CODELCO NORTEChallenges and Opportunities
CRU 7th World Copper Conference, Santiago, Chile
April 2008
Sergio Jarpa, Corporate Vice President Codelco Norte
CODELCO NORTE Challenges and Opportunities
CODELCO NORTEChuqui Norte
Expansión Norte Mina Sur
MM
Toki
Genoveva
Opache
Quetena
Radomiro Tomic
Mina Sur
Chuquicamata
CHUQUICAMATA
CALAMA
Radomiro Tomic MineOpen pit mining,
commisioning in 1995
Chuquicamata MineOpen pit mining, industrial scale
commisioning since 1915
Sur Mine Open pit mining, started in 1970 as
La Exótica,
CODELCO NORTE Challenges and Opportunities
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Ruta 24 Cobija
Bypa ss MM
Circunvalac ionesPe ri urba nas
£¤5
£¤1
£¤24
£¤25£¤23
£¤21£¤50
£¤27
£¤180
£¤272
£¤28£¤26
£¤180
£¤23
£¤23
B-400
CALAMACALAMA
BAQUEDANOBAQUEDANO
TOCOPILLATOCOPILLA
MEJILLONESMEJILLONES
MARIA ELENAMARIA ELENA
CHUQUICAMATACHUQUICAMATA
SIERRA GORDASIERRA GORDASAN PEDRO DE ATACAMASAN PEDRO DE ATACAMA
ANTOFAGASTAANTOFAGASTA
CODELCO NORTE Challenges and Opportunities
2000 l/s from own sources in the mountain range1. Water :
390 MW from the SING, Electroandina Company.Contracts until 2009 and 2017. Coal and Diesel Generation
2. Electric Power :
Diesel and bunker: via trucks from Antofagasta3. Fuels :
Via truck or railroad from the ports of Antofagasta, Iquique, Mejillones and other places from the country.
4. Materials :
Own production, occasional purchases from Mejillones.5. Acid :
Railroad (Chuqui) and trucks (RT y SBL).6. Transportation :
Roads: Antofagasta – Tocopilla.Railroad: to the ports of Antofagasta and Mejillones.Air: 3 airlines.
7. Logistic routes :
CODELCO NORTE Challenges and Opportunities
• Sustainable Development Policy: Environmental Management – Safety and Social Responsibility.
• ISO 14.001 and 9001 and OHSA 18.001 Certification
• Chuquicamata cease to be an SO2 emission saturated zone and has its own air quality monitoring system.
• Mining Camp relocation to Calama
• Environmental Investment: 1,000 MUS$ in last 10 years
• EIA Puno and MM Proceedings
• Codelco Strong Social Commitment with local community
CODELCO NORTE Challenges and Opportunities
Total in Situ 17.707 Millions of Tons@ 0,52 % Cu - 92,7 Mtons of i.s. Copper
CODELCO NORTE Challenges and Opportunities
-
10
20
30
40
50
60
70
80
90
100
110
120
Division
Mto
n
Recursos 26 39 13 91 102 99
Reservas 10 13 9 34 44 38
RT Chuquicamata MMH DCN Andina Teniente
CODELCO NORTE Challenges and Opportunities
ENMS
HidrosurCathode
Heap Leaching SX-EW
CHUQUI
MM Project
ER
Roaster
Cathode
Calcine
Smelter
Bioleaching
Heap LeachingRT
Anodes
Mill
SX-EW
Hidronorte
Sulphur Line
Cu/MoConcentrateCalcine
CODELCO NORTE Challenges and Opportunities
PREStripping
MMH
20522007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Bioleaching oftailing sands
RT OreBioleaching
Roasting procesFor MMH concentrates
2020 2023
MMHUnderground
ChuquiUnderground
Chuqui Open Pitclosed
MMHOpen Pit
CODELCO NORTE Challenges and Opportunities
KTPD
Ave
rage
Gra
de
(%)
RTS
Chuqui Open Pit RTS Chuqui UG MMH Open Pit MMH UG Average Grade (%)
CODELCO NORTE Challenges and Opportunities
Undevelopedplan
0
20
40
60
80
100
120
140
160
180
200
2008 2010 2012 2014 2016 2018 2020 2022 2024
Chuqui Under. Chuqui Open P. MM Under. RT MM Open P.
RT Plan
60 ktpd
2010 020
40
60
80
100
120
140
160
180
200
2008 2010 2012 2014 2016 2018 2020 2022 2024
VaR95% : MUS$ 2.055
VaR95% : MUS$ 480
ΔVaR95%: MUS$ - 1.575Variation
Chuqui Under. Chuqui Open P. MM Under. RT MM Open P.
Risk Analisys to 95% Reliability
CODELCO NORTE Challenges and Opportunities
4
CHANCADOR4
MINA R.TOMIC
MINA CHUQUI
7,2
Kms7,2
STOCKPILEFINAL
CORREA
PRIMARY CRUSHER STATION
INITIAL STOCKPILE
CONVEYORBELT
FINALSTOCKPILE
StockpileInicial
CODELCO NORTE Challenges and Opportunities
38S
42N
49NW
48N
51W
52W
53W
CODELCO NORTE Challenges and Opportunities
CODELCO NORTE Challenges and Opportunities
Cu
tA
cum
(%)
Kto
nC
u F
ino
Añ
o
CODELCO NORTE Challenges and Opportunities
• Continue to mitigate geotechnical risk by monitoring and unloading.
• Improve “control” of ongoing operations – benchmarking and operational excellence integration.
• Investigate pre-stripping of RT and acceleration of MMH open pit as opportunities to mitigate risk.
• Revisit high arsenic issue - a long term strategic perspective considering market-values of concentrates and environmental restrictions.
• Reassess the mill expansion strategy - requires a rigorous quantitative approach that fully considers associated risks but also the opportunities to expand production capacity based on our significant mineral resources potential.
• Reevaluate Toki and bioleaching of low grade sulphide resources to mitigate exhaustion of MS an RT leacheable ore.
CRU 7th World Copper Conference, Santiago, Chile
April 2008