2015 Minerals Yearbook

PERU [ADVANCE RELEASE]

U.S. Department of the Interior August 2019 U.S. Geological Survey The By Yadira Soto-Viruet

In 2015, Peru ranked third among the world’s leading to 195,705 from 174,310 in 2014. Of these 195,705 workers, producers of (accounted for 9% of world production), about 18% worked in Arequipa Region; 10% worked in Junin (15% of world production), and (11% of world Region; 9% each worked in Apurimac Region and La Libertad production); fourth among the world’s leading producers of Region, respectively; and 7% each worked in Cajamarca Region molybdenum (9% of world production) and (6% of world and Lima Region, respectively (Ministerio de Energía y Minas, production); fifth among the world’s leading producers of 2016a, p. 117–120). (5% of world production); and sixth among the world’s leading As of December, the country’s foreign direct investment producers of (7% of world production). According to the (FDI) inflows amounted to about $7.7 billion compared with Ministerio de Energía y Minas (MEM), in 2015, Peru was Latin $7.6 billion in 2014. The balance of FDI in Peru as contributions America’s leading producer of gold, lead, tin, selenium, and to capital amounted to $24.2 billion in 2015, which was about zinc; and the second-ranked producer of cadmium, copper, the same amount as in 2014, and the and petroleum molybdenum, phosphate rock, and silver. The country’s world sectors received about 23% and 3% of that amount, respectively. rankings for reserves of mineral commodities were as follows: The main sources of FDI to Peru as contributions to capital first for silver, second for molybdenum, third for copper and included Spain (19%), the United Kingdom (18%), the zinc, fourth for lead, and sixth for gold. In 2015, Peru’s real United States (13%), Chile (9%), the Netherlands (6%), and gross domestic product (GDP) increased by 3.3% to about Brazil and Colombia (5% each) (ProInversión, 2016a–c). $150.5 billion1 compared with $166.9 billion (revised) in 2014. Investment in the mining sector decreased by about 15% The country’s manufacturing sector accounted for 14% of the to $7.5 billion from $8.9 billion in 2014. Infrastructure total GDP and the mining sector accounted for 12% of the investments accounted for about 16% of the total mining total GDP (Banco Central de Reserva del Perú, 2015, p. 32; investments, followed by mining (11%), mining equipment 2016a; 2016b, p. 45–46; Ministerio de Energía y Minas, 2016a, (9%), and beneficiation plant equipment and exploration p. 27, 31; Anderson 2017; Bennett, 2017; Brininstool, 2017; (6% each). In 2015, investments in mining equipment increased George, 2017; Guberman, 2017; Polyak, 2017; Tolcin, 2017). by 17% to about $654 million from $557 million in 2014, and investments in beneficiation plant equipment decreased by Minerals in the National Economy 50% to $446 billion from $890 billion in 2014; exploration decreased by 28% to 442 million from $617 million in 2014; In 2015, the value of the contribution of the mining and infrastructure, by 16% to $1.23 billion from $1.46 billion; and hydrocarbon sectors to the GDP increased by 9.3%. The mining, by 13% to $793 million from $912 million (Ministerio increase in the country’s GDP was attributed to an increase in de Energía y Minas, 2015b, p. 15; 2016a, p. 99). the mining of metals owing to the expansion of the As of December, estimated investment in the country’s mining Mine operated by Sociedad Minera Cerro Verde S.A.A. (Minera portfolio included 47 major projects, which would amount to Cerro Verde), which was a joint venture of Freeport-McMoRan about $57 billion during the next 4 years. Of the $57 billion, of the United States (53.6%), Sumitomo Metal Mining Co. Ltd. about $24 billion (42%) was for projects with approved of Japan (21.0%), and Compañía de Minas Buenaventura S.A.A. environmental impact assessments or under construction, about (Buenaventura, 19.6%); and the startup of the Las Bambas Mine $23 billion (41%) was for projects in the exploration phase, operated by Minera Las Bambas S.A., which was a joint venture about $9 billion (16%) was for expansion projects, and about of Chinese companies MMG Ltd. (62.5% interest), GUOXIN $884 million (2%) was for projects in the evaluation process. International Investment Corp. Ltd. (22.5%), and CITIC Metal Most of the investment was from, in order of investment value, Co., Ltd. (15.0%). The value of the mining of metals increased China ($19 billion, or 34%), Canada ($9 billion, or 16%), the by 16% in 2015, which was attributed to a 26% increase in the United States ($5 billion, or 9%), Mexico and Peru ($4 billion, or production of copper. The value of hydrocarbons decreased by 7% each), Australia ($3 billion, or 5%), Brazil ($2 billion, or 4%), 12% in 2015, which was attributed to decreased production of and Japan ($500 million, or 0.9%). Copper projects accounted petroleum (owing mainly to lower international oil prices) and for about 62% of the total investment in mining followed by natural gas and natural gas liquids (table 1; Banco Central de copper-gold and polymetallics (10% each) and iron ore (9%) Reserva del Perú, 2016a; 2016b, p. 45–46). (Ministerio de Energía y Minas, 2015b, p. 15; 2016a, p. 109). Peru’s mining activity was broadly distributed among 23 of In 2015, Minera Cerro Verde was ranked first among the its 25 Regions. As of December, about 604 mining operations mining companies investing in the country; the company were in the production stage, 408 were in the exploration stage, invested $1.6 billion in the expansion of the Cerro Verde Mine and 93 were in the construction stage throughout the country. In in Apurimac Region, followed by Minera Las Bambas, which 2015, direct employment in the mining sector increased by 12% invested $1.5 billion for the development of the Las Bambas 1Where necessary, values have been converted from Peruvian nuevo project in Cotabambas, Apurimac Region. Glencore plc ranked sol (PEN) to U.S. dollars (US$) at annual average exchange rates of third among the mining companies investing in the country. PEN0.35717=US$1.00 for 2014 and PEN0.31190=US$1.00 for 2015.

PERU—2015 [ADVANCE RELEASE] 16.1 The company invested $570 million in the expansion of the 14% to 315,784 t from 277,153 t (revised). Increases in the Antapaccay project in Cusco Region. Arequipa Region received production of industrial minerals were led by boron (176%), 24% of Peru’s mining investments, followed by the Apurimac kaolin (117%), quartz and quartzite (79%), sand (54%), (20%), Cusco (12%), Junin (8%), La Libertad (7%), and Ancash travertine (44%), marble (27%), salt (25%), and limestone (6%) Regions (Ministerio de Energía y Minas, 2015b, p. 14; (12%). Increases in the production of mineral fuels and related 2016a, p. 102, 105). materials were led by anthracite (46%), residual fuel oils (22%), and lubricants (15%). Tin metal production decreased by 17% Government Policies and Programs to 20,396 t in 2015 from 24,462 t in 2014; tin content of mine output, by 16% to 19,511 from 23,105; direct reduced iron, The Ministerio de Energía y Minas (MEM) is the by 14% to 76,000 t from 88,000 t; and electrowon copper, by Government agency responsible for the administration and 13% to 73,091 t from 83,800 t. Decreases in the production regulation of the energy and mining sectors. The Instituto of industrial minerals were led by barite (73%), onyx (57%), Geológico Minero y Metaluúrgico of the MEM is the authority bentonite (43%), diatomite (20%), gypsum (19%), and slate responsible for all legal matters related to geoscience research (16%) and decreases in the production of mineral fuels and and for the management of land and mining concessions. related materials were led by bituminous coal and jet fuel The Dirección General de Minería (DGM) of the MEM (17% each), crude petroleum (16%), distillate fuel oil (15%), has the responsibility to address all legal matters related to asphalt (13%), and natural gas liquids (12%). Data on mineral mining sector policy. The Dirección General de Asuntos production are in table 1. Ambientales of the MEM has the responsibility to address environmental problems that result from energy and mining Structure of the Mineral Industry activities and is mandated to implement environmental laws and regulations. Perúpetro S.A. is a nonregulatory agency In 2015, Peru’s leading copper companies included responsible for the promotion of hydrocarbon investments in Compañia Minera Antamina S.A. (Antamina), which was a the country (law No. 26221, Ley Orgánica de Hidrocarburos). joint venture among BHP Billiton plc of the United Kingdom Perúpetro negotiates, signs, and administers hydrocarbon (33.75% interest), Glencore (33.75%), Teck Cominco Ltd. contracts for which Perúpetro must compete with the private of Canada (22.5%), and Mitsubishi Corp. of Japan (10%); sector. Perúpetro was involved in the transportation, refining, and Compañia Minera Antapaccay S.A. (Antapaccay), which was marketing of refined products and other derivatives of petroleum owned by Glencore plc of Switzerland (100%); Minera Cerro as well (Instituto Geológico Minero y Metalúrgico, 2016; Verde; Minera Chinalco Peru S.A., which was a subsidiary of Ministerio de Energía y Minas, 2016b–d; Perúpetro S.A., 2016c). Aluminum Corporation of China (Chinalco); and Southern In 2014, the Government issued four rules to formalize small- Copper Corp., which was owned by Grupo Mexico S.A.B. scale and artisanal mining in Peru, including Superintendency de C.V. (84.6%). The country’s leading silver producers Resolution No. 057–2014/SUNAT, which reinforces the control included Buenaventura, Antamina, Compañia Minera of audited goods related to the formalization of small-scale S.A.A (Volcan), and Compañia Minera Ares S.A.C. (owned mining and artisanal mining; D.S. No. 029–2014–PCM, which by Holchschild Mining Plc), and the country’s leading zinc approves the restructuring strategy for artisanal and small-scale producers included Antamina, Compañía Minera Milpo S.A. mining with a gradual, progressive, and orderly formalization to (Milpo) (owned by Votorantim Metais -Cajamarquilla S.A., be completed in 2016; R.M. No. 470–2014–MEM/DM, which 49.9%), and Volcan. S.A., which had a production creates an outline for the restructuring strategy of artisanal and capacity of about 30,000 metric tons per year (t/yr), was the only small-scale mining; and D.S. No. 041–2014–EM, which defines producer of tin in the country. Molybdenum was produced as a the validity of previous mining certificates during the period byproduct of copper production by Antamina, Minera Cerro specified by D.S. No. 029–2014–PCM (Ministerio de Energia y Verde, Minera Chinalco (Toromocho Mine), and Southern Minas, 2015a, p. 21). Copper (Cuajone and Toquepala units). Shougang Corp. of China, Peru was a compliant country of the Extractive Industries through its subsidiary Shougang Hierro Perú S.A.A., continued Transparency Initiative (EITI), meeting all the requirements in to be Peru’s sole iron ore producer. Table 2 lists the structure the EITI standard. EITI is a global coalition of Governments, of Peru’s mineral industry by principal commodities and major companies, and civil society working together to improve operating companies (Ministerio de Energía y Minas, 2015c). transparency and responsible management of revenues from The largest oil refinery in the country, in terms of installed natural resources, including gas, oil, metals, and minerals capacity, continued to be La Pampilla, which had an installed (Extractive Industries Transparency Initiative, 2016a, b). capacity of 102,000 barrels per day (bbl/d) and was located in El Callao Province, Lima Region. Repsol YPF of Spain, Production through its subsidiary Repsol Peru B.V., held a 51.03% interest in La Pampilla, which accounted for about 50% of the country’s In 2015, tungsten metal production increased by 80% to refinery capacity. Petroperú owned the Talara oil refinery, which 139 metric tons (t) from 77 t in 2014; placer gold, by 55% to was located in Piura Region and had an installed capacity of 12,175 kilograms (kg) from 7,867 kg; copper content of mine 65,000 bbl/d; the Conchan oil refinery, which was located in output, by 26% to 1.6 million metric tons (Mt) from 1.3 Mt Lima Region and had an installed capacity of 15,500 bbl/d; the (revised); molybdenum content of mine output, by 18% to Iquitos oil refinery, which was located in Loreto Region and had 20,153 t from 17,018 t; and lead content of mine output, by an installed capacity of 12,000 bbl/d; the Pucallpa oil refinery

16.2 [ADVANCE RELEASE] U.S. GEOLOGICAL SURVEY MINERALS YEARBOOK—2015 (operated by plc), which was located in Ucayali valued at almost $342 million compared with 24,600 t valued Region and had an installed capacity of 3,300 bbl/d; and the at more than $540 million in 2014; this was about a 28% El Milagro oil refinery, which was located in Amazonas Region decrease in value compared with that of 2014; the decrease in and had an installed capacity of 2,000 bbl/d (table 2; Ministerio the export value was owing to the decrease in the price of tin de Energía y Minas, 2015d). to $7.30 per pound in 2015 from $9.94 per pound in 2014. In 2015, the United States and the Netherlands together received Mineral Trade 59% of the country’s tin exports. Zinc exports in 2015 totaled 1.2 Mt and were valued at about $1.5 billion, which was about In 2015, the value of Peru’s total exports amounted to about the same amount and value as in 2014; prices decreased to $34.2 billion compared with $39.5 billion in 2014, which was a $0.88 per pound in 2015 from $0.98 per pound in 2014. Peru’s decrease of 14%. Metallic products, nonmetallic minerals, and leading zinc export partners were, in order of export value, iron and steel, accounted for about $21 billion, or 62% of total China (which received about 36% of the country’s zinc exports), export revenues in 2015 compared with almost $23 billion, or the Republic of Korea (13%), Spain (11%), Brazil (9%), and about 58% of the total export revenues in 2014. In 2015, the Japan (8%). Iron ore exports increased to 11.4 Mt valued at country’s metallic products, which included copper, gold, iron, $350 million in 2015, which was about the same amount as in lead, molybdenum, silver, tin, zinc, and others, accounted for 2014. China was the leading export partner, accounting for 94% about $19 billion, or 55% of total exports, and the petroleum of the iron ore exports (Ministerio de Energía y Minas 2016a, and natural gas sector accounted for about $2.3 billion, or 7%. p. 45, 53, 61, 69, 77, 80, 83). Copper made up a total of 43% of Peru’s metallic products Peru’s exports to the United States were valued at about exports, followed by gold (35%) and lead and zinc (8% each). $5.1 billion in 2015 compared with about $6.1 billion in The country’s leading metallic export partners were, in order of 2014. Of this amount, nonmonetary gold accounted for about value, China (which received 32% of Peru’s metallic products $739 million (or 14% of the country’s total exports to the exports), Switzerland (14%), Canada (11%), the United States United States, by value); petroleum products accounted for about (6%), and Japan (5%) (Ministerio de Energía y Minas, $350 million; crude petroleum, about $108 million; tin, about 2016a, p. 33–35). $121 million; copper, about $73 million; and zinc, about Copper exports in 2015 totaled 1.7 Mt and were valued $68 million. In 2015, imports from the United States were at about $8.1 billion compared with 1.4 Mt valued at about valued at about $8.8 billion compared with about $10.1 billion $8.8 billion in 2014; this was a decrease in value of 7.7% in 2014; these imports included about $1.4 billion in fuel oil, compared with that of 2014 and was owing to the decrease in about $676 million in petroleum products, and about $275 in the price of copper to $2.50 per pound in 2015 from $3.11 per excavating machinery (U.S. Census Bureau, 2016a, b). pound in 2014. Peru’s leading copper export partners were, in order of export value, China (which received about 55% of the Commodity Review country’s copper exports), Japan (8%), Brazil and Germany (5% each), and the Republic of Korea and Italy (4% each). Metals The country’s gold exports amounted to about 177,000 kg valued at $6.6 billion compared with about 166,000 kg valued Copper.—In 2015, Ancash Region was ranked first among at about $6.7 billion in 2014; the decrease in the export value the country’s copper-producing regions, accounting for about was owing to the decrease in the price of gold to $1,160 per 25% of the amount produced, followed by the Cusco (18%), troy ounce in 2015 from $1,266 per troy ounce in 2014. Peru’s Arequipa (15%), Junin (12%), and Moquegua (11%) Regions. leading gold export partners were, in order of export value, Peru’s leading copper companies were, in order of output, Switzerland (which received about 41% of the country’s gold Antamina (which accounted for about 24% of the country’s exports), Canada (24%), and the United States (13%). Exports total copper production), Southern Copper (19%), Minera of lead amounted to 930,000 t in 2015 compared with 768,200 t Cerro Verde (15%), Antapaccay (12%), and Chinalco (11%) in 2014 and were valued at more than $1.5 billion in 2015, (Ministerio de Energía y Minas, 2015b, p. 3, 5; 2016a, p. 41). which was about the same value as in 2014. Peru’s leading Hudbay Minerals Inc. of Canada, through its subsidiary lead export partners were, in order of export value, China HudBay Peru S.A.C., began commercial production at the (which received about 43% of the country’s lead exports), the Constancia project in the second quarter of 2015. The project, Republic of Korea (19%), Canada (18%), and Belgium (7%). which is located in Chumbivilcas Province, Cusco Region, and Exports of molybdenum amounted to 18,000 t valued at about included the Constancia and Pampacancha deposits, produced $219 million in 2015 compared with 17,000 t valued at about 105,897 t of copper concentrates during the year. Total proven $360 million in 2014. Exports of silver amounted to about 280 t and probable reserves at the project were reported as 614 Mt at (reported as 8.9 million troy ounces) valued at $138 million average grades of 0.30% copper, 0.0093% [reported as 93 grams in 2015 compared with about 532 t (17.1 million troy ounces) per metric ton (g/t)] molybdenum, 0.054 g/t gold, and 2.97 g/t valued at about $331 million in 2014; prices decreased to silver. The company planned to produce between 110,000 t and $15.72 per troy ounce in 2015 from $19.08 per troy ounce 130,000 t of copper in 2016 (Hudbay Minerals Inc., 2016a, in 2014. The leading silver export partners were, in order of p. 28; 2016b). export value, the United States (which received about 46% of Compañía Minera Antapaccay S.A., which was a subsidiary the country’s silver exports), Canada (30%), and Brazil (17%). of Glencore, owned and operated the Antapaccay Mine, which The country’s tin exports in 2015 totaled 20,100 t and were is located in Cusco Region. In 2015, copper in concentrates

PERU—2015 [ADVANCE RELEASE] 16.3 produced at Antapaccay increased by 21% to 202,100 from Ayacucho (6%) Regions. In 2015, silver production increased 167,100 t in 2014; the increase was mainly attributed to the by 6% to 3,670 t from 3,459 t (revised) in 2014; the increase restart of the Tintaya plant in May. Production of gold and silver was mainly owing to increases in production by Chinalco also increased at Antapaccay by 77% and 25%, respectively (by 122%), Empresa Admistradora Cerro S.A.C. (by 59%), (Glencore plc, 2016, p. 54, 176, 186). Antamina (by 46%), and Volcan (by 12%). Peru’s leading silver Minera Chinalco operated the Toromocho open pit mine producers were, in terms of output, Antamina and Buenaventura, located in the Morococha District, Junin Region. The mine had each of which produced about 14% of the country’s total silver the capacity to produce about 200,000 t/yr of copper, 10,000 t/yr production, followed by Volcan, (10%) and Compañia Minera of molybdenum, and 113 t/yr of silver oxide. Reserves at the Ares (8%). Junin Region was ranked first among the country’s Toromocho were reported to be 1,526 Mt at average grades of silver-producing regions and accounted for about 20% of the 0.48% copper, 0.019% molybdenum, and 6.88 g/t silver. In 2015, amount produced, followed by Lima and Ancash (17% each), Chinalco copper production increased by 159% to 182,214 t and Pasco (16%) Regions (Ministerio de Energía y Minas, from 70,262 t. The company continued with its plan to invest an 2015b, p. 3, 5; 2016a, p. 49, 65). additional $1.4 billion to further expand Toromocho’s capacity In 2015, Hochschild Mining plc of the United Kingdom by an additional 25,000 t of copper, which was expected to be began operations at its Inmaculada property, which comprised completed by 2018 (Ministerio de Energía y Minas, 2015c, p. 9; 40 mining concessions and is located in Ayacucho Region. Minera Chinalco Peru S.A., 2016a–b). In June, the company achieved its first dore production and The joint venture among Chinese companies MMG Ltd. during the year produced 2,400 kg of gold and 58 t of silver. (62.5% interest), GUOXIN International Investment Corp. Ltd. Hochschild reported that gold and silver recoveries were close (22.5%), and CITIC Metal Co., Ltd. (15.0%) continued with the to their target of 93.7% in gold and 87.0% in silver. Total development of the Las Bambas copper mine project, which was proved and probable mineral reserves at Inmaculada were expected to begin commercial production in the second quarter reported to be 6.98 Mt at average grades of 143 g/t silver and of 2016. The project, located in Cotabambas, Apurimac Region, 4.4 g/t gold and additional total measured and indicated mineral was commissioned during the year and was expected to produce resources were reported to be 6.50 Mt at average grades of between 250,000 t and 300,000 t of copper in concentrate in 174 g/t silver and 5.26 g/t gold. Inferred mineral resources 2016. Las Bambas would be developed as an open pit mine were reported to be 3.73 Mt at average grades of 124 g/t silver and would have the potential to produce about 400,000 t/yr of and 2.98 g/t gold. Inmaculada had the capacity to produce copper (MMG Ltd., 2016a, b). about 3,500 kilograms per year (kg/yr) of gold and 120 t/yr of According to the MEM, expansion projects within the country’s silver. The company planned to begin a drilling program in the mining project portfolio included Cerro Verde ($4.6 billion), surroundings of Inmaculada in 2016, which would allow for the which is located in Arequipa Region, and Toquepala potential to expand the mine in the medium term (Ministerio ($1.2 billion), which is located in Tacna Region. The expansion de Energía y Minas, 2015c, p. 17; Hochschild Mining plc, of Cerro Verde, which was owned by Minera Cerro Verde, 2016, p. 7–8, 11, 122–123). began operations in September and was expected to be at full Corp. of Canada, through its subsidiary Minera capacity in early 2016. The expansion would add 272,000 t/yr Barrick Misquichilca, owned and operated the Lagunas Norte of copper production capacity and 7,300 t/yr of molybdenum Mine in La Libertad Region and the Pierina Mine in Ancash production capacity. Toquepala, which was owned by Southern Region. In 2015, gold production at Lagunas Norte and Pierina Copper, would increase its production capacity to 100,000 t/yr (began closure activities in 2013) was 15,876 kg and 1,531 kg, of copper and 3,100 t/yr of molybdenum. An environmental respectively. The company forecast gold production at Lagunas impact study was approved in 2014, and construction work Norte to be between 11,600 kg and 12,800 kg in 2016; the was underway. Projects under construction included Minas decrease in production would be a result of the progressive Conga ($4.8 billion), which is located in Cajamarca Region depletion of oxide ores. As of December 31, total mineral and was owned by Minera S.R.L. [a joint venture reserves at Lagunas Norte were reported to be 63.6 Mt at an among Newmont Mining Corp. of the United States (51.3%), average grade of 1.82 g/t gold (Barrick Gold Corp., 2016a, Buenaventura (43.7%), and the International Finance Corp. p. 31, 58, 88; 2016b). (5.0%)]; Quellaveco ($3.3 billion), which is located in On June 2, the Bear Creek Mining Corp. of Canada Moquegua Region and was a joint venture between Anglo announced the results of an updated feasibility study for its American plc. of the United Kingdom (81.9%) and Mitsubishi wholly owned Corani silver-lead-zinc project, which consisted Corp. of Japan (18.1%); and Tia Maria ($1.4 billion), which is of 12 mineral concessions and is located in Puno Region. In located in Arequipa Region and was owned by Southern Copper 2015, total proven and probable mineral reserves were reported (Ministerio de Energía y Minas, 2015b, p. 24; 2016a, p. 110). to be 138 Mt at average grades of 52 g/t silver, 0.91% lead, and Gold and Silver.—The leading gold producers of the country 0.59% zinc. The project had the potential to be developed as an included Minera Yanacocha (which accounted for about open pit mine and to have the capacity to produce an average of 19% of the country’s total gold production), Minera Barrick about 380 t/yr of silver for the first 5 years and 240 t/yr during Misquichilca S.A. (13%), and Consorcio Minero Horizonte S.A. the life of the mine (expected to be 18 years). In late 2015, the (5%). Gold production from La Libertad Region accounted for company submitted modifications to its environmental and social about 32% of the country’s total gold production, followed by impact assessment, which was originally approved in 2013. Cajamarca (29%), Arequipa and Madre de Dios (9% each), and Bear Creek Mining expected to receive the approval of the

16.4 [ADVANCE RELEASE] U.S. GEOLOGICAL SURVEY MINERALS YEARBOOK—2015 submitted modifications of its environmental and social impact produced about 21% of the country’s total zinc production) and assessment in early 2016. The company also would continue to Milpo and Volcan (13% each). Mine output of zinc increased work to acquire key permits in preparation for a construction by about 8% in 2015 compared with that of 2014; the increase permit application (Bear Creek Mining Corp., 2016, p. 3–4, 6). was attributed to increases in production by Sociedad Mineral Minera Yanacocha S.R.L. [a joint venture of Newmont El Brocal (by 645%), Compañia Minera Raura S.A. (by 41%), Mining Corp. of the United States (51.3%), Buenaventura and Antamina (by 12%). The leading zinc-producing regions (43.7%), and the International Finance Corp. (5.0%)] were, in order of output, Ancash (which produced about 24% of owned the Yanacocha Mine, which is located approximately the country’s zinc production), Junin (21%), Pasco (19%), Lima 375 kilometers (km) north of Lima and 30 km north of the (14%), and Ica (13%) Regions (Ministerio de Energía y Minas, city of Cajamarca, and the Conga copper-gold project, which 2015b, p. 3, 5; 2016a, p. 57, 73). is located within close proximity of existing operations, about Molybdenum.—In 2015, the leading producer of molybdenum 25 km northeast of Yanacocha. During the past several years, was Southern Copper, which accounted for about 61% of the the projects had been the target of local political and community total molybdenum production, followed by Cerro Verde (17%), protests, some of which blocked the road between Yanacocha Minera Chinalco (12%), and Antamina (10%). The increase and Conga and the city of Cajamarca and resulted in vandalism in the production of molybdenum was mainly attributed to an and equipment damage. Construction activities at Conga were increase in production at Toromocho, by 221% to 2,434 t in largely suspended since 2011 owing to the protests. Newmont 2015 from 757 t in 2014; Antamina by 42% to 2,018 t from Mining reported that, because of the existing social and political 1,424 t; and Southern Copper, by 22% to 12,368 t from 10,101 t environment, the joint venture did not anticipate being able (Ministerio de Energía y Minas, 2016a). to develop Conga for the foreseeable future. Conga had the Tin.—The San Rafael underground mine, which was owned potential to produce 54,000 t/yr of copper and 19,300 kg/yr by Minsur, is located in the Antauta District, Puno Region. As of of gold (Newmont Mining Corp., 2016, p. 22; Ministerio de December 2014, measured and indicated mineral resources were Energía y Minas, 2015c, p. 19). reported as 5.7 Mt at an average grade of 2.67% tin, and inferred Iron Ore.— Shougang Hierro Perú produced iron ore at its mineral resources were reported as 1.9 Mt at an average grade Marcona open pit mine, which is located in Marcona District, of 1.97% tin. Proven and probable reserves were estimated to Inca Region. In 2015, production (iron content) increased to be 4.2 Mt at an average grade of 1.84% tin. Concentrates from 7.3 Mt from 7.2 Mt in 2014. The company continued its Marcona San Rafael were processed by the company’s tin smelting and expansion project at an investment cost of about $1.5 billion. refining operations located in Pisco, Ica Region. In 2015, the The project would increase the company’s production capacity company reported that the decrease in the production of refined to 20 Mt/yr and was expected to be completed by 2017. As tin was mainly attributed to lower ore grades, which decreased of 2014, proven and probable reserves (iron content) at the to 2.05% from 2.48% (Minsur S.A., 2015a, p. 22–23; 2015b, p. 5). Marcona Mine were reported to be 2.1 billion metric tons (Shougang Hierro Perú S.A.A., 2015, p. 5–6). Industrial Minerals In 2015, planned investments for iron ore projects included Phosphate Rock.—Compañia Minera Miski Mayo S.R.L. Pampa de Pongo ($1.5 billion), which is located in Arequipa operated the Bayovar open pit mine, which is located in the Region and was owned by Jinzhao Mining Peru S.A. (a joint Sechura Province, Piura Region, and had the capacity to venture of Chinese companies Nanjinzhao Group Co. Ltd. produce about 3.9 Mt/yr. Compañia Minera Miski Mayo was a and Zibo Hongda Mining Co. Ltd.) and Hierro Apurimac joint venture among Vale S.A. of Brazil (40% interest), Mosaic ($2.3 billion), which is located in Apurimac Region and was Co. of the United States (35%), and Mitsui & Co., Ltd. of Japan owned by Apurimac Ferrum S.A. (a subsidiary of Strike (25%). Total proven and probable reserves at Bayovar were Resources of Australia). Pampa de Pongo was expected to have reported to be 402 Mt at an average grade of 15.4% phosphorus a production capacity of about 15 Mt/yr and to be completed by pentoxide (P O ) compared with 409 Mt at an average grade of 2017, and Hierro Apurimac was expected to begin operations 2 5 15.4% P O in 2014. Expansion plans are underway at Bayovar by 2020 and to have a production capacity of about 20 Mt/yr 2 5 to increase the production capacity of the mine to 5.8 Mt/yr at (Ministerio de Energía y Minas 2015c, p. 4, 14, 33). an investment cost of about $520 million. The expansion was Lead and Zinc.—The increase in lead production was expected to be completed in 2016 (Ministerio de Energía y attributed to an increase in the production by Sociedad Minera Minas 2015c, p. 4; 2016a, p. 111; Vale S.A., 2016, p. 72). El Brocal S.A.A., which increased its production by 755%, In March 26, Focus Ventures Ltd. of Canada, through its followed by Compañía Minera Milpo S.A., which increased subsidiary Agrifos Peru S.A.C., completed the purchase its production by 550%. The country’s leading lead producer (70% interest) of the Bayovar 12 phosphate mining concession was Volcan, which accounted for 9% of the country’s total lead with Juan Paulo Quay S.A.C. (JPQ), which was the titleholder production, followed by Empresa Administradora Chungar of Bayovar 12. The concession is located in Sechura Province, S.A.C. (8%), and Sociedad Minera El Brocal (7%). The Pasco Piura Region, in northwestern Peru, adjacent to Vale’s Bayovar Region was ranked first among the country’s lead-producing Mine. A prefeasibility study for Bayovar was completed in regions and accounted for about 30% of the tonnage produced, December. The study reported that Bayovar had the potential to followed by the Lima (22%), Junin (15%), and Ancash and produce 1.0 Mt/yr (dry basis) of phosphate rock concentrate for Huanuco (6% each) Regions. The country’s leading zinc a total of 18.5 Mt/yr during a mine life of 20 years. Measured, producers were, by tonnage of output, Antamina (which indicated, and inferred mineral resources at Bayovar 12 were

PERU—2015 [ADVANCE RELEASE] 16.5 reported to be 17.7 Mt (dry) at an average grade of 13.16% the fields of energy, mining, and related industries. Mining is

P2O5, 209.5 Mt (dry) at 13.04% P2O5, and 102.2 Mt (dry) at likely to continue to be one of the major sources of FDI, taxes,

13.11% P2O5, respectively, and total mineral reserves were and employment in the country. China will continue to be an reported to be 54.7 Mt of run-of-mine ore (dry) at an average important economic partner, mainly focusing on the trade of grade of 12.99% P2O5 (Focus Ventures Ltd., 2016; 2016b, p. 3–7). mineral commodities, such as copper and gold. In the long run, new projects and expansion projects in the nonfuel mineral Mineral Fuels sector, including copper, gold, iron, silver, and phosphate rock, are likely to attract additional FDI into the country, to Natural Gas and Petroleum.—In 2015, production of crude increase interest in mineral prospecting, and to encourage petroleum decreased by 16% to 21.2 million barrels (Mbbl) mining companies already operating in the country to invest in from 25.3 Mbbl in 2014; natural gas, by 3% to 12.5 million expanding and modernizing their operations (Banco Central de cubic meters from 12.9 million cubic meters; and natural gas Reserva del Perú, 2016b, p. 46–47, 49). liquids, by 12% to 33.4 Mbbl from 37.8 Mbbl. According to Perúpetro, the decrease in hydrocarbon production was References Cited attributed mainly to low oil prices, which limited the drilling of development wells. The country’s leading crude petroleum Anderson, C.S., 2017, Tin: U.S. Geological Survey Mineral Commodity producers were, in order of volume, Pluspetrol Norte S.A. Summaries 2017, p. 174–175. (Accessed April 12, 2018, at https://minerals.usgs.gov/minerals/pubs/commodity/tin/mcs-2017-tin.pdf.) (owned by Pluspetrol), which operated Blocks 8 and 1–AB and Banco Central de Reserva del Perú, 2015, Reporte de inflacion—Panorama accounted for about 26% (5.4 Mbbl) of domestic production; actual y proyecciones macroeconomicas 2015–2017 [Inflation report— China National Petroleum Corp. (CNPC) Peru S.A., which Current panorama and macroeconomic projections 2015–2017]: Lima, operated Block X and accounted for about 18% (3.9 Mbbl) of Peru, Banco Central de Reserva del Perú, December, 123 p. (Accessed April 12, 2018, at http://www.bcrp.gob.pe/docs/Publicaciones/ domestic production; and SAVIA Peru S.A., which operated Reporte-Inflacion/2015/diciembre/reporte-de-inflacion-diciembre-2015.pdf.) Blocks Z–2B and accounted for about 17% (3.5 Mbbl) of Banco Central de Reserva del Perú, 2016a, Producto bruto interno por sectores domestic production. The leading crude petroleum-producing [Gross domestic product by sectors]: Lima, Peru, Banco Central de Reserva zones were Noroeste, Selva Norte, and Zocalo, which accounted del Perú. Banco Central de Reserva del Perú, 2016b, Reporte de inflacion-Panorama for 40%, 32%, and 23%, respectively, of the country’s total actual y proyecciones macroeconomicas 2016–-2017 [Inflation report-Current crude petroleum production. Selva Sur Zone accounted for panorama and macroeconomic projections 2016–2017]: Lima, Peru, Banco 59% of the total natural gas liquids production, which included Central de Reserva del Perú, March, 123 p. (Accessed March 30, 2016, at Blocks 88, 56, and 57. Blocks 88 and 56, which were operated http://www.bcrp.gob.pe/docs/Publicaciones/Reporte-Inflacion/2016/marzo/ reporte-de-inflacion-marzo-2016.pdf.) by Pluspetrol, also accounted for 54% and 35%, respectively, Barrick Gold Corp., 2016a, Annual report 2015: Toronto, Ontario, of total natural gas production. In 2015, a total of 87 wells were Canada, Barrick Gold Corp., 174 p. (Accessed April 27, 2016, at drilled, of which 80 were development wells (Perúpetro S.A., http://www.barrick.com/files/annual-report/Barrick-Annual-Report-2015.pdf.) 2016a, p. 5, 25, 36; 2016b, p. 19–20 28). Barrick Gold Corp., 2016b, Lagunas Norte: Toronto, Ontario, Canada, Barrick Gold Corp. (Accessed April 27, 2016, at http://www.barrick.com/operations/ peru/lagunas-norte/default.aspx.) Reserves and Resources Bear Creek Mining Corp., 2016, Management discussion and analysis for the year ended December 31, 2015: Vancouver, British Columbia, Table 3 lists Peru’s reserves of major minerals. According to the Canada, Bear Creek Mining Corp., 26 p. (Accessed April 27, 2016, at MEM, the country accounted for about 24% of the world’s silver http://www.bearcreekmining.com/i/pdf/fs/2015-Q4-MDA.pdf.) reserves, 22% of molybdenum reserves, 13% of zinc reserves, Bennett, S.M., 2017, Silver: U.S. Geological Survey Mineral Commodity Summaries 2017, p. 152–153. (Accessed April 12, 2018, at 11% of copper reserves, 7% of lead reserves, and 4% of gold https://minerals.usgs.gov/minerals/pubs/commodity/silver/mcs-2017-silve.pdf.) reserves (Ministerio de Energía y Minas, 2016a, p. 31). Brininstool, Mark, 2017, Copper: U.S. Geological Survey Mineral Commodity Summaries 2017, p. 54–55. (Accessed April 12, 2018, at Outlook https://minerals.usgs.gov/minerals/pubs/commodity/copper/mcs-2017-coppe.pdf.) Extractive Industries Transparency Initiative, 2016a, EITI countries: Extractive According to the Central Bank of Peru, the country’s GDP Industries Transparency Initiative Web page. (Accessed April 22, 2016, at is expected to increase by 4.0% in 2016, which is based on https://eiti.org/countries.) Extractive Industries Transparency Initiative, 2016b, The EITI: Extractive higher export growth in the mining sector. The value of the Industries Transparency Initiative Web page. (Accessed April 22, 2016, at contribution of the metal mining and hydrocarbon sectors to the https://eiti.org/eiti.) GDP is projected to increase by 17.0% and 1.0%, respectively. Focus Ventures Ltd., 2016a, Bayovar 12: Vancouver, British Columbia, In 2016, copper production is projected to increase by 38% Canada, Focus Ventures Ltd. (Accessed April 29, 2016, at http://www.focusventuresltd.com/s/Bayovar12.asp.) owing to Cerro Verde’s expansion and higher production Focus Ventures Ltd., 2016b, Financial review—Fiscal year ended levels from Las Bambas, and gold production is projected to November 30, 2015: Vancouver, British Columbia, Canada, Focus Ventures decrease by 7.0% owing to the natural depletion of ore deposits. Ltd. (Accessed May 25, 2016, at http://www.focusventuresltd.com/i/ Hydrocarbon sector production is projected to decrease by 1.0% pdf/FnReview1511.pdf.) George, M.W., 2017 Gold: U.S. Geological Survey Mineral owing mainly to lower international oil prices. Peru continues Commodity Summaries 2017, p. 72–73. Accessed April 12, 2018, at to be on a path of economic growth owing to the country’s https://minerals.usgs.gov/minerals/pubs/commodity/gold/mcs-2017-gold.pdf.) macroeconomic stability and laws that encourage investment Glencore plc, 2016, Annual report 2015: Baar, Switzerland, Glencore by way of new joint ventures and consortia, privatizations, and plc, 202 p. (Accessed April 25, 2016, at http://www.glencore.com/assets/ investors/doc/reports_and_results/2015/GLEN-2015-Annual-Report.pdf.) direct acquisitions. Peru’s legal framework and EITI compliance are likely to continue to be favorable to foreign investments in

16.6 [ADVANCE RELEASE] U.S. GEOLOGICAL SURVEY MINERALS YEARBOOK—2015 Guberman, D.E., 2017, Lead: U.S. Geological Survey Mineral MMG Ltd., 2016b, Solid December quarter production and first copper from Commodity Summaries 2017, p. 96–97. (Accessed April 12, 2018, at Las Bambas: Hong Kong, China, MMG Ltd. press release, January 28. https://minerals.usgs.gov/minerals/pubs/commodity/lead/mcs-2017-lead.pdf.) (Accessed April 22, 2016, at http://www.mmg.com/en/Investors-and-Media/ Hochschild Mining plc, 2016, Annual reports & accounts 2015: London, News/2016/01/28/Solid-December-Quarter-Production-and-First-Copper- United Kingdom, Hochschild Mining plc, April 15, 126 p. from-Las-Bambas.aspx.) Hudbay Minerals Inc., 2016a, 2015 annual and CSR report: Toronto, Ontario, Minsur S.A., 2015a, Memoria anual 2014 [Annual report 2014]: Lima, Peru, Canada, Hudbay Minerals Inc., January 13, 158 p. (Accessed May 25, 2016, Minsur S.A., 74 p. (Accessed April 14, 2016, at http://www.minsur.com/ at http://s1.q4cdn.com/305438552/files/2015/en/_doc/Hudbay_2015_AR_ SiteAssets/pdf/Memoria%20Anual/ESP/A%C3%B1o%202014.pdf.) CSR_Full_Printable.pdf.) Minsur S.A., 2015b, Minsur S.A. and subsidiaries announce consolidated results Hudbay Minerals Inc., 2016b, Hudbay announces 2016 production guidance for the fourth quarter of 2015: Lima, Peru, Minsur S.A., 13 p. and capital and exploration expenditure forecasts: Toronto, Ontario, Newmont Mining Corp., 2016, 2015 annual report and Form 10–K: Greenwood Canada, Hudbay Minerals Inc., January 13. (Accessed May 25, 2016, at Village, Colorado, 196 p. (Accessed April 27, 2016, at http://s1.q4cdn. http://www.hudbayminerals.com/English/Media-Centre/News-Releases/ com/259923520/files/doc_financials/annual/2015/newmont-2015-AR.pdf.) News-Release-Details/2016/Hudbay-Announces-2016-Production-Guidance- Perúpetro S.A., 2016a, Estadistica petrolera 2015 [Oil statistics 2015]: and-Capital-and-Exploration-Expenditure-Forecasts/default.aspx.) Lima, Peru, Perúpetro S.A., 85 p. (Accessed April 28, 2016, at Instituto Geologico Minero y Metalurgico, 2016, Quienes somos [About us]: http://www.perupetro.com.pe/wps/wcm/connect/5b3795c1-e9ed-42db-b1b4- Mininsterio de Energía y Minas Web page. (Accessed April 22, 2016, at bc6d2c6e0e30/ESTADISTICA+PETROLERA+2015-.pdf?MOD=AJPERES.) (http://www.ingemmet.gob.pe/form/plantilla01.aspx?opcion=2.) Perúpetro S.A., 2016b, Memoria annual 2015 [Annual report 2015]: Minera Chinalco Peru S.A., 2016a, Production and revenue: Minera Chinalco Lima, Peru, Perúpetro S.A., March 23, 115 p. (Accessed April 28, 2016, at Peru S.A. Web page. (Accessed April 14, 2016, at http://www.chinalco.com.pe/ http://www.perupetro.com.pe/wps/wcm/connect/390b2fc2-9886-4245-bc8c- en/production-and-revenue.) 32d40d9e138b/Acuerdo+de+Directorio+Memoria+2015.pdf?MOD= Minera Chinalco Peru S.A., 2016b, Toromocho project: Minera Chinalco Peru AJPERES.) S.A. Web page. (Accessed April 14, 2016, at http://www.chinalco.com.pe/ Perúpetro S.A., 2016c, PERUPETRO S.A.—About us: Lima, Peru, Perúpetro en/operations.) S.A. (Accessed April 28, 2016, at http://www.perupetro.com.pe/wps/wcm/ Mininterio de Energía y Minas, 2015a, Anuario minero 2014 [Mining yearbook connect/perupetro/site-en/OurCompany/Cont_AboutUs). 2014]: Lima, Peru, Ministerio de Energía y Minas, April, 153 p. (Accessed Polyak, D.E., 2017, Molybdenum: U.S. Geological Survey Mineral May 25, 2016, at http://www.minem.gob.pe/_publicacion.php?idSector= Commodity Summaries 2017, p. 112–113. (Accessed April 12, 2018, 1&idPublicacion=501.) at https://minerals.usgs.gov/minerals/pubs/commodity/molybdenum/ Ministerio de Energía y Minas, 2015b, Boletin estadistico del subsector mcs-2017-molyb.pdf.) minero—Diciembre [Statistical bulletin of the mining subsector—December]: ProInversión, 2016a, Estadisticas de inversion extranjera [Foreign investment Lima, Peru, Ministerio de Energía y Minas, December, 25 p. statistics]: ProInversión Web page. Accessed March 30, 2016, at Ministerio de Energía y Minas, 2015c, Cartera estimada de proyectos mineros http://www.investinperu.pe/modulos/JER/PlantillaStandard.aspx?are=0&prf= [Estimated portfolio of mining projects]: Lima, Peru, Ministerio de Energía y 0&jer=5652&sec=1.) Minas, Mayo, 55 p. (Accessed April 26, 2016, at http://www.minem.gob.pe/ ProInversión, 2016b, Direct foreign investment balance as capital minem/archivos/file/Mineria/INVERSION/2015/CEP%2005-2015.pdf.) contributions by country of domicile and sector destination: ProInversión Ministerio de Energía y Minas, 2015d, Refinacion—Produccion [Refining— Web page. (Accessed March 30, 2016, at http://www.investinperu.pe/ Production]: Lima, Peru, Ministerio de Energía y Minas, December, default.aspx?ARE=1&PFL=0&sec=17.) 1 p. (Accessed April 13, 2016, at http://www.minem.gob.pe/minem/ ProInversión, 2016c, Direct foreign investment balance as capital archivos/02_%20Produccion%20Dic15.pdf.) contributions by sector of destination 1980-December 2015: ProInversión Ministerio de Energía y Minas, 2016a, Anuario minero 2015 [Mining yearbook Web page. (Accessed March 30, 2016, at http://www.investinperu.pe/ 2015]: Lima, Peru, Ministerio de Energía y Minas, April, 159 p. (Accessed default.aspx?ARE=1&PFL=0&sec=17.) May 25, 2016, at http://www.minem.gob.pe/_publicacion.php?idSector= Shougang Hierro Perú S.A.A., 2015, Memoria annual 2014 [Annual report 1&idPublicacion=524.) 2014]: Lima, Peru, Shougang Hierro Perú S.A.A., 16 p. Ministerio de Energía y Minas, 2016b, Dirección General de Asuntos Ambientales Tolcin, A.C., 2017, Zinc: U.S. Geological Survey Mineral Commodity Mineros [General Directorate of Mining Environmental Affairs]: Lima, Peru, Summaries 2017, p. 192–193. Accessed April 12, 2018, at Ministerio de Energía y Minas, 2 p. (Accessed April 22, 2016, at https://minerals.usgs.gov/minerals/pubs/commodity/zinc/mcs-2017-zinc.pdf.) http://www.minem.gob.pe/minem/archivos/file/institucional/organizacion/ U.S. Census Bureau, 2016a, U.S. exports to Peru from 2006 to 2015 by dgaam.pdf.) 5-digit end-use code: U.S. Census Bureau data. (Accessed April 13, 2016, Ministerio de Energía y Minas, 2016c, Dirección General de la Formalización at http://www.census.gov/foreign-trade/statistics/product/enduse/exports/ Minera [General Directorate of Mining Formalization]: Lima, Peru, c3330.html.) Ministerio de Energía y Minas, 3 p. (Accessed April 22, 2016, at U.S. Census Bureau, 2016b, U.S. imports from Peru from 2006 to 2015 by http://www.minem.gob.pe/minem/archivos/DGFM.PDF.) 5-digit end-use code: U.S. Census Bureau data. (Accessed April 13, 2016, Ministerio de Energía y Minas, 2016d, Dirección General de Mineria [General at http://www.census.gov/foreign-trade/statistics/product/enduse/imports/ Directorate of Mining]: Ministerio de Energía y Minas, 3 p. (Accessed c3330.html.) April 22, 2016, at http://www.minem.gob.pe/minem/archivos/file/ Vale S.A., 2016, Annual report 2015: Rio de Janeiro, Brazil, Vale S.A., 281 p. institucional/organizacion/dgm.pdf.) (Accessed April 14, 2016, at http://www.vale.com/EN/investors/information- MMG Ltd., 2016a, Las Bambas: Hong Kong, China, MMG Ltd. (Accessed market/annual-reports/20f/20FDocs/Vale%2020-F%202015_i.PDF.) April 22, 2016, at http://www.mmg.com/en/Contact-Us.aspx.)

PERU—2015 [ADVANCE RELEASE] 16.7 TABLE 1 PERU: PRODUCTION OF MINERAL COMMODITIES1

(Metric tons unless otherwise specified)

Commodity2 2011 2012 2013 2014 2015 METALS Cadmium, metal 572 684 695 769 757 Copper: Mine output, Cu content thousand metric tons 1,095 r 1,198 r 1,286 r 1,294 r 1,628 Metal: Smelter 299,004 290,088 412,966 314,615 327,909 Refined, primary: Electrowon 140,341 101,174 89,658 83,800 73,091 Electrolytic 227,320 210,119 271,792 263,597 r 279,869 Total 367,661 311,293 361,450 347,397 352,960 Gold:3 Mine kilograms 143,697 r 150,132 r 136,088 r 132,230 r 132,857 Placer do. 22,490 11,412 15,398 7,867 12,175 Total do. 166,187 r 161,544 r 151,486 r 140,097 r 145,032 Indium do. 2,499 11,080 11,000 e 11,000 e 11,000 e Iron and steel: Iron ore and concentrate: Gross weight thousand metric tons 10,626 10,132 10,126 10,731 10,908 Fe content do. 7,123 6,792 6,788 7,193 7,321 Metal:4 Direct-reduced iron do. 94 98 93 88 76 Steel: Crude do. 877 981 1,069 1,078 1,086 Hot-rolled products do. 926 1,211 1,367 1,372 1,370 e Lead: Mine output, Pb content 230,199 248,659 266,263 277,153 r 315,784 Metal -- -- 467 142 -- Molybdenum, mine output, Mo content 19,141 16,790 18,140 17,018 20,153 Selenium, metal, refinede kilograms 59,000 r 54,000 r 42,000 r 40,000 r 40,000 Silver: Mine output, Ag content 3,192 r 3,246 r 3,407 r 3,459 r 3,670 Metal, refined 171 159 163 183 190 Tin: Mine output, Sn content 28,882 26,105 23,688 23,105 19,511 Metal 32,290 24,811 24,181 24,462 20,396 Tungsten, metal5 439 276 35 r 77 139 Zinc: Mine output, Zn content 1,256,383 1,280,949 1,350,874 1,315,215 r 1,421,523 Metal 313,714 319,280 346,362 336,454 335,422 INDUSTRIAL MINERALS Barite 87,848 79,451 52,491 106,071 28,407 Boron materials, crude (borates) -- 104,072 224,454 239,725 662,709 Cement, hydraulic thousand metric tons 8,500 e 9,500 e 10,527 10,676 10,410 Chalke 322,000 6 321,711 6 322,000 322,000 322,000 Clay: Bentonite 27,534 22,977 47,743 37,375 21,341 Kaolin 18,169 34,585 32,249 19,964 43,251 Common clay 1,021,502 1,098,267 1,291,939 1,273,154 1,419,778 Diatomite 10,100 93,996 124,917 151,398 120,672 Feldspar 11,645 26,359 22,695 18,019 16,979 Gypsum, crude 481,770 390,705 297,527 543,856 438,025 Phosphate rock: Crude, gross weight thousand metric tons 2,544 r 3,209 r 3,546 r 3,801 r 3,881 r r r r P2O5 content do. 774 975 1,075 1,155 1,180 Salt, all types 1,565,000 1,199,585 1,205,435 1,175,157 1,471,131 See footnotes at end of table.

16.8 [ADVANCE RELEASE] U.S. GEOLOGICAL SURVEY MINERALS YEARBOOK—2015 TABLE 1—Continued PERU: PRODUCTION OF MINERAL COMMODITIES1

(Metric tons unless otherwise specified)

Commodity2 2011 2012 2013 2014 2015 INDUSTRIAL MINERALS—Continued Stone and sand and gravel: Stone: Limestone thousand metric tons 11,594 16,306 16,650 21,986 24,662 Marble -- 16,335 225 557 707 Onyx 14,455 3,578 11,873 370 158 Quartz and quartzite (crushed) 92,148 r 88,508 r 74,081 r 47,491 84,854 Slate 18,165 33,948 97,630 77,847 65,593 Travertine 126,200 149,202 245,875 394,478 567,686 Sand and gravel: Stone (construction) thousand metric tons 4,374 5,343 7,227 9,993 9,391 Sand do. 1,070 1,292 891 1,213 1,874 Talc 28,296 31,559 32,899 28,847 26,781 MINERAL FUELS AND RELATED MATERIALS Coal: Anthracite, run-of-mine 76,928 123,771 88,985 97,889 143,208 Bituminous, run-of-mine 105,553 102,587 99,606 131,323 108,580 Total 182,481 226,358 188,591 229,212 251,788 Natural gas: Gross7 million cubic meters 11,360 11,859 12,192 12,923 12,494 Marketede do. 3,523 6 3,678 6 3,800 4,000 r 3,900 Natural gas liquids7 thousand 42-gallon barrels 30,354 31,596 38,187 37,767 33,360 Petroleum:7 Crude do. 25,387 24,396 22,956 25,296 21,173 Refinery products:7 Liquefied petroleum gas do. 2,221 2,196 1,983 2,151 2,190 Gasoline, motor do. 14,037 13,773 12,580 13,349 9,754 Jet fuel do. 5,200 5,851 5,408 5,835 4,840 Kerosene do. 64 ------Distillate fuel oil do. 30,979 28,798 26,414 28,336 24,100 Lubricants do. 281 250 253 227 260 Residual fuel oil do. 9,207 7,104 7,836 8,741 10,680 Asphalt do. 1,436 1,504 1,424 1,710 1,480 Total do. 63,425 59,476 55,898 60,349 53,304 eEstimated; estimated data are rounded to no more than three significant digits; may not add to totals shown. rRevised. do. Ditto. -- Zero. 1Table includes data available through May 3, 2016. 2Source: Ministerio de Energía y Minas del Perú, Anuario Minero, 2015. 3Peru's placer gold production was reported. 4Source: Worldsteel Association. 5Source: Malaga Inc., 2011–2012. 6Reported figure. 7Sources: Banco Central de Reserva del Perú, Memoria, 2014; Ministerio de Energía y Minas del Perú, Anuario Estadistico de Hidrocarburos, 2014; and Perupetro S.A., Estadistica Petrolera 2015.

PERU—2015 [ADVANCE RELEASE] 16.9 TABLE 2 PERU: STRUCTURE OF THE MINERAL INDUSTRY IN 2015

(Thousand metric tons unless otherwise specified)

Annual Commodity Major operating companies and major equity owners Location of main facilities capacitye Andalusite Andalucita S.A. (private, 100%) Paita, Piura Region 60 Antimony metric tons Doe Run Perú S.R.L. (Doe Run Co., 100%) Smelter at La Oroya, Junin Region 700 Bentonite Minera Doña Herminia S.A. Amatape, Piura Region NA Bismuth metric tons Doe Run Perú S.R.L. (Doe Run Co., 100%) Refinery at La Oroya, Junin Region 1,000 Cadmiun Votorantim Metais - Cajamarquilla S.A. (Grupo Refinery at Cajamarquilla, Lima Region 700 Votorantim Metais S.A., 99%, and employees, 1%) Cement Caliza Cementos Inca S.A.(private, 100%) Cajamarquilla plant, Lima Region 400 Do. S.A.A. (private, 100%) Pacasmayo plant, La Libertad Region 2,900 Do. Cementos Selva S.A. (Cementos Pacasmayo S.A.A.) Rioja plant, San Martin Region 440 Do. Cementos Sur S.A. (private, 100%) Arequipa plant, Arequipa Region 340 Do. Union Andina de Cementos S.A.A. (private, 100%) Atocongo plant, Lima Region 5,500 Do. do. Condorcocha plant, Junin Region 2,100 Do. Yura S.A. (private, 100%) Yura plant, Arequipa Region 3,000 Copper Compañía Minera Antamina S.A. (BHP Billiton Antamina Mine, Ancash Region 500 plc, 33.75%; Glencore plc, 33.75%; Teck Cominco Ltd., 22.5%; Mitsubishi Corp., 10%) Do. Compañía Minera Condestable S.A. (Southern Peaks Condestable Mine, Lima Region 25 Mining LP, 98.7%) Do. Compañía Minera Milpo S.A. (Votorantim Metais - El Porvenir Mine, Pasco Region; 40 Cajamarquilla S.A. , 49.89%) Cerro Lindo Mine, Ica Region Do. Doe Run Peru S.R.L. (Doe Run Co., 100%) Cobriza Mine, Huancavelica Region 20 Do. do. Smelter at La Oroya, Junin Region 70 Do. do. Refinery at La Oroya, Junin Region 80 Do. Empresa Minera Los Quenuales S.A. (Glencore plc, Iscaycruz and Yauliyacu Mines, 7 97.6%) Lima Region Do. Compañia Minera Antapaccay S.A. (Glencore plc, 100%) Antapaccay Mine, Cusco Region 220 Do. Gold Fields La Cima S.A. (Gold Fields Ltd., 99.53%) Cerro Corona Mine, Cajamarca Region 40 Do. HudBay Peru S.A.C (Hudbay Minerals Inc., 100%) Constancia Mine, Cusco Region 130 Do. Minera Chinalco Perú S.A. [Aluminum Corporation of Toromocho open pit, Morococha 200 China (CHINALCO), 100%] District, Junin Region Do. Southern Copper Corp. (Grupo Mexico S.A.B. de C.V., Cuajone Mine, Moquegua Region; 200 84.6%) , Tacna Region Do. do. Smelter at Ilo, Moquegua Region 360 Do. do. Refinery at Ilo, Moquegua Region 360 Do. Sociedad Minera Cerro Verde S.A.A. (Freeport-McMoRan Cerro Verde Mine, Arequipa Region 300 Inc., 53.56%; Sumitomo Metal Mining Co. Ltd., 21%; Compañía de Minas Buenaventura S.A.A., 19.58%; others, 5.86%) Do. Sociedad Minera El Brocal S.A.A. (private, 100%) Tajo Norte Mine, Pasco Region 30 Gold kilograms Arasi S.A.C. (private 100% La Rescatada Mine, Lampa, Puno Region 3,000

Do. do. Aruntani S.A.C. (private, 100%) Tucari Mine, Moquegua Region 5,000 Do. do. Compañía de Minas Buenaventura S.A.A. (private, 100%) Orcopampa Mine, Arequipa Region; 8,500 and Breapampa Mine, Ayacucho Region Do. do. Compañía Minera Aurífera Santa Rosa S.A. (private, 100%) Santa Rosa Mine, Arequipa Region 5,000 Do. do. Compañia Minera Caraveli S.A., 100% Caraveli Mine, Arequipa Region 1,100 Do. do. Compañía Minera Coimolache S.A. (Compañía de Minas Tantahuatay Mine, Hualgayoc, 4,000 Buenaventura S.A.A., 40%; Southern Copper Corp., 44%; Carjamarca Region ESPRO SAC, 16%) Do. do. Compañía Minera Poderosa S.A. (private, 100%) Poderosa, La Libertad Region 4,000 Do. do. Consorcio Minero Horizonte S.A. (private, 100%) Parcoy, La Libertad Region 6,000 Do. do. Gold Fields La Cima S.A. (Gold Fields Ltd., 99.53%) Cerro Corona, Cajamarca Region 6,000 Do. do. Hochschild Mining plc, 100% Inmaculada Mine, Acaycucho Region 3,500 See footnotes at end of table.

16.10 [ADVANCE RELEASE] U.S. GEOLOGICAL SURVEY MINERALS YEARBOOK—2015 TABLE 2—Continued PERU: STRUCTURE OF THE MINERAL INDUSTRY IN 2015

(Thousand metric tons unless otherwise specified)

Annual Commodity Major operating companies and major equity owners Location of main facilities capacitye Gold— kilograms La Arena S.A. (Rio Alto Mining Ltd., 100%) La Arena Mine, Sanchez Carrion, 6,200 Continued La Libertad Region Do. do. Minera Aurífera Retamas S.A. (private, 100%) Retamas Mine, La Libertad Region 5,000 Do. do. Minera Barrick Misquichilca S.A. (Barrick Gold Corp., Pierina Mine, Ancash Region; 36,000 1 100%) Lagunas Norte Mine, La Libertad Region Do. do. Minera La Zanja S.R.L. (Compañía de Minas Buenaventura La Zanja Mine, Cajamarca Region 4,000 S.A.A., 53.06%, and Newmont Mining Corp., 46.94%) Do. do. Minera Yanacocha S.R.L. (Newmont Mining Corp., Yanacocha Mine, Cajamarca Region 130,000 51.35%; Compañía de Minas Buenaventura S.A.A., 43.65%; International Finance Corp., 5%) Iron ore Shougang Hierro Perú S.A.A. (Shougang Corp., 98.52%) Marcona Mine, Ica Region 10,000 Lead Compañía de Minas Buenaventura S.A.A. (private, 100%) Julcani Mine, Huancavelica Region; 50 and Mallay and Uchucchacua, Lima Region Do. Compañía Minera Antamina S.A. (CMA) (BHP Billiton Antamina Mine, Ancash Region 5 plc, 33.75%; Glencore plc, 33.75%; Teck Cominco Ltd., 22.5%; Mitsubishi Corp., 10%) Do. Compañía Minera Atacocha S.A. (Grupo Milpo, 88.19%) Atacocha Mine, Pasco Region 15 Do. Compañia Minera Casapalca S.A, (private, 100%) Huarochi, Lima Region 6 Do. Compañía Minera Milpo S.A. (Votorantim Metais - El Porvenir Mine, Pasco Region 33 Cajamarquilla S.A., 49.89%) and Cerro Lindo Mine, Ica Region Do. Compañía Minera Raura S.A. (private, 100%) Raura, Lima Region 15 Do. Compañía Minera San Ignacio de Morococha S.A. San Vicente Mine, Junin Region 4 (private, 100%) Do. Compañía Minera Santa Luisa S.A. (private, 100%) Huanzalá Mine, Junin Region 9 Do. Doe Run Peru S.R.L. (Doe Run Co., 100%) Smelter at La Oroya, Junin Region 150 Do. do. Refinery at La Oroya, Junin Region 125 Do. Empresa Administradora Chungar S.A.C. (Volcan Compañía Animon Mine, Pasco Region 30 Minera S.A.A., 100%) Do. Empresa Minera Los Quenuales S.A. (Glencore plc, Iscaycruz and Yauliyacu Mines, 13 97.6%) Lima Region Do. Sociedad Minera Corona S.A. (Sierra Metals Inc., 82%) Yauricocha Mine, Yauyos, Lima Region 20 Do. Sociedad Minera El Brocal S.A.A. (Compañía de Minas Tajo Norte Mine, Pasco Region 22 Buenaventura S.A.A., 54.07%) Do. Volcan Compañía Minera S.A.A. (private, 100%) Mine, Pasco 48 Region; Andaychagua, Carahuacra, San Cristobal, and Ticlio Mines, Junin Region Molybdenum Compañía Minera Antamina S.A. (BHP Billiton plc, 33.75%; Antamina Mine, Ancash 7 Glencore plc, 33.75%; Teck Cominco Ltd., Region 22.5%; Mitsubishi Corp., 10%) Do. Minera Chinalco Perú S.A. [Aluminum Corporation of Toromocho open pit, Morococha 10 China (CHINALCO), 100%] District, Junin Region Do. Sociedad Minera Cerro Verde S.A.A. (Freeport-McMoRan Cerro Verde Mine, Arequipa Region 6 Copper and Gold Inc., 53.56%; Sumitomo Metal Mining Co. Ltd., 21%; Compañía de Minas Buenaventura S.A.A., 19.58%; others, 5.86%) Do. Southern Copper Corp. (Grupo Mexico S.A.B. de Cuajone Mine, Moquegua Region and 12 C.V., 84.6%) Toquepala Mine, Tacna Region Natural gas thousand cubic Aguaytia Energy del Peru S.R.L., 100% Block 31–C, Ucayali Region 410 meters per day Do. do. GMP S.A. (Grupo Graña y Montero, 100%) Block 1, Talara Basin 160 Do. do. Pluspetrol Peru Corp. (Pluspetrol S.A.) Blocks 56 and 88, Ucayali Basin 32,300 Do. do. Petróleo Brasileiro S.A. Block X, Talara Basin 190 See footnotes at end of table.

PERU—2015 [ADVANCE RELEASE] 16.11 TABLE 2—Continued PERU: STRUCTURE OF THE MINERAL INDUSTRY IN 2015

(Thousand metric tons unless otherwise specified)

Annual Commodity Major operating companies and major equity owners Location of main facilities capacitye Petroleum, crude 42-gallon China National Petroleum Corp. (CNPC) Peru S.A. Block X, Talara Basin 11,600 barrels per day [China National Petroleum Corp. (CNPC), 100%] Do. do. Perenco Peru Petroleum Ltd. (Perenco Group, 50%) Block 67, Marañon Basin 6,000 Do. do. Pluspetrol Norte S.A. (Pluspetrol S.A., 60%) Block 8, Marañon Basin 10,000 Do. do. do. Block 1–AB, Marañon Basin 15,000 Do. do. Savia Peru S.A, 100% Block Z-2B, Punta Laguna 10,000 Petroleum products do. Refinería La Pampilla S.A. (Repsol YPF, 51.03%) La Pampilla refinery, Lima Region 102,000 Do. do. PETROPERÚ S.A. Talara refinery, Piura Region 65,000 Do. do. do. Conchan refinery, Lima Region 15,500 Do. do. do. Iquitos refinery, Loreto Region 12,000 Do. do. do. Pucallpa refinery, Ucayali Region 3,300 Do. do. do. El Milagro refinery, Amazonas 2,000 Region Do. do. Pluspetrol S.A. Shiviyacu refinery, Loreto Region 5,000 Phosphate rock Compañia Minera Miski Mayo S.R.L. (Vale S.A., 40%; Bayovar Mine, Piura Region 3,900 Mosaic Co., 35%; Mitsui & Co., Ltd., 25%) Silver metric tons Empresa Minera Los Quenuales S.A. (Glencore plc, Izcaycruz and Yauliyacu Mines, Lima 100 97.6%) Region Do. do. Empresa Administradora Chungar S.A.C. (Volcan Compañía Animon Mine, Pasco Region 200 Minera S.A.A., 100%) Do. do. Compañía Minera Ares S.A.C. (Holchschild Minig Plc, Arcata Mine, Arequipa Region and 200 100%) Pallancata Mine, Ayacucho Region Do. do. Compañía de Minas Buenaventura S.A.A. (private, 100%) Julcani Mine, Huancavelica Region; 500 Mallay and Uchuacchacua Mines, Lima Region; Breapampa Mine, Ayacucho Region; and Orcopampa Mine, Arequipa Region Do. do. Volcan Compañía Minera S.A.A. (private, 100%) Cerro de Pasco Mine, Pasco 300 Region; Andaychagua, Carahuacra, San Cristobal, and Ticlio Mines, Junin Region Do. do. Compañía Minera Milpo S.A. (Votorantim Metais - El Porvenir Mine, Pasco 150 Cajamarquilla S.A. , 49.89%) Region; Cerro Lindo Mine, Ica Region Do. do. Compañía Minera Antamina S.A. (BHP Billiton plc, 33.75%; Antamina Mine, Ancash Region 500 Glencore plc, 33.75%; Teck Cominco Ltd., 22.5%; Mitsubishi Corp., 10%) Do. do. Hochschild Mining plc, 100% Inmaculada Mine, Acaycucho Region 120 Do. do. Pan American Silver Corp., 100% Huaron Mine, Pasco Region 100 Do. do. Pan American Silver Corp., 92.3% Morococha Mine, Junin Region 100 Do. do. Doe Run Perú S.R.L. (Doe Run Co., 100%) Refinery at La Oroya, Junin Region 1,100 Do. do. Southern Copper Corp. (SPCC) (Grupo Mexico S.A.B. de Ilo smelting and refining, Moquegua 150 C.V., 84.6%) Region Steel Empresa Siderurgica del Peru S.A.A. (Gerdau S.A.) Chimbote, Ancash Region 650 Do. Empresa Laminadora del Pacífico S.A. Pisco, Ica Region 360 (Acero Arequipa S.A., 100%) Tellurium metric tons Doe Run Perú S.R.L. (Doe Run Co., 100%) Refinery at La Oroya 12 Tin do. Minsur S.A. (private 100%) San Rafael Mine and plant, Puno Region 30,000 Do. do. do. Pisco smelting and refining, Ica Region 45,000 Tungsten do. Malaga Inc. Pasto Bueno, Ancash Region NA 2 Zinc Compañía de Minas Buenaventura S.A.A. (private, 100%) Mallay and Uchuccchacua Mines, Lima 25 Region Do. Compañía Minera Antamina S.A. (CMA) (BHP Billiton Antamina Mine, Ancash Region 300 plc, 33.75%; Glencore plc, 33.75%; Teck Cominco Ltd., 22.5%; Mitsubishi Corp., 10%) Do. Compañía Minera Atacocha S.A. (Grupo Milpo, 88.19%) Atacocha Mine, Pasco Region 50 See footnotes at end of table.

16.12 [ADVANCE RELEASE] U.S. GEOLOGICAL SURVEY MINERALS YEARBOOK—2015 TABLE 2—Continued PERU: STRUCTURE OF THE MINERAL INDUSTRY IN 2015

(Thousand metric tons unless otherwise specified)

Annual Commodity Major operating companies and major equity owners Location of main facilities capacitye Zinc—Continued Compañia Minera Casapalca S.A, (private, 100%) Huarochi, Lima Region 40 Do. Compañía Minera Milpo S.A. (Votorantim Metais - El Porvenir Mine, Pasco Region; 210 Cajamarquilla S.A., 49.89%) Cerro Lindo Mine, Ica Region Do. Compañía Minera Raura S.A. (private, 100%) Raura, Lima Region 25 Do. Compañía Minera San Ignacio de Morococha S.A. San Vicente Mine, Junin Region 40 (private, 100%) Do. Compañía Minera Santa Luisa S.A. (private, 100%) Huanzalá Mine, Junin Region 35 Do. Doe Run Perú S.R.L. (Doe Run Co., 100%) Refinery at La Oroya 80 Do. Empresa Administradora Chungar S.A.C. (Volcan Compañía Animon Mine, Pasco Region 112 Minera S.A.A., 100%) Do. Empresa Minera Los Quenuales S.A. (Glencore plc, Izcaycruz and Yauliyacu Mines, 120 97.6%) Lima Region Do. Sociedad Minera El Brocal S.A.A. (Compañía de Minas Tajo Norte Mine, Pasco Region 90 Buenaventura S.A.A., 54.07%) Do. Sociedad Minera Corona S.A. (Sierra Metals Inc., 81.80%) Yauricocha Mine, Lima Region 25 Do. Volcan Compañía Minera S.A.A. (private, 100%) Cerro de Pasco Mine, Pasco Region; 225 Andaychagua, Carahuacra, San Cristobal, and Ticlio Mines, Junin Region Do. Votorantim Metais - Cajamarquilla S.A. (Grupo Refinery at Cajamarquilla, Lima Region 320 Votorantim Metais S.A., 99%, and employees, 1%) eEstimated; estimated data are rounded to no more than three significant digits. Do., do. Ditto. NA Not available. 1Barrick Gold Corp. initiated closure activites at the Pierina Mine in August 2013. 2Placed on care-and-maintenance status.

TABLE 3 PERU: RESERVES OF MAJOR MINERALS IN 20151, 2

(Thousand metric tons unless otherwise specified)

Commodity Reserves Coal, all types 1,250,000 e Copper 80,745 Gold metric tons 2,394 Iron ore 1,451,823 Lead 6,294 Molybdenum 2,856 Natural gas trillion cubic meters 596 Natural gas liquids million barrels 1,016 Petroleum crude do. 1,045 Phosphate rock 820,000 Salt 100,000 e Silver metric tons 127,154 Sulfur 150,000 e Tin 102 Uranium 100 e, 3 Zinc 24,997 eEstimated; estimated data are rounded to no more than three significant digits. do. Ditto. 1 Proven and probable. 2Sources: Ministerio de Energía y Minas del Perú: Anuario Minero, 2015; and Libro Annual de Reservas de Hidrocarburos, 2014. 3Recoverable at prices of $100 or less per kilogram of uranium.

PERU—2015 [ADVANCE RELEASE] 16.13