GEOLOGICAL SURVEY OF PERU (INGEMMET) COUNTRY REPORT

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1 GEOLOGICAL SURVEY OF PERU (INGEMMET) COUNTRY REPORT Magdie Ochoa Alexander Santisteban PERÚ 2009

2 INTRODUCTION INGEMMET is a Public Institution of The Ministry of Energy and Mining whose mission is to get, keep and diffuse the geological data in order to promote the mining investment. Starting from 2007 Ingemmet is also in charge of gran try the mining concessions.

3 MINISTRY OF ENERGY AND MINING GEOLOGICAL RESEARCH INGEMMET Geologycal Survey MINING CONCESSIONS AND CADASTRE ADMINISTRATION REGIONAL GEOLOGY DEPARTMENT MINERAL RESOURCES AND ENERGY DEPARTMENT Maps MINING CONCESSIONS DEPARTMENT MINING CADASTRE DEPARTMENT ENVIRONMENTAL GEOLOGY AND GEOLOGICAL HAZARDS Reports and Bulletins Data Base

4 REGIONAL GEOLOGY DEPARTMENT Carriyng the local and regional geological mapping, geophysics and paleontology research Products: 1: geological maps (100%) 1: maps and 1: regional maps as well

5 1. Huancabamba Deflection 2. Calipuy Volcanics Extensional Basins of the Central Coast 2 4. Magmatic Southern Arc 5. Perm-Triasic Rocks 6. Continental Platform Peruvian Rain Forest 4

6 MINERAL RESOURCES AND ENERGY DEPARTMENT Metallogeny Geochemical prospection Industrial rocks and minerals Mining and development

7 Yacimiento de Antamina Yacimiento de Huanzalá

8 ENVIRONMENTAL GEOLOGY AND GEOLOGICAL RISK National Geologycal Hazard Map As a result, we now have the geological hazard map (1:100000) up to (80%)

9 Geothermic Map Hydrogeologycal Map

10 Mining Concessions and Cadastre National Mining Cadastre. Restricted areas Mining Concessions

11 PERU: PHISIOGRAPHY AND ECONOMICAL POTENTIAL

12 Peru is located in the central and western part of South America. Its geography is one of the most complex due to the presence of Peruvian Andes mountain chain which divides the territory into three regions (Coast, highlands and jungle) whose weather, vegetation and culture are distinctive. The Andes mountain chain is 7240 km in length, 41 km in width and 6600 m the highest peak.

13 Hydrocarbon potential Mineral deposits potential Natural gas potential

14 PERU : A COUNTRY WITH MINING POTENTIAL

15 Macroeconomic Indicators ANNUAL INDICATORS GROSS DOMESTIC PRODUCT GDP (var. % real) MINING GDP (var. % real) INFLATION AVERAGE EXCHANGE RATE (S/. Per US$) EXPORTS (US$MM) MINING EXPORTS (US$MM) IMPORTS (US$MM) References: MEF, INEI, BCRP

16 INVESTOR JURIDICAL ASSURANCE Contracts of juridical stability signed by the state and guaranteed by the Political Constitution of Peru. Free availability of currencies and remittances abroad. Tax stability No discrimination between domestic and foreign investor. Guarantee for the private property. Freedom to get domestic shares. Freedom to get internal and external credit. Transparency of information.

17 INVESTMENT AGREEMENTS Peru has signed bilateral agreements: the Free Commerce Agreements with USA, Canada, China and Singapore. Currently, we have in progress agreements with Thailand, South Korea and the European Community.

18 CURRENT SITUATION OF MINING DEVELOPMENT NATIONAL TERRITORY

19 Main mining operations and mining companies

20 Exploration: 100 exploration companies from Canada, Australia, China, England, Italy and USA. About 276 prospects and mining projects. Production : 589 mining units in operation.

21 Peruvian ranking of mining production :

22 Destination of Peruvian mining exports Reference: PROMPEX

23 GOVERNMENT INTERVENTION Basic geological information Geothermycs Resources Development and mining program Uranium Occurrence in Peru

24 BASIC GEOLOGICAL INFORMATION Geologycal Map Geologycal Hazards Map Hydrogeological Map Geothermal Field Map Metallogenic Map Geochemical Bulletins

25 GEOTHERMY: An energetic alternative in Peru Objectives: -Update and classification of geothermal resources and making of projects up to the feasibility stage in our country ENVIRONMENT N FONTS (1973) N FONTS (2003) AREQUIPA TACNA CUSCO MOQUEGUA 2 43

26 DEVELOPMENT AND MINING PROGRAM Objective It is in charge of granting the technical advisory and fomenting formalization, either the small scale mining and the traditional mining, improving the people lifestyles as well as protecting the environment.

27 Uranium Occurrence in Peru In terms of Uranium deposits, Peru has : 2 projects in feasibility studies 53 significant anomalies areas. and 16 prospects Bayovar Miski Mayo S.A.C TM U3O8 (Caro, 1980) Macusani Solex, Minera Macusani y Venaresource TM U3O8 (Flores et al., 1983)

28 THANKS FOR YOUR ATTENTION

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