FINLANDIA – LIDER EN MINERIA SUSTENTABLE
Desayuno Seminario Tuomo Airaksinen
Santiago 27.4.2016 #MiningFinland
27.4.2016 # M I N I N G F I N L A N D 1
RESUMEN
27.4.2016 # M I N I N G F I N L A N D 2
• Finlandia cuenta con un potente cluster minero que consiste de
minas, grandes empresas globales de tecnología, PYMES, sub-contratistas y organizaciones que ofrecen capacitación,
Investigación y Desarrollo y servicios de innovación
• Finlandia posee una larga tradición en minería y es cuna de varias empresas globales de tecnología, tales como Metso,
Normet, Outotec y Sandvik
27.4.2016 # M I N I N G F I N L A N D 3
La estrategia minera de Finlandia se propone reducir el impacto ambiental
• Gestión de aguas y tecnología para el agua
• Utilización de relaves y estéril
• Eficiencia energética
• Seguridad
Licencia para operar minas
27.4.2016 # M I N I N G F I N L A N D 4
Minería en Finlandia
27.4.2016 # M I N I N G F I N L A N D 5
Finlandia es un país minero por tradición con un reconocido expertisede primer orden
27.4.2016 # M I N I N G F I N L A N D 6
• Finlandia ha tenido centenares de minas en operación desde la
década de 1530 y vivió un gran boom minero ya a inicios de 1900 cuando se descubrió cobre en el pueblo de Outokumpu
• Los principales minerales que se explotan actualmente en Finlandia
incluyen los metales cromo, níquel, oro, cobre, zinc y platino, fosfato/apatita, calcita y talco
Mina Outokumpu, década de los 30 Mina de oro Agnico Eagle, 2015
Oferta Tecnológica
Soluciones sustentables, mayor productividad y ahorros en costos
27.4.2016 # M I N I N G F I N L A N D 7
Tecnología – Equipos y Servicios
27.4.2016 # M I N I N G F I N L A N D 8
• Más de 200 empresas en Finlandia ofrecen
equipos, sistemas y servicios para la industria minera
– Todas las etapas del ciclo de vida de la mina, de la exploración al cierre
– Equipos y servicios a lo largo de toda la cadena de valor
Oferta finlandesa en la Cadena de Valor de la Minería
27.4.2016 # M I N I N G F I N L A N D 9
Ingeniería, Diseño y Servicios de Consultoría
27.4.2016 # M I N I N G F I N L A N D 10
Equipos
27.4.2016 # M I N I N G F I N L A N D 11
Impacto de la tecnología y la innovación en la productividad
Kari Knuutila
Seminario de minería en el Crowne Hotel Plaza
Santiago de Chile
27 de abril de 2016
© Outotec - Reservados todos los derechos
El mundo no está aún preparado; se necesitan innovaciones para abordar los crecientes desafíos del sector
27 de abril de 2016 Impacto de la tecnología y la innovación en la productividad14
Producir más
• Mayor capacidad• Mejor recuperación• Menos paradas de producción
Producir con menos
• Costos fijos más bajos• Costos variables más bajos• Inversiones restringidas
Consumir menos
• Uso de agua mínimo• Eficiencia energética• Menor uso de la tierra
Emitir menos
• SO2 y CO2• Ceniza y otros polvos• Consumo deagua
Mejorar la seguridad
• Lugar de trabajo seguro• Condiciones higiénicas• Nivel de tensión mínima
Mantener la estabilidad
• Empleador confiable• Creación de puestos de trabajos• Evitación de cortes
© Outotec - Reservados todos los derechos
La eficiencia del equipo de proceso es un factor crítico a la hora de maximizar la productividad
• Controladores para la modernización• Tecnología no actualizada• Rendimiento metalúrgico deficiente• Falla mecánica frecuente• Desafíos del procesamiento de
minerales• Expansión de la planta• Unidad de accionamiento para
mejorar la eficiencia energética• Uso de equipos no óptimos
27 de abril de 2016 Impacto de la tecnología y la innovación en la productividad15
http://www.outotec.com/en/Products--services/Process-equipment/Flotation-cells/Flotation-modernization-guidebook/
© Outotec - Reservados todos los derechos
Un diseño de planta modular ofrece una solución rápida, efectiva y asequible para pequeñas minas o emplazamientos que requieren capacidad adicional
27 de abril de 2016 Impacto de la tecnología y la innovación en la productividad16
Un 20 % menos de inversión de capital
Un 30 % menos de mano de obra en la instalación
Fácil y económica de transportar, lo que permite su reutilización en
otras minas
© Outotec - Reservados todos los derechos
Estabilización y optimización de procesos a través de la automatización y el control de procesos avanzado
27 de abril de 2016 Impacto de la tecnología y la innovación en la productividad5
© Outotec - Reservados todos los derechos
La gestión integral del agua en minas ahorra costos operativos y minimiza las sorpresas medioambientales
27 de abril de 2016 Impacto de la tecnología y la innovación en la productividad18
Ahorro y gestión
del agua
Balances hídricos, positivo o negativo
Flujo, SS,
pH, uS, mV, etc.
Problemas de seguridad,
seguimiento medioambiental
Capacidades de
supervisión y evaluación
remotas
Aplicaciones de información, optimización y
predicción
© Outotec - Reservados todos los derechos
La aplicación de las mejores prácticas en la gestión de relaves hace posible un ahorro significativo en términos de costes operativos y reduce los riesgos de seguridad
• Las tecnologías de pila seca y de pasta combinadas con los bucles de agua cerrados son las mejores tecnologías disponibles para ahorrar agua dentro del entorno del concentrador
• Los riesgos a corto y largo plazo se pueden reducir significativamente al reducir la cantidad de agua en la instalación de almacenamiento de relaves en superficie
27 de abril de 2016 Impacto de la tecnología y la innovación en la productividad19
RELLENO DE PASTA
PILA SECA
Huella= 12 %OPEX= 37 %
PASTA
Huella= 53 %OPEX= 58 %
RELAVES ESPESADA
S
Huella= 72 %OPEX= 75 %
RELAVES HÚMEDOS
Huella= 100 %OPEX
= 100 %
• Identifique el terreno como nunca antes mediante el levantamiento LiDAR LiDAR Surveys provide revolutionary terrain knowledge
• Tecnología clave para planificación, infraestructura y operaciónUsed for effectively planning and monitoring all phases of a mine’s life
• Captura de datos fácil, rápida y económica Easy and cost-effective data collection
Aumente la rentabilidad con LiDARIncrease return on investment with LiDAR
23
• Levantamiento topográfico LiDAR para una cartografía al detalleLiDAR Survey provides the most accurate terrain cartography
• Planifique y monitoree de forma efectiva las distintas etapas de la minaUse for effectively planning and monitoring all phases of a mine’s life
• Medición de inventario de pilasStockpile volumen calculation
Identifique el terreno como nunca antesIdentify terrain as never before
Xabier Eraña
Geoinformation Specialist
+358-452-090-656
Curso de capacitación
Del 2 al 6 de mayo, 2016
Hotel Doubletree by Hilton
Santiago - Vitacura
Expertos en tecnología de polímeros
• Conductos industriales, sistemas y conectores• Productos técnicos de polímeros• Protección contra el desgaste y la corrosión• Productos finales de materiales poliméricos técnicos
Revestimientos para molinos de minería
Diseñamos y elaboramos revestimientos para molinos de minería apropiados a las necesidades de la industria de extracción y transformación. Los elementos del revestimiento se elaboran con goma de calidad TRL, desarrollada especialmente para las exigentes circunstancias de la industria de extracción y transformación.
Forman parte de nuestra gama de revestimientos de goma y de goma con superficie de acero, así como sus fijaciones.
Mangueras
Teknikum fabrica mangueras de caucho de alta calidad para los sectores industriales minero y de procesamiento de materiales más exigentes.
Nuestras mangueras pueden fabricarse en caucho natural, o en caucho SBR antiestático para aplicaciones de procesamiento en seco.
• Mangueras de manipulación de materiales para materiales altamente abrasivos• Acoplamientos y juntas• Mangueras de conexión para el aislamiento de vibraciones
Ventajas de Dynaset
• Fácilmente integrado a varios tipos de maquinaria
• Equipos compactos con excelente razón dimensiones/potencia
Reducción de costos
• Reduce el consumo de combustible
• Elimina la necesidad de motores adicionales
• La modularidad de los equipos facilita el mantenimiento
Negocio Ganador con Calidad de la Energía
www.meruspower.com
Soluciones y beneficios
Merus Power ofrece STATCOMs , Compensadores Estáticos de Var (SVCs), filtros acti vos de armónicos y Calidad de la energia Ininterrumpida (UPQ) con soluciones hasta los 38,5 KV y niveles de 250 MVar.
� Variaciones del voltaje� Factores de potencia pobres� Flicker� Distorsiones armónicas� Desequilibrio de las cargas
Problemas solucionados
Beneficios para el cliente
� Ahorro de dinero reduciendo el consumo de energía
� Mejora en la productividad� Mayor vida útil de la planta� Mayor capacidad para la red eléctrica
Aplicaciones
� Montacargas mineros� Machacadoras� Molino de bolas� Cintas transportadoras mineras� Excavadoras
Ejemplo de éxito –Mina de oro de Kibali en
Congo
8% más de capacidad en el montacargas5 millones de dólares americanos ahorrados en combustibleMayor vida útil de la planta
Referencias seleccionadas en minería e industria pesada
MONTACARGAS MINERO – CONGO
MACHACADORA - RUSIA
MONTACARGAS MINERO – CHINA
CINTA TRANSPORTADORA MINERA – SIERRA LEONA
INDUSTRIA METALURGICA - ECUADORBUQUE MINERO - NAMIBIA
VARIADOR DE FRECUENCIA - NAMIBIA
LAAJAKUVAESITYS
Vihjeitä ja työkaluja laajakuvadiojen luomiseen ja esittämiseen
Laajakuvaesitys
Tämä malli on muotoiltu 16:9 “laajakuva” -kuvasuhteella. Voit siis hyödyntää laajakuvanäytöllä varustettuja kannettavia tietokoneita, televisioita ja projektoreita.
Vaikkei sinulla olisikaan laajakuvanäyttöä, voit silti luoda ja esittää 16:9-dioja. PowerPointin diaesitys sovittaa diasi mihin näyttöön tahansa.
DRAGA ANFIBIAMULTIPROPOSITO
Para mantenimiento de lagos yrecuperación de materiales valiosos
www.watermaster.fi
MÓVILMovilidad única en agua y en tierraNo uso de grúas, remolcadores,
embarcaciones de apoyo, cabrestantes o
guayas
VERSÁTILDragado, rastrillaje, pilotaje - y más.
Desde 0 a 6 metros de profundidadReemplaza varias máquinas de una sola
función
PROBADACientos de unidades operando en
más de 70 países en todo el mundoFabricada en Finlandia
Finnish mining industry and technology landscape
2016
Mika Nykänen, GTK
Harry Sandström, Tekes/Spinverse
Maija Uusisuo, MEE
Geological Survey of Finland (GTK)
Mika Nykänen
Director General
GTK – un centro líder de competencia europeo en la evualuación y el uso sostenible de recursos geológicos
Proporcionamos competencia que sirve a los intereses de nuestros clientes, partidos interesados y la sociedad entera. Trabajando en colaboración con nuestros clientes y socios, creamos soluciones que conducen a las nuevas tecnologías y áreas de negocio, así como promueven el crecimiento económico sostenible.
GTK es una organización experta bajo del Ministerio de Trabajo y Economía de Finlandia. Empleamos a aproximadamente 480 personas, quienes están comprometidos con eficacia en su trabajo a nivel local, nacional e internacional.
Digitalizacion
Sociedades Economía minera
Tecnología limpiaTemas estratégicos
GTK 2016
VisiónCrear soluciones que adoptan nuevas tecnologías, avanzan las áreas emergentes de negocio y promueven el crecimiento económico sostenible.
Valores• Orientación al cliente• Colaboración• La confianza y la responsabilidad
GTK EN CHILEEjemplos para cooperaciones:
Red de Desarrollo Mineral – construcción de una red internacional de centros de capacitación en el sector de las materias primas
Tratamiento Comprensivo de las Aguas Mineras – recuperación de metales a través de adsorbentes insolubles innovadores
Procesamiento de Minerales e Investigación de Material es – toda la cadena de la investigación desde la caracterización mineralógica hasta el procesamiento de minerales y desechos mineros
Soluciónes Sostenibles de Energía – evaluación de potencial geotérmica y recursos de turba
Gestión de Datos Geológicos – competencia en la adquisición de datos, sistemas de información de datos geológicos, construcción de bases de datos, análisis de datos espaciales, modelaje de datos geográficos, y servicios de suminstro de datos
GTK 2016
Content
� Mining cluster in Finland
� Mineral potential and data
� Developing sustainable mining in Finland
Content
� Mining cluster in Finland
� Mineral potential and data
� Developing sustainable mining in Finland
Minerals cluster in Finland
Market needs
Commercialization
Policy
Regulations
Funding
Education
Modified from the original dia by Tekes/Harry Sandström
Extractive
industries,
metals
processing
Technology
and service
providers
R&D
organizations
Minerals cluster key figures in 2014
2014 Turnover (M€) Personnel
(direct )
Mining industry1 1 500 3 400
Natural stone industry2 200 1 350
Aggregate industry3 440 1 400
Metal processing4 8 640 12 700
Mining services, manufacturing of
mining and construction
machines5
2 000 6 100
Total 12 780 24 950
Mining cluster/tot industry % 10,0 8,1
1Metal ores and industrial minerals2TOL 08111, 08113, 2373 TOL 0812
4TOL 245 TOL 09, 2892
Source: Statistics Finland, MEE
GTK
Metals
Industrial
minerals
Kittilä
gold
Kevitsa
nickel
Pahtavaara
gold
Raahe
gold
Kemi
chrome
Hitura
nickel
Pyhäsalmi
Copper-zinc
TalvivaaraNickel-zinc
Jokisivu
gold
Parainen
calcite
Ilomantsi
gold
Lappeenranta
calcite
Orivesi gold
Lahnaslampi
talc
Kylylahti
copper
Polvijärvi
talc
Lohja
calcite
Siilinjärvi
phosphorus
Annual ore output (Mt)
< 0.10.1 - 0.50.5 - 1.0
1.0 - 10
> 10
Mines
• 45 mines (12 metals, 33 industrial
minerals and rocks)
• Turnover €1.5 billion
• Employees 3 400 (ex. subcontracting)
• The total extraction of rock 89 million
tonnes
Exploration
• Exploration expenditure €34,5 million
• 42 active companies
• Main target commodities Au, Ni, Cu,
PGM, ferrous metals, hitech metals
GTK
Mining industry in 2015
Source: Tukes
Metals processing industry in Finland
– The Finnish refining industry is energy efficient and it´s environmental emissions are low
– Total annual turnover is about € 9 billion
– Main products are: steel, stainless steel, ferrochrome, zinc, copper, nickel, cobalt products, silver and gold
– Metals manufacturing is more than 10 % of the total exports of Finland
Metals processing in Finland
Content
� Mining cluster in Finland
� Mineral potential and data
� Developing sustainable mining in Finland
GTK 2016
Why to Explore in Finland?
• Significant potential for new discoveries
• Excellent geodata and infrastructure
• Long mining tradition, know-how and services
• Strict but clear mining and environmental legislation
• Moderate exploration costs
• Favorable and secure investment environment
• Low corporate tax
• Downsream industry and proximity to major markets
Finland:
Geology Indicates Extensive Mineral
Resources
Nickel (Ni)
Chromium (Cr)
Copper (Cu)
Zinc (Zn)
Gold (Au)
Cobalt (Co)
Palladium (Pd)
Phosphorus (P)
Talc (Tlc)
Vanadium (V)
Lithium (Li)
Rare earth metals (REE)
Carbonates (Crb) Metallogenic map
Excellent Geodata
Full geographic data coverage
Geophysics vs deposits
3D modelling:
mineral
deposits,
bedrock
GTK – National Centre for Geoscience Data
GTK data collection
GTK’s GeoKernel
Data acquisition - Information management - Web-based delivery
Local government
Universities
Mining companies
Other sources
Informationservices
Geodata fromExternal sources
The science community
Business andconsultants
Society
Demand-driven surveying programmes
Metallogeny Map of the Fennoscandian Shield
Minerals Sector R&D Competence
• Management and delivery of geoscience data
• Geodata modelling and visualization
• Economic geology and exploration techniques
• Mineral beneficiation studies from lab to plant scale
• Applied mineralogy and isotope geology
• Mining environment research
• Selected references:
• coordinator of the €17m ProMine project
(30 partners from 11 countries)
• metallogeny compilations and databases on Fennoscandia
• 100 annual contract surveys on mineral processing
Metallogeny & databases
Mineral processing
Geological modelling
Content
� Mining cluster in Finland
� Mineral potential and data
� Developing sustainable mining in Finland
Government is committed in developing sustainable mining sector
• Mineral strategy October 2010
• Mining Act July 2011
• Green Mining programme funded by Tekes 2011-2016
• Development of mining industry included in the government agenda 2011
• Financing of mining industry and technology in state budget 2012
• Action plan for development of sustainable extractive industries 2013
• Research strategy for the extractive industry in Finland 2015
• Mining sector growth programme 2015
• Circular economy in the government agenda 2015
Practical measures
Government supports
• Mining infrastructure investments
• Research & Development & Innovation projects
• Tailor made training to company needs
Finnish mineral strategy 2010 -> Finnish Green Mining Concept
Promotes materials and energy efficiencyPromotes materials and energy efficiency
Ensures availability of mineral
resources for future needs
Ensures availability of mineral
resources for future needs
Minimizes adverse environmental
and social impacts
Minimizes adverse environmental
and social impacts
Improves work and organisational practicesImproves work and organisational practices
Ensures sustainable land use
following mine closure
Ensures sustainable land use
following mine closure
Less energy used in processRenewable energy utilizedLess side rock and wastesLess water used and discharged
New ore reservesAdvanced exploration techniquesMineral processing for low grades
Reduce of environmental footprint and emissionsMaximize positive social impactsConsidering of stakeholder interests
Culture of continuous improvement of safety, quality and environmental performance of the companies
Mine closure plan is started simultaneously with mine planning and is updated regularly during the whole life time of the mine
20 Research organizations
23 Mining and exploration
companies
80 Technology and service
companies
46 International partners
7 Others
Project portfolio total, m€ 115,01Tekes funding, m€ 55,09
Company funding(estimate), m€ 52,73RDO/University funding (estimate), m€ 7,29
Number of projects 98
Participants total
Focus of development
Intensive investment by Tekes on sustainable miningsince 2011
Water
Processing
Waste
Measuring
Exploration
Social aspects
Other
COMING OPPORTUNITIES:
Tekes and Conicyt both participate the next
ERA-MIN call
Tekes is able to fund Finnish companies pilot
actions in Chile
Harry Sandström
Exploration Feasibility Construction Production ClosureReuse
Business Processes
Permission Management
Support activities
Construction
Process
Communications and stakeholder relationships
HR management
FinancingCapitalization
Legal services
Exploration permits
EIA
Mining licensing
Environmental permits
Construction permits
Environmental monitoring & reporting
HSQE
Logistics
Maintenance
Data management and ICT
Analytics and measurements
Sampling
Physical infrastructure
Environmental engineering Soil construction
Architectural planning
House construction
Industrial planning
Facility construction &
installationsEnergy
infrastructure Energy supply
Mineral processing
Haulage & transport
Mining
Tech and Mach procurement
Process planning
Pilot tests Mine planning
Ore reserve assessment
Water processing and management
Ref: Harry Sandström
Finnish mining technolgy focus competence areas 2016
Mineral processing
Mining equipment
Paakkola Consulting
Environmental and social
impact assessment
Environmental monitoring
and water balance
management
Exploration technologies
and piloting
Measurement and
sampling technology
The Finnish Network for Sustainable Mining
Finland is a mining country
Finland’s strengths are:
• Finnish bedrock is rich of minerals and there is a great potential for new discoveries
• Excellent infra structure through the country
• Good availability of technology and services
• Investments have been made in education and research
• Skilled people
• Stable political environment
• Commitment to sustainable development in the mining sector GTK
Boosting Productivity in the Mining Process
26.4.2016
Harry Sandström
Senior Consultant
Spinverse Innovation Management
� Productivity in mining has declined 30% globally in a decade, McKinsey 2015
� Global mining stocks have lost US$1.4 trillion since 2011. This exceeds the total market value of Apple Inc., Exxon Mobil Corp., and Google’s parent Alphabet Inc. Bloomberg
News | January 11, 2016
� We believe, that our traditional operating practices are 20-30 years behind the other industrial sectors Mark Cutifani, Anglo
American Open Forum | November 2015
� Investments in greenfield exploration are deacreasing
The mining industry is facing perhaps the biggest challenges in modern
history?
ProductivityProductivity
mining
other sectorsin average
Exploration expendituresExploration expenditures
Finland
Global
Reasons for low productivity
� Low commodity prices
� Lower grades
� Deeper ores
� Higer energy costs
� Increased social and environmental demands and regulations
What about these?
Mine operations are siloed?
Partial optimization?
Got used to ever increasing prices?
Uncontrolled labor cost booming?
More focus on cost cutting rather than on producing added value?
Finnish Green Mining Concept
Promotes materials and energy efficiencyPromotes materials and energy efficiency
Ensures availability of mineral
resources for future needs
Ensures availability of mineral
resources for future needs
Minimizes adverse environmental
and social impacts
Minimizes adverse environmental
and social impacts
Improves work and organisational practicesImproves work and organisational practices
Ensures sustainable land use
following mine closure
Ensures sustainable land use
following mine closure
Less energy used in processRenewable energy utilizedLess side rock and wastesLess water used and discharged
New ore reservesAdvanced exploration techniquesMineral processing for low grades
Reduce of environmental footprint and emissionsMaximize positive social impactsConsidering of stakeholder interests
Culture of continuous improvement of safety, quality and environmental performance of the companies
Mine closure plan is started simultaneously with mine planning and is updated regularly during the whole life time of the mine
Investments in mining information technology are increasing
�Investments in inormation technolgyand IoT in mining industry areestimated to be close to 30 billion US$ in 2018Kelly Prowse
http://www.techvibes.com/blog/mining-things-
internet-2014-12-09)
--------Material characterization-----
Process optimization
Production ClosureConstructionFeasibility studyExploration
Advanced material characterization across theprocess chain
Continuous material and formation characterization and
aquisition of information from processes
From data to knowledge
Mine planning Environmental monitoring
Mining operation optimization Water balance management
Sorting and selective mining
Sensor layer
Connectivity layer
Value proposition layer
Data analysis layer
Knowledge
Data
Information
Measurement
IMA Engineering & Mine On-Line Service
On-Line Mine Applications
IMA Engineering & Mine On-Line Service
On-Line Mine Applications
The accuracy of the block
model increases through out
the mining process
Early stage exploration
Site exploration
Pre
feasibilityt
Feasibility
Construction
Production
10-15 years; 10 – 100 m€
1 - 2 years;
50 – 800 m€
> 5 years; 10 – 200 m€/a
Cum
ula
tive
cash
flo
w
What are the possibilities to shorten the the mine development
process
Better chemical and mineralogical
characterization of the material
Block model evolution across the
development phase
Concept of scalable mining
Value proposition of advanced material and formation
characterization
� Less side rock to the mill
� Better control of ore-side rock dilution
� Decreased energy consuption
� Enables to better optimize comminution and mineralprocessing phases
Exploration Feasibility Construction Production Closure Reuse
Business Processes
Permission Management
Support activities
Construction
Process
Communications and stakeholder relationships
HR management
FinancingCapitalization
Legal services
Exploration permits
EIA
Mining licensing
Environmental permits
Construction permits
Environmental monitoring & reporting
HSQE
Logistics
Maintenance
Data management and ICT
Analytics and measurements
Sampling
Physical infrastructure
Environmental engineering Soil construction
Architectural planning
House construction
Industrial planning
Facility construction & installations
Energy infrastructure Energy supply
Mineral processingHaulage & transport
MiningTech and Mach procurementProcess planning
Pilot tests Mine planning
Ore reserve assessment
Water processing and management
Ref: Harry Sandström
Expanding the IoM consept across value chain
� Condition basedmaintenance
� Occupational health and operational safety afetyplanning and control
� Installation and servicedocumentation
For further discussion
Harry Sandström
+358 400 709899
FOLLOW US:
WWW.SPINVERSE.COM
Interested of co-operation?
Do not hesitate to contact
Thank you for attention
Strategic Roadmap 2016-2035 to Unleash theMultiplier Effect of Mining in Chile
Hernán Araneda, Fundación Chile
FROM COPPER TO INNOVATION
Chile’s case study
Collective action supported by modern industrial
policy and public and private parternships to create
backwards/upwards linkages in a context of a stable tax
regime that has stimulated foreign and local investment
in mining.
Modern Industrial Policy
• Removing contrains: information and
coordination failures
• Stimulating the development of a demand-
driven education and training system
• Supporting suppliers development at different
stages (from start-ups to business escalation)
• Aligning public investment in R&D with industry
needs
0
5
10
15
20
25
30
35
40
0
5
10
15
20
25
30
35
40
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
% of people% of people Poverty Extreme poverty
Growth has been resilient
A long period of growth
has reduced poverty
dramatically
share of global copper
production (30%)
share of global copper
reserves (30%)
MINING SECTOR GDP AND ITS CONTRIBUTION TO NATIONAL GDP, 2003-2015
US$
in b
illions
*Annual average period 2003 - 2005**In the first quarter of the year
Copper mining Other mining activities Contribution of mining GDP (%)
Source: Consejo Minero, from information by Banco Central de Chile
0
5
10
15
20
25
30
35
40
2003-2005* 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015**0
5
10
15
20
25
30
35
40
MINE PRODUCTION OF COPPER AND COPPER PRICE, 2003-2015
Tonnes
in m
illions
(fin
e c
opper)
*Average annual period 2003 - 2005**Accumulated until April for Chile production, March for world production and showing average copper price to May
US$
per
pound
Chilean Production Rest of the world Production Copper price
Source: Consejo Minero, from information by Banco Central de Chile
2003 - 2005* 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015**
0
2
4
6
8
10
12
14
16
18
20
0
50
100
150
200
250
300
350
400
450
500
Mining GDP and its
contribution to Chile’s
GDP
Mining exports as a
proportion of total
exports (50%)
Copper as a proportion
of fiscal revenues (10%)
TFP of the chilean
copper industry
Labour productivity
WAGES
LABOUR
PRODUCTIVITY
Forecasting 2025…
What challenges are we facing?
SOURCE: FCH (BASED IN COCHILCO’S DATA)
-
1 000
2 000
3 000
4 000
5 000
6 000
7 000
8 000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
CU MINING PRODUCTION FORECAST(THOUSAND TCUF)
BASE/Operations BASE/Projects PROBABLE/Projects POSSIBLE POTENTIAL/Cu Projects
7.838 KtCuf
Cumulative Efforts
Scenario A
Fully Leveraged
Mining Potential
Scenario B
Wasted Potential
Level of Institutional
development
Level of human
Capital development
Level of supplier
development
R&D + Innovation
capacity
Productive
capacity
Ensure competitiveness of
productive base
Support investment
for growth
Ensure the future
(Exploration)
Cycle closure, positive
socio-enviromental balance
Scenario A
Effort Level
Scenario A
Cu Production
Copper
Production
Low
replenishment
of deposits
Energy
Communities
Productivity
Low grade
of deposits
Local supplier
capacity
Duplicity of
environmental
permits
60% of
reserves in
Central Region
Low
Appreciation
for mining
Human
Capital
Water
Tackling Mining Industry Challenges
Level of accumulated Capacity
Growing Water and Energy Demand
0
5
10
15
20
25
30
35
40
45
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
En
erg
ía (
Tw
h)
Base Probable Posible
40 TWH
PROJECTED ENERGY CONSUMPTION
(TWH)
• Increase in electricity demand from 23TWH to 40TWH
• High impact of energy on industry costs: aprox. 20%
• Increase of water consumption (fresh and seawater) of 66% (14,8 m3/s to
24,6m3/s) due decreasing grade of concentrate
• Use of seawater could increase over 40% of costs associated to energy
0
5
10
15
20
25
30
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Ag
ua
m3
/s
Agua Fresca Agua de mar
24,6 m3/s
PROJECTED WATER CONSUMPTION
(m3/s)
SOURCE: FCH (BASED IN COCHILCO’S DATA) Fresh water Seawater
Tailings
• Increase in generated tailings from 600 Mtpa to 1.300 Mtpa
• In 10 years mining will duplicate tons removed
• Future projects are in macro central zone, major population density areas
• Impact on communities
0
200
400
600
800
1000
1200
1400
1600
0
2
4
6
8
10
12
14
16
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Mt
de
min
era
l p
roce
sad
o
Mt
de
Cu
fin
o e
n c
on
cen
tra
do
s
Producción máxima de Cu en concentrados (Mt de Cu fino)
Procesamiento máximo en planta concentradoras (Mt de mineral)
RELATION BETWEEN TREATED MINERAL & FINE CU CONTAINED IN
PRODUCTION CONCENTRATE (Mt of Cu)
SOURCE: COCHILCO
Maximum production of Cu in concentrate (Mt of fine Cu)
Maximum processing of concentrate plants (Mt of mineral)
Mt
of
fin
e C
u i
n c
on
cen
tra
tes M
t of p
roce
ssed
min
era
l
• Challenges faced by the mining sector require innovation + R&D; if not addressed global
market share will be lost.
• Given the complexity of the current situation, isolated R&D and innovation initiatives are
not enough. They require a collaborative effort by all sector agents (mining companies,
suppliers, R&D centers, trade associations, etc.).
• Natural resources, particularly mining, offer a unique opportunity to develop local
knowledge (biotechnology, information and communication technology, automatization
and process control, etc.).
Mining as Source for Innovation
How to leverage the opportunity?
Investment Projects
Laboratory
analysis
Automation and
communications
Mine modeling
and process
software
Equipment design and
fleet maintenance
Training and
education
Environmental
engineering
servicesInstrumentation
Project
management
engineeringExploration
services
Optimization of
mineral processing
Specialized
contractorsRemote
prospection
Optimization of
smelters and
refineries
Mining Operations
Mine
planning
Designs of
metallurgical
processes
Blasting engineering Management
and control of
water
resourcesSlope design and
control Consultancy in
rock mechanics
Economic analysis
Geotechnical
services
Drilling services
Operations control
software
Environmental
engineering
Geological
consulting
Design of
tailing damsTransport
system designs
Robotics and
autonomous
mining
Remediation
services
Energy
management
Geotechnical
services
HR Training
Personnel
services
The Global Mining Industry is Rich in Knowledge-Intensive Activities!
KICK-OFF PRODUCTIVITY, INNOVATION &
GROWTH AGENDA
CHILE’S MINING & SUSTAINABLE DEV. REPORT: TOWARDS A SHARED VISION
MINING AGENDA KICK-OFF: A
PLATFORM FOR CHILE’S FUTURE
LAUNCH NATIONAL AND REGIONAL
MINING STRATEGIC PROGRAMS
CHILE’S MINING
INDUSTRY ROADMAP
(2015-2035)
MAY
2014
JUNE
2014
DECEMBER
2014
JANUARY
2015
APRIL
2016
An ongoing social dialogue and collective
action effort: government, mining
companies, suppliers, industry associations,
community representatives.
An inspiring and challenging Vision forMining
VIRTUOUS MINING, by strengthening competitiveness and
productivity it generates conditions that enable the emergence of
a robust innovation ecosystem fostering and accelerating a
knowledge economy.
INCLUSIVE MINING, favors the participation of communities
on generated benefits.
SUSTAINABLE MINING, incorporates design into all critical
operation variables affecting the social-environmental system.
Develop a services and goods
industry based on applied scienceand technology that addresses
productivity challenges in the miningsector through the creation of a robust
collaborative innovationecosystem with industry, suppliers,
scientific & research community—academia and State.
Export 130 to 150
millon Cu tons and
other minerals
80% of production at
first global cost
industry quartiles
US$ 4 b in goods and
services exports
250 world class
suppliers
Purpose & Impact
The development of mining as a dynamic goalLong term evolutionary process
Internationalization
and productive
diversification
1975 1985 1995 2005 2015 2025 2035 Año
Phase IIncubation of critical
capabilities
Phase IIDevelopment of local
supplier base
Phase IIIEcosystem development
Factor-driven
economy
Investment-driven
economyInnovation-driven
economy
Fuente: Basado en Porter, M., C. Ketel y M. Delgado (2007 ”The Microeconomic Foundations of Prosperity: Findings from the Business Competitiveness Index”; Capítulo 2, The Global Competitiveness Report 2007-2008, World Economic
Forum; Paginas 51 a 81. Disponible en (Agosto 2015): http://www.weforum.org/pdf/Global_Competitiveness_Reports/Reports/gcr_2007/Chapter2.pdf
Urzúa, O. (2013) “The emergence and development of knowledge intensive mining service suppliers in the late 20th century”, Tesis Doctoral (PhD), Univerdad de Sussex. Disponible en (Agosto 2015):
http://sro.sussex.ac.uk/45344/1/Urz%C3%BAa%2C_Osvaldo.pdf
Low income country Middle income country High income country
Comparative Advantages Competitive Advantages
94Minería, una plataforma de futuro - Una Estrategia de Desarrollo en torno a los Recursos Naturales
¿WHAT IS A WORLD CLASS SUPPLIER?
A Supplier, established in Chile, with a
service of exportable quality
250 world class suppliers 2020CHALLENGE
Impact of suppliers in sector competitiveness continues to grow
Today, 60% of operational
costs
1980 1990 2010
7.000
6.000
5.000
4.000
3.000
2.000
1.000
0
Codelco’s evolution of costs
Insumos y Servicios de Terceros como Proporción del Costo Operacional Codelco
Millones de US$. Moneda de cada año
Services Inputs Other Operational Costs
At a glance
WCSP, a Collaborative Process of Value Creation
Mining Companies
challenge
Project Project Project
Suppliers
R+D Universities
challenge challenge
…with the Generation of Shared Value
Mining Companies
challenge
Project Project Project
Suppliers
R+D Universities
challenge challenge
•Solution to mining site
problems
• Improve productivity
and competitiveness
Mining
Companies
•Access to real scale test lab
• Improve technology offer
and business capabilitiesSupplier
Companies
Mining
Industry• Improves competitiveness
• Improves productive chain
capabilities
•Transversal problems
solutions
•Development of sector intensive
in knowledge and technologies,
capable of exporting products
and services to other latitudes
Country
Mining Supplier´s Ecosystem
Virtuous Cycle
Mining
Innovation and Entrepreneurship
Open Culture
Piloting
Collaborative
Scouting
AnticipationResults
Efficiency
Long Term
World Class
Strategic
Industry
Large Scale WORLD CLASS
SUPPLIERS
PROGRAMME
Skills Development Strategy Across the
Mining Value Chain
1
23
4
5
6Training packages
Quality framework for
training instructors
Quality framework
for training trades
Demand Study
Qualifications
framework
Companies / work
Certification system
Education and
training
Process
maps
Learning
paths
Program
descriptors
Occupational
profiles
How to manage production to reach higher
productivity.
CCM: A Chilean mining Human Capital
Initiative
Christian Schnettler
Manager of Mining Skills Council
Consejo Minero
April 27, 2016
Main Human Capital Challenges – Chilean Mining human capital challenges
mining sector in Chile• Productivity Improvement
• Alignment of industry demand and Chilean educational system
• Quantity – Gap projected by large scale mining companies and key
suppliers
• Quality – Skills demanded by the mining sector
• Attraction of younger generations
Mining sector
initiative
to align labor
market demand
with
“Formación para el
trabajo – Job
training”
Provide
quality
demand
information
Establish
quality
standards
Define
job profile
requirements
CCM – Consejo Competencias MinerasA win/win effort
JOB PROFILES
COMPETENCIESCOMPETENCIES
Developing Human Capital for the Chilean Mining Sector
DEMAND NATIONAL
CERTIFICATION
SYSTEM
QUALIFICATION FRAMEWORK
QUALITY FRAMEWORK FOR
TRAINING PROGRAMS
TRAINING PACKAGES
QUALITY FRAMEWORK FOR
INSTRUCTORS 4
3
5
EDUCATION AND
TRAINING
MINING
SECTOR
1
2
6
CCM Partners
Mining companies:
1. Anglo American
2. Antofagasta Minerals
3. BHP Billiton
4. Codelco
5. Collahuasi
6. Freeport McMoRan
7. Glencore
8. KGHM/Sierra Gorda
9. Kinross
10. Lundin
11. Teck
95% of Chilean copper production
Providers: 12. Finning Chile S.A.
13. Komatsu Chile
Associations:14. Aprimin
15. Asociación de Industriales de
Antofagasta
16. Consejo Minero
CCM 2012 - 2015Results
4 4 30
33 11 150
Demand Studies
Versions
of MCM
Training Packages
Train the trainers
instructorsTraining programs
with CCM SealTrained
Evaluators
Mining workforce Projections 2015 - 2024
• Projected demand for the decade 2015 – 2024 amounts 30.000 workers in the large scale
mining in Chile including 18.400 that will be reaching retirement age (61%) .
• Job profiles with highest demand are mechanics and operators (mine and process) which
represent 2/3 of the total demand.
• Demand will have a slow down during 2016 and 2017, recovering growth rate starting 2018.
• Higher education related to mining technical level is highly concentrated in few institutions
(+ 60% in two of them).
• Education continues to be unaligned with the mining market, generating surplus in some
specialties and important gaps for other jobs. This lack of alignment must be resolved by the
educational institutions and national authorities.
Gaps per profile 2015 – 2024(thousand of persons)
The Consejo Minero
• Currently we are working with the “Comisión Nacional de Productividad” that
joins associations, workers, academics, public sector, etc.
– This organization is conducting a productivity study for the mining sector to be
finished as of Y.E. 2016. Its objective is to capture productivity data at company level
as well as mining sector patterns in order to generate a national benchmark with
recommendations at company level, mining sector practices, as well as public politics
required to improve Chilean mining productivity.
– Consejo Minero is facilitating consultants work at the sites as well as data gathering.
• Currently the Consejo Minero members have identified three areas of interest
to start working collaborative projects ( Tires disposal, Tailings, “Material
particulado”). which have been included in the Mining Roadmap of Alta Ley.
April, 27 2016
José Robles B.
Vice President of Productivity and Costs
Chile – Finland Meeting
Productivity Challenges in Mining
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MINING PRODUCTION FUCTION: COMPLEX EQUATION
PRODUCTIVITY
CAPITAL
LABOUR FORCE
ENERGY
WATER RESOURCES
LOGISTIC & INFRASTRUCTURE
AUTHORITIES AND REGULATIONS
COPPER AND BYPRODUCTSPRODUCTION
FUCTION
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PRODUCTIVITY COMPARISON, USA,
AUSTRALIAN MINING SECTOR
Aggregate productivity country
has fallen, the overall average
represents 33% of the USA.
In mining, the productivity is
equivalent to 68% with respect
to Australia.
At Codelco, labor productivity
has fallen 30% over 2000 base
year (own + contractors).
Productivity comparison, USA, Australian Mining sector
CODELCO
AVERAGE
SUBCONTRACTORS
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CODELCO INVESTMENT PLAN
Sources: Wood Mackenzie y Codelco.
0
3
6
9
12
15
18
21
24
27
30
0
50
100
150
200
250
300
350
400
450
500
1996 1999 2002 2005 2008 2011 2014
Copper Price t-1
c/lb
Unitary Investment
Mill US$/ktpd
COPPER PRICE AND CAPEX/TMS
• Capex reduction of US$ 2 billions in
the period 2015 - 2016.
• It is possible an additional reduction
during 2016.
• Reduction CAPEX + OPEX of US$ 6
billions in the period 2015 – 2020.
• The objectives are: reduction of cash
and lower costs for investment due to
less projects activity.
x 3
0
1 000
2 000
3 000
4 000
5 000
2015 2016
ORIGINAL PLAN REAL/OPTIMIZED
TOTAL INVESTMENT
Million US$
Note: Year Budget currency.
The strengthening of corporate
governance and the capitalization
of the company are key to the
realization of the Investment Plan
of Codelco.
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CASES
THE NEW “VIEJOS”: ¿LABOUR FORCE OF THE FUTURE?
GENERATION Y
This generation ischaracterized as prosumers,i.e. producers and consumersat the same time. In thedigital environment, createand consume constantly.
Platform aimed at youngpeople with 0-2 years of workexperience, to findemployment or professionalpractice.
Company reduced workingtime to encourageentrepreneurship. It ispossible to get 4 free hoursper week and up to 2 freedays to be undertaking.
U.S. Bureau of Labor Statistics
Young people between 18 and 35 years,
digitized, globalized, informed, motivated
and challenging.
Today they account for 25% of the labour force. However, the 2030
will reach 75%, which represents an important focus for employment
in all industries. By 2020, Codelco will be more young people than old.
Are we prepared?
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ENERGY COST IN THE COPPER MINING INDUSTRY
Source: Wood Mackenzie y Codelco.
0
2
4
6
8
10
12
14
16
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
China Perú EE.UU. Australia Zambia Rusia Chile
c/KWh, constant currency
Energy Intensity (Mwh /fmt) will increase
30% in the period 2015 - 2025.
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0,67
0,69
0,65
0,61
0,57
0,53
Case of I a IV Region in 2013
0
50
100
150
200
250
300
NEVERTHELESS LOWER WATER CONSUMPTION IN THE MINING INDUSTRY NEW ENVIRONMENTAL RESTRICTION IMPLY MORE EFFICIENCY IN THE WATER RESOURCES USE
Improvement Evolution in Mining IndustryMining Industry - Water Resources Use
Chilean water consumption in mining
0.70
0.65
0.60
0.55
m3/ton
-23%
20132012201120102009
m3/s
Total
254
100%
Farm Sector
183
72%
Sanitary Sector
58
23%
Large Mining
135%
Fuente: Presentación Jorge Gómez, CRU Copper Conference 2015. Informe Proyección de consumo de agua en la minería del cobre 2015, Cochilco; Análisis Prensa; Consejo Minero; Análisis BCG.
2014
CODELCO plans to use sea water in the future. The existence of
public policies to support this goal could allow to coordinate
efforts, to "share" the cost of installation.
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NEVERTHELESS LOWER WATER CONSUMPTION IN THE MINING INDUSTRY NEW ENVIRONMENTAL RESTRICTION IMPLY MORE EFFICIENCY IN THE WATER RESOURCES USE
Unit of water consumption per ton of processed copper 2009-2014 (make up)
Leaching of Sulphides as the solution?
Copyrights© 2015 CODELCO-CHILE. Todos los Derechos Reservados. | Copyrights© 2015 by CODELCO-CHILE. All Rights Reserved.121
LOGISTIC AND INFRASTRUCTURE
Current Logistic (obsolescence)
Rail + Truck Optimization Sustainable Containers
Land Transportation Port Inventory Shipping
Port transportation – Turn over Containers
CATHODES:
COPPER CONCENTRATES:
More stable transport to port, storage and shipping.
Copyrights© 2015 CODELCO-CHILE. Todos los Derechos Reservados. | Copyrights© 2015 by CODELCO-CHILE. All Rights Reserved.122
R & D: Applied Innovation to increase productivity
• Operational Solutions
– Open pit risk zones/ Remote mining.
– Operational control / Robotic Samples of
concentrate
– Reliable Maintenance/ Big data.
• Resources into reserves transformation
– Productivity and safety/ Semi autonomous trucks.
– Impurities/ Complex Concentrate processes.
• Competitiveness breakthrough
– Productivity and innovation/ Continuous mining.
– Productivity and friendly environmental / Sulphide
Leaching.
ROBOTIC SAMPLES OF CONCENTRATES
SEMI AUTONOMOUS LHDSULPHIDE
LEACHING
ORE Gr > 2% Ore Gr ~ 0,5%
Just a few examples of how applied
innovation could help increase productivity!
Copyrights© 2015 CODELCO-CHILE. Todos los Derechos Reservados. | Copyrights© 2015 by CODELCO-CHILE. All Rights Reserved.123
• Communities demand earlyparticipation in new projects and mustbe considered on benefits distribution.
• New labour force: Gen Y
• Land and water restrictions.
• New environmental regulations.
• DS28 Smelter Standard
• Safety: First Priority
• Energy: B.A.N.A.N.A Effect
• Deeper mining resources and lower oregrades.
• Higher impurities imply new and morecomplex treatment processes.
• More capital – same or less production.
CURRENT CHALLENGES IN MINING - SUMMARY
P
E
O
P
L
E
R
E
G
U
L
A
T
I
O
N
S
R
E
S
O
U
R
C
E
S
April, 27 2016
José Robles B.
Vice President of Productivity and Costs
Chile – Finland Meeting
Productivity Challenges in Mining
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