How To Understand And Understand The History Of Mining In Chile

Transcription

1 Mining in Chile Interregional IAEA-CYTED-UNECE Workshop on UNFC 2009 Applications in Uranium and Thorium Alberto Salas President & CEO Chilean Mining Association Santiago, July 10 th 2013

2 SUBJECTS The Chilean Mining Association (SONAMI) Chilean Mining: Worldwide and National Leadership Challenges & Opportunities SONAMI represents the Chilean private mining

3 SONAMI : Chilean Mining Association SONAMI is a trade organization that brings together and represents large, medium and small-scale metallic and non-metallic mining companies. SONAMI was founded on September 26th, 1883 and since its inception, has made significant contributions to the development of private mining institutions and mining legislation. Represents large, medium and small-scale mining companies

4 SONAMI: Chilean Mining Association We have worked to reach the following objectives: Promote the development of private mining. Be a referent in mining and represent our associates interests face to Chilean authorities. Provide information and support services to our members in technical, legal, labor, environment, tax and economic aspects. Represent Chilean private mining among international institutions (ICMM, SIM, IWCC, OLAMI-International). Promote the development of private mining

5 SONAMI: Chilean Mining Association 75 mining companies, large and medium-scale, and exploration companies. 38 mining associations, gathering more than small mining companies Fundada hace 130 años, en septiembre de 1883

6 MINING COMPANIES Large-scale mining (Chile)

7 MINING COMPANIES Medium-scale mining (Chile)

8 SMALL MINING ASSOCIATIONS SMALL MINERS

9 Chilean Mining The Chilean Mining Association (SONAMI) Chilean Mining: Worldwide & National Leadership Challenges & Opportunities Worldwide and National Leadership

10 CHILE: A SMALL COUNTRY We represent the 0,6% of the world surface and 0,25% of population and income However, in mining.

11 CHILE: LEADER IN MINING World Production Product Production % of world Ranking Chile 2012 production 1 Copper MTMF 32% 1 Natural nitrates 930 MTM 100% 1 Iodine TM 58% 1 Lithium TM 45% 1 Rhenium TMF 52% 3 Molybdenum TMF 15 % The first world copper producer

12 WORLD COPPER RESERVES Chile 28,0% Australia 12,6% Perú 11,2% EEUU 5,7% México 5,6% Fuente: U.S. Geological Survey, January 2013 We have the biggest copper reserves of the world

13 MINING CONTRIBUTION GDP (%) ,7%

14 LEADER IN EXPORTS Average : 64,4 % ,4% Source: SONAMI, based on Central Bank database.

15 MINING IN TOTAL FISCAL REVENUE % ,7% Source: SONAMI, based on DIPRES database.

16 MINING IN TOTAL FISCAL REVENUE ( US$ millions) Aporte Minería Presupuestos Otros Desarrollo Social Obras Públicas Salud Congreso,PoderJudicial y Contraloría 520 Minería Energía Medio Ambiente Secr. General de la Presidencia Source: SONAMI, based on DIPRES database.

17 HIGHEST SALARIES (US$/month March 2013) COUNTRY MINING ELECTRICITY FINANCE INDUSTRY TRANSPORT CONSTRUCTION COMMERCE AGRICULTURE Source: Superintendencia de Pensiones

18 ACCIDENT RATE PER ECONOMIC ACTIVITITY (each 100 workers) Tpte. Ind.(1) Agric. (2) Comer. Constr. Serv. Electr.(3) Minería Pais Mining: Lowest accident rate

19 In other words Mining is the most solid pillar that sustains economic and social development of Chile and is the most competitive industry available in the country.

20 2022: COPPER PRODUCTION WILL REACH TONS 9,000,000 7,000,000 3,550,000 5,000,000 5,450,000 5,450,000 3,000,

21 2022: GOLD PRDUCTION WILL REACH 150 TONS

22 2022: SILVER PRODUCTION WILL REACH TONS

23 2022: IRON PRODUCTION WILL REACH TONS

24 2022: LITHIUM PRODUCTION WILL REACH TONS

25 2022: IODINE PRODUCTION WILL REACH TONS

26 2022: POTASSIUM PRODUCTION WILL REACH TONS

27 Identified Resources of Uranium in Chile Origin Identified Resources (RAR + IR) (Ton U) Surface Deposits 68.0 Metasomatic Deposits 1,762.8 Cenozoic Volcanic Deposits Unconventional Deposits 1,798.0 Total 3,728.8 Identified Chilean resources (RAR + IR) are small, relative to identified resources worldwide. Is equivalent to only 0.07%.

28 Uranium Production in Chile The nearest possibility of uranium production in Chile, is as a byproduct of copper mining. In , CODELCO and CCHEN sign cooperation agreements for performing uranium extraction activities. In 2011, CODELCO agreed a collaborative alliance with France, in connection with its strategy to ensure the future supply of uranium. Radomiro Tomic facilities has a pilot plant to assess the feasibility of installing an industrial plant. The pilot plant produces uranium concentrate (yellow cake) from copper treatment leach solutions (15 to 20 ppm of uranium). The pilot plant accumulated production (20 to 30 kilos of yellow cake) has been available to the CCHEN.

29 Challenges & Opportunities The Chilean Mining Association (SONAMI) Chilean Mining: Worldwide and National Leadership Challenges & Opportunities SONAMI represents the Chilean private mining

30 STRATEGIES CHALLENGES The mining industry increasingly faces a complex scenario: Social: increased participation of stakeholders; Political: mining remains an important issue on the political agenda. Focus on benefits distribution and taxation. Environment: increasingly stringent regulations. Muchas Gracias... Technical: declining ore grades. Competitiveness (energy costs; labor costs, capex, etc.)

31 CHALLENGES TO MINING (CHILE) Acceptance and industry recognition; Water resources; Energy; Innovation and technology transfer; Human Capital Muchas Gracias...

32 Sociedad Nacional de Minería Chile and its mining: a world of opportunities. Muchas Gracias... Thank you