Codelco’s Board of Directors to approve resources for Chuquicamata underground project during first half of 2013
20-Nov-2012 La Tercera – News
The Project manager, Alvaro Aliaga, commented that feasibility study of project will be submitted in December. Almost US$200 million out of the US$876 million available for this stage, have already been invested
Board of Directors of the state-owned Codelco will analyze and authorize the US$3,000 million investment for the Chuquicamata Underground project during the first half of next year, after the feasibility stage is completed in December this year, Alvaro Aliaga, manager of the project, indicated last Monday.
“We have 6 months from submittal date. We will be starting the process in December which means the engineering stage is complete and the Board will have about 6 months from that moment (to authorize investment)”, the executive said to the press.
The executive said that feasibility studies continue and US$200 million have been invested out of the total US$876 million they have been assigned.
“About US$200 million from that total have already been invested and we expect to be able to submit our project to Codelco’s management in December in order to start the process to obtain approval for the remaining US$3,000 million assigned to the project”, he stated.
“We have finished the feasibility stage to be able to access to the remaining funds given the fact that we have also started construction of some infrastructure in order to accomplish scheduled start-up in 2019”, he added.
Regarding the concern of employees as to the headcount reduction in the mine, Aliaga said that they are looking for the best way to minimize the impact of the project.
“We are working with Chuquicamata Division in order to have some plans to make this transition in the best possible way so that the project impact is muffled and minimized. Some retraining possibilities exist for the current Chuquicamata staff to develop some projects to secure training of employees to acquire the skills required for this large size and high level operation in the future”, he commented.
Chuquicamata Underground project, a landmark for the underground operations of largest open pit mining operation in the world, considers a US$3, 828 investment including US$876 million for early works that were approved in October 2011.
Start-up is expected for 2018.
Chuquicamata today
Codelco’s CEO, Thomas Keller, referred to costs increase the Chuquicamata Division is experiencing and stated that they have incremented as a result of lower ore grade and the long-distance production transportation.
Likewise, he emphasized, without providing figures, that production will be reduced in the operation to be lower than last year, however it will be still aligned with expectations.
“(Production) will be aligned with our forecast, but it will be lower than last year (…). There is a clear increase (of costs) with ore grade lowering and also longer distances to be run by the mineral carrying transportation from the mine to the production unit. Chuquicamata is today operating at the lowest sector of mine and consequently the trucks are to run long distances to carry mineral with the corresponding cost increase it implies”, he asserted.
In that opportunity the CEO said he agreed with BHP Base Metals President, Peter Beaven, when referring to the fact that national mining is going through an “inflection” moment.
“I think Chile, from a country standing, has lost a lot of competitiveness in mining, mainly because we have been very successful. Exchange rate stress and salaries increase have affected our costs structure and have become the “other” side of success but we also have other pending issues regarding productive use of our resources and enhancement of our practices to incorporate technology in order not to lose competitiveness”, he stated.
