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Cerro Verde Expansion

September 2016
Freeport-McMoRan Mining Assets
Sociedad Minera Cerro Verde
Mine Location
35 km from Arequipa
90 km from Matarani Port

Population
Peru - 30 million
Arequipa 1.2 million

Elevation of the Mine


2,700 m.a.s.l. (8,900 ft)

Shareholders
Freeport-McMoRan Inc.:
53.56%
Sumitomo: 21.00%
Buenaventura: 19.58%
Shareholders in Lima Stock
Exchange: 5.86%
Cerro Verde Operations
Pre Expansion
360,000 MT/day Mined 40,000 MT/day Crushed Leach

120,000 MT/day Concentrator (CV1)

9,000 MT/day ROM Leach

Approximately 2,450 employees


YE 2015 Copper Mineral Reserves

Mineral Reserves
3.9 billion metric tons at 0.37% Cu and 0.014% Mo and
1.48 g/t Ag, Stripping Ratio = 0.97

Mine Life
30 years (2045)

Life of Mine Production


28.2 billion pounds of copper, 0.7 billion pounds of
molybdenum,
85.2 million ounces of silver
Cerro Verde Expansion
Beginnings

In 2010, Cerro Verde S.A.A. initiated a feasibility study to evaluate the possibility of
expanding its Production Unit according to its large reserve of sulphides and oxides,
by means of the construction of a second concentrator (C2) with:
a designed capacity of 240,000 MT/day
a leaching platform (PAD1, Phase III) with a capacity of 100,000 MT/day
mine development
a series of similar auxiliary and/or complementary facilities
the relocation and/or modification of various existing infrastructure
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Cerro Verde Mine Operations

2016 Mined Material


630,000 MT/day (New Mined)
730,000 MT/day (Total Material Moved)

2016 Ore
360,000 MT/day Sulfide Ore
40,000 MT/day Crushed Leach Ore
40,000 MT/day ROM Ore

Average Grade of Mined Ore


0.387% CuT (3.874 Kg. Cu/MT)
This includes primary sulphides (high, low
grade) and leachable (high, low grade)
Mine Fleet
Haul Trucks
(88) Cat 793s
(9) Komatsu 930
(23-27) Additional trucks
by EOY 2018

Shovels
(4) P&H 4100 AC
(2) P&H 4100 DC
(3) P&H 2800
(2) O&K RH200
(1) Additional P&H 4100 DC in 2017

Production drills
(10) PV271
(2) Additional PV271s in 2017
Concentrators
CV1 CV2

Total cost: US$890 million Total cost: US$4.5 billion

24-month schedule EISA was approved on 2012


Construction started in Construction started in March
4Q 2004 2013
The first line started Produced first copper
operations in 4Q 2006 concentrate in September
The second line started 2015
operations in 1Q 2007 Full capacity production
Full capacity production achieved in December 2015
achieved in June 2007 Inauguration in May 2016
CV2 Concentrator
CV2 Primary Crushing

(2) 60 X 113 Gyratory Primary Crushers (FLS)


CV2 Secondary & Tertiary Crushing

(8) Cone Crushers Metso MP 1250


(8) Polysius High Pressure Grinding Rolls HPGR
2.4M Dia X 1.6M Rolls (5 MW)
CV2 Ball Mills

(6) Polysius Ball


Mills 8.2M dia X
14.6M
22 MW each

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CV2 Flotation

Flotation Cells
50 X 130 M3
Flotation Cells 66 X 257 M3
CV2 Tailings Thickeners
Linga Tailings Impoundment
Water Our Priority
Arequipa is located in a desert (Atacama desert)
The Peruvian government, authorities of Arequipa, and Cerro Verde
worked together to plan and ensure the hydric resource for future
generations - Collect water in Arequipas highlands with
regulated dam system
- Build a potable water treatment plant,
which is one of the most modern in South
America (PWTP II)
- It benefits 300,000 people currently and
could benefit 750,000 in the future

- Investment of US$120 million

- Upgrade the potable and sewage water


network in order to assure the water
resource can reach homes
- Investment of US$40 million

- Decontaminate the Chili River with a


wastewater treatment plant 17
Waste Water Treatment Plant
The Chili River is the most important
water source in Arerquipa; it is the key
factor for economic activities such as
agriculture, commerce, tourism and
mining

It was used to receive all waste water


produced in the city

SEDAPAR and Cerro Verde worked


together to improve the quality of the
Chili River through the construction of a
wastewater treatment plant (WWTP)

The WWTP was financed totally by


Cerro Verde

Operation and maintenance to be the


The Chili River is key for life in Arequipa responsibility of Cerro Verde for a
minimum of the first two years

Investment to construct the WWTP was approximately US$500 million.


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Enlozada WWTP
A Win-Win Project
In exchange for financing the WWTP, Cerro
Verde uses up to 1 m3/sec of treated water for
the expansion of its operations
The rest of the treated water is returned to the
Chili River
The WWTP benefits all of Arequipa:
- Health clean water that meets national and
international standards
- Agriculture fresh water for irrigation
- Tourism quality recreational areas are being
rejuvenated
- Environment positive impact on flora and fauna
- Great sustainable development project that
completes the virtuous circle of water
Great example of cooperation and joint team
work between authorities and private
companies

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Transporting Concentrate
to Matarani Port

Transport of sealed 15
metric ton containers
Transport in trucks from
CV to La Joya transfer
station, approx. 52 km
Transport in train from
La Joya to Matarani,
approx. 55 km
Concentrate Transport at Port
Estimated 2016 Production
Copper in Concentrates
1.04 billion lbs Cu in
2.0 million metric tons of copper
concentrate
Copper Cathodes
110 million lbs Cu
Molybdenum in Concentrates
21 million lbs Mo in
17,500 metric tons of concentrate
Sustainable Development

At Cerro Verde, we contribute to the sustainable


development of Arequipa, through the integration of
economic growth, environmental protection, social
progress and the effective governance of our region.

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Community Relations
Education Health & Nutrition

Agriculture Training
Community Relations
Small Businesses Infrastructure

Community Environmental Projects Arts & Culture


Community Relations

Santsimo
Sacramento
Chapel

La
Compaa
Church
Workforce

Approximately
4,100
employees
and 1,800
contractors at
Cerro Verde

Orgullo nos Une


Pride Unites Us
Thank you

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