Project Vice-Presidency

Transcription

1 Codelco Investment Plan 2012 Project Vice-Presidency Enero 2012 March 2012

2 CODELCO INVESTMENTS 2011 Investment e t Projects (*) US$ Bn Mine development expenses costs US$ 670 M Project contribute to business US$ 40 M TOTAL CODELCO 2011 US$ Bn (*) () Project Portfolio managed by VP US$ Bn Note: Values expressed in 2011 currency. 2

3 VP INVESTMENT PLAN 2011 ACHIEVEMENTS Completed Projects (US$ M currency 2011) MH EARLY WORKS 150 RÍO BLANCO DIVERSION TUNNEL 160 WATER FLOW REGULARISATION (ANDINA) 95 With these projects, operations received assets totalling US$ 405 M MH Early Works Río Blanco Diversion Tunnel 3

4 VP INVESTMENT PLAN 2011 ACHIEVEMENTS Progress at Key Projects Ministro Hales Project Stage: Investment Implementation April: Started world s largest pre-stripping pp operation. August: Completed early works. August: Awarded first civil engineering contract. Chuquicamata Underground Mine Project Stage: Feasibility+ Early works implementation Progress on feasibility stage. August: Early works approved by Board. October: Positive recommendation by Cochilco Mideplan on early works and start-up operations. December: Approval to start surface works (Sernageomin). 4

5 VP INVESTMENT PLAN 2011 ACHIEVEMENTS Progress at Key Projects Andina Expansion 244 Project Stage: Feasibility Progress on early works of projects. Acid Water Treatment (TADA) and Node 3.,00. August: Surface rights agreements for concentrator plant and other facilities. New Mine Level Project El Teniente Stage: Investment t Implementation ti March: Environmental Impact Assessment (EIA) approval. July: Investment t implementation ti stage approved by the Board. Progress on early works (Confluence platforms). August: Awarded main tunnel contract. 5

6 VP INVESTMENT PLAN 2011 ACHIEVEMENTS Progress at Key Projects RT Sulphide Mine - Phase II Project Stage: Feasibility August: Started Prefeasibility Stage. Decision to double mineral treatment capacity at concentrator plant, that will use desalinated seawater. December: End of Prefeasibility Stage. San Antonio Oxides Project Stage: Feasibility July: Started t Feasibility Stage. September: Base project Environmental Impact Statement approval. Metallurgical studies to double project production capacity. Drilling campaign to define primary sulphides at this deposit. 6

7 VP INVESTMENT PLAN 2011 ACHIEVEMENTS Safety Indicators Total Frequency Rate : 1.53 Total Severity Rate : 40 Total Man-Hours : 11,787,421 Employment Average 2011 : 6,029 employees Estimated 2012 : 16,200 employees 7

8 CODELCO ESTIMATED CAPITAL EXPENDITURE FOR 2012 Investment t Projects (*) US$ Bn Mine development & contribution to joint-ventures US$ 756 M TOTAL CODELCO 2012 US$ Bn (*) Project Portfolio managed by VP US$ Bn Note: Values express in nominal currency. 8

9 CHALLENGES TO VP INVESTMENT PLAN 2012 Project Vice-Presidency id has to manage a portfolio thatt includes approximately 30 studies and projects, totalling US$ billion, that will have a positive impact on all Codelco divisions. Implement projects within deadline, budget and quality standard, and, particularly, prevent serious accidents occurring. Complex scenario: Simultaneous projects at Codelco and in the mining industry; high demand for professionals, engineering, services and supplies; increase in project costs and risk of unexpected events 9

10 CHALLENGES TO VP INVESTMENT PLAN 2012 MINISTRO HALES Total Investment 2012 US$ Bn Start all Construction Contracts 1Q 2012 CHUQUICAMATA UNDERGROUND MINE Total Investment 2012 US$ 234 M Complete Basic Engineering 4Q 2012 Start Construction of Main Tunnels 1Q

11 CHALLENGES TO VP INVESTMENT PLAN 2012 ANDINA EXPANSION 244 Total Investment t 2012 US$ 86 M API (Investment Project Approval) issued End of 2012 NEW MINE LEVEL EL TENIENTE Total Investment 2012 US$ 399 M Complete Emergency Ramp 2Q 2012 End of Confluence Platform Construction 2Q

12 CHALLENGES TO VP INVESTMENT PLAN 2012 RT SULPHIDE MINE - PHASE II Total Investment t 2012 US$ 73 M Development of Feasibility Stage 2012 SAN ANTONIO OXIDES Total Investment 2012 US$ 57 M Start of Investment Implementation Stage 3Q

13 BUSINESS & DEVELOPMENT PLAN 2012 Copper Output (Thousands of Mtf.) close ENMS Close RT Oxides Close Chuqui Open Close Salvador Oxides Sur Open Pit Quetena ANDINA 244 San Antonio NEW MINE LEVEL MH RT Phase II CHUQUI UNDER Source : Preliminary i PND

14 CODELCO S OUTPUT EVOLUTION (Thousands of Mtf.) History With Projects Projection Without Projects Note: Includes Codelco s 49% stake in El Abra. Projection Source: 2011: Budget 2012: Triennial Plan proposed to Ministry of Finance and Ministry of Mining. 2020: Business & Development Plan (PND) 2011 & Non-Development Plan (PSD) 2011, and SCM El Abra. 14