Provisions (Tables)
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12 Months Ended |
Dec. 31, 2024 |
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| Provisions |
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| Schedule of detailed information about provisions |
| (a) | This caption is made up as follows: |
| | | | | | | | | | | | | | | | | | | | | | | | | As of | | | | | | Reclassifications | | | | As of | | | | | | Reclassifications | | | | As of | | | January 1, | | | | Accretion | | and | | | | December 31, | | | | Accretion | | and | | | | December 31, | | | 2023 | | Changes | | expense | | others | | Disbursements | | 2023 | | Changes | | expense | | others | | Disbursements | | 2024 | | | US$(000) | | US$(000) | | US$(000) | | US$(000) | | US$(000) | | US$(000) | | US$(000) | | US$(000) | | US$(000) | | US$(000) | | US$(000) | | | | | | | | | | | | | | | | | | | | | | | | Closure of mining units and projects (b) | | 254,247 | | 11,076 | | 12,067 | | — | | (18,024) | | 259,366 | | 73,090 | | 8,476 | | (6,642) | | (17,372) | | 316,918 | Environmental liabilities | | 16,261 | | 7,097 | | — | | 3,671 | | (4,763) | | 22,266 | | 4,062 | | — | | 5,133 | | (6,634) | | 24,827 | Environmental contingencies | | 8,416 | | (1,868) | | — | | 97 | | (2,956) | | 3,689 | | 2,987 | | — | | — | | (1,166) | | 5,510 | Safety contingencies | | 6,716 | | (1,702) | | — | | 7 | | (58) | | 4,963 | | (373) | | — | | — | | 76 | | 4,666 | Labor contingencies | | 5,131 | | (1,343) | | — | | 36 | | — | | 3,824 | | 643 | | — | | — | | (181) | | 4,286 | Tax contingencies | | 5,005 | | (2,014) | | — | | — | | — | | 2,991 | | (1,043) | | — | | — | | — | | 1,948 | Obligations with communities | | 2,105 | | (290) | | — | | 23 | | — | | 1,838 | | (1,048) | | — | | — | | — | | 790 | Other provisions | | 637 | | 1,126 | | — | | — | | — | | 1,763 | | (408) | | — | | — | | — | | 1,355 | | | 298,518 | | 12,082 | | 12,067 | | 3,834 | | (25,801) | | 300,700 | | 77,910 | | 8,476 | | (1,509) | | (25,277) | | 360,300 | | | | | | | | | | | | | | | | | | | | | | | | Classification by maturity: | | | | | | | | | | | | | | | | | | | | | | | Current portion | | 94,171 | | | | | | | | | | 107,491 | | | | | | | | | | 53,900 | Non-current portion | | 204,347 | | | | | | | | | | 193,209 | | | | | | | | | | 306,400 | | | 298,518 | | | | | | | | | | 300,700 | | | | | | | | | | 360,300 |
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| Closure of mining units and exploration projects [Member] |
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| Provisions |
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| Schedule of detailed information about provisions |
| (b) | Provision for closure of mining units and exploration projects - |
The table below presents the movement of the provision for closure of mining units and exploration projects: | | | | | | | 2024 | | 2023 | | | US$(000) | | US$(000) | | | | | | Beginning balance | | 259,366 | | 254,247 | | | | | | Additions (reversals) in estimates and reclassifications: | | | | | Continuing mining units | | 65,397 | | 11,879 | Discontinued mining units, note 1(e) | | 555 | | 6,991 | Exploration projects, note 28(a) | | 496 | | (7,794) | | | 66,448 | | 11,076 | Accretion expense: | | | | | Continuing mining units, note 29(a) | | 7,563 | | 11,249 | Exploration projects, note 29(a) | | 518 | | 589 | Discontinued mining units, note 1(e) | | 395 | | 229 | | | 8,476 | | 12,067 | | | | | | Disbursements | | (17,372) | | (18,024) | | | | | | Ending balance | | 316,918 | | 259,366 | | | | | | Classification by maturity: | | | | | Current portion | | 25,758 | | 80,548 | Non-current portion | | 291,160 | | 178,818 | | | | | | | | 316,918 | | 259,366 |
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| Sociedad Minera Cerro Verde S.A.A. |
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| Provisions |
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| Schedule of detailed information about provisions |
| | | | | | | December 31, | | December 31, | | | 2024 | | 2023 | | | US$(000) | | US$(000) | | | | | | Current | | | | | Provision for social commitments (a) | | 4,600 | | 400 | Provision for legal contingencies (b) | | 2,411 | | 2,139 | Provision for remediation and mine closure (c) | | — | | 234 | Total current | | 7,011 | | 2,773 | | | | | | Non–current | | | | | Provision for remediation and mine closure (c) | | 234,126 | | 259,610 | Provision for social commitments (a) | | 5,783 | | 9,983 | Provision for tax contingencies (d) | | 3,427 | | — | Provision for uncertainty over income tax treatments (e) | | 2,964 | | 2,140 | Provision for legal contingencies (b) | | 1,127 | | 1,087 | Total non-current | | 247,427 | | 272,820 | | | | | | Total provisions | | 254,438 | | 275,593 |
| (a) | The provision for social commitments is associated with repaving Alata - Congata Road (US$6.1 million as of December 31, 2024 and December 31, 2023) and an irrigation project in La Joya (US$4.3 million as of December 31, 2024 and December 31, 2023). |
| (b) | The provision for legal contingencies is mainly associated to penalties incurred with OSINERGMIN (Supervisory Agency for Investment in Energy and Mining) and SUNAFIL (National Superintendence of Labor Inspection) fines, which have been appealed by the Company. |
| (c) | The Company’s mineral exploration and exploitation activities are subject to environmental protection standards. In order to comply with these standards, the Company has obtained the approval for the Environment Adequacy Program (PAMA) and for the Environmental Impact Studies (EIA), required for the operation of Cerro Verde’s production unit and a mine closure plan approved by the Ministry of Energy and Mines. |
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| Schedule of detailed information about provision for closure of mining units and exploration projects |
The table below presents the changes in the provision for remediation and mine closure: | | | | | | | December 31, | | December 31, | | | 2024 | | 2023 | | | US$(000) | | US$(000) | | | | | | Beginning balance | | 259,844 | | 209,660 | Accretion expense | | 11,160 | | 9,917 | Changes in estimates (see Note 7) | | (36,885) | | 40,425 | Progressive mine closure payments in hydrometallurgy process | | — | | (149) | Exchange rate effect | | 7 | | (9) | | | | | | Final balance | | 234,126 | | 259,844 |
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