agenda - jogmec · • we expect a significant deficit in the custom market throughout the next...
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Copyrights © 2018 Codelco Chile. Todos los Derechos Reservados. | Copyrights © 2018 by Codelco Chile. All Rights Reserved. 1CODELCO CHILE – Leading The Treatment of Arsenic - JOGMEC
Agenda
CODELCO’S OPERATIONS• Ministro Hales & Chuquicamata 01
CODELCO ACHIEVING ITS GOALS• Treating and Marketing Complex Cucons02
GLOBAL BLENDING CAPACITY• Enough capacity worldwide 03
SOLUTIONS• MH Roaster
• Ecometales04
CONCENTRATES MARKET OUTLOOK• Top Players
• Supply & Demand05
FUTURE CHALLENGES• Leading the way for treating complex
materials06
Copyrights © 2018 Codelco Chile. Todos los Derechos Reservados. | Copyrights © 2018 by Codelco Chile. All Rights Reserved. 2CODELCO CHILE – Leading The Treatment of Arsenic - JOGMEC
MINISTRO HALES AND CHUQUICAMATA UNDERGROUND1 CODELCO’S OPERATIONS
DMH, Codelco's most recent projectdevelopment started in November 2013. It willproduce over 9 millions tones of copperconcentrates.
Chuquicamata Underground is a project over a40 year mine life. The operation will deliverapp. 41 million tones of copper concentrate.
Each ore contains a significant amount ofarsenic (above the 0,5% arsenic level).
Copyrights © 2018 Codelco Chile. Todos los Derechos Reservados. | Copyrights © 2018 by Codelco Chile. All Rights Reserved. 3CODELCO CHILE – Leading The Treatment of Arsenic - JOGMEC
DMH production started in 2014, however,Roaster began its operation a year later.
During Roaster ramp up we focusedmainly on:
• Blending
• Marketing of high As concentrate (tokey smelters)
Blending was a short term solution whileRoaster achieved its nominal capacity.
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
-
50
100
150
200
250
300
2014 2015 2016 2017 2018
Ars
enic
co
nten
t
ktm
co
pper
co
ncen
trat
e
DMH Copper Concentrate Sales 2014 - 2018
Sales (ktm) Arsenic content (%)
2 CODELCO ACHIEVING ITS GOALS
Source: Codelco
Copyrights © 2018 Codelco Chile. Todos los Derechos Reservados. | Copyrights © 2018 by Codelco Chile. All Rights Reserved. 4CODELCO CHILE – Leading The Treatment of Arsenic - JOGMEC
0%
20%
40%
60%
80%
100%
120%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
201
0
201
1
201
2
201
3
201
4
201
5
201
6
201
7
201
8
201
9
202
0
202
1
202
2
202
3
202
4
202
5
202
6
202
7
202
8
202
9
203
0
MT
MS
Complex (LHS) Clean (LHS)
Blending Capacity (LHS) Percentage Utilization (RHS)
Production & Blending Capacity to Treat Complex Cucons
As of 2010 the global capacity to handle blending outgrows the production of complexconcentrates. Thus there is no shortage of worldwide blending facilities.
3 GLOBAL BLENDING CAPACITY
Source: Wood Mackenzie
Copyrights © 2018 Codelco Chile. Todos los Derechos Reservados. | Copyrights © 2018 by Codelco Chile. All Rights Reserved. 5CODELCO CHILE – Leading The Treatment of Arsenic - JOGMEC
DMH Roaster, which is the largestroasting facility in the world, has thetechnical solution to treat high arsenicconcentrates efficiently.
Copper Concentrate Capacity : Approx.610kdmt per year.
Arsenic Capacity : 38ktpy of arsenic.
Spare capacity: 23ktpy of arsenic.
0
100
200
300
400
500
600
700
Annual Treatment Roasting Capacity (kdmt)
Ministro hales
Boliden
Gaspe Copper
TMMIC
Lepanto
DMH ROASTER IS THE LARGEST IN THE WORLD
4 HOW CODELCO HANDLES HIGH ARSENIC
Source: Codelco
Copyrights © 2018 Codelco Chile. Todos los Derechos Reservados. | Copyrights © 2018 by Codelco Chile. All Rights Reserved. 7CODELCO CHILE – Leading The Treatment of Arsenic - JOGMEC
Treatment of complex concentrates at our own smelters: CHUQUICAMATA and POTRERILLOS.
ARSENIC treatment at our smelters generates additional revenue by capturing penalties otherwise paid to the market.
Our subsidiary Ecometales treats high As flue dust.
4 HOW CODELCO HANDLES HIGH ARSENIC WE CAN MANAGE ARSENIC IN CONCENTRATES
Copyrights © 2018 Codelco Chile. Todos los Derechos Reservados. | Copyrights © 2018 by Codelco Chile. All Rights Reserved. 8CODELCO CHILE – Leading The Treatment of Arsenic - JOGMEC
4 HOW CODELCO HANDLES HIGH ARSENIC ECOMETALES
SellingThe Future…
Blending Roaster Smelter +
Refinery
Waste
treatment
Autoclave
Leaching
Cu Concs As content
Local
processing
S e a l o f a p p rova l
S e a l o f a p p rova l
Copyrights © 2018 Codelco Chile. Todos los Derechos Reservados. | Copyrights © 2018 by Codelco Chile. All Rights Reserved. 9CODELCO CHILE – Leading The Treatment of Arsenic - JOGMEC
4 HOW CODELCO HANDLES HIGH ARSENIC ECOMETALES
A flue dust leaching plant followed by a selective
arsenic precipitation plant from existing facilities
(BioCOP).
•ECL , 100%subsidiary ofCODELCO, focused
on delivering
environmental
solutions and value
recovery for mining
residues.
•ECL has a total
workforce of
about 300 people
and is supported
by 250
environmental
permits.
• ECLhas processed more
than 400,000 tons of
residues recovering
80,000 tons of copper.
Since the start-up of the
As stabilization plant,
more than 7,500 tons of
arsenic have been
stabilized.
Copyrights © 2018 Codelco Chile. Todos los Derechos Reservados. | Copyrights © 2018 by Codelco Chile. All Rights Reserved. 10CODELCO CHILE – Leading The Treatment of Arsenic - JOGMEC
• We expect a significant deficit in the custom market throughout the next three years, reaching c.700kton average (. The global capacity will continue to outpace the availability of copper concentratesduring the coming years.
5 CONCENTRATES MARKET OUTLOOK TREATEMENT CAPACITY OUTGROWS SUPPLY
-1600
-1200
-800
-400
0
400
800
0
10
20
30
40
50
60
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Mar
ket
bala
nce
(co
pper
in c
onc
entr
ate)
kt
Co
mbi
ned
TC
RC
c/l
b (2
5% C
u in
co
ncen
trat
e)
Balance Monthly spot price (Chinese smelter buying) Annual benchmark (incl pp)Source: Wood Mackenzie
Copyrights © 2018 Codelco Chile. Todos los Derechos Reservados. | Copyrights © 2018 by Codelco Chile. All Rights Reserved. 11CODELCO CHILE – Leading The Treatment of Arsenic - JOGMEC
Ranked by total concentrateproduced
Chuquicamata Underground Marcapunta Collahuasi Santa Maria de la Paz
are the biggest suppliers in theCustom complex market segment
Ministro Hales production is 610ktm of complex concentrates but treatedin the Codelco roaster
* Complex concentrate = As >0,5%
0.0
500.0
1,000.0
1,500.0
2,000.0
2,500.0
ktm
co
ncen
trat
e
Complex concentrate supply by company
Chuquicamata UG Marcapunta Collahuasi (Complex)
Chuquicamata Santa Maria de la Paz Toromocho (Complex)
New Afton Mina Ministro Hales Other
5 CONCENTRATES MARKET OUTLOOK COMPLEX CONCENTRATES KEY PLAYERS
Source: Wood Mackenzie
Copyrights © 2018 Codelco Chile. Todos los Derechos Reservados. | Copyrights © 2018 by Codelco Chile. All Rights Reserved. 12CODELCO CHILE – Leading The Treatment of Arsenic - JOGMEC
35,6 ktons of arsenic will be the average of production in complex concentrate the coming years, in the Long term will decrease sharply
The main volume available in the market will be Chuquicamata and Collahuasi, both are in the level of 0,6 – 15% of arsenic content
0%
10%
20%
30%
40%
50%
60%
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
201
0
201
1
201
2
201
3
201
4
201
5
201
6
201
7
201
8
201
9
202
0
202
1
202
2
202
3
202
4
202
5
202
6
202
7
202
8
202
9
203
0
ktm
de
As
Tones of Arsenic in complex concentrates
Arsenic in Complex Arsenic in other concentrates
% of As in Complex Conc
5 CONCENTRATES MARKET OUTLOOK ARSENIC CONTENT DECLINING
Source: Wood Mackenzie
Copyrights © 2018 Codelco Chile. Todos los Derechos Reservados. | Copyrights © 2018 by Codelco Chile. All Rights Reserved. 13CODELCO CHILE – Leading The Treatment of Arsenic - JOGMEC
0.0
500.0
1,000.0
1,500.0
2,000.0
2,500.0
3,000.0
3,500.0
0.0 2.0 4.0 6.0 8.0 10.0
conc
entr
ate
pro
duct
ion
ktpa
% of Arsenic content
HuaronMount Carlont
MMH
Marcapunta
Santa Maria
Chuquicamata UG
ChuquicamataToromocho
Bubble size denotesktpa of As
High arsenic concentrates (>0.5% As) account for 55% of the complex concentrates market.
Codelco mines Chuquicamata Underground and Ministro Hales account for 7% of the custom market.
5 mines, each one producing less than 250ktpa of Cu concentrates, account for 33% of arsenic in the custom market.
5 CONCENTRATES MARKET OUTLOOK COMPLEX CONCENTRATES MARKET SHARE
Source: Wood Mackenzie
Copyrights © 2018 Codelco Chile. Todos los Derechos Reservados. | Copyrights © 2018 by Codelco Chile. All Rights Reserved. 14CODELCO CHILE – Leading The Treatment of Arsenic - JOGMEC
Operational and commercial improvements at our smelters to increase competitiveness.
Become a world leader in the treatment of complex concentrate.
Commercial optimization of spare capacity at DMH roaster and Ecometales
6 FUTURE CHALLENGES LEADING THE WAY TREATING COMPLEX CONCENTRATES
Copyrights © 2018 Codelco Chile. Todos los Derechos Reservados. | Copyrights © 2018 by Codelco Chile. All Rights Reserved. 15CODELCO CHILE – Leading The Treatment of Arsenic - JOGMEC
DMH - CHUQUI• 50 million tonnes of copper concentrates (life of mine).• High arsenic content.
OUR SOLUTIONS
DMH RoasterCodelco Smelters
• Largest in the world.• Benefits of spare capacity.
ECOMETALES
100% subsidiary• Processed + 400kt of residues.• Recovering 80kt of copper.
Technical & Commercial Efficiency
OUR OPERATIONS
THE FUTURE
CONCLUSIONSAs a world class player for Arsenic treatment, Codelco has been able to manage and market complex concentrates globally.
• World leader in arsenic handling and treatment.