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Doe Run Peru Asset Sale Cobriza Mine
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Doe Run Peru Asset Sale
Cobriza Mine
Doe Run Peru – Cobriza Mine
Accesibility :
High poten�al to increase capacity to 9,100 tpd of oreAverage January to September - 2017
Cobriza’s communicability is one of its principal advantages. The mine can be accessed via well-maintained highways and road systems. The routes of access are Lima - Huancayo - Cobriza and Lima - Ayacucho - Cobriza.
The Cobriza underground mine is located southeast of Lima on the western flank of the Andes and on the le� bank of the Mantaro river in the Churcampa province, region of Huancavelica, at the following coordinates: E 564 000, N 8 609 000 and between 2,100 y 2,700 m.a.s.l. The area’s climate is temperate, which facilitates mining ac�vity on a year-round basis with few interrup�ons.
Cobriza Mine Key DataProduction
100 % DRP
Underground
2.20
Stage
Ownership
Mine Type
Mine Life (years)
Throughput (tpd)
Cobriza Mine Location:
Peru is a leader in global mining with a long history of rich deposits and profitable ventures. Cobriza mine, which has been opera�ng for more than 50 years, has been an important contribu-tor to the country’s mining legacy as a consolidated producer of copper and silver. This underground mine is highly mechanized and its installa�ons provide
an op�mal pla�orm for exploita�on and sustained growth.
Cash cost (US$ /Lb)
2
~13
1
2
1
2
4,200
(*) Es�mate October, November and December
Reserves (million tons)
9.3 9.2 10.1
13.3 13.9
16.617.7 18.4
20.6 20.819.5
0
5
10
15
20
25
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
In terms of shipping, 100 % of Cobriza’s products are currently exported through the Port of Callao, one of the La�n America’s premier mari�me transport and service hubs.
STRETCH DISTANCE ROAD TYPE
Total 516 km
178 km (4 ½ hours)
132 km (2 hours)
80 Km (2 hours)
100 km (3 ½ hours)
10 km (1/2 hours)
Paved
Paved
Paved and packed dirt
Packed dirt
Packed dirt
Lima (Callao)
La Oroya
Huancayo
Pampas
Detour to the mine
La Oroya
Huancayo
Pampas
Detour to the mine
Mine
Production:The mine has been producing copper since the late 1960s. It currently processes 4,200 tons per day of ore but has high poten�al, when opera�ng at full capacity, to generate 9,100 tons per day. We are confident that on-going explora�on on concession sites has the poten�al to significantly increase the current 13-year life span projected for the mine. Cobriza’s rock mass is highly competent, which significantly reduces the cost of sustaining the mine’s structure. The mineral processing circuit’s modular design adapts efficiently to varia�ons in produc�on requirements, providing the operator with flexibility to respond to changes in the market. Cobriza generates high-quality concentrates that carry low penal�es for impuri�es and offer good copper content. When working at mineral treatment levels of 6,500 tpd, average yearly copper produc�on at the mine was situated at 20,000 tons.
Fine Copper Produc�on (tons)
20,68718,437 19,667 20,327 20,258 19,661
21,201 20,334
13,199 12,448
0
5,000
10,000
15,000
20,000
25,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017(*)
Mineral resources and reserves :The last external audited reserve and resource statement for Cobriza (2014) includes total resources of 46.7 million tons with an average of 0.95% copper and 18.03 g/t silver. 19.5 million tons of Cobriza’s reserves, with levels of 1.08% copper and 22.36 g/t silver on average, are NI 43-101 compliant.
3Doe Run Peru – Cobriza Mine
Concessions and exploration :
Water:
Cobriza’s electric energy supply is from the na�onal interconnected power system (SEIN), grid reference: Mantaro 220 KV.
The primary sources of Cobriza’s water supply are: Huaribamba and Mantaro rivers and the Lucmayo stream.
Energy:
SITE CONCESSIONS Ha PROJECT ACTIVITY
Other
TOTAL 58 51896
Outside ofCobriza
6 4,800 Cobriza Mine Exploitation / Exploration
6 6000 Pukatoro Exploration
11 9600 No projects No activity
20 19000 Nieve Nieve Exploration
Inside ofCobriza 15 12,496 Choccec Exploration
Internal and third party explora�on studies a�est to the fact that our concession areas have considerable poten�al. Only 6 concessions (4,800 hectares) are currently mined. Explora�on work has been conducted primarily in the Jampato, Pukatoro and Choccec areas.
Currently, tailings are deposited on the surface (20%) and inside the mine through hydraulic filling (80%). Construc�on of phase IV of the Chacapampa deposit is underway (Capacity IV and V stage, 3.0 MM m3), which will help assure opera�onal con�nuity at the mine. Studies have been conducted to build deposits with a capacity of 15.7 MM m3 (es�mated) in the Parco zone.
Tailings Management
4 Doe Run Peru – Cobriza Mine
Corporate Social Responsibility:
All of the environmental adapta�on projects, known as ex Pama projects, have been successfully completed to op�mize tailings, solid waste, waste and mine water treatment manage-ment. Ministerial resolu�on N° - 991-2009-MEM/DGM cer�fies that Cobriza has complied with all norma�ve requirements to limit and mi�gate contamina�on.
Cobriza has a commi�ed and experienced management and technical team with ample know-how.
Cobriza enjoys ample social license in its areas of influence. Over the years the mine has built excellent rela�ons with workers and communi�es in its opera�ng areas and beyond. Our focus is on empowerment rather than assisten�alism, which we believe provides the best pla�orm for sustainable growth. Cobriza has engaged in numerous successful ini�a�ves in the educa�on, health, forest development and livestock sectors.
Environmental Responsibility : Experienced Management and Technical Team:
5Doe Run Peru – Cobriza Mine
Pablo Peschiera Insolvency Administrator
+51 987 582 310 [email protected]
Oscar Zapata Asset Sale Director +51 948 400 589
Kathleen Gallagher Investor Rela�ons
+51 998228887 [email protected]
Cobriza: Expansion of Pampa de Coris - Churcampa - Huancavelica.
Doe Run Peru will be seeking Expressions of Interest from interested par�es to acquire Cobriza Mine (UMC). Par�es with an interest in par�cipa�ng in the process must purchase the Bases and sign a confiden�ality agreement.
Any ques�ons should be directed to the representa�ves of Dirige listedbelow. Under no circumstances should Doe Run Peru or its shareholders, employees, representa�ves, customers, creditors or suppliers be contacted directly.
Expression of Interest - Process Overview
6 Doe Run Peru – Cobriza Mine
Schedule and Prices for the Asset Sale
The conven�onal price for the auc�on is: US$ 146,611,000.00. In the first round, this figure is cut by 2/3 to establish the base price. In the second round, the base price is cut by 15%. In the third round, the price set for the second auc�on is cut by 15%.
This document contains informa�on pertaining to the business and opera�ons of Doe Run Peru. This Document has been prepared by the Company to inform par�es that may be interested in execu�ng a sales transac�on involving the Company. The sole purpose of this Document is to assist recipients in deciding whether they wish to further inves�gate a poten�al Transac�on. This Document is not intended to be used as the basis for any investment decision or any decision rela�ve to a Transac�on with the Company. This Document does not cons�tute an offer or invita�on to sell or purchase securi�es.
This Document is for distribu�on only to persons reasonably believed to have the sufficient exper�se to understand the risks involved. The informa�on in this Document has been provided by the Company.The informa�on contained in this Document speaks as of the date hereof (except where otherwise indicated) and does not purport to contain all the informa�on that the recipient may require to evaluate whether or not to proceed with a Transac�on No representa�on or warranty, express or implied, is or will be made, and no responsibility or liability is or will be accepted by the Company in rela�on to the accuracy or completeness of the informa�on contained in this Document or regarding any other wri�en or oral informa�on made available to any recipient.
The contents of this Document shall not be construed as cons�tu�ng legal, tax, regulatory, accoun�ng or investment advice or as a recommenda�on thereof.
Recipients should consult their own counsel, tax and financial advisors as to legal and related ma�ers concerning any Transac�on described herein. This Document does not purport to be all-inclusive or to contain all of the informa�on that a poten�al purchaser may require. No investment, divestment or other financial decisions or ac�ons should be based solely on the informa�on in this Document.
Disclaimer
Doe Run Peru – Cobriza Mine 7
2017
Doe Run Peru Asset Sale
La Oroya Metallurgical
Complex
Inve
stm
ent
Opp
ortu
nity
Doe Run Peru – La Oroya Metallurgical Complex 2
La Oroya Metallurgical Complex:
La Oroya Metallurgical Complex is at the crossroads of well-established railroads and highway systems. The facility´s proximity to Port Callao allows it to export its products around the world with ease.
Around 90 % of the facility’s products are exported via the Port of Callao, where we have long-standing relations with global shipping companies.
Location:
Accesibility:
La Oroya Metallurgical Complex is strategically located in the central Andes of Peru at 3,700 meters above sea level in the region of Junin.
La Oroya Metallurgical Complex – Key Data
Smelter Type Primary smelting and refining non - ferrous metal from raw materials.
Process Transforms commodities without added-value (concentrates) into commodities (ingots / cathodes) with high value.
Value Treatment and refining charges, penalties, free metal, premiums and by-products are the main sources of profit.
Pb, Zn and Cu Concentrates Concentrate production in the region exceeds the refinery capacity at La Oroya.
Total Properties 3,480 Ha.
A uniquely, integrated, polymetalic metallurgical facility in the central Andes that produces 17 high-quality products.
The Complex is comprised of four circuits: lead, zinc, copper and precious metals. This facility was specifically designed to process concentrates from the region and is strategically located to benefit from on-going growth in peruvian mining.
Tranche Distance Crossroads
Lima (Callao) La Oroya 178 Km Paved road & Railway
Doe Run Peru – La Oroya Metallurgical Complex 3
Production: During its last full year of operations (2008), the complex produced approximately 54 kt of copper, 116 kt of lead, 43 kt of zinc and 34.5 Moz of silver (in addition to a number of other by-products). When operating at full capacity, La Oroya Metallurgical Complex refined approximately 33% of Peru's silver production.
La Oroya Metallurgical Complex’s electric energy supply is from the national interconnected power system (SEIN), grid reference: Mantaro 220 KV.
Major Mines Located near La Oroya:
Energy:
La Oroya
CobrizaLima
P a c i f i cO c e a n
Huanzala (Mitsui)
Atacocha (Milpo)
Antamina (BHP)
Huaron (Pan American)
Toromocho (Chinalco)
San Vicente (SIMSA)
Yauricocha (Sierra Metals)Yauli (Volcan)
Cerro Lindo (Milpo)
Cerro de Pasco
El Brocal Chungar Huarón
Casapalca
Morococha
La Oroya is strategically located in the Central Andes with easy access to most polymetallic peruvian mines.
Water: The primary sources of La Oroya Metallurgiical Complex’s water supply are: Thisgo and Mantaro rivers.
Metal Mt / Year Quality (%) Copper 72,500 99.9780 Lead 122,000 99.9972 Zinc 43,000 99.9957 Silver 1,200 99.9956 Gold bullion 3 99.8000 Bismuth 1,200 99.9995 Selenium 27 99.9662 Tellurium 37 99.9897 Antimony Crude 842 97.5000 Indium 7 99.9929
By - Product Mt / Year Zinc Dust 3,600 Copper Sulphate 4,500 Arsenic Trioxide 4,400 Zn-Ag Concentrates 3,300 Zinc Sulphate 3,800 Sulphuric Acid - Zinc Circuit 64,000 Suplphuric Acid- Lead Circuit 125,000
Production Capacity and Quality
Doe Run Peru – La Oroya Metallurgical Complex 4
Eight of the nine Ex PAMA (Environmental Adaptation Program) projects required by the regulatory entity have been completed, representing US$300 MM in capex. The final project pending conclusion (copper circuit) is approximately 50% complete.
The company has a monitoring network for air and water quality that follows a strict process for control and quality assurance. All SO2 results are validated by authorized third-party laboratories.
La Oroya enjoys ample social license in its areas of influence. Over the years the company has built excellent relations with workers and communities in its operating areas and beyond. Our focus is on empowerment rather than assistentialism, which we believe provides the best platform for sustainable growth. La Oroya Metallurgical Complex has engaged in numerous successful initiatives in the education, health, forest development and livestock sectors.
Environmental Responsability: Corporate Social Responsability:
Experienced Management and Technical Team: La Oroya Metalurgical Complex has a committed and experienced management and technical team with solid technical know-how and more than 20 years of experience in the metal and refinery industries.
Doe Run Peru – La Oroya Metallurgical Complex 5
Expression of Interest - Process Overview
Doe Run Peru will be seeking Expressions of Interest from interested parties to acquire La Oroya Metallurgical Complex (LOMC). Parties with an interest in participating in the process must purchase the Bases and sign a Confidentiality Agreement. Any questions should be directed to the representatives of DIRIGE (company in charge of the asset sale) listed below. Under no circumstances should Doe Run Peru or its shareholders, employees, representatives, customers, creditors or suppliers be contacted directly.
1st Round – 08 March
95.19 (US$ MM)
2nd Round – 22 March
80.91 (US$ MM)
3th Round – 09 April
68.78 (US$ MM)
Oscar Zapata Asset Sale Director
+51 948 400 589 [email protected]
Pablo Peschiera Insolvency Administrator
+51 987 582 310 [email protected]
Kathleen Gallagher Investor Relations +51 998 228 887
Schedule and Prices for the Asset Sale La Oroya Metallurgical Complex Public Auction 2018
La Oroya Metallurgical Complex
Doe Run Peru – La Oroya Metallurgical Complex 6
Disclaimer This document contains information pertaining to the business and operations of Doe Run Peru. This Document has been prepared by the Company to inform parties that may be interested in executing a sales transaction involving the Company. The sole purpose of this Document is to assist recipients in deciding whether they wish to further investigate a potential Transaction. This Document is not intended to be used as the basis for any investment decision or any decision relative to a Transaction with the Company. This Document does not constitute an offer or invitation to sell or purchase securities.
This Document is for distribution only to persons reasonably believed to have the sufficient expertise to understand the risks involved. The information in this Document has been provided by the Company.
The information contained in this Document speaks as of the date hereof (except where otherwise indicated) and does not purport to contain all the information that the recipient may require to evaluate whether or not to proceed with a Transaction No representation or warranty, express or implied, is or will be made, and no responsibility or liability is or will be accepted by the Company in relation to the accuracy or completeness of the information contained in this Document or regarding any other written or oral information made available to any recipient.
The contents of this Document shall not be construed as constituting legal, tax, regulatory, accounting or investment advice or as a recommendation thereof. Recipients should consult their own counsel, tax and financial advisors as to legal and related matters concerning any Transaction described herein. This Document does not purport to be all-inclusive or to contain all of the information that a potential purchaser may require. No investment, divestment or other financial decisions or actions should be based solely on the information in this Document.
