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## EXPANSION AND MODERNIZATION PROGRAM 

In reference to the Expansion and Modernization Program announced in previous years, we continued their implementation: 

InToquepala,engineeringwasconcludedandtheconstruction of the Leaching Dumps Project began. This project consists in the replacement of the carriage of leachable ore through truck by conveyor belts, which will require the installation of 

a fixed crusher at the exit of the mine, 6.5 km of conveyors downstream to the south dumps and a system of stacking that will allow to place leachable ore in dumps of low height (no more than 30-50m). The ore size will be such that all of ith will pass through the 9-inch mesh. The annual treatment capacity will be 50.2 million metric tons of leachable ore. 

As of December 2004, 70% of the Project had already been completed with the main pieces of equipment al- 

ready on their way to the field. Earth movement works done in collaboration with Mine Operations concluded after moving 1.4 million cubic meters to the large ditch and work to prepare the platform for equipment assembly started. Civil work for the crusher facility has accomplished 88% progress. By year end, electromechanical assembly started and should conclude by June 2005, to then start with commissioning and startup tests before building the ramp to start laying down the mineral for leaching. 

On the other hand, it is being developed the Engineer- ing for the Construction of the New PLS Dams Project, this project is complementary with the Leaching Dumps Project, given that, throughout the increase of the new dumps, new collection dams are required because during the construction of the new dumps a moment will arrive where the deposited mineral would cover current PLS dams, located in the Quebrada Toquepala. This Project also includes pumping stations and PLS conveyance pipes 

to the plant, purchases for the power substation started during the third quarter of 2004 and the works for such power substation, at the end of 2004. It is estimated that the works will be completed by July 2006. 

The Location Studies for Tailings Disposal continued with evaluations to replace the conventional tailings treatment systems using cyclones with others like state of the art flocculants and double cyclones. Studies and tests should 

conclude in 2005 to define the method that will be used in tailings disposal in Toquepala and Cuajone in the next 35 years. 

In 2004 we did the engineering studies and procure- ment for a new Copper Filter and ancillary equipment for operations. Civil work started in December and the new filter should start operating in the second quarter 2005. Progress so far has reached 51%. 

