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Delivering the Antapaccay Project Delivering the Antapaccay Project
Max Combes - Project Director4 October 20124 October 2012
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Antapaccay project
• Project overview and status
Agenda
• Safety indicators
• Local employment
L l t t & it i t t• Local contracts & community investment
• Project layout
• Project costsj
• Project schedule
• Project metrics
• Project photos
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Antapaccay project overview and statusConcentrate production to start in October
Description• Location: Cusco Region (12km from Tintaya)
Copper in resource5• Location: Cusco Region (12km from Tintaya)
• Elevation: 4,200 metres • Ownership: 100%• Mineral Resource: 1,030Mt @ 0.49% Cu
Mt Cu
2
3
4
5
• Concentrator: 70ktpd, 1 grinding line
• Production: 160ktpa Cu for first five years, average over LOM 143ktpa Cu
0
1
2
2008 2009 2010 2012M d I di t d I f d• Approved capital cost: $1.47 billion
• LOM: 22 years
• First of the Standard Concentrator applications under Xstrata Bechtel Alliance
Measured Indicated Inferred
applications under Xstrata - Bechtel Alliance.
Project Status (as of Sept 28, 2012)
• Construction: 96%
• In Commissioning• In Commissioning
• Overall Project Progress: 94%
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Safety Indicators
0,610
Lost Time Injury Performance (LTIFR)
0,48
0,39
0,320,27 0,3
0,4
0,5
56789
LTIF
R
LTI
0 0 0
0,22 0,190,17 0,14
0,12 0,11 0,10 0,09
0 0 0 00,06 0,06 0,06 0,06
0,12
0
0,1
0,2
01234
sep 10 nov 10 ene 11 mar 11 may 11 jul 11 sep 11 nov 11 ene 12 mar 12 may 12 jul 12 sep 12
L
1
Measures taken to minimize safety risks:• Specific induction developed for the Project b h l d
Statistics:
• 16,400 people inducted to the project to date
sep-10 nov-10 ene-11 mar-11 may-11 jul-11 sep-11 nov-11 ene-12 mar-12 may-12 jul-12 sep-12
Contractor LTIFR 12mma
between Bechtel and Xstrata• Experienced Safety personnel • Risk Analysis; Safety Talks; Regular inspections; Contractor audits
• Extensive Safety Observation Program
p p p j
• 350,000 training hours on safety related subjects
• Total project hours to date 26 million.
• The project completed a record period of • Extensive Safety Observation Program• Special attention to Task Analysis and Change Management
• The project completed a record period of 14,000,000 work hours between Dec 2010 and April 2012.
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Local Employment Program as a project success factorDeveloping human capacity
Local Employment (Cumulative)• Strong focus on local employment
to maintain social license• During construction peak, 30% of
manual workers belonged to the 1200
1400
1600
communities exceeding the EIA target of 20%
• Local workers are trained and hold necessary skills800
1000
1200
y• 390 local workers have approved
training programs and were promoted to a higher skilled position
400
600
position• Over 1,800 local people have been
employed during the life of the project
0
200
Bechtel-Current Xstrata-Current Total
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Local contracts and community investmentSupporting local businesses
• The project has spent over $10M to date in the surrounding communities on Goods in the surrounding communities on Goods and Services
• At least 10 local contractors provided services to the projectC l k h l h l• Currently taking over Bechtel punch list using local contractors
• Main contracts included:– Site fencing services
Overland Conveyor sleepers fabrication– Camp refurbishment
– Water truck rental
– Architectural jobs
Overland Conveyor sleepers fabrication
j
– Office refurbishment
– Conveyor sleeper fabrication
– Miscellaneous buildings– Miscellaneous buildings
Alto Huarca Water Truck hired to the project
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Tailings Deposit - Tintaya open pit
Tailing Thickeners
Construction Camp
Concentrator Plant
Truckshop
Overland Conveyor
Primary Crusher
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Project costs in line with budgetCost savings offset inflationary pressures
• Definitive estimate completed in March 2011 confirming $1 473M total cost2011 confirming $1,473M total cost
• Project currently on budget
• Xstrata initiatives have saved the project over $60M, offsetting cost inflation and other costs that put pressure on the approved budget.
− Earthworks done by Owner
Water system redesign Primary crusher completed− Water system redesign
− Purchase order renegotiations
− Reduction of small tools rates
− Redesign of truck shop earthworks
Primary crusher completed
− Redesign of truck shop earthworks
− Piping and electrical works done by Owner
− Travel cost reductions
Overland conveyor completed
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Project currently in commissioning stageFirst concentrate production on track for October 2012First concentrate production on track for October 2012
Ac t ivity 2H09 1H10 2H10 1H11 2H11 1H12 2H12 1H13 Engineering Engineering
Interim EngineeringDetailed Engineering
Proc urement / Contrac tsMills & CrusherOther EquipmentStructural Steel
Cons truc t ion (*)Site EstablishmentMassive EarthworksMassive EarthworksProcess Plant
Produc t ionPre-StrippingCommissioning / Ramp-Up
Project Progress Planned Value Earned ValueEngineering 100% 100%Procurement & Contracts 100% 100%
g p pFull Production
Procurement & Contracts 100% 100%
Construction 100% 96%
Total (weighted) 99% 94%
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Antapaccay Project MetricsLarge scale project delivered on time and budget
Major Bulk Quantities UoM Quantity
Massive Earthworks m³ 3,200,000
Structural Earthworks m³ 1,400,000
Concrete m³ 118,000Concrete m 118,000
Steel Mt 12,180
Piping m 123,887
k hCable & Wire m 1,506,200
Instruments No 1,930
Mechanical Bulks Mt 1,831
Truck shop
Estimated job manhours 28 million
Manhours to date 26 million
Truck shop
Personnel at peak 4,700
Current personnel 3,700
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Grinding Area
• Commissioning Stage
11
Ball mill #2Cyclone clusters SAG mill
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Other Areas
Overland conveyor
12Tailings ThickenersRegrinding area Flotation area
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Q ti ?Questions?