Votorantim closed a major acquisition in Peru

Votorantim Metais Ltda., part of Brazil?s Votorantim Group, purchased 99% of the shares of Sociedad Minera Refineria de Zinc de Cajamarquilla S.A., a major zinc refinery in Peru, from Canada?s Teck Cominco Minerals Ltd. and Japan?s Marubeni Investments Ltd., which owned 85% and 14% share interests, respectively. The purchase price was US$210 million. The acquisition closed on December 15.

Jean Paul Chabaneix of Rodrigo, Elias & Medrano Abogados, commented: ?This deal means the entry of Votorantim Metais Ltda. to the Peruvian mining picture. From a professional standpoint, it was a very challenging and rewarding experience because of the joint participation of counsel from five different jurisdictions: Brazil, Canada, Japan, USA, and Peru.?

In 2003 Sociedad Minera Refineria de Zinc de Cajamarquilla S.A. produced 129,000 tons of metallic zinc and its net sales totaled US$130 million. Approximately 65% of its production is exported, particularly to Asia and the rest of Latin America. With this acquisition Votorantim Metais Ltda. hopes to produce over 400,000 tons of metallic zinc in 2005, consolidating its place within the top five world producers. Votorantim Metais Ltda. is expected to have net sales of US$1 billion in 2004.

Votorantim Metais Ltda. took Peruvian counsel from Rodrigo, Elias & Medrano Abogados through partners Jean Paul Chabaneix and Luis Carlos Rodrigo P. and associate Alfonso Montoya. Carlos Martínez and Oliverio Lew from Proskauer Rose LLP acted as New York counsel to Votorantim Metais Ltda., while Benone Lara from Muzzi Advogados acted as the purchaser?s Brazilian outside counsel. Votorantim Metais Ltda.?s in-house legal team was led by Alexandre D'Ambrosio and Luiz Marcelo Pinheiro Fins.

The sellers retained Estudio Grau in Peru, through partner Cesar Castro and associate Claudia Lucena, and Shearman & Sterling LLP as New York counsel, through partner Alberto Luzarraga and associate Darryl Kowal. Teck Cominco Minerals Ltd. also took advise from Peter Rozee, its chief legal counsel.