SCM MINERA LIMINA COPPER CHILE
CASERONES
COPPER
MINE
Mining A Difference
The Caserones Copper Mine in the Atacama region of Chile is comprised of an open pit mine. It produces copper in both cathodes and concentrates. According to miner SCM Minera Lumina Copper, it features six of the top ten largest copper mines in the world, illustrating the importance of copper mining to the Chilean economy. The geographic conditions at the Caserones Copper Mine are challenging to say the least; as
with the other SCM Minera mining projects in the Atacama Region in Chile’s north east, Caserones is based in the Cerro Mansion, right in the heart of the Andes Mountains. This means altitudes of 4,000m, 100km winds and temperatures falling as low as twenty degrees below zero.
Despite these conditions, progress made at the mine has been remarkable. Generally, it takes 12 years for a mine to become operational once it has been earmarked; in the case of Caserones – despite the challenging conditions and a relative lack of labor supply in the region – this was cut to approximately 8 years, having begun preparations in 2006. In July 2014, the mines were formally opened. The process involved in bringing the mine to operation in such a relatively short timeframe by industry standards - and in such unforgiving conditions - was inevitably colossal. It involved removing more than 52 million cubic meters
the installation of a dump leach capacity for 300 million tonnes of leachable copper ore. Finally, the communications network included roads and even a tunnel for lamas. The technology installed is all post-2010, meaning that it is of the highest modern specifications. Perhaps the most innovative part of Caserones is how it maximizes its water usage efficiency; most of the drainage is recycled by the plant – management estimate that circa 80% of the waters used by the plant are recirculated by the plant, making it one of the most water-efficient mines in Chile, despite its location.
the most
innovative
part of Caserones is how it maximizes its
WATER USAGE EFFICIENCY; most of the drainage is recycled
by the plant – management estimate that circa 80% of the waters used by the plant are recirculated by the plant, making it one of the most water-efficient mines in Chile, despite its location. of rock and earth for the construction of the platforms and production facilities to be lifted in and the withdrawal of more than 3.4 million cubic meters of extra material for the pre-stripping sterile. Once the mine had been stripped of these unrequired layers, more than 24.4 thousand tons off mining infrastructure was installed. This included a 183km power transmission line of 2x220 kV to provide power, 95km of pipelines to bring water from the valley below as well as
The region in which Caserones has experienced severe and prolonged droughts, raising understandable concerns about its water demands on the already stretched environment. Management at Caserones worked closely with local irrigators and farmers to improve water sustainability in the basin of the river Copiapó – including signing an agreement with the Board of Vigilance of the Copiapó to establish a second program of improvement and water management of the river and its tributaries.
VALKO
Chilean engineering and construction firm Valko has been in existence for more than 45 years. In this time, the company has company has grown into one of the largest companies in its industry. Its experience in this time has taken in a huge number of projects, encompassing: • 23,000,000m3 of external excavations without explosives • 2,500,000m3 of external excavations with explosives • 23,000,000m3 of compacted fill • 3,000,000m3 of cover produced • 1,500,000m3 of leach heaps in mines • 10,000,000m3 of asphalt paving • 650,000m3 of structural concrete • 50,000m2 of buildings constructed Crovetto July, manager of concessions and mining of Valko, says: “In each of the business areas we operate in, we apply the highest standards of quality to achieve a high level of customers satisfaction. “ This is evidenced by the Quality Management System that the firm has implemented for all of its projects.
The example of water management in the area is just one area in which there were political, economic and social factors that came into play. From the very outset, the project needed to sustainable in order to convince stakeholders (business, community, authorities, suppliers, shareholders) that it was worth undertaking and could create value for all concerned. This was a process that began in 2006 when the mine was conceived. Indigenous communities are invariably a consideration to be taken into account with any
Valko’s commitment to quality has brought it large government and private clients. Mr. Crovetto continues, “We have a long history in the market that has allowed us to accumulate expertise in different fields as 18 million cubic meters of excavation outside with and without explosives, more than 15 million cubic meters of compacted fills, 1.5 million cubic meters production of cover and install foil to leach, 10 million square meters of pavement asphalt, 650 thousand cubic meters of structural concretes and 50 thousand square meters of building" Some of Valko’s most important mining projects have included the external wall at Minera Los Pelambres and the production of the leach heaps at Radomiro Tomic (Codelco Norte). Currently, the firm is developing roadwork projects for the Nevada Mining Company (Barrick), including the construction of 106km of road through Punta Colorada and 11 kilometres of covered piping to the Caserones copper mine in Chile, owned by SCM Minera Lumina. www.valko.cl
project of this size in Chile and elsewhere. Under ILO Convention 169, Minera Lumina opened dialogue with these communities early on in the process At that time, Lumina possessed just a small team of specialists working in the area. As soon as the sustainability of the project was confirmed, it was a matter for the firm at large to establish an ongoing dialogue, credibility and confidence with the neighboring community. At the core of this is the Charter of Values for Minera Lumina, which outlines the firm’s commitment to both people and the environment. In dealing with the commune of the Tierra Amarilla, the
environment within and surrounding the project site. Through these efforts, we will not only pursue profit, but also strive to be a good neighbor to the local communities by proactively communicating with them.” The ongoing success of the mines is testament to a combination to both the engineering that was involved in construction and the holistic approach mentioned above. The process goes as far as Minera Lumina requesting its suppliers (among them mining giants like Arcadis and Siemens) contract local employees and where possible, source local goods and services. Given the size
Nelson Pizarro, CEO of Minera Lumina has noted, “In undertaking this project, we will implement the COMMUNITY MANAGEMENT PROGRAM, WITH THE THREE PILLARS OF WATER MANAGEMENT, TRANSPORTATION SAFETY, AND REGIONAL EMPLOYMENT. WE WILL ALSO BE FOCUSED ON PRESERVING THENATURAL ENVIRONMENT within and surrounding the project site. local community, Minera Lumina created based on four broad lines of collaboration: promotion of employment, road safety, water management (as discussed) and social development. As Nelson Pizarro, CEO of Minera Lumina has noted, “In undertaking this project, we will implement the Community Management Program, with the three pillars of water management, transportation safety, and regional employment. We will also be focused on preserving the natural
Generating Solutions... CREATES CUSTOMIZED INNOVATIVE AND STRATEGIC SOLUTIONS Our focus is the project’s success, based on our methodologies, resources and fieldwork experience.
CASERONES PROYECT
www.rippconsulting.com business@rippconsulting.com
ASSURANCE PLAN DEVELOPMENT FOR THE PROJECT’s GO LIVE AND IT’S ROLL-OUT TO OPERATIONS.
RippConsulting S.A Creates value for its customers through strategic and sustainable operational solutions, customized and with high quality during the implementation. For the Minera LuminaCopper Chile’s Caserores Project, we develope the assurance plan for the project’s start up and transition to operation www.rippconsulting.com RippConsulting S.A Genera valor a sus clientes por medio de soluciones estratégicas y
of some of the contracts, this has the potential to provide considerable benefits to the vicinity. In 2013-2014 alone, the amount paid to contractors of Atacama, where Caserones is based, was in the region of half a billion dollars. This included work in electrical fitting, construction, equipment rental, water treatment, maintenance of the flora, fauna and archaeological sites and more. Likewise, other major contracts such as those for transport were agreed with regional companies ensuring investment remains in the area as much as possible. Transparency would seem to have been maximized as much as possible at Caserones; firstly, because as a publicly listed company, Minera Lumina needs to be governed in a
manner befitting of a large CSR-friendly mining firm; and secondly, thanks to the manner in which contracts have been dispersed among as wide a variety of companies as possible – ensuring no one company achieves too large a share of the bonanza. The $511m mentioned above was divided into 87 contracts between 56 companies, for example. Likewise, a further $14m of smaller contracts were divided into 277 orders for 146 companies. These contracts took in everyone from local catering firms to DHL Global Forwarding (Chile) S.A., which handled all logistics associated with the project, Chilean firm Poch Ambiental, which provided facilities for the project’s mining trucks, and construction firm, Constructora Con Pax S.A., which was responsible for various facets
As a leading logistics company, DHL has a special responsibility in the global fight against climate change. That’s why DHL aims to improve its own issue, and their subcontractors generating efficiencies with its GoGreen program Deutsche Post DHL being the first major company to set itself CO2 reduction targets. Taking the company’s carbon footprint for 2007 as the baselien, the aim is to improve CO2 efficiency by 30 percent by 2020. DHL Global Forwarding share this initiative with its customers, as was applied in the CASERONES Project, SCM MInera Lumina Copper Chile, the first mining project in Chile under the integrated Logistics mode “Door to Door” service.
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The Sustainable Business Review - Quarter 2 2015
of the project, including operations involving the llamas, the water re-circulation system and sand tank houses. The company has also sought to train marginalized and the unemployed in various mining techniques so that they can benefit in terms of employment from Caserones. In an area which has traditionally been one of Chile’s unemployment blackspots, jobs are now being created. Approximately 55% of the company’s own operators are native to the Atacama region. The trend is maintained when new employment is offered.
Chile is a world leader in mining and this Caserones offers anyone a good example of why
that might be the case. Combined with rich natural resources, the country – through companies like Minera Lumina – is pushing industry standards to new levels through experiences in developing large scale projects in hostile environments like that in the Atacama region. When Caserones was first mooted, the price of copper was on an exponentially upward slope, reaching output of nearly $100bn at one stage but now possesses a future that looks considerably more volatile. Chile is perhaps in a better position to fend off economic headwinds with vast potential for grand scale mining in molybdenum, lithium, iron and even silver. Regardless, the future for Caserones will continue to be challenging, with falling copper prices, tougher laws on minerals and increasing shortages of water, but the firm behind the mine has already overcome all manner of obstacles. The mine has a predicated lifespan of 28 years and given the obstacles which were overcome to bring it to operation, who would bet against it reaching that milestone?
SCM Lumina Copper Chile Mining Copiapó and Santiago: Public Affairs and Communications Office: 879 Colipí Street, Copiapó. Phone: (52) 2485050 Headquarters: 2687 Andrés Bello Ave., 4th floor, Edificio del Pacífico, Las Condes, Santiago. Phone: (02) 4322500. http://www.caserones.cl
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