Business Enquirer Issue 108 | Collahuasi | Nov'22

Smith

Collahuasi Mine: Much More Than Copper

With the tagline “Much more than copper”, one can expect there to be far more to the Doña Inés de Collahuasi Mining Company (Collahuasi) than meets the eye.

On the copper front, the Collahuasi mine is an open-pit mining operation located in the Tarapacá region of the Republic of Chile. Collahuasi is among the six main copper mines in the world - the second largest in the country - with one of the greatest copper deposits on the planet.

The shareholders are Anglo American plc (44%), Glencore (44%), and Japan Collahuasi Resources B.V. (12%), who are represented on its Board of Directors. Jorge Gomez is the Executive President.

Collahuasi has estimated reserves of 3.93 billion tons of ore grading 0.66% copper and, since the completion of its $584-million expansion program in 2004, has a long-term copper capacity of 500 000 tons per year.

Murdoch

Collahuasi

Collahuasi

This grand capacity is further complemented by a lengthy life. According to their latest Life of Mine plan, Collahuasi has a lifespan of approximately 50 years (as of 2020). However, as much as this bodes well for the economy, the long-term environmental and social impact that would arise from a halfcentury of mining production raises some concerns.

Fortunately, as the company slogan states, Collahuasi is much more than a source of copper. The mine operates with a conscience and acts as a major contributor to regional sustainability, local communities, environmental awareness, and education.

Sustainable mining…Seriously?

Although mining and the ‘green revolution’ may seem like somewhat of a paradox, metals and minerals, and the production thereof, can play a central role in the transition to a lowcarbon, sustainable economy.

More and more technological solutions are becoming available due to fast-paced innovations, with adoption lagging just behind. Fortunately, the adoption process is at least in motion and the impetus appears to originate from within the mining companies themselves, instead of pressure from external forces.

Collahuasi takes a comprehensive approach to sustainability, with programs in place to minimize environmental impact, protect natural resources, and engage local stakeholders. The mining company endeavors to merge commercial expectations with the ecological, social, and economic needs of the communities in the Tarapacá Region.

In terms of environmental responsibility, Collahuasi is the only Chilean mine that verifies its carbon footprint across its three emission scopes and provides monthly reporting, putting into action the company’s corporate values of honesty, responsibility, respect, and security. Collahuasi concentrates

Collahuasi

on water efficiency, biodiversity, industrial recycling, and the reuse of materials as environmental areas of focus.

Water is imperative for large-scale mining production. In Chile, mining activities are mostly situated in areas with water scarcity, which is why Collahuasi designed a strategy, in alignment with the National Water Resources Policy, to improve water efficiency and protect the supply for local communities.

As a result, in 2016, the mine saw an increase in the water recirculated, reaching 80.6% recirculation in the year. This means that less than 20% of the total water used by the mining process was new water extracted from the aquifers.

Looking out for the local community

Collahuasi also strives to create awareness and effect change in the surrounding communities through education initiatives. For example, in 2022, the mine’s "Let's take care of Tarapacá" environmental program created behavioral change in homes along the coastline by educating the residents about household waste recycling.

To date, the program has encouraged 297 families on the coast of Iquique to separate their recyclables and general household waste. In 2021, the program was successful in recycling eight tons of waste across the beautiful Iquique coves.

Recently, Collahuasi designed a fun

Experience, trust and rapport, the key elements to their client-commitment

Establishing relationships based on trust, rapport and longevity is the commitment that Alejandro Vega, Claudio Vega and Pedro González take on with their clients and one that, over the past 30 years, has become an added value of AVA Montajes, a company that delivers integral services of engineering, construction and industrial assembly for both the public and private mining sectors. As Alejandro Vega, general manager of AVA Montajes explains: “In mining projects, every hour is indispensable which is why it is absolutely vital to resolve every and any difficulty promptly and efficiently.”

“The market values the harmony that we have with our clients. One of Ava Montajes´associates is always in direct communication with the operation, which means that the client always has access to immediate contact with us. Should a problem arise which needs a swift solution, you can count on one of us 24/7. This is a distinguishing feature that is really appreciated and valued” assures the executive. In line with this, he adds that there exists an attitude of a permanent open ear so as to understand the necessities of the clients and can thereby deliver a rapid answer and fulfill their expectations. This closeness and proactive listening is also an attitude that the company´s associates have towards the 1,500 collaborators that work hand in hand with AVA Montajes, meaning that they are also very aware of their team members needs and concerns. Safety is another essential factor for AVA Montajes, so much so that it is imperative for them to conclude their projects without any incidents. In June, the Chilean Safety Association acknowledged their efforts

after having completed nearly 3.000.000 man-hours with no lost-time accidents, a period that spanned from June 2021 to June 2022. Another contributing factor in delivering the client a good experience is possessing one’s own machinery in order to carry out projects in their entirety, since – as the executive highlights – they don´t depend on third parties to meet deadlines and personal requirements in a demanding industry such as is mining. These traits are what have led AVA Montajes to render specialised services to the divisions of Andina, Salvador Chuquicamata de Codelco, Minera El Abra, BHP Billiton, Compañía Minera Doña Ines de Collahuasi, Minera Candelaria amongst others. Currently they are effectuating projects of varying magnitude in the mines of Compañía Minera Doña Ines de Collahuasi, Escondida, Spence and Chuquicamata.

RECOGNITION

AVA Montajes efforts have led them to be named in the programme of “Best Chilean Companies”, for a second year running, organised by Deloitte in conjunction with Santander Bank and the University Adolfo Ibáñez, which acknowledges companies of diverse sectors and industries for their good business practices within the corporate community. “We feel very proud that they ratify the hard work we have put in over so many years, because we´re speaking about a programme that Deloitte holds worldwide. That means that as a corporation we have good practices and we are also on the path to continuous improvement regarding innovation, corporate culture, commitment and finances” affirms Alejandro Vega. “This acknowledgement “obliges” us to continue looking for ways to improve in productivity, technology, innovation and new solutions for our clients. We are constantly looking for ways and areas to improve and grow and add value to our company.”

Collahausi

Rembre is the applied circular economy leader in LatAm, Pedro Bulnes, a chemical engineer, founded the company with one purpose: leaving a better planet. Through comprehensive waste management and the transformation of discarded materials into new products, Rembre aims to become a leader in the region.

Rembre is trusted by many organizations, from large industries to municipalities and even households through its “Rembre Home” recycling program, which is already recollecting in more than 76 thousand households. At the same time, the company is building one of the most powerful industrial recycling plants in South America the Eco-Campus, which can process more than 150 types of materials and give a new life to otherwise discarded residues.

In a constant effort to provide a triple impact (social, environmental and economic), today Rembre is developing the first APP that will connect consumers and recyclers to make it easier to save our planet.

REMBRE Group has been involved in developing the Chilean Law of Extended Producer Responsibility (LEY REP) obtaining the trust of mining companies for the recycling and correct management of their industrial tires.

Rembre Tires, a service specialized in recycling mining tires, has state of the art plants where tires arrive daily and through a zero emission and zero waste process are transformed into granules that later become products such as yoga mats, sports fields, industrial flooring, among others.

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challenge to stimulate creativity and raise recycling awareness among the region’s learners. In May 2022, the mine, through its Collahuasi Educational Foundation, invited schoolchildren from Tarapacá to participate in the “Replica la Esmeralda” contest. As a tribute to the mighty Esmeralda ship that was sunk during the Iquique Naval Combat on 21 May 1879, students were asked to create a lifelike replica of the ship through the use of recycled materials.

The Collahuasi Educational Foundation comanages a number of bicentennial high schools and allows local learners to engage in cultural and sports activities. The mine also offers several upskilling initiatives.

On 29 August 2022, thirteen young people completed training as mine maintainers following their participation in the “Collahuasi Apprentice Program”. For the past decade, the program has granted high school graduates from Tarapacá opportunities for job development and placement in the mining industry.

A leading actor in Tarapacá Collahuasi is working toward a better society on a social, environmental, and educational level. In a similar vein, the mine also has a profound economic impact.

In 2021, Collahuasi achieved historical results with the extraction of 630 000 tons of copper. The mine’s contribution equates to 2.52% of Chile’s GDP and 65.62% of the region’s GDP. Collahuasi employs approximately 5000 people and has invested in multiple infrastructure projects such as the building of schools, which have had a positive impact on the quality of life for Tarapacá’s residents

The mine is much more than a source of copper; it is also a major force for good in Chile. Through its sustainability initiatives, community programs, and investment in education, Collahuasi leaves a lasting positive impact on the country that will linger long after the last ounce of copper has been mined.

www.collahuasi.cl

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