International Projects Cerro Verde

Cerro Verde Expansion

Sociedad Minera Cerro Verde

 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

Cerro Verde Operations

Pre Expansion

360,000 MT/day Mined 40,000 MT/day Crushed Leach

9,000 MT/day ROM Leach

120,000 MT/day Concentrator (CV1)

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

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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

Cerro Verde Mine Operations

 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

Haul Trucks (88) Cat 793’s (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 PV271’s in 2017

Mine Fleet

CV1

Total cost: US$890 million

 24-month schedule

 Construction started in

4Q 2004

 The first line started

operations in 4Q 2006

 The second line started

operations in 1Q 2007

 Full capacity production

achieved in June 2007

CV2

Total cost: US$4.5 billion

 EISA was approved on 2012  Construction started in March

2013

 Produced first copper

concentrate in September 2015

 Full capacity production

achieved in December 2015

 Inauguration in May 2016

(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)

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CV2 – Ball Mills

CV2 – Flotation

Flotation Cells 50 X 130 M3

Water – Our Priority

- Collect water in Arequipa´s 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

 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

 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 responsibility of Cerro Verde for a minimum of the first two years

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

Waste Water Treatment Plant

The Chili River is key for life in Arequipa

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 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

Enlozada WWTP

 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

Transporting Concentrate

to Matarani Port

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

24 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.

Community Relations

Education

Training

Health & Nutrition

Community Relations

Small Businesses _{Infrastructure}

Santísimo Sacramento Chapel La Compañía Church

Community Relations

Workforce

Orgullo nos Une “Pride Unites Us”