Strike Resources is an ASX listed resources company operating in Peru, developing the Apurimac Iron Ore project. This presentation provides an overview of the Mining and Investment Environment in Peru.
2. Strategically Located
• Easy access to Southeast Asian markets
and USA
• Member of the Asia-Pacific Economic
Cooperation (APEC) Community
• Policy of openness - Peru has signed
Bilateral Investment Treaties and Free
Trade Agreements
– Free Trade agreement partners include China,
United States, South Korea and Singapore
• Peru has signed Double Taxation
Agreements with Brazil, Chile and Canada
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Pacific rim location gives Peru ready access to
both Asian and North American markets for mineral
exports
3. Among the Fastest Growing Economies
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Peruvian Central
Bank expects growth
between 6.0% to
6.4% for 2013
4. Robust Legal Framework
• Government commitment to the sector
– Legal reforms carried out in early 2000s - modelled on International best practice
– Aim to provide stable environment to secure medium to long term investment
• No discrimination between national and foreign investors
• Irrevocable Mining Concessions
• Free availability of foreign currency transfers, free transfer of capital
• Arbitration system to resolve conflicts
• Internationally competitive tax and royalty rates
• Successful initiative to formalise artisanal mining – 77,000 informal miners (of
estimated 100,000) now involved in formalisation plan
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5. Globally Significant Producer
• Peru is the largest
producer of gold, zinc, tin
and lead in Latin America
• Third largest producer of
copper, silver, zinc and tin
worldwide
• In the last decade,
Peruvian mining exports
have increased in value
eight times, and now
account for over 65% of
total exports
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COPPER
GOLD
LEAD
ZINC
IRON
TIN
Respective Commodity Share of
Peruvian Exports
6. Growing Mining Investment
• Peruvian mining exports represent over 65% of its total exports
• Mining investment in Peru at historical record in 2012: more
than US$8,500M
• Includes $US1,200M for expansion of Marcona iron ore mine by
Shougang Hierro Peru
• Increased investment in infrastructure, production and
exploration
• Peru remains among first investment destinations for
exploration budgets worldwide
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Total Investments in Mining ($US Million) Source: Ministry of Energy and Mines, Peru
7. MINING EXPLORATIONS INVESTMENTS (US$ MILLION)
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Investment in Exploration Strong
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Now over 400 mining
licences under exploration
in Peru, plus early stage
prospecting
8. Extensive Future Investment Pipeline
• US$54.6 billion in
investment portfolio
• US$ 6,780 million in
Iron Projects (12.4%)
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Estimated Investment Portfolio $US million
Expansion projects underway 9,058
Projects with Approval 17,963
Under Exploration 23,713
Total 54,680
Investment portfolio split by
commodity
US$ 6,780 million in Iron Projects
9. 9
Peru: Australia:
William Johnson
Managing Director
Strike Resources
Tel: +(511) 715-8090
wjohnson@strikeresources.com.au
Shane Murphy – Media & Investor Relations
FTI Consulting
+61 8 9485 8888
+61 420 945 291
shane.murphy@fticonsulting.com