SOUTHERN PERU COPPER CORPORATION 18. “By the end of 2003, thirty-one  of PAMA proyects were already completed,  including all commitments related to the  Company’s operations in Cuajone and  Toquepala.” Cathodes washing at the SWEW  Plant in Toquepala Cathodes handling at the SWEW  Plant in Toquepala Price/Volume data 2004  2003  2002 Average Metal Prices Copper (per pound – LME)  $  1.30 $  0.81  $  0.71 Copper (per pound – COMEX)  $ 1.29 $  0.81  $  0.72 Molybdenum (per pound)  $  16.21 $  5.32  $  3.77 Silver (per ounce – COMEX)  $ 6.68 $  4.89  $  4.60 Sales volume  (in thousands) Copper (pounds)  864,395 827,086  805,642 Molybdenum (pounds) (1)  23,503 19,953  18,178  Silver (ounces)  4,597 4,192  4,034  DIVIDENDS AND CAPITAL STOCK ENVIRONMENTAL AFFAIRS  The Company paid dividends to stockholders of $191.4  million or $2.39 per share in 2004, compared to $45.4  million or $0.57 million per share in 2003, and $28.7  million (including $7.2 million used by the Company  to honor an overdue receivable) or $0.36 per share  in 2002. Distributions to the investment shares minority interest  were $1.5 million, $0.4 million and $0.3 million in 2004,  2003 and 2002, respectively. On January 31, 2005, a transaction dividend of $1.25  per common share, totaling $103.4 million, was declared  payable March 1, 2005.  (1) The Company’s molybdenum production is sold as concentrates.  Volume represents pounds of molybdenum contained in concentrates. The Company´ s dividend policy continues to be re- viewed during the Board of Directors´ meetings, taking  into consideration the current intensive capital invest- ment program, including the smelter modernization,  and the expected future cash flow generated from  operations.  The Company’s activities are subject to Peruvian laws  and regulations. The Peruvian government, through its  Ministry of Energy and Mines (MEM), conducts seven  annual audits of SPCC’s mining and metallurgical opera- tions. Through these environmental audits, all matters  related to environmental commitments, compliance  with legal requirements, as well as atmospheric emis- sions and effluent monitoring are reviewed. The Ilo op- erations (smelter and refinery) are audited three times a  year, and the operations at the Toquepala and Cuajone  mines, twice a year at each mine. The Company has not  incurred in material breach of environmental laws and  regulations. As part of these regulations, SPCC submitted in 1996 the  Environmental Compliance and Management Program  (known by its Spanish acronym, PAMA) to the Peruvian  government. A thorough third party environmental audit  was conducted in order to elaborate the PAMA. The  PAMA covered all current operations that did not have an  approved environmental impact study at the time. SPCC’s  PAMA was approved in January 1997 and contains 34  mitigation measures and projects necessary to: (1) adapt  the existing operations to the environmental standards  established by the government, and (2) identify areas af- fected by inactive operations which needed remediation. By the end of 2003, 31 of such projects were already  completed, including all PAMA commitments related to  the Company’s operations in Cuajone and Toquepala.  The three pending PAMA projects are related to the Ilo  smelter operations. The primary areas of environmental  concern are: (1) Smelter reverberatory slag eroded from  the slag deposits up until 1994, and (2) Atmospheric  Emissions from the Ilo smelter. The slag remediation program is progressing as sched- uled and should be completed by 2007. Once the pro- gram is completed, no environmental risks are foreseen  regarding this issue. SOUTHERN PERU COPPER CORPORATION 19.