Slide 1: Quellaveco: A Sustainable Project
QUELLAVECO: A SUSTAINABLE PROJECT Tom McCulley, CEO PDAC – Toronto, March 2019 1
Slide 2: Contents
CONTENTS 1. Generating trust for a long-term commitment 2. Peru: An attractive mining jurisdiction 3. Long-term relationship with Peru 4. Project location 5. Contribution to Peru 6. Our Global Sustainability Pillars 7. Committed to working with local communities 8. Dialogue Table commitment progress
Slide 3: Generating trust for a long-term commitment
GENERATING TRUST FOR A LONG-TERM COMMITMENT 1 Safety: Our first priority 2 Innovative and sustainable water strategy for Quellaveco to provide benefit to communities 3 A strategic partner for the development vision of Moquegua A collaborative and transparent relationship with regional 4 and national
Slide 4: Peru – an attractive mining jurisdiction
PERU – AN ATTRACTIVE MINING JURISDICTION The world’s second largest producer of copper, Peru has become increasingly stable over the with mining accounting for ~10% of GDP past two decades • Strong and sustained economic growth • Until 2015, gross domestic product increased on average by 5.3% • In 2
Slide 5: Peru – an attractive mining jurisdiction
PERU – AN ATTRACTIVE MINING JURISDICTION Professionalism of Peru’s mining and promotion Quellaveco Project supported by Central, Regional institutions facilitate investment and Local government Global • Government institutions clearly mining understand how volatile the • Government supports project
Slide 6: Long-term relationship with Peru
LONG-TERM RELATIONSHIP WITH PERU Quellaveco: working 2018 in Peru for >25 years FS updated. Investment 2015 Assurance review successful FS for 127.5ktpd completed. Mitsubishi acquires All major permits approved. additional 21.9% stake of Independent Project Review Quellaveco from AA plc completed AA
Slide 7: Project location
PROJECT LOCATION Located at ~3,500m above sea level in south of Peru, 34km from the city of Moquegua Quellaveco – Key statistics 60% Ownership: 40% Peru Overview Copper Lima Commodities: (molybdenum by-product) Mine: Open-pit, 1.3Bt Reserves, 0.57% TCu1 Quellaveco ~9,000 at peak construction Workfor
Slide 8: Contribution to Peru
CONTRIBUTION TO PERU At national and local level Investment US$5.0-5.3bn 25,000 people to US$0.3bn invested benefit from since project Development Fund approval (Aug-18) Will deliver average Canon & royalty ~300ktpa copper eq. income for Moquegua (first 10 years) will increase >50% Significant 0.4%
Slide 9: Our Global Sustainability Pillars
OUR GLOBAL SUSTAINABILITY PILLARS SOCIAL ENVIRONMENTAL GOVERNANCE 9
Slide 10: Committed to working with local communities
COMMITTED TO WORKING WITH LOCAL COMMUNITIES Dialogue Table focussed on three key …with firm commitments areas… Water Supply and optimal use of water resources 26 Agreements directly from the Dialogue Table Environment Compliance and monitoring of environmental 31 Bodies from 3 different municipaliti
Slide 11: Good progress being made against commitments
GOOD PROGRESS BEING MADE AGAINST COMMITMENTS Commitments No. of Fulfilled On Track During Commitments Operation Water Supply and optimal use of water resources 11 4 4 3 Environment Compliance and monitoring of environmental 11 4 6 1 commitments Local stakeholders Sustainable development projects
Slide 12: All major construction permits in place
ALL MAJOR CONSTRUCTION PERMITS IN PLACE Major Permits Water Licences Permits Status Licences Status Environmental Impact Study Construction Water Authorisation Beneficiation Concession Operations Water Licence (grant on Mining Plan start of operations) Mining Closure Plan 12
Slide 13: Local employment
LOCAL EMPLOYMENT Recruitment of Moqueguan candidates is prioritised, with all applications channelled through a dedicated regional labour office in Moquegua. Local employment Unskilled labour 3,864 5% 5,371 95% 3,864 5,371 95% Local Non-local 13
Slide 14: Local procurement
LOCAL PROCUREMENT 1,085 721 Local businesses have been identified Local businesses as potential future benefitted from 303 our training programmes suppliers Local businesses supplied goods “Progresa and services to Moquegua” and the project in “Emerge Perú” 2018 14
Slide 15: Social development aligned with UN's Sustainable Development Goals
SOCIAL DEVELOPMENT ALIGNED WITH UN’S SUSTAINABLE DEVELOPMENT GOALS • Economic productive development projects • Projects to improve agricultural production • Projects and programmes to prevent and reduce anaemia and malnutrition / Food safety • Projects to improve education quality • Projects on tec
Slide 16: Delivering improved quality and volume of water to local communities
DELIVERING IMPROVED QUALITY AND VOLUME OF WATER TO LOCAL COMMUNITIES Responsibly sourced water for operations Water for operational phase to come from two sources in High Mountain region: • 80% (18Mm3) from Titire River: unfit for human, livestock or agricultural use • 20% (4Mm3) from Vizcachas rese
Slide 17: Quellaveco on-track
QUELLAVECO ON-TRACK 2018 achievements 2019 priorities • Asana and Vizcachas river diversions • Substantially complete engineering complete • Complete earthworks in concentrator • Asana dam and tunnel complete • First concrete at concentrator • Main access road complete • Progress HME contracts and a
Slide 18: Photo gallery
PHOTO GALLERY 1. Anglo American - Safety Day 2. Asana Barrier 3. Asana River Tunnel 4. Aerial View - Quellaveco Site 5. Salveani Camp 6. Aerial View - Papajune Plant 7. Aerial View - Vizcachas Dam 8. Water Pond for Construction 18
Slide 19: Anglo American - Safety Day
ANGLO AMERICAN - SAFETY DAY 19
Slide 20: Asana Barrier
ASANA BARRIER 20
Slide 21: Asana River Tunnel
ASANA RIVER TUNNEL 21
Slide 22: Aerial View – Quellaveco Site
AERIAL VIEW – QUELLAVECO SITE 22
Slide 23: Salveani Camp
SALVEANI CAMP 23
Slide 24: Aerial View – Papujune Plant
AREAL VIEW – PAPUJUNE PLANT 24
Slide 25: Aerial View – Vizcachas Dam
AERIAL VIEW – VIZCACHAS DAM 25
Slide 26: Vizcachas Dam Site
VIZCACHAS DAM SITE 26
Slide 27: Water Pond for Construction
WATER POND FOR CONSTRUCTION 27
Slide 28: Thank you
THANK YOU 28