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Update Report on Energy Usage in Copper Mining for 2014 FROM 03 /2015 Intellectual Property Registry Β© NΒ° 254.581

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Update Report on Energy Usage in

Copper Mining for 2014

FROM 03 /2015

Intellectual Property Registry Β© NΒ° 254.581

Executive Summary

Energy is considered a strategic supply in mining, since without this resource it would be impossible to

carry out everyday mining activities. In this case, the source of electricity is determinant in the

sustainability and competitive position of the industry. The Chilean Copper Commission (Cochilco), as

part of their mission, generates information and action proposals which contribute to the

development of sustainable mining, as well as generate energy consumption statistics from the copper

mining industry at a national level. This information is provided to Cochilco by the mining sites of the

medium and large private mines, Enami and Codelco, reaching 98% representation in terms of

production of fine copper.

In 2014 total energy consumption of 161,716 TJ was reported, which reflects a 4.4% increase with

respects to the previous year. The consumption of electricity reached 83,261 TJ in 2014. This

represents a 2.7% increase in respect to the previous year, and the increase is due principally to an

increase in the processing of concentrates of sulfide ores. On the other hand, copper mining reached

78.454 TJ of fuel energy consumption in 2014, which represents a 6.4% increase over 2013.

Figure 1: National energy consumption in copper mining, Terajoule, 2001 – 2014

Source: Developed by Cochilco

In the case of fuels, pit mining is the mining process with the highest usage, reaching 59,974 TJ,

representing 76% of total fuel consumption. In electricity, the concentrator reaches consumption of

43,685 TJ and oxide processing (LxSxEw) consumes 20,751 TJ, which represent 52% and 25% of energy

consumption in mining respectively.

Total annual energy consumption divided by total annual copper production is an approximation of the

unitary coefficient of energy usage. This indicator allows for analyzing the tendencies of energy

consumption in mining production. In this manner, the unitary consumption of energy increased from

26.8 GJ/TMF in 2014 to 28.8 GJ/TMF in 2014, which represents a 7% increase. However, this increase

is determined by the ore grades of the treated mineral.

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Electricidad 47,272 49,454 53,945 58,082 58,831 59,744 63,854 64,653 68,318 68,947 71,874 77,678 81,084 83,261

Combustibles 38,962 38,251 40,742 42,031 42,468 44,346 52,939 56,993 64,402 60,637 65,732 74,326 73,751 78,454

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

TWh

Electricity

Fuels

Update Report on Energy Usage in Copper Mining for 2014 II

Chilean Copper Commission

The unitary consumption of electricity in the concentrator reached 80.3 MJ/Tm of processed ore,

which corresponds to just a 0.8% increase with respect to the unitary consumption of 2013 which

reached 79.7 MJ/TM of processed ore. On the other hand, the unitary consumption of fuels in pit

mines reached 57.8 MJ/TM of extracted ore in 2014, which represents a 0.7% increase with respects to

the previous year, reaching a unitary consumption of 57.4 MJ/TM of extracted ore.

The unitary consumption of electricity in the case of hydrometallurgical processing of LXSXEW reached

12.086 MJ/TMF Cu in 2014, which represents a 4.1% increase from 2013, when it reached 11.613

MJ/TMF Cu.

The increase in total energy consumption is led by the concentration process which increases

proportionally to the amount of ore processed. On the other hand, the increase in the consumption of

fuels in pit mining, with respects to 2013, is due principally to the increase of transported ore as well

as marginal increments due to increases in the traveling distance and depth of the deposits.

Update Report on Energy Usage in Copper Mining for 2014 III

Chilean Copper Commission

Index

Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

2. Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

2.1. General information and survey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

2.2. Data Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

3. Energy consumption in copper mining at national level . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

4. Fuel consumption in copper mining . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

5. Electricity consumption in copper mining . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

5.1. Electricity consumption in copper mining at a national level . . . . . . . . . . . . . . . . . . . . . . . . . 21

5.2. Electricity consumption in copper mining in the interconnected Norte grande system and in

the interconnected Center system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

6. Final comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

7. Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Update Report on Energy Usage in Copper Mining for 2014 IV

Chilean Copper Commission

Figure Index Figure 1: National energy consumption in copper mining, Terajoules, 2001 – 2014 ................................. I

Figure 2: Production processes of copper mining ...................................................................................... 8

Figure 3: Type of energy used in Mining .................................................................................................... 8

Figure 4: National energy consumption in copper mining, Terajoule, 2001 – 2014. ............................... 12

Figure 5: Percentage of electricity and fuels in total energy consumption and yearly variation in usage

for 2001 – 2014. ....................................................................................................................................... 12

Figure 6: Evolution of unitary energy consumption in fine production in Chile when compared with the

evolution of the average mineral laws ..................................................................................................... 14

Figure 7: Percentage of electricity and energy usage in copper mining and national consumption 2001

– 2013. ...................................................................................................................................................... 14

Figure 8: Annual variance based on 2001 of percentage of electricity and energy usage in mining of

national consumption, 2001 – 2013. ....................................................................................................... 15

Figure 9: Fuel based energy consumption in copper mining in TJ, 2001 - 2014 ...................................... 16

Figure 10: Percentage of diesel consumption in fuel based energy in 2014. ......................................... 17

Figure 11: Fuel consumption in ore processing, national level, 2001 – 2014. ......................................... 17

Figure 12: Participation of ore processing in total fuel based energy consumption, 2001 – 2014. ........ 18

Figure 13: Annual variance in fuel usage based on process, based on 2001 = 1. ................................... 19

Figure 14: Unitary consumption of fuels per ton of fine copper in process and yearly change compared

to base year 2001 ..................................................................................................................................... 20

Figure 15: Unitary consumption of energy associated to fuels according to ton of ore processed and

yearly change compared to base year 2001 ............................................................................................ 20

Figure 16: Electricity usage in copper mining in TJ, 2001 - 2014 ............................................................ 21

Figure 17:Electricity usage per mining process, national level 2001 – 2014. .......................................... 22

Figure 18: Percentage of mining processes in total electricity consumption, 2001 – 2014. ................... 23

Figure 19: Annual change in fuel consumption per process, base year 2001 = 1. ................................... 24

Figure 20: Unitary consumption of electricity per ton of fine copper content in process and yearly

change, compared to base year 2001. ..................................................................................................... 24

Figure 21: Unitary electricty usage per ton of ore processed and yearly change based on 2001 ........... 25

Figure 22: Change in electricity usage per process in SIC and SING ........................................................ 26

Figure 23: Evolution of the participation of electrical energy per process in SING and SIC .................... 27

Figure 24: Change in electrical energy usage per process, with respect to 2001 .................................... 27

Figure 25: Change in unitary consumption of electrical energy per process per ton of fine copper, with

respect to 2001 ........................................................................................................................................ 28

Figure 26: Change in unitary electrical energy consumption per ton of processed/extracted, wtih

respect to 2001 ........................................................................................................................................ 29

Update Report on Energy Usage in Copper Mining for 2014 V

Chilean Copper Commission

Table Index

Table 1: Partial sample of Production, Energy and Hydrological Resource 2014 survey. ......................... 9

Table 2: Conversion coefficients of physical units of fuels to energy ...................................................... 10

Update Report on Energy Usage in Copper Mining for 2014 6

Chilean Copper Commission

1. Introduction

The Chilean Copper Commission (Cochilco) reports copper mining energy consumption yearly

through the Energy Usage Statistics of Copper and through the present report, within the

permanent frameworks since 2001. In this sense, the report has the objective of analyzing the

whole fuel and energy consumption incurred by copper mining, as well as an analysis of the

evolution of unitary consumption since 2001.

The data analyzed in 2015 corresponds to data reported by the 44 most important copper

production sites in the country, as well as the existing smelters and refineries. The energy usage

data, as well as that of production, are requested through the Production; Water and Energy

Consumption survey, which is requested by Cochilco annually during the months of February and

March. This data is used to determine the electric consumption of mining at a national level and

to classify according to the interconnected Norte Grande and Central systems. Additionally, the

total fuel consumption and individual copper mining processes are analyzed. Finally, the

production data of fine copper and processed ores, in the different mining processes are used to

determine the unitary coefficients of energy, electricity, and fuel consumption in the different

processes.

The present report, begins in section two presenting the terminology used herein. The third

section shows the methodology used to gather the information and the subsequent calculation of

the energy usage incurred by copper mining at global and unitary levels. In section four, an

analysis of energy consumption at a national level is presented. In section five, the results of fuel

consumption results in copper mining are shown up to 2014. Section six begins showing the

results of electric usage at a national level and an analysis of its evolution, to then analyze the

results of electric consumption in the Interconnected Norte Grande and Interconnected Central

systems. Lastly, section seven has the final report comments.

Update Report on Energy Usage in Copper Mining for 2014 7

Chilean Copper Commission

2. Methodology

The methodology may be summarized in two parts. First, data was collected on production,

energy and water consumption in the mining process from the principal operating sites inside the

principal mining value chain. Second, based on the information supplied by the mining operations,

the global and unit consumption was determined for electricity and fuels for processes at a

national level. The methodology can be summarized in the following steps:

Data was collected directly from the companies through the β€œProduction, Energy, and

Hydrological Resource Survey”.

Based on the information provided by the mining companies, the usage and respective

unitary energy coefficients are calculated. For the country, the energy from fuels is

calculated as well as the energy from electricity, while electricity is detailed by SING and

SIC.

Energy consumption is presented in terajoules (TJ) and unitary consumption in megajoules

divided by metric tons (MJ/TM)

2.1. General Information and Survey

Two production lines are identified according to the type of mineral processed. First the process of

sulfite minerals is identified, which follow a production line of flotation, concentration, and then

pyrometallurgy. Conversely, the oxide ores, and some types of sulfide minerals, follow a leaching

line or through hydrometallurgy to extract the copper. The principal productive processes of the

sulphide ores are mining, concentration, smelting and refining. The principal processes involved in

copper extraction from oxide ores are mining, leaching, solvent-extraction and electro-winning.

Additionally, figure two shows vertically each of the product boxes and their respective units, of

each of the processes (see Figure 2).

Although it is not shown in Figure 2 in the present report, the Service process is recognized, as is

indicated in the terminology corresponding to the total of those activities which are not included

within the processes of the principal value chain, yet are necessary to carry out the mining

production. This area includes the energy consumption due to the impulsion and desalinization of

water.

Update Report on Energy Usage in Copper Mining for 2014 8

Chilean Copper Commission

Figure 2: Production Process in Copper Mining

*

Pregnant Leach Solution (PLS)

Source: Prepared by Cochilco

The principal sources of energy supplies to mines are electricity from the interconnected systems

and fuels. The interconnected systems are the Norte Grande System (SING) and Central System

(SIC). The present report recognizes energy gained from fuels through the use of: Carbon,

Gasoline, Diesel, Enap 6, Kerosene, Liquefied Gas, Natural Gas, Wood, and Butane.

Figure 3: Type of energy used in mining

Source: Prepared by Cochilco

Min

eral

(K

TM)

Mining extraction:

Extraction of sulphurs

Co

nce

ntr

atio

n (

TM)

Concentration: Milling and Floating of mineral A

no

des

(TM

F)

Smelting:

Production of blisters/anodes

Cat

ho

des

of

ER (

TMF)

Refining:

Production of cathodes through electro-refining (ER)

Min

eral

(K

TM)

Mining Extraction:

Extraction of leachable oxides and sulphides

PLS

(m

3/s

eg)

Leaching (Lx):

Irrigation in piles to produce PLS*

Elec

tro

lyte

(m

3/s

ec)

Extraction with Solvents (Sx):

Increase in copper concentration in electrolyte C

ath

od

es E

w (

TMF)

Electrowinning (Ew):

Cathode production

Energy in Mining

Fuel-based Energy::

Diesel

Enap 6

Kerosene

Liquefied Gas

Natural Gas

Electric Energy

Interconnected Central System (SIC)

Interconnected Norte Grande System (SING)

Update Report on Energy Usage in Copper Mining for 2014 9

Chilean Copper Commission

The information to determine the energy usage was gathered through the Production, Energy, and

Hydrological Resource Survey. This survey takes production information from the principal

production processes, identifying the ore supplies, as well as the products and their principal

characteristics. For example, in the case of extraction, the quantities in metric tons of material

and waste removed and their respective ore grades are reported; and in the case of ore

concentration the processed mineral, the quantity of concentrate produced, and the respective

grades are looked up. The different productive processes are associated with questions which

refer to the amount of electricity used, the amount of fuel (in physical units, for example m3 of

diesel) and total water consumed and recycled by the process. As an example of some of the data

reported in the survey, Table 1 is shown where a fraction of the production section of the

Production, Energy, and Hydrological Resources Survey is available.

Table 1: Partial simple of the Production, Energy, and Hydrological Resources Survey 2014.

Open Pit Mine Unit 2014

Material Extracted

Ore Extracted (to plant, leach, stock pile, etc.) KTM

Waste Extracted

Ore Grade

Ore extracted (to plant, leach, a stock pile, etc.) %

Waste grade %

Concentration Plant Unit 2014

Processed Ore TMS

Concentrate Produced TMS

Grade of Cu of Ore %

Grade of Cu of Concentrate %

% of Concentrate Recovered %

LXSXEW Unit 2014

Leachable Ore Treated KTM

Leachable Ore Grade %

Recovered through Leaching %

Cathode Production SX-EW TMF

Source: Prepared by Cochilco

In 2014 a total of 44 mining operations were surveyed among which were mines, smelters, and

refineries, which represent 97.6% of fine copper production at a national level. In the case of the

22 operations which are part of the SING system which answered the survey satisfactorily, they

represent 97.6% of the production of fine copper, while the 22 operations in the SIC system reach

95.5% representation in terms of fine copper production related to the total reported in this

system.

The detailed information in the tables are the base for the calculations, graphs, and analysis for

this report and are available in CochilcoΒ΄s webpage (www.cochilco.cl) in the Energy and GEI

Statistics section.

2.2. Data Analysis

Once the surveys from the mining sites were received and 97.6% production reached, the

information was extrapolated and scaled to 100%. This means that the energy usage, on an global

Update Report on Energy Usage in Copper Mining for 2014 10

Chilean Copper Commission

level and per process are scaled to a proportional fraction to reach 100% of copper production at a

national level according to the data received by Cochilco during 2014 in contrast with the data

from the survey.

Extrapolating the data for the global electricity consumption is not complex since the usage is

grouped in processes, then added on a national level to be scaled. In the case of fuels, first they

must be transformed into physical units consumed as reported in the energy unit survey, in this

case in megajoules. Each fuel reported is transformed into the equivalent energy unit as shown in

Figure 2, which state-of-the-art technology in the mining industry and the energy factor of the

fuels.

Table 2: Conversion coefficient in physical units of fuels to energy

Fuel Unit Quantity Useful Energy

(Megajoule, MJ)

Coal Kg 1 29

Gasoline M3 1 34.208

Diesel M3 1 38.309

Enap 6 t 1 43.932

Kerosene M3 1 37.618

Liquified Gas Kg 1 51

Natural Gas M3 1 39

Wood Kg 1 15

Butane lts 1 29 Source: Prepared by Cochilco

The following will show the principal indicators calculated for the consumption of energy through fuels and electricity.

2.2.1. Fuels:

At a national level, energy from fuels corresponds to the sum of consumption of the different sites considered in this report, as shown in (3.1)

𝐹𝑒𝑒𝑙 π‘’π‘›π‘’π‘Ÿπ‘”π‘¦ βˆ‘ 𝐹𝑒𝑒𝑙 πΈπ‘›π‘’π‘Ÿπ‘”π‘¦ π‘π‘œπ‘›π‘ π‘’π‘šπ‘’π‘‘π‘–π‘– (π‘ƒπ‘’π‘‘π‘Žπ‘—π‘œπ‘’π‘™π‘’π‘ ) (3.1)

Where i corresponds to the mine site.

The unitary consumption of fuels measured as the energy used in the processing of a ton of fine copper content by process by site is calculated as: the consumption of fuel transformed into energy units divided by fine copper content in the product of the aforementioned process, as shown in (3.2). For the calculations of the fuel units consumed per ton of fine copper at a national level per process, the unitary consumption per site is considered and weighted in accordance to their contribution of fine copper to the national total according to the process at hand, as shown in (3.3).

Update Report on Energy Usage in Copper Mining for 2014 11

Chilean Copper Commission

πΆπ‘œπ‘›π‘ . π‘ˆπ‘›π‘–π‘‘. π‘œπ‘“ 𝐹𝑒𝑒𝑙. π‘₯ 𝐢𝑒 𝐹𝑖𝑛𝑒𝑖𝑗 =𝐹𝑒𝑒𝑙 π‘’π‘›π‘’π‘Ÿπ‘”π‘¦ π‘π‘œπ‘›π‘ π‘’π‘šπ‘’π‘‘ 𝑖𝑗 (𝑀𝐽)

𝐹𝑖𝑛𝑒 πΆπ‘œπ‘π‘π‘’π‘Ÿ π‘π‘œπ‘›π‘‘π‘’π‘›π‘‘ 𝑖𝑛 π‘π‘Ÿπ‘œπ‘‘π‘’π‘π‘‘,π‘π‘Ÿπ‘œπ‘π‘’π‘ π‘ π‘–π‘— (𝑇𝑀𝐹)(𝑀𝐽/𝑇𝑀𝐹) (3.2)

πΆπ‘œπ‘›π‘ . π‘ˆπ‘›π‘–π‘‘. π‘œπ‘“ 𝐹𝑒𝑒𝑙 π‘₯ 𝐢𝑒 𝐹𝑖𝑛𝑒 = βˆ‘ πΆπ‘œπ‘›π‘ . π‘ˆπ‘›π‘–π‘‘. 𝑑𝑒 𝐹𝑒𝑒𝑙π‘₯ 𝐢𝑒 𝐹𝑖𝑛𝑒𝑖𝑗 ×𝐢𝑒 𝐹𝑖𝑛𝑒 𝑖𝑛 π‘ƒπ‘Ÿπ‘œπ‘‘π‘’π‘π‘‘π‘–π‘—

𝐢𝑒 𝐹𝑖𝑛𝑒 𝑖𝑛 π‘ƒπ‘Ÿπ‘œπ‘‘π‘’π‘π‘‘π‘—π‘–π‘— (𝑀𝐽/𝑇𝑀𝐹) (3.3)

Where i corresponds to mining site, while j corresponds to the different productive processes.

In the case of unitary consumption of fuel energy according to the processed ores, first the unitary usage per site is calculated, taking the fuel energy used in the processes divided by the total material processed, as shown in (3.4). To carry out the calculation of the unitary fuel consumption of processed material at a national level, the unitary levels are weighted in accordance to their participation of the amount of processed material per site of the national total processed in a specific process as shown in (3.5).

πΆπ‘œπ‘›π‘ . π‘ˆπ‘›π‘–π‘‘ π‘œπ‘“πΉπ‘’π‘’π‘™. π‘₯ π‘€π‘Žπ‘‘π‘’π‘Ÿπ‘–π‘Žπ‘™π‘–π‘— =𝐹𝑒𝑒𝑙 πΈπ‘›π‘’π‘Ÿπ‘”π‘¦ π‘ˆπ‘ π‘’π‘‘π‘–π‘— (𝑀𝐽)

π‘€π‘Žπ‘‘π‘’π‘Ÿπ‘–π‘Žπ‘™ π‘π‘Ÿπ‘œπ‘π‘’π‘ π‘ π‘’π‘‘,π‘π‘Ÿπ‘œπ‘π‘’π‘ π‘ π‘–π‘— (π‘€π‘’π‘‘π‘Ÿπ‘–π‘ π‘‡π‘œπ‘›π‘  π‘œπ‘“ π‘€π‘Žπ‘‘π‘’π‘Ÿπ‘–π‘Žπ‘™)(𝑀𝐽/𝑇𝑀) (3.4)

πΆπ‘œπ‘›π‘ . π‘ˆπ‘›π‘–. π‘œπ‘“ 𝐹𝑒𝑒𝑙. π‘₯ π‘€π‘Žπ‘‘π‘’π‘Ÿπ‘–π‘Žπ‘™ = βˆ‘ πΆπ‘œπ‘›π‘ . π‘ˆπ‘›π‘–π‘‘ π‘œπ‘“ 𝐹𝑒𝑒𝑙π‘₯ π‘€π‘Žπ‘‘π‘’π‘Ÿπ‘–π‘Žπ‘™π‘–π‘— Γ—π‘€π‘Žπ‘‘π‘’π‘Ÿπ‘–π‘Žπ‘™ π‘π‘Ÿπ‘œπ‘π‘’π‘ π‘ π‘’π‘‘π‘–π‘—

π‘€π‘Žπ‘‘π‘’π‘Ÿπ‘–π‘Žπ‘™ π‘π‘Ÿπ‘œπ‘π‘’π‘ π‘ π‘’π‘‘π‘—π‘–π‘— (𝑀𝐽/𝑇𝑀) (3.5)

Where i corresponds to mine site while j corresponds to the different productive processes..

2.2.2. Electricity:

The methodology used to carry out the calculations of the usage indicators of electricity on a global and unitary level are presented in (3.6), (3.7), (3.8), (3.9) y (3.10), following the same nomenclature previously presented.

πΈπ‘™π‘’π‘π‘‘π‘Ÿπ‘–π‘π‘Žπ‘™ πΈπ‘›π‘’π‘Ÿπ‘”π‘¦ = βˆ‘ πΈπ‘™π‘’π‘π‘‘π‘Ÿπ‘–π‘π‘Žπ‘™ πΈπ‘›π‘’π‘Ÿπ‘”π‘¦ πΆπ‘œπ‘›π‘ π‘’π‘šπ‘’π‘‘π‘– (π‘ƒπ‘’π‘‘π‘Žπ‘—π‘œπ‘’π‘™π‘’π‘ ) (3.6)

πΆπ‘œπ‘›π‘ . π‘ˆπ‘›π‘–π‘‘ π‘œπ‘“ πΈπ‘™π‘’π‘π‘‘π‘Ÿπ‘–π‘π‘–π‘‘π‘¦ π‘₯ 𝐢𝑒 𝐹𝑖𝑛𝑒𝑖𝑗 =πΈπ‘™π‘’π‘π‘‘π‘Ÿπ‘–π‘π‘Žπ‘™ πΈπ‘›π‘’π‘Ÿπ‘”π‘¦ π‘π‘œπ‘›π‘ π‘’π‘šπ‘’π‘‘ 𝑖𝑗 (𝑀𝐽)

𝐹𝑖𝑛𝑒 π‘π‘œπ‘π‘π‘’π‘Ÿ π‘π‘œπ‘›π‘‘π‘’π‘›π‘‘ 𝑖𝑛 π‘π‘Ÿπ‘œπ‘‘π‘’π‘π‘‘, π‘π‘Ÿπ‘œπ‘π‘’π‘ π‘ π‘–π‘— (𝑇𝑀𝐹)(𝑀𝐽/𝑇𝑀𝐹) (3.7)

πΆπ‘œπ‘›π‘ . π‘ˆπ‘›π‘–π‘‘ π‘œπ‘“ 𝐸𝑙𝑒𝑐. π‘₯ 𝐢𝑒 𝐹𝑖𝑛𝑒 = βˆ‘ πΆπ‘œπ‘›π‘ . π‘ˆπ‘›π‘–π‘‘ π‘œπ‘“ 𝐸𝑙𝑒𝑐. π‘₯ 𝐢𝑒 𝐹𝑖𝑛𝑒𝑖𝑗 ×𝐢𝑒 𝐹𝑖𝑛𝑒 𝑖𝑛 π‘ƒπ‘Ÿπ‘œπ‘‘π‘’π‘π‘‘π‘–π‘—

𝐢𝑒 𝐹𝑖𝑛𝑒 𝑖𝑛 π‘ƒπ‘Ÿπ‘œπ‘‘π‘’π‘π‘‘π‘—π‘–π‘— (𝑀𝐽/𝑇𝑀𝐹) (3.8)

πΆπ‘œπ‘›π‘ . π‘ˆπ‘›π‘–π‘‘ π‘œπ‘“ 𝐸𝑙𝑒𝑐. π‘₯ π‘€π‘Žπ‘‘π‘’π‘Ÿπ‘–π‘Žπ‘™π‘–π‘— =πΈπ‘™π‘’π‘π‘‘π‘Ÿπ‘–π‘π‘Žπ‘™ πΈπ‘›π‘’π‘Ÿπ‘”π‘¦ π‘π‘œπ‘›π‘ π‘’π‘šπ‘’π‘‘ 𝑖𝑗 (𝑀𝐽)

π‘€π‘Žπ‘‘π‘’π‘Ÿπ‘–π‘Žπ‘™ π‘π‘Ÿπ‘œπ‘π‘’π‘ π‘ π‘’π‘‘,π‘π‘Ÿπ‘œπ‘π‘’π‘ π‘ π‘–π‘— (π‘€π‘’π‘‘π‘Ÿπ‘–π‘ π‘‘π‘œπ‘›π‘  π‘œπ‘“ π‘šπ‘Žπ‘‘π‘’π‘Ÿπ‘–π‘Žπ‘™)(𝑀𝐽/𝑇𝑀) (3.9)

πΆπ‘œπ‘›π‘ . π‘ˆπ‘›π‘–π‘‘ π‘œπ‘“ 𝐸𝑙𝑒𝑐. π‘₯ π‘€π‘Žπ‘‘π‘’π‘Ÿπ‘–π‘Žπ‘™ = βˆ‘ πΆπ‘œπ‘›π‘ . π‘ˆπ‘›π‘–π‘‘ π‘œπ‘“ 𝐸𝑙𝑒𝑐. π‘₯ π‘€π‘Žπ‘‘π‘’π‘Ÿπ‘–π‘Žπ‘™π‘–π‘— Γ—π‘€π‘Žπ‘‘π‘’π‘Ÿπ‘–π‘Žπ‘™ π‘π‘Ÿπ‘œπ‘π‘’π‘ π‘ π‘’π‘‘π‘–π‘—

π‘€π‘Žπ‘‘π‘’π‘Ÿπ‘–π‘Žπ‘™ π‘π‘Ÿπ‘œπ‘π‘’π‘ π‘ π‘’π‘‘π‘—π‘–π‘— (𝑀𝐽/𝑇𝑀) (3.10)

3. Energy consumption of copper mining at a national level

This section shows a general vision of energy consumption in copper mining in Chile. It includes

information related to the total use of energy, unitary usage per ton of fine copper, and the

variation in comparison with the energy usage on a country level.

Update Report on Energy Usage in Copper Mining for 2014 12

Chilean Copper Commission

Figure 4 shows a graph of the national consumption of energy in copper mining segmented by the

usage of electricity and fuels. It is noteworthy that there has been an increase from 154,835

terajoules (TJ) in 2013 to 161,716 TJ in 2014, which represents a 4.4% rise. In this sense, the

increase in electricity consumption was 2.7% in the 2013-2014 period, while the increase in fuel

consumption was 6.4% in the same period. In the case of fuels, the increase in total consumption

is due principally to further transporting distances in trucking, an increase in material being

moved, as well as an increase in fuel consumption for the start-up of a new mine. On the other

hand, the increase in the consumption of electrical energy is due primarily to a greater quantity of

copper being processed in concentrating plants. This reflects the manner in which the total

energy consumption in copper mining increased 85% in the period of 2001-2014, where fuels

increased 74% and electricity by 99% in the same time period.

Figure 4: National Energy Usage in Copper Mining, Terajoules, 2001 – 2014.

Source: Prepared by Cochilco

In 2014 the percentage of electrical consumption of total energy reached 52%, very much like the average of the last 4 years when an average of 53% was reached. This contrasts with the average

usage of electricity in the 2003.2007 period, which reached 57%. Figure 5: Shares of electricity and fuels in total energy consumption and annual variation in energy usage between 2001-2014.

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Electricidad 47,272 49,454 53,945 58,082 58,831 59,744 63,854 64,653 68,318 68,947 71,874 77,678 81,084 83,261

Combustibles 38,962 38,251 40,742 42,031 42,468 44,346 52,939 56,993 64,402 60,637 65,732 74,326 73,751 78,454

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

Tera

jou

le

Electricity

Fuels

Update Report on Energy Usage in Copper Mining for 2014 13

Chilean Copper Commission

Source: Prepared by Cochilco

The total yearly consumption of energy divided by the annual production of copper is an

approximation of the unitary energy consumption coefficient. However it is a good estimate

which allows the analysis of the energy consumption trends in mining production. Therefore, the

unitary energy consumption increased from 18.2 GJ/TMF in 2001 to reach usage of 28.1 GJ/TMG in

2014, which reflects a 54.6% increase. This raise is determined by the increase in the unitary

consumption of fuels and electricity in the mining process. Therefore, the energy consumption

based on fuels to produce a ton of fine copper increased by 66% in the period of 2001-2014, while

electricity consumption per ton of fine copper increased by 45% in the same period. (see left graph

of figure 6).

The increase in the unitary consumption of fuels in copper production is related, greatly, to the

ageing of the exploited mines and the diminishing ore grades. When the yearly variance of unitary

fuel consumption is analyzed and compared to 2004, there is a reflection of a 54% increase in the

2004-2014 period. However, the ore grades in Chile have diminished by 40% in the same time

period. Therefore, it is established that the grades of the ores exploited and processed are

determinants in the use of electricity and fuels in copper mining. (See figure 6).

0%

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Electricidad % Combustibles %

Shares according to type of energy in copper mining

2.01

1.76

1.88

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CombustiblesElectricidadTotal Nacional

Variation in energy consumption, base year 2001

Electricity% Fuels% Electricity

Fuels

National Total

Update Report on Energy Usage in Copper Mining for 2014 14

Chilean Copper Commission

Figure 6: Evolution of unitary energy consumption in the production of fine copper in Chile in comparison with the evolution of the average mineral grades

Source: Prepared by Cochilco

Mining is one of the principal energy consuming industries. According to data from the Energy

Ministry extracted from the National Energy Balance, mining represents 31.6% of the total of

electricity in 2014, being therefore the principal electrical user. The industry, on average has

represented a 32.4% of electrical consumption in the 2001-2014 period. Additionally, mining is

also an important fuel consumer, and therefore of total energy consumption on a national level.

In the 2001-2013 period, mining represented an average of 10.8% of the total energy usage of the

country. Particularly, in 2013, mining represented 11.6% of energy consumption at a national

level. (See figure 7).

Figure 7: Percentage of electric and energy consumption of national usage in copper mining 2001- 2013.

Source: Elaborated by Cochilco based on Energy Ministry data.

It is interesting to analyze how the share of mining in the national electricity and energy

consumption has evolved. The total variance in the shares of electric consumption is of -3% in the

2001-2013 period, inferring that the electric usage of the mining sector follows a growing trend

similar to the growth of total electrical consumption at a national level. On the other hand, the

share of mining in the total fuel consumption has increased. A 22% increase has been identified in

18.2

28.1

1.1%

0.7%

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

0

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10

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30

2001 2003 2005 2007 2009 2011 2013

Evolution of unitary consumption of energy and ore grades at a national

level

Combustibles (GJ/TMF)Electricidad (GJ/TMF)Total Nacional (GJ/TMF)Leyes Promedio (%)

1.52

0.60

0.00

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0.80

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= 1

Variance in mineral grades and unitary energy consumption in Chile

VariaciΓ³n Consumo. Unit. EnergΓ­a

VariaciΓ³n Leyes Mineral

31.6%

32.4%

20%

25%

30%

35%

40%

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Elect. cobre/elect. total (%)

Prom. elec. cobre/elec. total (%)

11.6% 10.8%

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EnergΓ­a cobre/energΓ­a total (%)

Prom. energia cobre/ energΓ­a total (%)

Fuels (GJ/TMF)

Electricity (GJ/TMF)

National Total (GJ/MF)

Average Grades(%)

Consumption Variation. Unit. Energy

Mineral Variation Grades

Elec.copper/total elect.(%)

Avg.copper.elec/total elec.(%)

Copper Energy/Total Energy (%)

Avg.copper energy/total energy(%)

Update Report on Energy Usage in Copper Mining for 2014 15

Chilean Copper Commission

the 2001-2013 period, wherein the maximum was reached in 2008, with a 37% fluctuation with

respects to 2001.

Figure 8: Yearly change with 2001 as base in the participation of electrical and energy consumption in mining of national consumption, 2001 – 2013.

Source: Prepared by Cochilco

0.97

1.37

1.22

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0.90

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1.30

1.40

VariaciΓ³n Elect.cobre/elect. total (%)

VariaciΓ³n energΓ­acobre/energΓ­a total(%)

Elect. Variation copper/total elect.(%)

Energy Variation Copper/Total Energy

(%)

Update Report on Energy Usage in Copper Mining for 2014 16

Chilean Copper Commission

4. Fuel consumption of copper mining

This section shows information referring to the total evolution based on fuels, the total fuel energy

per process, and the unitary consumption of fuels for fine copper and per processed materials.

In 2014 mining reached a total consumption of 78,454 terajoules (TJ) of energy based on fuels,

which represents a 4.6% increase over 2013. As previously mentioned, this increase is due to the

start-up of a new mining site, the greater consumption due to the increase in material removed

due to the expansion of the processing capacity of open pit mining operations, as well as an

increase in the marginal consumption associated with a decrease in ore grades and ageing of the

mines. The energy consumption based on fuels in 2001 was 38,962 TJ, therefore the fuel

consumption in 2014 corresponds to a 101% increase.

Figure 9: Consumption of fuel based energy in copper mining in TJ, 2001 - 2014

Source: Prepared by Cochilco

In 2014, 85.2% of the energy used in the mix of fuels corresponds to diesel. This fuel is used in the

most part in the ore and waste transportation trucks in the extraction process of mining. It is

followed by the fuels Enap 6 and natural gas, with 7.5 and 6.4% shares respectively, which are

used primarily in the generation of electricity in various services. (See figure 10)

38,962

73,751 78,454

0

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90,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Fue

l En

erg

y TJ

Update Report on Energy Usage in Copper Mining for 2014 17

Chilean Copper Commission

Figure 10: Diesel participation in fuel based energy consumption in 2014.

Source: Prepared by Cochilco

A great percentage of fuel based energy used in copper mining is during the transportation

process. This is owing to this process being intensive in diesel consumption. In 2014, the fuel

based energy consumption in pit mining was 59,974 TH. The pit mining process increased the use

in 2014 by 4.6% over 2013. On the other hand, the smelting process increased fuel based energy

consumption by 13.2% over 2013, reaching 7,410 TJ, due principally to an increase in concentrate

processed, which rose by 11% in the 2013-2014 period. (See figure 11)

Figure 11: Consumption of fuels per mining process, national level 2001 – 2014.

Source: Prepared by Cochilco

The increase in fuel usage in the open pit mining process has not only been in absolute terms, but

also in relative terms to the other processes inside the mining production chain. Therefore the

Diesel 85.2%

Enap 6 7.5%

Natural Gas (PERCENTAGE)

Other (PERCENTAGE)

Fuel consumption en 2014 (Total 78.454 TJ)

59.974

7.410 4.438 4.222

0

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En

ergy

TJ

Servicios

LX/SX/EW

RefinerΓ­a

FundiciΓ³n

Concentradora

Mina SubterrΓ‘nea

Mina Rajo

Services

LX/SX/EW

Refining

Smelting

Concentration

Underground Mining

Open Pit Mining

Update Report on Energy Usage in Copper Mining for 2014 18

Chilean Copper Commission

percentage of pit mining processes over the total usage of fuel energy was 56% in 2001, while this

value increased to reach 76% in 2014. Conversely, refining and smelting have reduced their

relative participation in fuel consumption in the 2001-2014 period due to a lack of increase in

processing capacity, which directly coincides with energy usage. Thus, the smelting process

represented 24% of total fuel consumption in 2001, whereas in 2014 it only reached 9.5% (see

figure 12).

Figure 12: Percentage per mining process of total usage of fuel based energy, 2001 – 2014.

Source: Prepared by Cochilco

The pit mining process in 2014 corresponds to 2.7 times the consumption of 2001. The increase in

the usage can be divided in two phases. First, the 2001-2006 period wherein the growth in fuel

consumption corresponds to a rate of 4% yearly. Second, the 2006-2014 period wherein the

growth of fuel usage in the pit mines has been more intense, reaching a growth rate of 11% yearly.

Contrarily, the smelting and refining processes have diminished their total fuel consumption when

compared with the usage in 2001. The usage of fuels in refining in 2001 was 1,524TJ, whereas in

2014 it was 1,171 TJ, which represents a 23% reduction. Likewise, in the 2001-2014 period,

smelting reduced total consumption by 19% (see Figure 13).

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Servicios

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RefinerΓ­a

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Services

LX/SX/EW LX/SX/EW

Refining

Services Smelting

Services Concentration

Services Underground Mining

Services Open Pit Mining

Services

Update Report on Energy Usage in Copper Mining for 2014 19

Chilean Copper Commission

Figure 13: Yearly change in fuel consumption per process, base year 2001 = 1.

Source: Prepared by Cochilco

The following gives a brief review of the evolution and change of unitary fuel based energy

consumption in copper mining.

The unitary consumption of fuels per ton of fine copper in the processes of concentration,

subterranean mining, and refining have been relatively constant, wherein no significant changes

are seen. In the case of smelting there has been a noticeable decrease in the unitary consumption

of fuels by 21% in the 2001-2014 period. The unitary usage of fuel per ton of fine copper in the pit

mining process has risen reaching an increase of 78% in the 2001-2014 period. The increase in

unitary fuel consumption in the services process in the 2001-2014 period is of a considerable

157%. However this process has little relative weight, up to now, as it does not coincide with a

greater increase in the total fuel consumption. It is projected that the energy consumption in the

services process will keep increasing principally for the start-up of new desalinization and water

impulsion plants in copper mining.

2.77

0.77

1.27

2.49

0.0

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1.0

1.5

2.0

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3.0

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4.0

4.5

Update Report on Energy Usage in Copper Mining for 2014 20

Chilean Copper Commission

Figure 14: Unitary consumption of fuels per ton of fine copper content in process and annual change compared to base year 2001.

Source: Prepared by Cochilco

Upon analyzing the unitary consumption of energy based on fuels per ton of extracted ore, in the

case of pit mining, a 31% increase on the 2001-2014 period is seen. This indicator is not skewed by

diminishing ore grades, therefore the increase in the fuel consumption is associated to

transportation distances, relative depth of extraction, and possible operational inefficiencies as

the principal causes. On the other hand, the unitary fuel consumption per ton of treated ores in

the case of the concentrator, leaching, and smelting are seen diminishing, which is indicative of

improved operations or management.

Figure 15: Unitary energy usage associated with fuels according to tons of ore processed and yearly change with base year 2001.

Source: Prepared by Cochilco

7,678

4,784

1,301

2,866

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MJ/

TMF

Unitary consumption of fuels per ton of fine copper

Mina Rajo Mina SubterrΓ‘neaConcentradora FundiciΓ³nRefinerΓ­a LX/SX/EWServicios

1.78

0.79

1.18

2.57

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Annual change in unitary fuel consumption, base year 2001 = 1

57.8

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Unitary consumption of fuels per ton of processed ore

Mina Rajo (MJ/TM mineral extraΓ­do)Mina SubterrΓ‘nea (MJ/TM mineral extraΓ­do)Concentradora (MJ/TM mineral procesado)LX/SX/EW (MJ/TM mineral lixiviado)FundiciΓ³n (MJ/TM conc. procesado)

1.31

0.86 0.73 0.60

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Change in unitary consumption of fuels per ton of processed ore

Mina Rajo Mina SubterrΓ‘nea

Concentradora FundiciΓ³n

LX/SX/EW

Open Pit Mining

Concentration

Refining

Services

Underground Mine

Smelting

Open Pit Mining (MJ/TM extracted ore) Underground Mining (MJ/TM extracted ore)

Concentration (MJ/TM processed ore)

LX/SX/EW (MJ/TM leached ore)

Smelting (MJ/TM processed con.)

Open Pit Mining

Concentration

Underground Mining

Smelting

Update Report on Energy Usage in Copper Mining for 2014 21

Chilean Copper Commission

5. Electricity usage in copper mining

The following will analyze the consumption and yearly change in electrical usage in copper mining

on a higher level, per process per ton of copper and the unitary consumption of electricity per ton

of ore treated per process.

In the case of electricity, an analysis of consumption on a national level in copper production will

be done. Then a comparative analysis in electricity usage in copper production between the

interconnected Norte Grande and Central systems will be carried out.

5.1. Electrical consumption of copper mining at a national level

In 2014 copper mining consumed a total of 83,261 TJ of electrical energy. This usage corresponds

to a 2.7% increase over usage from 2013, where it reached 81,084 TJ. The increase in electrical

consumption is principally due to the marginal increase in consumption from the existing

operations, as well as from the increase in processing capacity in concentration plants at a national

level of the new mining sites and expansion projects started in 2013 and 2014.

Figure 16: Electrical consumption in copper mining in TJ, 2001 - 2014

Source: Prepared by Cochilco

When analyzing the electrical consumption per process in mining, it is determined that the

greatest increase occurs in the concentrating plant which reached an increase in total

consumption of 5.4% over 2013, finishing at 43,685 TJ. The rise in electrical consumption is related

to the increase in processed ore in the concentrating plants which rose by 4.8% in the 2013-2014

period, due principally to the start-up of new processing capacities in the Caserones, Ministro

Hales, and Sierra Gorda mines, as well as a growth in mineral processing reached by important

operations in mining through expansion projects. The second process which consumed most

electricity in 2014 corresponds to leaching, which consumed a total of 20,752 TJ, which correlates

to a 4.9% drop in total consumption over 2013, due in part to the decline in fine copper

production of cathodes through electro-winning, which decreased by 7.4% in the 2013-2014

81,084 83,261

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2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Ele

ctri

cal E

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rgy,

TJ

Update Report on Energy Usage in Copper Mining for 2014 22

Chilean Copper Commission

period. It is also important to note that the electrical consumption by Services reached 4,371 TJ in

2014, which rose by 10.4% over 2013. It is worth noting that since 2012 the energy consumption

survey includes the item of electricity usage in impulsion and sea water desalinization plants,

which explains the surge of electrical consumption in Services.

Figure 17: Electrical consumption per mining process, national level 2001 – 2014.

Source: Prepared by Cochilco

Figure 18 shows the evolution in the percentage of electrical usage per process. The process

which consumes most, with a 52.5% share in 2014 is the concentrator. The share of this process in

2001 was 43%. On the other hand, the relative share of the Leaching-Extraction with Solvents -

Electro-winning or LXSXEW process has diminished in time. The LXSXEW process, in 2001,

represented a 31% of usage, wherein in 2014 was 25%. The electrical consumption of the LXSXEW

process has remained stable for the 2008-2014 period, however the share of total electrical usage

has diminished principally because of the increase in electrical consumption in the concentration

process. The other productive processes, with lesser relevance in electrical consumption, have

maintained a relatively stable participation in the 2001-2014 period.

4,936

43,685

6,544 1,160

20,752

4,371

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20

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20

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20

14

Fue

ls, T

era

jou

le (

TJ)

Update Report on Energy Usage in Copper Mining for 2014 23

Chilean Copper Commission

Figure 18: Share of the mining processes in the total electricity usage, 2001 – 2014.

Source: Prepared by Cochilco

The concentration process has surged in electrical consumption by 117% in the 2001-2014 period,

where the largest increase is seen starting in 2010 and lasting through 2014. In this manner, the

increase in electricity consumption in the 2001-20010 period occurs at an average yearly growth

rate of 4.8%, while in the 2010-2014 period the growth rate is 7%. The LXSXEW process is

important to analyze due to the share it represents of electricity usage and evolution in total

consumption as well. In this sense, the LXSXEW process in the 2001-2014 period increased

consumption by 41%, from 14,679 TJ to 20,766TJ in 2014; in three periods: 2001-2005 with a

yearly growth rate of 8.1%, 2005-2009 with a growth rate of 2.5% yearly, and 2009-2014 with a

7.0% yearly growth rate. The electrical consumption in the smelting and pit mining process have

reached historic highs. In the case of smelting, a total consumption of 6,544 TH was reached in

2014, which is 24% higher than 2001. With respects to electricity usage in pit mining 2014

reached 4,936 TJ, a 117% increase over consumption in 2001. (See figure 19).

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Update Report on Energy Usage in Copper Mining for 2014 24

Chilean Copper Commission

Figure 19: Annual change in energy consumption according to process, base year 2001=.

Source: Prepared by Cochilco

Figure 20 shows the unitary consumption of electricity per ton of processed copper for the

different processes. The unitary consumption of electricity in the concentration process has

increased by 77% in the 2001-2014 period, a yearly growth rate of 4.4%. The increase in the

unitary consumption of electricity per ton of fine copper in the LXSXEW process has been 19% in

the 2001.2014 period, reflecting an annual growth rate of 1.4% in the same period. The 2013-

2014 period shows in increase in the unitary consumption of electricity per ton of fine copper of

4.1%, due to the decrease of copper in LXSXEW of 7.8%, while the electric consumption only

declines by 4.3% (see figure 20).

Figure 20: Unitary consumption of electricity per ton of fine copper per process and yearly change in compared to base year 2001.

Source: Prepared by Cochilco

Lastly, when analyzing the unitary consumption of electricity per ton of processed ore in the

2013/2014 period, only the concentration area presents an increase, reaching a 0.8% rate. In this

sense, when the unitary consumption of treated ore is analyzed for the concentrating plant in the

1.90

2.17

1.24

0.78

1.41

1.76

0.0

0.5

1.0

1.5

2.0

2.5

Mina Rajo

Mina SubterrΓ‘nea

Concentradora

FundiciΓ³n

RefinerΓ­a

LX/SX/EW

Servicios

2,175

10,810

4,225

1,278

12,086

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

20

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MJ/

TMF

Unitary consumption of electricity per ton of fine copper

1.48

1.77

1.21

1.03

0.75

1.00

1.25

1.50

1.75

2.00

20

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20

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14

Change in unitary consumption per ton of finecopper

Open Pit Mining

Underground Mining

Concentration

Smelting

Refining

Services

Update Report on Energy Usage in Copper Mining for 2014 25

Chilean Copper Commission

last 4 years, an average of 79.7 MJ/TM of processed ore is reached, very similar to the usage

reached in 2014; wherein in the 2001-2014 period the increase is of 20%. In the case of the

LXSXEW process, the 2013-2014 period presents a decline in the unitary consumption of

processed ore by 1.7%, mainly because of the increase in the leaching and processing of low grade

ores by mining sites.

Figure 21: Unitary consumption of electricity per ton of ore processed and yearly change with base year 2001.

Source: Prepared by Cochilco

5.2. Electric consumption of copper mining in the Norte Grande and Central Interconnected Systems.

The electric consumption in the Interconnected Norte Grande System was of 47,464 TJ, while in

the Interconnected Central System was 35,796 TJ in 2014. With respects to electrical consumption

in the year 2013, the Norte Grande System had a 2.6% increase, while usage in the Central

Interconnected System had a 2.8% increase in the 2013-2014 period.

The processes with the highest energy consumption in the SING in 2014 correspond to LXSXEW

with a total of 18,834 TJ consumed, and the concentration process with a usage of 18,333 TJ. With

respects to the LXSXEW process the usage in 2014 decreased by 3.7% in comparison to usage in

2013. On the other hand, the concentration process in SING in 2014 increased in usage by 8.5% in

respects to 2013 (See figure 22).

The highest consumption in the SIC occurred in the concentrator, where the total consumption

reached 25,351 TJ in 2014, which represents a 3.3% increase over 2013. The second most relevant

process in the SIC corresponds to smelting, which in 2014 used a total of 3.642 TJ, which is a 0.2%

increase over 2013.

5.0

21.3

80.3

40.5

1,220

0

500

1,000

1,500

0

30

60

90

Unitary consumption of electricity per ton of processed ore

1.09

1.52

1.20

0.63

0.0

0.3

0.6

0.9

1.2

1.5

1.8

Yearly change in unitary consumption of electricity per ton of processed ore

Mina Rajo Mina SubterrΓ‘neaConcentradora FundiciΓ³nLX/SX/EW

Open Pit Mining

Concentration

Underground Mining

Smelting

Update Report on Energy Usage in Copper Mining for 2014 26

Chilean Copper Commission

Figure 22: Evolution of electric consumption per process in SIC and SING

Source: Prepared by Cochilco

In the case of SING, the concentration process share has increase, while the LXSXEW process has

decreased in the 2001-2014 period. The share in electricity consumption in the SING concentrator

was 27.5% in 2001, increasing to 38.6% share in 2014. On the other hand, the LXSXEW process in

2001 reached a 49% participation, declining to a 39% share in 2014. In the case of the share of

electric consumption by processes in the SIC, the shares are more stable than in the SING line. As

the most significant usage occurs in the condenser, it reached a 63% share in 2001, and increased

to 67.4% in 2014. The smelting processΒ΄ electric consumption decreased slightly in the SIC, from

14.8% in 2001 to 13% in 2014. (See figure 23).

0

10,000

20,000

30,000

40,000

50,0002

00

1

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TJ

SING

Servicios LX/SX/EWRefinerΓ­a FundiciΓ³nConcentradora Mina SubterrΓ‘neaMina Rajo

0

10,000

20,000

30,000

40,000

50,000

20

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14

TJ

SIC

Services

Refining

Concentration

Open Pit Mining

Smelting

Underground Mining

Update Report on Energy Usage in Copper Mining for 2014 27

Chilean Copper Commission

Figure 23: Evolution of the participation of electrical energy per process in SING and SIC

Source: Prepared by Cochilco

In the case of the variation in electrical consumption in SING, the 147% increase in the

concentrating process stands out in the 2001-2014 period, which has increased over time with a

yearly rate of 8%. The LXSXEW process has also increased in usage, but on a smaller scale.

Electricity consumption by LXSXEW increased by 41% in 2014 with respects to the usage in 2001.

In the case of the change in the SIC, the increase in electrical consumption in the concentration

process is noteworthy, which has increased by 100% in respect to the same process in 2001. The

interconnected SIC system also discloses the increase of electrical consumption in the LXSXEW

process which rose by 43% in the 2001-2014 period (see figure 23).

Figure 24: Change in electrical energy consumption per process in respect to 2001

Source: Prepared by Cochilco

0%

20%

40%

60%

80%

100%

SING

0%

20%

40%

60%

80%

100%

SIC

2.47

0.54

1.41

1.70

8.59

0.00

1.50

3.00

4.50

6.00

7.50

9.00

0.00

0.50

1.00

1.50

2.00

2.50

3.00

20

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14

SING

Mina Rajo Concentradora

FundiciΓ³n RefinerΓ­a

LX/SX/EW Servicios

Mina SubterrΓ‘nea

2.00

1.07

1.43

0.75

1.00

1.25

1.50

1.75

2.00

2.25

20

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SIC

Open Pit Mining

Smelting

Underground Mining

Concentration

Refining

Services

Update Report on Energy Usage in Copper Mining for 2014 28

Chilean Copper Commission

In SIC as well as in SING there exists an increase in unitary consumption per ton of fine copper

content in the concentrator process. In SING there exists an increase in unitary electricity

consumption per ton of fine copper content processed in the concentrator of 69% in the 2001-

2014 period, while in the SIC it increased by 76%, with the increase being very similar in both

systems. In the case of the variation on the unitary consumption of electricity per ton of fine

copper in the LXSXEW processes a similar evolution is seen but in different magnitudes in both

systems. In the SING the unitary change increased by 25% in the 2001-2014 period, while the SIC

system reached a unitary change of 40% (see Figure 25).

Figure 25: Change in unitary usage of electricity per process per ton of fine copper, with respects to 2001.

Source: Prepared by Cochilco

Upon analyzing the unitary change of electricity for ore processing in the concentrator in the SING

and SIC systems it is determined that the growth is similar, although higher in the SIC system.

Therein, the annual growth rate in the unitary consumption of electricity per ton of copper

processed in the concentrator un SINGΒ΄s case is 1.36% yearly, while in the case of SIC it is 1.51% in

the 2001-2014 period. These rates determine that the unitary consumption of electricity for

treated ore increased by 17% in SING and by 21% in SIC in the 2001-2014 period. On the other

hand, the LXSXEW case shows a decrease in the unitary consumption of electricity per ton of

processed copper due to an increase of in low-grade copper ores processed. In this case the

electrical consumption per ton of treated copper in LXSXEW has decreased by 37% in SING while in

SIC it has decreased by 40% in the 2001-2014 period. (See figure 26).

0.25

0.50

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1.00

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1.50

1.75

2.00

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Unitary change in electrical consumption per ton of fine copper-SING

Mina Rajo Mina SubterrΓ‘nea

Concentradora FundiciΓ³n

RefinerΓ­a LX/SX/EW

Servicios

0.60

0.90

1.20

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1.80

2.10

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Unitary change in electrical consumption per ton of fine copper-SIC

Open Pit Mining

Concentration

Refining

Services

Underground Mining

Smelting

Update Report on Energy Usage in Copper Mining for 2014 29

Chilean Copper Commission

Figure 26: Change in unitary consumption of electrical energy per ton processed/extracted, with respect to 2001

Source: Prepared by Cochilco

0.27

1.17

0.63

0.20

0.40

0.60

0.80

1.00

1.20

1.40

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Change in unitary consumption of electricity per ore processed - SING

Mina Rajo Mina SubterrΓ‘neaConcentradora FundiciΓ³nLX/SX/EW

0.97

1.57

1.26

0.60 0.400.600.801.001.201.401.601.802.00

20

01

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Change in unitary consumption of electricity per ore processed - SIC

Open Pit Mining

Concentration

Underground Mining

Smelting

Update Report on Energy Usage in Copper Mining for 2014 30

Chilean Copper Commission

6. Final Comments

Copper mining increased total energy usage by 4.4% in the 2013-2014 period, which

translates to an increase from 154,834 TJ in 2013 to 161,716 TJ in 2014.

In the case of electricity consumption in mining, there was a 2.7% increase in the 2013-

2014 period. The principal contributor to the increased electrical consumption occurs in

the concentrator, which registered a 5.4% increase, which translates to an additional

consumption of 2,251 TJ in 2013-2014. The Pit Mining and Service processes increased

their electrical consumption in the aforementioned period by 9.3% and 10.45 respectively.

The electrical usage in the LXSXEW process diminished by 4.9% in the 2013-2014 period,

which translates to a 1,078 TJ drop. This decrease in the usage is principally due to

diminished production of cathodes through electro-winning, which dropped by 7.8% in the

same period.

The concentrator process has the highest share of electrical consumption in 2014,

reaching 55.7%. The unitary consumption for processed ores only increased by 0-8% in the

2013-2014 period.

In the case of energy usage from fuels, this increased by 6.4% in the 2013-2014 period.

This is due mainly to an increase in the consumption of diesel in the pit mining process,

which increased by 6.5% in the 2013-2014 period, principally for the start-up of new

mining projects, the increase in ore transportation because of important mining site

expansions, and an increase in ore transportation distances in the existing operations.

The pit mining process consumes the highest amount of fuel energy in 2014, reaching

76.4%. However the unitary consumption for extracted ore only increased by 0.7% in the

2013-2014 period.

In the case of electricity usage in the SING and SIC, they increased consumption in 2014 by

2.6% and 2.8% respectively, when compared to 2013.

Update Report on Energy Usage in Copper Mining for 2014 31

Chilean Copper Commission

7. Glossary

Following is the terminology used:

2.1 ENERGY: The type of energy used in each of the identified processes in the mining activity.

Two principal sources are identified: electricity and fuels. Additionally, in this report, the concept

of energy is identified as the total amount of fuel energy used and electricity used.

2.1.1 Fuels: Corresponds to the total of fuels used in mining to generate energy. The

fuels considered are: Coal, Gasoline, Diesel, Enap 6, Kerosene, Liquefied Gas, Natural Gas,

Wood, Butane, Naphtha, and Propane. The present report shows the use of fuels as units

equivalent to their energy output (terajoules), considering the process of generation and

the output of the same.

2.1.2 Electricity: Corresponds to the electrical energy consumed by the copper mining

industry from the Interconnected Norte Grande System (SING) and the Interconnected

Central System (SIC)

2.2 PROCESSES: Processes are understood as the production stages in mining, which are clearly

identifiable, required, and separate, according to the particularity of the tasks carried out in the

mining production.

2.2.1 Pit Mine: Understood as the set of individual processes necessary for the

extraction of ores from an open pit mining site for subsequent processing and mineral

recovery. Some of the principal processes are: drilling and blasting, transportation,

loading, primary crushing, and others. (Contemplates up to the separate process of

Primary Crushing).

2.2.2 Subterranean Mine: Understood as the set of individual processes necessary for

the extraction of ores from a subterranean mining site, using any type of subterranean

exploitation, for subsequent processing and mineral recovery. Some of the principal

processes are: drilling and blasting, transportation, loading, primary crushing, and others.

2.2.3 Concentrator: Takes into account all of the individual processes, after primary

crushing, involved in the production of copper concentrate. The principal processes

involved are: Crushing Plants, Traditional Milling, S.A.G. Milling, Concentration (Floating),

Filtering, and others.

2.2.4 LXSXEW: Takes into account all of the unitary hydrometallurgical processes

involved in the production of cathodes through electro-winning. The principal processes

include: Agglomeration, ROM Leaching, HEAP Leaching, Extraction with Solvents, and

Electro-winning.

2.2.5 Smelting: Takes into account all of the unitary processes involved in the copper

blister production based on copper concentrate. The principal processes include: Drying,

Fusion (ovens), Conversion, Heat refinery (refining and molding) and others.

Update Report on Energy Usage in Copper Mining for 2014 32

Chilean Copper Commission

2.2.6 Refining: Corresponds to the physical electrolysis process through which highly

pure cathodes are obtained.

2.2.7 Services: Corresponds to those activities which are not involved in the unitary

production processes in the principal value chain, yet are necessary to carry out mining

and use an important amount of energy, such as: energy usage in shops, mining camps,

impulsion and desalinization of water, and others.

Update Report on Energy Usage in Copper Mining for 2014 33

Chilean Copper Commission

This report was elaborated in the

DirecciΓ³n de Estudios y PolΓ­ticas PΓΊblicas by

Sergio Verdugo Montenegro M.

Mining Analyst

Rosana Brantes A.

Sustainability Analyst

Jorge Cantallopts Araya

Director of Studies and Public Policies

June / 2015