What is status of 10 major projects in large-size copper mining?
30-Jul-2012 Estrategia – News
In accordance with last survey carried out by Cochilco large-size mining projects exceed US$104 thousand million from which US$71 thousand million would be carried out in 2012-2016 period which means a new forecasted investment record for Chilean mining industry. From total investment, US$80,409 are for copper projects and from these, US$50,348 are gathered by 10 major projects. What is status of these megaprojects?
1) Los Pelambres Expansion IV
The Antofagasta Minerals’ Los Pelambres deposit owned by Luksic Group is located at about 170 km east Los Vilos. Base resources amount to about 6,000 million tons with 0.51% copper grade exceeding in more than four times the ore reserves of current operation. Estimated minimum investment is US$7,000 million. Prefeasibility study is in progress and it is expected to be completed early 2013 to be followed by feasibility study. Startup is not expected to occur before 2019 with gradual production increments from 2020 onwards.
2) Collahuasi Expansion Phases II and III
Doña Inés de Collahuasi Mining Company, controlled by Anglo American, is carrying out an expansion project aimed at increasing production from current 440,000 copper fines tons per year up to more than 1 million tons. This project originally only considered two increment stages in mineral treatment process, however in 2011 project was redefined to three stages. Phase II, currently in construction, requires an investment of US$300 million. Phase III is going through prefeasibility study that considers the option of adding one or two extra grinding lines to reach 260 KTPD (thousands of metric tons) or even 350 KTPD.
3) New Andina Phase II
This is the second phase of Codelco’s Andina expansion intended to optimize the mine potential. The project is an expansion of nominal capacity of mineral treatment to go from current 94 KTPD to 244 KTPD. It is estimated an additional output of up to 330 thousand tons/year of copper fines would be obtained thus taking Andina to produce more than 600 KTPY of copper fines in concentrate. Estimated investment is US$6,441. The project is going through feasibility stage (basic engineering) that started in 2009 and is expected to be completed in January 2013. Startup most probable date is scheduled for the end of 2019.
4) Quebrada Blanca Phase II
Teck’s Minera Quebrada Blanca is a primary hypogene sulphides deposit emplaced underneath the secondary supergene sulphides deposit the plant is currently working via lixiviation to obtain about 80 KTPY of SX-EW cathodes. Development of this deposit will coincide with reduction of leachable economical reserves and will allow the mine to extend its useful life for about 39 additional years. Investment is estimated at US$5,590 million. The project completed its feasibility study in April 2012 which almost doubled its investment budget. Environmental Impact Study has been submitted for approval. Startup is expected for end of 2016 previous to final stages of exploitation of leachable ores.
5) El Abra Mill Project
In July 2010 El Abra mining company (Freeport McMoran) started the prefeasibility study for construction of a new concentrator plant aimed to process between 150 KTPD and 200 KTPD entailed to produce about 300,000 tons of copper fines in concentrate and double its current copper cathodes throughput. Investment estimated requirements are US$5,000 million. The company is currently developing the feasibility study for the project in order to determine final processing capacity and investment requirement. Startup is scheduled for end of 2017.
6) Radomiro Tomic Sulphides Phase II
It corresponds to second phase of improved use of sulphides obtained from Radomiro Tomic, Codelco, after oxides exploitation which reserves are about 2,600 million tons with average copper grade of 0.48%. Radomiro Tomic is also studying bioleaching of marginal low-grade sulphides by using available hydrometallurgical infrastructure. Estimated investment is US$4,482 million. Feasibility study was initiated in 2012 and construction is expected to begin during the second half of 2013 while startup is tentatively scheduled for second half of 2016.
7) Sierra Gorda Project
Sierra Gorda is a deposit located close to Spence and Tesoro mines (140 Km. east of Antofagasta) being developed as a joint venture by KGHM International (55%) and Sumitomo (45%). KGHM purchased the deposit from QuadraFNX Mining in December 2011 and became owner of Quadra FNX operating work sites and major shareholder in Sierra Gorda project. Estimated investment is US$3,900 million and startup is expected for 2015. The Committee of Ministers recently approved the deposit after having rejected a claim a transportation company had filed against the mining site.
8 ) Relincho
Not including desalination, the Canadian Teck’s project requires an investment of US$3,900. The project is currently going through its feasibility study in full execution status. Exploration campaign will render results during 2012. Startup is estimated for a date after 2018. However, like the Hypogene Project in Quebrada Blanca, it would completely operate with desalinated seawater. The company has been working in Relincho for four years so far, consequently exploration measures had to be resumed. The deposit with abundant reserves of copper and molybdenum is located at 50 Km north of Vallenar.
9) Escondida OGP I
Escondida OGP I is part of BHP and it came into light after the company redefined the original Escondida Phase V project in 2011 with a new organic growth model that was started with addition of a grinding mill to Laguna Seca plant after constructing a new 152 KTPD concentrator plant to replace Los Colorados plant that is scheduled to be dismantled in order to provide proper conditions for mining the ore existing in that location. Startup of grinding mill is expected for early 2013 while new plant is scheduled to start at the end of 2015. Investment is in the neighborhood of US$3,800 million.
10) Chuquicamata Underground
Edge technology will be used by Codelco in the underground project which reserves have been estimated at 1,700 million tons with 0.7% copper grade. Block caving is the technology to be used in four fronts of 30 to 40 KTPD each to obtain up to 340 KTPY of copper fines. Development of this project will coincide with the end of useful life of pit and it would feed mineral to the currently operating Chuquicamata concentrators. Investment is set at US$3,735 million.
