Cerro de Pasco Mining Unit

During 2011, between January and July production of Raul Rojas pit was suspended, due to reorganization of the mining unit, being resumed on august with the exploitation of phase 3 of east wall of the pit. Due to a decrease of production from underground mine, mineral from Islay and Vinchos mines were shipped and supplied to the Paragsha plant. In the future, strategy of the company is focused on improving operations of underground mine and increase silver production with the commissioning of the silver-oxides leaching plant.

In 2009 it was consolidated the mechanization of underground mining with 90% of implementation in Trackless equipment. Plan “L” consists on pit extension by acquisition of 238,315 m2 in the last 3 years, in the same way there were carried out successfully metallurgical tests for the new plant of Cerro de Pasco, which is projected to produce 14,000 tpd. Additionally at a second extension phase of the open pit, 100 million tons of new reserves containing Cu, Au, Ag associated to pyrite bodies will be added.

As of Dec/08, In Cerro de Pasco the property acquisition process continued in relation to the expansion of the East wall of the Open Pit. However, at the end of the year extraction activities in the Open Pit decreased as a result of the sharp fall in metal prices and the temporary suspension of the Super Pit project.