Future Global Trends Of Buenaventura In Peru



Table of Contents

1. Company History1

Early Beginnings1

Significant Changes1

Management Changes2

2. Introduction5

Global Future Trends In Precious Metal Industry5

Importance Of Pricing Sustainability For Precious Metals For Buenaventura7

Will The Price Of Gold Crash Over The Years8

Buenaventura Completion In The Metal Market9

3. Brief Review12

Demographics And Population Of The Consumer12

Natural resources and environment of Peru14

Future global trends and financials of company14

Present and Future conflict15

Role in the Unites States and globally15

4. Conclusion17

Will company sustain its financial success17

Will company be able to fulfill its future explorations17

Future for Gold And Silver17

Is Peru the right place to headquarter the company18

Key certainties & uncertainties of the company18

References20

Future Global Trends of Buenaventura In Peru

1. Company History

Early Beginnings

Descended from a distinguished Peruvian family, Alberto Benavides de la Quintana was a mining engineer working for Cerro de Pasco Corporation, the U.S.-based company that dominated mining in Peru. In the early 1950s Benavides had his eye on Julcani, a mine in central Peru, dating from the 18th century, that Cerro de Pasco was no longer interested in renting from the owner, which had failed to make it a going concern(Becker, 2010).

In 1953 Benavides established Buenaventura (Good Fortune) to successfully exploit this mine. According to one account, he and his Peruvian backers put up the initial money and took 60 percent of the stock. Cerro de Pasco subscribed 20 percent, and Sociedad Minera Suizo-Peruana Julcani S.A., which had formerly owned the mine, took the rest. According to other accounts, however, Cerro de Pasco took a one-third share. Cerro de Pasco also lent Buenaventura $200,000 in return for the right to buy the mineral concentrates extracted from the mine. A plant with capacity to handle several hundred metric tons of ore a day was installed next to the mine, with the yield consisting of silver, zinc, and bismuth concentrates.

Buenaventura opened another mine, Recuperada, in 1956, about 25 miles west of Julcani at Huachocolpa, where, four years later it inaugurated the Corralpampa concentrate plant, which processed the mine's lead, zinc, and cadmium ores. Also in 1960, it began mining operations at Orcopampa, a deposit in southern Peru where, in 1967, it opened a concentration plant for ore containing gold, silver, and copper. Also in 1960, Buenaventura began assessing the commercial potential of two gold and silver mines in the Uchucchacua zone, about 265 miles northeast of Lima, where a concentration plant was installed in 1975. By 1985 this plant had the capacity to process l,000 metric tons of ore per day(Greenwood, 2008).

These various company operations were employing over 1,000 workers in the mid-1960s, mining ore and converting it to concentrates of lead, copper, silver, and zinc. Buenaventura's revenues came to about $4 million in 1965. The company was first listed on the Bolsa de Valores de Lima in 1971. In 1972 Buenaventura acquired a majority stake in Compañia Minera Colquirrumi S.A., which had mines in northern Peru, and Compañía Minera Condesa S.A. in central Peru.

Significant Changes

Buenaventura's most important venture was still to come. Since 1982 geologists working for Newmont Mining had been exploring ...