SOUTHERN PERU COPPER CORPORATION 42. Mineral transfer hopper in Cuajone SOUTHERN PERU COPPER CORPORATION 43. ECONOMIC RELATIONS WITH OTHER COMPANIES DUE TO LOANS THAT COMMIT MORE THAN 10% OF THE  STOCKHOLDER’S EQUITY OF THE ISSUING ENTITY REASONS FOR THE CHOSEN OPTION PRINCIPLE ADMINISTRATIVE, JUDICIAL OR  ARBITRATION PROCEEDINGS CHANGES OF THOSE RESPONSIBLE FOR  THE PREPARATION AND REVISION OF THE  FINANCIAL INFORMATION CORPORATE BONDS: INFORMATION RELATED TO STOCK EXCHANGED  IN THE STOCK MARKET  Common Stock:  To date, there are no loans with other companies that  compromise more than 10% of SPCC’s property. Stock Exchange and the Lima Stock Exchange, and are  entitled to one vote per share.  Along with the exchange of labor shares, the holders of  common shares of the Company exchanged their shares  for class A common shares, with the right to five votes  per share.  LITIGATION:  See Note to Consolidated Financial State- ments. interest rate equivalent to Libor + 3.00%. In July and De- cember 2000, the Company placed $30 millions and $20  millions in corporate bonds; both issues mature in 2007  and generate a nominal interest rate of 8.75%.  In January 2005, the Company opened a credit line worth  US$200 million with a group of banks syndicated by Ci- tibank. On January 27, 2005, the Company paid US$150  million to repay bonds worth that amount issued in 2001,  2002 and 2003. In addition disbursements for US$20  millions and US$30 millions were made as prepayment  on the balance of prior bond issues. The new credit line  was opened for 5 years at LIBOR plus 1.25% on the first  year; the spread will start increasing on the third year,  and will increase 0.125% every year thereafter. Principal  amortization will start on the third loan year. The Com- pany will pay bondholders a 1% or US$2 million penalty  on advance repayment.  The class A common shares and the common shares have  a nominal value of $0.01 per share. As of December 31, 2004, $199.0 millions out of the  $750-million program have already been issued.  In November 2001, the Company was authorized by  CONASEV to increase the $200 million program, approved  in 2000, to $750 million; as part of this program, on April,  2003, the Company placed $25 millions in corporate bonds  with a face value of $1,000 each, with investors in Peru.  This issue matures in 2010 and has a floating interest rate  equivalent to Libor + 2.375%. In addition, on May, 2003,  the Company placed $25 million in corporate bonds with  a face value of $1,000 each, with investors in Peru; this  issue matures in 2010 and has a floating interest equiva- lent to Libor + 2.3125%. On February 2002, the Company  placed $25.9 million in corporate bonds; this issue ma- tures in 2012 and has a floating interest rate equivalent to  Libor + 3.00%. On December 2001, the Company placed  73.1 millions; this issue matures in 2011 and has a floating  In the month of June 1997, the Company placed $50 mil- lions in corporate bonds with the same face value and  the same market as the issues mentioned in the previ- ous paragraph. Nominal interest rate was set at 8.01%  (8.25% effective), and will mature in June of 2004. José N. Chirinos acts as Director of Comptroller and Fi- nance, and Marco A. García acts as Finance Manager. On November 29, 1995, the Company offered to ex- change the recently issued common shares for all and any  labor shares of the Peruvian Branch of the Company, at a  ratio of one common share per four S-1 shares and one  common share per five S-2 shares. The exchange expired  on December 29, 1995, with 80.8% of the total labor  outstanding stock exchanged for 11,479,667 common  shares. These common shares are quoted in New York  Part of management’s compensation is linked to the  corporation’s results through a profit sharing and perfor- mance bonds program.  26. It seems advisable management receives compensa- tion that is at least partly determined by the compa- ny’s results, so as to ensure they meet the goal of  maximizing value for the company’s shareholders.  (Principle V.I.5.)  X COMPLIANCE 0  1  2  3  4 