A separate chapter in the region’s development is the “Complementary Payment” which Compañía Minera Antamina S.A. made on August 5th, 2002. That day, a check for US$ 111.5 million, the final payment on the contract closing for the mining concession, was handed over to the Peruvian government. The amount will be used entirely for the development of the Ancash region thanks to a joint effort by mayors in Antamina’s area of influence, Ancash congress representatives (irrespective of political affiliation) and the company itself.

This payment was the final investment paid to the State through Centromin Perú CEPRI - the body that privatized the deposit - in fulfillment of the contract for transferring the mining concession. In the agreement between Antamina and CEPRI, Antamina was required to pay 30% of the difference between the estimated investment at the time the contract was signed (US$ 2,25 billion) and what was actually invested by the time commercial operation began.

Investment, in terms of the contract, exceeded US$ 2,148 billion, which is the basis for calculating the “complementary payment” of US$ 111.5 million. If this amount is added to the operating investment, total investment at Antamina is approximately US$ 2,26 billion.

Because Antamina opted for that liability by paying this “complementary payment”, resources are available for regional development. If the payment had not occurred, Antamina would have decided where to invest the balance of what was originally estimated.

Because of lobbying work carried out by the company, local authorities and representatives, the ninth transitory disposition was written into the Public Budget Law for 2002 specifying that funds from these compensations for privatization be invested in studies and works to improve and pave highways and electrification, education and health projects in Ancash.

Thus, new highways, electrification works and new educational and health infrastructure in the region will soon be a reality. A new phase of sustainable development has opened up for Ancash.

Establishing priorities for these projects will be the task of the Investment Fund for Developing Ancash, a body created by the central government to channel the US$ 111.5 million that will finance development projects to benefit the region.

Download file "Situacion actual de proyectos del Fondo de Inversiones para el Desarrollo de Ancash FIDA" to february 2005.