digital codelco sep2011

DIGITAL CODELCO

CIO Office,CODELCO

Germany, Walldorf.

Sep, 2011

Copyrights © 2011 CODELCO-CHILE. Todos los Derechos Reservados. Copyrights © 2011 by CODELCO-CHILE. All Rights Reserved.

CODELCO

http://www.codelco.com

CODELCO DIGITAL

3Copyrights © 2011 CODELCO-CHILE. Todos los Derechos Reservados.Copyrights © 2011 by CODELCO-CHILE. All Rights Reserved.

CODELCOA Global Company

Distribución Ventas de Cobre de Codelco

MICOMOCODELCO/NTT

BIOSIGMACODELCO/NMM Co. Ltd.

KAIROS MININGCODELCO/HONEYWELL

MinesHeadquarters

SubsidiariesAgents

Joint Ventures

CODELCO DIGITAL

DIVISIÓN CHUQUICAMATA

DIVISIÓN MINISTRO HALES

DIVISIÓN RADOMIRO TOMIC

DIVISIÓN SALVADOR

DIVISIÓN ANDINA

DIVISIÓN VENTANAS

CASA MATRIZ

DIVISIÓN EL TENIENTE


World Copper Reserves

Note: Other countries: 13%.Source: U.S. Geological Survey, January 2010.

20%

6%

6%

12%

5%

7%5%

4%

4%

3%

3%

1%

13%

Chile

Perú

México

USA

CanadáPolonia

Rusia

Kazajstán

China

Indonesia

Australia

Zambia


Codelco

Largest copper producer in the world, app 11% of world production.

2010 Production: 1,9 millions ton.

2010 Sales: US$13.459 millions

Control of 10% of proven reserves of copper in the world.

100% ownership: Chilean State.

Largest exporter of Chile.

CODELCO DIGITAL

DIGITAL CODELCO

CODELCO DIGITAL


CODELCO Challenges

• Make the most of increasingly complex minerals.

• Continuous search for improvements and productivity increases.

• Progress in the automation of production processes.

• Sustainability, develop clean mining (medium-environmentally "friendly").

• Increase the security of operations and improve the quality of life of workers.

• Develop a corporate culture that manage knowledge and promotes continuous innovation

• Check early design of structural projects the TICAR potential.

For all of this challenges ITC&A is strategic.

Source: Internal documents and interviews to executives of the divisions of the Corporation.

CODELCO DIGITAL


CODELCO’s Main Short Term & Structural Mining Projects

CODELCO DIGITAL


Years ago our business was based on the physical work, and mining became synonymous of Sacrifice

In those days ...

Workers coming from the field

High grade ores

Almost non-existent regulations


Today...Our main partners are the knowledge, innovation

and technology

The business .... Every day is a different business

What to us yesterday was successfulNo longer a guarantee for the future ...


Yesterday Today Tomorrow

Physical Labor

Technology

Knowledge

Developments in the mining industry does not stop with imagination, knowledge and technology reach produce from the air...

The challenge is to think today at: processes we tomorrow together with people and technologies that bear them view the company that we have

CODELCO DIGITAL


Future VisionHypothesis

“ Over the years the Mining Business from a Business will focus on physical actions to be one primarily

focused on knowledge and technology.

Companies that anticipate this change will be able to establish early leadership strategies to position itself in

the mining of the future, and thus attract and / or convert timely talent required for their new processes ”

“ Over the years the Mining Business from a Business will focus on physical actions to be one primarily

focused on knowledge and technology.

Companies that anticipate this change will be able to establish early leadership strategies to position itself in

the mining of the future, and thus attract and / or convert timely talent required for their new processes ”


Our Vision: “DIGITAL CODELCO”Our Vision: “DIGITAL CODELCO”

Digital CODELCO is the way to see the CODELCO in the future through the prism of the ITC&A, this vision feeds, and is inherent in the company business plans. A Codelco:

With Mining:

• Automated

• Robotic

• Teleoperated

• Distance Integrated Operation

• Online & Real-Time Information

• With Collaborative Processes and Knowledge Management

We do not see a truck... we see always connected digital system, equipped with autonomy, in an intelligent mine, in a digital world ...

The ITC&A CODELCO's team and its partners work to make certain this dream.


ITC&A Infrastructure: Integration to the Operation

Integrated Control Room Mining ProcessesIntegrated Control Room Mining ProcessesRemote telecommand, LHD &

hammersRemote telecommand, LHD & hammers

Autonomous TrucksAutonomous Trucks

Corporate Fleet Control System Mining

Corporate Fleet Control System Mining

Automation ProgramAutomation Program

Support & Monitoring Corporative Centre for Concentrator Plants (Kairos)Operation Integration for Divisions: Codelco Norte, Andina y El Teniente

Support & Monitoring Corporative Centre for Concentrator Plants (Kairos)Operation Integration for Divisions: Codelco Norte, Andina y El Teniente

Robot that replaces CathodesRobot that replaces Cathodes


Organizational Development and ITC&A Environment

Business Prio

Support

Cross

Strategic Objective Cat.:

OE8: Level and systemically incorporate ITC&A technologies value chain to improve efficiency and integration

OE8: Level and systemically incorporate ITC&A technologies value chain to improve efficiency and integration

OE9: Implement a model for the continuous incorporation of ITC&A's facilitating integrated working between Divisions and Corporate

OE9: Implement a model for the continuous incorporation of ITC&A's facilitating integrated working between Divisions and Corporate

OE2: ITC&A incorporate focused on reducing costs, increasing productivity and safety of persons

Strategic Map for ITC&A in CODELCO

OE1: Optimize and leverage the installed base ITC&A

OE3: ITC&A incorporate to structural projects from their earliest conception

OE4: Fully manage the mining operations

Phase IConsolidation and profitability of TICA in Business

Phase IIIncorporating ITC&A Transformational to the Business Processes

2010 2012 2016NNM, PDA-F2, CHS, MMH, otros

OE5: Integrate systems and processes for making decisions, focusing on the existing and short-term

OE6: Automated, robotic and incorporate telework in production processes

OE7: Manage the necessary changes to existing working practices as a result of the incorporation of technology and upgrade the knowledge and skills of ITC&A people

MMH

Copyrights © 2011 CODELCO-CHILE.. Todos los Derechos Reservados.Copyrights © 2011 by CODELCO-CHILE. All Rights Reserved.


Cross ITC&A Programs

TICA -> AN ENABLER FOR THE PROPOSED CODELCO TRANSFORMATION TICA -> AN ENABLER FOR THE PROPOSED CODELCO TRANSFORMATION

Integrated Management for real-time decisions

Planning and Knowledge Management

Equipment Teleoperationand Robotization

Operational Process Automation

Logistics for the Input & Output

Human Development ITC&A Program Associate

Integrated Maintenance Management (Symptomatic / Preventive / Corrective)

Energy Efficiency and effectiveness in the use of natural resources

Fase IConsolidation and profitability of TICA in Business Fase II

Incorporating ITC&A Transformational to the Business Processes

2010 2012 2016

STRATEGIC ALLIANCES FOR DIGITAL CODELCO

CODELCO DIGITAL


Creation of technology-based companies with scientific and technical capacity

The Working Model: We need partnerships that generate technology for the Future of Mining from Chile

CODELCO DIGITAL

THE FUTURE VISION

CODELCO DIGITAL


"The first step has already been made " - in the way of mine automation and control processes in real time

LEV

EL O

F A

UTO

MA

TIO

N INTELLIGENT MININGINTELLIGENT MINING

REAL-TIME MININGREAL-TIME MINING

BASE MININGBASE MINING

Oral Communication Network Highly mechanized equipment Some automated processes

Computer in the mining process

Partial Information Network Automated Processes Locator System Automatic Controlled Machine - Remote

Wide Information Network Mining All autonomous machines Nonhuman Production & Processes Remote Production

TIME

5 years5 years

10 years10 years

Trends


Towards a continuous mining

Future Vision

Transportation

Concentration ProcessSmelter Process

Energy

Quality Control

Environmental

Management


CHUQUICAMATACHUQUICAMATAsitesite

ANDINAANDINAsitesite

EL TENIENTEEL TENIENTEsitesite

WAN CODELCO

Monitoring/Support/Control Centers


24

The future is inventing with and for the People


Desired Future Position of ITC&A Aligned to Business

Fase I Consolidation & profitability of ITC&A in the Business

• Efficiency in the use of ITC&A

• Update competences.

• Proper integration of information system.

• Supported technology:

• Integrated Operation Centers.

• Robotics and autonomous equipment in relevant processes.

• Assisted by remote processes.

• Resource management.

• An organization that has internalized work practices in line with higher levels of incorporation of ITC&A.

2010 2012

CODELCO DIGITAL


Desired Future Position of ITC&A Aligned to Business

Fase II The impact of new ITC&A in the evolution of the business process

2016

• Automated & remote operations, robotics.

• Real time collaborative decision making system.

• Use of standard technologies.

• Update working practices and competences.

2010

Transport

Concentration

Process

Smelter

ProcessEnergy

Quality Control

EnvironmentalManagement

Remote

Operation

CODELCO DIGITAL


Thanks …

digital codelco sep2011

Documents

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codelco digitalcodelco

codelco norte

codelco oe1

codelco http

mining business

digital codelco cio

digital waywith