Roadmap AltaLey Mineria
Roadmap AltaLey Mineria
Roadmap AltaLey Mineria
to innovation
Mining technology roadmap 2035
fundamental to
taken into account, certain fundamental questions and 2015. It will
be hard to expand
arise: Will copper continue being the engine of current production
the Chilean economy? How long can it continue by over 40% in the
playing that role? Does the leap to development next 25 years
economic growth in
depend on this mineral?
as fundamental to
an end in 2015.
6.000 6.000
5.000 5.000
Chilean Production
Thousands of MT
Thousands of MT
4.000 4.000 24 years,+ 539,000 MT
2 years, +499,000 MT
3.000 3.000 6 years, +532,000 TM
3 years,+ 556,000 MT
2.000 2.000 1 years, +627,000 MT
Chilean Production 2 years, +571,000 MT
1.000 1.000 1 years, +704,000 MT
Average 1950-1990 4 years, + 513,000 MT
0 0
1 years, + 508,000 MT
1950 1958 1966 1974 1982 1990 1998 2006 2014 Average 1991-2014 1950 1958 1966 1974 1982 1990 1998 2006 2014 10 years,+ 337,000 MT
Source: compiled by authors based on Cochilco data. Source: compiled by authors based on Cochilco data.
6 / Mining technology roadmap 2035 alta ley alta ley Mining technology roadmap 2035 / 7
Copper represents 55% of the country’s
exports (and foreign currency generated) and
is the second most important source of fiscal
revenues. In addition, the importance of Chilean
copper on a global level and as a percentage of
exports has also risen significantly (see Box 3).
box 2: CHILE’S
RELEVANCE IN THE
GLOBAL COPPER MARKET
GRAPH/3 GRAPH/4
2014
Chilean participation in Chilean share 1994
2004
25,9%
40%
35%
30% Source: compiled by authors based on data from the US Geological Service (USGS Mineral Commodity Summaries)
25%
Chile in Global
20% production FIGURE/1
15% Comparison between China
10%
Average 1950-1990
and Chile: Population, GDP
0%
and copper reserves
1950 1958 1966 1974 1982 1990 1998 2006 2014 Average 1991-2014
Population / Million people GDP / Million US$ Copper Reserves / % global
Source: compiled by authors based on Cochilco data. China 1.357 China 9.240 China 4%
Chile 17,6 Chile 227 Chile 30%
Source: compiled by authors based on data from the Word Bank and the US Geological Service (USGS)
10 / Mining technology roadmap 2035 alta ley alta ley Mining technology roadmap 2035 / 11
01 COPPER’S ROLE IN THE CHILEAN ECONOMY
The graph shows the change in the The green area shows the percentage
scale of copper exports after 2004, of total exports of Chilean goods that
with an annual average of US$33.518 corresponds to copper, which has
billion, significantly higher than the always been higher than 50% since
average of US$2.628 billion in the years 2006. Meanwhile, the gray line shows
preceeding this period. The secondary the percentage of mining exports
axis shows the evolution of copper in general, which has represented
prices on the London Metals Exchange. an additional 7%-10% over recent
years and peaked at 66% in 2007.
45.000 100%
40.000 90%
35.000 80%
Percentage
US$ Million
30.000 70%
25.000 60%
20.000 50%
Value of Cu Exports 40% % X_CU in X_ Totals
15.000 Ref. Cu price % X_Mining
30%
10.000 (nominal LME) in X_totals
(US¢/IB) 20%
5.000 Average 1960-1974
Average 1975-1990 10%
Average 1975-1990
0 Average 1991-2014 0% Average 1991-2014
1960 1966 1972 1978 1984 1990 1996 2002 2008 2014 1960 1966 1972 1978 1984 1990 1996 2002 2008 2014
Source: compiled by authors based on Cochilco data. Source: compiled by authors based on Cochilco data.
14 / Mining technology roadmap 2035 alta ley alta ley Mining technology roadmap 2035 / 15
01 COPPER’S ROLE IN THE CHILEAN ECONOMY
GRAPH/7 35%
30%
Current Chilean copper production is close to
6 million metric tonnes (MT). Aging mines and
Copper’s share of fiscal 25%
declining ore grades mean that if important
revenues, 1995-2014 20%
15%
investments are not made, production will fall to 4
million MT in 2025. Given that Chile has 30% of global
10%
reserves the target has been set of maintaining its
5%
current 30% share of global copper production. This
0%
1995 1996 1999 2002 2005 2008 2011 2014 means raising production to 8 million MT by 2025.
Tremendous and varied technological challenges
will to be resolved to achieve this goal. The
Corporate Taxes GMP-10 Total Contribution
Contribution State Mining Companies
purpose of this TRM is to identify these challenges
for the copper mining industry through 2035.
Source: compiled by authors based on Cochilco data.
GRAPH/8 14.000
12.000
Evolution of copper’s
10.000
contribution to the 8.000
state 1995-2014 6.000
4.000
2.000
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01 COPPER’S ROLE IN THE CHILEAN ECONOMY
20 / Mining technology roadmap 2035 alta ley alta ley Mining technology roadmap 2035 / 21
Photograph: Codelco (El Teniente Plant)
02 ROADMAP
LOGIC AND
METHODOLOGY
02 ROADMAP LOGIC AND METHODOLOGY
consensus with
of the International Semiconductors Industry in
1992: it was global, highly influential when it came
to defining the industry’s collective vision and
created a reference for technological innovation
stakeholders regarding
and development in the sector (Phaal & Probert,
2009); (Schaller, 2004).
government has explicitly acknowledged that · Allowing and facilitating interaction between that decide to base their work on this type of updating and deepening the contents of a
for its industries “to be innovative and globally the private and public sectors to detect existing instrument face numerous complications in doing roadmap require careful consideration of the
competitive, it is essential that industry players bottlenecks and opportunities affecting so, to which a series of problems involving collective tools and processes needed. International
collaborate on common technology issues” existing and future investment problems. action are added when dealing with a roadmap for experiences show that these reasons and the
(Industry Canada, 2007a). an entire productive sector. existence of problems with collective action
· Interaction between the public and private make it highly convenient for there to be an
Following this concept, Industry Canada sectors through a technology roadmap allows A critical point for the success of this tool is its articulator and facilitator of the process of
implemented an official and specific initiative on knowledge to be produced that helps to reduce implementation. The most important factors to drafting, implementing and updating a roadmap.
the matter, which has since 1995 developed over future uncertainty, though without eliminating it. facilitate the fulfillment of what is proposed are: for
20 roadmaps on industries as diverse as aluminum This is considering that the core characteristic companies to have a clear business need, for there to METHODOLOGIES AND STAGES FOR
transformation, wireless technology, plastics, of future events is their uncertainty. be a desire to develop effective business processes, THE CONSTRUCTION OF A ROADMAP
printing and graphic communication, textiles, for the right people to be involved, and for there to be FOR CHILEAN MINING
aerospace components, integration of aircraft cabin · Playing an important role in driving innovation a commitment on the part of top leadership. For their The value of the Technology Roadmap for Chilean
management systems and digital media. and inducing cooperative progress in part, factors that hinder compliance are: an initiative mining lies not just in the results obtained,
research and development activities. To this surfeit, distraction from short term goals and the but also in the process of debate and reaching
There are also experiences in other countries. end, the technology roadmap articulates lack of sufficient information or available knowledge consensus with among a significant group of
According to Phaal & Probert (2009), a study by the necessary elements for focalizing and (Phaal et al., 2001). stakeholders regarding the common challenges
Cambridge University’s Institute for Manufacturing prioritizing future technology needs. that the industry faces.
(IfM) identified over 900 examples of road maps Despite these difficulties, experts agree that,
that had been drafted for a wide variety of The essential premise of a technology roadmap is beyond implementation, the exercise of drafting Thus, the Technology Roadmap fulfills different
sectors throughout the world, including energy, that the future can be built, in contrast to a passive a roadmap is of itself highly valuable as it internal and external functions:
transportation, materials, aerospace, electronics, attitude in which the future simply happens. manages to bring together industry and public · It generates consensus on the future
IT, manufacturing, construction, health, defense Therefore, the initial stage consists in reaching a sector representatives to debate and jointly outlook for mining on an internal copper
and basic science. consensus on a vision for the future and specifying identify challenges and opportunities, forging sector level, identifying technological
the objectives and dilemmas of a given sector, in collaborative relationships based on dialogue problems and challenges.
The following are a few examples of how this this case mining, over a 10-20-year period. and understanding (Bernal et al., 2009), (Collins · On an external level it provides the information
tool has been used specifically in the mining & Pincock, 2010), (García & Bray, 1997), (Industry to stimulate collaborative research in the
sector: Taking South Africa Mining to 2030 Thus it helps to create a referential framework Canada, 2007a), (Phaal et al., 2001). academic sector, technology institutes and
through Resourceful Collaboration, Roadmap for coordinating R&D activities among companies among suppliers and consulting firms.
for European Mining Regions and the US series in the sector, suppliers and also the academic Likewise, to take full advantage of the benefits that
of technology roadmaps Mining Industry of the scientific community. This allows a more efficient drafting a roadmap brings, it is fundamental that a The Technology Roadmap (TRM) contained in this
Future, all documented in the reference section allocation of R&D resources. permanent work dynamic be generated around it document was constructed over four consecutive
of this document. so a roadmapping culture can be developed. phases: i) forging and validation of the vision;
It should be noted that an analysis of international ii) identification of technological challenges and
As we can see, a technology roadmap can experiences also reveals the difficulty of successfully Keeping a roadmap alive is an important prioritizing core challenges; iii) workshops for
fulfill diverse roles on a productive sector level, implementing everything that is contained in a challenge and the only way to obtain the full drafting the Technology Roadmap; iv) validation of
including: roadmap (Industry Canada, 2007a). Even companies benefits of the exercise. Communicating, the Technology Roadmap.
26 / Mining technology roadmap 2035 Alta ley alta ley Mining technology roadmap 2035 / 27
02 ROADMAP LOGIC AND METHODOLOGY
28 / Mining technology roadmap 2035 Alta ley alta ley Mining technology roadmap 2035 / 29
Photograph Max Donoso (Atacama Iron Mine)
02 ROADMAP LOGIC AND METHODOLOGY
Hydrometallurgy
cooperation among actors to reach consensuses
Tailings
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02 ROADMAP LOGIC AND METHODOLOGY
70 3 1
Technical Challenge
2 work 1 work 1 simultaneous Interviews with groups with Prioritization
No. of workshops sessions session work session
lasting half a
key actors experts Workshop
and duration lasting lasting
one day one day day for 3 core
challenges
+90 63 1.600
Actors Work
Workshop hours
participants Institutions involved
No. of technical
groups per 4 4 3
workshop
34 / Mining technology roadmap 2035 Alta ley alta ley Mining technology roadmap 2035 / 35
02 ROADMAP LOGIC AND METHODOLOGY
ROADMAP VALIDATION
The results of each of the stages followed in the
construction of this Roadmap were validated by the
Board of the Alta Ley National Mining Program.
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02 ROADMAP LOGIC AND METHODOLOGY
THE CASE OF THE AMIRA COPPER aimed at fulfilling the objectives of are: (i) optimization of mine-to- 8. Preconditioning of rock to
2
Australian
TECHNOLOGY ROADMAP 2004 - 2006 the major industry players, and the Minerals Industry cathode operation; (ii) real time facilitate its fracture.
In 2003 the Australian Mineral Industries Roadmap contained in this document, Association. control of entire process; (iii) sharing 9. Improved sensor use (online)
Research Association, Amira2 and nine of which in addition to the above presents a information and knowledge. in flotation process.
the largest copper industry companies in national development strategy centered 10. Remote monitoring
the world decided to draft a technology on mining. · New technologies for mine of heap leaching.
roadmap to address the main challenges processes The R&D priorities related 11. Improved energy efficiency in
that they would face in the coming To appreciate the above, it is illustrative to this focal point are: (I) smart the movement of materials.
decade. The participating companies to review the Amira work mission, comminution (grinding); (ii) intelligent 12. Development of technologies for
included Codelco, Antofagasta Minerals, which commits it to “developing a ore extraction system; (iii) onsite the drying process (grinding).
Anglo American, BHP Billiton, CVRD, Rio framework around with global [copper] mining; (iv) technologies for the 13. Integrated optimization of
Tinto and Teck Cominco Phelps Dodge producers could collaborate to address implementation of “dry” processing. the mining business.
(subsequently acquired by Freeport- the common technological challenges
McMoRan). that they face in terms of the · Sustainable development. The Amira’s work concentrated on the pre-
industry’s future competitiveness and R&D priorities related to this competitive research and development
The Copper Technology Roadmap (Amira, sustainability. However, the objectives focal point are: (i) efficient use of possibilities, staking its bets on
2004) emerged from this effort. It was of this one are to: water; (ii) integrated sustainability complementing the internal efforts made
revised and adjusted to the specific model; (iii) mine closure design. in each company, in addition to offering
challenges of Chile and the rest of Latin · Cut production costs. them mechanisms for pursuing the most
America in 2006 (Amira, 2006). It should · Achieve an acceptable balance As a result of the aforementioned risky R&D exercises collaboratively.
be highlighted that, despite the fact that between the economic, focusing exercise, 13 projects were
the work was done precisely at the start environmental and social effects. chosen as R&D priorities: In a process that started with the
of the commodity price boom, the Amira · Manage technological and 1. Efficient copper ore blasting. definition of key business drivers
roadmap explicitly states that copper investment risks. 2. Continuous automation of and focus areas, continuing with the
mining was already facing serious · Improve the industry’s health, the mining process. identification of challenges and barriers,
challenges, which underscores the tool’s safety and hygiene. 3. Selective control of mine the priority technology research areas
usefulness in anticipating future risks. · Improve energy efficiency by material extraction. for copper extraction and processing
10% through the implementation 4. Analysis of mine processes were defined.
A review of Amira’s work (2004, 2006) of improved technology. to determine existing time
is presented below, as it is convenient savings opportunities. It is extremely important to keep in mind
and effective to examine that roadmap’s These five objectives were concentrated 5. Improved product recovery that technology advances at exponential
conclusions and suggestions to establish and specified in the following three focal and reduced energy use. rates in today’s world. While the Amira
the added value that this book offers. points: 6. Removal of undesirable materials Roadmap (2004, 2006) set a milestone
prior to the comminution for the time when it was published,
The first thing that should be noted is the · Improved efficiency in the used of and leaching processes. the possibilities that technology offers
different focus between Amira’s work, fixed capital and assets. The R&D 7. Improving water recovery now, a decade since the last time it was
which is a strictly technological roadmap priorities related to this focal point from tailings. updated, have expanded substantially.
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02 ROADMAP LOGIC AND METHODOLOGY
This is why it is important for the 1. It highlights the role that copper · The use of renewable energies.
Chilean mining sector to frequently and has played in the Chilean economy · Carbon footprint mitigation strategies
systematically review the best ways to and how it has intensified over the · Strategies for having competitive
address the technological challenges it last two decades. In addition, it smelters and refineries in Chile.
faces, in addition to being aware of the highlights Chile’s preeminent role as · Evolution and competitiveness of
need to incorporate current social and a global copper producer in the 21st exploration activities in Chile.
environmental requirements. century (between 30% and 32% of
global production), double its relative Lastly, as international experts have
Notwithstanding the above and importance in the 20th century (16%). also acknowledged, another thing worth
differences in missions and the goals set, highlighting is the debate process that
the trends, barriers and, consequently, 2. It argues that Chile’s insertion in a has begun with the drafting of this
the research needs identified in the globalized world requires fostering Technology Roadmap. The process has
Amira report are consistent with those local innovation capacity and generating built up significant social capital in the
identified in this Roadmap and there is technological innovation. An explicit mining sector, which has helped to reach
an overlap in some of the technological premise of this TRM is that copper can a consensus on the future of Chilean
challenges that the mining continues and should be used as a platform to mining. There is currently agreement
to face. However, the issues that Amira drive innovation. Current and future on the goals that the main challenges
addressed (2004, 2006) represent a exploitation of copper mines entails revolve around. The companies
limited and specific subgroup of this major technological challenges involved in mining have discovered that
Roadmap. and resolving them can produce cooperation in the sector can help to
exportable expertise and innovations. resolve cross-cutting problems that
It is worth noting that Amira (2004, benefit all of the companies and society
2006) also highlights non-technological 3. It emphasizes the importance as a whole.
challenges for mining companies of strengthening the World Class
related to human capital, research Suppliers Program associated
and development capacities and with Large Scale Mining Firms.
infrastructure, and sovereign risk; This Program is a mechanism for
issues that remain relevant to this day driving and disseminating innovative
and constitute issues that could be capacity in diverse regions around the
instrumental to fostering cooperation country. Thus, when the copper runs
between the industry, academia and out it will have left us an important
government agencies. legacy: the capacity to innovate.
40 / Mining technology roadmap 2035 alta ley alta ley Mining technology roadmap 2035 / 41
Photograph Max Donoso (Spence, BHP Billiton)
03 MINING OF THE
THROUGH 2035
FUTURE: VISION
03 MINING OF THE FUTURE: VISION THROUGH 2035
making the transition “Exporting between 130 and 150 million tonnes
of copper and other minerals in the 20 years
between 2015 and 2035, after materializing the
incorporating more
“Global leadership in sustainable mining will have
been established. This will be possible thanks to
environmental management that complies with
regulations and sectoral references based on
knowledge, innovation
industry best practice to rationalize demands and
permission processes, facilitating state oversight.
and technological
have been reduced, as will greenhouse gas
emissions, in comparison with the projected
base year (BAU 2010) and no net losses in
biodiversity will be produced, thus contributing to
development
the conservation the country’s natural heritage.
“Forging ties of trust and cooperation among The following team from
all of the stakeholders involved in mining Fundación Chile was in
related activities. This will be made possible charge of drafting this section:
through ongoing, fluid, transparent dialogue Francisco Klima, Tomás
on equal conditions and crystallized in shared González, Nicole Valdebenito
benefit agreements that, when implemented, and Hernán Araneda.
will help to make progress toward the common
46 / Mining technology roadmap 2035 Alta ley alta ley Mining technology roadmap 2035 / 47
03 MINING OF THE FUTURE: VISION THROUGH 2035
kt de Cu fino
Though certain exercises have been undertaken
3.000
to estimate Chilean mining production in 2035
under a hypothetical scenario in which the totality 3811,5
of projects are materialized (see Lagos et al,
1.000
2015), the Cochilco (2015) information will be
used because there is not enough certainty on the
matter. 0
2014 2016 2018 2020 2022 2024 2026
Graph 9 shows Chile’s estimated copper mining
production in 2026. The estimate was made taking
Base/operators
into consideration the base scenario (current mine
Base/projects
operations and existing project portfolio), with
Probable/projects
three projected scenarios representing gradually Possible
higher risks of materialization, depending on their Potential/Cu Projects
conditions and current status.
Source: Cochilco (2015)
48 / Mining technology roadmap 2035 Alta ley alta ley Mining technology roadmap 2035 / 49
03 MINING OF THE FUTURE: VISION THROUGH 2035
To achieve the goal associated with the National development of new technological capacities, graph/10
Mining Program, the national mining industry institutions and human capital, among others. In
will have to produce an annual average of 7.5 this context, the gap is represented the distance
Cost structure for Chilean
million metric tonnes over the next 20 years. between the projected production levels for mining industry, by quartiles 4th Quartile
27%
There is a substantial gap here if one considers the two scenarios. Attaining the desired level
that the Chilean copper mining industry has of production requires materializing mining
2nd Quartile
produced an average of 5.5 million metric projects that have been classified as “probable,” 40%
tonnes of copper per year over the last 10 years. “possible,” and “potential.”
50 / Mining technology roadmap 2035 Alta ley alta ley Mining technology roadmap 2035 / 51
03 MINING OF THE FUTURE: VISION THROUGH 2035
table/1 Gap in mining-related goods Exports by the Suppliers of the Chilean Mining
and service exports Industry in the context of the Alta Ley National
World-class suppliers The metric associated with exports of mining-related Mining Program. Table 2 shows the number of
goods and services sets the target of US$4 billion suppliers and the amounts exported in 2010-2014,
2012 2013 2014 in exports by 2035, which at a minimum means which reached a peak of US$654 million in 2012
equaling the salmon industry’s exports in 2014. and then began to gradually decline until reaching
Sales range, by sales
Number of Total (US$ Number of Total (US$ Number of Total (US$ US$537 million in 2014. This number would have
companies million FOB) companies million FOB) companies million FOB) Fundación Chile, together with ProChile and the to be multiplied by at least 7.4 times to achieve the
company Achiles, drafted the First Report on proposed goal (US$4 billion)
Large 57 594 57 520 57 484
SME 8 10 8 10 8 11
Global results for sector 345 654 324 572 329 537 table/2
Exports and number of
Share of total 19% 92% 20% 93% 20% 92%
suppliers 2010-2014
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PRODUCTIVE DIVERSIFICATION AND
TECHNOLOIGCAL DEVELOPMENT IN MINING
INTRODUCTION
The mining sector opens up a unique opportunity
for productive diversification, technological
development and full social insertion. In particular,
exporting knowledge-intensive goods and services
is possible if one has mining as a foundation
and lever, given that the economic, social and
environmental challenges it faces can act as
unique driving forces to build the necessary
capacities to deal with these challenges, such
as developing an export portfolio consisting in
services, technologies and equipment.
figure/7 Thus, each stage can add something new, that will be needed to address the growing
something different, to the capacities that complexity of the geological, productive and socio-
Virtuous cycle, building new existed in the preceding stage, which not only environmental challenges that the sector faces.
capacities from the challenges helps the industry to maintain and to improve its
competitiveness, but is also a fundamental driver of This presents a unique potential for productive
national development because the new capacities and technological development to drive the
will not only impact the mining industry, but also transformation of the national productive base.
Transforming natural capital into social other industries and the economy in general.
capital Developing new capacities In other words, significant market potential
from increased complexity of mining Today’s challenges demand activities with high (demand for copper), together with abundant
knowledge content and with the more advanced mining resources that are complicated to exploit
technological and organizational capacities that (copious low-grade reserves, more demanding
P
CITIES IN RODUCTIVE are needed to close the productivity gaps ant to socio-environmental conditions) and significant
APA PRO
OFC CE increase socio-environmental performance. knowhow and experience create unique conditions
E SS
US to find the solutions needed to address the
The scale of the industry, together with the challenges and in that way seize the market
significant levels of productive, technological opportunity while developing new capacities,
and organizational knowhow and capacities that products and services associated with a sector
have been created and perfected in large-scale that exports knowledge that originated in the
mining over the course of decades – in a context mining sector but which goes beyond it when it
of abundant mining reserves and growing global comes to the potential to create a knowledge-
CAPACITIES COMPLEXITY demand for minerals, especially copper – creates exporting sector (see Figure 8). No other sector in
· Productive capacity The operation of mines
the conditions for building the new capacities Chile presents a similar potential
· Human Capital and the associated
· Technological capacity productive processes
· Infrastructure and service face growing operational,
· Institutional capacities environmental and social
· Other capacities complexities.
DE
SE
VE
PO
PM
LO
EN ES
T MIN
OF ES
NE NG
WC LLE
APAC HA
ITIES FROM THE C
56 / Mining technology roadmap 2035 Alta ley alta ley Mining technology roadmap 2035 / 57
03 MINING OF THE FUTURE: VISION THROUGH 2035
FIGure/8 Experience teaches us that it is possible to expanded and become more sophisticated, with
Suppliers of Mine undertake the necessary efforts to take advantage new capacities created which allow new and more
of the opportunity that mining offers us. For complex challenges to be addressed.
Equipment, Technology example, in past decades the country was able to
and Services (METS) develop to the capacities that allowed it to take If today we want mining to continue to play
advantage of the potential that mining offered it, development platform role that it has been playing
Development of technology industries which led Chile to practically quadruple copper for decades, in addition to being the main copper
around mining. local content production between 1985 and 2005, becoming the producer in the world, Chile could become a power
production chain and high value. largest producer in the world. This is not a trivial in terms of innovation and the creation of shared
matter or a merely quantitative result. On the value related to the sector.
contrary, designing, building and operating mines
and mine processes on a large scale in a safe and Mining demands products and services,
Processing activity competitive way is a major achievement. Today the organizational and management models and
Operations and investments Closure downstream country has the experience, knowhow and capacity institutional capacities that can offer superior
to develop and operate large-scale mining projects performance by adapting, improving and even
Product using the best equipment and technologies creating the technologies needed to close the
Exploration Mine Processing Intermediate Manufacture available. In addition, Chilean engineering and productivity gap currently threatening the
design enjoy international prestige. industry. The mere transfer of “best practices”
is insufficient and requires an integrated vision
The practical requirement to resolve the that is comprised of everything ranging from
challenges associated with expanding production continuous improvement efforts to complex
while complying with higher environmental and technological development programs associated
Knowledge-intensive technology social standards was an articulating factor in a with the mining industry’s biggest challenges (see
based products and services · METS: Technology services
and mine equipment complex social process of collective learning. Figure 9). This need is the foundation that drives
· Knowledge exporter In addition to the significant contributions in the development of a knowledge intensive industry
· Inserted into global terms of the taxes paid, productive capacity was with a vocation for exports.
value chains
Hi-tech industries
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03 MINING OF THE FUTURE: VISION THROUGH 2035
Collective-selective efforts
100 to 200 well as the environmental conditions or factors Figure 10 is a simplified illustration of the
Area 1
that might be influenced through public policy to evolutionary process that Chilean mining has gone
Individual-mass efforts
Improvement and transfer of practices/standards give direction and purpose to this evolution. through, starting in the 1970s with an industry that
took advantage of the comparative advantages
The capacity to adapt to new requirements built on a foundation of abundant high quality
Projects No.
60 to 100 determines the industry’s competitiveness and mineral resources, which has gradually been
Area 2 (a and b)
sustainability, as well as the success of this transformed and new capacities created to make
Collaborative innovations Incremental and Systematic evolutionary process. it an industry whose development is sustained not
just on its geological capital, but also on its other
The Chilean mining sector has followed an competitive advantages, which include, among
1 a 10 Projects No.
Area 3 evolutionary path like the one described above. others, a base of METS suppliers consisting in
This trajectory has not just driven the industry’s internationally competitive companies capable of
Technologic Program - complex innovations (strategic) growth, but has also provided an incentive to diversifying the export portfolio.
Focus on stability and cost national development.
Figure 10 also shows a potential scenario
Focus on productivity and cost The mining sector is currently making the associated with a successful evolution of the
transition to a new stage, with one of its main current stage, which is just beginning and still far
Making growth options viable challenges – though not the only one, to be from being considered a consolidated process.
60 / Mining technology roadmap 2035 Alta ley alta ley Mining technology roadmap 2035 / 61
03 MINING OF THE FUTURE: VISION THROUGH 2035
FIGURe/10 The stages illustrated in Figure 10 are Though a vast majority of the more advanced
summarized below: technologies and designs continue to come
Mining’s evolutionary process from abroad, increasingly sophisticated
– history and projection Stage I (beginning in the 1970s) services are being provided locally. Local
The industry’s main source of competitiveness suppliers not only assimilate foreign
Mining development as a dynamic in the first stage was its possession of abundant technology, but have also started to develop a
goal. Successive stages in a long high-quality mineral resources. This natural capacity to improve technologies and to develop
term evolutionary process competitive advantage allowed the development those of their own.
of large-scale competitive productive activities,
which became the country’s main source of This stage incubated the capacities for the
exports. emergence of a METS (mine equipment
technology and services) sector that should
Low income Middle income Country with In this stage access to more advanced solutions grow more intensively in the next stage to take
country country high income Internationalization and technologies was essentially through full advantage of its potential and to create a
and productive
diversification imports. However, the developing productive new technology and knowledge exporting sector.
Stage I Stage II Stage III base, together with rising levels of outsourcing,
Incubation of critical Development of Development provided the starting point or the first impulse We are currently probably still in this stage and
capacities supplier base of ecosystem for the birth of a local suppliers sector that there are indications that we are in the process
allowed new productive relations to be forged of making the transition to Stage III.
Factor-driven economy Investment-driven Innovation-driven
between mining firms and the local economy as
economy economy
represented by this emerging, though still low- It would be premature to say that the transition
impact, sector of suppliers. to the next stage is a consolidated process;
we are faced with the challenges and tensions
Comparative advantages Comparative advantages
The enclave structure under which mining inherent in all change. Will we be capable of
operated throughout a great part of the 20th successfully overcoming the barriers that
Factor-driven economy Investment-driven economy Innovation- driven economy century started to break down in this stage. present themselves in this transition?
1975 1985 1995 2005 2015 2025 2035 year Stage II (beginning in the 1990s) Stage III (showing its first signs today)
The main source of competitiveness in The capacity to produce innovative solutions
the second stage was produced from the will become a significant source of competitive
Source: Osvaldo Urzúa (2016)
efficiencies gained from heavy investments advantages in this third stage. The geological
to expand the productive base, which was capital, still very abundant but lower quality,
facilitated by an environment favorable toward together with superior technological,
the attraction of investments and whose organizational and institutional capacities, will
impact was reflected in a very significant help to maintain a process of rising productivity
increase in foreign investment that led to a and environmental and social performance,
threefold increase in copper production in just which lays the foundation of the industry’s
one decade. competitiveness.
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03 MINING OF THE FUTURE: VISION THROUGH 2035
In this stage, a continually improving business outlook for the stage that the industry is currently
environment can address more sophisticated in. A strategy is needed that helps to create the
local demands. There are support industries conditions for making said transition.
with the capacities to deal with the challenges
of competitiveness and sustainability. The Technology Roadmap seeks to establish a
work agenda to add depth and systematicity to a
Advanced capacities are not developed in all collective learning or capacity-building process
areas, but rather in a particular METS group in all industry stakeholders. Everyone must learn
where knowledge, experience and enabling and protect the achievements made.
support systems (environmental factors) allow
sophisticated demands of the mining sector to be The Roadmap must be seen as a long-term
addressed. process that is under continual review and which
is regularly monitored and updated. It requires
These METS groups or sectors include institutions multiple and significant efforts that are only
and incentives to support innovation processes to possible to make with high levels of coordination
that suppliers can develop competitive products and public-private cooperation.
based on unique capacities that allow them
to develop differentiating strategies that can Stage III offers the great opportunity to develop
often be of a global scope. In this stage a METS high-value products based on copper, which is far
sector based on innovation is consolidated, one superior to the opportunities created by higher
characterized by its distinctive products and which levels of copper processing or production.
is more resistant to external shocks.
The country has a window of opportunity that is
A ROADMAP FOR STAGE IIII temporary and which requires acting with a sense
As noted above, the current context offers a mixed of urgency.
CHILEAN MINING
04 CHALLENGES FACED BY CHILEAN MINING
If we project copper
CURRENT SCENARIO AND SHORT
TERM CHALLENGES
5
Recent studies
reveal a drop in
While Chile’s potential for mining production direct costs (C1)
remains intact, the conditions that make the over the last three
consumption through
development of this industry possible have years, which
changed. Costs have increased, productivity reflects the result
of the cost-cutting
has declined and environmental and social plans that mining
sustainability have become imperative to companies
recycling capacities
Fundación Chile was in charge of
drafting this section: Francisco
Klima, Tomás González, Nicole
Valdebenito, María Carolina
Soto and Hernán Araneda.
In fact, the average ore grade declined 23.8% How does this impact on Industry costs? Mining Electricity consumption in copper mining
between 2005 and 2014. As can be seen in companies must extract and process increasing totaled 83,261 TJ (terajoules) in 2014, which is
the graph below, the concentration phase has volumes of material; the resources extracted equivalent to a 76.1% increase over 2001 and
shown a significant decline in average ore are increasingly harder and deeper. Considering 2.7% over 2013. For its part, fuel consumption
grades over the last decade, though it remains that mining is an energy intensive industry (over totaled 78,454 TJ in 2014, which represents a
the process with the highest grades. Meanwhile, 20% of its costs can be explained by this item), 101.4% increase over 2001 and 6.4% over 2013.
lower grades can be observed in dump leaching the situation described is translated into an
and/or ROM, while grades have remained increase in the industry’s costs due to an increase
relatively stable in heap leaching (0.1%). in unit consumption of electricity and fuel.
graph/11 graph/12
Average copper ore grades National energy consumption
at Chilean mining operations by copper mining, 2001-2014
by process type (Terajoules)
1,20 160.000
140.000
1,00
120.000
0,80 100.000
Terajoules
0,60 80.000
Chilean average 60.000
0,40
Concentrator
40.000
0,20 Heal Leaching
Dump leaching 20.000 Electricity
0,00 and/or ROM Fuels
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Source: compiled by authors based on Cochilco data. Source: compiled by authors based on Cochilco data.
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04 CHALLENGES FACED BY CHILEAN MINING
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04 CHALLENGES FACED BY CHILEAN MINING
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04 CHALLENGES FACED BY CHILEAN MINING
To be sure, it must also be taken into account that Even though the downward trend in labor They will be studied in greater depth in
falling productivity is not just due to declining productivity began to slow in 2014, it continues a second volume of this Roadmap.
ore grades and the quality of the geological to be a pending challenge that the industry
resource, but that it is also attributable to must address in the medium and long terms. One important challenge for materializing the
issues pertaining to business management, common vision defined in the context of the
the use of technology and differentiation REGULATORY PROBLEMS, SUSTAINABILITY Alta Ley National Mining Program refers to the
of human resources (Cochilco, 2014a). AND SOCIAL LICENSE delay in processing the permits associated
The topics detailed below represent very with mining projects. According to Lagos,
Labor productivity is a more precise measurement important, complex and socially sensitive Peters and Jara (2015), the average duration
of this. The below graph illustrates this problems. This subsection provides a of the project approval process increased from
indicator’s decline between 2006 and 2014, factual description of these subjects. 300 to 500 days between 2003 and 2011.
while at the same time showing a sustained
increase in remunerations through 2013.
graph/ 14 graph/15
Labor productivity in copper mining Average time (in days) for
and remunerations 2006-2014 obtaining an RCA
200 600
180
500
160
140 400
120
Days
Mining sector 300
100 remuneration
index (in US$)
80 200
60 Productivity index,
defined as fine 100
40 copper produced/
20 copper mining 0 Source: Lagos (2014)
payrolls.
0 2003 2011
2006 2007 2008 2009 2010 2011 2012 2013 2014
Source: Consejo Minero (2015)
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04 CHALLENGES FACED BY CHILEAN MINING
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04 CHALLENGES FACED BY CHILEAN MINING
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04 CHALLENGES FACED BY CHILEAN MINING
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04 CHALLENGES FACED BY CHILEAN MINING
With regard to the unit coefficients of direct According to the Federation of Chilean Industry, Sofofa (with investments representing 30.8% of the
greenhouse gas emissions5, which allow
5
Amount of direct (2015), the scenario described above has caused total sectors studied), which emerge as a
greenhouse gas
the intensity of emissions to be evaluated emissions per detained investment in mining to increase from consequence of the lack of financing, the drop in
independently of the mineral or production, one tonne of fine US$12 million in 2009 to US$45.611 billion in 2014 international prices or the redesign of projects.
can see that the upward trend has mainly been copper and US$59.867 billion in the first 9 months of 2015. · Investments showing external difficulties,
due to the emissions factor of the mix of fuels or those beyond companies’ control,
used, totaling 0.89 tonnes of CO2eq/tonne in 2013. According to this Sofofa report (2015), have to do with judicialization (26.5% of
there are direct and indirect problems detained investment of the total sectors
holding up investments: studies), environmental regulation (18.1%),
graph/17 · The former include all investments that the high cost and scarcity of energy
have been halted due to internal decisions (15.1%) and judicial uncertainty (9.5%).
Unit coefficients of greenhouse gas
emissions per tonne of fine copper
0,8
0,8 0,77
0,69
0,7
0,63 0,61
0,61 0,61 150 mil 200
0,56 0,58
0,6
167
Number of initiatives
Millions of US$
148
0,5 100 mil 150
134 124
0,4 104
50 mil 100
0,3 71
61
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
0 50
Source: Cochilco (2014) 2009 2010 2011 2012 2013 2014 09/2015
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04 CHALLENGES FACED BY CHILEAN MINING
us$
40.205 that the country should focus on the
40 technologies of the future. Without
losing sight of the development of future
us$
22.118 issues, it is important to put the role
20 us$ played by mining activity, especially
14.018 copper, into perspective regarding the
us$
us$ 2.845 development of societies and Chile, as
0.012 the largest producer in the world.
0
2009 2010 2011 2012 2013 2014 09/2015
To illustrate this, let’s think about
Detained Investment demand for copper. A developed country
requires 7 kg of copper per capita to fulfill
Source: Sofofa (2015)
consumption of final goods, while it is 2
kg per capita in developing economies
and just 0.2 kg per year per inhabitant
in underdeveloped countries. This is
The scenario described above poses a major translated into a global consumption of
challenge to the country. The mining industry 22 million tonnes of fine copper per year,
must prevent, compensate and/or mitigate equivalent to 3 kg of copper per inhabitant.
its environmental, social and cultural impacts
throughout the entire lifespan of its projects, If we project global copper consumption
while at the same time guaranteeing that affected through 2035, assuming that the entire
communities can participate in the diverse benefits population of the planet consumes
that it produces. (CNID, 2014). For its part, the state as much as a developed country, an The Cochilco Research and
must strengthen the capacities of the regulatory annual supply of 65 million tonnes of fine Public Policy Department was in
and oversight institutions to accompany the copper would be needed, which means charge of drafting this section,
industry’s evolution. This task must be understood increasing copper mine production coordinated by Jorge Cantallopts.
as a part of the national development process. capacities and existing recycling threefold.
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04 CHALLENGES FACED BY CHILEAN MINING
As mentioned, in the next 20 years The capacity to create these conditions is the development of mining activities, such
considerably more copper than that what given by the management of the natural as water and energy supplies, the availability
is currently produced will be needed and resource endowment, which requires of port infrastructure and, in some cases,
the new copper supplies will come from policies that foster the optimal use of even plant processing capacities.
three sources: new mines, expansion of mine claims and conditions that favor
existing mines and recycling. Expansions exploratory activities, such as basic EVOLUTION OF RESOURCES
will probably be one of copper producers’ geological information and support AND RESERVES IN CHILE
focuses, considering the current global trend for the riskiest exploration phases. The efficient exploitation of nonrenewable
of demanding a far higher environmental natural resources entails exploiting them at a
performance than they have had in the past, This section of the book is focused on rate that maximizes the resource endowment’s
especially new operations, and the lower risk these two conditions, which must be value over time. In a global copper market in
that expansions present compared to the fulfilled to ensure Chile’s protagonism which no single producer holds a dominant
search for new deposits. However, this source in the copper supply industry and in the position, an extraction rate is obtained that is
will not suffice to satisfy new demand. geological sustainability of mining activities. essentially demand-driven and that is what
determines the supply, considering criteria on
Meanwhile, there are many defenders First the evolution of resources and the maximization of private profits. This has
of recycling, especially among reserves in Chile is described, in addition meant that, in the face of significant increases in
environmentalists and those who oppose to the development of new mines over demand for copper over the last two decades,
mining activities, but numerous studies recent decades. After this the current the supply side reaction has been to increase
have already been produced that rate the situation with the administration and the extraction rate and expenditures on
recycling of new devices as complicated. use of mine claims in Chile is addressed, exploration, creating a dynamics for discovering
For example, a tablet contains far less along with the main challenges entailed, new deposits and gaining recognition
copper than a traditional computer and both from the perspective of public for new resources at existing mines.
the chance of recycling one is far lower administration as well as the creation of
or at least more expensive and with a conditions for the effective use of claims. One example of this dynamism can be
higher environmental impact, given the Subsequently the situation affecting the seen in the resources declared by the
complexity and reduced size of the latest exploration industry is described before USGS (US Geological Survey) in 1995,
devices. It does not seem very feasible finally analyzing the role that the state and which considering actual mined copper
to use current technologies to supply public policy must pay in different areas. extraction rates would have run out by
the new demand mainly with recycling. around 2012. However, new market
Among the issues addressed, those conditions marked by the so-called price
The world’s third and perhaps most important which stand out include: the production Supercycle that was in effect from late
source of copper will be new mines. of geological information allowing the 2003 until 2014 led to an exploration
Chile currently possesses 29% of known appropriate allocation of public and private boom and the reclassification of resources
copper reserves, which gives it a significant resources to an activity characterized by recognized by the USGS in 2014, which
advantage from the geological perspective. risk; the existence of development and together with the copper extracted
However, the conditions must be created financing policies for exploratory activities; during 1995-2014 is equivalent to 3.4
to make the most of these advantages. and the availability of basic infrastructure for times the reserves identified in 1995.
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04 CHALLENGES FACED BY CHILEAN MINING
600 30
500 25
Years
400 20 graph/21
300 15 Evolution of copper
200 10 reserves in Chile.
100 5
0 0
250 35%
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
30%
World copper reserves (Billions of Tn) Useful lifespan in years 200
Billions of Tonnes
25%
Source: Cochilco based on USGS (1996-2015)
Percentage
150 20%
100 15%
10%
50
6
For the purposes 5%
Another way to look at it is to consider that
of estimating 0 0%
annual copper extraction was around 12 million extraction rates 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
tonnes in 19956, which implied 10.2 million it was assumed
tonnes of fine copper in mined copper supplies, that recovery
levels will remain Reserves Chile (Billions of Tn) Chilean share of global reserves
meaning that the reserves identified would
constant and that
have lasted 25.6 years. Meanwhile, 21.7 million they represent
Source: Cochilco based on USGS (1996-2015)
tonnes of copper were extracted in 2014, but 85% of the
considering current reserves this extraction mineral.
rate could be maintained for 32.3 years. Now, if
we consider an annual increase of 3%, current
global reserves would last for 20 years.
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04 CHALLENGES FACED BY CHILEAN MINING
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04 CHALLENGES FACED BY CHILEAN MINING
graph/22 Figure/15
Evolution hectares under Concentration of mine claims in
Concession (millions of ha.) 15th, First and Second Regions
Marked property concentration in the Arica
18 Exploration and Parinacota Region (15th), the Tarapacá
16 concessions Region (First) and the Antofagasta Region
Millions of ha.
10
2 average potential NATIONAL
0 exploitation 15Tth · Arica y Parinacota
AVERAGE
40%
1995 2005 2014
Source: Sernageomin (1995, 2005 and 2014) LARGEST CLAIM
HOLDERS
CONCENTRATE
First · Tarapacá
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04 CHALLENGES FACED BY CHILEAN MINING
This situation gives an impression of unequal If one adds to the levels of claims concentration graph/23
distribution of concessions, which could an analysis of the percentage of territory in a
go against the very reasons why they were municipality that is available, one can see that
Percentage of area traded
awarded. Concentration of claims in the the municipalities of María Elena and Tocopilla, in on average in 2006-2013
mining industry could be explained by intrinsic addition to showing high levels of concentration,
factors associated with capital requirements have less surface area available for new claims.
or levels of geological knowledge, meaning
that it might not necessarily represent a priori It is worth noting that mine claims concentration 4,00%
inefficiency on the part of the industry. is not necessarily a sign of market inefficiency, 3,50%
as the owner of a mine operation might need 3,00%
Likewise, it has been established that to obtain better information on the extent of a
Percentage
2,50%
concentration on a national level has remained deposit, for which the surface requested initially
at similar levels since 2000, while among mining would have to be overestimated to ensure that 2,00%
regions only the Antofagasta Region showed a resources are not left out. Viewed from another 1,50%
significant increase in its levels of concentration perspective, an operation could have a claim 1,00%
during the period analyzed. For their part, Arica outside the actual location of an operation due to
0,50%
y Parinacota and Tarapacá have shown a general the fact that there are reserves considered in the
trend toward reduced concentration since 2006. mine planning whose exploitation would be in the 0,00%
XV I II III IV V RM VI VII VIII IX XIV X XI
This same trend can be observed, though in a less medium and long term, which would represent an
pronounced way, in the Atacama Region, which efficient behavior from the industry’s perspective. % Area traded National average
has even remained below national averages.
Concentration could avoid becoming a problem if Source: Cochilco based on Sernageomin data.
On a municipal level, the 10 municipalities there is rotation and an effective use on the part of the
considered highly concentrated are between the activity. In the case of claims rotation, measurement
Arica y Parinacota and the Atacama Regions. They of the volatility or instability of a market represents
are: Camarones, Colchane, Camiña, Mejillones, a way to account for the level of activity and the In this context, on average deed holders show a significant decline. On a level of the 10
Calama, Ollagüe, San Pedro de Atacama, transactions produced internally in the market, which decide to maintain 95% of the previous year’s largest mine claims holders in the country, one
Tocopilla, María Elena and Alto del Carmen. is generally associated with its entry and exit barriers. exploitation area and exchange 2%. The can see that they only contributed 17% of the
remaining 3% of the area is eliminated from exploitation concessions that changed hands.
the registry for the next year and also, the
new area incorporated represents 10% of the Lastly, when the period 2000-2013 is
immediately preceding total exploitation area. analyzed one can see that close to 65% of
the exploitation area was maintained over 14
The regions can be seen to behave in a relatively years (17% with different owners and 48%
similar way, meaning that one cannot affirm with the same owner), which is evidence of
that there is greater movement of claims in a certain market stability when it comes to
regions that are of greater interest to mining. exploitation concessions and claim holders’
Only the Seventh, Eighth, Ninth and 12th Regions tendency to maintain them over the long term.
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04 CHALLENGES FACED BY CHILEAN MINING
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04 CHALLENGES FACED BY CHILEAN MINING
Percentage
US$ billion
fundamental to guaranteeing the 5%
15
sustainability of the mining business. The proportional increase in mine site or
4%
“mine” exploration continued to stand out
Cochilco is currently engaged in in 2015 and has been on the rise since 10 3%
a series of projects that analyze 2011, surpassing basic exploration since
and evaluate the performance of 2014. This is evidence that exploration 2%
5
exploratory activity, especially with firms are more averse toward risk, which 1%
regard to non-ferrous minerals10. is higher in the early stages of a mining
2015 was the third consecutive year project and in greenfield projects. 0 0%
with declining global exploration 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
budgets for non-ferrous minerals, Meanwhile, advanced exploration, which
which were cut by 18.3% compared had remained at over 40% since 2005,
Total expenditure (US$ billion) Chile’s share (%)
to 2014 and were down 57.3% with has fallen to close to 37% in 2015.
Source: Cochiilco based on data from SNL Metals & Mining (2015)
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04 CHALLENGES FACED BY CHILEAN MINING
Regarding distribution by type of mining company, The situation in Chile is not much different graph/25
the so-called majors, or large mining firms, from that of other mining countries. The mining
continue to be the most relevant actors, with exploration budget in 2015 fell to US$615 million,
Exploration spending in Chile
48.8% of the global budget, as has been the or just over US$90 million less than the year by stage Millions of dollars
case since 2012. Their total budget was down before However, the country did position itself
18% in 2015 compared to the year before. among the most important countries again,
1,200
rising to fourth place after its global share
For their part, junior companies’ market share rose to from 6.6% in 2014 to 7% in 2015. This
1,000
Millions of dollars
was down for the second year in a row, from result illustrates its stable increase in market
32.3% in 2014 to 29.3% in 2015, with a global share since the beginning of this century.
800
25.8% budget cut, which reveals how sensitive
this sector is to slumps in mineral prices. The share of participation in the basic, advanced 600
and mine exploration phases has remained
In terms of destination, the Americas concentrate similar in 2015 (SNL Metals & Mining, 2015), 400
half of the budget committed for 2015, where totaling close to US$200 million that year. It is
North America, including Mexico, concentrates worth highlighting that all three stages registered 200
over half of that budget. On a country level, Canada smaller budgets, with the mine site or “mine”
remains in first place with 13.5%, followed by stage being the most affected with a budget that 0
Australia and the United States with 12.2% and was down -20.5% compared to the year before. 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
8.2%, respectively. Chile comes in fourth and In the case of basic and advanced exploration,
China fifth, with 7.0% and 6.2%, respectively. they were down -12.5% and -5.2%, respectively.
Basic Advanced Mine
Source: Cochilco based on data from SNL Metals & Mining (2015)
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04 CHALLENGES FACED BY CHILEAN MINING
If we analyze budgets according to their CONDITIONS FOR STRENGTHENING use for purposes they have been assigned for. In
exploratory focuses, in Chile the search MINERAL EXPLORATION IN CHILE this context, considering the advantages of the
for base metals continues to predominate, As this document has shown, while copper Chilean concessions system and the complexity
with 70.2% of the 2015 budget allocated to mining is classified as an economic activity entailed in changing it, it would be very useful
that area. Within this group, copper attracts dedicated to the extraction of nonrenewable to work on reaching the necessary consensuses
almost the entirety of this investment while a resources, it has characteristics that are so that can allow currently assigned properties to
smaller amount is allocated to zinc prospects. dynamic and complex that it is unrealistic effectively be used for what the concession was
The second metal is gold, with 26.4%, while to analyze from that perspective alone. awarded for and to produce value for the country.
the remaining percentage can be attributed
to a mixed group of other resources like First, it is highly likely that the world’s need for Three major lines of action have been
silver, molybdenum, rutile and lithium. copper in the future will be greater than it is now, identified to promote exploratory activities:
something that represents a great opportunity
Among the 10 companies with the largest to the country if we consider that we have the Production of geological information:
exploration budgets in 2015, the Chilean firm world’s largest endowment of the mineral and The availability of reliable and opportune
AMSA leads with 15%, followed by Codelco with vast knowledge on how to exploit it. In addition, precompetitive geological information
10% and the Australian firm BHP Billiton with past exploratory activity would appear to is currently a decisive factor in the
9% of the Chilean total. This year the inclusion guarantee mining activities in the country for competitiveness of mining districts. Chile
of the Canadian firm Lundin Mining in the top the next 50 years, at least at the largest mines. has taken important steps in this direction,
10 and the US company Freeport McMoRan’s However, a series of conditions are needed to take such as creating the figure of Competent
departure stand out, as does the Australian better advantage of our resources, optimizing the Person in Natural Resources and Mineral
company Hot Chili, the only junior in the top 10. use of the mineral endowment and creating the Serves and the approval of the regulation
conditions to explore and subsequently exploit it. associated with Article 21 of the Mining
In Chile, majors, or large-scale mining Code, though implementing this as part of
companies, are the most significant actors In the area of mine claims, there is evidence that an efficient system is a task that continues
in the area of exploration with 77.9% of the the judicial certainty of our concessions system under way. The Sernageomin’s implementation
budget, significantly higher than the global has played a key role in the development of mining of a national geology plan is also a sign of
average (48.8%). Their total budget was down activity. However, the levels of concentration are progress. However, policies and resources
11.4% in 2015 compared to the year before. quite significant, especially in some municipalities, are still needed before we have a geological
For their part, junior companies’ market which can affect the adequate allocation of the and property information system that is
share has maintained stable at 13.2% in resources located there. Furthermore, property appropriate to the importance that exploration
2015, while their budgets were cut by 9.6%. turnover levels are low, which is not a good sign industry has and should have in Chile.
of efficient use, especially when one considers the
As these numbers reveal, exploratory activity fact that, according to Cochilco estimates, no more Development of instruments to promote
in early stages and in particular among junior than 23% of exploitation concessions show some exploration: There has been much debate
companies is one of the hardest hit during sort of exploitation activity. This underscores the in Chile regarding the advantages of a tax
slumps in mineral price cycles and is therefore pertinence of debating mechanisms to speed up incentive for exploratory activities to make the
the segment that public policy should focus on. the consolidation of mine claims and allow their expenses of this stage of the mining business
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04 CHALLENGES FACED BY CHILEAN MINING
tax deductible, as is the case in economies The existence of available mine claims, ENERGY
that are more developed in this area, such financing and quality geological information The mining sector currently exports around 6
as Canada and Australia, where the activity do not guarantee that the exploration activities million tonnes of copper per year while consuming
by exploration companies is an engine that will be undertaken, as the inexistence of roads, 21.9 TWh (terawatt-hours) of power, in a context
drives their financial industries. However, that electricity and water distribution, treatment of rising costs and declining productivity.
is not the only way to stimulate exploration, plants and port facilities restricts exploration
as there is also the possibility of allocating regions to areas where these conditions do Copper mining is expected to need 39.5 TWh by
funds through competitive processes like exist, or else conditions the search for projects 2025, with the mines located in the area of the
the Corfo’s Fénix Fund, or through direct on prioritizing ones that are of a scale that Northern Interconnected System (SING) the main
allocation as is the case in Australia and allows said infrastructure to be financed. source of demand, with 23.3 TWh, while they will
Canada in periods like the current one, when consume 16.1 TWh in the Central Interconnected
risk capital financing becomes scarcer and As can be appreciated, there is still considerable System (SIC) (Cochilco, 2014c).
exploratory activity becomes depressed, with room for improvement when it comes to
the subsequent increase in unemployment the performance of exploratory activities in
and impact on the long-term sustainability Chile and in that way maximize the value
of extractive activities. In this context, the of our mineral resources, in addition to
Enami’s reserve recondition instrument is creating all of the links that can be derived
a sign of the existence of this type of policy, from this stage in the mining business.
but it needs to be evaluated and probably
updated before it can be strengthened. This is one of the areas for improvement
that is added to those already identified by
Creation of basic infrastructure: One rarely the Alta Ley National Mining Program and
thinks of the existence of basic infrastructure Fundación Chile, where Cochilco has provided
for exploitation as an incentive to exploration. valuable industry information and analysis.
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04 CHALLENGES FACED BY CHILEAN MINING
graph/26
National electricity consumption
by copper mining 2014-2015,
by maximum, expected and
minimum costs 2014-2015 (TWh)
50
45
40
35
30
TWh
25
20
15
10 Maximum consumption
Expected consumption
5
Minimum consumption
0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Source: Cochilco (2014c)
62%
17% 7% 4% 4% 3% 2% 1%
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04 CHALLENGES FACED BY CHILEAN MINING
When projects are analyzed according subsequently drop in 2035, to 1.9 times graph/28
to their execution conditions, it is the energy consumed in 2013.
11
Which would
determined that those rated as
amount to 46.0 Projected accumulated demand
TWh, a number
“possible” could begin to demand According to information from the that is consistent for electric power required by
electricity in 2017 and reach a total Association of Chilean Electricity with Cochilcho’s
consumption of 7.67 TWh in 2025, Generators (Generadoras de Chile) 12, estimate for 2025 copper mining industry as of
(46.3 TWh).
which in turn would account 19.4% as of 31 December 2014 the SIC and 2015, measured in MW, for the
of expected energy consumption on the SING had an installed capacity of Revised 25
SING, SIC and the national total
12
that date. For its part, demand from 19,966 MW, representing over 99% of November
2015, at http://
potential projects would come in 2020, the country’s entire installed capacity
generadoras.
totaling an expected 8.56 TWh by 2025, (Medium scale grids like Aysén and cl/generacion- 3000
or 21.7% of the total (Cochilco 2014c). Magallanes, in addition to other isolated electrica/sector-
systems, represent less than 1% of generacion- 2500
electrica/
Cochilco (2014c) affirms that the total installed generation capacity) 2000
national mining sector’s maximum (Generadoras de Chile, 2014).
Mw
energy consumption could reach 46.3 1500
TWh, in an optimistic scenario in which The SIC’s installed generation capacity is 1000
all operations continue as planned and in 15,180 MW, of which 52.5% corresponds
which all projects are commissioned on to thermoelectric power plants, 41.9% 500
time and with the productive capacities hydroelectric generators, 4.3% wind 0
their owners have projected power and 1.3% solar plants. For its part, 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
the SIC’s installed generation capacity is
Following a logic that is complementary 4,785 MW, of which 95.6% corresponds SING SIC Total
to the above, Lagos, Peters and Jara to thermoelectric power plants, 0.2% Source: Cochilco (2015c)
114 / Mining technology roadmap 2035 alta ley alta ley Mining technology roadmap 2035 / 115
04 CHALLENGES FACED BY CHILEAN MINING
Though the energy structure’s impact on mining 2050 Energy Agenda is a step in this direction).
companies’ costs is a current problem, the scenario In addition, mining companies must continue
described above poses a long term challenge that to promote the development of technologies to
the country must address. improve the energy efficiency of their productive
processes and foster the use of renewable
On the one hand, the state must make progress energies. Ensuring the mining sector’s long
in materializing an energy policy that is aligned term sustainability lends a sense of urgency to
with the country’s current and future needs (The this challenge.
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04 CHALLENGES FACED BY CHILEAN MINING
WATER graph/29
Water is considered a strategic resource in the
mining industry due to the rising use restrictions
Evolution of copper mining’s
in a context of lower supplies and, consequently, consumption of fresh water and
higher costs to obtain it.
seawater 2009-2026 (m3)
According to Cochilco (2015c), total water
21,5
consumption will increase 41.4% between 2014 19,7 19,7 20,8 21,3 21,3
and 2026, reaching a total of 21.5 m3/s. 20 19 19
16,7 17
15,2 15,8 16
13,8
By 2026, the consumption of fresh water is 15 13,3 13,4
expected to decline by an annual average of 1.9% 12,6 12,9
over the amount estimated for 2015, for a total
m3/s
10
of 10.8 m3/s. Thus it would almost equal the
use of seawater, which it is estimated will reach
10.7 m3/s by 2026 and is projected to grow at an 5
annual rate of 14.1%.
One of the main reasons for declining 0
consumption of fresh water has to do with the 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
expansion of the Coloso desalination plant, which
is expected to start operations in 2017 with a
capacity of 2,500 l/s. In addition, more and more Fresh water Seawater Total
mining firms are joining in the construction and
Source: Cochilco (2015d)
expansion of desalination plants of their own as a
way of dealing with fresh water restrictions.
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04 CHALLENGES FACED BY CHILEAN MINING
In terms of processes, the consumption of fresh the industry’s seawater consumption by region Table/4
water on the part of concentration plants will are that the Atacama Region will lead this trend,
continue to grow due to the lack of new projects followed to a lesser extent by the Atacama
Installed capacity for use of
in the area of copper hydrometallurgy and the Region. With regard to fresh water, the analysis seawater in copper mining.
exhaustion of leachable minerals. Concentrators, anticipates a decline in its share of consumption
which accounted for 71% of freshwater in the Antofagasta Region and a slight increase in
consumption in 2015, could account for as much Atacama, while remaining relatively constant in EXPECTED YEAR OF DESALINATION DIRECT PUMPING
OPERATION
as 82% in 2026, while the cathode electrowinning other regions. The change in the projected trend COMMISSIONING CAPACITY (l/s) CAPACITY (l/s)
process will fall 12% to 4% over the same period. is due to the larger number of projects in the
Michilla Operating 75 23
Antofagasta Region that would use seawater in
Regarding expected seawater consumption, their processes and the need for additional water Mantoverde Operating 120 -
the majority of increased consumption is also supplies to process primary copper ore, causing
projected to come from sulfide concentration the Antofagasta Region’s share to fall from an Escondida (Coloso) Operating 525-2,500 -
projects (rising from 87% in 2015 to 91% in 2026) estimated 43% in 2015 to 21% by 2026. Thus the
Mantos de la luna Operating - 78
while hydrometallurgy operations will show a Atacama Region would take the lead, with 23% of
proportional decline their use (from 7% in 2015 fresh water consumed by that same year. Centinela (Esperanza) Operating 50 780 -1,500
to 4% in 2026). Furthermore, increased use of
seawater is characterized by greater variability, According to this projection, the number of copper Antucoya Operating 20 280
as of the total projected in 2026, 40% would be mining operations that would use seawater in
Las Cenizas (Taltal) Operating 9.3 12
associated with projects classified as possible their processes would total 17, as detailed in the
and potential. Cochilco (2015c) projections on table below: Sierra Gorda Operating 63 1,315
Pampa Camarones Operating - 12.5
Candelaria Operating 300 -
Encuentro 2018 20 115
Diego Almagro 2018 - 315
Santo Domingo 2018 2.5-290 389
Radomiro Tomic 2018 1.630 -
Dominga 2019 450 -
Spence 2019 800-1,600 -
Quebrada Blanca 2020 1,300 -
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Regarding the impact of using desalinated (which in turn are determined by the distance
seawater in mining operations that consume over from the coast and the plant’s location), which
200 l/s, the conceptual estimate made shows range from 7 and 27 US¢/lb.
that, in a scenario where the cost of energy is
US$100/MWh, the operations studied could see This estimate considers infrastructure works, the
their costs rise by an average of 16 US¢/lb., of desalination plant, the pumping system and the
which 10 US¢/lb are the effect of operating costs pipelines to reach the altitude that the processing
and 6 US¢/lb. the investment analyzed. This plant is located at. The approximate operating
indicator varies depending on the pumping needs conditions are indicated below:
Table/5
Characterization of operations
based on fresh water No. 1
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04 CHALLENGES FACED BY CHILEAN MINING
sense, an environmental impact study For this type of project to be MINING AND CLIMATE CHANGE: TRANSITION TO A
is a mandatory part of this type of swap materialized, it is fundamental for the Drafted by the CIRCULAR ECONOMY
Fundación Chile’s
agreements, as is securing commitments population to be informed and to perceive Sustainability The year 2015 will go down in history as historical
to increase security of water supplies. the associated advantages. The biggest Department due to the universal agreement reached at the
obstacle is the insecurity posed by a new COP21 Climate Change Summit in Paris, where
The possibility for users to exchange source, which is why the population must 195 countries agreed to mitigate climate change to
water extraction points and sources have a clear idea of the options available keep the planet from increasing its temperature by
to compensate the resource’s scarcity for dealing with it and even to realize that more than 2°C by 2100, thus replacing the Kyoto
has been the subject of debate in Chile the resource will become more available Protocol as of 2020. This agreement, which finally
for many years. Swaps between the because both sources, the original one included China – currently the most-polluting
companies supplying water to the and the new one, will be available in the country in the world –, will enter into effect when
cities located along the Pacific coast event of an emergency. countries totaling a minimum of 55% of global
and mining companies located in the emissions ratify it by the 21 April 2017 deadline.
high mountains at altitudes of over Another important point is the recharging
4,000 masl have been considered in the of aquifers with desalinated water or While our country is not on the list of the main
northern parts of the country. In this diversions. The lack of a social license greenhouse gas emissions producers – representing
case, water sources would either be creates opposition in the population over just 0.3% of total global emissions – Chile’s
desalination or diversions. the legitimate fear that they might lose emissions have nevertheless increased sharply,
their sources of water and depend on growing by 74.1% just between 2008 and 2009. In
Fundación Chile started an analysis in desalination. In addition, agreements are addition, according to the Intergovernmental Panel
this direction in 2009. For example, the made more difficult when no economic on Climate Change (IPCC) and the World Bank, Latin
project Aquatacama was an initiative advantages can be perceived, even America is one of the regions that is most vulnerable
that received the support of the French when the availability of water resources to the effects of climate change, a phenomenon
Government to study the possibility of improves at lower altitudes. whose cost – according to the UN ECLAC – could
bringing water from the Bio Bio Region, come to account for as much as between 1.5%
with intakes along the way at Rapel, using Lastly, it is fundamental that the and 5% of annual regional GDP if the temperature
an underwater pipeline. The availability risks associated with the closure of increases by 2.5ºC above the historical average.
of water at sea level would allow swaps companies located in the higher regions
between the downstream users of be prevented, especially all aspects Chilean mining makes intensive use of both
aquifers and users at higher altitudes. related to the cost of water and its water and energy. A fundamental feature of these
Unfortunately the swaps did not prosper. impact on the population. resources is their mutual interconnection, which
is known as the Water-Energy Nexus due to the
principle that power generation requires water and
energy allows water to be transported and treated.
Climate change naturally has a direct negative Petar Ostojic and Neptuno
effect on this balance, which is why the mining Pumps were in charge of
industry must take the lead in the fight against drafting this section.
global warming, as it has done with its commitment
to the sustainable development of its productive toward attaining energy efficiency and cutting goal of replacing the linear consumption
processes and to make a contribution to the social energy consumption by 23% would allow the model that exists today. It has historically had
and economic development of its communities. mining industry to potentially mitigate CO2 large amounts of easily accessible and low-
emissions by 18% in 2020. However, in 2015 cost energy and raw materials available and
Over the last 15 years the Chilean mining sector’s President Michelle Bachelet committed herself been based on the principle of “produce-use-
greenhouse gas emissions have increased at before the UN General Assembly to cutting dispose,” which is switching to a circular model
an annual rate of approximately 5.3% due to Chilean CO2 emissions by 30% and as much that uses the resources – valuable, scarce
declining ore grades, greater transportation as 45% in 2030, a commitment materialized and finite – responsibly and efficiently and
distances and increased production, which all lead through the enactment of an energy efficiency with low levels of greenhouse gas emissions.
to increased consumption of electricity – power law, the implementation of a carbon emissions This new model is now known around the
that is mainly obtained from the SING, mostly tax – included in the recent tax reform – and world as the “circular economy.”escasos y
fueled by coal, and from fuels (Cochilco, 2012). the inclusion of renewable energy sources, finitos- de manera reponsable y eficiente
which are projected to account for 60% of total con una baja emisión de gases de efecto
According to a study by the British-Chilean energy production in 2035 and 70% in 2050. invernadero. Este nuevo modelo es conocido
Chamber of Commerce (Britcham) Climate hoy a nivel mundial como “economía circular”.
Change Committee, only 0.01% of companies in The mining sector has taken important steps
Chile measured their carbon footprints in 2014, toward becoming a sustainable industry
the country’s main mining companies among and the policies to make the transition to
them. Currently Compañía Minera Doña Inés de renewable energies will help to significantly
Collahuasi is the only mine to measure its carbon cut indirect emissions from electricity
footprint from all three aspects – direct emissions, purchases. However, energy efficiency
indirect energy emissions and other indirect policies are not enough to significantly cut
emissions – following international standards like direct and indirect emissions or to fulfill the
UNE, ISO 14,064-1:2006, the GHG Protocol and targets that the government set for 2035.
British Standard PAS 2050. This gives us a real While mining is an extractive activity and is not
and representative value for a mine operation’s characterized by the production of goods and
emissions. Of a total of 2,068,991 tonnes of CO2 services, in Chile it has become the main engine
emissions in 2014, 24% were direct emissions, 53% of the economy and to drive development of
indirect in the form of electricity purchases and technology, entrepreneurship and innovation.
another 23% other indirect emissions (domestic This allows it to play a leading role in the new
transportation of products, domestic flights, activities industrial era that is unfolding worldwide. This
by suppliers and contractors, among others). new stage, which the World Economic Forum has
The implementation of energy efficiency called the “Fourth Industrial Revolution,” (2016),
policies and the inclusion of renewable energy not only envisions the use of new manufacturing
sources in the power matrix are currently the and information technologies, the incorporation
main measures that mining firms have used of renewable energy sources and alternative
to reduce their carbon footprints. As early as fuels or the use of nanotechnology, robotics an
2009 a Cochilco study affirmed that efforts artificial intelligence, but also has the ultimate
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04 CHALLENGES FACED BY CHILEAN MINING
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04 CHALLENGES FACED BY CHILEAN MINING
The arrival of new technologies like 3D printing by BHP Billiton and Codelco or the creation of its associated impacts – on the environment,
or the Internet of Things (IoT) is speeding up the new public-private agendas that seek to emulate public health or related communities. However,
transition to a circular economy based on local successful experiences – like that of Australia – in over recent decades trends in regulation and
design and manufacturing capacities that are the development of the METS (mining equipment, public opinion have opened up a new front
tailored to the needs of each client. At the same technology and services) industry. for the industry that goes beyond the borders
time, mining has not ignored the new business of productive operations and which involves
models based on the Sharing Economy or Over recent years, companies as diverse as everything that happens with the product once it
collaborative economy, concepts that has have Google, Unilever, Ikea, Coca-Cola, HP, Philips and leaves the plant.
had a cross-cutting impact on all industries, Caterpillar have taken measures to make the
transforming conventional business models based transition to a circular economy and have received In this context, we understand sustainable product
on the sale of products and post-sales services the support from private institutions with global management as meaning a management system
into new Product-as-a-service (Paas) business recognition like the Ellen MacArthur Foundation that allows:
models. In this model, users do not have to buy the and the World Economic Forum. On a government · Knowing and controlling the environmental
products, making the supplier responsible for their level the message has escalated to spaces like and health risks associated with the product
availability, reliability and efficiency. The product’s the European Commission, which in December from the moment it emerges from the process,
manufacturer owns it and can therefore make 2015 adopted an ambitious and historic package including the subsequent phases in its life
decisions on its design, use, maintenance, reuse, of measures on the circular economy that assured cycle: handling and transportation; uses for
recycling and remanufacture throughout the entire investments for 650 million euros for research manufacturing and the production of items
life cycle, offering end users a service in exchange and innovation, in addition to 5.5 billion euros that contain it; the uses that consumers give
for a regular fee. for structural funds to undertake regenerative it, and final disposal and recycling activities.
processes and to upgrade waste management.
Thus, the manufacturer is in charge of cutting These measures are expected to add 1% growth to · Promoting rules, regulations and standards
down on energy consumption, the use of raw GDP, which would create over 2 million jobs. that ensure the sustainable and safe
materials and waste. This allows access to use of a product and its derivatives, but
sustainable and better quality products. Chile and its mining industry cannot allow which at the same time do not hinder its
themselves to be left out of this process, as commercialization and access to markets.
Chile’s mining cluster offers favorable conditions not only does it represent a chance to boost
for implementing the circular economy model companies’ competitiveness, create jobs and use · Promoting the development of innovative
and developing innovative solutions that help resources more sustainably, it is also about an uses of the product and its derivatives that
to improve productivity, foster efficient use of effective tool to reduce the carbon footprint and contribute to sustainability (for example,
resources – energy, water and raw materials – and fight climate change. improving the energy efficiency in processes,
cut the direct and indirect CO2 emissions of mining reducing the environmental footprint,
operations. In addition, introducing the circular REGULATORY CHANGES AND contributing to the quality of human life, etc.). The Codelco Department of
economy model can update and give new drive to NEW USES FOR COPPER Commercial Planning and Market
initiatives that have had high-impact results on the Sustainable management in the mining sector · Monitoring and anticipating substitutive Development was in charge of
mine-supplier virtuous cycle, such as the World- is generally understood to represent sustainable trends that affect the mining industry’s drafting this section, coordinated
Class Suppliers Program (PPCM) implemented management of the productive process and portfolio of commercial products. by Victor Pérez Vallejos.
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04 CHALLENGES FACED BY CHILEAN MINING
figure/18 For the mining sector, a sustainable product · Scant professional capacity in the industry
management focus entails, among other things, to address issues associated with evaluating
The four dimensions of sustainable making efforts and allocating resources to an the environmental risk associated of metals.
product management area in the business chain that until now it has · Very poor knowledge of relevant
tended to ignore: the end use of the raw materials scientific literature or the criteria and
it produces. mechanisms underlying the
Knowing and controlling the environmental · Regulatory decisions regarding the
and health risks associated with the product It is clear that if one of these uses is subjected risks of chemical substances.
from the moment it emerges from the to regulatory restrictions or is accused in social · Scant knowledge of the appropriate
process, including the subsequent phases in communications media of posing alleged health institutions and channels for action before
its life cycle: Handling and transportation; uses or environmental risks, the economic effect can international regulatory organizations.
for manufacturing and the production of items be as great or more serious than an production
that contain it; the uses that consumers give stoppage or a decline in ore grades or prices. The case of copper piping was a relatively simple
it, and final disposal and recycling activities. event compared to the scenarios that the mining
The urgent need for the international mining industry is now beginning to face. Expert opinion
Promoting rules, standards and industry to address this aspect of its business has indicates that these scenarios will only become more
regulations that ensure the sustainable been growing for several years and it has often complex and extensive in the future and will involve
and safe use of a product and its not been totally prepared to successfully deal aspects ranging from products’ intrinsic physical-
derivatives, but which at the same time with developments on the regulatory or public chemical features to the impact of their final disposal
do not hinder its commercialization perception fronts, which threaten to limit market on the environment and human beings.
and access to markets. access for their products or their derivatives, or
else make them less competitive regarding other CHALLENGES POSED BY A COMPLEX
competitive products that can replace them, not REGULATORY SCENARIO
based on cost, but rather sustainability criteria, Access to international markets is and will be a
apparent or real. critical issue for the viability of national mining
Promoting the development of innovative uses of activity. In this context, the industry currently faces
the product and its derivatives that contribute to An early example of this was in the late 1980s, a very diverse range of regulatory challenges
sustainability (for example, improving the energy when the World Health Organization took moves related to their chemical composition and the
efficiency in processes, reducing the environmental to characterize copper as an element that poses a dangers or risks it might pose to public health and
footprint, contributing to the quality of human life, etc.). high risk to human health, which had they prospered the environment. Some examples of this type of
would have made the copper piping market for regulatory scenario are:
drinking water unviable. In this case, a virtuous
alliance among Chilean Government institutions, · Globally Harmonized System of Classification
Monitoring and anticipating substitutive national and foreign scientists and industry trade and Labelling of Chemicals (GHS).
trends that affect the mining industry’s associations managed to overcome the threat. · The European Union Directive on
portfolio of commercial products. However, as these efforts developed certain the Classification and Labeling
weaknesses in the sector were detected when it of Hazardous Substances.
Source: compiled by authors. came to dealing with this type of development: · International Maritime Organization:
136 / Mining technology roadmap 2035 Alta ley alta ley Mining technology roadmap 2035 / 137
04 CHALLENGES FACED BY CHILEAN MINING
International Codes and Conventions registration, evaluation of hazardousness Chile does not currently have the technical these regulatory developments or standards
on Maritime Transport and the risk posed by substances, labelling capacity to address this challenge and companies are produced (APEC Chemical Dialogue,
· System for the Registration, Evaluation, and the development of new forms of Safety typically send their samples to labs in developed International Maritime Organization, the OECD,
Authorization and Restriction of Chemicals Data Sheets; and the implementation of safe countries, which are often surpassed in their United Nations). The development of trained
(REACH; European Union, South Korea). handling, transportation and use practices for capacity (thanks to the proliferation of these human resources and funds to finance said
· Basel Convention products. They also establish criteria under which regulations). In other cases, the specific participation is fundamental to giving Chile
· European Union Directive on Biocidal Products. transportation (by sea or land) and even the entry requirements associated with the characterization a greater presence in the multiple technical
· Environmental Assessment Framework of certain materials into given countries can be of certain products are not part of the standard committees where decisions are made that end
for Products (European Union) forbidden For example, the European Union’s battery of analysis available on the market. An up having an impact on commercialization or
· Regional and national water quality criteria REACH (Registration, Evaluation, Authorization illustrative example is the Metals Dissolution and access to markets by the products that sustain
for metals (USA, European Union, Chile, etc.). of Chemicals) Directive includes mechanisms to Transformation Protocol established by the Global the country’s national development.
· ROHS (Restriction Of Hazardous establish temporary restrictions or directly and Harmonized System to assess the aquatic toxicity
Substances in electrical materials definitively forbid the importation or manufacture of metals and non-soluble metallic composites: Thus, the challenge to guarantee the future of the
and electronic goods) Directive. of given substances based on the risks that Currently there are just three laboratories in the national mining business is to develop the human
· Life Cycle Impact Indicators for materials, they are believed to pose to public health or the world capable of implementing it reliably (one capacities and equipment that allow national
used by regional or national authorities to environment. The burden of proving the contrary of them struggles to survive in Chile under the companies to successfully deal with the regulatory
award projects financed with public funds. – under strict scientific and technical criteria – auspices of the Mining Ministry). demands an threats that are to come, in that way
naturally falls to the importer or the manufacturer. ensuring the mining business’s access to markets
Some of the provisions contained in these This shortfall also has a dimension involving with its products and its sustainability.
regulations and frameworks are having an impact A GAP IN PROFESSIONAL AND analytic intelligence of regulations. Each of the
on the feasibility and costs associated with TECHNICAL CAPACITIES regulations mentioned above poses its own INNOVATION AND PROMOTING SUSTAINABLE
importing certain products to European, Asian The implementation of said regulation is challenges in terms of interpretation and adapting USES FOR COPPER
and North American markets. For example, the demanding increasing levels of technical and to the reality of each product, transport scenario Without doubt, better knowledge of an
recent amendment to Annex V of the International scientific capacity to assess the dangers and and destination market. Chile has scant human element’s properties and its effects on the
Convention to Prevent Pollution from Ships (Marpol) chemical, toxicological and eco-toxicological capacity to engage in these tasks and in some environment or living beings opens the door
obliges vessels transporting bulk materials risks that products pose. These levels are cases it simply does not exist. As a result, the to new uses for it that not only expands
considered damaging to the environment to particularly sophisticated for products with mining companies operating in developed markets potential markets, but also contributes to the
treat the waste waters from washing their holds complex, heterogeneous and variable chemical are often left at the mercy of services provided by sustainability of human activities.
in “appropriate facilities” (which do not exist in compositions, as is the case with many of the third parties (for example industrial associations
practically any port in the world), forbidding them products produced by metals mining (for example, in Europe or the USA), whose interests do not A significant part of the challenges that
from being dumped at sea, and all at the shipper’s mineral concentrates). Compliance with these necessarily coincide with those of the national humankind faces today has to do with global
expense. Determining whether a material is demanding data quality standards is critical mining industry. Frequently these associations warming, energy efficiency, the availability of
harmful to the marine environment or not is based to fulfilling both the regulations that govern also lack the specialized capacity in these issues. water and food for people, among others. The
on highly technical criteria established by the imports, handling, storage and transportation uses copper has plays a fundamental role in
United Nations Global Harmonized System. of substances, as well as for defending the These weaknesses are multiplied due to the addressing all these needs and will continue to do
classification criteria that the industry believes Chilean state apparatus’s scant capacity so as resources are allocated to the development
Many of these international regulations applicable appropriate and to avoid precautionary and to participate effectively and opportunely of new uses over time and a national innovation
to mining products do not just demand the restrictive classification perspectives. in the international bodies where many of ecosystem focused on this area is developed.
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04 CHALLENGES FACED BY CHILEAN MINING
A recent example of this potential is the explosion is important that demand for it be upheld by entrepreneurship possible, aspects that are
of high-value applications for metallic and foundations that are firm over time. fundamental to closing the existing gaps between
non-metallic copper, where it is used as an the technological challenges and products’ entry
antimicrobial material. For example, using it in Specifically, the industry’s biggest challenges can into markets.
hospitals has the potential to reduce intrahospital be summarized in the following seven points:
infections and have a positive impact on health cutting processing costs, maximizing added This once again demands that the mining industry,
indicators while cutting the use of antibiotics. value, increasing competitive value against other research centers, entrepreneurs and development
Similarly, there is solid evidence that using materials, resisting changes in regulation and mechanisms consider sustainability beyond their
copper alloy cages for aquaculture increases standards, ensuring the strong performance of productive processes and their relationship with
the productivity of the aquaculture industry, products made of copper, increasing the use of the environment, but also include the far broader
expands the industry frontiers by allowing farms complementary materials, and designing products aspects of end uses and how they contribute to
in exposed marine areas, reduces the activity’s to be recyclable and recoverable. the planet’s sustainability.
impact on neighboring ecosystems and gives the
product a smaller carbon footprint. Development of markets must be considered to be So far Chilean mining has placed the responsibility
a process that is ongoing over time, one that must for dealing with these challenges in the industry’s
In addition to the above and as technology and articulate cross-cutting innovation ecosystems to international trade associations. Though it is clear that
society continue to progress, the emergence of integrate science, entrepreneurship and financing they have made a very valuable contribution, there
new substitutes and other threats will always before the threat of substitution has irreversible is no doubt that these groups’ interests are far from
remain latent. In every sector where copper impacts on Chile. the same as the interests of Chile, a country whose
has a presence in terms of consumption there present and future would seem to be indissolubly
are alternatives that compete with it and seek As we saw above, there are many opportunities linked to its mineral wealth and the opportunities it
to replace it. This is why it is fundamental for to innovate, grow and to show all of the potential offers throughout the entire value chain.
the country and the copper industry to develop associated with the red metal as a sustainable
technological innovation capacities associated material that can bring tremendous benefits to
with the properties of copper, through research, society. Taking advantage of these opportunities
entrepreneurship and business models that help can make the difference, not just in the copper
to diversify the uses of copper and reinforce industry, but also in the process of economic
its competitiveness over time through an open development and growth for all Chileans.
innovation model that is articulated on a national
level and with a vision of global impact. The quest for innovative applications that could
be intensive in copper use or not, in terms of
There is a need to develop existing markets and tonnage, must always be related to the high added
to strengthen emerging markets to ensure copper value provided as a benefit to society and to the
remains current as a material, taking advantage challenges of the modern world.
and strengthening all of the capacities that Chile
has developed and which it can continue to Developing new uses for copper requires
develop. Our country and its economy depend innovation ecosystems that stimulate innovative
on the copper market and for this reason it thought and make specialized research and
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Fotografía Codelco (Mina Rajo y Planta Lixiviación Salvador)
05 CORE
GRAVITATING
CHALLENGES
05 GRAVITATING CORE CHALLENGES
Referring to areas
CORE CHALLENGE TAILINGS
BACKGROUND The chapter Gravitating Core
The copper mining industry extracts large Challenges of the Mining Road
volumes of material, of which only a small Map was developed based on
critical technological
and is waterproofed from the top down the inner Gloria Dueñas, Carolina Soto,
bank. Meanwhile, the retaining wall of a tailings Constantino Suazo, Cristian Cifuentes,
dam is built with the coarser part of the tailings). Enrique Román, Felipe Mujica, Gerard
Van Lookeren, Grecia Pérez de Arce,
industry’s evolution
Rayo, Marcelo Capone, Miguel Herrera,
Patricio Renner, Raúl Espinace,
Rodolfo Camacho, Ronald Álvarez,
Rosana Brantes, Sebastian Valerio,
Sergio Barrera, Timothy Gardner,
Ulrike Broschek and Waldo Vivallo.
Figure/19 GRAPH/30
Composition of a tailings dam Relationship between ore treated
and the fine copper contained in
the concentrate that is produced
Reservoir 16 1.600
14 1.400
Beach 12 1.200
Clear Water
10 1.000
Mt Cu fine
Mt of ore
8 800
Retaining wall 6 600
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05 GRAVITATING CORE CHALLENGES
Table/7
Recent incidents associated
with tailings deposits dumps
21/NOV/2015 Hpakant, Kachin state, Myanmar No information Huayuan country, Xiangxi Autonomus -
14/MAY/2009
Prefecture, Hunan province, China
Germano mine, Bento Rodrigues, distrito de
5/NOV/2015 Samarco MineraÇão S.A. 22/DIC/2008 Kingston fossil plant, Harriman, Tennessee, USA Tennsesse Valley Authority
Mariana, Região Central, Minas Gerais, Brazil
10/SEP/2014 Herculano mine, Itabirito, Região central, Minas Gerais, Brazil Hercules MineraÇão Ltda. 8/SEP/2008 Taoshi, Linfen City, Xiangfen county, Shanxi province, China Tashan mining company
7/AUG/2014 Buenavista del cobre mine, Cananea, Sonora, Mexico Southern Copper Corp. Mineração Rio Pomba
10/JAN/2007 Miraí, Minas Gerais, Brazil
Cataguases Ltda
4/AUG/2014 Mount Polley mine, near Likely, British Columbia, Canadá Imperial Metals Corp 6/NOV/2006 Nchanga, Chingola, Zambia plc (KCM) Konkola Copper Mines
17/DIC/2012 Former Gullbridge mine site, Newfoundland, Canada No information Source: Word Information Service on Energy (2016)
Karamken Minerals
29/AUG/2009 Karemken, Magadan región, Russia
Processing Plant
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05 GRAVITATING CORE CHALLENGES
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05 GRAVITATING CORE CHALLENGES
In the face of this reality, the state has defined an Despite the fact that progress has been made Figure/21
institutional framework and adopted a series of rules with the regulatory framework to protect
aimed at regulating this activity, especially with regard people and the environment, pending issues
Status of tailings dumps
to the risks associated with the management of tailings. remain that must be addressed together with in Chile by region
The main regulations governing mine waste dumps are: the authorities, such as leakage, for example.
· Supreme Decree (SD) 248, which regulates The expected growth in production, together with
the design, construction, operation a scarcity of land for deposition and doubts they active non active abandoned n/i
and closure of tailings dumps. produce in the community, suggest the need to
review current deposition procedures, evaluate I Region
1 6
· SD 132, Mine Safety Regulation, which the design methodology for new dumps and
establishes the general regulatory seek alternatives to mitigate the impact that
framework that National Mining Extractive could be caused by dams currently in operation. II Region
12 23 20
Industry operations must comply with.
REGISTRY OF TAILINGS DUMPS IN CHILE
· Law 19,300 on General Environmental Regulations. Sernageomin regularly updates its registry of III Region
37 96 11 24
Organic Law of the Environment Superintendence. the tailings dumps in the country. According
to that information, there were 718 tailings
· Law 20,819, enacted in early 2015 to amend Law dumps throughout the country in 2015, of IV Region
36 243 68 8
20,551, regulating the closure of mine operations which 119 are active, 443 are inactive, 124 are
and facilities and introducing other legal changes. abandoned, and 32 are lacking information.
V Region
The following figure shows the status of 20 12
· Law 3,525, Organic Law of the Sernageomin the dumps registered and their distribution 51
(National Geological and Mining Service). in the different regions of the country.
MR
7 12 7
VI Region
2 14
VII Region
1 1
XI Region
2 3
XV Region
1
Source: Sernageomin (2015)
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05 GRAVITATING CORE CHALLENGES
The registry establishes the existence of 124 For their part, the Atacama and the Coquimbo The main tailings-producing mine operations
dumps classified as abandoned, a condition Regions concentrate the largest number of are those belonging to the large-scale mining
to classify all dumps with no known owner or active dumps, with 37 and 36, respectively. The category. The remaining tailings are produced
certificate of origin, or where there is official Valparaiso and the Antofagasta regions trail far by medium and small scale mines. Codelco is
or reliable information to indicate that no behind, with 20 and 12 dumps, respectively. the main producer with 28% of the total tailings
closure measures were taken. This situation produced in the country. It is followed by the
forces the state to take responsibility for Of the total number of active dumps, 63 are for company Antofagasta Minerals (AMSA) with
evaluating the structural risk and leakage copper mine tailings. However, when dumps whose 16% and BHP Billiton with 13% (JRI, 2015).
of polluted water, in addition to the means source ore includes copper and another mineral
for capturing and neutralizing them. are considered, this number increases to 87. Current production of tailings is concentrated
mainly in the northern regions, with 62% of
the total. The central region produces 37% of
mine tailings, while production of tailings in the
southern region is practically nonexistent (1%).
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05 GRAVITATING CORE CHALLENGES
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05 GRAVITATING CORE CHALLENGES
TABLE/9
Solutions and R&D Lines. Challenge:
Minimizing the impact of leakage and
ensuring the stability of dumps.
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05 GRAVITATING CORE CHALLENGES
TABLE/11
Solutions and R&D Lines. Challenge:
fostering community
inclusion and acceptance.
4
INFRASTRUCTURE
· Fiber optic networks for telecommunications
22
CAPACITIES
· Specialized human resources for inspecting
solutions dumps.
· Specialized human resources for operating
dumps.
· Specialized human resources for R&D
SUPPLIERS
· Strengthen local suppliers in instrumentation/
37
representation.
INFOGRAPHIC/1
Technology Watch: Tailings (Patents)
70
Patent Year Citations
US8137566B2
2012 22
Recovery of tailings ponds 3 Canada 19
US8859090B2 USA 18
Micro-structured surface having 2014 4 2
tailored wetting properties 19 13 Germany 13
7
US7682582B2 7 Japan 7
Simultaneous removal of H2S 2010 4 18 1 1 7
and SO2 from tail gases France 7
KR101315807B1 China 7
Production of Refuse Derived Fuel and
2013 3
PATENTS
Treatment of Biomass with zero discharge Denmark 3
system Using Microbial Materials
Holland 2
CA2750934C
Parafinic froth treatment with tailings Switzerland 1
2012 3
solvent recovery having internal flowrate Greece 1
inhibiting asphaltene mats
US8197676B2
2012 3
Method for tailings solvent recovery
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05 GRAVITATING CORE CHALLENGES
69
2010-2015 PUBLICATIONS University of Anhui 5
17 Sun Yat-sen University 4
15
12 2014
Canadian Department of Agriculture and Agri-food 3
2011
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05 GRAVITATING CORE CHALLENGES
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05 GRAVITATING CORE CHALLENGES
China has currently become the leading consists in gangue or material without 14
Corresponds
actor in copper smelter production, with commercial value (Cochilco, 2015d). to fine copper
over 5 million tonnes of fine copper On top of the scenario described, content in bulk,
per year, followed very far behind by where significant concentration in the of which copper
Chile and Japan with approximately smelting and refining business can concentrates
are almost
1.5 million each (Cochilco, 20153), thus be observed, the sale of copper could 100% of Chilean
gaining a predominant position in the face difficulties due to the impurities it exports.
determination of treatment charges (TC). contains, which could be catalogued as
hazardous or even cancerous materials.
This is of particular relevance when one
considers that China is the main destination This would be translated into discounts in
for copper concentrate produced in Chile. the sales price associated with the cleaning
of ships, in addition to treatment costs.
Close to one third of exports are
sent to that country, for a total Eventually, smelters could even reject
of 887,000 tonnes of fine copper “complex” concentrates like those with
(content)14 in 2014 (Cochilco 2015f). high arsenic contents, which account
for a significant proportion of Chilean
China is expected to attain a share of production, in that way reducing
close to 60% of the global concentrates the possibilities for selling them.
market, which would translate into
even greater power to determine For our country, which currently exports
prices (TC/RC, penalizations, PP, 2.5 million tons of copper as cathodes
others), exposing the Chilean mining (both refined as well as electrowon) and
industry to a high-risk scenario. 2.7 million tons in concentrates (Cochilco
2015g), it is fundamental to anticipate
In addition to this, it must be noted the risks associated with concentrate
that the future trend Chilean copper markets and, based on that, strengthen
production is increasingly inclined toward its position in the cathodes market.
a majority production of concentrates,
thanks to the gradual exhaustion However, the current situation in
of copper oxide deposits. This will Chilean smelters and refineries poses
Photograph: Codelco (Copper anodes)
impose major challenges in terms of significant challenges that must be
the infrastructure for transporting this overcome to foster the development
product, a significant portion of which of the national mining industry.
CURRENT SITUATION IN CHILEAN Smelters’ performance can be evaluated operations (in the case of Potrerillos,
SMELTERS AND REFINERIES as a function of direct operating costs, Chagres, Paipote and Ventanas, with
15
Gross Margin
is an economic
revenues and the level of capture and fusion levels of between 340,000 parameter
There are currently seven copper smelters in three decades. Fusion capacity using Flash sequestering of metallurgical gases. and 720,000 KTPA of concentrate). that to a great
Chile: five are state-owned (Caletones, Potrerillos, Furnace technology for fusion of concentrates Chilean smelters are in an unfavorable degree reflects
Hernán Videla Lira, Chuquicamata and Ventanas) accounts for 25% of total national capacity position with regard to other global When the gross margin is analyzed15, a business’s
competitiveness
and two are private (Chagres and Altonorte). (Chuquicamata Flash Furnace and Chagres actors in all of these categories, which the numbers indicate that of the seven and is defined as
They use the technologies Flash (flame fusion), smelter). The remaining 75% of national smelting is explained by low revenues and high smelters, four are in the last decile Total Revenues
Teniente Converter (TC) and Noranda Converter capacity, including the TC in Chuquicamata, labor and energy costs. Low levels of in terms of global competitiveness minus Net Cash
Cost. (Excludes
(NC) (bath fusion) for the fusion of concentrates, operate with TC or Noranda technology. metallurgical recovery also have an in the business and register negative
localization
in both cases with Pierce Smith converters, a impact, as they reduce Bonus Metal margins. In the case of refineries factor, as it
situation that has remained unchanged for almost This is detailed in the following graph. revenues. In addition to this is the the situation is even worse, as all of does not come
obsolescence and small scale of the them (3) have negative margins. from efficiency
factors, but
rather from the
specific location)
GRAPH/32
Capacities and technologies 11% 11%
of Chilean smelters
14%
TABLE/12
Total capacity of 7 national smelters:
6,470 KTPA concentrate.
Smelter Gross Margin
22%
Fusion technology of national
smelters: 75% Teniente-Converter 5%
Noranda, 25% Flash Furnace. Smelters Direct Cost Total revenues Cash Margin
7%
Caletones Average (c/lb Cu) Average (c/lb Cu) Average (c/lb Cu)
Altonorte
Chuqui-Flash 19% 11% China 12,9 28,6 19,3
Chuqui-CT
Potrerillos-CT World 23,5 27,0 12,2
Chagres- Flash
Ventanas-CT Chile 39,9 22,3 -4,6
Paipote-CT Source: Amec Foster Wheeler (2015)
Source: Study “State of the Art and Vision of Future in Smelting-Refining,” Alta Ley Program, August 2015.
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05 GRAVITATING CORE CHALLENGES
TABLE/13 On top of the low level of competitiveness and 6.6% of global production of
that Chilean smelters show, there is electro-refined copper cathodes
16
S.D. No. 28,
Gross Margin Refineries also the determination of new limits for (Amec Foster Wheeler, 2015).
published in the
Official Gazette
sulfur emissions (sulfur dioxide, SO2, With 1.3 billion tons of anodes on 12 December
and arsenic, As)16, a standard that was produced per year, Chile could use 2013.
REFINERIES DIRECT COST TOTAL REVENUES CASH MARGIN implemented on OECD recommendations 100% of its refineries’ capacity, which
that regulations be drafted to totals 1.12 billion tons of cathodes.
Average (c/lb Cu) Average (c/lb Cu) Average (c/lb Cu) reduce SO2 and toxic pollutants.
The electrodeposition technologies
China 4,33 12,13 7,80 In the case of existing smelters, the currently in use are:
regulation establishes a freeze on SO2 · Permanent cathode
World 6,09 10,16 4,07 emissions and imposes maximum SO2 · Starter sheets
emissions (in tons per year) and 95%
Chile 14,53 6,86 -7,67 capture and sequestration, setting a On average, permanent cathode
five-year deadline for compliance. A technology uses denser current than
more demanding emissions limit is starter sheets (278 and 260 A/m2,
Source: Study “State of the Art and Vision of Future in Smelting-Refining,” Alta Ley Program, August 2015. established for new smelters, equivalent respectively). Efficiency of electrical
to the capture of 98% of SO2 and current is an important operational
99.976% of As emissions. In addition, parameter and, as can be seen in
they must capture and sequester graphs 33 and 34, no correlation can
95% or more of sulfur and arsenic. be observed between the current
density used and the current efficiency.
Chilean refineries (Chuquicamata, That is, there are no major differences
Potrerillos and Ventanas) contribute in the average current efficiency
6.8% of global installed capacity values for each of the technologies.
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05 GRAVITATING CORE CHALLENGES
GRAPH/33 GRAPH/34
Electrodeposition technology Electrodeposition technology
(permanent cathodes) (starter sheets)
Avg. current density: 278 A/m2 Avg. current density: 260 A/m2
Avg. current efficiency: 95% Avg. current efficiency: 95.3%
280 64%
Current efficiency
Current efficiency
240 92% 240 92%
200 90% 200 90%
160 88% 160 88%
120 86% 86%
120
80 84% 84%
80
40 82% 40 82%
0 80% 0 80%
Onahama
Garfield
Chuquicamata
Montreal East
Nihama
Jinlong
La Caridad
Shandong Xiangguang
Gresik
Nkana
Guixi
Saganoseki
Dahej
Mufulira
Olympic Dam
Townsville
Tamaño
Tuticorin
Luenen
Olen
Onsan
Huelva
Brixlegg
Hamburg
Ronnskar
Onahama
Glogow I
Glogow II
Mufulira
Bor
Nkana
Amarillo
Potrerillos
Legnica
Kosaka
Naoshima
Shanghai
Baiyin
Guixi
Jinchuan
Yantai Penghui
Toyo
Ilo
Jinchun
Daye
Pirdop
El Paso
Palabora
Dias d’Avila
Daye
Saganoseki
Jinlong
Jinchang
Pasar
Jinchang
Ventanas
Tamano
Pori
Hitachi
Current density Current efficiency Current density Current efficiency
Source: Amec Foster Wheeler (2015) Source: Amec Foster Wheeler (2015)
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05 GRAVITATING CORE CHALLENGES
GRAPH/35 20
Refining technology versus
productivity (Man Hours per 15
HH/t cath
ton of cathode, MH/t cath) 10
(permanent cathode) 5
Avg. productivity: 1.4 MH/t cath
0
Toyo
Hitachi
Pirdop
Pori
Naoshima
El Paso
Jinchuan
Días d’Avila
Glogow II
Pasar
Amarillo
IIo
Glogow I
Pasar
Daye
Kosaka
Ventanas
Legnica
Potreríllos
Jinchang
Palabora
Baiyin
Yantai Penghui
Bor
Shanghai
20
15
HH/t cath
0
Hamburg
Luenen
Ronnskar
Brixlegg
Olen
Onsan
Huelva
Townsville
Gresik
Nihama
Olympic Dam
Garfield
Montreal East
Dahej
Shandong Xiangguang
La Caridad
Chuquicamata
182 / Mining technology roadmap 2035 Alta ley alta ley Mining technology roadmap 2035 / 183
Chilean refineries in an uncompetitive position: in of sequestration that comply with current
2013 they were in the last decile of the industry and future environmental regulations.
in terms of gross margin, which registered
negative numbers. This is because their costs In particular, we must aspire to all smelters
are higher than those of the rest of the industry possessing an electrolytic refinery, something
(Amec Foster Wheeler, 2015). The year 2013 was normal and desirable worldwide, which
particularly negative for Chilean smelters and would allow the operational synergies
refineries due to very high mining activity, a low (treatment of anode scrap and byproducts)
dollar exchange rate and high electricity costs. to be taken advantage of in a better way
and for savings to be made on shipping.
As the world’s biggest copper producer, Chile
must defend its position in the global market In addition, treatment of anode sludge would be
by selling cathodes. This has its advantages more efficient with just a single noble metals
compared to the sale of concentrate, due to: plant in the country (for economy of scale and
because it is a highly specialized technology),
· Possible restrictions on concentrate something that Codelco has already considered
exports (maritime transport). in the Noble Metals Plant Project in Mejillones.
· Possible increases in treatment
and refining charges due to Asian Inspired in technologies developed in Chile for
smelters’ negotiation power. the Teniente Converter, China has been promoting
· Possible reward from the quality of cathodes, an explosive development of efficient smelting
rather than penalizations and additional technologies that are currently setting global
costs from shipping concentrates. standards because of their cost advantages.
· Additional revenues from the
recovery and sale of valuable metals The northern part of the country (especially the
contained in the concentrates. Antofagasta Region) has a need to deal with
complex concentrates that face restrictions
To make progress in the aforementioned or which cannot be exported, especially if
Photograph Max Donoso (Chuquicamata Smelter) direction requires lifting existing operations one considers the tremendous volume that
out of the state of technological obsolescence will come from Underground Chuquicamata.
they are in, upgrading and/or replacing This scenario opens up the opportunity to
facilities to make them world-class operations transform smelters into specialized centers
with low operating costs and high levels for the treatment of this type of concentrate.
Challenge No. 1: Increasing efficiency other metals Yes/No Yes Yes Yes No
of smelting and refining processes
Chilean smelters show important deficiencies
that can be explained by a low fusion capacity, low
Source: Enami (2015)
copper recovery rates and nonexistent recovery
of byproducts and energy. This, together with
the process’s high unit cost, creates a scenario
in which one of the main challenges is to make
smelters more efficient. The table below compares
the parameters of Chilean smelters with those of
other countries to identify the productivity gaps.
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05 GRAVITATING CORE CHALLENGES
TABLE/15
Solutions and R&D Lines. Challenge:
increasing the efficiency of
smelting and refining processes
Minimal loss of copper and Automation, mechanization and robotization of refineries. Continuous conversion with solid white metal.
other metals of value. Valuable metals recovery (Mo, Re, U, Ge). Automation, mechanization and robotization of refineries.
Recovery from smelting dust and anode sludge. Continuous processes. Use of High Pressure Nozzles in bath smelting furnaces.
Use of High Pressure Nozzles in bath smelting furnaces. Direct-to-blister smelting.
Molten layer technology New continual electro-refining process.
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05 GRAVITATING CORE CHALLENGES
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05 GRAVITATING CORE CHALLENGES
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CORE CHALLENGE:
SMELTING AND REFINING RESOURCES
3
INFRASTRUCTURE
· Pilot tests (China/Chile)
· Laboratory tests.
CHALLENGES CAPACITIES
· Research in basic sciences.
· Universities contribute to research,
instrumentation and control.
· Advanced human capital with specialty: fluid
dynamics, transport phenomena, reaction
kinetics, thermodynamics, electrochemistry,
materials science, process modeling,
19
optoelectronics, mineral chemistry, digital
technology and mechatronics.
· Training of technical workers in operation and
79
optimization software, data transmission,
engineering design and specialized support services.
· System structured to accompany local
ALLIANCES
· China - Chile cooperation agreement.
· Alliances with national and international
universities and centers of excellence.
05 GRAVITATING CORE CHALLENGES
119
5 10
EP1148295B1 5 China 14
Gasification melting furnace for wastes 2011 14 14 24 Finland 10
and gasification melting method 19 4
5 Germany 10
US7771666B2
Method of producing nanoparticles using a Taiwan 5
2010 11
evaporation-condensation process with a
reaction chamber plasma reactor system France 5
US8052774B2 Canada 5
Method for concentration of gold 2011 5
in copper sulfide minerals Australia 5
PATENTS EP1811821B1
Method of recycling waste printed circuit boards
EP1964936B1
2011 4 Italy 4
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05 GRAVITATING CORE CHALLENGES
178
Czech Geological Service 6
36 Shahid Bahonar University of Kerman 5
31 2011
35 Minnig and Metallurgy Institute Bor 4
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05 GRAVITATING CORE CHALLENGES
INFOGRAPHIC/5
Technology Watch:
Refining (Patents)
77
Patents Year Citations Japan 22
US8052774B2 USA 11
Method for concentration of gold 2011 5 4
in copper sulfide minerals Chile 9
4
US7700343B2 3 China 7
Sulfur-oxidizing bacteria and their use in 2010 4 4
bioleaching processes for sulfured copper minerals 2 22 Austria 4
11 7
US8834715B2 Finland 4
2014 4
Copper recovery apparatus and copper recovery method
Poland 4
US2010065433A1
System and apparatus for enhancing Canada 3
convection in electrolytes to achieve improved 2010 4
Australia 2
PATENTS
electrodeposition of copper and other non 2
ferrous metals in industrial electrolytic cells Switzerland 2
EP1903119B1
A method of manufacturing high purity copper
2015 3 9
US7811534B2
2010 3
Method for the treatment of copper-bearing materials
MAIN US8192596B2
Ultrahigh-purity copper and process 2012 3
TECHNOLOGICAL for producing the same MAIN COMPANIES AND/
TRENDS US7736487B2 OR R&D CENTERS
Process for recovery of copper from copper-
2010 3
· Obtaining copper bearing material using pressure leaching,
direct electrowinning and solution extraction
MAIN UNIVERSITIES · JX Nippon Mining & Metals Corp
· Technologies related to · Pan Pacific Copper CO LTDA
US7722756B2
metals processing Process for multiple stage direct 2010 2 · University of Chile · Nippon Mining CO
· Solid waste management electrowinning of copper · Free University of Brussels · Phelps Dodge Corp
technologies US7736488B2 · University of Osaka · Freeport McMoran Corp
· Electrolytic production Process for recovery of copper from copper- · University of San Luis · Outotec OYJ
2010 2
· Recovery and refining of metals bearing material using pressure leaching, direct · University of Santiago de Chile · Xiangguang Copper CO LTDA.
via solutions electrolysis electrowinning and solvent/solution extraction · University of British Colombia · Sumitomo Metal Mining CO
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05 GRAVITATING CORE CHALLENGES
98
2010-2015 PUBLICATIONS French National Center for Scientific Research 3
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05 GRAVITATING CORE CHALLENGES
Millones de toneladas
4.000.000
3.000.000
The Core Challenge Mine
Operations and Planning section
was drafted based on work 2.000.000
by the technical commission
created for the core challenge,
which was comprised of the 1.000.000
following members: Agustín
Sepulveda, Andrés Pérez,
0
Brian Baird, Carlos Urenda,
Christian Schnettler, Claudio 2000 2003 2006 2009 2012 2015 2018 2021 2024 2027 2030
Rojas, Cleve Lightfoot, Francisco Open pit mining, rest of the world Open pit mining, Chile
Abbott, Hugo Toro, Jorge Soto, Underground mining, rest of the world Underground mining, Chile
Murray Canfield, Nury Briceño,
Pablo Asiain, Pierre Perrier.
Source: Wood Mackenzie (2015)
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05 GRAVITATING CORE CHALLENGES
While it has been estimated that there will However, when the ore body is located at TABLE/18
be a significant increase in production from a greater depth or else has surpassed the
underground mines by 2025, open-pit mines economical limit of strip mining, then the
Largest operations in Chile
continue to contribute the largest share of underground method will be chosen. (mainly open-pit) and their
total production, at close to 5 billion tonnes.
In this case the underground method will be defined
contribution of fine copper
The surface exploitation method, known as by a series of factors related to the body shape,
open-pit or strip mining, is the first option other characteristics of the ore as well as the rock KT FINE Cu
evaluated in the development of a mining that surrounds it, environmental and technological
project, as it is usually cheaper if the ore body factors, and economic considerations related to
Operation 2010 2011 2012 2013 2014 % of total % Acum.
is close to the surface and is regular in shape. the ore reserves available, the required production
rate, mine lifespan, productivity, and lastly the
Depending on the concentration of the cost per ton of ore using every possible method. Escondida 1087 818 1076 1194 1165 20 20
elements that are of economic interest, the
potential contaminants and in general the Over 50% of Chile’s fine copper production, in Collahuasi 504 453 282 445 470 8 28
geometry of the ore bodies, open-pit mines any of the forms it is sold in, comes from the
can far exceed 500 meters in depth. six operations detailed in the table below: Anglo American Sur 258 264 417 467 437 8 36
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05 GRAVITATING CORE CHALLENGES
All of the above operations (Except for Anglo prospecting programs guided by FIGURE/22
American Sur, which includes underground geochemical and geophysical research.
17
Qualification
production from El Soldado) are open-pit In the case of exploration in areas
Commission for Conversion phases and study levels
Skills Related
mines. In the case of Chuquicamata, the covered in pre-ore rocks, exploration to Mining
transition to an underground mine is already must be guided by the extrapolation of Resources
under way and production could begin favorable geological patterns present in and Reserves,
created by Law CONVERSION OF RESOURCES INTO RESERVES
at the end of this decade. Eventually all the pre-ore rocks or by the existence of No. 20,235.
operations could go through this transition. geophysical and geochemical anomalies
(Zauschquevich & Sutulov, 1975). Mineral Resources Mineral Reserves
The main underground operations in
Chile belong to Codelco (El Teniente Estimating the size or tonnage of ore Fragmentary Functional
and Andina Divisions) The El Teniente and the ore grades has habitually been Information Models
Division contributed 8% of the fine copper based on a geological interpretation
produced nationally in 2014, while the or 3-D model of the deposit and geo- High Risk Low Risk
Andina Division accounted for 4% of the statistical processing of the data collected.
total., Both divisions also have open-pit This is used to quantify the Mineral
mines whose production is also included Resources, which after successive
Progressive transition toward reduced uncertainty and risks
in the aforementioned numbers. phases can become Mineral Reserves.
208 / Mining technology roadmap 2035 alta ley alta ley Mining technology roadmap 2035 / 209
05 GRAVITATING CORE CHALLENGES
The successive mining studies must reflect the Mine planning is under continual development mine business’s productivity. Furthermore, the
growing level of certainty in the relevant exploration during mine operation, in a way that is similar need to move larger volumes of waste and grind
parameters and, in the event that favorable to what is done in the preliminary stages of more ore is added to the increasing hardness
economic results are available, lead to the mine’s the mine project or the engineering phase, of the ore found, which also has an impact on
construction, commissioning and operation. but with different information inputs. energy consumption (see chapter 4, Section:
“Current Scenario and Short Term Challenges”)
Operating a mine is a multidisciplinary task A team traditionally known as “mine operations”
that must be coordinated to be undertaken in is in charge of extracting the materials from Another reason behind the growing need for
a safe and effective way. The work teams that the mine. In metals mining this is done in energy in mining has to do with the essentially
participate include, among others: geology, the following unit operations sequence: nonexistent continental waters available to supply
geotechnics, planning, topography, mine drilling, blasting, loading, transportation. the consumption of new operations, with an
operations, maintenance, administration, increasing need to transport water from the sea
services, and support in health, safety, the Together the unit operations and the equipment and the energy expenditure associated with it.
environment and quality, among consultants and/or technology used to undertake each one
from diverse areas. The geology team’s mission make up a “mining system,” which is closely While the price of copper has a direct effect
includes providing information on the physical, related to the “exploitation method” in question. on the industry’s productivity (periods of
chemical and mineralogical characteristics For example, currently the majority of large high prices foster the exploitation of mines
of the material to be extracted, which is the mines operating under the open pit method with lower ore grades and productivity, but
starting point of the extractive process. This use a mine system in which the stripping or with economically reasonable results), it is a
information is taken by the engineering or extraction of the material is done with drilling fact that declining ore grades and increasing
planning group, which integrates it with other (mainly rotary) and blasting with explosives, hardness and impurity, in addition to the larger
variables related to operation, geotechnics, while loading and transportation is carried transportation distances, have made productivity
metallurgy, maintenance and costs, so as to out using a shovel-dump truck system. a priority focus for Chilean copper mining.
draft a production plan or “mine plan.” This plan
describes the materials that will be moved in the As already mentioned in previous chapters, the
operation and the resources required to do so. Chilean mining industry has been affected by
a gradual decline in the quality of its mineral
Movement of materials in the operation reserves. Copper ore grades are ever lower,
includes extraction and transportation of mainly due to the greater depths that mines
materials comprised of different qualities have reached, where the rock is harder. In
and concentrations of the element of interest. addition, in the case of open-pit mines, expansion
That is, material lacking in valuable content of operations habitually entails removing a
(“sterile” ), material whose valuable content larger proportion of sterile material or waste
does not justify processing it and materials for every tonne of ore to be recovered.
with different proportions (“ore grades”) of
elements of interest. This material, generically This scenario has a direct impact on higher
referred to as “ore,” will be destined to one of energy consumption per pound of fine copper
the process lines or the respective dump. produced and it has a negative effect on the
210 / Mining technology roadmap 2035 Alta ley alta ley Mining technology roadmap 2035 / 211
05 GRAVITATING CORE CHALLENGES
Increased mineral
resources and
reserves
Environmental
protection and social
responsibility
Greater workplace
safety and quality
212 / Mining technology roadmap 2035 Alta ley alta ley Mining technology roadmap 2035 / 213
05 GRAVITATING CORE CHALLENGES
214 / Mining technology roadmap 2035 Alta ley alta ley Mining technology roadmap 2035 / 215
05 GRAVITATING CORE CHALLENGES
· Continuous mining
· Characterization.
· Gravitational flow.
Development of large- · Online measurement of ore grades.
scale deep mining · Support and fortification.
· Fragmentation/blasting
Underground · Automation and autonomous operation.
Mining · Operation under high levels of geomechanical stress
218 / Mining technology roadmap 2035 Alta ley alta ley Mining technology roadmap 2035 / 219
05 GRAVITATING CORE CHALLENGES
· Control of dust/emissions
Solución Etapa Líneas I+D
· Techniques that allow the future
Management of waste use of land and to control erosion.
Open-pit mining
and its potential impact. · Potential for acid production. Reduce direct intervention by · Improvement and development
· Tires. operators, thus improving both Exploration of techniques for automation of
· Lubricants. safety as well as accountability. sampling and sampling preparation.
220 / Mining technology roadmap 2035 Alta ley alta ley Mining technology roadmap 2035 / 221
CORE CHALLENGE; MINE
OPERATIONS AND PLANNING RESOURCES
4
CAPACITIES
· Research in basic sciences.
· Universities contribute to research, instrumentation
CHALLENGES
and control.
· Advanced human capital specialized in: process
modeling, management of assets, mechatronics,
robotics, characterization and modeling of variables,
geo-metallurgy, geochemistry, geophysics and the
environment.
· Training of operators and maintenance workers
in Technical Training Centers who are experts in
automation and robotics.
13
· Technology think tank for mining.
· Organizations for the transfer of knowledge.
solutions SUPPLIERS
· Strengthen the development of local suppliers of
instrumentation, expert control, mechanization,
automation, robotization, information management,
optimization software, data transmission,
engineering design and specialized support services.
· System structured to accompany local companies
35
with technological capacities.
LINES OF R&D
ALLIANCES
· Alliances between national and international
universities and centers of excellence.
· Alliances between industries and Technical Training
Centers to train operators
· Alliances between research centers / Universities /
Industry / State/ Suppliers
05 GRAVITATING CORE CHALLENGES
INFOGRAPHIC/7
Technology Watch:
Planning (Patents)
43
Patent Year Citations
US8144245B2
USA 9
5 8
Method of determining a machine 2012 23 Australia 9
1
operation using virtual imaging 6
3 Finland 8
US8567871B2
Method for automatically creating a defined 2013 8 9 1 2 Germany 6
face opening in longwall mining operations Sweden 5
US7925474B2 France 3
System and methods(s) of blended mine 2011 7
planning, design and processing S. Africa 2
TRENDS
face opening in plow operations in coal mining
MAIN · Sandvik Mining & Constr OY
US7681660B2
Arrangement for positioning drilling unit
2010 3 COMPANIES · Bhp Billiton Innovation PTY
· Procedures for underground AND/OR R&D · Sandvik Intellectual Property
or surface mine operation. US8886382B2 · Atlas Copco Rock Drills AB
· Diverse details related Method and system for regulating 2014 3 MAIN UNIVERSITIES CENTERS · FCI Holdings Delaware INC
to the equipment that movement of an entity between zones · Rag AG
creates the fractures or · University of Sydney · Trimble Navigation LTD
US7883298B2
completely frees the ore Supporting device for an advance 2011 3 · Soletnache Freeyssinet
material from the vein. working or mining machine · Sandvik Tamrock OY
224 / Mining technology roadmap 2035 Alta ley alta ley Mining technology roadmap 2035 / 225
05 GRAVITATING CORE CHALLENGES
152
Polytechnic University of Silesia 3
226 / Mining technology roadmap 2035 Alta ley alta ley Mining technology roadmap 2035 / 227
05 GRAVITATING CORE CHALLENGES
INFOGRAPHIC/9
Technology Watch:
Exploration (Patents)
315
Patents Year Citations
USa 162
8 15
US7860301B2
2010 75 Australia 39
3D imaging system 7
34 16
Canada 34
US7756615B2
Traffic management system for a 2010 66 14 17 China 17
passageway environment 162
Germany 16
US7725253B2
Tracking, auto-calibration, and map-building system
2010 47 Sweden 15
PATENTS US7832126B2
Systems, devices, and/or methods
regarding excavating
2010 36
5
39
Switzerland 14
Finland 8
UK 7
US8325030B2
S. Africa 5
MAIN TECHNOLOGICAL Heat stress, plant stress and plant 2012 28
health monitor system
TRENDS
US8050206B2
2011 27
· Work with lasers Wireless network camera systems
· Seismology, Prospecting and US8235110B2 MAIN UNIVERSITIES MAIN COMPANIES AND/
seismic or acoustic detection. Preconditioning an oilfield reservoir
2012 22 OR R&D CENTERS
· Tunnels or galleries. · University of Sydney
US2011030586A1 · California Technology Institute
· Methods or guidelines for Carbonate products for carbon 2011 21 · Caterpillar INC.
reading or recognizing capture and storage
· Chinese University of Mining and Technology · Shell Oil CO.
printed or written character, · University of Jianghan
· Exxonmobil Upstream res CO.
US8585786B2 · Catholic University of Chile
or to recognize patterns. 2013 20 · Foro energy INC.
Methods and systems for briquetting solid fuel · University of Akron
· Systems that use reflection · University of Nevada · Tech resources PTY LTD.
or re-irradiation of the US2011096168A1 · Sandvik Mining & Constr OY.
Video delivery systems using wireless cameras
2011 16 · Southeastern University
electromagnetic waves · University of Utah Research Foundation · Halliburton Energy Serv INC.
that are not radio waves. · University of Western Ontario · Safemine AG.
228 / Mining technology roadmap 2035 Alta ley alta ley Mining technology roadmap 2035 / 229
05 GRAVITATING CORE CHALLENGES
449
Chinese University of Geosciences, Wuhan campus 20
93 91 University of Western Australia 20
88 2014 Chinese Academy of Geological Sciences 18
76 2015
Chinese Academy of Science 16
45 2013
2012
56 Islamic Azad University in Damavand 12
2010 Queen’s University 12
2011
230 / Mining technology roadmap 2035 Alta ley alta ley Mining technology roadmap 2035 / 231
05 GRAVITATING CORE CHALLENGES
INFOGRAPHIC/11
Technology Watch:
Operation (Patents)
TOTAL PATENTS MOST-CITED PATENTS ON OPERATION COUNTRIES WITH MOST PATENTS IN PLANNING
2010-2015 Patent Citations
212
US7776256B2 USA 136
Earth-boring rotary drill bits and methods of manufacturing earth- 75 13 5
boring rotary drill bits having particle-matrix composite bit bodies Germany 32
7 5 32
US7802495B2 Holand 13
56
Methods of forming earth-boring rotary drill bits 5
136 4 Canada 7
US7954569B2
PATENTS
51
Earth-boring bits Australia 7
US8517125B2 UK 5
28
Impregnated material with variable erosion properties for rock drilling France 5
7 Sweden 5
US7913779B2
Earth-boring rotary drill bits including bit bodies having boron China 4
23
carbide particles in aluminum or aluminum-based alloy
matrix materials, and methods for forming such bits 3 Chile 3
US8156871B2 22
MAIN Liner for shaped charges
232 / Mining technology roadmap 2035 Alta ley alta ley Mining technology roadmap 2035 / 233
05 GRAVITATING CORE CHALLENGES
364
Chinese Academy of Science 8
77 Indian Institute of Technology 8
68
59 2014 Russian Academy of Science 8
2011
COUNTRIES WITH SCIENTIFIC PUBLICATIONS
MAIN RESEARCH TRENDS N°
MOST-CITED
Engineering 153
PUBLICATION
USa 64
13
Geology 97 China 63
TOUGHREACT Version 2.0: 27 11 Iran 52
Ore processing 88 A simulator for subsurface
reactive transport under 64 15 22 63 Canada 27
Ecology and environmental sciences 71
non-isothermal multiphase 52 India 22
Water resources 49 flow conditions 22
Turkey 22
Geochemistry and Geophysics 39 Australia 21
Authors
Metallurgy / Metallurgic engineering 29 Xu, Tianfu; 21 Spain 15
Spycher, Nicolas;
Meteorology and Atmospheric Sciences 20 Sonnenthal, Eric; et al. Russia 13
Computer Sciences 15 France 11
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05 GRAVITATING CORE CHALLENGES
238 / Mining technology roadmap 2035 Alta ley alta ley Mining technology roadmap 2035 / 239
05 GRAVITATING CORE CHALLENGES
Water is also in high demand in concentration The below graph shows that the national
processes, from grinding to flotation, and to supply of grinding balls is expected to surpass
facilitate the transportation of process tailings. demand between 2017 and 2018, but after
Continental water sources have traditionally been 2019 national supplies will only suffice to
used but over recent years increased volumes supply those projects classified as probable
of seawater have been incorporated, with the and a portion of the ones considered possible.
consequential impact on energy consumption.
240 / Mining technology roadmap 2035 Alta ley alta ley Mining technology roadmap 2035 / 241
05 GRAVITATING CORE CHALLENGES
Other problems affecting the grinding They are currently widely used in CHALLENGES, SOLUTIONS AND R&D LINES
and flotation process have to do with developments involving control of multiple
18
See Chapter 6, Based on the information analyzed, the group
Smart Mining
the accumulation of large particles that variables in the crushing, grinding, flotation Section. of experts who participated in the technical
reach the rougher flotation cells and can and thickening processes. For their part, workshops defined the following challenges
have a negative impact on the flow of the providers of maintenance services and identified solutions and R&D LINES
slurry, creating dead zones and reducing have also been adapting their models for them, which are presented below.
the recovery rate of valuable minerals, and practices to these new trends, in
in addition to increasing maintenance particular proactive maintenance: Challenge No. 1: Increased productivity
costs. The flotation process also needs In the current context this considered essential
to efficiently deal with fine particles Monitoring and registering the key for making progress in the management
to make efficient use of the kinetic performance parameters of a given piece of assets, to reduce energy and steel
energy that the process demands. of equipment to analyze patterns or consumption and also to more efficiently
signals to determine its conditions and use and transport water to increase the
In addition to the aforementioned in this way plan specific maintenance productivity of the ore concentration stage.
operating costs, the capital cost activities and program the right moment
(investment) required to concentrate for intervening in a given asset. In particular, it must be noted that there are
minerals is very high and can currently concentration plants in operation
become a “bottleneck.” This makes While the use of predictive models for with froth flotation cell banks that have an
management of assets particularly failures to undertake programmed extraordinarily high power installed and
important in concentration plants. maintenance is an accepted practice, there their operation needs to be subjected to
is an opportunity to increase productivity a critical cost effectiveness analysis.
Smart technologies18 have emerged as a if the modeling of fatigue and corrosion in
means for optimizing the use of assets critical parts is improved so maintenance
and improving process efficiency. In can be carried out in consideration of the
addition to improving people’s safety, cost and likelihood of failure. Among the
these technologies help to stabilize trends in maintenance services if organizing
processes (lower variability), cut costs, maintenance around the reliability of
increase productivity and improve the assets, according to their operational
quality of intermediate and end products. context and expected maintenance costs.
242 / Mining technology roadmap 2035 alta ley alta ley Mining technology roadmap 2035 / 243
05 GRAVITATING CORE CHALLENGES
244 / Mining technology roadmap 2035 Alta ley alta ley Mining technology roadmap 2035 / 245
CORE CHALLENGE:
ORE CONCENTRATION RESOURCES
2
CAPACITIES
· Research in basic sciences
· Universities contribute to research,
instrumentation and control.
6
· Organizations for the transfer of knowledge.
SOLUTIONS SUPPLIERS
· Strengthen the development of local suppliers of
instrumentation, expert control, mechanization,
automation, robotization, information
management, optimization software, data
transmission, engineering design and specialized
support services.
24
ALLIANCES
· Alliances between national and international
universities and centers of excellence.
INFOGRAPHIC/13
Technology Watch:
Crushing (Patents)
77
Patent Year Citations
US7861955B2
2011 5
Wet-grinding gypsum with polycarboxylates UK 22
US8960337B2 3 Germany 16
High impact resistant tool with an apex width 2015 5 5 4 16
between a first and second transitions Australia 13
US8302890B2 1
2012 4 22 2 2 Canada 5
Modular ore processor
UK 4
US8022019B2
2011 3 Russia 3
Method of making proppant used in gas or oil extraction
PATENTS
US8434706B2 Chile 2
Overburden removal system with 2013 2
triple track mobile sizer 13 Switzerland 2
WO2010037215A1 China 2
2010 2 2
Method and apparatus for processing a sized ore feed France 1
MAIN EP2319624A1
Method for fine crushing of lump material
2011 2
TECHNOLOGICAL US2010044276A1
TRENDS Method and apparatus to create an oil sand slurry
2010 2
MAIN · Tech Resourses PTY LTD
DE102009018236A1
· Preliminary treatment Mobile crusher for use in open-cast mining for COMPANIES · Takraf GMBH
· Unimin Corp
of ore or scrap crushing broken rock, has loading belt connected
2010 2 AND/OR R&D · Joy MM Delaware INC
· Methods or ancillary devices with hopper, suspended by hydraulic cylinder on
or accessories especially upper ring support at raised and lowered position MAIN UNIVERSITIES CENTERS · Thyssenkrupp Foerdertechnik
and partially compensated by counterweight · Suncor Energy INC
adapted to to crushing · Chinese University of Mining and Technology
and disintegration US8182601B2 · Arter Teknolodzhi LTD
Powder formed from mineral or rock · University of Houston · Harnischfeger Tech INC
· Means of transport 2012 1 · University of Melboune
material with controlled particle size · Corporación Nacional
specially adapted to distribution for thermal films
underground conditions. del Cobre - Codelco
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05 GRAVITATING CORE CHALLENGES
46
PUBLICATIONS ADP Group of Companies 1
AGH Science and Technology University 1
11 11 Amec Americas Limited 1
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05 GRAVITATING CORE CHALLENGES
INFOGRAPHIC/15
Technology Watch:
Grinding (Patents)
TOTAL PATENTS MOST-CITED PATENTS ON GRINDING COUNTRIES WITH MOST PATENTS IN GRINDING
2010-2015
113
Patent Year Citations
US8147980B2 USA 38
Wear-resistant metal matrix ceramic composite 2012 8 6
parts and methods of manufacturing thereof 5 Australia 17
5
10 Germany 10
US7757976B2
Method of processing nepheline syenite powder 2010 7 4 4
38 Chile 6
to produce an ultra-fine grain size product
Denmark 6
US7954734B2
PATENTS
2011 7 5 India 5
Disruptor system for dry cellulosic materials
WO2012016286A1 Finland 5
2012 6
Sorting mined material UK 5
17
US7677079B2 Japan 4
2010 6
Method and device for sensing wear
6 France 4
US7861955B2
2011 5
Wet-grinding gypsum with polycarboxylates
US8960337B2
MAIN TECHNOLOGICAL High impact resistant tool with an apex width
between a first and second transitions
2015 5
TRENDS US7690589B2
Method, system and apparatus for the deagglomeration 2010 4
MAIN UNIVERSITIES MAIN · Smidth & CO AS F L
· Presses specially adapted and/or disaggregation of clustered materials COMPANIES · Unimin Corp
to specific ends · McGill University · Outotec OYJ
· General layout of US8302890B2
2012 4 · University of KwaZulu-Natal
AND/OR R&D · Metso Minerals France SA
separation in the plant
Modular ore processor
· University of Queensland CENTERS · Schlumberher Technology BV
· Control systems especially adapted US8157193B2 · University of Santiago de Chile · Tech Resources PTY LTD
to crushing and disintegration Waterless separation methods and 2012 3 · University of Melboune · Arter Technology BV
systems for coal and minerals
· Metalworking · KDH Humboldt Wedag GMBH
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05 GRAVITATING CORE CHALLENGES
296
Chinese Academy of Science 6
56 2015
United States Department of Energy 6
254 / Mining technology roadmap 2035 Alta ley alta ley Mining technology roadmap 2035 / 255
05 GRAVITATING CORE CHALLENGES
INFOGRAPHIC / 17
Technology Watch: Flotation (Patents)
88
Patent Year Citations
US7763166B2 USA 38
2010 16
Relocatable countercurrent decantation system 3 Canada 13
US8011514B2 13 9
Modified amine-aldehyde resins and 2011 11 3 Australia 10
uses thereof in separation processes Germany 9
38 4
US8424601B2 Brazil 5
System and method for minimizing the negative 2013 10
enviromental impact of the oilsands industry Japan 4
Russia 3
PATENTS
US8757389B2
Amine-aldehyde resins and uses 2014 10 France 3
thereof in separation processes 5 10
N. Zealand 3
US8133970B2
2012 9
Oxidized and maleated derivative compositions
2 Chile 2
3
US9114406B2
2015 7
Steam driven direct contact steam generation
US7922788B2
Process for recovering gold and 2011 5
silver from refractory ores
MAIN TECHNOLOGICAL US8025341B2
2011 5 MAIN UNIVERSITIES MAIN · Barrick Gold Corp
Mobile oil sands mining system
TRENDS COMPANIES · Basf AG
CN102085526B · Technical University of Aquisgran · BHP Billiton SSM Dev PTY LTD
· Expected effects of Recycling method of blast furnace dust 2012 5 · University of Manchester
AND/OR R&D · Cytec Tech Corp
flotation agents generated in steel making industry
· McMaster University CENTERS · Evonik Industries AG
· Specified materials treated US2011155651A1 · University of Osaka · Ex Tar Technologies INC
by flotation agents, Separation of copper minerals from pyrite 2011 2 · University of Utah Research Foundation · Geordia Pacific Chemicals LLC
specific applications using air-metabisulfite treatment
· Sumimoto Metal Mining CO
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05 GRAVITATING CORE CHALLENGES
109
AGH Science and Technology University 3
258 / Mining technology roadmap 2035 Alta ley alta ley Mining technology roadmap 2035 / 259
05 GRAVITATING CORE CHALLENGES
CORE CHALLENGE: HYDROMETALLURGY Thus, the industry has not incorporated currently operating (brownfield projects),
BACKGROUND
19
The main any new leachable deposits to its resource where the increasing depth of deposits will
processes
Copper Hydrometallurgy is the method involved are: base. While an average of 2 million tonnes of lead to the depletion of oxide ores. This,
used to process copper oxide ores and agglomeration, electrowon cathodes were produced from 2009 together with declining ore qualities, both in
some types of sulfides. It prompts diverse ROM leaching, to 2012, in 2013 and 2014 it fell to around 1.9 terms of ore grades as well as the leachable
physical and chemical reactions19 to Heap leaching, million and 1.8 million tonnes, respectively. quality, has led to recent estimates that
solvent
extract the copper from the rest of the extraction and just 12% of projected copper production in
crushed material, dissolving it in an acid electrowinning. In the same way, mining companies’ project 2026 will be cathodes produced through
solution (leaching stage) before then portfolios and future development plans are electrowinning, thus resulting in significant
continuing with a solvent extraction heavily based on maximizing mines that are idle capacity at electrowinning plants.
stage followed by electrowinning to
produce high-purity copper cathodes.
260 / Mining technology roadmap 2035 alta ley alta ley Mining technology roadmap 2035 / 261
05 GRAVITATING CORE CHALLENGES
In the coming years development of the Lastly, it is worth mentioning that significant
national mining industry will be based on the improvements in productivity could make the
exploitation of sulfide ore reserves (mostly extraction of marginal resources that are currently
chalcopyritic), for which mineral concentration not considered part of reserves profitable. In other
processes are currently used. However, in words, technological step changes could turn these
this future scenario, hydrometallurgy must liabilities into assets, as has happened before.
also address treatment of sulfide ores.
Very significant new processes and technologies
Hydrometallurgy is uncompetitive compared in the field of hydrometallurgy have been
to concentration, as the latter allows over 90% developed over recent decades. In late 1980,
to be recovered in a matter of hours while the the Lo Aguirre Mine in the Metropolitan Region
former obtains between 35% and 60% in periods implemented a cathode production plant based on
of over 300 days. Along these lines, there is a technologies that were new at the time, combining
clearly crucial need to endow hydrometallurgy a novel Thin Layer (TL) heap leaching process with
with technologies that allow it to increase solvent extraction and electrowinning operations.
its efficiency in terms of recovery times.
It was the first plant in the world to apply the
In addition to this, it must be kept in mind that TL heap leaching process on a commercial
energy is the most significant cost item in the scale, in addition to being the first commercial
hydrometallurgical process. Depending on the application in Chile of the copper solvent
purchase price, it represents between 25 and 30% extraction and electrowinning process.
of the total (with between 80% and 90% of this
expense generated by the electrowinning process) This new process made it profitable to extract
copper from ores with grades below 0.5%,
In the case of water, while its consumption is as is currently the case in mines like El Abra,
relatively low (0.1 to 0.2 m3 per ton of ore), Radomiro Tomic and Lomas Bayas. TL heap
potential future usage restrictions associated leaching integrated with solvent extraction
with the challenges mentioned earlier in this and electrowinning became one of the most
book and the implications this might have for important innovations in copper mining in
the leaching of low-grade sulfide ores could metallurgy in the 1980s and 1990s, both in
halt the implementation of this process. Chile as well as in the rest of the world.
Photograph: Codelco (city of El Salvador)
264 / Mining technology roadmap 2035 Alta ley alta ley Mining technology roadmap 2035 / 265
05 GRAVITATING CORE CHALLENGES
TABLE/28
Solutions and R&D Lines.
Challenge: increasing mineral
resources and reserves
Concentrate leaching.
Use of future idle capacity Leaching of white metal, dusts.
On-site leaching.
3
CAPACITIES
· Research in basic sciences
· Universities contribute to research, instrumentation
and control.
6
SUPPLIERS
· Strengthen the development of local suppliers of
ALLIANCES
10
· Alliance between national and international
universities and centers of excellence.
· Alliance between industries and Technical Training
INFOGRAPHIC/19
Technology Watch:
Electrowinning (Patents)
TOTAL PATENTS
61
MOST-CITED PATENTS COUNTRIES WITH MOST PATENTS
2010-2015 Patent Year Citations
5 Canada 16
US7901561B2 USA 11
Method for electrolytic production 2011 12 3
16 4
and refining of metals Bahamas 7
4
US7846233B2 6 4 6 Switzerland 6
2010 11 11
Leaching process for copper concentrates
7 South Korea 6
US8658007B2 Norway 5
2014 4
Oxygen-producing inert anodes for SOM process
Luxembourg 4
US7846309B2
2010 3 France 4
Metal electrowinning cell with electrolyte purifier
US7740745B2 China 4
2010 3
PATENTS
Non-carbon anodes with active coatings UK 3
CN101717969A
Alloy material suitable for inert anode 2010 3
of metal fused-salt electrolysis cell
US8784639B2
Electrochemical process for the recovery
MAIN COMPANIES AND/
2014 2
of metallic iron and chlorine values from OR R&D CENTERS
iron-rich metal chloride wastes
US8598473B2 MAIN UNIVERSITIES · Alcan INT LTD
Bus bar electrical feedthrough 2013 2 · Aluminum Of America
MAIN for electrorefiner system · University of Seoul Research and · Aluminum Corp of China LTD
TECHNOLOGICAL US2011000782A1
2011 2
Development Foundation · BHP Billiton SALTD
Aluminum recovery process · University of Alabama · Elkem AS
TRENDS · Boston University · Green Metals LTD
US8070851B2
2011 1 · University of British Colombia · Moltech Invent SA
Not identified Chloride heap leaching
· Free University of Brussels · Pechiney Aluminium
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05 GRAVITATING CORE CHALLENGES
53
San Carlos Federal University 4
University of Alexandria 3
10
University of Laval 3
9 2013 9 9 University of Monash 3
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05 GRAVITATING CORE CHALLENGES
INFOGRAPHIC / 21 Technology
Watch: Solvent Extraction (Patents)
TOTAL PATENTS MOST-CITED PATENTS ON FLOTATION COUNTRIES WITH MOST PATENTS IN FLOTATION
2010-2015
141
Patent Year Citations
Japan 38
9
US8177881B2 USA 33
2012 8 6
Method for extracting and separating rare earth elements 12 12
US7829044B2 4 Australia 12
Phosphonamides, process for producing 2010 7 Germany 12
33 3 5 38
the same, and use thereof
Canada 12
EP1752550B1
2014 5
Method of recovering nickel and cobalt Finland 9
US7686865B2 UK 6
PATENTS
Method and system for recovering metal 2010 6
from metal-containing materials 12 China 5
US7935322B2 France 4
Method and system for recovering metal 2011 4
from metal-containing materials Spain 3
WO2012149642A1
Processes for recovering rare earth 2012 3
elements from various ores
US8916116B2 MAIN UNIVERSITIES MAIN COMPANIES AND/
Separation of iron from value metals 2014 3 OR R&D CENTERS
in leaching of laterite ores · University of Nevada
MAIN TECHNOLOGICAL US8147782B2 · University of British Colombia · Cognis Ip Man GMBH
TRENDS Producing nickel hydroxide suitable for pelletization with 2012 3 · Central South University, China · Commw Scient IND RES ORG
iron-containing ore and for stainless steel manufacture · Chung Yuan Christian University · Cytec Tech Corp
· Solid waste management US7750066B2 · University of KwaZulu-Natal · Freeport McMoran Corp
technologies Treatment of aqueous compositions 2010 4 · Catholic University of Lovain · JX Nippon Mining & Metals Corp
· Obtaining metals from rare earths containing contaminants · Complutense University of Madrid · Nippon Mining CO
· Obtaining noble metals JP4524394B2 · University of Nantes · Outotec OYJ
· Metal composites Extraction Method Of Am, Cm And 2010 7 · Northwestern University · Porcess Res Ortech INC
from rare earths Ln Existing In Acidic Solution · University of Osaka
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05 GRAVITATING CORE CHALLENGES
93
2010-2015 PUBLICATIONS Poznan University of Technology 4
2014
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05 GRAVITATING CORE CHALLENGES
INFOGRAPHIC/23
Technology Watch:
Leaching (Patents)
291
Patent Year Citations USA 80
32
Canada 45
US8852777B2 45 17
Methods for the preparation and purification 2014 20 Japan 39
of electrolytes for redox flow batteries
11 39 Australia 32
80
US7892505B2
Hydrometallurgical process for the treatment 2011 17 Finland 32
of metal-bearing sulfide mineral concentrates Germany 17
PATENTS
US7858056B2 Chile 11
2010 12
Recovering metals from sulfidic materials 8
32 China 11
US7846233B2 10
2010 11 S. Africa 10
Leaching process for copper concentrates
11
US2010155330A1 Brazil 8
2010 11
Target material removal using rare earth metals
MAIN US7771700B2
TECHNOLOGICAL Target material removal using rare earth metals
2010 11
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05 GRAVITATING CORE CHALLENGES
493
98 Chinese Academy of Science 11
94 University of Concepción 10
2013
79 2014 University of Quebec 10
77
2010 72 73 University of U|tah 10
Chemistry 65
PUBLICATION 51 38 105 22 Turkey 38
20 India 37
Mineralogy 62 Low grade ores - Smelt, 37
leach or concentrate? Canada 36
Materials sciences 54 South Korea 22
Biotechnology and Applied Microbiology 14 Authors
51 Iran 20
Norgate, T
Water resource 13 20 South Africa 20
Jahanshani, S
16 Chile 16
Toxicology 11
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Photograph: Codelco (Laboratory, Chuquicamata)
06 CORE
ENABLERS
06 CORE ENABLERS
dimensions that,
future challenges that the national mining
industry. In fact, human capital is something
that can act as an enabler to materialize future
investment projects, improve the industry’s
without being
productivity and incorporate new technologies
into the mining process and its supply chain.
Making progress toward an innovative mining
sector depends to a great degree on the quantity
exclusive to the
and quality of the human capital available.
mining process,
To this end, it distinguishes between specialized
human capital - a concept coined to allude to all
technical and professional aspects that, without being
dedicated to scientific and technological development
condition the
tasks, require a certain level of specialization to be
able to work in the mining industry - and advanced
human capital - which involves human resources
dedicated to research and development tasks.
to undertake its
the materialization of future projects will,
among other things, require new technologies
and aligning the quality of training that human
capital receives with the industry’s new needs.
development plan
The following team from Fundación
In this context, the challenge of specialized human Chile was in charge of drafting this
capital related to the mining industry is mainly section: Francisco Klima, Tomás
focused on three dimensions: quantity, quality and González, Paulina Peña, Nicole
adjustment of training to the industry’s new needs. Valdebenito y Hernán Araneda.
With regard to quantity, the Study of the Even through the industry is currently the supply and demand of quality
Workforce in Large-Scale Chilean Mining going through a period of contraction and pertinent human capital.
20
Regarding the
impact that the
(Mining Skills Council, 2014) estimates that by due to the drop in the price of copper, a mining industry
2023 the mining industry will need 27,000 new central issue that the country and the First, the connection between the productive of the future will
workers, with the biggest gaps in the supply mining industry must address is the sector’s needs and the abilities and skills have on the role
and demand of maintenance workers and availability of enough specialized workers that are developed in the professional of maintenance
workers, see
operators of mobile and fixed equipment. that fulfill the industry’s long-term needs. training sector is not strong enough. The for example
lack of such ties is one of the main problems the report by
This incremental demand is explained by the In terms of the quality of human capital, for the development of technical education CRC Mining
(2014) entitled
creation of new job positions and the need to evidence in Latin America proves that (Crespi, Fernández-Arias & Stein, 2014).
Maintainer of
replace staff due to the high turnover from progress in coverage without improvements the Future.
retirement that is projected in the coming years. in quality or relevance have not been This means that mining firms have fewer
effective in fostering productive development possibilities to find staff with the abilities
(Crespi, Fernández-Arias & Stein, 2014). and skills to produce competitively.
GRAPH/42 In the case of mining, productivity In general, companies have to invest
improvements are heavily associated with resources to retrain the education system’s
Accumulated demand for the inclusion of better trained workers. graduates in its needs, which has a direct
internal workers and suppliers effect on productivity and hiring costs.
Lastly, training that human capital must
(Thousands of people) adapt to the industry’s new needs. Second, technical training institutions
must improve the quality and pertinence
In fact, the use of robotics, automation and of their programs. Technical Professional
30
27,3 IT in mining, among other technologies, will Secondary Education (EMTP) has not
24,1 require new worker profiles to be trained defined criteria on the minimum conditions
Thousands of people
25
21,6 6,2 in the skills to use these new technologies. that an educational institution must fulfill
20 17,8 5,8
15,1 This entails an enormous challenge to offer a given range of specialties,
13 5,8 4,6
15 4,3 4 to the professional training sector, which should be verified in their official
8,1 10,9 3,3 3,6 3,5 which must react to the technological acknowledgment (Sevilla, 2012).
6,2 3
10 2,4 2,7 change in Chilean mining opportunely
1,2 1,9 2,4 16,5
2,9 1,4
2,4 12,3 14,3 (Commonwealth Scientific and Industrial For their part, despite the fact that Higher
5 1,2
6,1 7,3 8,8
10,5 Research Organisation [CSIRO], 2014)20 Education Institutions (IES) are governed by
2,9 3,8 4,8
0 the Higher Education System to Guarantee
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Addressing these challenges requires Quality Education, this mechanism does not
overcoming a series of problems include the specificities of technical education
that are hindering an adjustment in or its adaptation to the world of training.
Total retirement of internal staff and suppliers
Demand of projects in execution
Demand of projects under evaluation Source: Consejo Minero (2014)
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06 CORE ENABLERS
Third, a significant number of establishments and They are all essential to addressing the R&D tasks related to mining. This number that this survey provides does not allow
institutions are equipped to standards that are challenges of productive sectors and society must be considered an underestimate, as it disaggregating the results to quantify the
inferior to the training standards that the industry to achieve development (National Council on does not include researchers who work for number of researchers associated with mining,
requires (Sevilla, 2012). Technical Training Centers, Innovation for Competitiveness (CNID), 2009) companies that supply the mining sector. it can be done with the corporate sector.
Professional Institutes and universities that offer
programs in technological issues pertinent to Over recent years the number of postgraduate According to the Fourth National Survey on The following table shows that there are 123
mining follow conventional educational systems programs, master’s degrees and doctorates, has R&D Spending and Staff, the workers dedicated people working full time equivalent (FTE) in
that are not based on skills and with scant expanded considerably, which is explained by the to R&D can be divided into three categories: R&D tasks at mining firms, which is just 3% of
equipment to train for the workplace, simulating scholarship program implemented by the National “Researchers,” “technicians and support staff” the total R&D staff in the country working for
real operation or maintenance conditions Commission for Scientific and Technological Research and “other support staff” (Economy Ministry companies. Of them, 49 are researcher and the
(See Mining Skills Council, 2014, pp 43-59). (Conicyt). The purpose of this Advanced Human Capital (Minecon), 2015). Even though the information remaining 74 are engaged in support tasks.
Furthermore, the country does not have validated policy is to increase the number of researchers and
standards to determine the equipment required professionals with high levels of preparation in all areas
for mid- and high-level mining specialties. of knowledge, for the development of Chile and its table/29
active insertion in a globalized world (Conicyt, 2016).
Lastly, there are no effective mechanisms for
Staff dedicated to R&D tasks
institutional and curricular connection between Illustrating the current scenario for advanced in mining companies (2013)
Technical Professional Secondary Education and human capital in Chilean mining is a complex
Higher Level Technical programs, thus hindering task, given the difficulty that is entailed in
the development of training trajectories between relating the areas of knowledge that research Technicians Other
the two levels. This increases the cost of training is undertaken in with economic activities and Researchers and support support Total
and reduces the efficiency in human capital productive processes. Even so, information exists staff stafF
investment and that of the job market. A joint to establish certain guidelines on the matter.
effort is required to deal with these problems
and challenges, one that involves the mining An analysis of national surveys of R&D workers Mining 49 39 35 123
sector, training institutions and the state. and doctors residing in the country is presented
. the below, the results of a consultation that
Total 1.448 1.413 1.091 3.953
ADVANCED HUMAN CAPITAL Fundación Chile undertook with national R&D
Advanced human capital involves human centers and a review of the existing postgraduate
resources associated with sciences and programs related to mining in the country.
Proportion compared to national total 3,4% 2,8% 3,2% 3,1%
technology, in addition to the range of
technical professionals or university graduates Based on the information collected by
who receive additional training or courses Fundación Chile and the public data available,
after formal undergraduate education. an estimated 600 people are dedicated to Source: prepared by authors based on Minecon (2015)
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06 CORE ENABLERS
It is estimated that the number of their research (Minecon, 2015a). Lastly, an important aspect to be analyzed has
researchers in Chile dedicated to R&D
21
Estimate based to do with the quantity and characteristics of
on the report
tasks for mining firms represents just “Extraction of mineral resources,” “Business the mining-related postgraduate programs
3.6% of the total number of researchers “environmental sustainability in Expenditure on that are offered by Chilean universities.
engaged in such tasks in Australia.21 mining activities” and “first stage Research and
treatment in mining activities” are Development by There are currently 40 postgraduate programs
industry sector”,
For its part, the First Trajectory Survey of some of the main areas of research (2013-14). related to mining. Of them, 28 are PhD programs,
PhD Holders Residing in Chile reveals that declared by people with doctorates, 11 are master’s degrees and one is a postgraduate
there were 7,670 professionals with a with 45%, 44% and 37%, respectively. course. Of the total, 6 are in the area of sciences
PhD working for companies, universities and the remaining 34 are in technological areas.
and research centers in 2011. Of them, They are followed by the sub-objectives
351 said that the area of “mineral of “other mineral resources, with 25%, The following graph shows the distribution of
resources” was one of the targets of and “mine exploration,” with 17%. postgraduate programs, classified by the mining
process area that they belong to, where maintenance
is the one with the most programs associated with
it (17), followed by geology and metallurgy, with
table/30 8 and 6 programs, respectively (see graph 43).
Objective of Research,
disaggregated
Graph/43 20%
SUB-OBJECTIVE QUANTITY % OF TOTAL ENGAGED IN R&D Postgraduate programs 8%
Source: Minecon (2015a) Source: prepared by authors based on information from SIES (2013)
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Photograph: Power Train Technologies
06 CORE ENABLERS
Thus, when the enrollment in programs according Despite the fact that there is scant information especially in areas such as automation,
to the process area is analyzed, one can see that the available to analyze advanced human capital underground mining and operation and
largest proportion (33%) is concentrated in programs in mining, the information presented reveals a maintenance of mining equipment, following
related to “maintenance.” They are followed by significant gap in this area. On the one hand, the the study programs and needs defined by the
programs associated with “mine” processes and mining industry concentrates a small number Mining Skills Council. It is also suggested that
“geology,” with 27% and 15% of enrollment. It should of researchers compared to other economic private institutions be strengthened using
be noted that, despite the fact that there are just sectors, something paradoxical when the relative existing instruments so they can focus on
three programs in the “mines” area, it concentrates a size of the industry in the country is considered, mining. These centers (public and private)
significant proportion of the postgraduate students. along with the complexity of the challenges it must be transformed into world-class
faces. On the other, the gap in advanced human training hubs, where technical-professional
capital for mining becomes self-evident when secondary schools and higher education
GRAPH/44 Chile is compared with other mining countries institutions share skills and innovate to
like Australia. This is an area that the country improve the results of education, in line with
Enrollment in programs and the mining industry must address if they sector’s demands for greater productivity.
related to mining want to consolidate their future aspirations.
· Expanding the base of primary level researchers
Proposed action to develop the critical human in strategic areas defined by the public-
400
capital skills established in the Agenda private council in the next two years, laying
350 Mining: A Platform of the Future for Chile the foundation for significant long-term
The Agenda Mining: A Platform of the Future growth. Targets for expanding the base of
300 for Chile proposes actions to address the researchers: 2 years, 100 researchers; 5 years,
development needs for human capital 270 researchers; 10 years, 1,000 researchers.
250
Matrícula
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SUPPLIERS AND INNOVATION diversification and technological development ii) Increased interaction among organizations; scale testing. In Canada the Norcat Underground
Mining industry suppliers play a central role in for mining”), the challenges that the industry iii) Increased specialization and improved Centre, which has been operating since 1997
this roadmap. The vision established for 2035 faces, the knowledge and experience that the capacities in organizations; iv) Development of in an inactive mine in Onaping, Ontario, stands
(see chapter 3, section “Strategic vision through country has accumulated in the area and the institutions, policies and shared priorities that out. With this center, Norcat offers access to
2035 and main impact metrics”) considers demand for copper create a scenario that allow cooperation and mutual support. One of the spaces for testing technology prototypes and
the development of a sector of knowledge and is favorable toward the creation of a new keys to explain the development of capacities at for practical training in mining. Part of the
technology intensive suppliers that are capable knowledge exporting sector that offers real Australian suppliers has to do with the existence investments made on this center has been in
of exporting products and services, which is possibilities for productive diversification. of a significant number of complex challenges and alliance with local and international mining
operationalized in two targets: i) creation of in establishing collaborative relations between industry suppliers, which test and exhibit their
250 world-class suppliers; ii) achieving US$4 The sector of mining industry suppliers mining firms and suppliers (Scott-Kemiis, 2012) products in Norcat. For its part, Australia has
billion in knowledge-intensive technologies includes over 5,000 companies (Fundación spaces for field tests, practice and training
and services related to the mining industry. Chile, 2014), which sell around US$20 billion to Considering international experience and local associated with the Deep Exploration Technologies
large-scale mining (except for electricity and specifications, the question emerges regarding Cooperative Research Centre (DET CRC), located
The fundamental importance of the suppliers fuels) (Fundación Chile & Cochilco, 2013). the barriers that have prevented the Chilean in an abandoned mine outside Adelaide.
sector in the strategy for the future development suppliers sector to deploy its full potential. Along
of the mining industry is related to two areas: In 2014, 329 suppliers exported products and these lines, an article by the Center for Copper Another barrier that has hindered the sector’s
services for a total of US$537 million. However, and Mining Studies (Cesco) and Fundación development has to do with the incentives for the
· On the one hand, the complexity and magnitude it should be noted that the sector’s exports are Chile (2013) sheds some light on this. development of innovation. As an industry that
of the challenges that the mining industry concentrated in a small number of suppliers, is conditioned by the mineral price, incentives
faces will require the incorporation of new as five companies exported 61% of the total. Historically, the relationship between mining in mining firms are focused on the short term,
knowledge, innovation and technologies, the The majority of companies exported less firms and their suppliers has been marked by the meaning that the development of innovations,
consolidation of a METS (Mining Equipment, than US$1 million (Fundación Chile, 2015) mere transaction for a product and/or a service, whose results are observed in the medium
Technologies and Services) suppliers sector is which has created information asymmetries and long terms, becomes less of a priority.
an enabling factor for the future development Australian METS suppliers are a reference between the two stakeholders with regard to the
of the Chilean mining industry. Around 60% of for Chile, as they are characterized by being challenges and problems that the mining industry Lastly, access to financing for the development of
mining companies’ operating costs correspond internationally competitive and innovative must resolve, thus making the development of innovation and R&D is a central issue that can condition
to the purchase of goods and services (Meller & Gana, 2015). The sector is comprised new solutions and innovations more difficult. the potential growth of mining industry suppliers.
(excluding energy and fuels), meaning that a of around 1,500 companies with estimated
good part of the mining industry’s sustainability total sales of AUS$90 billion (US$87.1 billion) Many of the innovations produced in the The majority of developed countries spend around
and competitiveness precisely depends on and exports for around AUS$15 billion mining industry require a pilot phase on a 2.5% of GDP on R&D, while in Chile it is barely
the sustainability and competitiveness of its (US$14.5 billion) in 2013 (Autsmine, 2013). “real scale.” Given that the relations between 0.4% (Meller, 2015) Furthermore, if one analyzes
suppliers (Fundación Chile & Cochilco, 2013). suppliers and suppliers and mining firms have R&D spending according to socioeconomic
Scott-Kemis (2012) argues that the consolidation been transactional, the space for undertaking objective, one can see that just 13% of what the
· On the other hand, currently unique of a sector of suppliers around a resource tests at mine operations has been limited. country spent on R&D in 2013 was allocated to
conditions exist to promote the development industry etnails articulating a cluster of mining (Minecon, 2015), which contrasts with the
of knowledge and technology intensive related and independent institutions, which One alternative to facilitate such spaces, industry’s importance in the national economy. In
services for mining. As noted in preceding entails four fundamental processes: i) something that exists in other parts of the world, addition, the risk capitals market has not managed
chapters (see chapter 3, section “Productive Entry and creation of new institutions; is to create spaces specially dedicated to real to establish effective relations with the sector.
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These issues are problems that the country must and technology step changes projects, SMART MINING
address if it wants to foster the development through the sharing of information, risks and Addressing the challenges that Chilean copper
of a mining suppliers sector that is knowledge benefits (includes intellectual property). mining faces, which have been presented
and technology intensive and in that way · Raising the visibility of the suppliers sector, throughout this book, requires the incorporation
contribute toward consolidating the aspirations characterizing its contribution to the of information and communications technologies
of the Chilean mining industry in the future. economy and its business development with advanced monitoring, control, optimization
needs, based on the best information and autonomous operation capacities.
Actions to develop a knowledge intensive available and validated by third parties.
sector of Mine Equipment, Technology and According to Porter & Heppelman (2014),
Services suppliers as proposed in the Agenda · Undertaking a comparative study of financing these four capacities (monitoring, control,
Mining: A Platform of the Future for Chile. for mining and the suppliers of Mine optimization and autonomy) constitute an
The gaps described in the above subsection Equipment, Technology and Services (METS) smart product, where each of these needs
have been addressed in the form of a in Chile and the world, focused on making the one preceding it to be able to develop.
plan of action in the Agenda Mining: A Chile an attractive place to finance projects,
Platform of the Future for Chile. enterprises and technology development. This Technologies on security, storage, the internet
study must propose concrete strategies for of things, big data, cloud computing, sensor
Regarding the development of a sector the training of human capital for financing, networks, mobility and robotics are increasingly
of knowledge intensive suppliers, the modification/creation of regulations to crucial to improving industries’ productive
following actions are proposed: improve private financing options and to factors by impacting competitiveness,
· Expanding the number of mining companies attract international investors and experts. the added value of products and services,
that participate in and strengthen the operational excellence and exports.
World-Class Suppliers Program (PPCM) · Creating a consulting program on the
or similar, identifying the challenges raising of capital for the development of In addition to this, it is important to note that
that scaling poses and implementing the internationalization strategies for a series smart products give way to the emergence of
corresponding actions to close gaps. of high-potential Chilean METS suppliers smart services that, by taking advantage of the
capacities that these products possess, change the
· Designing a program to attract major global · Reviewing the current regulations on risk dynamics of the interaction between companies
suppliers to get them to install capacities, capital funds to attract expert investors to and between them and their clients, suppliers
in cooperation with relevant local suppliers, Chile to speed up the packaging of products, and the general ecosystem. For this reason,
incorporating them into the value chain. technologies and companies based in Chile. the phenomenon of smart industries has been
described as “the fourth industrial revolution.”
· Commitment by mining firms and their · Creating public financing programs in
respective suppliers to facilitate contractual line with the scale and development This section was drafted by Tomás
frameworks specific to incremental innovation cycles of METS companies. González and Sergio Burdiles of
the Smart Industries Program.
We thank Juan Rada and Nelson
Cubillos for their comments.
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06 CORE ENABLERS
For Chile to be able to take full advantage of Along these lines, the Strategic Smart Industries 3. Development, validation and
the opportunities that smart mining presents, Program designed a project aimed at creating a implementation of standards for plug &
it not only needs to make progress on the Standards Organization for Mining Interoperability work interoperability, aimed at drafting a
development of digital infrastructure, technologies (SOMIN) whose goal is to develop, implement and series of standards, guides and tools for
and data management, but the challenges promote the adoption of world-class standards for the adoption and world-class certification
associated with management and coordination the interoperability of mine equipment and systems. of the interoperability of current mining
of stakeholders must also be resolved. processes considering manual operations.
This organization’s focus will consider
Corfo has been promoting the Strategic Smart the following components: 4. Development, validation and implementation
Industries Program in the framework of its of standards for plug & work interoperability,
Strategic Smart Specialization Programs, 1. Development of architecture for mining aimed at drafting a series of standards,
whose objective is to “build and improve the interoperability. In this component the idea is for guides and tools for the adoption and world-
competitive, technological and coordination Chile to become a leader in the development of class certification of the interoperability
capacities that allow a platform for vertical architecture that groups together and identifies of current and future mining processes
digitalization of a series of strategic productive the families of standards, the methodology to considering remote controlled and semi-
sectors to be enabled,” including mining. The be used for their development and to validate autonomous and autonomous operations.
Program has identified the following aspects to the elements considered in the current
make progress in the aforementioned direction: architecture for the interoperability of mines. A large number of the solutions and R&D lines
identified in the gravitating core challenges
· Quality and coverage of digital infrastructure. 2. Capacity to integrate suppliers and mining (chapter 5) lead to the development of
· Development, adaptation and improvement companies, the objective of which is to technologies associated with smart mining.
of architecture and international standards identify a model for evaluating integration Making progress along these lines will allow the
for interoperability of mine operations. capacities and an assessment mechanism national mining industry to address the short-,
· Level of vertical specialization of human capital for suppliers and mining companies. medium- and long term challenges it faces
· Level of vertical specialization of digital sector
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Fotografía Max Donoso (Centro de Estudios Científicos Valdivia)
07 Strategic
Priorities
the Roadmap:
Implementing
07 Implementing the Roadmap: Strategic Priorities
Based on the
Based on the challenges identified in the process
of drafting the Road Map, eight strategic priorities
were identified for dealing with the problems
noted. A project with its respective components
challenges
and associated benefits was conceptualized
for each of these priorities. Said priorities and
their respective projects are described below:
identified in the
UNDERGROUND MINING: DEVELOPMENT
OF LARGE-SCALE DEEP MINING
A core challenge to the industry’s future
sustainability is improving levels of productivity
process of drafting
by underground mines to make the future
development of large-scale deep mining
sustainable. Building, managing and operating
large-scale underground mining projects poses
strategic priorities
automation, remote operation and robotization
will help to make the transition to continuous
underground mining that is safer (zero accidents),
more productive and has lower production costs.
problems noted
on the projects suggested
during the drafting of the
Technological Road Map for
Mining through 2035 and priorities
set by the Alta Ley Board.
BENEFITS
Increased productivity.
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07 Implementing the Roadmap: Strategic Priorities
TABLE/32
Improving Competitiveness
Of Smelting And Refining
PROJECT
COMPONENTS
Technological Innovation for Smelting and Refining
Optimization of arsenic distribution in BBF fusion furnaces to achieve higher
volatilization and dissolution in the slag.
COMPONENTS
Adaptation, validation and implementation of pilots programs using foreign
Adaptation of emerging technologies for continuous conversion of white metals to technologies with low capital and operation costs for the control of As, Sb and Bi.
the conditions of national smelters.
Development of instrumentation and expert control systems for operational control BENEFITS
of bath smelting furnaces.
Improve gross margins.
Development and validation of phenomenological models for the use of High
Pressure Nozzles (HPN) in bath smelting furnaces. Increased revenues from higher recovery rates for copper and other metals.
Pilot-industry scale validation of molten layer technology. Increase security and improve labor conditions.
Development of technologies for the recovery of metals that are of economic Development of world-class specialized suppliers.
interest, from the residues produced in the smelting and refining process.
Development of advanced and specialized human capital.
Design and development of technologies for electro-refining of Cu blister granules
(eliminating the fire-based refining stage of the smelting process) using solid membranes.
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07 Implementing the Roadmap: Strategic Priorities
BENEFITS
Opportune identification of potential risk factors associated with the operation of dams.
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07 Implementing the Roadmap: Strategic Priorities
BENEFITS
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07 Implementing the Roadmap: Strategic Priorities
BENEFITS
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07 Implementing the Roadmap: Strategic Priorities
The sustainable economic development of copper Review of regulations on access to mine property, adapting them to international
mining depends on strong management of natural standards with an emphasis on new actors.
resources and the capacity to exploit them efficiently.
Today one can observe a high level of concentration Improving public pre-competitive geological information through an online
and low level of turnover in mining property, which integrated database that is continually updated.
is translated into an inefficient use of the resource.
There are currently a series of problems that, if Developing promotion and risk capital instruments to incentivize exploration.
overcome, will make the development of exploration
activities more dynamic.
Modifying regulations on duties and exploitation deadlines associated with assigned
mining concessions and adapting them to international standards.
BENEFITS
Increased probability of finding new mineral deposits with higher ore grades,
increasing mining activity, improving productivity and costs and increasing the
sector’s contribution to the country.
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07 Implementing the Roadmap: Strategic Priorities
BENEFITS
Creating local capacities for the monitoring, maintenance and operational continuity
of autonomous systems.
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07 Implementing the Roadmap: Strategic Priorities
The mining industry’s operating conditions have Updating skills framework and development of training packages.
become more and more demanding and the
Defining learning standards by level and specialty and implementation in technical
materialization of future projects will, among other
training institutions for mining sector.
things, require new technologies and aligning the
quality of training that human capital receives with Identifying and evaluating educational technologies for technical training in the
the industry’s new needs. mining sector.
Designing and implementing training and education models for administrators,
teachers, and instructors.
Developing a sectoral labor practice program.
BENEFITS
Improve quality of the career paths open to young people studying mining specialties.
Improve absorption capacities and usage of technologies used in the mining sector.
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