Project Corridor A New Union for mining the future. May 17th 2016, Santiago, Chile

Transcription

1 Project Corridor A New Union for mining the future May 17th 2016, Santiago, Chile 1

2 Context Teck and Goldcorp have formed a 50/50 joint venture by combining the Relincho and el Morro projects. We are committed to build a strong and beneficial relationship with our stakeholders and community The benefits of the combined project include: Environmental footprint significantly reduced Improve benefits for the Community Longer mine life Reduced capex Better returns compared with stand alone projects 2

3 Project location Créditos de capas de servicios: Copyright 2014 Esri 3

4 Operational Plan Mining at El Morro and Relincho areas A conveyor belt system will transport the ore from El Morro area to the concentrator plant located at Relincho area. Common infrastructure for Project Corridor 4

5 Improved benefits for the Community Longer mine life: Life of the mine 32 years, with expansion potential Longer term employment More economic growth opportunities Robust community investment programs El Morro Looking Northeast (4,000 m elevation) 5

6 Environmental benefits Environmental footprint significantly reduced: Tailings facility relocated from the Huasco river watershed (agricole relevance) to drier Algarrobal watershed Single Mill, port and desalination plant. Combined services infrastructure: one road, pipelines and energy Desalinated sea water for the process Relincho Looking East (2,000 m elevation) 6

7 Project Facilities (before Project Corridor) Pipelines Transmision line Port Pipelines: Wster and Concentrate Port Desalt Plan Desalt Plan Energy Tailing dam El Morro Area Tailing dam Energy Pipelines: Water Relincho Area Pit and Mill Pit and Mill Fuente: Ubicación de Proyecto , , 4679ft. Google Earth. 8 de febrero de de abril de

8 Project Facilities (after Project Corridor) Pipelines Transmision lines Conveyor belt and combined service infrastructure Road Desalt plant Port Tailing dam Energy Pipeline: water Pit and Mill Conveyor belt and services Pit Fuente: Ubicación de Proyecto , , 4679ft. Google Earth. 8 de febrero de de abril de

9 Capital Smart: Phased Development Phase 1a Initial production of Relincho Ore Low cost to first ore; high grade, low stripp starter pit Initial mill throughput approximately 94 ktpd Phase 1b Transition to El Morro Ores Transition to higher grade El Morro ore Mill throughput of approximately 116 ktpd due to softer ore Option to blend ores and expand throughput Phase 2 Transition to Relincho Ores Transition back to Relincho ore once El Morro is depleted Potential expansion to a mill throughput of 188 ktpd Phase 1 development concept is a single mill line (94 to 116 ktpd) which generates higher metal production than either stand alone project Average production is tonnes of copper and oounces of gold per year over first 10 years of operation Note: Conceptual based on preliminary design from the PEA 9

10 Capital Smart Separate Projects 1 Combined Project 2 El Morro: US$3.9B Relincho: US$4.5B Total Capital: US$8.4B Construction US$3.0B - US$3.5B 3 Operating Years 1-3 Reduced scope and improved capital efficiency through common infrastructure Opera(ng cash flow in early years offsets total development costs More efficient capital deployment 1. Capital expenditure forecasts for El Morro and Relincho in 2011 and 2013 dollars, respectively, based on Feasibility Studies (February 2012) for El Morro and Relincho (December 2013) 2. Conceptual based on preliminary design and estimates from the Preliminary Economic Assessment 3. Capital range shown in 2014 dollars on a non-escalated basis 10

11 Project Topography Huasco Pit, Mill, Tailings facilities Pit Eleva(on (m) 7x Ver(cal Exaggera(on Vallenar Conveyor 90km 40km Service Layer Credits: Copyright 2014 Esri 11

12 Project Energy The total es(mated average power consump(on for each phase: o Phase 1 (year 1 to 3): 150 MW o Phase 2 (year 4 to 16): 145 MW (conveyor system potenbal regen: 16 to 4 MW) o Phase 3 (year 17 to 32): 290 MW Renewable supply: legal %... Transmission development and Project Corridor o Sources availability o Cost (stability, transmission fee)