TIDMHOC
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.
_____________________________________________________________________________________
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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