Industrial Engineering from the
National University of Engineering (UNI), and obtained
his MSc in Administration and Systems from the
University of Rochester. Graduated from the OPM
Program at Harvard Business School. In addition to a
range of academic and professional activities, he is the
founder and president of the APOYO Group, created in
1977. He was previously the rector of Universidad del
Pacífico (2004-2006) and Peruvian Ambassador to the
United States from September 2006 to March 2009.
220 MEMORIA ANUAL 2017
José Miguel Morales,
Director
Germán Suárez,
Director
Bachelor of Economics graduated from the National
University of San Marcos (UNMSM). M.A. in Economics
from Columbia University. He was previously Chairman
of the Board of the Peruvian Central Reserve Bank,
spending the bulk of his professional life with said
entity. He was also President of the Banco de la Nación,
a director of various companies, and governor to the IMF
and IDB. He presided over the G-24 for IMF and World
Bank affairs.
Attorney at law graduated from the Pontifical Catholic
University of Peru (PUCP). Completed the Sloan
Program at the Stanford University School of Business.
Senior Attorney of the Company since 1970, and
General Counsel from 1993 to 2010. He has been a
Senior Partner at the Estudio Aurelio García Sayán law
firm since 2007, and has worked for the firm since 1965.
Director on the board of 5 related companies and
various other companies not engaged in mining
activities. He was previously the President of the
Institute of Mining and Oil Law, the Peruvian Mining,
the Peruvian
Oil, and Energy Association, and
Institutions
Confederation of Private Business
(CONFIEP). He currently
the
Entrepreneurs for Education Association.
the President of
MEMORIA ANUAL 2017
221
BACKGROUND OF THE MEMBERS
OF THE BOARD OF DIRECTORS
AND MANAGEMENT
William Champion,
Director
Diego de la Torre,
Director
Bachelor’s Degree in Chemical Engineering and Biology
from the University of Arizona. He has been a Member
of the Board since January 2016. He is also a Director
of Gladiator Mining Group LLC, a private mining
investment company based in the United States. Over
40 years of executive, management, and operating
experience in the mining sector. He worked at Rio Tinto
PLC from 2002 to 2014 in different positions; was
Managing Director of Rio Tinto Coal Australia,
Managing Director 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 different positions (President of
Phelps Dodge Chile).
Holds a Bachelor’s Degree in Business Administration
from the Universidad del Pacífico in Lima and an MBA
from the London Business School in England. He is the
cofounder and Chairman of the Board of La Viga y
Quikrete Perú. He is a member of the advisory council of
the David Rockefeller Center for Latin American Studies
at Harvard University, and also writes a column on the
economy for the newspaper El Comercio. He was a
professor at the Universidad del Pacífico for twelve
years, and a board member at many
important
companies and institutions, including Endeavor Perú,
IPAE, and Perú 2021. Since 2005, he has been the
President of the United Nations Global Compact
Network in Peru. In 2013, he received the “Complete
Businessperson” award
the Latin American
Business Council (CEAL). Additionally, in 2015, he was
selected as one of the Top 100 Leaders by AACSB
International. He has been a board member of
Buenaventura since 2017.
from
224 MEMORIA ANUAL 2017
Igor Gonzalez,
Director
Víctor Gobitz,
General Manager
Chemical Engineer graduated from the San Antonio
Abad del Cusco National University, with an MS in
Metallurgy from the New Mexico Institute of Mining and
Technology. He took part in the Advanced Management
Programme at Henley Business School in the United
Kingdom. He gained ample experience in the copper
industry at Southern Perú Copper Corporation, and in
the gold industry at Barrick Gold Corporation. He is
currently also a Director of Hudbay Minerales Inc.,
Sierra Metals, and Sociedad Minera El Brocal S.A.A.,
where he has served since December 2015. He was
also previously the Vice President of Operations at
Buenaventura from 2014 to 2017.
General Manager of Buenaventura since January 2017.
He has also been a Director of Sociedad Minera El
Brocal since that same year. Previously, he was the
CEO of Compañía Minera Milpo from 2013 to 2016, and
General Manager and Director at Río Alto Mining (now
Tahoe Resources); General Manager and Director at
Castrovirreyna Compañía Minera; Operations Manager
at Sociedad Minera El Brocal; and Assistant General
Manager and Director at Volcan Compañía Minera. He
is currently the President of the Peruvian Institute of
Mining Engineers (IIMP),
the Director of Gerens
Business School, and a professor at the Pontifical
Catholic University of Peru (PUCP). He has over 25
years of experience in operations and mining projects
management. He graduated from the PUCP in 1986,
and obtained his MBA from ESAN Business School in
1998, as well as pursuing specialized studies at the
University of Pennsylvania’s Wharton School (2005),
and the Kellogg School of Management (2015).
MEMORIA ANUAL 2017
223
BACKGROUND OF THE MEMBERS
OF THE BOARD OF DIRECTORS
AND MANAGEMENT
Leandro García,
Vice President of Finance
and Administration
Gonzalo Eyzaguirre,
Vice President of Operations
Bachelor’s Degree in Business Administration from
Universidad del Pacífico, Bachelor’s Degree
in
Accounting from the same university, and Master of
Business Administration from the University of Miami in
Florida. He completed the Advanced Management
Program at Harvard Business School in 2017. He worked
at Buenaventura from 1990 to 1997, where he held the
position of Head of Treasury. He also worked at
Sociedad Minera El Brocal as Finance Manager up until
2000. He was General Manager of Boticas BTL until
2005, and General Manager of Boticas Inkafarma until
June 2011. He rejoined Buenaventura as Controller
General in July 2011. He has been a Director of Química
Suiza Retail, the business that manages the Mi Farma
pharmacy chain, since January 2016.
Mining Engineer graduated from the Pontifical Catholic
University of Peru (PUCP). He obtained an MBA from
the Schulich School of Business in Toronto, Canada, and
took part in Harvard University’s General Management
Program. He has been the General Manager of
Sociedad Minera El Brocal since October 2014. Prior to
that, he was General Manager at Gold Fields La Cima in
Cajamarca. He has also worked at other prestigious
companies, including Yanacocha, among others. He
became Vice President of Operations at Buenaventura
in July 2017.
224 MEMORIA ANUAL 2017
Raúl Benavides,
Vice President of Business
Development
Alejandro Hermoza,
Vice President of Social and
Environmental Affairs
Bachelor’s Degree in Mining Engineering from the
University of Missouri at Rolla, Master of Mining
Administration from Pennsylvania State University, and
completed the Advanced Management Program at
Harvard Business School (AMP-160). He has served as
President of the Peruvian Institute of Mining Engineers
(IIMP), as well as being the founder and President of the
Mining Safety Institute (ISEM). He is currently the
President of the vocational mining school CETEMIN. He
has worked at Buenaventura since 1980, and is a
director of 11 related companies.
Mechanical Engineer graduated from the University of
Maryland, with a Master’s in Engineering from the same
university and a Master’s in Business Administration
from the Peruvian University of Applied Sciences (UPC).
He previously worked as Development Manager of the
Peruvian Confederation of Private Business Institutions
(CONFIEP) and has worked at Buenaventura since
2003, where he held the position of Community
Relations Manager from 2008 to 2011; and Deputy
Manager of Administration and Human Resources from
2003 to 2008. In 2011, he graduated from the Advanced
Management Program at Harvard Business School
(AMP).
MEMORIA ANUAL 2017
225
CORPORATE
DETAILS
Annual Report Issue Date:
February 27, 2018
General Information on the Issuing Entity:
Address: Las Begonias 415, Piso 19, San Isidro, Lima 27, Peru
Phone: (511) 419-2500 Fax: (511) 419-2502
Website:
www.buenaventura.com
Incorporation:
Incorporated by virtue of the Notarially Recorded
Instrument dated September 7, 1959, granted before
Hugo Magill Diez Canseco, Notary Public. Registered in
Filing Card No. 2287 of the Book of Corporations and
Other Legal Entities of the Mining Registry in and for
Lima, cross-referenced with Filing Card No. 02136988
of the Registry of Companies of the Public Records
Office in and for Lima.
Description of Operations and Development:
ISIC 1320: Mining of non-ferrous metal ores, except
uranium and thorium ores
Company’s Existence:
Perpetual
250 2017 ANNUAL REPORT
252 MEMORIA ANUAL 2017