Protests in the Republic of Bolivia have affected a mining operation at the San Cristobal mine, which is 100% owned by Minera San Cristobal S.A. (MSA), a subsidiary of Sumitomo Corporation (President and CEO: Susumu Kato; Head Office: Chuo-ku, Tokyo; hereafter, "Sumitomo"). We hereby report on the current situation regarding this matter.

 

On Monday, April 12 local time, residents inhabiting a region far from the mine site started protesting against Bolivia's central government and the Potosi regional government, blocking roads and a railway route near the Chile-Bolivia border and demanding the change of allocation system to the region on mining royalties and that the region's infrastructure to be improved. The protesters also targeted MSC, claiming dissatisfaction with the way it uses water. It was confirmed on Friday, April 16 that MSC's Avaroa office, which is located near the border with Chile and undertakes the company's export procedures, was attacked. 

 

MSC has been abiding by Bolivian laws and regulations concerning the environment and occupational health and safety, as well as complying with global environmental standards in a sincere manner. It is extremely unfortunate that the current protests are partly directed at MSC and Sumitomo despite these efforts.

 

The roads and railway route are still occupied and blocked by protesters, which is making it difficult for MSC to export products and procure necessary materials. MSC has requested Bolivia's central government and the Potosi regional government to resolve the matter promptly. Sumitomo is also doing its best to improve the situation as soon as possible.

 

Besides its economic activities, MSC has, as a good corporate citizen, worked together with the people of Bolivia on social contribution activities, including the adoption of environmental and safety measures. The company's efforts are well in line with the Sumitomo Corporation Group's corporate mission of "achieving prosperity and realizing dreams through business activities". We are determined to continue mining operations that contribute to the economic development of Bolivia.