What are the objectives of the 12th Congress of Prospectors and Explorers (proEXPLO 2021) and what will be its contribution to Peruvian mining?

First, we must bear in mind that Peruvian mining has the potential to be in a privileged position and that, as a country, we can provide the world with minerals that are necessary, not only today, but in 20 years' time, when we will fall back on a greater dependence on batteries for electric cars, copper for electrical system wiring or the different metals that are used in solar panels, among many other elements. In that context, exploration is necessary so that we can consider what will be needed in years to come and explore it today; this is what it takes for a project to become a mine, and to ensure that in 20 years we will still be a competitive mining country.

Regarding the proExplo 2021 congress - an event to be held from March 22nd to 26th, 2021 - its main objective and contribution is to create a space where the latest advances of different mining exploration projects in Peru and the region can be shared and discussed, in addition to the importance of scientific innovation.

Similarly, it will aim to help develop ideas that can lead us to be better positioned as a mining industry in the future. What we invest today is what we will have tomorrow, and proExplo is a space that will contribute to this vision of making the most of this situation and bringing forward all the projects that we have in our portfolios.

Also, this edition will emphasize a correct and feasible transition from an exploration project to a mine, which is something not often talked about in the exploration activity.

We will also explore in depth the role that our country plays in providing the world with minerals - both metallic and non-metallic - towards a sustainable future, where less fossil energy is used and more environmentally friendly resources are promoted.

What do you think about the opinion expressed by Minem at the Congress on Mining Competitiveness and Social Sustainability, that his administration will focus on promoting mining exploration?

I totally agree that exploration is the aspect that we have to emphasize on the most as a mining industry.

The reality is that, according to the latest Estamin, investment in Peruvian mining grew by 25% between 2018 and 2019; however, investment in exploration fell by 13%. This is because exploration itself is a high-risk activity, companies invest without knowing whether they will get a return or not. In scientific terms, the risk of this investment in different countries is the same, but not in the jurisdictional level. This is why exploration is particularly susceptible to additional risks inherent to each country.

Statistics show that in Peru today, companies are willing to invest more in advanced projects, with a higher level of certainty -despite some political or jurisdictional risk-, but there is clearly less and less investment in greenfield exploration, since we represent a higher risk than other countries where foreign companies may take their capital to.

One of the main detriments to our competitiveness as a mining country is the delays in permits and bureaucratic processes. Also, in many cases, companies that have done their job properly and have all the permits from the government may experience social conflicts, without receiving support by the government, despite having received the permit and approval for the technical plan from them, and the company must face this conflict alone.

We must address these issues in order to become more competitive and, especially, to set our sights on time. For example, in Chile, from the moment the company decides to drill until it has a drilling machine operating, an exploration permit can take three to four months; while in Peru it can take a year and a half; so the time it takes to explore one project in Peru is the same it takes to explore six in Chile.

These are situations that make us less competitive and attract less investment, especially high-risk investment which is what we need in exploration in order to take forward the projects that we will be exploring, building and mining in the coming decades.

So, do you agree that an exploration project should not require the same permits as an exploitation project?

I very much agree with that. We have to reach a consensus that is reasonable and avoid filling the entire exploration process with bureaucracy and paperwork.

Statistics show that most exploration projects do not get to the drilling stage, and when it is decided to drill, most of these projects do not exceed four or five boreholes; therefore, the impact on the environment is not as significant, and environmental controls are relatively easy to carry out and monitor.

I very much agree that as the project grows, we must increase the number of permits and protocols; but if you put a similar burden of "permitting" on an exploration project where the intention is to drill a hole to test the area and get an idea of it and see if there is anything interesting, compared to a company that is already defining a resource, there is something wrong with the system.

What does it take to get authorities and communities to understand that exploration requires a different approach?

I believe that in order to change social opinion about the mining industry, companies and the government must work on a positive and realistic message about the benefits of mining; as well as present what the real problems of the industry are and explain why a sustainable future depends on mining.

The average public opinion of someone who does not have a connection with the mining industry is often negative, so there is a problem of ignorance and lack of information from the industry and the government.

Also, for many years we have been looking for the government and politicians to reduce the number of regulations and let us be more competitive; however, when the government has to deal with an anti-mining population group, they won't do it because they are politicians. Therefore, what we need is to convince the population and give a real and joint message, a message that in time will allow people to gradually accept mining, or at least make them listen to both sides and have an informed opinion.

I think it is then that we will be able to reach the government and ask them to reduce the regulations because there are no longer any confrontations with the people; and, in my opinion, this will be the most efficient way to achieve these changes in regulations, to boost the mining projects that we have stopped in so many parts of Peru.

What do you consider to be the main aspects of exploration in the new decade?

Exploration in the new decade, on the technical side, has several new challenges that we are starting to understand now; but we have not been able to decipher things such as exploring at greater depth, exploring under post-mineral cover, exploring in areas of greater vegetation, or entering new jurisdictions, actions that have not been necessary to address in the past because we had many deposits near the surface, in desert areas, among others.

It will also be characterized by a new set of elements being explored; so, nowadays, things like lithium become much more relevant than in the past and all this has to do with the sustainable future and the need for batteries to store energy; etc.

Similarly, we are going to have more competition, because new jurisdictions are being opened compared to 10 or 20 years ago when they were not as friendly to mining as Ecuador and Colombia; and many companies are going to want to explore and take positions in those countries; this means that competition for investment is increasing and we must be even more competitive.

I believe that these will be times of change and we have to be well prepared in order to face them. The most important thing to keep in mind in order to become competitive in this scenario is that we need to be closer to the population in general and give a better image of the industry; a joint message that can lead us to be more competitive and to have more successful projects and, consequently, more investments in exploration and more resources for the country to close the gaps.

What takeaway do you want participants to carry with them at the end of proExplo 2021?

I expect participants to take away that exploration is the starting point for the entire mining industry.

Today, we have several challenges that we have to overcome and work to become more competitive as mining industry and this will lead to more companies deciding to invest in our country.

As we invest more in exploration in our country and grow in innovation and become more competitive, we will be more successful and this will lead us to be able to provide the world with new mines, new deposits, new discoveries that can sustain the economy and make us a more sustainable and environmentally friendly society for the next decades.

On average, a mine takes between 15 to 20 years from the moment the deposit is discovered until it starts to be mined; therefore, we have to realize that what we are exploring today will be a mine responding to the demands of society in 15 or 20 years’ time, not to today's society; therefore, spaces such as proExplo 2021 invite us to meet and discuss ideas, to see how we can improve as a country, as an industry and as explorers.