Hochschild MiningPLC - Response to Recent Events in Peru
22/11/2021 07:00
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RNS Number : 0929T Hochschild Mining PLC 22 November 2021
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22 November 2021
Response to Recent Events in Peru
Hochschild Mining PLC ("Hochschild" or the "Company") (LSE: HOC) (OTCQX:
HCHDF) has learnt through various media outlets of minutes of a meeting signed
by the Peruvian Head of Cabinet, certain vice-ministers as well as regional
authorities in the town of Coracora in the Ayacucho region. The minutes refer
to alleged environmental complaints, and state that a commission has been
constituted in order to negotiate the timetable and terms for the closure of
certain mining projects in southern Ayacucho, including the Company's
Pallancata and Inmaculada mines. The Peruvian Head of Cabinet subsequently
indicated that approvals will no longer be granted to facilitate additional
mining or exploration activities in relation to these mining operations. The
Company has not received any formal communication from the government
regarding this matter.
The Company believes this conduct by the Peruvian Head of Cabinet is not in
accordance with Peruvian law and is wholly without merit. Accordingly,
Hochschild will vigorously defend its position and take all action necessary
to ensure that the rights of the Company and its wholly-owned subsidiaries
under Peruvian and international law are respected.
The Company operates under the highest environmental standards and applies
industry best practice. As such, Hochschild categorically rejects any
inference with regard to environmental pollution. The Company's sustainable
operations are strictly regulated and supervised by several Peruvian
regulatory bodies and our activities remain in compliance with their
requirements. The Company has a long history of undertaking its operations
with a commitment to responsible mining and has been publicly recognized on
numerous occasions for its approach to sustainable practices.
In Peru alone, Hochschild employs more than 5,000 people directly and
approximately 40,000 people indirectly. In addition to being a significant
employer, Hochschild contributes a material amount to the economy through the
payment of tax and royalties. The Company and its employees work in
collaboration with local communities, implementing not only social development
projects, but also contributing to the local economies through the hiring of
personnel and services. Hochschild has long-term investment plans to further
develop its mining assets, an example being Inmaculada, where a modified
environmental impact assessment has been submitted for approval and which,
once obtained, will see the continuation of mining activities to deliver
significant benefits to the region and its communities.
The communities located close to the affected operations as well as the trade
unions representing the operations' workforce have issued formal statements in
support of Hochschild. Furthermore, a number of reputable institutions
including the National Confederation of Private Business and the National
Society of Mining, Energy & Oil have declared their support for
Hochschild.
The Company reserves all of its rights under Peruvian and international law
and remains committed to constructively engaging with all parties to ensure
the Peruvian authorities reconsider the illegal position adopted.
Ignacio Bustamante, CEO, commented:
"Hochschild is surprised by this unilateral announcement by the Head of
Cabinet. Our goal is to continue investing in Peru, growing our resources and
extending mine lives, in accordance with the Peruvian legal framework. We are
prepared to enter into a dialogue with the government in order to resolve any
misunderstandings with respect to our mining operations. However, given the
illegal nature of the proposed action, the Company will vigorously defend its
rights to operate these mines using all available legal avenues."
________________________________________________________________________________________
A conference call will be held at 9.00am (London time) on Monday 22 November
2021 for analysts and investors.
Dial in details as follows:
UK Toll-Free Number: 0800 279 7209
International Dial in: +44 (0)330 336 9434
US/Canada Toll-Free Number: 800-458-4121
Pin 7624963
________________________________________________________________________________________
Enquiries:
Hochschild Mining PLC
Charles Gordon
+44 (0)20
3709 3264
Head of Investor Relations
Hudson Sandler
Charlie Jack
+44 (0)207 796 4133
Public Relations
_____________________________________________________________________________________
About Hochschild Mining PLC
Hochschild Mining PLC is a leading precious metals company listed on the
London Stock Exchange (HOCM.L / HOC LN) and crosstrades on the OTCQX Best
Market in the U.S. (HCHDF), with a primary focus on the exploration, mining,
processing and sale of silver and gold. Hochschild has over fifty years'
experience in the mining of precious metal epithermal vein deposits and
currently operates three underground epithermal vein mines, two located in
southern Peru and one in southern Argentina. Hochschild also has numerous
long-term projects throughout the Americas.
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Forward-looking statements
Certain statements contained in this announcement that are not historical fact
are "forward-looking" statements. These forward-looking statements are subject
to a number of risks and uncertainties, many of which are beyond the Company's
control and all of which are based on the Company's current beliefs and
expectations about future events. Forward-looking statements are typically
identified by the use of forward-looking terminology such as "believes",
"expects", "may", "will", "could", "should", "intends", "estimates", "plans",
"assumes" or "anticipates" or the negative thereof or other variations thereon
or comparable terminology, or by discussions of strategy that involve risks
and uncertainties. In addition, from time to time, the Company or its
representatives have made or may make forward-looking statements orally or in
writing. Furthermore, such forward-looking statements may be included in, but
are not limited to, press releases or oral statements made by or with the
approval of an authorised executive officer of the Company. These
forward-looking statements, and other statements contained in this
announcement regarding matters that are not historical facts, involve
predictions. No assurance can be given that such future results will be
achieved; actual events or results may differ materially as a result of risks
and uncertainties facing the Company and its subsidiaries. Such risks and
uncertainties could cause actual results to vary materially from the future
results indicated, expressed or implied in such forward-looking statements.
The forward-looking statements reflect knowledge and information available at
the date of preparation of this announcement. Except as required by the
Listing Rules and applicable law, the Company does not undertake any
obligation to update or change any forward-looking statements to reflect
events occurring after the date of this announcement. Nothing in this
announcement should be construed as a profit forecast.
LEI: 549300JK10TVQ3CCJQ89
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