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Researched by Industrial Info Resources (Sugar Land, Texas)--Last week, Codelco (Santiago, Chile), the world's biggest copper producer, announced intentions to invest $15 billion in the next five years to develop new projects. According to the company, the goal is to secure the company's future production until 2040. "This amounts to about $3 billion in investments per year in each of the next five years," Jose Pablo Arellano, Codelco's chief executive, said at the recently-held World Copper Conference in Santiago.
The challenge will be to use the investments to take full advantage of the enormous world copper demand, led primarily by emerging economie. Codelco owns 10% of the world's copper reserves, while another 20% is owned by other Chilean miners, making Chile a world-leader in copper production. Codelco invested more than $2.1 billion in 2009, a record investment for the company, and one made amidst a world financial crisis that forced other companies to suspend or postpone several mining projects. During 2010, Codelco's investments will reach $2.3 billion, and from 2011 will average $3 billion per year.
The projects will be developed in all of the company's sectors. Major projects include the Ministro Alejandro Hales mine, formerly known as Mansa Mina, in northern Chile, which is slated to start production in 2013 with output estimated at 170,000 tons per year. With a capital investment of $1.73 billion, the development of the Ministro Alejandro Hales project entails the construction of a 50,000-ton-per-day open-pit mine and processing plant, as well as a smelter and refinery to produce 200,000 tons per year of copper concentrate and 300 tons per year of silver. Prestripping will start in July 2011, and project completion is set for 2013.
Also in Northern Chile, Codelco is advancing the Chuquicamata copper mine's transition from open-pit to underground mining. The project aims to mine the resources located under the current open pit, which will cease being profitable by the end of the next decade. The underground operation will process 140,000 tons per day and will have an output capacity of 340,000 tons of fine copper per year, for at least 50 years. Production from the underground mine is expected to start in 2018. This initiative requires an estimated investment of $2 billion. SKM Minmetal (Santiago) is the lead consultant for this project. Located in the Antofagasta Region, Chuquicamata is one of the world's largest open pit copper mines, covering a surface area of almost 8 million square meters and a pit depth of 850 meters. Chuquicamata started operations in 1915.
Radomiro Tomic is another large project in Codelco's North Division. The $370 million development entails the construction of a new rotary primary crusher, an 8-kilometer long conveyor belt system, and a 150,000-ton stockpile, which will enable the company to mine and process sulfide copper ore. The sulfide ore will be transported from the mine site via the new conveyor belt to Codelco's Chuquicamata concentrator plant for processing. With the implementation of this project, both oxide and sulfide ores will be mined at Radomiro Tomic. According to the company, the removal of oxide ores brought sulfide ores to the surface, making the prestripping work easier. By exploiting the sulfide ore, Codelco will overcome the challenge of lower grade mineral ores and lower production of the Chuquicamata open pit in a period of booming metals demand.
A $1.5 billion new mining level is also planned at El Teniente mine, the biggest underground copper mine in the world. This project adds 2.5 billion tons of reserves and extends the mine's life by more than 60 years once the project is complete. The project entails the construction of a 9-kilometer access tunnel to a new production level. The new mining level will allow El Teniente to maintain its current 137,000 tons per day, producing 430,000 tons of fine copper per year.
The Andina Division is also undergoing expansion projects. Phase I, worth $980 million, will increase capacity from 72,000 tons per day to 94,500 tons per day, reaching an annual production of 300,000 tons of copper. Once Phase I is complete, the company will proceed with Phase II, worth $4.75 billion, in order to increase capacity to 244,000 tons per day to produce 643,000 tons of fine copper per year. The project is expected to be complete by 2016.
With an investment of $190 million, Phase II of the Gabriela Mistral mine, formerly known as Gaby, will allow the mine to reach a production capacity of 170,000 tons per year of copper, by incorporating a third line of secondary and tertiary crushers, and increasing the heap leach pad area by 50%. The mine is operated by Minera Gaby SA, which is wholly owned by Codelco. Gabriela Mistral started operations in May 2008, after a 28-month construction period and a total investment of $1.02 billion. Upon completion of the project, the mine will produce 170,000 tons of copper. This is the first mine to operate with completely automated trucks, using a fleet of 11 driverless 930 E-4 trucks provided by Komatsu Limited.
Codelco manages and executes its wide portfolio of projects through its Corporate Vice Presidency of Projects, in charge of the organization, conceptualization, design, construction and commissioning of projects that are worth more than $10 million.
Codelco is the world's largest copper producer. The company operates through five divisions: North, Salvador, Andina, El Teniente and Ventanas. The company also owns and operates the Gabriela Mistral mine and has a 49% interest in El Abra mine. Furthermore, the company has a stake in other mining ventures focused on geological exploration, both in Chile and abroad.
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Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
The challenge will be to use the investments to take full advantage of the enormous world copper demand, led primarily by emerging economie. Codelco owns 10% of the world's copper reserves, while another 20% is owned by other Chilean miners, making Chile a world-leader in copper production. Codelco invested more than $2.1 billion in 2009, a record investment for the company, and one made amidst a world financial crisis that forced other companies to suspend or postpone several mining projects. During 2010, Codelco's investments will reach $2.3 billion, and from 2011 will average $3 billion per year.
The projects will be developed in all of the company's sectors. Major projects include the Ministro Alejandro Hales mine, formerly known as Mansa Mina, in northern Chile, which is slated to start production in 2013 with output estimated at 170,000 tons per year. With a capital investment of $1.73 billion, the development of the Ministro Alejandro Hales project entails the construction of a 50,000-ton-per-day open-pit mine and processing plant, as well as a smelter and refinery to produce 200,000 tons per year of copper concentrate and 300 tons per year of silver. Prestripping will start in July 2011, and project completion is set for 2013.
Also in Northern Chile, Codelco is advancing the Chuquicamata copper mine's transition from open-pit to underground mining. The project aims to mine the resources located under the current open pit, which will cease being profitable by the end of the next decade. The underground operation will process 140,000 tons per day and will have an output capacity of 340,000 tons of fine copper per year, for at least 50 years. Production from the underground mine is expected to start in 2018. This initiative requires an estimated investment of $2 billion. SKM Minmetal (Santiago) is the lead consultant for this project. Located in the Antofagasta Region, Chuquicamata is one of the world's largest open pit copper mines, covering a surface area of almost 8 million square meters and a pit depth of 850 meters. Chuquicamata started operations in 1915.
Radomiro Tomic is another large project in Codelco's North Division. The $370 million development entails the construction of a new rotary primary crusher, an 8-kilometer long conveyor belt system, and a 150,000-ton stockpile, which will enable the company to mine and process sulfide copper ore. The sulfide ore will be transported from the mine site via the new conveyor belt to Codelco's Chuquicamata concentrator plant for processing. With the implementation of this project, both oxide and sulfide ores will be mined at Radomiro Tomic. According to the company, the removal of oxide ores brought sulfide ores to the surface, making the prestripping work easier. By exploiting the sulfide ore, Codelco will overcome the challenge of lower grade mineral ores and lower production of the Chuquicamata open pit in a period of booming metals demand.
A $1.5 billion new mining level is also planned at El Teniente mine, the biggest underground copper mine in the world. This project adds 2.5 billion tons of reserves and extends the mine's life by more than 60 years once the project is complete. The project entails the construction of a 9-kilometer access tunnel to a new production level. The new mining level will allow El Teniente to maintain its current 137,000 tons per day, producing 430,000 tons of fine copper per year.
The Andina Division is also undergoing expansion projects. Phase I, worth $980 million, will increase capacity from 72,000 tons per day to 94,500 tons per day, reaching an annual production of 300,000 tons of copper. Once Phase I is complete, the company will proceed with Phase II, worth $4.75 billion, in order to increase capacity to 244,000 tons per day to produce 643,000 tons of fine copper per year. The project is expected to be complete by 2016.
With an investment of $190 million, Phase II of the Gabriela Mistral mine, formerly known as Gaby, will allow the mine to reach a production capacity of 170,000 tons per year of copper, by incorporating a third line of secondary and tertiary crushers, and increasing the heap leach pad area by 50%. The mine is operated by Minera Gaby SA, which is wholly owned by Codelco. Gabriela Mistral started operations in May 2008, after a 28-month construction period and a total investment of $1.02 billion. Upon completion of the project, the mine will produce 170,000 tons of copper. This is the first mine to operate with completely automated trucks, using a fleet of 11 driverless 930 E-4 trucks provided by Komatsu Limited.
Codelco manages and executes its wide portfolio of projects through its Corporate Vice Presidency of Projects, in charge of the organization, conceptualization, design, construction and commissioning of projects that are worth more than $10 million.
Codelco is the world's largest copper producer. The company operates through five divisions: North, Salvador, Andina, El Teniente and Ventanas. The company also owns and operates the Gabriela Mistral mine and has a 49% interest in El Abra mine. Furthermore, the company has a stake in other mining ventures focused on geological exploration, both in Chile and abroad.
View Plant Profile - 1047830 1080317 1041711 1047852 1049275
View Project Reports - 70000225 70000253 70000238 70000257 70000184 70000093 70000240
Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
