NOTE 8- BENEFIT PLANS:

Post retirement defined benefit plans:

The Company has two noncontributory defined benefit pension plans covering former salaried employees in the United States and certain former expatriate employees in Peru. Effective October 31, 2000, the Board of Directors amended the qualified pension plan to suspend the accrual of benefits.

In addition, the Company’s Mexican subsidiaries have a defined contribution pension plan for salaried employees and a non-contributory defined benefit pension plan for union employees.

The components of the net periodic benefit costs for the six months ended June 30, 2016 and 2015 are as follows ($ in millions):

	2016			2015
Service cost	$	0.4		$	0.5
Interest cost	0.5			0.5
Expected return on plan assets	(1.3		)	(1.6		)
Amortization of prior service cost (credit)	0.1			(0.2		)
Amortization of net loss	0.1			0.2

Net periodic benefit costs	$	(0.2	)	$	(0.6	)

Post-retirement Health care plans:

United States: The Company adopted a post-retirement health care plan for retired salaried employees eligible for Medicare in 1996. The Company manages the plan and is currently providing health benefits to retirees. The plan is accounted for in accordance with ASC 715 “Compensation retirement benefits”.

Mexico: Through 2007, the Buenavista unit provided health care services free of charge to employees and retired unionized employees and their families through its hospital at the Buenavista unit. In 2011, the Company signed an agreement with the Secretary of Health of the State of Sonora to provide these services to its retired workers and their families. The new workers of Buenavista del Cobre will receive health services from the Mexican Institute of Social Security as is the case for all Mexican workers.

The components of the net periodic benefit cost for the six months ended June 30, 2016 and 2015 are as follows ($ in millions):

	2016			2015
Interest cost	$	0.3		$	0.6
Amortization of net loss (gain)	(0.2		)	(0.1		)
Amortization of prior service cost (credit)	(*		)	(*		)

Net periodic benefit cost	$	0.1		$	0.5

(*) amount is lower than $0.1 million