Minería” authorized the expansion of the Toquepala SX/EW Plant to a 18,737-Metric Ton/Day throughput. 

4. Cuajone Leaching Plant (LX/EW): Authorized by Direc- torial Resolution No.155-96-EM/DGM, dated May 6, 1996, which approved the operation of the Cuajone leaching plant. The resolution granted 400 hect- ares of surface land and authorized a throughput of 2,100 Tons/Day. 

5. Ilo Smelter: Authorized (definitely) by Directorial Resolution No. 0078-69-EM/DGM, dated August 21, 1969, which approved the operation of the Ilo Smelter. The resolution authorized a production of 400 Short Tons/Day of blister copper. 

Based on Report No. 204-2000-EM-DGM-DPDM, dated June 20, 2000, the “Director General de Min- ería” authorized the expansion of the Ilo Smelter to a 3,100-Metric Ton/Day throughput of copper concentrates. 

6. Ilo Refinery: Authorized by Report No. 056-94-EM/ DGM/DRDM, dated May 27, 1994, the “Director General de Minería” authorized the operation of the Ilo Copper Refinery at a 190,000 Metric Ton/ Day throughput of blister copper. 

Based on Report No. 506-98-EM/DGM/DPDM, dated September 2, 1998, the “Director General de Minería” authorized the expansion of the Ilo Cop- per Refinery to a capacity of 658 Metric Tons/Day throughput of blister copper. 

Based on Report N° 080-2002-EM-DGM/DPDM, dated March 13th, 2002, the “Director General de Minería” authorized the expansion of the Ilo Cop- per Refinery to a capacity of 800 MT/Day. 

7. Sulfuric Acid Plant: Authorized by Directorial Resolution No. 024-96-EM/DGM, dated January 19, 1996, the “Director General de Minería” au- thorized the operation of the sulfuric acid plant at a production rate of 472 Metric Tons/Day. Based on Report No. 313-98-EM/DGM/DPDM, dated May 18, 1998, the “Director General de Minería” authorized the expansion of the Ilo Sulfuric Acid Plant to a capacity of 300,000 Metric Tons/Year production. 

8. “Coquina Wash Plant and Sea shell Concentrates,” authorized to operate by Directorial Resolution Nº 110-93-EM/DGM dated August 3, 1993. The plant processes 2068 MT/day of raw material (coquina) recovered from nearby mines. Seashell is produced 

separating sand and other materials from the co- quina using sea water washing screens. 

## DESCRIPTION OF OPERATIONS AND DEVELOPMENT REGARDING THE ISSUING ENTITY 

## PURPOSE 

The purpose of Southern Peru Copper Corporation (SPCC) is to engage in activities allowed by the laws of the State of Delaware. Its main activity is to extract, mill, concen- trate, smelt, treat, prepare for market, manufacture, sell, exchange and, in general, to produce and negotiate the sale of copper, gold, silver, lead, zinc, iron and any other class of minerals and materials or other materials, effects and goods of any nature or description; as well as to explore, exploit, sample, examine, investigate, recognize, locate, appraise, buy, sell, exchange, etc., mining conces- sions and mining deposits. SPCC belongs to the CIUU 1320 group. 

The term of duration of the Company is indefinite. 

## BRIEF HISTORICAL REVIEW THE COMPANY’S INCORPORATION 

The Company was incorporated on December 12, 1952, fifty-two years ago, according to the Laws of the State 

of Delaware, United States of America, under the name of Southern Peru Copper Corporation (SPCC). In 1954, SPCC established a branch in Peru to carry out mining activities in this country. 

On September 7, 1995, Southern Peru Copper Holding Company was incorporated, also in accordance with the laws of the State of Delaware, with the purpose of acting as a holding company of 100% of Southern Peru Copper Corporation’s shares (SPCC). By the end of 1995, SPCC changed its name to Southern Peru Limited, and South- ern Peru Copper Holding Company changed its name to Southern Peru Copper Corporation. 

Both companies agreed, effective December 31, 1998, to the merger of Southern Peru Copper Corporation with Southern Peru Limited, the former absorbing the latter and with SPCC assuming all assets and liabilities, including the branch in Peru. This merger did not imply any modification to the participation percentages in the equity stock or the Patrimony Participation Account (investment stock), which remained unchanged. 

Mining activities in Peru are carried out under the name of Southern Peru Copper Corporation, abbreviated as Southern Peru or the initials SPCC, through its branch in Peru. The branch is registered under Electronic Record 

Nº 3025091 for business entities, Registry Office of Lima and Callao (formerly, Entry N° 384 under Record N° 2447, Mining Individuals and Business Entities of the Public Mining Registry). 

## INFORMATION ABOUT PLANS AND INVESTMENT POLICIES 

See “Expansion and Modernization Program” on page 12. 

## SPECIAL RELATIONSHIPS BETWEEN ISSUER AND THE STATE 

On November 20th, 1996, SPCC and the Peruvian gov- ernment (Ministry of Energy and Mines) signed a contract that will remain effective until the year 2010 and which guarantees tax stability and the availability of foreign currency to exchange the Branch’s earnings related to the operation of the SX/EW plant at Toquepala and the Solvent Extraction (SX) operation in Cuajone. Also, on April 18th, 1995, SPCC and the Peruvian Government (CONITE) signed a contract that guarantees the avail- ability of foreign currency, free remittance of dividends abroad, among other guarantees related to the acid plant of the Ilo Smelter. 

SPCC’s tax credit revenues in Peru derive from the general sales tax (IGV) paid on the acquisition of capital goods and other goods and services used in its operations, 

which are accounted for as expenses paid in advance. By virtue of this rebate, SPCC is entitled to credit the any IGV amount against its Peruvian tax obligations or to receive a rebate. 

## GENERIC DESCRIPTION OF MAIN ASSETS 

## TOQUEPALA 

1. The Toquepala Production Unit comprises three Economic Administrative Units: TOQUEPALA 1 comprising 30 mining claims over a 7988 hectare surface. SIMARRONA, including 14 mining claims over 7800 hectares, and TOTORAL, with 18 mining claims distributed over 7320 hectares. In addition, the Toquepala Production Unit owns 35 mining claims over 23,244 hectares outside the above Economic Administrative Units. Overall, the Toquepala Production Unit holds 97 mining claims over 46,353 hectares. 

2. “Toquepala Concentrator” Beneficiation Plant, with Milling capacity of 60,000 tons per day, consists of 1 Primary Crusher, 2 Secondary Crushers, 4 Tertiary Crushers, 8 Bar Mills, 24 Ball Mills, 8 Ball Mills for Re-crushing, 1 control milling system, sections 3 and 4, as well as 4 OK-100 Flotation Cells, 3 OK-50 Flotation Cells, 13 Column Cells and 4 130m3 Flota- 

