COLLABORATIVE INNOVATION CHALLENGES

Transcription

1 COLLABORATIVE INNOVATION CHALLENGES

2 Characterization of Innovation Challenges for Antofagasta Minerals Edition nº1 Version: March 2018

3 Invitation to innovate Make innovation a permanent practice foto "We seek to encourage the generation and capture of new ideas that respond to the challenges of Antofagasta Minerals, allowing us to improve our work practices and ways of relating with others, seeking to create value for the organization, people and the environment."- Iván Arriagada CEO Antofagasta PLC Introducción / Página 02/

4 Table of Contents INTRODUCTION TO ANTOFAGASTA MINERALS 07 Charter of Values CHALLENGES IDENTIFIED BY AREAS OF INTEREST 09 Areas of Interest 10 Map of Challenges 11 AUTOMATION AND ROBOTICS 14 AR.01 - Non-scheduled shutdowns and equipment failures that impact productivity 15 AR.02 - Exposure to risk in specific maintenance tasks and monitoring of conditions 16 AR.03 - Automation and robotics in specific stages of the production process 17 AR.04 - Technologies and techniques to make exploration drilling more efficient 18 AR.05 - Difficulty in scheduling drilling and blasting processes in an optimal and coordinated manner 19 AR.06 - Exposure to the risk of rock fall or ground failure due to activities near the rock mass 20 AR.07 - Improve monitoring of the condition of tailings pipeline and concentrate pipelines by capturing data online 21 AR.09 - Improve knowledge of the location and access control of workers 22 LOW GRADE MINERALS 24 BL.02 -Improve traceability of mineral characteristics throughout the production process 25 BL.03 - Optimum allocation of ore delivered to plant 26 MOVEMENT OF LARGE VOLUMES OF MATERIAL 28 MM.02 - Higher performance and efficiency in the loading and transport process, in terms of cycle times and performance, among othersos 29 MM.03 - Impact on production process due to conveyor belt failures and duration of shutdown HOW TO COLLABORATE WITH THE CHALLENGES? 30 TAILINGS DAM 32 DR.01 - Decrease in tailings volume, increasing percentage of solids and water reclaiming 33 DR.02 - High levels of fine material and moisture in rejected spent leached ore 34 ENERGY EFFICIENCY AND USE OF RENEWABLE ENERGIES 36 EE.01 - Increased efficiency in diesel consumption 37 EE.03 - High levels of energy consumption in the most demanding processes 38 IMPACT ON SOCIAL CONTRIBUTION ON COMMUNITIES 40 IC.01 - Generate new ways to mitigate the environmental and social impact resulting from the mining operation 41 IC.02 - Facilitate diversity within the work teams, considering gender inclusion and equity 42 CHALLENGES OF OTHER AREAS OF INTEREST 44 DA.01- Ensuring comprehensive emergency management and quick response to contingencies 45 DA.02 - Greater autonomy of exploration teams in greenfield campaigns in remote areas 46 DA.03 - Construction and management of camps in areas of difficult access 47 DA.04 - Ensuring learning in operational training for staff 48 DA.05 - Difficulty in capturing and reusing knowledge generated in critical areas of mining processes Índice / Página 03/

5 Introduction Antofagasta Minerals

6 Introduction Antofagasta Minerals Antofagasta Minerals is Chile's largest non-state owned mining group and one of the ten largest copper producers in the world. Its vision is to be recognized as an international mining company, focused on copper and related by-products, with a focus on operational efficiency, value creation, high profitability and as a preferred partner in the global mining industry. Antofagasta Minerals operates Los Pelambres, Centinela, Antucoya and Zaldívar mines in Chile, which produce copper cathodes and concentrate, as well as gold and molybdenum as by-products. Introducción / Página 05/

7 Founded 2014 (merger between Esperanza and El Tesoro mining operations) Production ,319 Tons of copper 70% Property of Antofagasta Minerals Life of the Mine 2065 (merger between Esperanza and El Tesoro mining operations) Start of Operation 2016 Production ,522 Tons of copper 70% Property of Antofagasta Minerals Life of the Mine 2038 Start of Operation % Property of Antofagasta Minerals Start of Operation % Property of Antofagasta Minerals Production ,758 Tons of copper Life of the Mine 2050 Production ,302 Tons of copper Life of the Mine 2029 Introducción / Página 06/

8 Charter of Values RESPECT for Others Responsibility for SAFETY AND HEALTH Commitment to SUSTAINABILITY Introducción / Página 07/ These values are the foundation that guides Antofagasta Minerals' actions. EXCELLENCE in Daily Performance INNOVATION as a Permanent Practice Being VISIONARY In the scope of innovation, AMSA seeks to: Promote and execute innovation projects that generate value for the organization, people and the environment. Leverage the other strategic pillars of the company (operations of excellence, safety and sustainability and growth). Foster the joint development of initiatives with external institutions, generating sustainable relationships to create mutual value. Position itself as a lider in the development and implementation of new technologies and business models that impact its value chain. Foster an "innovation culture" throughout the organization, developing working environments that encourage the generation of ideas and initiatives, as well as innovative practices.

9 Challenges identified by areas of interest

10 Areas of strategic interest Automation and Robotics Processing of Low Grade Minerals Movement of Large Volumes of Material Tailings Dam Energy Efficiency and Use of Renewable Energy Impact on Social Contribution on Communities Challenges of other Areas of Interest

11 EXPLORATION / PROJECTS EXTRACTION OF MINERALS HYDROMETALLURGY CONCENTRATORS Scope: Exploration and Construction Projects. Scope:. Drilling, Blasting, Loading and Transporting Scope: Crushing, Agglomerate, Heap Leach and Dump Leach, SX/EW. Scope: Crushing, Grinding, Flotation, Thickening and Tailings. DA.02 Greater autonomy of exploration teams in greenfield campaigns without mobilization. DA.03 Construction and supply of camps in areas of difficult access and without utilities. AR.04 Technologies and techniques to make exploration drilling more efficient. AR.05 Difficulty in scheduling drilling and blasting processes in an optimal and coordinated manner, incorporating data monitoring and control. AR.06 Exposure to the risk of rock fall or ground failure due to activities near the rock mass. MM.01 High cost of moving material in and out of the mine. MM.02 Higher performance and efficiency in the loading and transport process, in terms of cycle times and performance EE.02 High energy consumption in the electrowinning process. BL.03 Optimum allocation of ore delivered to plant BL.04 Generation of leaching processes of primary sulfides rich in chalcopyrite. DR.02 High levels of fine material and moisture in rejected spent leached ore, generating the risk of a possible collapse. DR.01 Decrease in tailings volume, increasing percentage of solids and water reclaiming. AR.07 Insufficient monitoring of the condition of tailings pipeline and concentrate pipelines LEGEND of Areas of Strategic Interest: Automation and Robotics Low Grade Minerals Movement of Large Volumes of Material Tailings Dam Impact on Social Contrib. on Communities Energy Efficiency and Use of Renew. Energies Challenges of other Areas of Interest CROSS-CUTTING CHALLENGES: AR.01 Non-scheduled shutdowns and equipment failures that impact availability. AR.02 Exposure to risk in specific maintenance tasks and monitoring of conditions. AR.03 Automation and robotics in specific stages of the production process. AR.08 Operation shutdown due to falling of non-crushable material in crushers. MM.03 Impact on production process due to conveyor belt failures and duration of their maintenance. MM.04 Optimization of equipment lifespan and maintainability through new materials. EE.01 Increased efficiency in diesel consumption. EE.03 Lack of integrated data to define the best trade-off between optimum energy consumption and throughput. EE.04 High levels of energy consumption in the most demanding processes BL.01 Use of integrated data to optimize models, control process variability and improve decision making process BL.02 Ensure continuous traceability of material characteristics throughout the production process AR.09 Improve knowledge of the location and access control of workers. DA.01 Ensuring comprehensive emergency management and quick response to contingencies. DA.05 Loss of knowledge generated and low existence of collaborative networks. DA.04 Ensuring learning in operational training for staff. IC.01 Environmental and social impact, resulting from the movement of large tonnage of material. IC.02 Promotion of diversity within the work teams, considering gender inclusion and equality.

12 Automation and Robotics Antofagasta Minerals seeks to introduce automation and robotics mainly in those tasks that are repetitive and pose greater health risk, in order to avoid injury, ensure operational continuity and increase productivity. Metallurgical processes, especially in concentrator plants, have a higher level of advanced control and automation than mine extraction and maintenance processes. Desafíos 2018 / Página 11/

13 Challenges Automation and Robotics AR.01 Non-scheduled shutdowns and equipment failures that impact productivity. AR.02 Exposure to risk in specific maintenance tasks and monitoring of conditions. AR.03 Automation and robotics in specific stages of the production process. ( imagen ) ( imagen ) AR.04 Technologies and techniques to make exploration drilling more efficient. AR.05 Difficulty in scheduling drilling and blasting processes in an optimal and coordinated manner. ( imagen ) ( imagen ) AR.06 Exposure to the risk of rock fall or ground failure due to activities near the rock mass. Desafíos 2018 / Página 12/

14 Challenges Automation and Robotics AR.07 Improve monitoring of the condition of tailings pipeline and concentrate pipelines by capturing data online ( imagen ) AR.09 Improve knowledge of the location and access control of workers. Desafíos 2018 / Página 13/

15 Desafío MANAGEMENT INVOLVED : Maintenance Desafíos 2018 / Página 14/ BACKGROUND INFORMATION - PREVIOUS SOLUTION EFFORTS: Currently, the technology used for vital signs in most of the equipment is the one incorporated from the factory. If not, some manual inspection equipment is used depending on the variable to be controlled (thermographies, RX, vibrations, etc.), which generates disaggregated information for decision making. From the management point of view, a strategy is being developed to move from corrective methods to preventive and predictive ones. SCOPE OF THE CHALLENGE: All the equipment of the production process. SAG priority, primary crusher and mine mobile equipment. Data analysis and system integration. Integration with production and supply areas. Use of technologies such as Big Data, digitization, automation and robotics. EXPECTED BENEFITS: Increase equipment availability. Reduce unplanned shutdown. KEY PERFORMANCE INDICATORS: Availability of equipment [%] Non-scheduled shutdowns [#] or [Hours] EEXTRACTION OF MINERALS AREA OF INTEREST: Automation and Robotics CHALLENGE DESCRIPTION: The aim is to establish predictive maintenance models based on integrated data from vital signs of mine and plant equipment, in order to plan their maintenance in a more efficient way. Mainly, new technologies are being sought to allow for early diagnosis of possible faults, in order to increase reliability and ensure equipment high performance. Also, solutions of interest are those that support coordination with the supply area to ensure the availability of spare parts. EXPLORATION / PROJECTS Non-scheduled shutdowns and equipment failures that impact productivity HYDROMETALLURGY CONCENTRATOR 01 AR.

16 Desafío MANAGEMENT INVOLVED: Maintenance Desafíos 2018 / Página 15/ SCOPE OF THE CHALLENGE: Specific plant equipment: SAG mill, liner changes, primary crusher, belt pulleys, concentrators and irrigation. Maintenance and monitoring of conditions (e.g.: sampling). Consider from the modification of processes and safety practices to the automation and robotics of processes, among others. BACKGROUND INFORMATION - PREVIOUS SOLUTION EFFORTS: There are some initiatives already under development that have the same objective as: real-time mineral characterization with the use of robotics, which replaces manual sampling; study of the change of SAG mill linings with robotic techniques at Minera Los Pelambres, inspection of structures with submersible robotic techniques at Puerto Chungo and the use of drones in topographic control at Minera Los Pelambres and Centinela. EXPECTED BENEFITS: Reduce exposure to risk in maintenance and condition monitoring activities. Increase equipment availability. KEY PERFORMANCE INDICATORS: Availability of equipment [%]. Safety incidents [#]. Maintenance and Monitoring Times [Hours]. EXTRACTION OF MINERALS AREA OF INTEREST: Automation and Robotics CHALLENGE DESCRIPTION: Maintenance and condition monitoring activities carried out manually expose workers who perform them to risk of accidents. Additionally, these tasks imply a high cost due to the mass participation of people and the long time required to be completed, which does not necessarily ensure the quality of their execution. EXPLORATION / PROJECTS Exposure to risk in specific maintenance tasks and monitoring of conditions. HYDROMETALLURGY CONCENTRATOR 02 AR.

17 Desafío MANAGEMENT INVOLVED: Mine Desafíos 2018 / Página 16/ SCOPE OF THE CHALLENGE: Mining equipment and processes Better automatic and remote control models Consider from the modification of processes and safety practices to the automation and robotics of processes, among others. BACKGROUND INFORMATION - PREVIOUS SOLUTION EFFORTS: There is a pre-cutting drilling remote operation initiative. EXPECTED BENEFITS: Reduce safety incidents. Increase productivity. KEY PERFORMANCE INDICATORS: Safety incidents [#] Mine equipment use [%] EXTRACTION OF MINERALS AREA OF INTEREST: Automation and Robotics CHALLENGE DESCRIPTION: The aim is to reduce the risk to which workers are exposed when performing repetitive and dangerous tasks in the mine operation. Currently, there is a low level of automation and robotics in the mine activities, as these are complex tasks and noncontinuous processes. The main focuses of automation, robotics and remote operation are the processes of: drilling and blasting, loading and transport, movement of material in stockpile with bulldozers, drilling of pre-cut near the rock mass, among others. EXPLORATION / PROJECTS Automation and robotics in specific stages of the production process. HYDROMETALLURGY CONCENTRATOR 03 AR.

18 Desafío MANAGEMENT INVOLVED: Explorations Desafíos 2018 / Página 17/ SCOPE OF THE CHALLENGE: Monitoring and drilling technologies. BACKGROUND INFORMATION - PREVIOUS SOLUTION EFFORTS: No information available. EXPECTED BENEFITS: Reduce drilling times. KEY PERFORMANCE INDICATORS: Drilling efficiency [m/hours]. EXTRACTION OF MINERALS AREA OF INTEREST: Automation and Robotics CHALLENGE DESCRIPTION: Currently, drilling campaigns tend to be long lasting, with high investment, high risk exposure and low certainty of success. From this challenge, the implementation of new technologies and techniques is expected to optimize the process and reduce the duration of the drilling campaigns. Solutions such as directional or continuous drilling are being considered and the environmental impact of this process is expected to be minimized. EXPLORATION / PROJECTS Technologies and techniques to make exploration drilling more efficient. HYDROMETALLURGY CONCENTRATOR 04 AR.

19 Desafío MANAGEMENT INVOLVED: Mine Desafíos 2018 / Página 18/ SCOPE OF THE CHALLENGE: Drilling and blasting process. Monitoring and control of drilling activities. Integration of rock mass characteristics into the drilling and blasting planning process. BACKGROUND INFORMATION - PREVIOUS SOLUTION EFFORTS: The technological status of Antofagasta Minerals for this challenge includes the use of Vulcan for 3D-4D modeling, Traditional Labs for characterization and BlastPlan & BlastLogic for Blasting. Los Pelambres is planned to implement an automated pilot on small diameter drills. EXPECTED BENEFITS: Improve the planning of the drilling process. Optimize granulometry. Optimize explosive consumption. Minimize impact to the rock mass. KEY PERFORMANCE INDICATORS: Granulometry [mm] Compliance with drilling plan (%). EXTRACTION OF MINERALS AREA OF INTEREST: Automation and Robotics CHALLENGE DESCRIPTION: This challenge includes ensuring compliance with the drilling plan through more effective monitoring and control of the process, in terms of time, team coordination, integration of geotechnical/geological variables and operational conditions (e.g., material quantity being blasted on the loading front). It is expected to achieve an optimum ratio between the consumption of explosives, granulometry, material blasted on the front and damage to the rock mass, optimally planning the drilling and blasting processes, ideally integrating all the information from the mass and the variables that affect the desired result. EXPLORATION / PROJECTS Difficulty in scheduling drilling and blasting processes in an optimal and coordinated manner. HYDROMETALLURGY CONCENTRATOR 05 AR.

20 Desafío MANAGEMENT INVOLVED: Mine Desafíos 2018 / Página 19/ SCOPE OF THE CHALLENGE: Mine extraction. Consider from the modification of processes and safety practices to the automation and robotics of processes, among others. BACKGROUND INFORMATION - PREVIOUS SOLUTION EFFORTS: There is an initiative to implement remote operation of small diameter drills. In addition, blasting options using robotic techniques are being studied. EXPECTED BENEFITS: Reduce incidents or accidents related to rockfall and land failure. Decrease the risk exposure of workers. KEY PERFORMANCE INDICATORS: Safety incidents due to rockfall [#] Operation stopped due to incidents [#] or [Hours] EXTRACTION OF MINERALS AREA OF INTEREST: Automation and Robotics CHALLENGE DESCRIPTION: One of the main risks to workers inside the mine is rockfall during activities in the vicinity of the rock mass, a situation that could result in a fatal accident. As an example, geological tasks, topographical control or drilling activities are included. This problem is particularly important in small diameter drilling, as the equipment works near the slope and in the mine bank area. A robust and reliable solution that automates the process is required. EXPLORATION / PROJECTS Exposure to the risk of rock fall or ground failure due to activities near the rock mass. HYDROMETALLURGY CONCENTRATOR 06 AR.

21 Desafío MANAGEMENT INVOLVED: Operations Desafíos 2018 / Página 20/ SCOPE OF THE CHALLENGE: All types of pipelines used in the mining process. Interior and exterior inspection of pipelines. BACKGROUND INFORMATION - PREVIOUS SOLUTION EFFORTS: Robots have been used that can inspect the pipelines internally, but they have the limitation that this must be done without fluid inside. Mostly this monitoring is done visually. The pipelines have pressure measurement, but this variable does not allow predicting events, but detecting them when they have already occurred. EXPECTED BENEFITS: Avoid spills. Reduce monitoring costs. Reduce exposure to risk. KEY PERFORMANCE INDICATORS: Environmental incidents from pipeline spills [#] Monitoring Costs [USD/month] Operation stopped due to environmental incidents [#] or [Hours] EXTRACTION OF MINERALS AREA OF INTEREST: Automation and Robotics CHALLENGE DESCRIPTION: Mining uses a large number and variety of pipelines (tailings, concentrate, water pumping, acid solution pipelines, etc.), where today there are no automatic systems that allow online monitoring of the external and, mainly, internal conditions of the pipeline in operation. Monitoring should predict a condition that requires maintenance and/or detect potential ruptures, which can lead to critical fluid spills, such as concentrate or tailings. EXPLORATION / PROJECTS Improve monitoring of the condition of tailings pipeline and concentrate pipelines by capturing data online. HYDROMETALLURGY CONCENTRATOR 07 AR.

22 Desafío MANAGEMENT INVOLVED: Safety and Occupational Health Desafíos 2018 / Página 21/ SCOPE OF THE CHALLENGE: The whole process, from mine to port. Control of own personnel and contractors, also considering vehicles, equipment, transport buses and tools, among others. Implementation of new technologies, connectivity, the Internet of things (IoT) and real-time information. BACKGROUND INFORMATION - PREVIOUS SOLUTION EFFORTS: There is an initiative to test a system for controlling personnel in the jobsite (census by area). EXPECTED BENEFITS: Reduce health and safety incidents. KEY PERFORMANCE INDICATORS: Workers' safety incidents [#] EXTRACTION OF MINERALS AREA OF INTEREST: Automation and Robotics CHALLENGE DESCRIPTION: This challenge seeks to be clear about the location of workers in real time in case of an emergency and to alert in case of unauthorized entrance into critical areas. Proposals are expected for technologies that allow, for example, georeferencing all workers and facilitating the coordination of actions in case of emergencies, such as fires, earthquakes and the release of harmful gases, among others. In addition, it is expected to have better access control for own personnel and contractors in the areas of greater risk at the jobsites (powder magazines, electrical rooms, warehouse of dangerous substances, etc.), to prevent accidents, damage and thefts. EXPLORATION / PROJECTS Improve knowledge of the location and access control of workers. HYDROMETALLURGY CONCENTRATOR 09 AR.

23 Processing of Low Grade Minerals The constant decrease in mineral grades over time has challenged the industry, which has been forced to optimize its processes, which are increasingly complex and require high volumes of material to be processed to maintain plant productivity. Antofagasta Minerals has identified this problem and is looking for new technologies and methods that allow the processing of low grade primary sulfide ores. Desafíos 2018 / Página 22/

24 Challenges Low Grade Minerals ( imagen ) BL.02 Improve traceability of mineral characteristics throughout the production process. ( imagen ) BL.03 Optimum allocation of ore delivered to plant. Desafíos 2018 / Página 23/

25 Desafío AREA OF INTEREST: Low Grade Minerals MANAGEMENT INVOLVED: Operations Desafíos 2018 / Página 24/ SCOPE OF THE CHALLENGE: From extraction to mineral processing. Analysis and management of currently available data and solutions for capturing other variables on-line. BACKGROUND INFORMATION - PREVIOUS SOLUTION EFFORTS: A project is in progress that expects to measure the ph of the ore online to adjust the operating parameters in the flotation. Metso's SmartTag Ore Tracking technology is being tested at Minera Centinela. In addition, there are some technologies being studied for online sampling and analysis. EXPECTED BENEFITS: Optimize costs by defining parameters and use of agents at each stage. Increase Production. KEY PERFORMANCE INDICATORS: Acid consumption [Lts] Consumption of flocculant [Lts] Energy consumption in the comminution process [kw/h] HYDROMETALLURGY CHALLENGE DESCRIPTION: The possibility of obtaining information on the ore in process at different points along the value chain would allow an online adjustment of optimum parameters for each type of material, based on its grade, hardness and other conditions. For example, having online ore characterization entering from the mine to the Crushing stage could make ore processing of both sulfide and oxide lines more efficient. EXTRACTION OF MINERALS Improve traceability of mineral characteristics throughout the production process. CONCENTRATOR 02 EXPLORATION / PROJECTS BL.

26 Desafío CHALLENGE DESCRIPTION: There is an opportunity, in mining operations with more than one processing method (hydrometallurgy, concentrator, ROM), to improve the pre-selection of the ore allocated to each one making it more efficient. In addition, pre-selection techniques can be applied to preconcentrate the ore, improving the quality of the ore being sent for processing (grade, hardness, or other relevant variables), making the use of installed capacity more efficient. AREA OF INTEREST: Low Grade Minerals MANAGEMENT INVOLVED: Operations Desafíos 2018 / Página 25/ SCOPE OF THE CHALLENGE: It applies to the process between crushing and grinding. Solutions can range from data identification and integration to operational process modifica BACKGROUND INFORMATION - PREVIOUS SOLUTION EFFORTS: Technological alternatives of Oresorting and Size sensors are being evaluated. EXPECTED BENEFITS: Improve recovery in leaching. Improve recovery in flotation. KEY PERFORMANCE INDICATORS: Recovery (%) EXTRACTION OF MINERALS Optimum allocation of ore delivered to plant. HYDROMETALLURGY CONCENTRATOR 03 EXPLORATION / PROJECTS BL.

27 Movement of Large Volumes of Material Mineral grades in exploited deposits have been declining over time, which has forced companies to extract large volumes of minerals to maintain the levels of fine production generating impacts to the productive cycle as well as to the environment and communities. In addition, the existence of satellite mineral deposits (Minera Antucoya and Minera Centinela) and the idle capacity of the plant, motivate the search for increasingly economic alternatives for transporting ore, which allow for making mass operations in low grade ore movement sustainable and competitive. Desafíos 2018 / Página 26/

28 Challenges Movement of Large Volumes of Material ( imagen ) MM.02 Higher performance and efficiency in the loading and transport process, in terms of cycle times and performance. ( imagen ) MM.04 Optimization of equipment lifespan and maintainability through new materials. Desafíos 2018 / Página 27/

29 Desafío MANAGEMENT INVOLVED: Mine Desafíos 2018 / Página 28/ SCOPE OF THE CHALLENGE: Loading and Transport Process Dispatch system. Monitoring of road conditions. Mine equipment condition monitoring. BACKGROUND INFORMATION - PREVIOUS SOLUTION EFFORTS: Today, dispatch systems with dynamic truck allocation are used, but their use is not optimum: FMS (Dispatch & Jisgaw) for Dispatch, JPS and MS Excel. Currently there are sensors on shovels and trucks (weight meters). EXPECTED BENEFITS: Reduce cycle times. Increase performance. Increase the lifespan of trucks and some of their components. Maximize truck fleet use and capacity and reduce maintenance costs. KEY PERFORMANCE INDICATORS: Cycle time [Hours] Lifespan of trucks [Hours] Performance [ton/h] EXTRACTION OF MINERALS AREA OF INTEREST: Movement of Large Volumes of Material CHALLENGE DESCRIPTION: Greater performance and efficiency is being sought in the loading and transportation process, considering improvements in several areas such as: coordination with dispatch; short-term mining planning and distribution of equipment at the mine; the capture and integration of information on circuits, road conditions and monitoring of equipment condition; and the time spent on maintenance of equipment and its components, among others. Some aspects that affect the performance of loading and transport equipment are the poor use of the dynamic allocation system in dispatch, the variability of the tonnage loaded on trucks, the condition of mine roads and the generation of bottlenecks and congestion, especially in narrow ramps and sectors that prevent two trucks from moving simultaneously in the opposite direction. EXPLORATION / PROJECTS Higher performance and efficiency in the loading and transport process, in terms of cycle times and performance, among othersos. HYDROMETALLURGY CONCENTRATOR 02 MM.

30 Desafío MANAGEMENT INVOLVED: Maintenance Desafíos 2018 / Página 29/ SCOPE OF THE CHALLENGE: All process equipment, from the mine to the port, particularly those that are key to the production process (shovels, primary crusher, SAG mill, etc.). Mainly new materials for components, equipment, protections, linings, maintenance tools, paints, among others. BACKGROUND INFORMATION - PREVIOUS SOLUTION EFFORTS: The designs and materials of grinding balls and SAG mill linings are constantly under evaluation. EXPECTED BENEFITS: Increase the life of equipment and components. Reduce frequency and/or duration of maintenance interventions. Reduce maintenance costs. KEY PERFORMANCE INDICATORS: MTBF [Hours] MTTR [Hors] Maintenance costs [USD/month] Component lifespan [Hours] EXTRACTION OF MINERALS AREA OF INTEREST: Movement of Large Volumes of Material CHALLENGE DESCRIPTION: Some mining processes have demanding conditions for the materiality of the equipment that compose them, such as: acidic environments, high levels of dust, abrasiveness, corrosion, among others, which affects the lifespan and availability of the equipment and its components. The aim is to find materials that increase the availability of equipment located in aggressive environments, simplify maintenance and/or reduce the frequency of maintenance. Examples of possible applications are: - Pumps under mill - Chutes lining - Crushing lines affected by abrasive material. EXPLORATION / PROJECTS Optimization of equipment lifespan and maintainability through new materials. HYDROMETALLURGY CONCENTRATOR 04 MM.

31 Tailings Dam Given the reality of new deposits, where more and more material must be moved to reach planned production levels of fines, the quantity of mining waste has also been increasing. Antofagasta Minerals seeks to actively manage or mitigate its potential environmental impacts, particularly in relation to its waste, in line with a more sustainable mining industry. Desafíos 2018 / Página 30/

32 Challenges Tailings Dams ( imagen ) DR.01 Reduction in the volume of tailings, increasing the percentage of solids and water reclaiming. ( imagen ) DR.02 High levels of fine material and moisture in rejected spent leached ore. Desafíos 2018 / Página 31/

33 Desafío MANAGEMENT INVOLVED: Operations / Environment Desafíos 2018 / Página 32/ SCOPE OF THE CHALLENGE: Process of thickening, transport and deposit of tailings. BACKGROUND INFORMATION - PREVIOUS SOLUTION EFFORTS: A project exists in the context of the national High Grade program, which aims to develop an on-line tailings stability monitoring system for Minera Los Pelambres. In addition, a predictive model is being tested to optimize the operation of the thickeners at Minera Centinela. EXPECTED BENEFITS: Increase water reclaiming. Reduce the volume of tailings/waste. Increase throughput in the thickening process. KEY PERFORMANCE INDICATORS: Content of solids in tailings [%] Water reclaiming [%] EXTRACTION OF MINERALS AREA OF INTEREST: Tailings Dam CHALLENGE DESCRIPTION: The challenge is to obtain the optimum conditions for the tailings, in terms of density and deposition rate, to optimize their transport, use of space and water reclaiming. This challenge also includes monitoring the physical and chemical stability of tailings dams in order to provide quality, real-time information to strengthen operational management and reduce risk perception by communities. EXPLORATION / PROJECTS Reduction in the volume of tailings, increasing the percentage of solids and water reclaiming. HYDROMETALLURGY CONCENTRATOR 01 DR.

34 Desafío MANAGEMENT INVOLVED: Plant Management Hydrometallurgy Desafíos 2018 / Página 33/ SCOPE OF THE CHALLENGE: Spent leached ore rejection process, considering from the rotary shovel to its depositation. BACKGROUND INFORMATION - PREVIOUS SOLUTION EFFORTS: The solutions evaluated have been more costly than the current situation. EXPECTED BENEFITS: Reduce the risk of collapse of rejection spent leached ore. Reduce the volume of rejection spent leached ore. KEY PERFORMANCE INDICATORS: Shutdown of operation due to environmental incidents [#] or [Hours]. Moisture in rejection spent leached ore [%] EXTRACTION OF MINERALS AREA OF INTEREST: Tailings Dam CHALLENGE DESCRIPTION: The presence of fines and moisture in the spent leached ore causes the material to flow, generating a deficient use of the authorized spaces and often requiring new environmental permits to expand the depositation areas. It is known that if there were less moisture in the material, this risk would decrease, and the volume used for the rejection of mining process waste could decrease. EXPLORATION / PROJECTS High levels of fine material and moisture in rejected spent leached ore. HYDROMETALLURGY CONCENTRATOR 02 DR.

35 Energy Efficiency and Use of Renewable Energy Energy expenditure represents approximately 30% of the Mining Group's operating costs, considering fuel and electricity consumption. Reducing energy use is a challenge for the company, which believes that sustainability is an integral part of its decisions in the life cycle of its business, continuously searching for clean energy sources for its processes. Desafíos 2018 / Página 34/

36 Challenges Energy Efficiency and Use of Renewable Energies ( imagen ) EE.01 Increased efficiency in diesel consumption. ( imagen ) EE.02 Lack of integrated data to define the best trade-off between optimum energy consumption and throughput. ( imagen ) EE.03 High levels of energy consumption in the most demanding processes. Desafíos 2018 / Página 35/

37 EXPLORATION / PROJECTS EXTRACTION OF MINERALS HYDROMETALLURGY CONCENTRATOR Desafío EE.01 Increased efficiency in diesel consumption. AREA OF INTEREST: Energy Efficiency and Use of Renewable Energies MANAGEMENT INVOLVED: Operational Excellence CHALLENGE DESCRIPTION: The second highest cost component in energy consumption is fuel. This is especially true in mining processes: drilling, loading and transportation, where trucks are the main consumers. Reducing energy consumption is a constant challenge for companies. Any solution that avoids or optimizes consumption for the existing fleet, such as better technologies, materials, components, management, etc., is of interest. SCOPE OF THE CHALLENGE: All processes that consume fuel (mining equipment and boilers). It does not include replacement of fleet or equipment. BACKGROUND INFORMATION - PREVIOUS SOLUTION EFFORTS: There are currently initiatives in this direction, such as the use of emulsifiers that allow reducing fuel consumption in trucks and the use of LNG in boilers. EXPECTED BENEFITS: Reduce fuel consumption, particularly diesel. KEY PERFORMANCE INDICATORS: Diesel consumption expenditure [USD] or [Lts] Desafíos 2018 / Página 36/

38 EXPLORATION / PROJECTS EXTRACTION OF MINERALS HYDROMETALLURGY CONCENTRATOR Desafío EE.03 High levels of energy consumption in the most demanding processes. AREA OF INTEREST: Energy Efficiency and Use of Renewable Energies MANAGEMENT INVOLVED: Operational Excellence CHALLENGE DESCRIPTION: The most demanding processes with respect to electricity consumption are grinding (SAG Mill), Electrowinning and seawater pumping (SIAM). Performing these processes more efficiently with respect to energy consumption is a constant challenge for companies. Any solution, such as better technologies, materials, components, systems, alternative energy sources, among others, that optimizes the consumption of existing equipment will be of interest. The aim is to optimize processes and find clean energy sources at a competitive price for specific equipment. SCOPE OF THE CHALLENGE: All mine and production processes with high levels of electricity consumption. Consider the mode of operation of the above processes. BACKGROUND INFORMATION - PREVIOUS SOLUTION EFFORTS: Currently, Minera Los Pelambres sources almost 50% of its energy demand with renewable / non-conventional energy. EXPECTED BENEFITS: Reduce energy costs. Increase energy from renewable / non-conventional sources. KEY PERFORMANCE INDICATORS: Energy consumption [kw/h] Desafíos 2018 / Página 37/

39 Impact on Social Contribution on Communities Antofagasta Minerals is making progress in its relationship with a long-term vision and through effective, participatory and transparent dialogue processes with the different stakeholders in the territories where it operates. Desafíos 2018 / Página 38/

40 Challenges Impact on Social Contribution on Communities ( imagen ) IC.01 Generate new ways to mitigate the environmental and social impact resulting from the mining operation. IC.02 Facilitate diversity within the work teams, considering gender inclusion and equity. Desafíos 2018 / Página 39/

41 Desafío MANAGEMENT INVOLVED: Corporate Affairs and Sustainability Desafíos 2018 / Página 40/ SCOPE OF THE CHALLENGE: Predictive technologies to control environmental and social variables. Mechanisms of analysis and management of perceptions. Organizational solutions, projects, concepts of relationship with communities, among others. BACKGROUND INFORMATION - PREVIOUS SOLUTION EFFORTS: The Somos Choapa program is in operation, an initiative of the municipalities of Salamanca, Illapel, Canela and Los Vilos, together with Minera Los Pelambres, to contribute to the sustainable development of the territory and the well-being of its inhabitants. EXPECTED BENEFITS: Improve relationships with communities. Reduce environmental impact. KEY PERFORMANCE INDICATORS: Number of community complaints [#] Operation stopped due to community problems [#] or [Hours] Value generated to the communities [USD] EXTRACTION OF MINERALS AREA OF INTEREST: Impact on Social Contribution on Communities CHALLENGE DESCRIPTION: The nature of mining processes by generating mass movement of materials, people and inputs affects nearby communities. These effects have been satisfactorily mitigated in regulatory terms, but if mining is to be sustainable in the long term, they are not enough. That is why innovative solutions are being sought to move towards "green mining". EXPLORATION / PROJECTS Generate new ways to mitigate the environmental and social impact resulting from the mining operation. HYDROMETALLURGY CONCENTRATOR 01 IC.

42 Desafío MANAGEMENT INVOLVED: Human Resources Desafíos 2018 / Página 41/ SCOPE OF THE CHALLENGE: Contract, inclusion and non-discrimination policies. Organizational structure and practices. Generate accessible jobs. Work accessibility standards in operations. Technologies that facilitate inclusion. BACKGROUND INFORMATION - PREVIOUS SOLUTION EFFORTS: Currently, the percentage of women in the workforce of the Antofagasta Minerals Group is around 10%. EXPECTED BENEFITS: Increase diversity in the workforce. Comply with the Labor Inclusion Law. KEY PERFORMANCE INDICATORS: Compliance with the Labor Inclusion Law [%] Women in the organization [%] Retention of employees [%] EXTRACTION OF MINERALS AREA OF INTEREST: Impact on Social Contribution on Communities CHALLENGE DESCRIPTION: The complex nature of the mining process, the remote locations of mining sites, and the historical image of the industry have contributed to the low levels of diversity of the work teams, with respect to inclusion and gender equity. It has been demonstrated that diversity and inclusion show important benefits in organizations and society, both productive and cultural, motivating creativity and innovation. Antofagasta Minerals seeks to incorporate inclusive organizational processes to reduce the natural gap of the industry, facilitating integration. EXPLORATION / PROJECTS Facilitate diversity within the work teams, considering gender inclusion and equity. HYDROMETALLURGY CONCENTRATOR 02 IC.

43 Challenges of other Areas of Interest There are challenges related to the well-being and development of our workers in matters of safety, competences and training. Desafíos 2018 / Página 42/

44 Challenges Other Areas of Interest DA.01 Ensuring comprehensive emergency management and quick response to contingencies. DA.02 Greater autonomy of exploration teams in greenfield campaigns in remote areas. DA.03 Construction and management of camps in areas of difficult access. DA.04 Ensuring learning in operational training for staff. DA.05 Difficulty in capturing and reusing knowledge generated in critical areas of mining processes. Desafíos 2018 / Página 43/

45 Desafío MANAGEMENT INVOLVED: Safety and Occupational Health Desafíos 2018 / Página 44/ SCOPE OF THE CHALLENGE: In all areas of the Companies, including Exploration. BACKGROUND INFORMATION - PREVIOUS SOLUTION EFFORTS: No information available EXPECTED BENEFITS: Reduce the emergency response times. Maintain all information available in a centralized manner, in real time. KEY PERFORMANCE INDICATORS: Emergency response times [Hours] EXTRACTION OF MINERALS AREA OF INTEREST: Challenges of other Areas of Interest CHALLENGE DESCRIPTION: The aim is to seek solutions based on new technologies that can ensure comprehensive emergency management, reacting quickly, efficiently and effectively to contingencies such as fires, earthquakes, chemical leaks and spills, both inside and outside the operations facilities (Protected Areas). Devices such as smoke detectors or leak detectors are now in place, which immediately alert in case of an emergency, but which are not centrally connected, so that emergency teams can react early. EXPLORATION / PROJECTS Ensuring comprehensive emergency management and quick response to contingencies. HYDROMETALLURGY CONCENTRATOR 01 DA.

46 Desafío MANAGEMENT INVOLVED: Explorations Desafíos 2018 / Página 45/ SCOPE OF THE CHALLENGE: Monitoring and communication technologies. Exploration equipment. It should be assumed that connections to relevant networks (satellite, GPS, etc.) will be available. BACKGROUND INFORMATION - PREVIOUS SOLUTION EFFORTS: GPS with spot functionality and basic functionality is used. EXPECTED BENEFITS: Reduce the weight of the equipment. Optimize the functional characteristics of the equipment. Ensure constant monitoring of the location and health condition of human teams at site. KEY PERFORMANCE INDICATORS: Communications coverage [Km2] Emergency detection time [Hours] EXTRACTION OF MINERALS AREA OF INTEREST: Challenges of other Areas of Interest CHALLENGE DESCRIPTION: The exploration area requires drilling campaigns in remote areas often without connectivity alternatives, with extreme weather conditions and exposed to risks that are difficult to control (landslides, avalanches, road blockages, etc.). With the objective of increasing the safety of people, but also of equipment, extending their autonomy and facilitating their work, we are looking for emergency equipment, communication, camping, etc. and, additionally, technologies for monitoring the location and vital signs of equipment at site. EXPLORATION / PROJECTS Greater autonomy of exploration teams in greenfield campaigns in remote areas. HYDROMETALLURGY CONCENTRATOR 02 DA.

47 Desafío MANAGEMENT INVOLVED: Explorations / Human Resources Desafíos 2018 / Página 46/ SCOPE OF THE CHALLENGE: Temporary camps for approx. 90 persons. Permanent camps approx persons Building technologies. Installation and technologies of utilities. BACKGROUND INFORMATION - PREVIOUS SOLUTION EFFORTS: Use of solar energy and modular camps. EXPECTED BENEFITS: Increase the effectiveness and efficiency of construction (cost and time). Optimize camp management. KEY PERFORMANCE INDICATORS: Construction times for camps and access to basic utilities [days] Camp construction costs [USD] Camp management service cost [USD] EXTRACTION OF MINERALS AREA OF INTEREST: Challenges of other Areas of Interest CHALLENGE DESCRIPTION: The construction and management of camps in remote areas is necessary for mining activity, particularly in the case of exploration. Their construction is often complex and costly, due to the difficult access to the areas under study and the lack of utilities such as water, energy and gas. In addition, there is a potential for optimizing the management of established camp services, which present difficulties due to the actual condition of their location. New solutions are sought to optimize the installation and management of camp services. The solutions for health services and accommodation control are of particular interest. EXPLORATION / PROJECTS Construction and management of camps in areas of difficult access. HYDROMETALLURGY CONCENTRATOR 03 DA.

48 Desafío AREA OF INTEREST: Challenges of other Areas of Interest MANAGEMENT INVOLVED: Safety and Occupational Health / Human Resources Desafíos 2018 / Página 47/ SCOPE OF THE CHALLENGE: Simulation Technologies (e.g. VR). Evaluation methods, concepts of training and instruction. BACKGROUND INFORMATION - PREVIOUS SOLUTION EFFORTS: Initiative to implement a mobile application for learning through games and entertainment. 8-hour induction via 360 virtual reality (MPL) EXPECTED BENEFITS: Increase the effectiveness and control of training. Ensure the critical capabilities of workers. KEY PERFORMANCE INDICATORS: Reduce training cost [USD] EXTRACTION OF MINERALS CHALLENGE DESCRIPTION: Despite constant efforts to train staff, it is difficult to measure their effectiveness. New methods and solutions are being sought for training and gap assessment that will allow for greater effectiveness and lower costs. New technologies should be considered, such as augmented reality, simulations, e-learning, among others, and standardization among the different mining jobsites. EXPLORATION / PROJECTS Ensuring learning in operational training for staff. HYDROMETALLURGY CONCENTRATOR 04 DA.

49 Desafío MANAGEMENT INVOLVED: Human Resources Operations Maintenance Desafíos 2018 / Página 48/ SCOPE OF THE CHALLENGE: Critical stages of the production process, expert knowledge, emphasis on maintenance and production planning, among others. Knowledge management technologies. BACKGROUND INFORMATION - PREVIOUS SOLUTION EFFORTS: Intention to build a knowledge sharing network platform Antofagasta Minerals. EXPECTED BENEFITS: Standardize processes and improve practices. Incorporate lessons learned. Generate greater efficiency by applying knowledge. Optimize the learning curve of workers. KEY PERFORMANCE INDICATORS: Number of operational incidents [#] EXTRACTION OF MINERALS AREA OF INTEREST: Challenges of other Areas of Interest CHALLENGE DESCRIPTION: Organizational changes in the industry sometimes lead to a loss of specific knowledge relevant to operation and maintenance tasks. There is also a low level of systematization in the updating of relevant documentation, such as drawings, engineering designs, implementation of technologies, materials, equipment, etc. This can lead to errors that have a significant impact on the organization. Technological and management solutions are expected to facilitate the systematization of the capture, storage and reuse of critical knowledge. EXPLORATION / PROJECTS Difficulty in capturing and reusing knowledge generated in critical areas of mining processes. HYDROMETALLURGY CONCENTRATOR 05 DA.

50 How to collaborate with the challenges? The challenges presented are part of a different model of innovation, based on collaboration between organizations. Therefore, they do not involve an open/traditional bidding process, because bidders have more freedom to offer innovative approaches. We invite organizations to address these challenges by visiting the InnovaMinerals website at If you have new ideas for other problems, including "Areas of Interest" not described in this document, you can also submit them! Share your solution by clicking on this button Cómo colaborar?/ Página 49/

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