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Transcript of Antapaccay Project - glencore.com9414adf6-0093-453d-84e1-858269f0442a/xcu... · construction...
Antapaccay Project
Max Combes – Project Director 18 September 2011
Agenda
Project overview and status
Safety indicators
Local employment
Local contracts & community investment
Project layout
Project costs
Project schedule
Initiatives to support project schedule
Project metrics
Synergies achieved
Description Location: Cusco Region (12km from
Tintaya) Elevation: 4,200 metres Ownership: 100% Mineral Resource: 817Mt @ 0.52% Cu Concentrator: 70ktpd, 1 grinding line Production: 160ktpa Cu for first five
years, average over LOM 143ktpa Cu Approved Capital Cost: US$1.47 billion LOM: 22 years First of the Standard Concentrator
applications under Xstrata - Bechtel Alliance.
Project Status (as of Sept 9) Detailed Engineering: 97% Construction: 31% Overall Project Progress: 37%
Antapaccay project overview and status
Copper in resource
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Measures taken to minimize safety risks: • Specific induction developed for the Project between Bechtel and Xstrata
• Experienced Safety personnel • Risk Analysis; Safety Talks; Regular inspections; Contractor audits
• Extensive Safety Observation Program • Special attention to Task Analysis and Change Management
Statistics: • 7,700 people inducted to the project to date
• 140,000 training hours on safety related subjects
• The project has completed 8,728,000 work hours (7,000,000 since the lost time accident as of this report date)
Safety Indicators
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Lost Time Injury Performance (LTIFR)
Local Employment Program as a project success factor
Strong focus on local employment to maintain social license
Local workers are trained and hold necessary skills
28% of manual workers belong to the communities exceeding the EIA target of 20%
Over 1,200 local workers currently employed
Over 1,800 local workers have been employed during the life of the project 0
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Local Employment (Cumulative)
Local Contracts & Community Investment
The project has spent USD4.95M to date in the surrounding communities on Goods and Services
At least 10 local contractors provide services to the project
Main contracts include: – Site fencing services – Camp refurbishment – Water truck rental – Architectural jobs – Office refurbishment – Conveyor sleeper fabrication – Miscellaneous buildings
Project costs in line with budget
Crusher Building Construction
Overland Conveyor
Definitive Estimate completed in March 2011 confirming USD 1,473M total cost
Committed USD 945M to date
Majority of large capital expenditure items now factored into budget
– 145 out of 147 Purchase Orders placed
Xstrata initiatives have saved the project over USD 40M, offsetting cost inflation
– Earthworks done by Owner – Water system redesign – Purchase orders renegotiations – Reduction of Small Tools rates – Redesign of truck shop earthworks – Piping and electrical works done by
Owner – Travel cost reductions
Project on schedule for commissioning in H2 2012
Project Progress Planned Value Earned Value Engineering 99.9% 97.0% Procurement & Contracts 95.5% 90.0%
Construction 31.1% 31.0% Total (weighted) 37.3% 37.0%
Workforce Status – Currently 3,700 people on site (4,500
contracted) – Peak of 4,800 people on site to be
reached in December 2011 – Between 100 and 150 people are
being added each week though construction contractor Graña y Montero
– Owner’s Team fully staffed
Productivity in Line with Budget
Other Resources – Construction Equipment mostly on site – Key Technical assistance from
suppliers already committed
Initiatives to support project schedule
Ore Reclaim Tunnel Completed
Ore & Media Reclaim Area
Antapaccay project metrics
Truck Shop Building
Truck Shop Building
Estimated Job Manhours 18,636,000 Manhours to date 8,728,000
Personnel at Peak 4,800 Current Personnel 3,700
Major Bulk Quantities UoM Quantity Massive Earthworks m³ 3,000,000
Structural Earthworks m³ 924,000
Concrete m³ 118,000
Steel Mt 11,484
Piping m 165,763
Cable & Wire m 1,094,619
Instruments No 1,930
Mechanical Bulks Mt 2,109
Synergies achieved with Las Bambas
Conveyor Belt works
Conveyor Belt – Cañipía Crossing
Synergies with Las Bambas identified as of today that will have a positive effect on both projects:
Antapaccay Cost Savings US$M Shared Spare Parts 8.5
Small Tools Reutilization 3.5
Construction Equipment Transfer 2.5
Internal Buses Purchasing 2.2
Surplus Material Reutilization 2.0
Construction Camp (2,000 beds) 1.2
External Bus Transportation 1.0
Formwork and Scaffolding 1.0
Power Supply for LB Moly & Filter Plant 1.0
Lima Office shared personnel 0.4
Total 23.3
Works in Progress
Antapaccay Plant General View
Mills Erection & Steel Structure underway
Antapaccay Grinding Area
Civil & Electrical Works underway
220 kV Main Sub Station
Cells Installation underway
Flotation Area
Concrete Works underway
Tailings Thickeners Area
Conclusions
Large scale, long-life mine that benefits from synergies with Tintaya Average of 160ktpa for 5 years, then 143ktpa over the remaining mine life of
at least 22 years Overall project 37% complete, detailed engineering 97% complete Construction 31% complete
‒ Majority of earthworks complete ‒ Foundation works well underway
Fiscal stability certificate in place Remains on schedule for commissioning in H2 2012 Remains on budget – definitive estimate completed in March 2011
‒ Long lead items ordered and priced ‒ Most tenders are complete ‒ Benefits from Xstrata - Bechtel Alliance relationship
Questions?
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Agenda Introduction Copper market update Xstrata Copper overview South American Operations Project Development South America Antamina and Collahuasi expansions
Antapaccay Project Las Bambas Project El Pachón Project Agua Rica Project Conclusions
Coffee break