Michele Villegas VassalloProcurement & Contracts Superintendent

Supply at Antamina

Antamina

AntaminaPunta Lobitos

- Mine site: Eastern Andes,

between 4,300 and 4,700 m.

- Port site: Western range of the

Andes.

Antamina: a world class operationAntamina: a world class operation

Antamina

• World Class Project:

– Long life 20 + years with upside potential.

– 3rd world largest producer of Cu/Zn

concentrates.

– Second largest producer of Zn concentrate in

Peru.

– First largest producer of Cu concentrate in

Peru.

Antamina

Increased:

Peruvian mining

exports by 30%

Peruvian GDP by 0.8%

Involved:

Regional infrastructure

development

Permitted:

Enhanced regional

development

Mine360,000 tonnes of material removed per day

•51 CAT793 trucks (240 tons)

•4 BE shovels

•5 BE drills

• Primary Crusher - Fuller

Concentrator

85,000 tonnes of concentrate per day

• 1 SAG mill

• 3 Ball mills

Tailings Dump

Pipeline

• 302 km long• By gravity• Five valves stations• 10”, 9” & 8” pipe underground • Three pumps

“Punta Lobitos” Port

• Filter Plant – Larox

• Shiploader – Man Takraf

Supply

Supply Vision

We are recognized as an example of supply excellence in the mining sector and contributed to the economic and social fortification of the country

by means of the joint development with our strategic partners and their suppliers.

Somos reconocidos como un ejemplo de excelencia

logística en el sector minero mundial y contribuimos al

fortalecimiento económico y social del país mediante

el desarrollo conjunto con nuestros socios

estratégicos y sus proveedores.

Supply Mission

We are responsible for the opportune and efficient supplying of goods and services to assure the

continuity the Antamina operations, anticipating changes and tendencies of the market, offering

specialized advice to our internal clients. We shared Antamina´s standard in safety,

environmental care and relations with the communities, acting with integrity and ethics.

Guiding principles

• Responding to customer needs.• Zero harm is our way of life.• Continuos improvement is the way we do

business.• Compliance and ethics are non-negotiable.• We continuously learn from each other.• We treat suppliers with respect. • We live Antamina values.

Supply - Antamina

Supply Manager

Procurement & Contracts

Warehousing & Inventory Control

Purchasing Contracts Strategic Supply

5 Purchasing GroupsMarket Intelligence

Vendor ManagementProcesses &Systems

3 warehouses

Supply Process

Materials planning (user or

warehouse)

Purchase Order

PO Follow up

Local shipping (supplier or

3PL)

In-Transit whse LimaFinal

warehouse

Created & approved requisition

Quoting / Tendering

Forwarder´s whse

Customs Clearance

ERP (INTEGRATED INFORMATION SYSTEM)

Transport to final destiny

Some supply numbers

• Total spend 2007: US$ 355 MM

Under contracts

With no contract

Through contracts

Peru

Abroad

By supplier origin

Perú

100% 90%

76%

56%

By type

Goods

Services

Inventory 79%

DCh 21%

Goods distribution

Our practices

• Development of cross-funtional teams

• Market intelligence for strategic commodities

• Increase contract spend

• Understanding and classifying supplier relationships

• Supplier performance management

• Sharing opportunities and risks with suppliers to optimise value

• Supply performance measurement

• Our workflow is supported by appropiate technology.

Thanks