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Industry –Mining
September 12, 2016
Naoyuki TSUCHIDA
Sumitomo Metal Mining Co., Ltd.
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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
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Metals and Mineral Products in Peru and Trade of Mineral Products between Peru and Japan
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Mining53.9%
Husbandry
Petroleum & Natural Gas
Fishing
Chemicals
Textile
Others
Peru's exports by industry
Copper Concentrate
6,608
Gold5,654
Copper Cathode1,503
Zinc Concentrate1,202
Lead1,086
Others
Mining Exports (USm$)
Chile
Indonesia
Peru11.7%
Canada
Australia
Others
Japan's copper concentrate imports by country
Australia
Bolivia
Peru20.0%
USA
Mexico
Others
Japan's zinc concentrateimports by country
China
AustraliaPeru10.3%
USA
India
Mexico
Bolivia
Kazakhstan
CanadaIreland
Others
Zinc
Chile
China
Peru8.5%
USACongo
Australia
Russia
Zambia
Canada
Mexico
Others
Copper
Source : USGS Mineral Commodity Summaries 2016 Source : SUNAT Estadisticas de comercio exterior Source : Ministry of Finance, Trade Statistics of Japan
Investment by Japanese companiesin Mining sector
Operation mine
Antamina Mitsubishi Corporation 10.0% Cu 412ktZn 298kt
Huanzalá Mitsui Mining & Smelting 100% Zn 27ktPb 7kt
Cerro Verde Sumitomo Metal MiningSumitomo Corporation
16.8% 4.2%
Cu 256ktMo 3kt
Development project
Atalaya Mitsui Mining & Smelting 100% Zn, Pb
Quechua Pan Pacific Copper 100% Cu
Quellaveco Mitsubishi Corporation 18.1% Cu
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.
Antamina
Huanzalá
Cerro Verde
Atalaya
Zafranal
Quellaveco
Quechua
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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
5
kt
0
100
200
300
2013 2014 2015 2018 2021
Cu Annual Production Interest
Target
300 kt
170 kt
280 kt
0
10
20
30
2013 2014 2015 2018 2021
t
Au Annual Production
30 t
16 t
Target
15 t
kt
0
50
100
150
2013 2014 2015 2018 2021
Ni Annual Production Capacity
100 kt
150 kt
Target
120 kt
SMM’s Mineral Resources Projects
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Gold Mine
Copper MineNickel Mine and Refinery
Office
Figesbal (New Caledonia)
Taganito (Philippine)
Coral Bay(Philippine)
Soroako (Indonesia)
Northparkes (Australia)
Hishikari (Japan)
Cerro Verde (Peru)Sierra Gorda (Chile)
Candelaria and Ojos del Salado (Chile)
Morenci (Arizona, USA)
Pogo (Alaska, USA)
Vancouver
Lima
Sydney
São Paulo
Santiago
Tokyo
Seattle
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 ↗ 500ktpaDirect employment 2,600 ↗ 4,200
7Approx. 500m
Secondary and tertiary crusher
Fine ore bin
Contributions to Local Communitiesby 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
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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.
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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
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¡ Mil gracias y Bienvenidos al Japón !
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