SUBSEQUENT EVENTS

12 Months Ended

Dec. 31, 2017

SUBSEQUENT EVENTS:

SUBSEQUENT EVENTS:

NOTE 19—SUBSEQUENT EVENTS

DIVIDENDS:

        On January 25, 2018, the Board of Directors authorized a dividend of $0.30 per share paid on February 27, 2018, to shareholders of record at the close of business on February 13, 2018.

MICHIQUILLAY PROJECT ACQUISITION:

        On February 20, 2018, the Company won the public bidding process for the Michiquillay project in Cajamarca, Peru. The Company's tender proposed a price of $400 million and an annual royalty of 3% on net sales. Michiquillay is a mining project with 1,150 million tons of mineralized material with a copper content of 0.63%. The estimated capital investment is approximately $2,500 million and it is expected to start production in 2025 with a production of 225,000 tons of copper per year for an initial estimated mine life of more than 25 years.

SAN MARTIN STRIKE:

        On February 28, 2018, the striking workers of the San Martín mine of IMMSA held an election to vote on the union that will hold the collective bargaining agreement at the San Martín mine. The Federacíon Nacional de Sindicatos Independientes (the National Federation of Independent Unions), won the vote by a majority. As a result, once the Federal Mediation and Arbitration Board issues a ruling recognizing the election results, IMMSA will be entitled to negotiate and enter into a collective bargaining agreement with the Federacíon Nacional de Sindicatos Independientes to end the strike that began in 2007 and resume operations at the San Martín Mine.