Chilean National Mining Program

Transcription

1 Chilean National Mining Program From Natural Resources to a Knowledge Economy Mauro Valdés President, Chilean National Mining Program November 2015

2 The future of mining is today s task MAY 2014 JUNE 2014 DECEMBER 2014 JANUARY 2015 DECEMBER 2015 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 ( )

3 An Inclusive and Inspiring Vision 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. SUSTAINABLE MINING, incorporates design into all critical operation variables affecting the social-environmental system. INCLUSIVE MINING, favors the participation of communities on generated benefits.

4 Purpose & Impact Develop a services and goods industry based on applied science and technology that addresses productivity challenges in the mining sector through the creation of a robust collaborative innovation ecosystem with industry, suppliers, scientific & research community academia and State. 250 world class suppliers Export 130 to 150 millon Cu tons and other minerals US$ 10 b in goods and services exports 80% of production at first global cost industry quartiles

5 The development of mining as a dynamic goal Long term evolutionary process Low income country Middle income country High income country Phase I Incubation of critical capabilities Phase II Development of local supplier base Phase III Ecosystem development Internationalization and productive diversification Comparative Advantages Competitive Advantages Factor-driven economy Investment-driven economy Innovation-driven economy Año 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 , World Economic Forum; Paginas 51 a 81. Disponible en (Agosto 2015): 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): Minería, una plataforma de futuro - Una Estrategia de Desarrollo en torno a los Recursos Naturales 5

6 Mining Potential: From Copper to Knowledge Production expansion as an engine for new and larger capabilities Cu Production (Mton) 8000 Level of Accumulated Capacities A Scenaario A Full Development Phase III Fully Leveraged Mining Potential Productive Management, and Technological Capacities Safety Environment Productivity Costs Strategic Challenges Nuclei Transform Resources in Reserves Shared value and community relations Year Level of capacity and development suppliers R&D+i Capacity and University development Human Capital Development Level Institutional Development Level Fuente: Reunión de trabajo Grupo Minería Virtuosa CNIC Informe a la Presidenta de la República Minería: Una Plataforma de Futuro para Chile, p.24 Minería, una plataforma de futuro - Una Estrategia de Desarrollo en torno a los Recursos Naturales B Scenario B Capped Development Phase III Wasted Mining Potential 6

7 2015 Roadmap TRACTIONING NUCLEI ENABLING NUCLEI MINE PLANNING & OPERATIONS MINERAL CONCENTRATION SUPPLIER DEVELOPMENT HUMAN CAPITAL INFRASTRUCTURE TAILINGS SMELTER & REFINERY ADVANCED, SPECIALIZED, SAFE HYDROMETALLURGY CONNECTIVITY ENERGY WATER NETWS & PROTOCOLS (SMART MINING) VISION & GOALS Mt CuF accumulated 80% of production at first global cost industry quartiles 250 world class suppliers US$ 10 b Exports INSTITUTIONALITY REGULATORY FRAMEWORK STATE AGENCY CAPACITY CITIZEN PARTICIPATION

8 Forecasting 2025 What challenges are we facing? 8,000 CU MINING PRODUCTION FORECAST (THOUSAND TCUF) KtCuf 7,000 6,000 5,000 4,000 3,000 2,000 1, BASE/Operations BASE/Projects PROBABLE/Projects POSSIBLE POTENTIAL/Cu Projects SOURCE: FCH (BASED IN COCHILCO S DATA)

9 Energía (Twh) Agua m3/s Growing Water and Energy Demand 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 PROJECTED ENERGY CONSUMPTION (TWH) Base Probable Posible 40 TWH PROJECTED WATER CONSUMPTION (m3/s) SOURCE: FCH (BASED IN COCHILCO S DATA) Agua Fresh Fresca water Agua Seawater de mar 24,6 m3/s

10 Mt of fine Cu in concentrates Mt de Cu fino en concentrados Mt de mineral procesado Tailings Increase in generated tailings from 600 Mtpa to Mtpa In 10 years mining will duplicate tons removed Future projects are in macro central zone, major population density areas Impact on communities RELATION BETWEEN TREATED MINERAL & FINE CU CONTAINED IN PRODUCTION CONCENTRATE (Mt of Cu) Producción Maximum máxima production de Cu of en Cu concentrados in concentrate (Mt de (Mt Cu of fino) fine Cu) Procesamiento Maximum processing máximo en of planta concentrate concentradoras plants (Mt de of mineral) SOURCE: COCHILCO Mt of processed mineral

11 Human Capital Increased demand for human capital: 2023 industry will require new workers new workers to replace retirees new workers for operation of new projects Operators and maintenance profiles represent 80% of demand Projected demand assumes substantial improvement of labor productivity PROJECTED HUMAN CAPITAL DEMAND ( ) (Nº PEOPLE) people Total Retiro retirement de internos of staff y & proveedores suppliers Demanda of de projects proyectos in execution en ejecución Demanda of de projects proyectos in en evaluation evaluación SOURCE: MINING SKILLS COUNCIL (CCM)

12 Mining as Source for Innovation 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.). How to leverage the opportunity?

13 Identified Global Challenges in Value Chain Concessions System Mining Property Public Geoscientific Base Generative Tracking Exploration Advanced Exploration Mining Projects, Engineering, Construction, Start-up Facilitate «Access to Land» Increase «prospectability» imprint of national grounds Increase rate of new discoveries Reduce length and cost of campaigns Access deeper reservoirs Optimum strategy of reserves consumption Diminish gap between projected versus real parameters Shorten cycles

14 Identified Global Challenges in Value Chain Operations Concentration Open Pit Mine Und. Mine Hydrometallurgy Smelting & Refining Comminution Closing Distribution Commercializ ation Large Volume Mov. for Long Distances Effective Asset Use Waste and Impact Management (PM10/PM2,5) Large Scale Deep Mining Decrease of Energy, Water & Iron Consumption Asset Management Increase of copper recovery, copper grade in concentrates Impurity Control Use of future idle capacity Decrease in Water & Energy Consumption Recovery of Copper & Precious Metals Complex Concentrate Treatment Increase in Competitiveness with Greater Level of Capture Risk Management and Labor Conditions Improvement Market Protection New Product Dev. Chemical and physical stability of residues, considering environment life, health and security of people..

15 Lines of Action Line 1 GOVERNANCE Scope Board and stakeholder support Coordination with complementary initiatives Roadmap Nuclei 2 INFORMATION & SIGNALING 3 TRACTIONING PROJECTS & INITIATIVES Foresight and global trends Supplier Studies Mining R&D+i Chilean Mining Roadmap R&D+i Collaborative Programs Large Supplier Attraction for Development and Transfer of R&D Piloting Spaces Associated to Mineral Demand Process Nuclei NUCLEI TRACTIONING MINING OPERATIONS & PLANNING MINERAL CONCENTRATION TAILINGS HYDROMETALLURGY SMELTING & REFINING 4 ENABLING PROJECTS & INITIATIVES 5 FINANCING World Class Suppliers Program 2.0 Human Capital (Skilled, Specialized, Safe) Infrastructure (Connectivity, energy, water, networks, protocols, smart mining) Institutionality (Capabilities) Strategic Investments Fund Venture Capital Funds Chilean Economic Dev. Agency Support Company Financing ENABLERS SUPPLIER DEVELOPMENT HUMAN CAPITAL INFRASTRUCTURE INSTITUTIONALITY

16 From natural resources to a knowledge based economy Escaping the natural resource course World Class Suppliers Program WCSP

17 INNOVAXXION Company dedicated to the creation, design and implementation of innovative solutions based on technology, processes and applied engineering primarily in mining Savings of USD $20mm Decrease of energy consumption Carbon footprint reduction in catode production Reduction from 17 to 10% of anodes left CHALLENGE: Reduce anode that must be recycled after electrorefinement process PROJECT: Diminish Scrap in Processesing of High Purity Copper Anodes SOLUTION: Elimination of copper anode ears, replaced by artificial ear for handling «Earless».

18 AGUAMARINA Aguamarina provides evaluation, control and research services in Molecular Biology and Biotechnology. As well as biocorrosion, bioleaching and control of particulate matter. CHALLENGE: Ensure compliance with emission standards of suspended particulate matter PM10 generated by the crushing operational process, decreasing the exposure of operators. PROJECT: Reduction of Suspended Particulate Matter from Stationary Sources. Efficient water use Environmental impact reduction 97% decrease of particle emissions Compliance of dust exposure for operators and communities SOLUTION: Design of a system to remove particulate matter emission fixed points in the transfer of the ore crushing area using water and an organic compound produced by EPS bacteria algae, which captures dust by electrical charge.

19 Mining, Information, Communication and Monitoring (MICOMO), technology services company, which seeks to adapt and commercialize services based in information and communication technologies. 48 hour anticipated forecast 75% meteorological certainty level Optimization of road risks mitigation measures Air quality standard compliance CHALLENGE: Management of particulate matter, to minimize the impact of this pollutant around the mine. PROJECT: Environmental impact forecast of particulate matter. SOLUTION: Implement a tool of air quality that monitors the environmental conditions and allows to manage with anticipation measures of particulate material MP10, through the use of water in the irrigation plans of the mine. Communities Health Environment

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21 Purpose Develop a services and goods industry based on applied science and technology that addresses productivity challenges in the mining sector through the creation of a robust collaborative innovation ecosystem with industry, suppliers, scientific & research community academia and State