Industry Mining September 12, 2016 Naoyuki TSUCHIDA Sumitomo Metal Mining Co., Ltd. 1
Contents Metals and Mineral Products in Peru and Trade of Mineral Products between Peru and Japan Investment by Japanese companies in Mining sector Long-Term Vision of Sumitomo Metal Mining SMM s Mineral Resources Projects SMM s Activities in Peru Contributions to Local Communities Request for Encouragement of Investment SMM s strategies 2
Metals and Mineral Products in Peru and Trade of Mineral Products between Peru and Japan Copper Peru's exports by industry Japan's copper concentrate imports by country Mexico Canada Zambia Russia Australia Congo USA Peru 8.5% Chile China Textile Chemicals Fishing Petroleum & Natural Gas Husbandry Mining 53.9% Canada Australia Peru 11.7% Indonesia Chile Zinc Mining Exports (USm$) Japan's zinc concentrate imports by country Mexico Ireland Canada Kazakhstan Bolivia Mexico India USA Peru 10.3% Australia China Lead 1,086 Zinc Concentrate 1,202 Copper Cathode 1,503 Gold 5,654 Copper Concentrate 6,608 USA Peru 20.0% Australia Bolivia Source : USGS Mineral Commodity Summaries 2016 Source : SUNAT Estadisticas de comercio exterior Source : Ministry of Finance, Trade Statistics of Japan 3
Investment by Japanese companies in Mining sector Operation mine Antamina Mitsubishi Corporation 10.0% Cu 412kt Zn 298kt Huanzalá Mitsui Mining & Smelting 100% Zn 27kt Pb 7kt Cerro Verde Sumitomo Metal Mining Sumitomo Corporation 16.8% 4.2% Cu 256kt Mo 3kt Development project Atalaya Mitsui Mining & Smelting 100% Zn, Pb Quechua Pan Pacific Copper 100% Cu Quellaveco Mitsubishi Corporation 18.1% Cu Antamina Huanzalá Atalaya Zafranal Mitsubishi Materials 20% Cu Exploration project Mitsui Mining & Smelting Co., Ltd. Sucursal Del Perú Pan Pacific Copper Exploración Perú S.A.C. Sumitomo Metal Mining Perú S.A. Quechua Zafranal Cerro Verde Quellaveco 4
Long-Term Vision of Sumitomo Metal Mining Annual Metal Production (2015) Cupper 420kt (Electrolytic copper) Nickel 86kt (Electrolytic nickel and Ferronickel) Gold 22.3t Our Targets World Leader in the Non-Ferrous Metals Industry Cu Annual Production Interest Au Annual Production Ni Annual Production Capacity kt 300 200 170 kt 280 kt Target 300 kt t 30 20 16 t 15 t Target 30 t kt 150 100 100 kt 120 kt Target 150 kt 100 10 50 0 2013 2014 2015 2018 2021 0 2013 2014 2015 2018 2021 0 2013 2014 2015 2018 2021 5
SMM s Mineral Resources Projects Pogo (Alaska, USA) Vancouver Seattle Gold Mine Copper Mine Nickel Mine and Refinery Office Coral Bay (Philippine) Tokyo Hishikari (Japan) Taganito (Philippine) Morenci (Arizona, USA) Soroako (Indonesia) Lima Northparkes (Australia) Figesbal (New Caledonia) Cerro Verde (Peru) Sierra Gorda (Chile) Candelaria and Ojos del Salado (Chile) Sydney Santiago São Paulo 6
SMM s Activities in Peru Greenfield Exploration Established Sumitomo Metal Mining Perú S.A. in 2007 Investment in Cerro Verde mine Acquired 21% equity interest in 2005 for US$265 Million with Sumitomo Corp. (SMM:SC=80:20) Completion of the Expansion project in 2016 Copper Annual production 250ktpa 500ktpa Direct employment 2,600 4,200 Fine ore bin Secondary and tertiary crusher Approx. 500m 7
Contributions to Local Communities by SMM Peru Support for local community events Village festival Mother s Day Christmas Culture and Education Renovation of the Amano Museum Reading competition Lecture class Agriculture etc. Irrigation project Community center 8
SMM s strategies SMM recognizes Peru has one of the best mineral resource potential and attractive investment environment. SMM focuses on gold project and intends to operate gold mine in Peru. SMM carries out its social responsibility in every exploration project and as a shareholder of Cerro Verde to upgrade the corporate value. 9
Request for Encouragement of Investment Transparent and efficient regulatory procedures Uncertainty concerning environmental regulations Facilitation of investment Earlier conclusion of Peru-Japan tax treaty Introduction of Tax incentive for exploration activities Improvement of infrastructure for mining operations Public order and Informal & Illegal miners Improvement of security situations Support for campaigns against informal/illegal miners 10
Mil gracias y Bienvenidos al Japón! 11