DRIVING CHILE’S ECONOMY: CODELCO’S LEADERSHIP IN COPPER, SUSTAINABILITY, AND INNOVATION
DRIVING CHILE’S ECONOMY: CODELCO’S LEADERSHIP IN COPPER, SUSTAINABILITY, AND INNOVATION
CODELCO PROJECT
DIRECTED BY: GARY SMITH
Codelco (Corporación Nacional del Cobre de Chile) the National Copper Corporation of Chile is a major. driver of the Chilean economy. It is also the largest copper producing company in the world. In addition to copper it also produces small quantities of gold and other rare metals. All of which is carried out through its seven mining divisions: Chuquicatmata, Ministro Hales, Radomiro Tomic, Gabriela Mistral, Salvador, Andina, El Teniente, as well as the Ventanas Smelter and Refinery.
Founded as the state Copper Office in 1951 by President Carlos Ibanez del Campo, Codelco has deeper roots. In fact copper mining in Chile goes back for centuries at Chuquicamata as was shown by the discovery in 1898 of "Copper Man", a mummy dated at about 550 A.D. which was found trapped in an ancient mine shaft by a fall of rock. It was only in the 19th century that mining began in earnest and in 1971 copper mining was taken into state ownership by President Salvador Allende being
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The relationship between Howden and Codelco goes beyond that of a simple equipment supplier. Over the years, Howden has provided innovative and customized solutions, always aligned with the highest quality standards and focused on tangible results. From supplying industrial fans for underground ventilation systems to compressors used in critical processes, Howden's solutions have played a key role in increasing productivity, reducing operating costs and improving working conditions at Codelco's mines. The partnership with Codelco also reflects Howden's commitment to sustainability. The company has dedicated itself to developing technologies that not only meet operational needs, but also reduce the environmental impact of mining activities. Our solutions are designed to be energy efficient, environmentally responsible and safe, which further reinforces its commitment to a sustainable future for the industry.
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formalized by decree on April 1st 1976 by the then dictator General Augusto Pinochet.
Ruben Alvarado was appointed CEO on September 1st 2023 and is leading the company forward as well as diversifying its operations. For example in May a massive desalination plant began construction with the aim of supplying Radomiro Tomic, Ministro Hales and Chuquicamata with desalinated water.
Additional milestones attained in 2023 include the signing of a joint venture with Rio Tinto to explore and develop a copper project in the northern Atacama region and as Ruben told us achieving ‘ The Copper Mark certification for our mines, smelters, and refineries, confirms that we are applying the highest sustainability standards’. Numerous development projects are also progressing positively. Not only was the construction of Trepaso Andina completed on April 2, with the delivery of secondary crushing to the operation, but the first phase of the Level One infrastructure of Chuquicamata Underground reached 56.2% progress.
Another sector in which Codelco is making advances is the vital lithium business where an agreement with SQM is in place for the exploitation of lithium in the Salar de Maricunga. Making this possible is the completion of exploration of Codelco properties and the purchase of Lithium Power International (LPI) in March of this year. Given the growing demand for lithium this promises to be a key strategic acquisition. The promise of more growth can also be seen in the company's collaborations with Rio Tinto as well as those with El Abra and Anglo-American, with the latter being the owner of Los Bronces. The recent agreement with Rio Tinto makes the exploration and development of Nuevo Cobre in the Atacama region a reality.
As for the continued exploitation of existing assets Ruben Alvarado has a perspective that annual production in 2024 will be slightly above that for 2023. This being as a result of increased operational continuity at the Andina concentrator, improved performance at the Chuquicamata underground mine, the commissioning of the Rajo Inca project, and improved open-pit mine production at Ministerio Hales. Ruben envisages that ‘starting in 2024 production will begin a long term growth trajectory, progressively increasing until reaching the level of 1.7 million t/y by 2030’.
Key to the growth of production is the Chuquicamata mine complex. The present pit is a conventional truck and shovel operation which is now approaching a point at which it will become uneconomic to continue production as the quality of the orebody reachable using older technologies continues to decline. This development
is not the end of copper production at Chuquicatamata but the prelude to a new epoch of cleaner and more efficient production.
As the open pit at Chuquitamata approaches the end of its life production has continued in the new underground pit having commenced in 2019 and is planned to extend the life of the mine to 2060. The traditional drill and blast drifting method is used in underground mining. The ore is removed through a lengthy process called block-caving. The mine features two air-extraction shafts, five clean air injection ramps, a 7.5 km main access tunnel, and four production levels. Estimates suggest that by 2060 the tunnels will have dug the mine almost 787 meters deeper. An estimated $4.2 billion will be spent on the underground mine, which is expected to generate 140,000 tonnes of ore every day. It is anticipated that the mine will yield 18,000 tpa of fine molybdenum and 366,000 tpa of copper.
El Teniente underground mine is perhaps the largest underground copper mine in the world with a history of production stretching back to 1818. Today it is the largest division of Codelco in operation with over 3,000 kilometres (1,900 mi) of underground drifts. Production statistics are similarly impressive with around 350,000 fine metric tons (ft) of copper mined each year from El Teniente alone. As a result of the New Mine Level structural project, which began in 2011, output is scheduled to increase in the future without impeding ongoing production as more ore is extracted from beneath the 2,200-meterhigh hill.
As production grows due to modern techniques, that same new technology not only improves efficiency and reduces operational costs but also ensures a cleaner and greener production process. Codelco already integrates robotics, increased levels of automation and advanced analytics into its operations, which has led to a greater gender balance in the workforce, but now utilizes Integrated Operations Centres located at a distance from their primary operations. For example, 280 rock breakers, LHDs, hoppers, and semi-autonomous or teleoperated trains for the underground mines of Chuquicamata, Andina, and El Teniente.
Ahead of the game Codelco are as CEO Ruben Alvarado recently pointed out Codelco is working with Komatsu on a safer tunnelling machine that will eliminate explosives and allows for resource development in a sustainable manner. In addition to which Ruben told us that they are ‘involved in the joint development with Nippon Yusen Kabushiki Kaisha and Enaex of an industrial pilot for a green corridor to transport copper concentrates from Chile, using a new technology of ships powered by green ammonia’. The future for Codelco looks green and productive.
www.codelco.com
