Mining Finland, breakfast seminar 27.4.2016_Spanish presentations

FINLANDIA – LIDER EN MINERIA SUSTENTABLE

Desayuno Seminario Tuomo Airaksinen

Santiago 27.4.2016 #MiningFinland

27.4.2016 # M I N I N G F I N L A N D 1

RESUMEN

27.4.2016 # M I N I N G F I N L A N D 2

• Finlandia cuenta con un potente cluster minero que consiste de

minas, grandes empresas globales de tecnología, PYMES, sub-contratistas y organizaciones que ofrecen capacitación,

Investigación y Desarrollo y servicios de innovación

• Finlandia posee una larga tradición en minería y es cuna de varias empresas globales de tecnología, tales como Metso,

Normet, Outotec y Sandvik

27.4.2016 # M I N I N G F I N L A N D 3

La estrategia minera de Finlandia se propone reducir el impacto ambiental

• Gestión de aguas y tecnología para el agua

• Utilización de relaves y estéril

• Eficiencia energética

• Seguridad

Licencia para operar minas

27.4.2016 # M I N I N G F I N L A N D 4

Minería en Finlandia

27.4.2016 # M I N I N G F I N L A N D 5

Finlandia es un país minero por tradición con un reconocido expertisede primer orden

27.4.2016 # M I N I N G F I N L A N D 6

• Finlandia ha tenido centenares de minas en operación desde la

década de 1530 y vivió un gran boom minero ya a inicios de 1900 cuando se descubrió cobre en el pueblo de Outokumpu

• Los principales minerales que se explotan actualmente en Finlandia

incluyen los metales cromo, níquel, oro, cobre, zinc y platino, fosfato/apatita, calcita y talco

Mina Outokumpu, década de los 30 Mina de oro Agnico Eagle, 2015

Oferta Tecnológica

Soluciones sustentables, mayor productividad y ahorros en costos

27.4.2016 # M I N I N G F I N L A N D 7

Tecnología – Equipos y Servicios

27.4.2016 # M I N I N G F I N L A N D 8

• Más de 200 empresas en Finlandia ofrecen

equipos, sistemas y servicios para la industria minera

– Todas las etapas del ciclo de vida de la mina, de la exploración al cierre

– Equipos y servicios a lo largo de toda la cadena de valor

Oferta finlandesa en la Cadena de Valor de la Minería

27.4.2016 # M I N I N G F I N L A N D 9

Ingeniería, Diseño y Servicios de Consultoría

27.4.2016 # M I N I N G F I N L A N D 10

Equipos

27.4.2016 # M I N I N G F I N L A N D 11

¡ Gracias !

[email protected]

27.4.2016 # M I N I N G F I N L A N D 12

Impacto de la tecnología y la innovación en la productividad

Kari Knuutila

Seminario de minería en el Crowne Hotel Plaza

Santiago de Chile

27 de abril de 2016

© Outotec - Reservados todos los derechos

El mundo no está aún preparado; se necesitan innovaciones para abordar los crecientes desafíos del sector

27 de abril de 2016 Impacto de la tecnología y la innovación en la productividad14

Producir más

• Mayor capacidad• Mejor recuperación• Menos paradas de producción

Producir con menos

• Costos fijos más bajos• Costos variables más bajos• Inversiones restringidas

Consumir menos

• Uso de agua mínimo• Eficiencia energética• Menor uso de la tierra

Emitir menos

• SO2 y CO2• Ceniza y otros polvos• Consumo deagua

Mejorar la seguridad

• Lugar de trabajo seguro• Condiciones higiénicas• Nivel de tensión mínima

Mantener la estabilidad

• Empleador confiable• Creación de puestos de trabajos• Evitación de cortes


La eficiencia del equipo de proceso es un factor crítico a la hora de maximizar la productividad

• Controladores para la modernización• Tecnología no actualizada• Rendimiento metalúrgico deficiente• Falla mecánica frecuente• Desafíos del procesamiento de

minerales• Expansión de la planta• Unidad de accionamiento para

mejorar la eficiencia energética• Uso de equipos no óptimos


http://www.outotec.com/en/Products--services/Process-equipment/Flotation-cells/Flotation-modernization-guidebook/


Un diseño de planta modular ofrece una solución rápida, efectiva y asequible para pequeñas minas o emplazamientos que requieren capacidad adicional


Un 20 % menos de inversión de capital

Un 30 % menos de mano de obra en la instalación

Fácil y económica de transportar, lo que permite su reutilización en

otras minas


Estabilización y optimización de procesos a través de la automatización y el control de procesos avanzado



La gestión integral del agua en minas ahorra costos operativos y minimiza las sorpresas medioambientales


Ahorro y gestión

del agua

Balances hídricos, positivo o negativo

Flujo, SS,

pH, uS, mV, etc.

Problemas de seguridad,

seguimiento medioambiental

Capacidades de

supervisión y evaluación

remotas

Aplicaciones de información, optimización y

predicción


La aplicación de las mejores prácticas en la gestión de relaves hace posible un ahorro significativo en términos de costes operativos y reduce los riesgos de seguridad

• Las tecnologías de pila seca y de pasta combinadas con los bucles de agua cerrados son las mejores tecnologías disponibles para ahorrar agua dentro del entorno del concentrador

• Los riesgos a corto y largo plazo se pueden reducir significativamente al reducir la cantidad de agua en la instalación de almacenamiento de relaves en superficie


RELLENO DE PASTA

PILA SECA

Huella= 12 %OPEX= 37 %

PASTA


RELAVES ESPESADA

S


RELAVES HÚMEDOS

Huella= 100 %OPEX

= 100 %

• Identifique el terreno como nunca antes mediante el levantamiento LiDAR LiDAR Surveys provide revolutionary terrain knowledge

• Tecnología clave para planificación, infraestructura y operaciónUsed for effectively planning and monitoring all phases of a mine’s life

• Captura de datos fácil, rápida y económica Easy and cost-effective data collection

Aumente la rentabilidad con LiDARIncrease return on investment with LiDAR

23

• Levantamiento topográfico LiDAR para una cartografía al detalleLiDAR Survey provides the most accurate terrain cartography

• Planifique y monitoree de forma efectiva las distintas etapas de la minaUse for effectively planning and monitoring all phases of a mine’s life

• Medición de inventario de pilasStockpile volumen calculation

Identifique el terreno como nunca antesIdentify terrain as never before

Xabier Eraña

Geoinformation Specialist

+358-452-090-656

[email protected]

Curso de capacitación

Del 2 al 6 de mayo, 2016

Hotel Doubletree by Hilton

Santiago - Vitacura

Expertos en tecnología de polímeros

• Conductos industriales, sistemas y conectores• Productos técnicos de polímeros• Protección contra el desgaste y la corrosión• Productos finales de materiales poliméricos técnicos

Revestimientos para molinos de minería

Diseñamos y elaboramos revestimientos para molinos de minería apropiados a las necesidades de la industria de extracción y transformación. Los elementos del revestimiento se elaboran con goma de calidad TRL, desarrollada especialmente para las exigentes circunstancias de la industria de extracción y transformación.

Forman parte de nuestra gama de revestimientos de goma y de goma con superficie de acero, así como sus fijaciones.

Mangueras

Teknikum fabrica mangueras de caucho de alta calidad para los sectores industriales minero y de procesamiento de materiales más exigentes.

Nuestras mangueras pueden fabricarse en caucho natural, o en caucho SBR antiestático para aplicaciones de procesamiento en seco.

• Mangueras de manipulación de materiales para materiales altamente abrasivos• Acoplamientos y juntas• Mangueras de conexión para el aislamiento de vibraciones

Ventajas de Dynaset

• Fácilmente integrado a varios tipos de maquinaria

• Equipos compactos con excelente razón dimensiones/potencia

Reducción de costos

• Reduce el consumo de combustible

• Elimina la necesidad de motores adicionales

• La modularidad de los equipos facilita el mantenimiento

Negocio Ganador con Calidad de la Energía

www.meruspower.com

Soluciones y beneficios

Merus Power ofrece STATCOMs , Compensadores Estáticos de Var (SVCs), filtros acti vos de armónicos y Calidad de la energia Ininterrumpida (UPQ) con soluciones hasta los 38,5 KV y niveles de 250 MVar.

� Variaciones del voltaje� Factores de potencia pobres� Flicker� Distorsiones armónicas� Desequilibrio de las cargas

Problemas solucionados

Beneficios para el cliente

� Ahorro de dinero reduciendo el consumo de energía

� Mejora en la productividad� Mayor vida útil de la planta� Mayor capacidad para la red eléctrica

Aplicaciones

� Montacargas mineros� Machacadoras� Molino de bolas� Cintas transportadoras mineras� Excavadoras

Ejemplo de éxito –Mina de oro de Kibali en

Congo

8% más de capacidad en el montacargas5 millones de dólares americanos ahorrados en combustibleMayor vida útil de la planta

Referencias seleccionadas en minería e industria pesada

MONTACARGAS MINERO – CONGO

MACHACADORA - RUSIA

MONTACARGAS MINERO – CHINA

CINTA TRANSPORTADORA MINERA – SIERRA LEONA

INDUSTRIA METALURGICA - ECUADORBUQUE MINERO - NAMIBIA

VARIADOR DE FRECUENCIA - NAMIBIA

LAAJAKUVAESITYS

Vihjeitä ja työkaluja laajakuvadiojen luomiseen ja esittämiseen

Laajakuvaesitys

Tämä malli on muotoiltu 16:9 “laajakuva” -kuvasuhteella. Voit siis hyödyntää laajakuvanäytöllä varustettuja kannettavia tietokoneita, televisioita ja projektoreita.

Vaikkei sinulla olisikaan laajakuvanäyttöä, voit silti luoda ja esittää 16:9-dioja. PowerPointin diaesitys sovittaa diasi mihin näyttöön tahansa.

DRAGA ANFIBIAMULTIPROPOSITO

Para mantenimiento de lagos yrecuperación de materiales valiosos

www.watermaster.fi

MÓVILMovilidad única en agua y en tierraNo uso de grúas, remolcadores,

embarcaciones de apoyo, cabrestantes o

guayas

VERSÁTILDragado, rastrillaje, pilotaje - y más.

Desde 0 a 6 metros de profundidadReemplaza varias máquinas de una sola

función

PROBADACientos de unidades operando en

más de 70 países en todo el mundoFabricada en Finlandia

Finnish mining industry and technology landscape

2016

Mika Nykänen, GTK

Harry Sandström, Tekes/Spinverse

Maija Uusisuo, MEE

Geological Survey of Finland (GTK)

Mika Nykänen

Director General

GTK – un centro líder de competencia europeo en la evualuación y el uso sostenible de recursos geológicos

Proporcionamos competencia que sirve a los intereses de nuestros clientes, partidos interesados y la sociedad entera. Trabajando en colaboración con nuestros clientes y socios, creamos soluciones que conducen a las nuevas tecnologías y áreas de negocio, así como promueven el crecimiento económico sostenible.

GTK es una organización experta bajo del Ministerio de Trabajo y Economía de Finlandia. Empleamos a aproximadamente 480 personas, quienes están comprometidos con eficacia en su trabajo a nivel local, nacional e internacional.

Digitalizacion

Sociedades Economía minera

Tecnología limpiaTemas estratégicos

GTK 2016

VisiónCrear soluciones que adoptan nuevas tecnologías, avanzan las áreas emergentes de negocio y promueven el crecimiento económico sostenible.

Valores• Orientación al cliente• Colaboración• La confianza y la responsabilidad

GTK EN CHILEEjemplos para cooperaciones:

Red de Desarrollo Mineral – construcción de una red internacional de centros de capacitación en el sector de las materias primas

Tratamiento Comprensivo de las Aguas Mineras – recuperación de metales a través de adsorbentes insolubles innovadores

Procesamiento de Minerales e Investigación de Material es – toda la cadena de la investigación desde la caracterización mineralógica hasta el procesamiento de minerales y desechos mineros

Soluciónes Sostenibles de Energía – evaluación de potencial geotérmica y recursos de turba

Gestión de Datos Geológicos – competencia en la adquisición de datos, sistemas de información de datos geológicos, construcción de bases de datos, análisis de datos espaciales, modelaje de datos geográficos, y servicios de suminstro de datos

GTK 2016

Content

� Mining cluster in Finland

� Mineral potential and data

� Developing sustainable mining in Finland

Minerals cluster in Finland

Market needs

Commercialization

Policy

Regulations

Funding

Education

Modified from the original dia by Tekes/Harry Sandström

Extractive

industries,

metals

processing

Technology

and service

providers

R&D

organizations

Minerals cluster key figures in 2014

2014 Turnover (M€) Personnel

(direct )

Mining industry1 1 500 3 400

Natural stone industry2 200 1 350

Aggregate industry3 440 1 400

Metal processing4 8 640 12 700

Mining services, manufacturing of

mining and construction

machines5

2 000 6 100

Total 12 780 24 950

Mining cluster/tot industry % 10,0 8,1

1Metal ores and industrial minerals2TOL 08111, 08113, 2373 TOL 0812

4TOL 245 TOL 09, 2892

Source: Statistics Finland, MEE

GTK

Metals

Industrial

minerals

Kittilä

gold

Kevitsa

nickel

Pahtavaara

gold

Raahe

gold

Kemi

chrome

Hitura

nickel

Pyhäsalmi

Copper-zinc

TalvivaaraNickel-zinc

Jokisivu

gold

Parainen

calcite

Ilomantsi

gold

Lappeenranta

calcite

Orivesi gold

Lahnaslampi

talc

Kylylahti

copper

Polvijärvi

talc

Lohja

calcite

Siilinjärvi

phosphorus

Annual ore output (Mt)

< 0.10.1 - 0.50.5 - 1.0

1.0 - 10

> 10

Mines

• 45 mines (12 metals, 33 industrial

minerals and rocks)

• Turnover €1.5 billion

• Employees 3 400 (ex. subcontracting)

• The total extraction of rock 89 million

tonnes

Exploration

• Exploration expenditure €34,5 million

• 42 active companies

• Main target commodities Au, Ni, Cu,

PGM, ferrous metals, hitech metals

GTK

Mining industry in 2015

Source: Tukes

Metals processing industry in Finland

– The Finnish refining industry is energy efficient and it´s environmental emissions are low

– Total annual turnover is about € 9 billion

– Main products are: steel, stainless steel, ferrochrome, zinc, copper, nickel, cobalt products, silver and gold

– Metals manufacturing is more than 10 % of the total exports of Finland

Metals processing in Finland

Content




GTK 2016

Why to Explore in Finland?

• Significant potential for new discoveries

• Excellent geodata and infrastructure

• Long mining tradition, know-how and services

• Strict but clear mining and environmental legislation

• Moderate exploration costs

• Favorable and secure investment environment

• Low corporate tax

• Downsream industry and proximity to major markets

Finland:

Geology Indicates Extensive Mineral

Resources

Nickel (Ni)

Chromium (Cr)

Copper (Cu)

Zinc (Zn)

Gold (Au)

Cobalt (Co)

Palladium (Pd)

Phosphorus (P)

Talc (Tlc)

Vanadium (V)

Lithium (Li)

Rare earth metals (REE)

Carbonates (Crb) Metallogenic map

Excellent Geodata

Full geographic data coverage

Geophysics vs deposits

3D modelling:

mineral

deposits,

bedrock

GTK – National Centre for Geoscience Data

GTK data collection

GTK’s GeoKernel

Data acquisition - Information management - Web-based delivery

Local government

Universities

Mining companies

Other sources

Informationservices

Geodata fromExternal sources

The science community

Business andconsultants

Society

Demand-driven surveying programmes

Metallogeny Map of the Fennoscandian Shield

Minerals Sector R&D Competence

• Management and delivery of geoscience data

• Geodata modelling and visualization

• Economic geology and exploration techniques

• Mineral beneficiation studies from lab to plant scale

• Applied mineralogy and isotope geology

• Mining environment research

• Selected references:

• coordinator of the €17m ProMine project

(30 partners from 11 countries)

• metallogeny compilations and databases on Fennoscandia

• 100 annual contract surveys on mineral processing

Metallogeny & databases

Mineral processing

Geological modelling

Content




Government is committed in developing sustainable mining sector

• Mineral strategy October 2010

• Mining Act July 2011

• Green Mining programme funded by Tekes 2011-2016

• Development of mining industry included in the government agenda 2011

• Financing of mining industry and technology in state budget 2012

• Action plan for development of sustainable extractive industries 2013

• Research strategy for the extractive industry in Finland 2015

• Mining sector growth programme 2015

• Circular economy in the government agenda 2015

Practical measures

Government supports

• Mining infrastructure investments

• Research & Development & Innovation projects

• Tailor made training to company needs

Finnish mineral strategy 2010 -> Finnish Green Mining Concept

Promotes materials and energy efficiencyPromotes materials and energy efficiency

Ensures availability of mineral

resources for future needs



Minimizes adverse environmental

and social impacts


and social impacts

Improves work and organisational practicesImproves work and organisational practices

Ensures sustainable land use

following mine closure



Less energy used in processRenewable energy utilizedLess side rock and wastesLess water used and discharged

New ore reservesAdvanced exploration techniquesMineral processing for low grades

Reduce of environmental footprint and emissionsMaximize positive social impactsConsidering of stakeholder interests

Culture of continuous improvement of safety, quality and environmental performance of the companies

Mine closure plan is started simultaneously with mine planning and is updated regularly during the whole life time of the mine

20 Research organizations

23 Mining and exploration

companies

80 Technology and service

companies

46 International partners

7 Others

Project portfolio total, m€ 115,01Tekes funding, m€ 55,09

Company funding(estimate), m€ 52,73RDO/University funding (estimate), m€ 7,29

Number of projects 98

Participants total

Focus of development

Intensive investment by Tekes on sustainable miningsince 2011

Water

Processing

Waste

Measuring

Exploration

Social aspects

Other

COMING OPPORTUNITIES:

Tekes and Conicyt both participate the next

ERA-MIN call

Tekes is able to fund Finnish companies pilot

actions in Chile

Harry Sandström

Exploration Feasibility Construction Production ClosureReuse

Business Processes

Permission Management

Support activities

Construction

Process

Communications and stakeholder relationships

HR management

FinancingCapitalization

Legal services

Exploration permits

EIA

Mining licensing

Environmental permits

Construction permits

Environmental monitoring & reporting

HSQE

Logistics

Maintenance

Data management and ICT

Analytics and measurements

Sampling

Physical infrastructure

Environmental engineering Soil construction

Architectural planning

House construction

Industrial planning

Facility construction &

installationsEnergy

infrastructure Energy supply

Mineral processing

Haulage & transport

Mining

Tech and Mach procurement

Process planning

Pilot tests Mine planning

Ore reserve assessment

Water processing and management

Ref: Harry Sandström

Finnish mining technolgy focus competence areas 2016

Mineral processing

Mining equipment

Paakkola Consulting

Environmental and social

impact assessment

Environmental monitoring

and water balance

management

Exploration technologies

and piloting

Measurement and

sampling technology

The Finnish Network for Sustainable Mining

Finland is a mining country

Finland’s strengths are:

• Finnish bedrock is rich of minerals and there is a great potential for new discoveries

• Excellent infra structure through the country

• Good availability of technology and services

• Investments have been made in education and research

• Skilled people

• Stable political environment

• Commitment to sustainable development in the mining sector GTK

Boosting Productivity in the Mining Process

26.4.2016

Harry Sandström

Senior Consultant

Spinverse Innovation Management

� Productivity in mining has declined 30% globally in a decade, McKinsey 2015

� Global mining stocks have lost US$1.4 trillion since 2011. This exceeds the total market value of Apple Inc., Exxon Mobil Corp., and Google’s parent Alphabet Inc. Bloomberg

News | January 11, 2016

� We believe, that our traditional operating practices are 20-30 years behind the other industrial sectors Mark Cutifani, Anglo

American Open Forum | November 2015

� Investments in greenfield exploration are deacreasing

The mining industry is facing perhaps the biggest challenges in modern

history?

ProductivityProductivity

mining

other sectorsin average

Exploration expendituresExploration expenditures

Finland

Global

Reasons for low productivity

� Low commodity prices

� Lower grades

� Deeper ores

� Higer energy costs

� Increased social and environmental demands and regulations

What about these?

Mine operations are siloed?

Partial optimization?

Got used to ever increasing prices?

Uncontrolled labor cost booming?

More focus on cost cutting rather than on producing added value?

Finnish Green Mining Concept

Promotes materials and energy efficiencyPromotes materials and energy efficiency






and social impacts


and social impacts

Improves work and organisational practicesImproves work and organisational practices





Less energy used in processRenewable energy utilizedLess side rock and wastesLess water used and discharged

New ore reservesAdvanced exploration techniquesMineral processing for low grades

Reduce of environmental footprint and emissionsMaximize positive social impactsConsidering of stakeholder interests

Culture of continuous improvement of safety, quality and environmental performance of the companies

Mine closure plan is started simultaneously with mine planning and is updated regularly during the whole life time of the mine

Investments in mining information technology are increasing

�Investments in inormation technolgyand IoT in mining industry areestimated to be close to 30 billion US$ in 2018Kelly Prowse

http://www.techvibes.com/blog/mining-things-

internet-2014-12-09)

--------Material characterization-----

Process optimization

Production ClosureConstructionFeasibility studyExploration

Advanced material characterization across theprocess chain

Continuous material and formation characterization and

aquisition of information from processes

From data to knowledge

Mine planning Environmental monitoring

Mining operation optimization Water balance management

Sorting and selective mining

Sensor layer

Connectivity layer

Value proposition layer

Data analysis layer

Knowledge

Data

Information

Measurement

IMA Engineering & Mine On-Line Service

On-Line Mine Applications

IMA Engineering & Mine On-Line Service

On-Line Mine Applications

The accuracy of the block

model increases through out

the mining process

Early stage exploration

Site exploration

Pre

feasibilityt

Feasibility

Construction

Production

10-15 years; 10 – 100 m€

1 - 2 years;

50 – 800 m€

> 5 years; 10 – 200 m€/a

Cum

ula

tive

cash

flo

w

What are the possibilities to shorten the the mine development

process

Better chemical and mineralogical

characterization of the material

Block model evolution across the

development phase

Concept of scalable mining

Value proposition of advanced material and formation

characterization

� Less side rock to the mill

� Better control of ore-side rock dilution

� Decreased energy consuption

� Enables to better optimize comminution and mineralprocessing phases

Exploration Feasibility Construction Production Closure Reuse

Business Processes

Permission Management

Support activities

Construction

Process

Communications and stakeholder relationships

HR management

FinancingCapitalization

Legal services

Exploration permits

EIA

Mining licensing

Environmental permits

Construction permits

Environmental monitoring & reporting

HSQE

Logistics

Maintenance

Data management and ICT

Analytics and measurements

Sampling

Physical infrastructure

Environmental engineering Soil construction

Architectural planning

House construction

Industrial planning

Facility construction & installations

Energy infrastructure Energy supply

Mineral processingHaulage & transport

MiningTech and Mach procurementProcess planning

Pilot tests Mine planning

Ore reserve assessment

Water processing and management

Ref: Harry Sandström

Expanding the IoM consept across value chain

� Condition basedmaintenance

� Occupational health and operational safety afetyplanning and control

� Installation and servicedocumentation

For further discussion

Harry Sandström

+358 400 709899

[email protected]

FOLLOW US:

WWW.SPINVERSE.COM

Interested of co-operation?

Do not hesitate to contact

Thank you for attention

Strategic Roadmap 2016-2035 to Unleash theMultiplier Effect of Mining in Chile

Hernán Araneda, Fundación Chile

FROM COPPER TO INNOVATION

Chile’s case study

Collective action supported by modern industrial

policy and public and private parternships to create

backwards/upwards linkages in a context of a stable tax

regime that has stimulated foreign and local investment

in mining.

Modern Industrial Policy

• Removing contrains: information and

coordination failures

• Stimulating the development of a demand-

driven education and training system

• Supporting suppliers development at different

stages (from start-ups to business escalation)

• Aligning public investment in R&D with industry

needs

0

5

10

15

20

25

30

35

40

0

5

10

15

20

25

30

35

40

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

% of people% of people Poverty Extreme poverty

Growth has been resilient

A long period of growth

has reduced poverty

dramatically

share of global copper

production (30%)

share of global copper

reserves (30%)

MINING SECTOR GDP AND ITS CONTRIBUTION TO NATIONAL GDP, 2003-2015

US$

in b

illions

*Annual average period 2003 - 2005**In the first quarter of the year

Copper mining Other mining activities Contribution of mining GDP (%)

Source: Consejo Minero, from information by Banco Central de Chile

0

5

10

15

20

25

30

35

40

2003-2005* 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015**0

5

10

15

20

25

30

35

40

MINE PRODUCTION OF COPPER AND COPPER PRICE, 2003-2015

Tonnes

in m

illions

(fin

e c

opper)

*Average annual period 2003 - 2005**Accumulated until April for Chile production, March for world production and showing average copper price to May

US$

per

pound

Chilean Production Rest of the world Production Copper price

Source: Consejo Minero, from information by Banco Central de Chile

2003 - 2005* 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015**

0

2

4

6

8

10

12

14

16

18

20

0

50

100

150

200

250

300

350

400

450

500

Mining GDP and its

contribution to Chile’s

GDP

Mining exports as a

proportion of total

exports (50%)

Copper as a proportion

of fiscal revenues (10%)

TFP of the chilean

copper industry

Labour productivity

WAGES

LABOUR

PRODUCTIVITY

Forecasting 2025…

What challenges are we facing?

SOURCE: FCH (BASED IN COCHILCO’S DATA)

-

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

CU MINING PRODUCTION FORECAST(THOUSAND TCUF)

BASE/Operations BASE/Projects PROBABLE/Projects POSSIBLE POTENTIAL/Cu Projects

7.838 KtCuf

Cumulative Efforts

Scenario A

Fully Leveraged

Mining Potential

Scenario B

Wasted Potential

Level of Institutional

development

Level of human

Capital development

Level of supplier

development

R&D + Innovation

capacity

Productive

capacity

Ensure competitiveness of

productive base

Support investment

for growth

Ensure the future

(Exploration)

Cycle closure, positive

socio-enviromental balance

Scenario A

Effort Level

Scenario A

Cu Production

Copper

Production

Low

replenishment

of deposits

Energy

Communities

Productivity

Low grade

of deposits

Local supplier

capacity

Duplicity of

environmental

permits

60% of

reserves in

Central Region

Low

Appreciation

for mining

Human

Capital

Water

Tackling Mining Industry Challenges

Level of accumulated Capacity

Growing Water and Energy Demand

0

5

10

15

20

25

30

35

40

45

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

En

erg

ía (

Tw

h)

Base Probable Posible

40 TWH

PROJECTED ENERGY CONSUMPTION

(TWH)

• Increase in electricity demand from 23TWH to 40TWH

• High impact of energy on industry costs: aprox. 20%

• Increase of water consumption (fresh and seawater) of 66% (14,8 m3/s to

24,6m3/s) due decreasing grade of concentrate

• Use of seawater could increase over 40% of costs associated to energy

0

5

10

15

20

25

30

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Ag

ua

m3

/s

Agua Fresca Agua de mar

24,6 m3/s

PROJECTED WATER CONSUMPTION

(m3/s)

SOURCE: FCH (BASED IN COCHILCO’S DATA) Fresh water Seawater

Tailings

• Increase in generated tailings from 600 Mtpa to 1.300 Mtpa

• In 10 years mining will duplicate tons removed

• Future projects are in macro central zone, major population density areas

• Impact on communities

0

200

400

600

800

1000

1200

1400

1600

0

2

4

6

8

10

12

14

16

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Mt

de

min

era

l p

roce

sad

o

Mt

de

Cu

fin

o e

n c

on

cen

tra

do

s

Producción máxima de Cu en concentrados (Mt de Cu fino)

Procesamiento máximo en planta concentradoras (Mt de mineral)

RELATION BETWEEN TREATED MINERAL & FINE CU CONTAINED IN

PRODUCTION CONCENTRATE (Mt of Cu)

SOURCE: COCHILCO

Maximum production of Cu in concentrate (Mt of fine Cu)

Maximum processing of concentrate plants (Mt of mineral)

Mt

of

fin

e C

u i

n c

on

cen

tra

tes M

t of p

roce

ssed

min

era

l

• Challenges faced by the mining sector require innovation + R&D; if not addressed global

market share will be lost.

• Given the complexity of the current situation, isolated R&D and innovation initiatives are

not enough. They require a collaborative effort by all sector agents (mining companies,

suppliers, R&D centers, trade associations, etc.).

• Natural resources, particularly mining, offer a unique opportunity to develop local

knowledge (biotechnology, information and communication technology, automatization

and process control, etc.).

Mining as Source for Innovation

How to leverage the opportunity?

Investment Projects

Laboratory

analysis

Automation and

communications

Mine modeling

and process

software

Equipment design and

fleet maintenance

Training and

education

Environmental

engineering

servicesInstrumentation

Project

management

engineeringExploration

services

Optimization of

mineral processing

Specialized

contractorsRemote

prospection

Optimization of

smelters and

refineries

Mining Operations

Mine

planning

Designs of

metallurgical

processes

Blasting engineering Management

and control of

water

resourcesSlope design and

control Consultancy in

rock mechanics

Economic analysis

Geotechnical

services

Drilling services

Operations control

software

Environmental

engineering

Geological

consulting

Design of

tailing damsTransport

system designs

Robotics and

autonomous

mining

Remediation

services

Energy

management

Geotechnical

services

HR Training

Personnel

services

The Global Mining Industry is Rich in Knowledge-Intensive Activities!

KICK-OFF PRODUCTIVITY, INNOVATION &

GROWTH AGENDA

CHILE’S MINING & SUSTAINABLE DEV. REPORT: TOWARDS A SHARED VISION

MINING AGENDA KICK-OFF: A

PLATFORM FOR CHILE’S FUTURE

LAUNCH NATIONAL AND REGIONAL

MINING STRATEGIC PROGRAMS

CHILE’S MINING

INDUSTRY ROADMAP

(2015-2035)

MAY

2014

JUNE

2014

DECEMBER

2014

JANUARY

2015

APRIL

2016

An ongoing social dialogue and collective

action effort: government, mining

companies, suppliers, industry associations,

community representatives.

An inspiring and challenging Vision forMining

VIRTUOUS MINING, by strengthening competitiveness and

productivity it generates conditions that enable the emergence of

a robust innovation ecosystem fostering and accelerating a

knowledge economy.

INCLUSIVE MINING, favors the participation of communities

on generated benefits.

SUSTAINABLE MINING, incorporates design into all critical

operation variables affecting the social-environmental system.

Develop a services and goods

industry based on applied scienceand technology that addresses

productivity challenges in the miningsector through the creation of a robust

collaborative innovationecosystem with industry, suppliers,

scientific & research community—academia and State.

Export 130 to 150

millon Cu tons and

other minerals

80% of production at

first global cost

industry quartiles

US$ 4 b in goods and

services exports

250 world class

suppliers

Purpose & Impact

The development of mining as a dynamic goalLong term evolutionary process

Internationalization

and productive

diversification

1975 1985 1995 2005 2015 2025 2035 Año

Phase IIncubation of critical

capabilities

Phase IIDevelopment of local

supplier base

Phase IIIEcosystem development

Factor-driven

economy

Investment-driven

economyInnovation-driven

economy

Fuente: Basado en Porter, M., C. Ketel y M. Delgado (2007 ”The Microeconomic Foundations of Prosperity: Findings from the Business Competitiveness Index”; Capítulo 2, The Global Competitiveness Report 2007-2008, World Economic

Forum; Paginas 51 a 81. Disponible en (Agosto 2015): http://www.weforum.org/pdf/Global_Competitiveness_Reports/Reports/gcr_2007/Chapter2.pdf

Urzúa, O. (2013) “The emergence and development of knowledge intensive mining service suppliers in the late 20th century”, Tesis Doctoral (PhD), Univerdad de Sussex. Disponible en (Agosto 2015):

http://sro.sussex.ac.uk/45344/1/Urz%C3%BAa%2C_Osvaldo.pdf

Low income country Middle income country High income country

Comparative Advantages Competitive Advantages

94Minería, una plataforma de futuro - Una Estrategia de Desarrollo en torno a los Recursos Naturales

¿WHAT IS A WORLD CLASS SUPPLIER?

A Supplier, established in Chile, with a

service of exportable quality

250 world class suppliers 2020CHALLENGE

Impact of suppliers in sector competitiveness continues to grow

Today, 60% of operational

costs

1980 1990 2010

7.000

6.000

5.000

4.000

3.000

2.000

1.000

0

Codelco’s evolution of costs

Insumos y Servicios de Terceros como Proporción del Costo Operacional Codelco

Millones de US$. Moneda de cada año

Services Inputs Other Operational Costs

At a glance

WCSP, a Collaborative Process of Value Creation

Mining Companies

challenge

Project Project Project

Suppliers

R+D Universities

challenge challenge

…with the Generation of Shared Value

Mining Companies

challenge

Project Project Project

Suppliers

R+D Universities

challenge challenge

•Solution to mining site

problems

• Improve productivity

and competitiveness

Mining

Companies

•Access to real scale test lab

• Improve technology offer

and business capabilitiesSupplier

Companies

Mining

Industry• Improves competitiveness

• Improves productive chain

capabilities

•Transversal problems

solutions

•Development of sector intensive

in knowledge and technologies,

capable of exporting products

and services to other latitudes

Country

Mining Supplier´s Ecosystem

Virtuous Cycle

Mining

Innovation and Entrepreneurship

Open Culture

Piloting

Collaborative

Scouting

AnticipationResults

Efficiency

Long Term

World Class

Strategic

Industry

Large Scale WORLD CLASS

SUPPLIERS

PROGRAMME

Skills Development Strategy Across the

Mining Value Chain

1

23

4

5

6Training packages

Quality framework for

training instructors

Quality framework

for training trades

Demand Study

Qualifications

framework

Companies / work

Certification system

Education and

training

Process

maps

Learning

paths

Program

descriptors

Occupational

profiles

How to manage production to reach higher

productivity.

CCM: A Chilean mining Human Capital

Initiative

Christian Schnettler

Manager of Mining Skills Council

Consejo Minero

April 27, 2016

Main Human Capital Challenges – Chilean Mining human capital challenges

mining sector in Chile• Productivity Improvement

• Alignment of industry demand and Chilean educational system

• Quantity – Gap projected by large scale mining companies and key

suppliers

• Quality – Skills demanded by the mining sector

• Attraction of younger generations

Mining sector

initiative

to align labor

market demand

with

“Formación para el

trabajo – Job

training”

Provide

quality

demand

information

Establish

quality

standards

Define

job profile

requirements

CCM – Consejo Competencias MinerasA win/win effort

JOB PROFILES

COMPETENCIESCOMPETENCIES

Developing Human Capital for the Chilean Mining Sector

DEMAND NATIONAL

CERTIFICATION

SYSTEM

QUALIFICATION FRAMEWORK

QUALITY FRAMEWORK FOR

TRAINING PROGRAMS

TRAINING PACKAGES

QUALITY FRAMEWORK FOR

INSTRUCTORS 4

3

5

EDUCATION AND

TRAINING

MINING

SECTOR

1

2

6

CCM Partners

Mining companies:

1. Anglo American

2. Antofagasta Minerals

3. BHP Billiton

4. Codelco

5. Collahuasi

6. Freeport McMoRan

7. Glencore

8. KGHM/Sierra Gorda

9. Kinross

10. Lundin

11. Teck

95% of Chilean copper production

Providers: 12. Finning Chile S.A.

13. Komatsu Chile

Associations:14. Aprimin

15. Asociación de Industriales de

Antofagasta

16. Consejo Minero

CCM 2012 - 2015Results

4 4 30

33 11 150

Demand Studies

Versions

of MCM

Training Packages

Train the trainers

instructorsTraining programs

with CCM SealTrained

Evaluators

Mining workforce Projections 2015 - 2024

• Projected demand for the decade 2015 – 2024 amounts 30.000 workers in the large scale

mining in Chile including 18.400 that will be reaching retirement age (61%) .

• Job profiles with highest demand are mechanics and operators (mine and process) which

represent 2/3 of the total demand.

• Demand will have a slow down during 2016 and 2017, recovering growth rate starting 2018.

• Higher education related to mining technical level is highly concentrated in few institutions

(+ 60% in two of them).

• Education continues to be unaligned with the mining market, generating surplus in some

specialties and important gaps for other jobs. This lack of alignment must be resolved by the

educational institutions and national authorities.

Gaps per profile 2015 – 2024(thousand of persons)

The Consejo Minero

• Currently we are working with the “Comisión Nacional de Productividad” that

joins associations, workers, academics, public sector, etc.

– This organization is conducting a productivity study for the mining sector to be

finished as of Y.E. 2016. Its objective is to capture productivity data at company level

as well as mining sector patterns in order to generate a national benchmark with

recommendations at company level, mining sector practices, as well as public politics

required to improve Chilean mining productivity.

– Consejo Minero is facilitating consultants work at the sites as well as data gathering.

• Currently the Consejo Minero members have identified three areas of interest

to start working collaborative projects ( Tires disposal, Tailings, “Material

particulado”). which have been included in the Mining Roadmap of Alta Ley.

April, 27 2016

José Robles B.

Vice President of Productivity and Costs

Chile – Finland Meeting

Productivity Challenges in Mining

Copyrights© 2015 CODELCO-CHILE. Todos los Derechos Reservados. | Copyrights© 2015 by CODELCO-CHILE. All Rights Reserved.114

MINING PRODUCTION FUCTION: COMPLEX EQUATION

PRODUCTIVITY

CAPITAL

LABOUR FORCE

ENERGY

WATER RESOURCES

LOGISTIC & INFRASTRUCTURE

AUTHORITIES AND REGULATIONS

COPPER AND BYPRODUCTSPRODUCTION

FUCTION


PRODUCTIVITY COMPARISON, USA,

AUSTRALIAN MINING SECTOR

Aggregate productivity country

has fallen, the overall average

represents 33% of the USA.

In mining, the productivity is

equivalent to 68% with respect

to Australia.

At Codelco, labor productivity

has fallen 30% over 2000 base

year (own + contractors).

Productivity comparison, USA, Australian Mining sector

CODELCO

AVERAGE

SUBCONTRACTORS


CODELCO INVESTMENT PLAN

Sources: Wood Mackenzie y Codelco.

0

3

6

9

12

15

18

21

24

27

30

0

50

100

150

200

250

300

350

400

450

500

1996 1999 2002 2005 2008 2011 2014

Copper Price t-1

c/lb

Unitary Investment

Mill US$/ktpd

COPPER PRICE AND CAPEX/TMS

• Capex reduction of US$ 2 billions in

the period 2015 - 2016.

• It is possible an additional reduction

during 2016.

• Reduction CAPEX + OPEX of US$ 6

billions in the period 2015 – 2020.

• The objectives are: reduction of cash

and lower costs for investment due to

less projects activity.

x 3

0

1 000

2 000

3 000

4 000

5 000

2015 2016

ORIGINAL PLAN REAL/OPTIMIZED

TOTAL INVESTMENT

Million US$

Note: Year Budget currency.

The strengthening of corporate

governance and the capitalization

of the company are key to the

realization of the Investment Plan

of Codelco.


CASES

THE NEW “VIEJOS”: ¿LABOUR FORCE OF THE FUTURE?

GENERATION Y

This generation ischaracterized as prosumers,i.e. producers and consumersat the same time. In thedigital environment, createand consume constantly.

Platform aimed at youngpeople with 0-2 years of workexperience, to findemployment or professionalpractice.

Company reduced workingtime to encourageentrepreneurship. It ispossible to get 4 free hoursper week and up to 2 freedays to be undertaking.

U.S. Bureau of Labor Statistics

Young people between 18 and 35 years,

digitized, globalized, informed, motivated

and challenging.

Today they account for 25% of the labour force. However, the 2030

will reach 75%, which represents an important focus for employment

in all industries. By 2020, Codelco will be more young people than old.

Are we prepared?


ENERGY COST IN THE COPPER MINING INDUSTRY

Source: Wood Mackenzie y Codelco.

0

2

4

6

8

10

12

14

16

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

China Perú EE.UU. Australia Zambia Rusia Chile

c/KWh, constant currency

Energy Intensity (Mwh /fmt) will increase

30% in the period 2015 - 2025.


0,67

0,69

0,65

0,61

0,57

0,53

Case of I a IV Region in 2013

0

50

100

150

200

250

300

NEVERTHELESS LOWER WATER CONSUMPTION IN THE MINING INDUSTRY NEW ENVIRONMENTAL RESTRICTION IMPLY MORE EFFICIENCY IN THE WATER RESOURCES USE

Improvement Evolution in Mining IndustryMining Industry - Water Resources Use

Chilean water consumption in mining

0.70

0.65

0.60

0.55

m3/ton

-23%

20132012201120102009

m3/s

Total

254

100%

Farm Sector

183

72%

Sanitary Sector

58

23%

Large Mining

135%

Fuente: Presentación Jorge Gómez, CRU Copper Conference 2015. Informe Proyección de consumo de agua en la minería del cobre 2015, Cochilco; Análisis Prensa; Consejo Minero; Análisis BCG.

2014

CODELCO plans to use sea water in the future. The existence of

public policies to support this goal could allow to coordinate

efforts, to "share" the cost of installation.


NEVERTHELESS LOWER WATER CONSUMPTION IN THE MINING INDUSTRY NEW ENVIRONMENTAL RESTRICTION IMPLY MORE EFFICIENCY IN THE WATER RESOURCES USE

Unit of water consumption per ton of processed copper 2009-2014 (make up)

Leaching of Sulphides as the solution?


LOGISTIC AND INFRASTRUCTURE

Current Logistic (obsolescence)

Rail + Truck Optimization Sustainable Containers

Land Transportation Port Inventory Shipping

Port transportation – Turn over Containers

CATHODES:

COPPER CONCENTRATES:

More stable transport to port, storage and shipping.


R & D: Applied Innovation to increase productivity

• Operational Solutions

– Open pit risk zones/ Remote mining.

– Operational control / Robotic Samples of

concentrate

– Reliable Maintenance/ Big data.

• Resources into reserves transformation

– Productivity and safety/ Semi autonomous trucks.

– Impurities/ Complex Concentrate processes.

• Competitiveness breakthrough

– Productivity and innovation/ Continuous mining.

– Productivity and friendly environmental / Sulphide

Leaching.

ROBOTIC SAMPLES OF CONCENTRATES

SEMI AUTONOMOUS LHDSULPHIDE

LEACHING

ORE Gr > 2% Ore Gr ~ 0,5%

Just a few examples of how applied

innovation could help increase productivity!


• Communities demand earlyparticipation in new projects and mustbe considered on benefits distribution.

• New labour force: Gen Y

• Land and water restrictions.

• New environmental regulations.

• DS28 Smelter Standard

• Safety: First Priority

• Energy: B.A.N.A.N.A Effect

• Deeper mining resources and lower oregrades.

• Higher impurities imply new and morecomplex treatment processes.

• More capital – same or less production.

CURRENT CHALLENGES IN MINING - SUMMARY

P

E

O

P

L

E

R

E

G

U

L

A

T

I

O

N

S

R

E

S

O

U

R

C

E

S

April, 27 2016

José Robles B.

Vice President of Productivity and Costs

Chile – Finland Meeting

Productivity Challenges in Mining

Mining Finland, breakfast seminar 27.4.2016_Spanish presentations

Business

Transcript of Mining Finland, breakfast seminar 27.4.2016_Spanish presentations