in Chile

Interregional IAEA-CYTED-UNECE Workshop on UNFC 2009 Applications in Uranium and Thorium

Alberto Salas President & CEO Chilean Mining Association Santiago, July 10th 2013 SUBJECTS

 The Chilean Mining Association (SONAMI)

 Chilean Mining: Worldwide and National Leadership

 Challenges & Opportunities

SONAMI represents the Chilean private mining SONAMI : Chilean Mining Association

SONAMI is a trade organization that brings together and represents large, medium and small-scale metallic and non-metallic mining companies.

SONAMI was founded on September 26th, 1883 and since its inception, has made significant contributions to the development of private mining institutions and mining legislation.

Represents large, medium and small-scale mining companies SONAMI: Chilean Mining Association

We have worked to reach the following objectives:

 Promote the development of private mining. Be a referent in mining and represent our associates interests face to Chilean authorities. Provide information and support services to our members in technical, legal, labor, environment, tax and economic aspects. Represent Chilean private mining among international institutions (ICMM, SIM, IWCC, OLAMI-International).

Promote the development of private mining SONAMI: Chilean Mining Association

 75 mining companies, large and medium-scale, and exploration companies.

 38 mining associations, gathering more than 2.000 small mining companies

Fundada hace 130 años, en septiembre de 1883 MINING COMPANIES

Large-scale mining (Chile) MINING COMPANIES

Medium-scale mining (Chile) SMALL MINING ASSOCIATIONS

2.000 SMALL MINERS Chilean Mining

 The Chilean Mining Association (SONAMI)

 Chilean Mining: Worldwide & National Leadership

 Challenges & Opportunities

Worldwide and National Leadership CHILE: A SMALL COUNTRY

We represent the 0,6% of the

world surface and 0,25% of

population and income

However, in mining …. CHILE: LEADER IN MINING

World Production Product Production % of world

Ranking Chile 2012 production

1° 5.450 MTMF 32%

1° Natural nitrates 930 MTM 100%

1° Iodine 16.000 TM 58%

1° Lithium 70.000 TM 45%

1° Rhenium 27.000 TMF 52%

3° Molybdenum 35.000 TMF 15 %

The first world copper producer WORLD COPPER RESERVES

Chile 28,0% Australia 12,6% Perú 11,2% EEUU 5,7% México 5,6%

Fuente: U.S. Geological Survey, January 2013

We have the biggest copper reserves of the world MINING CONTRIBUTION GDP (%)

25

20.7 20.5 20 15,7% 15 16.0 14.9 13.0 14.0 13.1 10

5

0 2006 2007 2008 2009 2010 2011 2012 LEADER IN EXPORTS Average 2006-2012: 64,4 %

80 64,4% 70 66 66.9 59.8 61.6 66.4 64.4 64.8 60 50 40 30 20 10 0 2006 2007 2008 2009 2010 2011 2012

Source: SONAMI, based on Central Bank database. MINING IN TOTAL FISCAL REVENUE

% 40 34.2 31.4 30 21,7% 22.9 20.6 20 18.4 13.9 13.1 10

0 2006 2007 2008 2009 2010 2011 2012

Source: SONAMI, based on DIPRES database. MINING IN TOTAL FISCAL REVENUE 2006-2012 ( US$ millions)

1300 4100 160 330 18900 280

520 70000 41500 Minería

Energía 5400 Medio Ambiente Aporte Minería Presupuestos Otros Secr. General de Desarrollo Social la Presidencia Obras Públicas Salud Congreso,PoderJudicial y Contraloría

Source: SONAMI, based on DIPRES database. HIGHEST SALARIES (US$/month March 2013)

COUNTRY 1.116 MINING 2.344 ELECTRICITY 2.006 FINANCE 1.950 INDUSTRY 1.250 TRANSPORT 1.138 CONSTRUCTION 1.060 COMMERCE 1.058 AGRICULTURE 706

Source: Superintendencia de Pensiones ACCIDENT RATE PER ECONOMIC ACTIVITITY (each 100 workers) 2009 - 2012

9.0

8.0

7.0 4.9 6.0

5.0

4.0

3.0 1.6 2.0

1.0

0.0 Tpte. Ind.(1) Agric. (2) Comer. Constr. Serv. Electr.(3) Minería Pais 2009 7.7 7.4 7.2 5.7 5.7 3.8 3.6 2.2 5.3 2010 7.7 7.8 6.9 5.9 5.5 4.0 3.8 2.0 5.4 2011 7.9 7.8 6.8 6.2 5.8 4.0 4.1 1.8 5.5 2012 6.9 7.0 5.9 5.8 5.3 3.5 2.1 1.6 4.9

Mining: Lowest accident rate In other words …

Mining is the most solid pillar that sustains economic and social development of Chile and is the most competitive industry available in the country. 2022: COPPER PRODUCTION WILL REACH 9.000.000 TONS

9,000,000

7,000,000 3,550,000

5,000,000 5,450,000 5,450,000

3,000,000 2012 2022 2022: PRDUCTION WILL REACH 150 TONS 2022: SILVER PRODUCTION WILL REACH 2.800 TONS 2022: IRON PRODUCTION WILL REACH 40.000.000 TONS 2022: LITHIUM PRODUCTION WILL REACH 110.000 TONS 2022: IODINE PRODUCTION WILL REACH 25.000 TONS 2022: POTASSIUM PRODUCTION WILL REACH 2.500.000 TONS Identified Resources of Uranium in Chile

Identified Resources (RAR + IR) Origin (Ton U)

Surface Deposits 68.0

Metasomatic Deposits 1,762.8

Cenozoic Volcanic Deposits 100.0

Unconventional Deposits 1,798.0

Total 3,728.8

Identified Chilean resources (RAR + IR) are small, relative to identified resources worldwide. Is equivalent to only 0.07%. Uranium Production in Chile

 The nearest possibility of uranium production in Chile, is as a byproduct of copper mining.  In 2008 – 2009, and CCHEN sign cooperation agreements for performing uranium extraction activities.  In 2011, CODELCO agreed a collaborative alliance with France, in connection with its strategy to ensure the future supply of uranium.  Radomiro Tomic facilities has a pilot plant to assess the feasibility of installing an industrial plant. The pilot plant produces uranium concentrate (yellow cake) from copper treatment leach solutions (15 to 20 ppm of uranium).  The pilot plant accumulated production (20 to 30 kilos of yellow cake) has been available to the CCHEN. Challenges & Opportunities

 The Chilean Mining Association (SONAMI)

 Chilean Mining: Worldwide and National Leadership

 Challenges & Opportunities

SONAMI represents the Chilean private mining STRATEGIES CHALLENGES

The mining industry increasingly faces a complex scenario: Social: increased participation of stakeholders; Political: mining remains an important issue on the political agenda. Focus on benefits distribution and taxation. Environment: increasingly stringent regulations. MuchasTechnical: Gracias... declining ore grades. Competitiveness (energy costs; labor costs, capex, etc.)

CHALLENGES TO MINING (CHILE)

Acceptance and industry recognition; Water resources; Energy; Innovation and technology transfer; Human Capital Muchas Gracias...

Sociedad Nacional de Minería

Chile and its mining: a world of opportunities.

Muchas Gracias...

Thank you