Investment commitment

Economic and social investment

We have committed to make a phased payment of US$22 million to the Peruvian Government, to be paid during the exploration phase. Our initial commitment with the Peruvian Government was to invest US$60 million; Rio Tinto has overpassed this amount between 2006 and 2008.

Creating a community trust fund

Fifty per cent of the US$22 million phased payment has been allocated by the Peruvian Government to the La Granja Social Trust Fund (Fondo Social La Granja). The Fund is administrated both by the Municipality of Querocoto and Rio Tinto-La Granja and will execute sustainable development projects in the district of Querocoto. As a member, we have financed a number of studies intended to promote development in the district.

Permits

Rio Tinto-La Granja signed a contract on January 31, 2006 with the Peruvian Government, which subsequently transferred to us the right to explore and develop the project. We are currently exploring and evaluating the concession with the authorizations granted by the Ministry of Energy and Mines.