Antamina Statement Facing Strike Announcement

Through this communication, we wish to set out publicly and transparently, our position on the recent announcement by the leadership of the Union of Workers of Compañía Minera Antamina, to start an unlimited strike on November 10. The reason: have received lower profit from a profit-sharing plan (Peruvian legal requirement) in the advance payment we have given in fulfillment of our collective agreement. In this regard, we should note that profits are earnings of a company that are distributed under the terms required by law. These are fluctuating income linked to the annual production of a company, which in turn are influenced by various external factors, such as, for example, production costs and market prices.

It is public knowledge Antamina is in a stage of lower production of metal ore; a fact foreseen in our mining plan, which we are sure to reverse in the medium term. To overcome this situation depends on everyone as this will allow to continue generating benefits for our families, for Ancash and for the country.

Those in Antamina who understand that a strike is not the way to keep growing, want to call for reflection to those who believe that a strike is the solution. All that will be achieved with this measure is a reduction in profit from a profit-sharing plan (Peruvian legal requirement) (which is paradoxically the reason for the announced strike).

For those who can perceive that our company does not offer enough, we want to be clear in saying that Antamina provides one of the best benefits packages for their employees, as the increases granted to their operators are largely higher than domestic inflation. Total revenues we receive every year, health packages, life insurance, work schedules, transportation, accommodation, food, among others, are superior to those provided by other companies in the industry.

A strike not only affects Antamina. With a strike, we all lose, because if we produce less, profits are reduced and thus the income tax, the canon perceived by the Ancash Region, the special mining tax that funds social programs in the country and the profits that all workers receive will also be affected.

October 28th, 2014

Compañía Minera Antamina
Corporate Communications Area