MILPO
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On the heels of its best year to date, Peru’s mining companies anticipate an even better 2007 as market prices soar and new mines start up operations

Ivo Ucovich Chairman of the Board MILPO

Peruvian mining company MILPO has more than 58 years of experience in developing and operating zinc, copper, lead, silver and gold mines in the country. Revenues in 2006 were up a staggering 400% over the previous year, boosted by the start-up of the company’s third operation, the Chapi copper mine in Moquegua. “It was a great year,” reports chairman of the board Ivo Ucovich (INTERVIEW). “We had very strong prices in the market, and we were able to maintain our costs at competitive levels. That is why the company’s performance was so strong, and this year looks even better.”

2007 should be a good year. MILPO will begin operations in a new zinc-lead-copper mine in Ica, Cerro Lindo, which will double its revenues. With the start-up of the new mine, which represents an investment of $106 million for the company, MILPO will be operating three mines in Peru (Porvenir in Cerro de Pasco, Chapi and Cerro Lindo) and Iván copper mine and refinery in Chile.

Established in 1949, MILPO has seen a number of changes in recent years, including public listing and a management restructuring aimed at improving governance. Mr Ucovich explains, “We were a family business until a few years ago. Then the Board introduced a lot of changes, and we chose corporate governance as the path for us. We are listed in the local stock exchange, and for us, it is very important to be transparent.”

The company’s restructuring has paid off. Its Porvenir mine is the world’s most cost effective. This does not mean cutting corners on quality, however. Cerro Lindo employs the latest technology and will be completely emission free. It will also use desalinated ocean water instead of nearby river water.

“We are committed to being completely environmentally friendly, to using the best technology and to including our stakeholders in our development,” asserts Mr Ucovich.