Focus on the Peruvian mining sector

Perú has international mining companies operating with major assets in the country. That generates a challenge for the social development of the country, as strong authorities are involved in mining and the legal regulation of these activities. There has been an increasing intervention from these authorities in terms of control which brings a lot of challenges to in-house counsel for the designing of policies and procedures to make front to such requirements.

In such scenario, Volcan is investing $500m in its new polymetallic project Romina. Since it is a new mine, it requires a significant legal involvement for permissions before authorities and ESG implementation. We are working together on the project and along with the environmental department for the feasibility of the project.

Mining companies have also intensive interactions in international capital markets for the financing of its development. During 2021, Volcan has successfully refinanced its senior notes due 2022 for $435m and obtained a syndicated loan for over $200m. These financing processes have been very demanding of legal advice in both local and international jurisdictions. Recently, the Peruvian government issued a new Supreme Decree that prohibits outsourcing activities starting in August 2022. Several Peruvian companies that require to outsource their activities have filed claims before Indecopi to protect companies and prohibit regulations against free market practices. This also applied to Volcan and its subsidiaries. Since Volcan a mining company, we are also involved in the developing of Chancay Port, a $1.3bn Project, in a partnership with the SOE Cosco Shipping Ports Ltd. Volcan legal department supervises the negotiation and drafting of EPC Contracts, most relevant permits, relation with authorities. We are also in charge of corporate issues and relationship with our Chinese partner in the joint venture.

As a complement of the Port, Volcan is developing an industrial and logistic project for $200m, next to the Port under the leadership of its General counsel. Finally, the pandemic brought the necessity to quickly adapt to new challenges for in-house counsel. Being able to handle complex transactions in multiple jurisdictions by videoconference required new communication skills and leadership. Even after the lockdown, remote work stayed, and we now interact with other areas in the company, counterparts, public entities and other stakeholders using remote mechanisms. That new circumstances after the pandemic together with the always-changing regulatory framework in Perú, make mining companies support their structure even more in legal departments. Mining activity is becoming is becoming more depending on the adoption of the right legal policies and standards.