03_Carmen Copper Case Study - Brownfield Upgrade CMD 2014_FINAL

Life cycle approach III: process optimization at existing facilities, increasing recovery while reducing opex - Carmen Copper Brownfield

Upgrade Project By Stuart Sneyd

Capital Markets Day 2014 December 2014

Outotec All rights reserved

Contents

Carmen Copper project Outotec scope of work Outotec strategy in action Example value creation: Copper recovery Example value creation: Power consumption Example value creation: Project delivery Technology partnership benefits

Dec 4 Outotec CMD 2014: Case Carmen Copper 2


The challenge

Carmen Copper Corporation wished to upgrade capacity at their existing copper/gold concentrator originally built in the 1970s.

The upgrade had to be integrated into the existing operations and provide complete end to end technology solution for providing additional production capacity.

Project requirements: Experienced technology partner involved throughout all stages of a brownfield

upgrade project from conceptual flow sheet development, through to detailed engineering, construction and commissioning.

Project partner must have an integrated proprietary technology, process know-how, project delivery and plant operations capability.

Alibility to have a flexible partnership approach combining Carmen Coppers

intimate knowledge of their ore characteristics with a trusted, knowledgeable technology provider able to deliver a fast-tracked project execution timeline.



Project spotlight - Carmen Copper, Philippines Significant South East Asian project Brownfield upgrade EPS project Direct contract with client; no EPCM Successfully brought into operation Ongoing services Commenced discussions for next expansion



http://www.atlasmining.com.ph/projects/carmen-copper-corporation

Carmen Copper Brownfield Upgrade

Carmen Copper Corporation (CCC) is a wholly-owned subsidiary of Atlas Consolidated Mining and Development Corporation (Atlas).

CCC has an operating agreement with Atlas and it has exclusive operating rights over the in situ mineral resources and ore reserves of Carmen, Lutopan and Biga mineral deposits.



What was Outotec's scope

Stage 1: Ore throughput upgrade from 40,000 t/d to 60,000 t/d with new plant and equipment

Stage 2: Modernisation of the existing plant to achieve lower production costs improved health, safety and

environmental standards operational excellence thereby helping to maintain good

relationships with their local communities



Technology supplied all based on Outotec's proprietary equipment


2 x 6MW Ball Mills c/w Trommels Flotation Circuit, incl. 4xTC300, 10xOK16

Blowers 39m Tailings Thickener c/w free standing tank

2 x 24m Concentrate Thickener retrofits Courier Analyzer, PSI, Sampling System and DCS

Proprietary equipment offering across all Minerals

Processing business lines

including Comminution,

De-watering and Flotation


Technology supply

Flowsheet design

Preliminary engineering

study

Detailed engineering

Full detail drafting

Installation advisory services

Plant commissioning & optimisation

Life Cycle Services order

Scope of work for project extended beyond equipment delivery into life cycle services


Value of post equipment delivery services approximately 2M and on growing


Visual of scope of work



A good example of Outotec strategy in action - leveraging technology leadership & geographical presence


EMEA Americas APAC

Current minerals and metals

IWT Energy

Delivery

Systems integration

Service

Proprietary equipment

Technology

Larger share of customer capex and opex

Strengthening geographic presence

CORE: Process

technology leadership

Service

Proprietary equipment

Delivery

Systems integration

Technology

A life cycle solution partner for our

customers

More Opex

Larg

er s

cope

s


Key steps in securing contract


Initiated by Site Account Management identifying a significant upside opportunity to services business

Close cooperation between Solutions, Technology and Services staff to develop a customised solution offering Local partners In country partners Incorporation of customer supplied steel and labour

Supported by Outotecs Filipino agent


How Outotec generates value for its clients - HG Cleaner Circuit example

Initially only Rougher (flotation)

circuit to be upgraded Early consultation with Client

identified a cleaner capacity constraint

Three options were investigated by Outotec

Preferred flowsheet investigated under laboratory conditions



0.00

5.00

10.0

15.0

20.0

25.0

50.0 55.0 60.0 65.0 70.0 75.0 80.0 85.0 90.0 95.0

Cu G

rade

(%)

Cu Recovery (%)

HG Cleaner Circuit

Early laboratory testwork indicated low Cu concentrate grades

Optical mineralogy conducted indicated presence of pyrite

Flotation conditions were therefore modified with finer P80 regrind with lime addition

Improved plant operating

results, new circuit configuration validated > fit for purpose circuit design


Lab Results Product Recovery >80% Concentrate grade 24.5% Cu Plant Targets Product recovery > 80% Concentrate grade > 26.5% Cu

py

bn

cpy

CuS

cpy

cpy

cpy

pypy


Primary benefits

The HG cleaner circuit design took production requirements into consideration. The technology partnership promoted a collaborative approach and ensured that during the project design and execution phases, maximum plant production was achieved. This has led to a cleaner circuit design that has been integrated into the float circuit with

minimal disruptions to plant production and plant availability.

The HG cleaner circuit design accommodates for both Lutopan and Carmen ore reserves. The technology partnership allowed for the project team to be involved in the upfront laboratory test work. The results were used to refine the equipment selection and circuit design. This will ensure

less circuit instability when the feed transitions completely from Lutopan to Carmen ore.

The HG cleaner circuit upgrade project was completed on schedule even though the project had a challenging timeline. This technology partnership allowed for Carmen Copper and Outotec to have a working

agreement which enabled the design and construction phases to be overlapped and shortened the transition through the various stages of project implementation.



Plant performance recovery increase


Before TC300 + HG Cleaner circuit @ 40,000 t/d Cu recovery 83% (2%); Cu final grade 27% (1%) Initial TC300 + HG Cleaner circuit @ 60,000 t/d Cu recovery 85% (2%); Cu final grade 28% (1%) Current TC300 + HG Cleaner circuit @ 60,000 t/d Cu recovery 87% (2%); Cu final grade 27% (1%)

Plant results confirm flotation upgrade achieves production targets

Increase Cu recovery of 4% represents an increased value of recovered copper of approximately AUD 26 million p.a.


Improved energy consumption example

Flotation Cells power consumption: Old Wemco cells = 1.4 kW / m3 flotation volume New Outotec Tank Cells = 0.7 kW / m3 flotation volume

Specific power reduction approximately 0.7 kW/m3 or -50%

compared to current installed base or cost saving between the two circuits is approximately AUD 1.5 million per year

Further opportunity to upgrade existing installed base to secure

further operational costs savings

Helping the clients to move production costs down the cost curve is one way Outotec delivers value



Partnerships benefits

Improvement in operational efficiency through access to the latest technologies

and experienced people

Reduction in costs offer competitive engineering rates, and

flexibility in the procurement process

Improvement in plant availability provide services contracts for spare parts

& shutdown services

Improvement in site competencies on site training and operational support

Improved project delivery fast track delivery with direct contracting

and single one stop shop capability


Client has objective

Established project team understand the

site conditions

Provide an engineering solution

to meet current & future needs

Fast tracked Detailed

Engineering & Design

Fast tracked & Project

Execution (EPC)

Site Support & Services (Ongoing

Relationship)


Photos




March 2013


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July 2013



September 2013



October 2013

Life cycle approach III: process optimization at existing facilities, increasing recovery while reducing opex - Carmen Copper Brownfield Upgrade ProjectContentsThe challengeProject spotlight - Carmen Copper, PhilippinesCarmen Copper Brownfield UpgradeWhat was Outotec's scopeTechnology supplied all based on Outotec's proprietary equipmentScope of work for project extended beyond equipment delivery into life cycle services Visual of scope of workVisual of scope of workA good example of Outotec strategy in action - leveraging technology leadership & geographical presenceKey steps in securing contractHow Outotec generates value for its clients - HG Cleaner Circuit exampleHG Cleaner CircuitPrimary benefitsPlant performance recovery increaseImproved energy consumption examplePartnerships benefitsPhotosSlide Number 20Slide Number 21Slide Number 22April 2013Slide Number 24Slide Number 25Slide Number 26Slide Number 27Slide Number 28Slide Number 29Slide Number 30Slide Number 31Slide Number 32Slide Number 33Slide Number 34

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03_Carmen Copper Case Study - Brownfield Upgrade CMD 2014_FINAL