Buenaventura Announces Strike at Uchucchacua Mine

Rhea-AI Summary

Compañia de Minas Buenaventura S.A.A. (NYSE: BVN) announced a strike initiated by the local community surrounding its Uchucchacua mine on September 13, 2021, which has led to the suspension of mine operations due to blocked access. The community claims violations of agreements from 2012 and 2018, despite Buenaventura's assertion of compliance. The Company has proposed meetings for dialogue and expects potential negative impacts on Q3 results if unresolved. Ongoing maintenance activities continue, with plans to adjust operations as needed.

Positive

• Proposed meetings with community representatives to resolve strike issues.
• Continuation of essential maintenance work at the mine.

Negative

• Strike causing suspension of mine operations.
• Potential negative impact on third quarter results.

LIMA, Peru--(BUSINESS WIRE)-- Compañia de Minas Buenaventura S.A.A. (“Buenaventura” or “the Company”) (NYSE: BVN; Lima Stock Exchange: BUE.LM), Peru’s largest publicly-traded precious metals mining company, today announced that the local community surrounding the Company’s Uchucchacua mine initiated a strike at midnight on September 13, 2021. Mine operations have therefore since been suspended as access has been blocked. However, essential work associated with mine maintenance and functionality, including water drainage, water treatment and tailings dams inspection, continue without interruption.

The strike results from the community’s claim that Buenaventura has violated agreements signed in 2012 and 2018. However, Buenaventura has complied with all related commitments and obligations. This has also been communicated to the community as the Company has made itself available twice a month for meetings with community representatives. Meetings are also scheduled in special circumstances, which unfortunately was not possible in the current situation despite Buenaventura’s frequent attempts.

Buenaventura has proposed a meeting with community representatives to support a productive dialog and resulting solution in order to end the strike. Should a solution not be reached in the subsequent days, the Company expects a negative effect on third quarter results. However, should this be necessary, Buenaventura will revise its current mine plan accordingly to mitigate adverse impacts on its operations and recover any related shortfall over the balance of the year as well as any potential residual effects on 2022 results.

It’s important to note that Buenaventura has implemented several social projects benefitting local communities in those areas surrounding its mines as a key component of the Company’s longstanding dedication and commitment to Environmental and Social Responsibility.

Buenaventura will continue to provide relevant updates.

Company Description

Compañía de Minas Buenaventura S.A.A. is Peru’s largest, publicly traded precious and base metals Company and a major holder of mining rights in Peru. The Company is engaged in the exploration, mining development, processing and trade of gold, silver and other base metals via wholly-owned mines and through its participation in joint venture projects. Buenaventura currently operates several mines in Peru (Orcopampa*, Uchucchacua*, Julcani*, Tambomayo*, El Brocal, La Zanja and Coimolache). The Company owns 43.65% of Minera Yanacocha S.R.L (a partnership with Newmont Mining Corporation), an important precious metal producer and 19.58% of Sociedad Minera Cerro Verde, an important Peruvian copper producer. For a printed version of the Company’s 2019 Form 20-F, please contact the persons indicated above, or download a PDF format file from the Company’s web site. (*) Operations wholly owned by Buenaventura.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210922006031/en/

Contacts in Lima:

Daniel Dominguez, Chief Financial Officer

(511) 419 2540



Gabriel Salas, Head of Investor Relations

(511) 419 2591 / Gabriel.salas@buenaventura.pe



Company Website: www.buenaventura.com



Contacts in NY:

Barbara Cano

(646) 452 2334

barbara@inspirgroup.com

Source: Compañia de Minas Buenaventura S.A.A.

FAQ

What caused the strike at Buenaventura's Uchucchacua mine?

The strike was initiated by the local community due to claims of violations of agreements from 2012 and 2018 by Buenaventura.

When did the strike at Uchucchacua mine begin?

The strike began at midnight on September 13, 2021.

What is the impact of the strike on Buenaventura's operations?

The strike has led to the suspension of mine operations, with ongoing maintenance work continuing.

How might the strike affect Buenaventura's financial results?

The Company expects a negative effect on its third quarter results if the strike is not resolved.

What steps is Buenaventura taking to address the strike?

Buenaventura has proposed meetings with community representatives to foster dialogue and seek a resolution.