Buenaventura Mining Company

Buenaventura Mining Company is a mid-tier silver and copper producer headquartered in Lima, Peru, operating primarily in South America. The company's portfolio consists of 10 projects, comprising 7 operating mines, 2 development, and 1 exploration project, in addition to several early-stage exploration prospects. Key assets include Uchucchacua And Yumpag, El Brocal, and San Gabriel. The organization's business model is built on a fully integrated mining lifecycle, managing all stages from exploration and development through to operation, processing, and mine closure. A core operational characteristic is the diversification into non-mining activities, including hydroelectric power generation, electric transmission services, and the production of industrial chemical products, which provides strategic vertical integration and operational synergies. The company employs a proprietary, certified management framework, the Buenaventura Integrated System, which aligns quality, environmental, and occupational health and safety practices with ISO 9001, 14001, and 45001 standards. Technological advancement is central to its competitive approach, driven by an internal innovation program, Innovaventura, which fostered 143 initiatives in 2024. This includes the development of proprietary digital tools such as the Yupay software for resource estimation and a corporate GIS platform for centralized geological data management, enhancing decision-making and operational efficiency across its diverse metallurgical processes.

Strategic focus centers on ensuring long-term business continuity through a culture of intensive exploration and the continuous replenishment of the mineral base. A key pillar of this strategy is the pursuit of operational excellence via a formal continuous improvement program, which in 2024 implemented targeted projects to enhance metallurgical recovery and reduce operating costs. The enterprise is advancing its digital transformation through the deployment of platforms for real-time geological mapping and data science-assisted resource modeling. Another strategic priority involves creating new value streams through a dedicated new products pillar, exemplified by the development of a pilot plant for battery-grade materials. This approach is supported by a supply chain strategy that integrates environmental, social, and governance criteria into a rigorous supplier homologation and performance evaluation process. The entire strategy is underpinned by a commitment to safety, environmental stewardship, and positive social relations as foundational elements for all projects and operations.

The board of directors is composed of 9 members, of whom 5 are independent, ensuring a majority of external oversight. Governance is structured through 5 specialized committees: Audit, Corporate Governance, Nominations and Compensations, Sustainability and Innovation, and Operations. Board meeting attendance in 2024 was 100%. The performance of senior management is formally evaluated annually by the Compensation Committee using a Balanced Scorecard methodology. In 2024, the organization reinforced its ethical framework by implementing a Comprehensive Corporate Compliance Policy and training 100% of its employees on the Code of Ethics and Good Conduct. A confidential ethics hotline managed 91 complaints during the year, reflecting the active use of its reporting mechanisms. The General Manager, appointed in 2020, holds degrees in business administration and accounting, an MBA, and completed the Advanced Management Program at Harvard Business School, bringing extensive financial and executive experience to the role.

The sustainability approach is guided by a comprehensive materiality assessment updated in 2024, which identified 11 priority environmental, social, and governance topics. A key focus is water stewardship, managed through water footprint measurement under ISO 14046, which led to the company receiving a Blue Certificate from the National Water Authority. The organization actively promotes transparency through participatory water quality monitoring, conducting 14 joint sessions with local stakeholders in 2024. In climate action, the company began a progressive alignment with TCFD recommendations and achieved 77% renewable energy use at the corporate level. Biodiversity management follows the AR3T mitigation hierarchy, with a formal commitment to no deforestation and risk assessments covering over 15,583 hectares. The company is also advancing its human rights commitment through a formal due diligence process, which was validated in 2024 and included pilot programs at 3 operational units.

The company's shareholder base includes The Bank of New York Mellon as a depository for ADRs, representing 80.80% of shares, along with Compañía Minera Condesa S.A. holding 7.69% and an individual shareholder with 5.03%. The corporate structure has been actively managed through recent strategic transactions, including the 2024 divestiture of its stake in Chaupiloma and the 2022 sale of its interest in Yanacocha to Newmont. Concurrently in 2022, the organization acquired 100% ownership of Minera La Zanja S.R.L. Key operational entities include a 61.43% controlling interest in the publicly traded entity Sociedad Minera El Brocal S.A.A. and a 19.58% interest in the affiliate Sociedad Minera Cerro Verde. The structure also features a joint venture in Compañía Minera Coimolache, where the company holds a 40.09% stake. Wholly owned operational subsidiaries are central to its business, including Consorcio Energético de Huancavelica S.A. (CONENHUA), which manages energy generation and transmission assets, and Procesadora Industrial Río Seco S.A., focused on chemical processing.