CHILE MINING 2021 CHILE MINING 2021

Political Overview - Production - Exploration - ESG Equipment & Technology - Engineering & Consulting - Services Dear Reader,

Welcome to our Chile Mining 2021 publication, where we dive deep into the chal- lenges, opportunities and competitiveness of the Chilean mining industry, as well as ongoing trends and debates on automation, digitalization, the copper cycle, the future of lithium and potential for gold.

Our Chile Mining report of 2020 highlighted the battle the country fought with the social unrest and how the industry was impacted. Chile was hopeful at the beginning of 2020 to start the year on a clean slate. However, the world witnessed the Covid-19 pandemic unravel, plunging global economies into recessions and triggering trillion- dollar stimulus plans.

Fortunately, the Chilean mining industry has shown remarkable resilience and perse- verance, as it withstood the external pressures well compared to other leading copper producers. This was facilitated by the industry’s early trial at remote work in Octo- ber 2019 and the boom in commodity prices that pushed base and precious metals to record-highs that gave hope to the global mining sector.

The pandemic has also significantly accelerated technology adoption across the entire supply chain as companies adopted remote working techniques. However, there were challenges as supply chains were disrupted due to lockdowns and social distancing measures.

The pandemic aside, the industry in Chile is fighting some of the same battles we see every year with water scarcity, rising energy costs and decreasing total factor produc- tivity. This year we are witnessing significant investments in R&D by equipment and service providers to address these challenges.

In parallel to these events, the country is undergoing a pivotal process that will dictate its future: rewriting the national constitution. Some investors and analysts remain wary of how this might impact mining investment, although regulators should be aware of the industry’s significance and its crucial role in the country’s economic growth and development.

This report is the product of over 70 interviews with major mining companies, junior mining companies, service providers, equipment and technology suppliers and govern- ment officials, as we try to paint an accurate picture of the present state of the industry and attempt to foresee its future direction.

Thanks for reading!

Alfonso Tejerina General Manager and Director GBR CONTENTS / CHILE MINING 2021 Introduction PERU to Chile BOLIVIA CHILE MINING 2021 Industry Explorations Arica The impact of the pandemic, Global Business Reports upcoming constitutional reform

This research has been conducted by and an economic overview Lucrezia Falcidia and Germaine Aboud Iquique Edited by Mungo Smith Introduction to Chile Engineering and Construction Graphic design by Gonzalo Da Cunha

A Global Business Reports Publication 8. Chile faces hurdles to maintain 54. Engineering and Consultants For updated industry news from our Tocopilla 6-21 on-the-ground teams around the world, leadership position – An overview of 55. Interview with SRK Consulting please visit our website at gbreports.com, mining in Chile 56. Interview with Wood subscribe to our newsletter by signing up to our VIP list through our website, 9. Interview with Bi-Minister of Energy 59. Interview with JRI Ingeniería or follow us on Twitter @GBReports and Antofagasta LinkedIn (gbreports) and Mining 60. Interviews with Arcadis and CDM Smith 11. Interview with Chilean Copper 61. Interview with Ausenco Commission (COCHILCO) 64. Interviews with Aggreko and with Taltal 12. Interview with the Association of Techint Engineering and Construction Chañaral Industrial Mining Suppliers (APRIMIN) 65. Expert Opinion: 14. Political and economic overview The red metal for a greener world Caldera 17. Interviews with Plusmining and 66. Construction and Contractors Copiapó with Invest Chile 67. Interview with Echeverría Izquierdo 18. Interviews with EY Chile and 68. Interview with Promet with Montt Group 69. Interview with Sigdo Koppers Ingeniería

La Serena 19. Expert Opinion: y Construcción (SKIC) Chile’s constitutional process and 70. Interview with Edyce Ovalle royalty reform discussion – Business as 71. Technology-driven solutions Production, usual or transformative landscape? 72. Interview with Strabag Züblin 21. Insights from the Ground: 73. Interview with Tecno Fast Development and Paci c San Felipe Concerning the constitutional reform 74. Interview with Nexxo Ocean Valparaiso Santiago and its impact on mining 75. Interview with Thiess Exploration San Antonio Copper and gold production Rancagua updates, rise in mid-tier mining and the future of lithium in Chile Talca ARGENTINA Production, Development and Equipment and Technology Exploration Chillán 78. The journey to Smart Mining 22-51 Concepción 24. Copper 79. Interview with HighService Corp. 26. Interview with Antofagasta Plc 80. Interview with Finning 27. Interview with Anglo American Chile Temuco 81. Interviews with Sandvik and with Epiroc 28. Majors’ production and brownfield 82. Autonomous Technology expansion updates 83. Interview with Komatsu Cummins Valdivia 31. Interview with Freeport-McMoRan 84. Interview with Liebherr Chile Osorno 32. The rise of mid-tier mining 85. Interview with SKC Maquinarias Puerto Montt 33. Interviews with Capstone Mining, Los 86. Underground Equipment Andes Copper and Altiplano Metals International Boundary Ancud 87. Comminution and Material Handling State Boundary Castro 34. Codelco – Going underground 88. Interview with Weir Minerals 35. Copper Exploration National Capital 89. Interview with Metso 36. Interview with Pampa Metals State Capital 90. Interview with Tecnipak 38. Interview with Torq Resources 91. Interviews with Hofmann Engineering 0 100 200 300 Kilometers 39. Insights from the Ground: and with Bosch Rexroth Engineering, 0 100 200 300 Miles A new commodity supercycle? 92. The Use of Data Analytics 93. Interview with Enaex Construction and

N 95. Interview with SGS Chile 96. Interview with ABB Chile and Siemens Equipment Beyond Copper: 97. Interview with Geocom Gold and Lithium Potential 98. Interview with Mathiesen The journey to green mining, desalination plants, water 42. Gold 99. Concluding Thoughts reuse, smart mining and the 45. Interview with Gold Fields 101. Company Directory use of data analytics 46. Interview with Barrick 103. Credits 47. Interview with Yamana Gold 52-98 48. Lithium 50. Interview with SQM Punta Arenas 51. Interviews with Wealth Minerals and with Lithium Chile INTRODUCTION TO CHILE

“The challenges in the Chilean mining industry are entering a new stage as the industry matures. Today the industry is focused on sustaining operations in a complicated environment, characterised by political and economic uncertainty.”

- Juan Carlos Guajardo, Founder and Executive Director, Plusmining

GBR • Industry Explorations • CHILE MINING 2021

Image courtesy of Freeport-McMoRan EDITORIAL Global Business Reports Industry Explorations INTERVIEW Chile faces hurdles to Juan Carlos

maintain leadership Jobet Chile continues to be the fourth country in the world position in terms of exploration investment, with over US$450 BI-Minister of Energy and Mining million in 2020 alone. OVERVIEW OF MINING IN CHILE GOVERNMENT OF CHILE

The world witnessed unprecedented events in 2020, and GDP and Inflation Chile, the world's copper powerhouse, was no exception. Source: IMF Traditionally considered a model for political and financial Real GDP Growth (annual percentage change - April 2021): 6.2 stability in Latin America, the last two years have challenged What is the vision of the Piñera administration for the The Pascua Lama case has put the spotlight on glacier Inflation rate avg. consumer prices (annual percentage change - April 2021): 3.1 this reputation. Nevertheless, the country's solid macroeco- mining industry? protection. How can the industry coexist with glaciers? Annual % change nomic framework has allowed it to withstand the pressures, 40 Mining is our biggest industry: It represents over 10% of our Glaciers are a key freshwater reserve that regulate water flows cushioning the effects of the volatile internal disturbances GDP, more than 50% of our exports, 25% of total investment in the different basins. Their importance is only going to in- of 2019 and the pandemic of 2020. received, and a big chunk of fiscal revenues for the country. crease with climate change, so they need to be protected. 30 In October 2019, the country experienced social unrest re- 2020 presented many challenges, the pandemic being the This said, the mining industry can perfectly develop while flecting widespread frustration with persistent inequality. largest one, and the mining sector showed great resilience protecting glaciers. The overlap of mining activities with gla- Yet mining investment in the same year recorded its high- 20 and capacity to take care of the health and safety of workers, cier areas is extremely low. There is a legislative bill advanc- est level since 2015, standing at US$10.1 billion, while total with contagion rates much lower than the average popula- ing in Congress, and we believe we are reaching a good point tion. That was complemented with business continuity, as we of equilibrium between glacier protection and mining indus- production in 2019 amounted to 5.79 million tonnes (mt) of 10 copper and 112,600 mt of lithium, according to the Chil- closed 2020 with a copper output in line with 2019 figures. try development. ean Copper Commission (Cochilco). In 2020, the country For comparison, copper production in Peru fell by 30% in 0 was exposed to volatile copper prices and export demand, 2020, so the industry’s performance in Chile was remarkable Chile is considered to be a ‘mature’ country in terms as well as prolonged Covid-19 containment measures. On last year. of exploration. How can the industry continue growing 25th October 2020, Chileans held a plebiscite, resulting in a -10 based on new discoveries? landslide majority voting to draft a new Constitution, poten- Copper has been trading at very high levels in 2021. How For the last years our production has been stable, but we can the industry take advantage of this opportunity? have not been able to significantly grow our copper output. tially adding uncertainty to the future evolution of the regu- -20 The main opportunity ahead is that projected demand for Chile continues to be the fourth country in the world in terms latory framework. Yet, these factors did not prevent copper 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 output from maintaining stable levels, with 2020 production copper is very big, as global economies progressively mi- of exploration investment, with over US$450 million in 2020 reaching 5.73 million mt according to Cochilco. grate from fossil fuels to renewable energies and the usage alone. However, nearly 85% of that money was spent by ma- "The pandemic has affected practically every aspect of life of electric vehicles continues to increase. In this context, the jors. As part of our mining policy, we are trying to promote in Chile. Curfews, temporary border closures and reduced industry is at the core of global efforts to put a stop to global exploration by junior companies, and that involves several warming. aspects, including permitting, access to information, access business hours were implemented to lower infection rates," 2020 has been a year of great uncertainty elaborated Christoff Janse, investment promotion officer at To take on this opportunity, the industry in Chile needs to to funding, and the right framework to incentivize concession InvestChile. "The mining industry, however, has been resil- and, despite variations in companies’ solve several challenges: first, our deposits are quite mature, holders to really advance their exploration work. If majors ient. The sector's safety protocols were quickly adapted to production projections, Chile’s mining sector so mineral grades have been falling, hauling distances have are not using their concessions, they should probably bring minimize contagion risks. Some investments were delayed has demonstrated remarkable resilience and been increasing, and the rock has become harder. In many in partners. However, the mining industry presents a lot of cases, companies have had to invest significant amounts just risk so it is important to maintain the rules without abrupt due to logistical challenges resulting from the lockdowns, has overcome these challenges successfully, most of which are resuming in 2021. " to maintain the same levels of production. So, the first chal- changes. The copper price was expected to enjoy an upward tra- thanks to the industry’s commitment to safety lenge is competitiveness and the introduction of new tech- jectory in 2020, but the reality was a rollercoaster of price and strict protocols. nologies. Do you think the process to rewrite the country’s Consti- changes. As the Covid-19 outbreak went from a public health The second challenge is sustainability: the industry is already tution will damage investment attractiveness? emergency in China to a global pandemic, the copper price switching from coal power generation to contracts with re- Investors understand that a country that has grown very plunged to a three-year low in March 2020, before peaking newable energy providers, and we expect that more than rapidly over the last 30 years needs to update its regulatory to an eight-year high in Q1 of 2021. On the other hand, gold - Marco Riveros, 60% of the energy used in mining will come from renewables framework to adapt to new circumstances. Interestingly, it witnessed a bullish run as cases rose, reaching an all-time Vice President, by 2023. Related to this, another issue is water: today, 30% is local investors who appear to be more worried. While the of the water used in the industry is seawater, and that figure process may bring a certain degree of uncertainty, last year high in August 2020. Meanwhile, lithium, of which one-third Cochilco of the supply is in Chile, faced downward pressure as a re- should reach 50% by the end of the decade. We also need alone there were environmental impact assessment approv- sult of disruptions and uncertainty as electric vehicle (EV) to improve relationships with the local communities, and op- als for projects worth US$20 billion. The total project portfo- sales decreased. "The pandemic ignited and exacerbated timize our environmental management in terms of tailings, lio amounts to US$70 billion this decade, and the high price of glaciers and other aspects. copper will incentivize the development of further projects. ■

8 CHILE MINING 2021 Industry Explorations Global Business Reports CHILE MINING 2021 9 EDITORIAL Global Business Reports Industry Explorations INTERVIEW

the upward cycle of commodity prices by triggering one of the most extensive expansionary monetary and fiscal plans Marco in history," highlighted Juan Carlos Guajardo, founder and On the bright side, the pandemic could executive director of Plusmining. positively impact the mining industry's future Riveros The pandemic and its consequences aside, Chile’s mining industry stands at a pivotal crossroads. The industry facili- efficiency. Mining companies realized that tated the nation’s rise and prosperity, but is witnessing low- there is space to increase productivity as er productivity, dormant greenfield exploration, plus great- they were able to maintain output with less er social pressure and environmental awareness, all of which Vice President are limiting its international competitiveness. The copper personnel on-site. giant is aware of these challenges and is forging a new tra- CHILEAN COPPER COMMISSION (COCHILCO) jectory in exploration and production led primarily by inno- vation and constant collaboration between the stakehold- - Alejandra Fernández, ers in the industry to facilitate its long-term growth. Mining Director, Fitch Ratings Why do you think Chile has been so pandemic and the uncertainty gener- can also be done in collaboration with Fighting the outbreak resilient to the challenges posed by ated by it, we maintain this estimation private companies. Taking into account Covid-19? since the factors that allow us to calcu- that lithium is often found in water solu- The Chilean government has fought to strike a balance be- 2020 has been a year of great uncertain- late investment have not been altered. tions under the surface, it is likely that its tween containing the virus and shielding the economy. Un- ty, and despite variations in companies’ This is also due to the fact that mining legislation will have to adapt to prevent like in Peru, mining was declared essential to prevent clo- members. The pandemic strained relationships between production projections, Chile’s mining projects have long-term horizons. its extraction from altering the aquifer sures to mine sites, since the industry contributes 15% to mining companies and workers' unions, as companies were sector has demonstrated remarkable basins significantly. the nation's GDP and represents half of its export income. accused of not taking adequate measures to reduce the risk resilience and has been able to over- Can you elaborate on the current However, as the outbreak expanded in Chile, some major of infection, whilst taking advantage of the crisis to reduce come these challenges successfully. The state of mining exploration? What is your view regarding the de- operating mines did close in Q2 of 2020, namely Codelco's jobs. According to mining association Sonami (Sociedad industry’s commitment to safety and Exploration is a very significant aspect bate on whether we are witnessing a Chuquicamata, after worrying levels of infection among staff Nacional de Minería), by July 2020, 35,000 jobs had been the implementation of strict protocols, of Chile’s mining industry, but one of new commodity “supercycle”? lost as a result of pandemic-related lay-offs. However, de- together with the hard work of everyone the consequences of the pandemic has The price of copper responds to the spite reductions in personnel, production did not suffer to involved in the sector, kept operations been a decrease in investment in this laws of supply and demand. A supercy- a large extent. From January to May, copper production hit going and maintained productivity. activity. The country is currently ex- cle involves a long boom in demand that 2.37 million mt, an increase of 3.5% from 2.29 million mt in During the pandemic, Cochilco played periencing the challenge of declining drives up prices until they get so high the same period of 2019. Only Anglo American reported a a fundamental role in Chile, acting as grades of mature mines, so increasing that demand collapses, pulling prices steep fall in output due to water shortages at Los Bronces. a government adviser in everything exploration is the perfect remedy for back down. Currently, we are not seeing Critical to the miners' pandemic response was minimizing related to copper and its by-products. this. a difference between the supply and physical presence at mine sites. Chile, as a hub for mining This organization is directed by a coun- demand of copper big enough to con- innovation, was well equipped to take this on and maintain cil consisting of government ministers of What is the potential for the gold mi- stitute a supercycle. It is important to production levels with half of the staff on-site. According mining and finance, relevant individuals ning industry in Chile? be cautious; during 2020, and especially to Philippe Hemmerdinger, president of the Asociación de from the central bank, and people ap- Chile’s prominent role as a copper pro- in the last months, we have seen other Proveedores Industriales de la Minería (Aprimin), the mi- pointed by the President of the Repub- ducer often causes other metals to be factors besides supply and demand that ning suppliers' association: "Chile's experience with the so- lic from the private sector. Our activities overlooked. While gold production is have affected the increase in copper cial unrest in October of 2019 gave it a trial run at remote are carried according to the council’s typically associated with countries such prices, such as the increase in money work, so companies were to some extent prepared for the decisions, which is how we manage to as Mexico and Peru, Chile also has sig- supply in economies like the US. Covid-19 outbreak. Operations were smooth as measures operate with great objectivity and have nificant gold reserves. In fact, US$3 bi- ensuring employees were trained and equipped for working been a highly valued institution. Cochil- llion in investments have been recently Do you have a final message for our at home were fortunately already in place.” co safeguards the public interest of the announced in gold and silver projects international readers? This smooth transition and implementation of remote con- state-owned mining companies Codel- for 2020-2029. Currently, there are also Chile’s mining industry will manage to trol and autonomous mining techniques during 2020 al- co and Enami by auditing corporate substantial development prospects for overcome the economic challenges af- lowed production volumes to be maintained. "The Chilean processes and operations and compli- the lithium industry. ter the pandemic and will continue to be mining industry was already leading the way to develop ance with the applicable laws. The Com- a world leader, making great efforts to more autonomous mining before the pandemic," highlight- mission also evaluates the associated Will lithium regulation be addressed direct its activities towards sustainability ed Dale Clayton, managing director of Liebherr in Chile. risks and their impact on operations. in the following years? and environmental protection. We want While the health crisis did not impact production to a large Lithium is becoming highly relevant in to transmit our confidence to mining in- extent, it resulted in the delay of mining projects worth bil- What are Cochilco’s investment pre- sectors such as electromobility and the vestors in Chile that mining rules will be lions, since 23 projects were postponed, according to Cris- dictions for Chile’s mining industry condensation of clean energies. Ac- respected and will keep progressing de- tián Cifuentes, strategies and policies coordinator at Cochil- for this decade? cording to Chile’s legislation, lithium is a spite the constitutional reform, always in co. Codelco, which is in the midst of an ambitious 10-year, Before the pandemic, Cochilco pro- non-concessionary element. This means compliance with international treaties. multi-billion dollar investment drive to open new projects jected an investment of US$74 million that its exploitation can be undertaken The formula against uncertainty in the and overhaul older mines, reduced its investment portfolio in Chile’s mining industry for the 2020- in public properties, which can be rent- mining industry involves confidence and by US$650 million. However, it bounced back rapidly, re- 2029 period. Despite the effects of the ed through special agreements, or it hard work. ■

10 CHILE MINING 2021 Industry Explorations Global Business Reports CHILE MINING 2021 11 INTERVIEW Global Business Reports Industry Explorations EDITORIAL

Growth in Chile: Independent of Copper Prices? Philippe Source: John Hopkins school of international studies’ elaboration of data from the World Bank and Market Insider

Copper Price GDP USD/mt GDP Growth (%) Hemmerdinger $8,000 5.0% 4.0% $7,000 3.0% $6,000 2.0% Avg. price as $5,000 President of August 1st 1.0% ASSOCIATION OF INDUSTRIAL MINING SUPPLIERS (APRIMIN) $4,000 0 -1.0% $3,000 -2.0% $2,000 -3.0% $1,000 -4.0% How did Aprimin’s members maintain supply chain conti- as well as health and safety protocols. Aprimin was created to $0 -5.0% negotiate with mining companies on behalf of the industry’s IMF Forecast nuity in 2020? 2013 2014 2015 2016 2017 2018 2019 2020 Chile’s experience with the social unrest in October of 2019 suppliers and protect their interests. Today we cooperate gave it a trial run at remote work, so companies were to some with multiple associations to ensure our members’ best inter- starting operations at full capacity and resumed the expan- and Spence operations. Likewise, Iván Arriagada, CEO of extent prepared for the Covid-19 outbreak and operations est and promote innovation and sustainability. sion project at El Teniente by Q4 of 2020, to be completed Antofagasta PLC, explained: "Antofagasta has set a goal to were smooth as measures ensuring employees were trained by 2023. Meanwhile, Vancouver-based Teck Resources de- reduce its forecast greenhouse gas emissions by 300,000 and equipped for working at home were already in place. What are some of the barriers to innovation in the sector layed the expansion of its Quebrada Blanca Phase 2 by six mt by 2022, supported by a series of initiatives including Operational continuity was a priority for mining companies today? months in July of 2020. "The mining industry scaled back on the transition of all our mining operations' energy supply to and service providers abd they adapted to following strict Covid-19 reduced the barriers to innovation in Chile, but one investments, reducing maintenance, and sustaining capex renewables by 2022". Covid-19 safety protocols. Another priority was ensuring a barrier in Chile is that mining companies refuse to incorpo- following the obligation of limiting personnel on mine sites According to data from Cochilco, renewable energy use in clear communicative channel between all the stakeholders rate unproven products and services into their operations as and cushioning the impact of the outbreak on cash flows. the copper industry is expected to grow to 49% of power to ensure no delays and quick decision-making. Digital prac- it risks their volume or continued operation. There are not Most companies also reduced dividends," highlighted Ale- used by 2023. "I am confident that, in the upcoming years, tices played a significant role in the industry’s survival during many places to pilot technology on an industrial scale. Ap- jandra Fernández, mining director of Fitch Ratings in Chile. the industry will undergo revolutionary changes that ag- the pandemic. proximately one-third of Chilean mining suppliers do not allo- Other crucial projects that were delayed include seven gressively promote the use of clean energy sources and the cate resources to innovation. Canada and Australia are ahead desalination projects, one of which was planned for BHP's reduction of carbon footprints. I foresee an industry that is What are Aprimin’s initiatives for 2021 under your lead- of Chile in mining technology development and implementa- Spence copper mine in Antofagasta, the others were to be carbon-negative in the future, and one that produces net ership? tion. On the other hand, financing is not a significant barrier developed by Antofagasta Plc, Mantos Copper, Codelco, zero emissions over the next decade," commented Eduardo We defined five axes of productivity for 2021: operational to innovation in the sector and some government agencies Capstone Mining, Teck Resources and Freeport McMoran. Valente, lead consulting partner at Ernst & Young in Chile. continuity of the mining sector amid Covid; continue sup- also provide support to innovators in partnership with mining According to Cochilco, desalination and seawater use will "The ability to sell minerals in the future will likely depend porting our members to work remotely efficiently and ef- companies. Suppliers also have the option to partner with a likely increase by 230% by 2030, as miners battle water on the extent of greenhouse gases used in the process, fectively; an emphasis on automation in processes, to allow mining company. shortages. Anglo American, for example, developed a wa- which will only push mining companies more towards ensur- remote control and the importance of incorporating techno- ter reuse system at Los Bronces allowing recycling of more ing sustainability, increasing the popularity of green cop- logy such as artificial intelligence (AI); smart contracts and How will changes to the constitution impact the Chilean than 70% of available water. Meanwhile, lithium giant SQM per," he concluded. improving time on tool; and the social license to operate, as mining industry? is reducing freshwater consumption across all operations by Meanwhile, sustainability in the equipment space is driv- we are promoting the use of green energy sources such as We expect that changes will not significantly impact the mi- 40% by 2030. ing innovation, as providers are replacing diesel engines green hydrogen, solar power, wind, desalinated and seawa- ning industry, which is a pillar of the Chilean economy. Chile by battery-driven electric machinery for underground and ter. Another initiative we are leading is ensuring the industry has parties across the political spectrum, however, they tend open-pit operations. is diverse and inclusive since women make up only 12-13% of to meet in the center. This decade we expect investment in Sustainability trends The road to recovery from the outbreak of the virus has be- the workforce for the mining suppliers in Chile. the mining industry to amount to US$70 billion, mostly in up- gun in Chile, as the Chilean government moved decisively The increase in the copper price and its promising future is grading existing operations. The mining industry is aggressively asserting and promot- and rapidly to secure enough doses to vaccinate its popula- exciting for the industry, which is expected to contribute an ing sustainability across the entire value chain. Mining op- tion twice. By February 2021, Chile was able to vaccinate additional over budget of US$1.5 – 2.5 billion in taxes and mi- Do you have a final message to our international reader- erators across Latin America are altering their community 16% of the population within just 21 days, which testifies ning royalties this year. This would help reduce the national ship? engagement strategies from mere transactional handouts to its organisation and resolve to move past the outbreak. debt or generate savings and new resources in case of need. The growth and transformation momentum in the Chilean to proactive engagement and long-term strategies that are After two consecutive years of uncertainty, 2021 presents mining industry must be maintained and fostered. As ore inclusive of the local, national and broader communities. In an exciting year for mining in Chile amid bullish commodity Can you elaborate on the membership requirements for grades are declining, mines must invest in innovations to en- the case of Chile, conflict with local communities is mostly prices and a recovery from the Covid-19 outbreak. Chile is Aprimin and the benefits it provides? sure higher copper ore grades are extracted and productivity a result of environmental issues. To obtain a social license forecast to produce 5.99 million mt of copper in 2021 ac- Aprimin currently has 109 members who hold a majority mar- is achieved to remain competitive. The industry will continue to operate, companies must invest in the use of renewable cording to Cochilco, and is welcoming major expansion ket share in Chile’s mining supplier market. Local service pro- relying on automation, but it must incorporate other initia- energy sources, reduce freshwater use and eliminate toxic projects such as BHP's Spence, Codelco's El Teniente, Teck viders make up 57 of our members, and the remaining 52 are tives to ensure diversity and inclusion. Finally, we are sure the waste. Resources' Quebrada Blanca Phase 2 and the construction multinational corporations. To qualify for our association, the market will bring good news to the copper industry and its Investment in renewable energy sources is set to swell. BHP, of Gold Fields' Salares Norte, as well as a more active junior mining service provider must have annual revenue of at least suppliers, because the copper demand will be higher than for example, is switching to green power for its Chilean segment, mid-tier operators and a revived exploration sec- US$4 million and agree with Aprimin’s vision for the industry the offer for a long period of time. ■ operations, thus reducing costs by 20% at the Escondida tor. ■

12 CHILE MINING 2021 Industry Explorations Global Business Reports CHILE MINING 2021 13 EDITORIAL Global Business Reports Industry Explorations EDITORIAL

Image courtesy of Image courtesy of Freeport-McMoRan Political and Image courtesy of Wesdome Gold Mines Economic Overview

The new constitution will strengthen the industry. Chile's path is in many ways similar to that of 2021 IS ANOTHER PIVOTAL YEAR Mining Industry’s Contribution to GDP (%) other developed countries. FOR CHILEAN MINING WITH A NEW Source: GBR’s elaboration of data from Cochilco I believe the outcome depends on how we respond CONSTITUTION AND GENERAL Gross Domestic Product Mining Contribution to GDP (%) ELECTIONS TO NAVIGATE to the challenge and I am CLP$ Tn Contribution to GDP (%) very optimistic as this is the 200 14 way forward for Chile.

13 160 - Tomás Fischer Ballerini, As the first Latin American country to 12 General Manager, fate of the nation –Chile is to elect a large magnitude will be carried out in become a member of the Organisation new government this year whilst under- the next two years until there is clarity 120 Edyce for Economic Co-operation and Devel- 11 going a process of constitutional re- around the new constitution." opment (OECD), Chile is the commer- form– and on the possible resurgence Analysts foresee investment lagging 10 cial and economic success story of the 80 of new virus strains. until the new constitution is approved continent. Since free market reforms by late 2022. The process may also de- began in 1975, Chile has consistently 9 fer capex, already constrained due to

outperformed its neighbours in multi- 40 Drafting a new future Covid-19 restrictions, until investors ple indices of economic development, 8 see more clarity. According to Juan freedom and democracy. From 1980 to Central Bank, as Covid-19 ravaged the In the near term, Chile's political cli- Carlos Guajardo, founder and execu- 2019, GDP per capita quintupled, en- 0 7 economy in the midst of tensions over mate will be defined by the forging of tive director of Plusmining, a mining in- abling the country to dramatically re- socioeconomic inequality. a new constitution. "The government's telligence provider in Chile: “The new 2013 2014 2015 2016 2017 2018 2019 2020 duce the share of the population living According to the IMF, throughout 2020, swift response to allow a referendum constitution will mainly tackle the role in poverty from 30% in 2000 to 3.7% Chile underwent a deep recession that to rewrite the constitution, and the of the state in the economy and is likely in 2017, according to the World Bank, Democracy Index, Chile saw national income decrease between subsequent results of the referendum, to reshape it to a welfare state.”

and to create a large middle class. The Source: EIU 4.5% and 5.5%. To attempt to mitigate are a testament to Chile's maturity and "There is no indication that basic opening up of the economy encour- the impact of the outbreak, the govern- stability," highlighted Timothy Beale, property rights will be altered," high- aged foreign direct investment (FDI) 167 countries scored from 0 to 10 based on 60 indicators ment injected stimulus into the health- director of CSE-listed Pampa Metals, a lighted Christoff Janse, investment into the country since the 1990s, facili- care system, used tax measures to pro- junior mining company with interests in promotion officer at InvestChile, a gov- tating the growth of capital-intensive vide support to SMEs, and the central Chile. "The country appears to be on a ernment agency. "The country's fiscal FULL DEMOCRACIES activities such as mining, which today bank decreased fiscal policy interest peaceful and positive democratic path strength and its low level of debt as a 8 accounts for 10.1% of GDP, according rates to 0.5% while relaxing regulatory that has not affected the ability of the percentage of GDP provide a financial to Chile’s Central Bank and Cochilco. credit requirements. country in general, and businesses in buffer with which the government can Chile's dependence on copper has al- FLAWED DEMOCRACIES Fortunately, sovereign debt risk re- particular, to continue and progress," address social demands without risk- lowed for significant development, but mains minimal due to sound regula- he added. ing its credit rating in the short and 6 leaves the country exposed to price tions, while the banking sector has Nonetheless, as Chilean citizens voted medium-term or affecting the long- fluctuations and demand from China. proven its resilience. Fiscal and mon- overwhelmingly to rewrite the constitu- entrenched favorable base conditions HYBRID REGIMES Furthermore, productivity is slowing etary policy measures and the gradual tion, they set the stage for a dramatic for investing." down as a result of decreasing ore 4 opening of the economy should under- reassessment of the country's rela- Presidential and legislative elections grades. Throughout 2020, however, the pin growth in 2021 as vaccination rates tionship with the environment, public scheduled for November of 2021 add to copper industry remained a bright spot AUTHORITARIAN REGIMES increase. Real GDP growth for 2021 and healthcare and national security. Di- the uncertainty. If the left-wing Frente in Chile's otherwise exhausted econo- 2022 is expected at 5.3% and 3.2%, re- ego Hernández, president of Sonami Amplio wins the election, it could sig- my, which contracted by 14% in April spectively, according to the IMF. This, (Chile's National Mining Society), told nificantly increase the role of the state 2020 year-on-year, according to Chile's 2006 2008 2010 2012 2014 2016 2018 2019 however, is conditional on the political Reuters: "Hardly any project of a very and may promote the nationalization

14 CHILE MINING 2021 Industry Explorations Global Business Reports CHILE MINING 2021 15 EDITORIAL Global Business Reports Industry Explorations INTERVIEW

How will the upcoming constitutional changes impact the Chilean mining industry? pact this would have on investment into lithium, currently labelled a strategic Juan Carlos The process is pivotal to the future of the nation and its stability. The process is compli- an industry that is vital to Chile. How- metal since 1979. The subject overlaps cated because it carries very high expectations that it must meet. Mining is a complex ac- ever, the questions concern how the with water rights since lithium is found tivity, with multiple stakeholders and a particular nature regarding capex, risk, taxation and new constitution will pronounce itself in brine pools and requires extensive Guajardo impact. Therefore, it must be approached sensitively when addressed under the new con- Legal definitions will be regarding issues such as environmen- amounts of water to extract. Advocates stitution. The election in April of 2021 will give us a more concrete idea of what to expect. tal regulation, strategic metals, indig- are promoting the classification of brine The new constitution will mainly tackle the role of the State in the economy and is likely essential; the definition of enous and collective bargaining rights, as water so as to grant local communi- to reshape it into a welfare state. Environmental regulation and indigenous issues will also concepts such as glaciers and worker benefits. ties more authority over the resources, be addressed. Changing the constitution is symbolic but with profound economic and are imperative to determine Under environmental regulation, the since indigenous people own water. political consequences. There is a risk that social unrest erupts again if the population's if projects will be allowed to new constitution is likely to address Another likely topic to be considered is Founder and Executive Director expectations are not met. changes to the water code and glacier mining royalties and how to guarantee develop or if they will face PLUSMINING protection. The debated glacier pro- financial benefits for the populations in As the industry recovers, what are some of the most significant investments being restrictions. tection law has been stuck in Congress mining regions. “It is difficult to con- made in 2021? since October 2019, and calls for a bet- clude whether the impact of rewrit- The installed capacity of mining in Chile is one of the largest in the world. An immense ter definitions of glaciers. If approved, ing the constitution will be positive or production capacity is coupled with tremendous challenges. The investments being made it will prohibit mining in glacial areas, negative. The process is complicated in 2021 are to maintain this capacity by expanding mines, some of which are heading - Fernanda Santoro, hindering the construction of large mi- because it carries very high expecta- underground. Most of the investment is targeted towards brownfield projects. Meanwhile, Environmental Engineer, ning projects by Codelco's El Teniente tions that it must meet,” commented the greenfield projects under development are Quebrada Blanca and Salares Norte. The Montt Group and Andina. The lack of a clear defini- Guajardo of Plusmining. “Mining is a industry should be concerned about the lack of greenfield projects being undertaken. tion of glaciers already resulted in the complex activity with multiple stake- controversy of Pascua Lama, an open- holders and of a particular nature when Where do you see future growth potential for Plusmining? pit gold, silver and copper project ad- it comes to capex, risk, taxation and im- The challenges in the Chilean mining industry are entering a new stage as the industry vanced by Barrick on the Chilean-Ar- pact. It must, therefore, be approached matures. Today the industry is focused on sustaining operations in a complicated environ- gentine border that was forced to halt sensitively when addressed under the ment, characterised by political and economic uncertainty. Plusmining's role is to support activities in 2013 following a Chilean new constitution.” clients through this uncertainty by providing guidance and consulting. Increasing use of court order. Radical changes to the constitution that copper is opening more opportunities around the world, so we will also focus on growing of natural resources. The risk for radi- Water rights are also likely to be consid- will result in negative consequences on our business development service. ■ cal changes decreases and interests of ered. “The government is drafting poli- mining investments are unlikely. “The the private sector are protected if Chile cies regarding water to consider giving country is no stranger to democracy Vamos, the ruling coalition, wins. water rights a temporary character and and its processes, therefore I am con- restricting some uses, which will af- fident it will be a smooth transition of What was Chile's experience with the pandemic, and how has it impacted the econ- fect mining operators if implemented,” power,” elaborated Eduardo Valente, omy? Glaciers, water and taxes highlighted Iván Rayo, general manag- lead consulting partner at EY Chile. Christoff Preliminary forecasts show a GDP contraction in 2020 of 6 to 8%. The mining industry, er of JRI Ingeniería, a local multidisci- “Mining companies should participate however, has been resilient. The sector´s safety protocols were quickly adapted to mini- The new constitution is unlikely to in- plinary engineering consultancy. in discussions with the government to Janse mize contagion risks. Production was generally stable or only marginally lower. Some in- troduce radical changes regarding mi- In addition to water rights and glaciers, ensure their interests are taken into ac- vestments were delayed due to logistical challenges resulting from the lockdowns, most ning due to the immense negative im- the constitutional process will tackle count in the new constitution.” ■ of which are resuming in 2021.

How did the permitting process in Chile become more streamlined? One initiative already implemented is the creation of an agency known as the Sustainable Investment Promotion Officer Project Management office (GPS), specifically to support and streamline the environmen- INVESTCHILE tal permitting process of large projects. The ministry is also developing the National Mi- ning Policy for 2050 in collaboration with the private sector, to be completed in June, to guide the mining industry's development in the short, medium and long term as an engine for sustainable growth. Various administrative and legal initiatives that favor investment are being considered.

How are foreign investors in Chile protected from changes in the constitution? Chile has been in the fortunate position of still attracting healthy foreign direct investment (FDI) since the social upheaval of 2019 and the onset of the pandemic. While FDI flow globally has declined 42% according to UNCTAD, the indicators for Chile show a more moderate decline of 21%. This highlights the confidence that foreign investors still have when it comes to long-term investing in the country. Regarding possible constitutional changes, there is no indication that basic property rights will be altered. Most companies also recognize that the country's fiscal strength and its low level of debt provide a financial buffer with which the government can address social demands without risking its credit rating in the short and medium-term or affecting the long-entrenched favorable base conditions for investing. ■

16 CHILE MINING 2021 Industry Explorations Global Business Reports CHILE MINING 2021 17 INTERVIEW Global Business Reports Industry Explorations EXPERT OPINION

What are some of EY’s most recent usage. EY is working with clients to not Eduardo developments since we last spoke? only ensure compliance with local regula- Chile’s constitutional process EY acquired a company in Chile special- tions but to design tailored strategies for Valente ised in digital data and artificial intelli- sustainable operations. The key driver of and royalty reform discussion: gence, allowing us to better analyse and LTOs is the more environmental aspect. use the data from our mining clients to I foresee an industry that is carbon-neg- increase productivity and lower costs. ative and one that produces net zero Business as usual or a We have been working closely with ma- emissions over the next decade. The jor mining companies in Chile, helping ability to sell minerals in the future will Leading Partner of Consulting them with their digital transformation likely depend on the extent of green- transformative landscape? programs, which has become a priority house gases used in the process, which EY CHILE in the industry as a whole as it increases will only push mining companies more efficiency but also enhances safety by towards ensuring sustainability. Expert Opinion Article by reducing operational risks. We see in- creasing use of digital data analytics, Is the current political sphere impact- FRANCISCO ACUÑA, integrated remote operation centres and ing investment in the sector? MINING CONSULTANT AND ENTREPRENEUR SENIOR CONSULTANT, autonomous mining machinery such as As a result of COVID-19, countries’ sov- CRU trucks. ereign debt increased, putting pressure on governments to raise revenue which What other industry trends have you could drive tax and royalty increases. come across? This poses a risk in Chile, as the mining On April 11th this year, Chileans will vote members. Furthermore, mining has prices in the mid- and long-term have Another issue we witness is regarding sector could be responsible to pay for for the first time in history for a Consti- been a cornerstone of Chile’s economy, exponentially accelerated the political the risk associated with the license to the pandemic debt and stimulus. tutional Convention, composed of 155 and the benefit of a booming mining agenda to implement a new royalty re- operate (LTO). An LTO incorporates the 2021 is an eventful year for Chile, as it elected members that will have the re- sector has percolated through the dif- gime. In late March 2020, a 3% ad va- management of relationships with gov- rewrites the constitution following the sponsibility to propose a new constitu- ferent layers of the economy and has lorem royalty legislative proposal was ernments, communities, associations referendum last year, and holds elections tion for the country. This is the result of not been characterized by major social approved in the lower house and will and suppliers, to integrate production in November. The country is no stranger months of social distress that started conflicts. move forward the legislative process. and reduce carbon emissions, as well as to democracy, therefore I am confident in October 2019 and culminated with The Convention will not be an isolated The short-term impact for a new royalty optimise water consumption and energy it will be a smooth transition of power. ■ a plebiscite one year later. The over- event, and alongside its development or tax will mean that mining operations whelming result of which was a decision there will be other significant politi- could lose their competitiveness in to write a new constitution. cal milestones including the upcom- terms of economic viability. Valuations Santiago Montt, The Latin America region has been ing presidential election at the end of for mid-sized projects could be signifi- Can you introduce Montt Group and Desalination plants can be an excellent characterized by constitutional changes this year. The mining sector does not cantly reduced resulting in suspension Fernanda Santoro its role in the Chilean mining industry? solution to the water scarcity that affects that often have come in the form of au- appear to be a central topic for consti- or nullification of the investment deci- SM: Montt Group is a 46 year´s old firm, the northern and central parts of Chile. thoritarian governments and have ce- tutional changes, however, one could sion. & Bernando originally a law firm, but since the last An excellent initiative to save resources mented the basis for political instability, predict that it could built momentum It is fair to assume that we might see 15 years we have transitioned to a con- would be to have an engineering com- lack of rule of law and an overall det- in the policy and legislative discussions changes in the upcoming year. Endog- Aguilera sulting group, including professionals pany in charge of the desalination plant rimental scenario for investment, which that will naturally occur in parallel. A enous factors, such as the results of the such as lawyers, engineers, economists and the construction of the pipeline has a particular impact for capex-inten- very likely outcome is that Chile’s fis- constitutional convention and presi- SM: CEO and environmental specialists. We have and to share this infrastructure among a sive and long-term industries such as cal expenditures will see a relevant in- dential elections, are the key drivers FS: Environmental Engineer progressively expanded to almost every cluster of several mining companies, co- mining. Chile’s constitutional process, crease in the upcoming years as social that could shift the outcome one way or BA: Senior Mining Lawyer Latin American country. Our most impor- mmunities and other sectors. howeber, has moved forward within the programs including healthcare, educa- the other. Exogenous factors have also MONTT GROUP tant offices are in Chile, Peru and Colom- FS: Desalination projects are a very via- legal framework set out in the current tion and pensions are central themes to been shown to have a relevant impact bia. We are currently constituting mining ble solution for both mining and agricul- constitution and therefore maintaining the constitutional process. It is reason- (namely the copper price volatility). divisions in Colombia and Ecuador. The ture projects. However, these are large the tradition of transparent electoral able to expect new programs will be Finally, the response that the mining group has extensive experience in mi- and expensive projects that require co- processes, well-functioning institutions put in place or major reforms will come sector takes to either oppose or col- ning litigation. ordination between different stakehold- and rule of law that have characterized in effect that will require additional fis- laborate in this process, and how that is ers. the country over the last three decades. cal collection. As the most relevant in- conveyed to the different stakeholders, How is the environmental law in Chile BA: Several of the leading mining com- While on the Chilean political spectrum dustrial sector in the country, it is fair will likely have an impact too. SM pushing towards the construction of panies in Chile are moving towards the there are those that support radical to expect that mining will likely be in This can be a turning point for the in- desalination plants? desalination of ocean water, and this is views that favor the idea that natural the center of the discussion and will dustry in Chile, but it could also be SM: The adoption of environmental encouraging the rest of the industry to resources should only be extracted by feel pressure for changing the current the consolidation as a tier one mining resolutions is very slow in Chile, primarily go in the same direction. However, there state-owned companies and that this mining tax regime or implement a new jurisdiction that demonstrate how insti- FS due to the long process of reclamations needs to be some sort of push from the constitutional process could be an op- royalty scheme. tutionality and rule of law can lead to once a decision is made. Today, carrying government to promote these solutions, portunity to nationalize the resources, An unexpected catalyst has been the structural social changes while main- out an environmental study takes at least such as fostering joint initiatives to share this is a very unlikely outcome as the spectacular copper price rally that has taining the incentives of the mining sec- two years, and a declaration of environ- desalination plant infrastructures. ■ new constitution will require the ap- peaked at 10-year highs. The positive tor for sustaining Chile’s development BA mental impact at least a year. proval of two thirds of the Convention’s perspectives for copper demand and and growth. ■

18 CHILE MINING 2021 Industry Explorations Global Business Reports CHILE MINING 2021 19 FACTSHEET Global Business Reports Industry Explorations THOUGHTS

Timeline of Constitutional Insights from the ground: Tu rning Points in Chile Will the redrafting of the constitution Source: The Cato Institute, BBC, the Economist, NY times, Reuters, GBR impact mining investment in Chile? 1971 1973

President Salvador Allende Coup led by military “For the mining industry, I don’t expect Chile to move away from the robust and receives congressional junta results in approval for a constitutional change of predictable set of rules we have and which have allowed mining investment to prosper reform giving the state government, and deliver growth in the sector over the last 40 years.” “absolute, exclusive, inalienable, imposing military and imprescriptible” ownership rule led by General of all mines Augusto Pinochet - Iván Arriagada, CEO, Antofagasta Plc

“Any transformation will be smooth and non-disruptive to the mining sector. There is a 1987 1980 great centuries-old mining culture in Chile. Change is a feature of Latin American politics, fortunately, in the case of Chile, change has been often progressive in nature.” Chilean political opposition challenge the The Pinochet constitution is confirmed constitutional system created by the by plebiscite; 67% of votes in its favour. military government by initiating a Access granted to private investors in - Alastair McIntyre, CEO, Altiplano Metals campaign to vote against the extension the mining industry under the Law on of Pinochet’s rule for another eight years Mining Concessions declared by José in the 1988 plebiscite Piñera, minister of mining “I am confident in Chile’s ability to redraft the constitution without altering the investor sentiment that it has maintained for decades and that has allowed its rise as the top copper producer.” 2005 1989 2014 - Tony Harwood, President & CEO, Montero Mining 85% of Chilean vote Amendments made to the March: Approximately in favour of constitution, considered to 100,000 people protest constitutional consolidate democracy in in Santiago demanding “I believe that moving forward the way we do business is going to be different as it has to reform Chile by reducing the constitutional reform political influence of the from president evolve with society and meet society's expectations. Society will demand that business military Michelle Bachelet operations are in harmony with the environment and individuals' livelihoods.”

- Tomás Fischer, General Manager, Edyce 2020 2019 2015 “The process creates opportunities for mining companies to serve in the interests of the In October, a referendum Social unrest in October Bachelet launches a is held and Chileans vote known as Estallido process to draw up a environment, local communities and the country in which they operate and to attempt to by an emphatic margin to Social prompted by high new constitution. The write the wrongs of the industry's past mistakes." approve a constitutional levels of inequality. In proposal fails to make convention and to draft a November, president it to Congress before new constitution Piñera promises a president Piñera is - Brian Miller, Managing Director, Astra Exploration referendum elected

“We expect changes that will not significantly impact the mining industry, which is a pillar of the Chilean economy. Chile has parties across the political spectrum, however, they 2021 2022 2023 tend to meet in the center.”

May: elections held to select the By mid-2022 a final The new - Philippe Hemmerdinger, President, Association of Industrial Mining Suppliers (Aprimin) representatives of the Constituent referendum will be constitution Convention to draft the constitution. The held to approve the becomes Convention has nine months to draft a proposed effective new constitution, with a one-time option constitution, “In Chile, there are clear legal limits to what can be changed in the process of to extend its mandate for three more requiring a simple months. In November, the Chilean majority to approve constitutional reform. There are several international treaties in force that guaranty the general presidential election is held protection of investments.”

- Santiago Montt, CEO, Montt Group

20 CHILE MINING 2021 Industry Explorations Global Business Reports CHILE MINING 2021 21 PRODUCTION, DEVELOPMENT AND EXPLORATION

“Among the key drivers that allowed the copper price to rebound have been the sizeable Chinese government's stimulus to boost their economy post pandemic and China’s extremely high copper inventory build-up of refined copper in 2020, followed by other factors such as US stimulus.”

-Alejandra Fernández, Mining Director, Fitch Ratings

GBR • Industry Explorations • CHILE MINING 2021

Image courtesy of Freeport-McMoRan EDITORIAL Global Business Reports Industry Explorations

at 6 million mt/y, representing approxi- Copper Metal Price Outlook mately 27% of the world's copper sup- Source: BNnamericas Data, ABN Amro (Refitiniv, ABN AMRO Group Economics), BMO Capital Markets ply. In 2019, production stood at 5.6 million mt, a decrease of 44,000 mt 2020 AVG. 2021 AVG. PRICES FORECASTS relative to 2018, primarily due to falling METAL PRICE BMO CAPITAL CAPITAL ore grades at the country's biggest and (JAN-NOV) ABN AMRO MARKETS ECONOMICS oldest mines such as Escondida, the world's largest copper mine and Codel- Copper (US$/lb) 2.72 3.30 2.82 3.22 ROBUST PRODUCTION AMID co's Chuquicamata and Andina. Zinc (US$/lb) 1.01 1.24 0.97 1.09 THE PANDEMIC AND RESUMING 2020 was an eventful year for produc- Nickel (US$/lb) 6.12 7.46 7.03 7.02 ers in Chile, who were able to sustain EXPLORATION production even as drastic measures Iron Ore (US$/t) 103* 105 85 99 were implemented. From January to Gold (US$/oz) 1,766 1,950 1,915 1,859 May 2020, production increased by 3.5% from 2019. However, despite Silver (US$/oz) 20.15 21 27.6 26 strong performances from El Teniente, *Jan-Oct 2020 Collahuasi and El Tesoro, overall pro- duction in 2020 stood at 5.73 million Copper Production per Mine in 2020 mt, signifying a 1% decrease from 2019

Source: Cochilco, GBR according to Cochilco, which is remark- able, considering that Peru and Mexico saw their copper production decrease Spence Copper's anti-viral properties seem to Esperanza by 14.5% and 4.5%, respectively. Jorge have rubbed off on the Chilean mining Lomas Bayas Cantallops, director of studies at Co- industry, which managed to success- Quebrada Blanca chilco, credits the country's ability to fully navigate the pandemic disruptions El Tesoro sustain production to the rise in labour that heavily impacted Peru, Mexico Cerro Colorado productivity, which increased by 24.9% and Australia, resulting in a decrease in Candelaria El Abra year-on-year. global copper supply by 1.2% in 2020, Zaldivar Cochilco's report on copper produc- according to Cochilco, the Chilean cop- Anglo American Norte tion in Chile from 2020 – 2031 forecasts per commission. Anglo American Sur a 23.8% increase in output by 2031, "The mining sector showed great re- Los Pelambres reaching 7.095 million mt, after peaking Collahuasi silience and capacity to take care of in 2028 at 7.35 million mt, as a result of the health and safety of workers, with Escondida Codelco TOTAL (1) the development projects under cons- contagion rates much lower than the Codelco - Chuqui, RT y MH truction today. This implies an average average population," highlighted Juan Codelco - Teniente annual growth of 1.96%. Between 2020 Carlos Jobet, Bi-Minister of Energy and Codelco - Andina and 2029, Chile is to witness investment Mining. "That was complemented with Codelco - Salvador in its mining sector amounting to US$74 Codelco - Gaby business continuity, as we closed 2020 billion, including 49 projects mainly with a copper output in line with 2019 mt/y copper 0 400,000 800,000 1.200,000 1.600,000 2.000,000 copper-related. 68% of these projects figures. For comparison, copper pro- are brownfield, 34% are in the execu- duction in Peru fell by 30% in 2020, so times more copper than an internal energy movement requires copper to tion stage, and 64% are in the feasibility the industry's performance in Chile was combustion engine vehicle, according rebuild infrastructure. The supply short- stage. remarkable last year." to Wood Mackenzie, global research ages as a result of the pandemic and It also highlights a significant change in Global supply disruptions decreased and consultancy group, who also an- the forecasted increase in demand for the country's production profile, shift- inventories, exacerbating the copper ticipates over 20 million EV charging copper will drive a bullish market for the ing from hydrometallurgical copper demand and supply gap, which has points to be deployed globally by 2030, metal," he explained. production towards concentrates pro- been in deficit since 2015, and improv- consuming over 250% more copper Of the top 10 copper mines in the world, duction, which will represent 54.9% of ing the metal's price outlook. Accord- than 2019. three are in Chile, namely BHP's Escon- the total copper output by 2031. Opti- ing to Goldman Sachs, the copper price Alastair McIntyre, CEO of Canada- dida, Anglo American's Collahuasi and mism about a balanced copper market will climb to an average of US$9,175 per based Altiplano Metals, a mineral ex- Codelco's El Teniente. Major players for Chile this year is reinforced as major mt (US$4.16/lb) by 2022, fuelled by op- ploration company focused on acquir- and an upcoming mid-tier mining scene Chilean projects such as Codelco's El timism over vaccinations worldwide and ing projects with short-term potential dominate copper production in Chile. Teniente and Rajo Inca, BHP's Spence strong economic revivals. for rapid advancement and production, According to Consejo Minero, the Chil- and Teck Resources' Quebrada Blanca In the long-term, analysts foresee de- sees the Chinese fiscal stimulus pack- ean mining association for large scale II enter the commissioning phase, cou- mand for copper increase by 28% over ages fuelling the current record growth operators, mining activity in Chile wit- pled with the development of Antofa- the next decade, especially as electric in copper demand. He is also optimistic nessed consistent growth in production gasta Plc' Los Pelambres and Capstone vehicles (EV) use up to three and a half about the future of copper: "The green until a decade ago, where it stabilized Mining's Santos Domingo project.

24 CHILE MINING 2021 Industry Explorations Global Business Reports INTERVIEW Global Business Reports Industry Explorations INTERVIEW

Iván Even though mine development Aaron This year, all our operations and maintenance activities in Chile will rely on 100% Arriagada were initially restricted, Puna renewable electricity supply, operations have adjusted to including Collahuasi. We are the new working conditions also promoting electromobility and resumed. These measures in our operations and recently CEO enabled us to continue CEO implemented a fleet of 17 ANTOFAGASTA PLC operating during the past year, ANGLO AMERICAN CHILE electric buses to transport allowing us to achieve our full our workers. year production guidance for 2020 and lower cash costs than in 2019.

How did Antofagasta overcome the mains high. This guidance assumes our How are you actively reducing your to Los Bronces, which means reducing dents with the tools to become agents challenges posed by the health crisis? COVID-19 measures will remain in place environmental footprint while in- exposure to risk of working at high alti- of change in their territories and in Chile The safety and health of our workers and for all of 2021. tegrating more automated mining tudes and harsh winters. Additionally, by helping them develop their talents local communities has always been our While we consume a lot of energy as a techniques? this centre will make it possible for a interactively using new learning meth- first priority and never has this been more What is the status of the Los Pelam- sector, we are convinced that copper mi- We set a global goal of achieving car- significant number of operators to work odologies. Today the Pioneer Model important than in the past year. We rap- bres expansion? How is Chile increas- ning is a key component in the move to a bon neutrality by 2040, including eight remotely, radically improving the work- is being implemented in 17 establish- idly shifted our office-based workforce ingly using seawater for mining opera- more sustainable world given its energy carbon neutral operations by 2030. force’s quality of life. ments, positively impacting the lives of to working from home and introduced a tions? efficiency benefits, with multiple applica- Therefore, we put innovation at the Another similar initiative is our Digital more than 2,000 students and their co- range of new protocols to protect peo- The construction of the Los Pelambres tions in battery technology, zero emis- centre of everything we do through our Twin, which is a virtual simulator that al- mmunities. ple. We have also been operating with expansion project restarted in August sion transportation and renewable power FutureSmart Mining approach, and we lows us to visualize what is happening Meanwhile, to improve the water supply approximately two-thirds of personnel alongside a detailed review of the proj- generation technologies. already have several concrete actions at Los Bronces mine in real-time. It uses in areas where we operate, we created at our key operations, with the rest either ect schedule and costs, including any underway. This year, all our operations a portable technology that provides the Rural Water Program in alliance with working from home or in quarantine. COVID-19 restrictions. We now expect Analysts foresee a lag in mining invest- in Chile rely on 100% renewable elec- workers with a control centre on their WeTech, which is a system to strengthen Throughout, we have been working in the project to complete in early H2 2022. ment in Chile as it rewrites a constitu- tricity supply, including Collahuasi. We cell phone, tablet or computer. Also, Rural Drinking Water Systems (APR) us- coordination with government authori- Some mines in Chile are located in arid tion. Do you see this impacting invest- are also promoting electromobility in since it reduces the need for the trans- ing automation and online monitoring. ties to ensure a consistent approach and areas, where continental water availabil- ment? our operations and recently implement- fer of workers, it is beneficial to reduce For example, it implements a software also established a US$6 million fund to ity is decreasing. Care for this precious I believe it is an opportunity for us to ad- ed a fleet of 17 electric buses to trans- the number of workers on-site amid the that allows the APR operator to control provide equipment, supplies and finan- resource is a crucial part of our approach dress the social issues in our country and port our workers. Anglo American also pandemic. and automate their system remotely. cial support to the communities near our and we are currently making the invest- positively affect people’s wellbeing. For started the pilot of the first photovoltaic It has been implemented in 52 APRs operations. ments to use about 90% sea or recycled the mining industry, I don’t expect Chile plant built on a tailings deposit in the What are your initiatives to contrib- in the Metropolitan and Valparaíso re- Even though mine development and water from 2025 onwards. At the mo- to move away from the robust and pre- world, with a floating island on the Las ute to the local development of the gions, benefiting more than 120,000 maintenance activities were initially re- ment, we use raw seawater at Centinela dictable set of rules we have and which Tórtolas deposit. We are developing regions in which you operate? individuals through savings in energy, stricted, operations have adjusted to the and Antucoya, and we are also building have allowed mining investment to pros- the world's first green hydrogen mining We are taking a purposeful approach a reduction in the breakage of matrices new working conditions and resumed. a desalination plant at Los Pelambres to per and deliver growth in the sector over truck. and questioning our previous manners and greater availability of water for hu- These measures enabled us to continue release continental water for agricultural the last 40 years. People recognize that We look for ways to develop more mod- of operation to ensure we mine in a man consumption. operating during the past year, allowing and other purposes in the Choapa valley. Chile’s prosperity depends on having a ern and intelligent mining techniques conscious and environmentally focused To strengthen local capacities, we sup- us to achieve our full year production The usage of seawater is becoming in- strong mining industry and investment to reduce our environmental footprint. manner. Therefore, we developed a port and promote the School of Social guidance for 2020 and lower cash costs creasingly common in Chile and no new and growth are required to fund the so- The Los Bronces Integrated Remote roadmap with concrete actions and Leaders, which provides training to rep- than in 2019. mining projects of any size will be permit- cial reforms currently under discussion. Operation Center (IROC) is Anglo goals. With this plan, we seek to con- resentatives of social organizations in ted to operate using continental water in American's first remote control room. tinue contributing to the development negotiation and design and application Could you provide an overview of the future. What is your view of copper funda- The IROC will allow Los Bronces to op- of the country and neighbouring co- for competitive funds. 2020 production and costs, and indi- mentals and the key drivers? erate in real-time and in an integrated mmunities by using less water, reducing Finally, to promote local economic de- cate your guidance for 2021? Antofagasta has made a decided move Following 2020 and the impact of the manner from Santiago and become our carbon footprint and protecting the velopment, we have several programs. Full year copper production was 733,900 towards renewables: What is timeline pandemic, we now have a tight market the digital operation's brain, where the glaciers that are near our operations. The most important and oldest is tonnes (mt) and cash costs were US$1.14/ for transition and its impact on the and expectations are that there will be integration of all digitalization and re- Within the framework of our sustainable Emerge. Through this initiative, we have lb. This reflects our resilience and flexibil- group’s CO2 emissions? major stimulus to the global economy. mote operation technology projects is mining plan, we promote a series of ini- supported 3,200 businesses in neigh- ity over the past year. Antofagasta has set a goal to reduce its We believe that copper demand growth materialized. It will incorporate artificial tiatives to foster local development and bouring communities, which have re- We expect another solid performance forecast greenhouse gas emissions by will continue as the world seeks to find intelligence applications, augmented environmental awareness, which have ceived essential knowledge, tools and in 2021, with copper production of 730- 300,000 mt by 2022, supported by a se- cleaner solutions for modern life. reality, remote operation technology, emerged from permanent dialogue advice that allowed them to improve 760,000 mt at a net cash cost of US$1.25/ ries of initiatives including the transition It also will play a key part in sustainable and other integrated technologies. with the community. Some power- the administration and management lb as ore grades increase at Centinela of all our mining operations’ energy sup- urban development and a post-pandemic With the implementation of the IROC, it ful examples are our Pioneer Model in of their businesses and significantly in- and operating efficiency at our mines re- ply to renewables by 2022. world, given its antimicrobial qualities. ■ will not be necessary to transfer workers education, which seeks to provide stu- crease their sales. ■

26 CHILE MINING 2021 Industry Explorations Global Business Reports CHILE MINING 2021 27 FACTSHEET Global Business Reports Industry Explorations

Because success comes from Production Map & Directory Majors' production and working together. Source: Consejo Minero The STRABAG group is one of the world’s leading brownfield expansion companies in construction and technology, Tarapacá Region Products Company overseeing 12,000 projects a year with a workforce Cerro Colorado C BHP Billiton of 75,000 employees worldwide. It operates under updates two brand names in South America: ZÜBLIN, Collahuasi C M Anglo American/Glencore a household name in mining and STRABAG, Quebrada Blanca C Teck Resources specialized in tunnelling and infrastructure. Antofagasta Region Products Company With a 30-year history in Chile, we are positioned Antucoya C Antofagasta Minerals at the forefront of the construction and mining El Abra C Freeport McMoRan/CODELCO industries, where we combine our local experience Production rose in some mines in Chile over the course of Radomiro Tomic C CODELCO with the know-how from Austria and Germany. We Tarapacá 2020, while Anglo American reported a steep fall in produc- Chuquicamata C M CODELCO are committed to working daily with our partners to tion of 17.9% year-on-year in the first five months of 2020 ensure we deliver excellent service values such as Ministro Hales C CODELCO as a result of water shortages at Los Bronces. Across its Los fellowship, sustainability and the innovative spirit Michilla C Antofagasta Minerals Bronces, El Soldado and Collahuasi joint venture, Anglo that characterizes our work. Spence C BHP Billiton American produced 647,400 mt in 2020, which is a 1% in- www.strabag.cl Sierra Gorda C G M KGHM crease compared to 2019. Antofagasta Centinela C G Antofagasta Minerals On the other hand, Lundin Mining's Candelaria saw produc- Gabriela Mistral C CODELCO tion fall 14.9% to 126,702 mt amid conflicts with trade unions Salar de Atacama L SQM that forced it to suspend operations in October of 2020 until both parties reached an agreement by the end of November. Lomas Bayas C Glencore However, Candelaria's production is expected to rebound Zaldívar C Antofagasta Minerals/Barrick Gold to 172,000 – 182,000 mt for 2021. Many major mining com- Escondida C BHP Billiton panies struggled to maintain smooth relationships with their Franke C KGHM workforce, and this issue was identified as the seventh risk Atacama Region Products Company facing mining companies globally in EY's Global mining and Atacama Salvador C M CODELCO metals top 10 business risks and opportunities report for this NuevaUnion (development) C G M Teck Resources/Goldcorp year. While companies moved rapidly to protect their work- La Coipa G S Kinross force from the outbreak, labour unions criticized them for tak- Maricunga G Kinross ing advantage of the crisis to reduce jobs. To cope with the pandemic, Iván Arriagada, CEO of Antofa- Ojos del Salado C G Lundin Mining gasta Plc, explained that the company shifted to working Candelaria C G Lundin Mining Coquimbo from home and operated with two-thirds of personnel on key Caserones C M Lumina Copper sites. "Even though mine development and maintenance ac- Coquimbo Region Products Company tivities were initially restricted, operations have adjusted to Carmen de Andacollo C Teck Resources the new working conditions and resumed. These measures Altos de Punitaqui C Glencore enabled us to continue operating during the past year, allow- Valparaíso Los Pelambres C M Antofagasta Minerals ing us to achieve our full year production guidance for 2020 Región Valparaíso Region Products Company and lower cash costs than in 2019," he commented. Metropolitana El Soldado C Anglo American The British multinational's total production in Chile in 2020 Santiago stood at 733,900 mt. "We expect a solid performance in Andina C M CODELCO 2021, with copper production of 730-760,000 tonnes at a net O'Higgins Santiago Metropolitan Region Products Company cash cost of US$1.25/lb as ore grades increase at Centinela Los Bronces C M Anglo American and operating efficiency at our mines remains high," high- O’Higgins Region Products Company lighted Arriagada. El Teniente C M CODELCO Output at Zaldívar, the 50/50 joint venture between Antofa- gasta Plc and Barrick Gold, decreased 16.9% to 96,500 mt. COMMODITY Meanwhile, the expansion of Los Pelambres, which accounts for half of the company's copper output, is one of the pro- C = Copper Copper jects to keep an eye on in 2021. Due to the pandemic, the M = Molybdenum Copper-Gold US$1.3 billion expansion project was suspended for 120 days L = Lithium Copper - Molybdenum starting in April, but resumed in August of 2020 and should S = Silver Copper - Gold - Molybdenum be complete in H2 2022. It will increase capacity by 60,000 G = Gold ZÜBLIN STRABAG, Alonso de Córdova 4355 oficina Gold mt/y and includes a US$500 million desalination plant. Using desalinated water and renewable energy, the company aims 1001, Vitacura, Santiago – Chile Gold - Silver to extend the mine life to 2050 as opposed to 2035. The com- Lithium pany is also investing in expanding Centinela, with plans to

28 CHILE MINING 2021 Industry Explorations Global Business Reports 82x240mm_ZUEB_STR_Chile_Tunnelbau_20210308.indd 1 12.03.21 08:15 EDITORIAL Global Business Reports Industry Explorations INTERVIEW

INVESTMENT PORTFOLIO BY REGION: Copper and Other Mining Arica y Joshua Parinacota US$5.23 bn Source: Cochilco Olmsted Tarapacá US$28.02 bn

Antofagasta President and Chief Operating Officer-Americas FREEPORT-MCMORAN US$16.24 bn

Atacama

US$5.06 bn Coquimbo Could you provide an overview of We’re taking the operation back to cently, prices have risen significantly in 2020 production amid the pandemic, pre-COVID-19 levels during the next 12 recognition of copper's favorable de- Copper and indicate your guidance for 2021? months or so. Pre-COVID-19, we were mand trends and the limited ability of US$5.19 bn Santiago We had to modify our operating plans in the process of doing baseline stud- the industry to increase supply. Other Minerals Valparaiso as a result of the impacts of COVID-19 ies for the significant sulfide resource, With 70% of the world's copper supply on the global economy and the copper but were forced to stop that work. This used to deliver electricity, the intensity market. I’m extremely proud of how year, we plan to restart those baseline of copper use will increase as clean US$5.99 bn well the Freeport-McMoRan team re- studies and consolidate all our previ- energy initiatives are implemented. O’higgins sponded to the challenges of the pan- ous efforts on pre-feasibility studies to Copper utilization in electric vehicles demic, specifically safeguarding our determine whether we want to take the and in the generation of renewable construct a second US$2.7 billion concentrator in early 2022. The US$2.5 billion Spence expansion project was delayed in people, communities and assets as we project to the next step. power is more than four times greater Another major expansion project that was temporarily put on April of 2020, as Covid-19 disrupted operations. However, executed and delivered on our revised per unit than that of traditional vehicles hold as a result of Covid-19 restrictions is Teck Resources' construction was ramped up by Q4 of 2020 to ensure pro- operating plans. How are you addressing the water and power generation. In a relatively Quebrada Blanca Phase II (QB2), of which 40% was complete duction by Q1 of 2021. According to the Australian giant, Es- As stated in our recent earnings call, scarcity challenges of operating in short timeframe, global demand just by February of 2021. This project will contribute 316,000 condida and Spence will rely on 100% renewable energy and copper sales for 2021 are projected to Chile? from these green initiatives could ap- mt/y of copper for the first five years to Teck's annual produc- eliminate water usage from aquifers by the mid-2020s and increase 20% over 2020, and our unit At El Abra, we source new water need- proximate the size of today's US cop- tion of 276,000 mt, with an initial mine life of 28 years, using 2030, respectively. net cash cost of production is expected ed for our operations from groundwa- per market. As demand accelerates, only 25% of the total reserves and with significant expan- Freeport-McMoRan's open-pit El Abra operation, the joint to decline. Consolidated sales volumes ter and storm water. Globally, Freeport- copper supply will continue to struggle sion potential. The company aims to become carbon-neutral venture with Codelco, is also working to increase the per- for the year 2021 are expected to ap- McMoRan prioritizes maximizing our to keep up, and this supports the favor- by 2050. To enable this transition, 118 MW for QB2 will be centage of renewable energy usage. The operation was proximate 3.8 billion pounds of copper, recycled/reused water across all our able near-term and long-term outlook sourced from AES Gener's renewable portfolio of wind, solar awarded a Silver Seal Energy Efficiency Award from the 1.3 million ounces of gold and 85 mil- operations. El Abra is no exception, es- for copper. and hydroelectric energy. In total, more than 50% of QB2's Chilean Ministry of Energy. The Phoenix-based company is lion pounds of molybdenum. pecially given it is in an arid region near total operating power needs are expected to be from renew- evaluating a large-scale expansion at El Abra, as their focus in the Atacama Desert. Our water use ef- Can you elaborate on Freeport’s able sources. Chile is on brownfield expansions. "Pre-COVID-19, we were What are the status and details of ficiency (water reused/recycled) at El growth strategy in Chile in the up- Teck Resources also operates Quebrada Blanca, Carmen de in the process of doing baseline studies for the significant sul- El Abra’s expansion? How will it ex- Abra averages around 94% annually. coming years? Andacollo and Nueva Unión, a 50/50 joint venture with New- fide resource but were forced to stop that work," comment- pand your operational capacity? In addition to managing our own water Similar to our overall growth strategy mont that is said to be one of the largest underdeveloped ed Joshua Olmsted, president and chief operating officer- El Abra, our mine in Chile, has been risks, we also are dedicated to sup- for Freeport, in Chile we’re focused on copper-gold-molybdenum projects in the Americas. It is Americas of the company. "This year, we plan to restart those a part of our asset portfolio for many porting our local communities in secur- brownfield expansions. The potential awaiting the submission of the Environmental Impact Assess- baseline studies and consolidate all our previous efforts on years and is similar to several other ing water. El Abra has been supplying sulphide resource and possible El Abra ment (EIA) to begin the drilling campaign. Meanwhile, 350 pre-feasibility studies to determine whether we want to take of our operations that are focused on drinking water to the indigenous com- expansion project are very much in km north of Santiago lies Carmen de Andacollo, an open-pit the project to the next step." leach production. During the last de- munity in Ascotán since 2009. alignment with that. copper mine with a life of mine expected to continue until Meanwhile, Europe's second-largest copper producer: cade, our brownfield exploration has As for acquiring assets in other metals, 2035 and annual production of approximately 60,000 mt. KGHM Polska Miedź, reported record Q2 earnings from its identified a significant sulfide resource What is your view of copper funda- Freeport is foremost in copper. Our One of the most anticipated expansion projects is the Spen- joint venture with Japan's Sumitomo Metal Mining Co, Sierra opportunity at El Abra. We’ve been mentals and its key drivers? portfolio of assets is large and high ce mine, BHP's second-largest deposit in Chile after Escon- Gorda, an open-pit copper and molybdenum mine commis- exploring to determine if and when a If you look at both supply and de- quality. We are a well-established in- dida, for which production increased by 4% in 2020. BHP's sioned in 2014. The mine produced 709,000 mt of copper in transition from a leaching operation mand, the market seems to be tight. dustry leader and operate mines that wholly-owned Pampa Norte operation, in the Atacama Des- 2020, recording a 1% annual increase in production. KGHM into a sulfide operation is economically The global inventories are as low as are among the largest in the world. Our ert of northern Chile, consists of the Spence and Cerro Colo- was granted environmental approval in 2018 for a US$2 bi- feasible. As we look into the future, they’ve been in at least a decade. From assets have long lives and are durable, rado mines, which collectively produced 243,000 mt in 2020, llion expansion, which would extend the mine's life by 21 there are opportunities for growth at a fundamental perspective, the market with embedded options, reserves and a 2% year-on-year decrease, primarily due to a 14% decline years. The plans include an increase to the capacity of the El Abra. Studies are currently underway continues to be strong, the challenges resource growth. In short, we're a reli- in stacked ore grade. These are targeting a production of facility's mill from 190,000 mt to 230,000 mt per day, accord- but no decisions have been made at are around the uncertainties associated able supplier to the global copper in- 243,000-270,000 mt in 2021. ing to Chilean newspaper Estrategia. this point. with a global recovery and China. Re- dustry. ■

30 CHILE MINING 2021 Industry Explorations Global Business Reports CHILE MINING 2021 31 EDITORIAL Global Business Reports Industry Explorations INTERVIEW

ect, Santo Domingo, is Chile's only fully Meanwhile, Canada-based Los Andes Cop- Darren Pylot, Fernando The rise of permitted, greenfield project and is expect- per is working on the pre-feasibility study Alastair ed to start construction in 2021. "2021 is a for its Vizcachitas copper-molybdenum Albert Garcia III Porcile & mid-tier mining pivotal year for Capstone Mining as we are project, 150 km north of Santiago. Eduardo putting together all the pieces to finance Covarrubias, director of Los Andes Copper, & Jerrold Annett Eduardo McIntyre "A current trend we have noted is the in- Santo Domingo, which is fully permitted," explained that the project has significant crease in mid-tier mining companies in- commented Jerrold Annett, senior vice geological potential: "The current mineral- DP: President, CEO and Director Covarrubias AG: Vice President of Projects terested in Chile. Large-scale operators president of strategy and capital markets ization is open in most directions. We opti- FP: Executive Chairman CEO are expanding, but there are also several for Capstone. "We are expecting to begin mized the project on an operational scale JA: Senior Vice President of EC: Director ALTIPLANO METALS promising mid-sized projects for which we construction by the end of 2021 and be in at a starting rate of roughly 110,000 mt/d. Strategy and Capital Markets LOS ANDES COPPER are developing studies," highlighted Clau- production by 2024. This will more than With a large land package such as Vizcachi- CAPSTONE MINING CORP. dio Lesch, president of Ausenco in South double the company’s entire production." tas, there are so many alterations that one America, the leading Australian EPCM On the other hand, MTV ramped up pro- can spend the next 15 years drilling and company operating globally. "We believe duction at its Don Gabriel mine following finding more resources," he said. there is a strong potential for these projects the completion of its expansion project in Another project with scope for expansion to be developed in the future. Canadian early 2020. The company is using block- is Mantos Copper's Mantoverde brown- and Australian junior companies are also caving to extract the ore. "This method has field operation in the Atacama region, for DP AG FP increasingly active in Chile, especially in the a very low unit cost compared to the other which it secured US$846.6 million in Feb- gold space." potential methods. The initial capital cost ruary of 2021 to fund the development Chile is known for its major mines, which has been financed through our strategic of Mantoverde's Sulphide Development produce 90% of its output. However, re- partners," commented CEO Luis Vega, who Project (MVDP). The project includes build- cently the country is witnessing the rapid added: "We rely on a sophisticated moni- ing a concentrator to process ore from the JA EC Can you tell us more about the expan- growth of small to mid-tier mining produc- toring system to control the caving. This is sulphide deposit and expanding the oxide Can you give an introduction to Cap- Can you give us an update on Los Andes' sion plans of Farellon and its timeline? ers such as Minera Tres Valles (MTV), Man- vital to achieving a uniform decrease in the operation, extending the life of Mantoverde stone? most recent developments? Altiplano began extension of the Hugo De- tos Copper, Los Andes Copper, Altiplano columns of ore over the extraction points, to 2041 and increasing production to ap- DP: Capstone Mining is a Vancouver-based FP: We published a Preliminary Economic cline at Farellon in early 2020 to access ad- Metals, Pucobre, and Capstone Mining. so technology is key to the operation's suc- proximately 110,000 mt of copper annually base metals mining company focused on Assessment (PEA) in June 2019, and we ditional copper-gold mineralized material Capstone Mining's copper-iron-gold proj- cess." and 33,000 oz of gold from 2023 to 2030. ■ copper. We have two operating assets, have been working on a pre-feasibility study at depth within the iron oxide copper gold the first-quartile low-cost Cozamin opera- (PFS), including a drill programme, which vein system. To date, we have accessed the tion in Mexico and the Pinto Valley mine in we expect to commence by May 2021 fol- 376 m level underground. We are expand- Arizona. We also have a large-scale trans- lowing authorization from the government. ing also to the southwest where we have formational growth project in the Atacama Los Andes is also currently preparing to de- observed good grades. Desert in Chile called Santo Domingo, a velop an environmental impact study. top quartile copper-iron-gold project that How will Altiplano’s new processing facil- has a large cobalt deposit. How are you addressing the issue of ity increase recovery and capacity? JA: 2021 is a pivotal year for Capstone power to the mine and to what extent Our new mill is designed to recover copper Mining as we are putting together all the are you relying on renewable energy and gold and reduce the current process- pieces to finance Santo Domingo, which is sources? ing and trucking costs by 33% and 75%, fully permitted. We are expecting to begin EC: Currently, we are still sizing the power respectively. We have also designed a mag- construction by the end of 2021 and be in requirements of the project. We own hy- netic iron recovery circuit which will allow us production by 2024. droelectric water rights in the Rocin River, to capture high value iron concentrate and allowing us to put together a small hy- reduce tailings output by 45%. The facility Can you elaborate on Santo Domingo's dropower project. We are thinking about will also include a de-watering system that timeline and the type of partner you are where power generation dynamics are will reduce freshwater consumption by 75% looking for to advance the project? going over the next 30 years and want to and produce dry tailings, ensuring our op- DP: Capstone Mining has recently repur- make sure that we include a significant por- erations minimize our footprint. chased the minority interest of the project tion of energy as renewable energy. and is again 100% owners. We were also What makes Chile an attractive mining able to bring down the capital cost estimate What is your vision for Los Andes Cop- investment destination? of the project by completing a US$290 mil- per? I understand there is some concern regard- lion gold stream agreement with Wheaton EC: We operate one of the most attractive ing the change of the constitution, however, Precious Metals. We have also reached an new copper projects. When you compare I am confident that any transformation will agreement with Puerto Ventanas to build Vizcachitas with greenfield or extension be smooth and non-disruptive to the mi- and operate the port. The initial cost esti- projects, the fundamentals are very com- ning sector; its citizens and politicians will mate of Santo Domingo was approximately pelling in favour of Vizcachitas. We are fo- recognize the importance of mining and US$1.5 billion, but where we stand today, cused on ensuring that our project's con- the contribution it brings to the country. we only need to finance about US$800 mil- figuration is sound, reliable and favorable Change is a feature of Latin American poli- lion. We would like to bring in a partner on from an environmental and social perspec- tics, fortunately, in the case of Chile, change a 30% - 50% ownership level. ■ tive to continue advancing the project. ■ has been often progressive in nature. ■

32 CHILE MINING 2021 Industry Explorations Global Business Reports CHILE MINING 2021 33 EDITORIAL Global Business Reports Industry Explorations EDITORIAL

ensure higher copper ore grades are from one of the world's largest open-pit are active, they represent a smaller por- ground. We look forward to capturing Codelco: extracted and productivity is achieved mines (by excavated volume) to an un- Copper tion of the market relative to other mi- opportunities with the boom in com- to remain competitive," confirmed derground operation to maintain Codel- ning jurisdictions. Major companies re- modity markets," he continued. Going Philippe Hemmerdinger, president of co's production rates amid the declining Exploration main the most relevant actors in Chile's the Association of Industrial Mining grades. The three levels deep under- exploration segment, representing Suppliers (Aprimin). ground expansion is to be implemented 85% of the total exploration budget Junior exploration updates Underground Chile is home to the world's largest cop- using conventional drill and blast drift- in 2020. Nonetheless, majors tend to per producer, Codelco, which accounts ing techniques. By 2026, it is expected focus on updating their resource base A good portion of the copper pros- for 10% of the world's known proven to produce 320,000 mt/y of fine copper and reserves of their current deposits pects in Chile currently undergoing ex- reserves and 11% of global annual pro- and 15,000 mt/y of molybdenum. through predominantly brownfield ac- ploration are porphyry-type deposits, THE FIGHT AGAINST DECLINING duction. Codelco also operates some of Chuquicamata accounts for a quarter tivities, which is worrying considering followed by iron-oxide-copper-gold the oldest mines in the world, such as of Codelco's total production, however the need for greenfield projects given (IOCG) deposits. Torq Resources ac- ORE GRADES Chuquicamata, the company's second- 1,700 km to the south lies the compa- the industry's recent decline in produc- quired the promising Margarita IOCG largest operation by size. The compa- ny’s largest operation, El Teniente, the RECOVERING COMMODITY tivity due to falling ore grades. project in March 2021, with an explora- ny's total production amounted to 1.71 world's largest underground copper PRICES RENEW INTEREST IN "Shareholder and stakeholder pres- tion target of approximately 20-35 mil- million mt in 2019 and increased by 1% mine. First mined in the early 1900s, El EXPLORATION ACTIVITIES sure is a factor that prevents greenfield lion mt of copper at 0.2-0.5% Cu. in 2020. The company did however, face Teniente developed through the years exploration and favours brownfield," Pampa Metals controls a 100% inter- challenges to maintain production amid and today includes 3,000 km of under- commented John Currie, director of est in eight exploration projects in Chile faces a structural issue regarding the pandemic. Codelco has a plan to in- ground tunnels. Its US$3.4 billion ex- prospect generator Excava. "It is false northern Chile. "Five of the eight pro- productivity growth, as the country's vest US$40 billion on its core assets to pansion, to be completed by 2023, will to assume that Chile has no greenfield jects' geology is obscured by young total factor productivity (TFP) has pla- extend their life, expand and overhaul introduce a new section called Recursos opportunities and has matured in terms sedimentary sequences, so geophysi- teaued since the 1990s and decreased operations over the next decade. Norte, to contribute 20% of the ore fed of exploration potential. Also, the past cal exploration is our current priority by 4.7% on average every year from Chuquicamata's life is to be extended daily to the mine's processing facilities. downturn in the commodity cycle has combined with geological mapping, a 1993 to 2015 as a result of declining cop- by another 40 years at least, as approxi- Next comes the Diamante and Andesita Investors are wary of a copper supply limited access to capital for explora- program that has already been started per ore grades, according to the OECD. mately US$5.6 billion is being spent phases, currently under construction. shortage as demand for the metal is tion activities. Another deterrent has at Arrieros," stated Timothy Beale, di- "Mines must invest in innovations to on the century-old mine to transition it Overall, the expansion will extend the projected to grow by 1.7 million mt/y been limited access to the prospective rector of Pampa Metals. “Pampa Me- productive life of the mine by 50 years, by 2027, according to the Copper De- boosting production to more than velopment Association. The worldwide 500,000 mt/y compared to 459,744 mt/y increase in demand for cleaner energy, it produced in 2019. coupled with bets on economic recov- Earlier in 2021, Codelco also approved a ery pushing metal prices to unprec- US$1.38 billion development project for edented highs, will drive increasing Rajo Inca, part of its Salvador division, demand for copper. Resulting higher which has been operating since 1959 metal prices could cause a 15% to 20% with three small open pit mines and increase in mineral exploration bud- an underground mine. The expansion gets, according to S&P Global. will increase the mine's output by 50%, In 2020, Chile registered an exploration peaking at 95,000 mt/y of fine copper. budget of US$458 million – the fourth Meanwhile, its Andina operation is to be highest in the world and equivalent to altered under a US$250 million plan fol- 5.5% of the global exploration budget lowing criticism from environmentalists for nonferrous metals, according to to protect glaciers in the region. S&P and Cochilco. However, this fig- With great production capacity comes ure decreased by 30% in 2020 as the great challenges for Codelco, which fac- pandemic pushed companies to slash es attacks from environmentalists across capex activities such as mine develop- multiple operations, tensions with la- ment, exploration and maintenance for bour unions and high costs and debt a few months. Globally, in 2020, explo- to finance structural projects. Nonethe- ration budgets decreased 10% to US$ less, the company has embarked on a 8.7 billion compared to US$ 9.2 billion journey of innovation and is increasing in 2019, with copper being the most af- the use of mining technology to reduce fected with a drop of US$560 million, of its carbon footprint, minimize costs which the drop for Chile was US$ 196 and increase productivity by applying million. automation and robotics to efficiently According to Cochilco, out of the 101 extract high grade copper at its deep companies with exploration projects mines. The current high cycle of copper in Chile, 75 are junior companies, who prices should only help the company’s tend to be headquartered in Canada or positioning for the coming years. ■ Australia. However, even though juniors

34 CHILE MINING 2021 Industry Explorations Global Business Reports CHILE MINING 2021 35 INTERVIEW Global Business Reports Industry Explorations Timothy Beale tals' primary focus is on copper, however, three of our projects also have good evidence for potential gold and silver mineralization." Recent arrivals to Chile’s junior segment include Tesoro Resources, Orestone Mining Corp, Solaris Resources and Director Helix Resources, while Austrin Resources, Cornerstone Capital Resources, Josemaria Resources, MGX Minerals PAMPA METALS CORP. and Santana Minerals, discontinued exploration activities in Chile. Orestone Mining Corp commenced a 1,200m drill- ing program on its Resguardo project, showing typical porphyry characteristics and a similar mineralization to Candelaria. TSXV-listed Solaris Resources is drilling for discovery at its Tamarugo and Ricardo projects. What was your strategic motivation behind the creation of To what extent has Chile’s stability been compromised fol- "Exploration activities undertaken in Chile today are Pampa Metals? lowing the protests in 2019 and the upcoming constitu- predominantly focused on immediate production and The idea to create Pampa Metals was seeded at the end of tional reform? converting existing resources or revisiting historical data. 2019 when Revelo Resources was looking at opportunities to I do not believe the demonstrations altered the long-term The decline in greenfield exploration is alarming and progress its business and create a separately financed compa- stability Chile has witnessed over the last decades. The gov- cause for concern," commented Michael Kosowan, presi- ny that did not rely on the prospect generator model as Revelo ernment’s swift response to allow a referendum to rewrite the dent and CEO of Vancouver-based Torq Resources. "The did, and which was able to invest in its own direct exploration. constitution, and the subsequent results of the referendum, are risk-taking attitude towards exploration needs to be fos- Eight of Revelo’s copper-focused projects were subsequently a testament to Chile’s maturity and stability as the country ap- tered and increased. This dormancy period in explora- sold to a private company to create a new vehicle that now falls pears to be on a peaceful and positive democratic path that tion affects regions like Chile because grounds are not under the Pampa Metals Corporation name and that is listed has not affected the ability of the country in general, and busi- readily open or are held by groups with low interest in on the Canadian Securities Exchange (CSE) with the ticker sym- nesses, to continue and progress. The Chilean government is exploration." bol of “PM”. For various reasons, the new company decided it also to be praised for the manner with which it is handling the would list on the CSE as opposed to the TSX, as the require- health crisis and the fact that mining production has largely ments for listing are a little easier. Pampa Metals is also listed been maintained. Financing on the Frankfurt Exchange, to appeal to European investors. The company had successfully raised a contractually required Do you believe Chile’s declining copper grades are likely to Most registered companies rely on releasing shares to minimum amount of CAD$ 4 million prior to listing, and imme- pose a bigger challenge to mining in the future? raise capital for their activities. Cochilco's report on ex- diately after the start of trading of its stock in December 2020, The scale of some of the mining operations in Chile is immense ploration activities in 2020 identifies the Toronto Stock was able to start investing the money raised on the exploration with world-class operations for 100 years. The scalability of Exchange (TSX), the TSX Venture Exchange (TVX) and of those eight projects. these large deposits is incredible. Whilst grades overall have the Australian Stock Exchange (ASX) as the main mar- declined over time, the overall production of copper in Chile kets funding exploration activities in Chile. In 2020, TMX Which of the eight assets is Pampa Metals’ main focus at has been maintained and even increased over the last decade. Group (TSX and TVX) funded 34% of projects in Chile, the moment? There is a global challenge to find new mineral deposits to pro- while the ASX funded 28%. We have great faith in all the projects in our portfolio and their vide important minerals to society, and we are now finding de- An alternative to stock market financing is private equity, geological prospectivity as they are located along the highly posits deeper and in more complex geological environments, which decreases companies' exposure to the volatility of prospective and prime mineral belts in northern Chile. Five of which makes the challenges even more critical. Pampa Metals public financial markets. While most private equity firms the eight projects’ geology is obscured by young sedimentary believes it is well placed to meet those challenges. financing exploration are foreign, some companies are sequences, so geophysical exploration is our current priority looking to raise capital locally such as Astra Exploration. combined with geological mapping, a program that has al- Where do you see the highest growth potential for Pampa "We are exploring many options for financing, such as ready been started at Arrieros. Pampa Metals’ primary focus Metals in Chile? private investors and local institutions. It is vital for Astra is on copper, however three of our projects also have good Chile is a mature market but in a positive way. Most of the mi- to engage with local investors in Chile," explained man- evidence for potential gold and silver mineralization. ning activity occurs in the northern desert, where population aging director Brian Miller. density is low. Large portions of northern Chile are either un- The medium-sized mining space has been increasingly How do you market Chile as a mining jurisdiction to pro- derexplored or unexplored, so while it may be a mature mining attracting attention from private equity firms in the last spective investors? market, it has not yet reached maturity in terms of its explora- years. For example, Denham Capital has a wide portfo- We have always ranked Chile very highly as a mining jurisdic- tion potential. Pampa Metals’ efforts will be directed towards lio of mid-tier companies that started off as juniors, such tion. Chile wears the crown of the top copper producer globally exploration, by relying on improved geological models than as Santiago Metals, operating the Delirio and Puquios comfortably. It is also in the spotlight for its lithium resources those used 20 or 30 years ago, allowing us to revisit areas his- projects. Meanwhile, Mantos Copper is owned by a con- and has long attracted attention for precious metals. Mining is torically explored with fresh eyes and technology, as well as sortium led by British investment firm Audley Capital and the backbone of the Chilean economy and the country offers a investigating totally new areas. ■ Orion Mine Finance Group, who bought Mantos Copper sound legal, fiscal and financial framework for investors. and Mantoverde from Anglo American. ■

36 CHILE MINING 2021 Industry Explorations Global Business Reports INTERVIEW Global Business Reports Industry Explorations THOUGHTS

Insights from the ground: Can you give us an overview of Torq The industry, as a whole, therefore Resources and the company's transi- needs to invest more in exploration as Are We Witnessing the Beginning of tion from Stratton Resources? it is the lifeblood of the mining indus- Torq Resources is an exploration com- try. Our advantage is our ability to raise pany focused on establishing a top tier capital for that much needed explora- a New Commodity Supercycle? mineral portfolio and the fourth com- tion. By leveraging our global experi- pany within our group of exploration ence, we can fund and uncover projects juniors. Our management teams have that will help fill this void. raised US$550 million and monetized Exploration activities undertaken in “The price of copper responds to the laws of supply and demand. A supercycle involves a successes in two previous exploration Chile today are predominantly focused long boom in demand that drives up prices until they get so high that demand collapses, companies, delivering high value to on immediate production and convert- pulling prices down again. Currently, we are not seeing a difference between supply and shareholders. Following a comprehen- ing existing resources or revisiting his- demand of copper big enough to constitute a supercycle.” sive review, focused primarily on the torical data. The decline in greenfield Americas, Torq saw high potential for exploration is alarming and cause for - Marco Riveros, Vice President, Cochilco exploration projects in Chile, a world- concern. The risk-taking attitude to- Michael renowned mining country. wards exploration needs to be fostered Chile is attractive due to its stability and increased. This dormancy period We are witnessing the reflationary efforts of central banks around the world who are economically and politically and sound in exploration affects regions like Chile Kosowan injecting stimulus into the world economies at an unprecedented level. This will trigger mining code. The silver lining of the because grounds are not readily open inflation and a boom in commodity prices.” pandemic for us has been our ability to or are held by groups with low interest find and appoint a highly experienced in exploration. - Michael Kosowan, President and CEO, Torq Resources local technical team to evaluate pro-

jects and build a strong portfolio led by How do investors perceive Torq Re- Waldo Cuadra, who has over 40 years of sources? President and CEO experience in the industry. Having this The market perceives our company as “We are seeing an upward cycle for commodity prices, which was expected to follow the TORQ RESOURCES highly skilled team is critical as we look having a track record of success, so downward trend that began in 2012. The pandemic ignited and exacerbated the upward for opportunities in the primary mining investors, rightly, have high expecta- cycle by triggering one of the most extensive expansionary monetary and fiscal plans in regions of Chile. tions. Management are also major eq- history.” uity owners, so we are aligned with our Do you think we are witnessing the shareholders' interests. We are fortu- - Juan Carlos Guajardo, Founder and Executive Director, Plusmining beginning of a new commodities su- nate to have the exploration team that percycle? led the discovery at El Morro working We are witnessing the reflationary ef- with us. Mines are made not just stum- “If you look at supply and demand, the market seems to be tight. Global inventories are as forts of central banks around the world bled upon, and it takes a high level of low as they have been in at least a decade. From a fundamental perspective, the market that are injecting stimulus into the world technical expertise to unlock a signifi- continues to be strong, the challenges are around the uncertainties associated with a economies at an unprecedented level. cant discovery and develop a project global recovery and China.” This will trigger inflation and a boom in that is economically appealing to inves- commodity prices. That, coupled with tors and eventual major buyers. Torq is - Joshua Olmsted, President and Chief Operating Officer-Americas, Freeport-McMoRan the lack of exploration and production well positioned to meet this challenge short falls, will place significant upward as we combine our capital markets ex- pressure on the commodity complex. pertise with the team's exceptional tal- Torq Resources fills a void “Following 2020 and the impact of the pandemic, we now have a tight market and The majors will need to replace their ent on the ground. expectations are that there will be major stimulus to the global economy. We believe that in the market for major resources as quickly as they can amidst copper demand growth will continue as the world seeks to find cleaner solutions for companies, as we are equipped this bullish market backdrop. They are Where does Torq Resources see the modern life.” and confident in taking the increasingly outsourcing exploration highest growth potential in the near to junior companies to ensure a strong future? - Iván Arriagada, CEO, Antofagasta Plc calculated risk associated with pipeline of quality assets while mitigat- Making a discovery is where we see the

exploration. ing geological risk. company's greatest potential to bring value to our shareholder base. Torq Re- “A supercycle is defined as one resulting from a major structural shift in the market. How would you describe the junior sources fills a void in the market for ma- There is uncertainty to the speed at which the transition will happen to EVs and market dynamic in Chile? jor companies, as we are equipped and Large-scale mining companies are be- confident in taking the calculated risk renewable energy which will determine the nature of this structural shift and the extent ing challenged on the exploration front associated with exploration. We look to which this is a commodity supercycle.” at a time when commodity prices are forward to playing a significant part in skyrocketing. As margins increase for the exploration succession plan in Chile - John Currie, Director, Excava the producers, they are under increas- as we seek out market-impacting cop- ing pressure to replenish their reserves. per and gold properties. ■

38 CHILE MINING 2021 Industry Explorations Global Business Reports CHILE MINING 2021 39 BEYOND COPPER: GOLD AND LITHIUM POTENTIAL

“Chile’s prominent role as a copper producer often causes other metals to be overlooked. While gold production is typically associated with countries such as Mexico and Peru, Chile also has significant gold reserves. US$3 billion in investments have been recently announced in gold and silver projects for 2020-2029. Currently, there are also substantial development prospects for the lithium industry.”

- Marco Riveros, Vice President, Cochilco

GBR • Industry Explorations • CHILE MINING 2021

Image courtesy of Barrick EDITORIAL Global Business Reports Industry Explorations EDITORIAL

Largest Changes in Gold Exploration Budget Gold Production in Chile

Gold BY LOCATION 2019-2020 Source: Cochilco, GBR

Source: S&P Global Production (Tonnes metal content)

60 US 93.5 The exploration grounds in Canada 54.5 the known gold regions of

CHILE'S PRECIOUS METALS Ivory Coast 29.6 Chile are dominated by the 50 majors and mid-tier mining Russia 16.8 companies. In the south of Finland 16.8 Chile there are some good

Guinea 14 40 underexplored opportunities, although we would consider Senegal 11.6 opportunities in the north, Gold mining in Latin America tends to Indonesia 10.9 be associated with Peru, Mexico, Brazil depending on availability. 30 and Argentina. While the industry in Ghana -14 Chile is relatively smaller, ranked 25th in Colombia -15.4 the world according to the World Gold - Tony Harwood, Council, it is one that holds great poten- New Zealand -15.5 tial and has been recently attracting at- 20 President and CEO, tention. The country's renowned repu- DRC -21.5 Montero Mining tation as a mining jurisdiction coupled with the precious metal's bullish price Burkina Faso -31.8 projections puts the Chilean gold mi- Chile -35.8 10 ning industry in the spotlight. "2020 proved a record-breaking year for Argentina -45.9 the gold price, spurred by low interest rates and government stimulus pack- Peru -51.3 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 ages used to mitigate the impact of % Change -40 -20 02040860 0 Covid-19," explained Alastair McIntyre, CEO of Canada-based Altiplano Metals, Northern Chile is home to exceptional for the first seven years. "Production is logistical delays, the expected produc- oz of gold from 2022 to 2024. Kinross that combining Lama with Veladero and a junior resource company with interests gold vein deposits by the coast, which scheduled for early 2023, not consider- tion may change." is also proceeding with the feasibility looking at Pascua separately may make in near-term production assets in Chile. is where Gold Fields' open-pit Salares ing any significant Covid-related delays, Meanwhile, Yamana Gold, one of the study for the nearby Lobo Marte proj- more sense. We are looking closely at "Massive amounts of USD stimulus put Norte is located. Construction of the as announced before the outbreak," biggest gold producers in Chile, oper- ect in the Marincuga strip, after the pre- this and all other options.” pressure on the dollar and with gold project began in February 2021. The confirmed Max Combes, country man- ates the underground operations El Pe- feasibility study estimated a total mine Chile reached its peak of gold produc- priced in US$, it has a natural tendency US$860 million operation has an initial ager of Gold Fields in Chile. "By next ñón and Minera Florida. El Peñón saw its production life of approximately 4.5 mil- tion 20 years ago, at 1.74 million ounces. to rise. As economies need to reflate to mine life of 11.5 years and should pro- winter, we will have 1,400 workers on- production increase in 2020 to 162,000 lion oz of gold. By 2028, the entry of new projects into get back to post COVID-19 employment duce 450,000 ounces of gold annually site, therefore, if we encounter further ounces of gold, from 159,515 ounces On the other hand, Chile's environmen- operation as mentioned above, namely and GDP levels, I see the outlook on in 2019. After drilling from Q4 2019 to tal court ordered the definitive closure Salares Norte, La Coipa and El Peñón, gold remaining positive." Q1 2020, the Toronto-based company of Barrick's Pascua-Lama in September will add US$1.2 billion in investment into According to Cochilco, Chile produced reported significant exploration results of 2020, over environmental concerns. the sector and approximately 900,000 1.33 million ounces of gold in 2019, rep- The northern part of Chile is covered with mining claims in March 2020, supporting further mine Located in the Andes mountains on the ounces to national production. resenting a 4.7% year-on-year increase. controlled mainly by majors, making it difficult for junior life extension at El Peñón. Minera Flor- border with Argentina, the project has Gold mining in the country dates back ida also witnessed a successful drilling been on hold since 2013 and was one of companies to compete. Majors can hold on to claims for long to the end of the sixteenth century, and campaign that led to discovery in 2020, the largest Chilean gold projects, with Exploration: a gold rush was encouraged later on with the estab- periods of time relatively cheaply without the need to conduct providing flexibility to the operation, probable reserves of 17.8 million ounces lishment of the royal mint in Santiago. a minimum amount of work or expenditure. expanding the mineral resource base as of gold. “Work is under way to re-eval- Given the precious metal's exceptional Gold reserves in Chile can be found in well as life of mine. uate Pascua-Lama’s potential through performance in 2020, global gold ex- sub-volcanic epithermal deposits and Another significant gold producer in a comprehensive internal review of its ploration budgets were higher than porphyry sporadic deposits, as a by- - Damien Koerber, Chile is Kinross, who announced in Feb- technical, economic and social aspects for other commodities. However, S&P product of copper and molybdenum. COO and Executive Director, ruary 2020 to move forward with the La and different approaches to permit- Global Market Intelligence reports that The industry has significant potential Equus Mining Coipa Restart Phase 7 project, which will ting,” highlighted Marcelo Álvarez, ex- the gold exploration budget in Latin and is expected to grow in size by 42% require a US$225 million investment. In ecutive director of Barrick in Chile and America and Chile decreased by 14% by 2023 according to local newspaper El addition to generating 700 jobs, the Argentina. “As our president and CEO and 35.8%, respectively, between 2019 Mercurio. asset is expected to produce 690,000 Mark Bristow has pointed out, it appears and 2020. Nonetheless, the region

42 CHILE MINING 2021 Industry Explorations Global Business Reports CHILE MINING 2021 43 EDITORIAL Global Business Reports Industry Explorations INTERVIEW

still had the highest budget, totalling industry. "In the south of Chile, there and executive director Damien Koerber. US$858 million in 2020 and accounts are some good underexplored oppor- Meanwhile, Mirasol Resources, project Max for the largest share of the global grass- tunities although we would consider op- generator and explorer, resumed ex- roots stage budget. portunities in the north, depending on ploration at the Inca Gold gold-silver Production is scheduled for Over the course of 2020, Cochilco iden- availability." project, on the Paleocene belt, after a Combes early 2023, not considering tified 234 exploration projects being Montero Mining was focused on battery brief suspension in 2020. The ongoing any significant Covid-related undertaken in Chile, of which 28% were metals in Africa before acquiring the Is- 1,500 m diamond drill program should delays, as announced before gold-related. Gold trumped copper, abella gold-silver project, for which the be complete by Q2 2021. If explora- the outbreak. By next winter we silver and zinc as the target mineral for drilling program should be complete in tion demonstrates significant potential Country Manager Chile last year, as it represented 48% of holes 2021. Due to the lack of claims available for discovery, Newmont agreed to re- will have 1,400 workers on-site. drilled in 2020. in northern Chile, new junior compa- imburse Mirasol 70% of their costs and GOLD FIELDS The country is increasingly attracting ju- nies tend to acquire assets in the south, invest in additional exploration. niors who are finding access to finance which is more under the radar of major On the other hand, Astra Exploration is easier than other commodities and fo- companies. For example, Australian ju- exploring for gold at Pampa Paciencia. cusing on brownfield exploration. Ac- nior company Equus Mining is to acquire Managing director Brian Miller high- cording to S&P, fundraising by junior the Cerro Bayo epithermal deposit from lighted that the property was first held and intermediate companies for gold Mandalay Resources, where it plans by B2Gold, who were exploring for cop- Can you elaborate on Gold Fields was Cerro Corona in Peru is similar in terms of approximately 18% of the energy being projects hit a record high from January to explore for brownfield and green- per. "It is located approximately 10 km able to stick to the construction sched- altitude but not in technology since it is a supplied from solar power. This level of to September of 2020, amounting to a field targets. "We have been exploring north of Sierra Gorda and the miner- ule of Salares Norte amid the pandem- copper mine. solar penetration is near the theoretical total of US$4.05 billion. throughout the Cerro Bayo mine district alization consists of outcropping silica ic? limit as the system will operate exclu- "The exploration ground in the known for approximately 18 months and have caps, quartz veins and sub cropping an- Since engineering, procurement and What technology are you relying on to sively in island mode. The use of solar gold regions of Chile are dominated by already established an inferred min- gular quartz fields that align with east- construction plans were finalized in ad- ensure the mine’s efficiency through energy will decrease our carbon footprint the majors and mid-tier mining compa- eral resource of approximately 302,000 west to west-northwest lineaments. vance and approved in February of 2020, automation? and ensure project sustainability. We will nies," explained Tony Harwood, presi- ounces of gold equivalent at the Taitao SQM has a 20% interest in the project it allowed the project timeline to be We have incorporated certain contempo- continue to evaluate options to introduce dent and CEO of Montero Mining, a new Pit, of which two thirds is potentially and Arena Minerals will also be a major ahead of schedule. Therefore, when the rary mining aspects into the design, such more renewables and other green tech- junior player in the Chilean gold mining open-pitable," commented Equus' COO shareholder," he added. ■ outbreak started, we decided to acceler- as adopting filtered dry stacked tailings nologies into our energy matrix going ate some of our purchase orders and the in preference to the construction of a forward. construction plan execution. Construc- conventional tailings dam. By dewater- tion platforms to begin working on tem- ing the tailings prior to placement we will Considering the bullish appetite for porary facilities started in April, and the achieve a significant reduction in water gold, will Gold Fields focus on explora- earthwork in September. Meanwhile, the consumption, reduction in tailings foot- tion in the region? construction of the camp was divided into print and improved physical stability of Since the discovery of Salares Norte two stages: phase one which started on the tailings facility. deposit in 2011, we have never ceased time, and phase two that was scheduled We are in the process of deploying a pri- exploration activities in the district and for October but was instead rescheduled. vate LTE telecommunications network to have drilled several near-by exploration A decision was also made to add an ad- support our digitalization strategy and to targets. As the Salares Norte project was ditional building to increase the number enhance safety across the site. The LTE consolidated in 2017, we started to allo- of beds in the camp, to comply with Co- network will form the backbone of the cate more resources to increase explora- vid-19 social distancing restrictions. mine and plant communications and will tion in the surrounding 20 km. Drilling has Production is scheduled for early 2023, allow for the remote operation of certain begun for different targeted plots. How- not considering any significant Covid- equipment, e.g. production drill rigs and ever, it is a long-term systematic process related delays, as announced before the rock breakers. that could take years, so it is too early to outbreak. By next winter we will have The design includes a modern integrated conclude that there will be another de- 1,400 workers on-site, therefore, if we operations control room at Salares Norte posit. We are also considering opportuni- encounter further logistical delays, the which will oversee both mining and pro- ties beyond. expected production may change. cessing activities. The process plant is equipped with a high degree of automa- What are Gold Fields’ vision and strat- How does this project compare to tion implemented over the distributed egy in South America in the upcoming other Gold Fields’ assets around the control system and advanced process years? world? control will be implemented once the We are looking to consolidate our posi- This asset has very unique characteristics plant reaches steady production. Site tion around Salares Norte and create a compared to other Gold Fields assets. operational data will also be relayed in pipeline of projects. We are also open to All our gold plants are located in Austra- real-time to a remote monitoring room in other opportunities that may be present lia, West Africa and South Africa, which Santiago where a team of specialists will in the Atacama or other regions. host a very different climate and altitude analyse the data with the aim to enhance In Peru, Gold Fields also is looking to compared to Chile and we are also using operational performance. make feasible new projects that give different technology. The geology is also The project will implement a hybrid mi- continuity or expand our presence in this unique due to its gold and silver content. crogrid to provide electrical energy, with country. ■

44 CHILE MINING 2021 Industry Explorations Global Business Reports CHILE MINING 2021 45 INTERVIEW Global Business Reports Industry Explorations INTERVIEW Marcelo Andrés Álvarez Guzmán

Executive Director Chile and Argentina VP-Country Administrator Chile BARRICK YAMANA GOLD

Could you provide an overview of 2020 production in prehensive and improved structural framework completed in Could you provide an overview of 2020 production at El are at unprecedented levels, yet stimulus spending is likely to your Chilean mines amid the pandemic and indicate your 2020. Peñón and Minera Florida amid the pandemic and indicate persist. The US$1.9 trillion stimulus package recently passed in guidance for 2021 for your projects? your guidance for 2021? the US is a good example of this. At the same time, as the pan- In 2020, results for Zaldívar (jointly owned by Antofagasta and Can you elaborate on Barrick’s growth strategy and in- Yamana's operations in Chile were able to continue operating demic subsides, pent-up demand for everything from cars and Barrick, being operated by Antofagasta) were 106 million lb vestment plan in Chile in the upcoming years? under COVID-19 protocols. El Peñón produced 216,749 gold other luxury items to travel to simply enjoying an evening out of attributable production of our share at the cost of sales of In the short-term, we have two exciting infrastructure pro- equivalent ounces in 2020, comprised of 161,000 oz of gold and again will drive an inflationary cycle in what is almost certain to 2.46 US$/lb and 2.25 US$/lb of all-in sustaining costs. For jects. We are working to link Veladero in Argentina to the 4,917,000 oz of silver, while Minera Florida produced 90,000 oz remain a low-interest-rate environment. Interest rates are likely 2021 the outlook is 90 to 110 million lb of attributable produc- power grid in Chile, which was temporarily delayed by the of gold. to remain low because, at current levels, worldwide debt can- tion at the cost of sales of 2.30 – 2.50 US$/lb and 1.90 – 2.10 pandemic but now resumed and all required permits for the For 2021, we are forecasting gold equivalent production of not support higher rates; the interest payments on such large US$/lb of all-in sustaining costs. project have been granted. We expect completion of the 215,000 – 229,000 oz at El Peñón, including gold production debt levels at increased rates would simply be too high. Hence, Following the completion of mining through a higher-grade power transmission project by the end of 2021. Veladero and of 155,000 – 165,000 oz and silver production of 4,365,000 – while we may see the price of gold fluctuate near term, as has zone for the last two years, we expect grades to decline in Pascua-Lama’s joint investment in the project amounts to 4,635,000 oz. Minera Florida is expected to produce 84,000 – occurred in early 2021, we believe the underlying fundamentals 2021. Major maintenance is scheduled for Q2 of 2021. around U$41 million. 90,000 oz of gold. support a higher gold price longer term. Upon completion, the power transmission line will allow Ve- Demand for copper is also expected to surge in the coming de- What is your strategy to reassess the potential of Pascua ladero to convert to grid power exported from Chile and What techniques are you relying on to minimize fresh water cade as the green transition gains momentum. Yamana is well- Lama? cease operating the current high-cost diesel generation pow- consumption and source power from renewable sources in positioned to benefit as it holds a majority stake (56.25%) in Last year, we prioritized the resolution of several legacy is- er plant. A power purchase price agreement was executed your operations? one of the lowest capital intensity copper projects in the world: sues. This included drawing a line under a legal process re- during Q4 of 2019 to supply power from renewable energy All of our wholly-owned operations, including El Peñón, are the MARA project. Located in Catamarca Province, Argentina, lated to the Chilean side of the Pascua-Lama project that that will significantly reduce Veladero’s carbon footprint. This zero process water discharge facilities. Yamana also announced MARA has proven and probable copper mineral reserves of 11.8 started in 2013. The Chilean Environmental Court found that is expected to save 32 million litres of fuel per year and re- a climate action strategy in early 2021, which incorporates two billion pounds and proven and probable gold mineral reserves no irreparable environmental damage had been caused, but duce CO2 emissions by 83,000 mt/y upon commissioning. high-level targets: a science-based 2°Celsius scenario compared of 7.4 million oz on a 100% basis. We are continuing to advance that Pascua should transition to closure, a ruling that Barrick Secondly, the Chloride Leach Project for the Zaldívar mine, to pre-industrial levels and an aspirational net-zero 2050 target. the project with the Feasibility Study and Environmental and So- accepted. with a capital cost of US$189 million, contemplates the Our work in 2021 will identify the greenhouse gas (GHG) emis- cial Impact Assessment expected to complete in 2022. While Pascua-Lama remains an important project and a unique gold construction of a chloride dosing system, an upgrade of the sions baseline and establish the abatement pathway to achieve MARA is not located in Chile, it underscores the breadth of our deposit, and work is underway to re-evaluate its potential. solvent extraction plant, and the construction of additional the 2°Celsius and net-zero 2050 targets. portfolio in Latin America and represents a significant value that washing ponds. Upon commissioning in the first half of 2022, Our operations made progress in optimizing power require- will ultimately benefit our stakeholders everywhere we operate. How are you allocating your US$8 billion exploration bud- the project is expected to increase copper recoveries by ments in the production process. Several projects are underway, get? more than 10% by adding chlorides to the leach solution and such as optimizations in the grinding system at El Peñón and op- Can you elaborate on Yamana's growth strategy and invest- El Indio Belt has been a prolific generator of multiple world- with further potential upside in recoveries possible depend- timization of the ventilation system of the underground mine. As ment plan in Chile in the upcoming years? class discoveries. The strategy is to build a critical mass of ing on the type of ore being processed. This process is based for renewable energy, our focus is on entering contracts with pro- Chile has long been recognized as a stable jurisdiction for mi- smaller deposits to create a mining complex capable of meet- on a proprietary technology called CuproChlor® that was de- ducers who source their power from largely renewable sources. ning with clear and well-established rules. We currently have ing Barrick’s criteria. Extensions of the belt are underexplored veloped by Antofagasta at its Michilla operation, which had two operating mines in the country and a significant generative and likely to have a different style of mineralization requiring similar ore types. Once completed, the project is expected What is your view on gold fundamentals and its key driv- exploration campaign. We have built strong relationships with different search criteria, which is being investigated. to increase production at Zaldívar by approximately 10 - 15 ers? governments at all levels in Chile as well as our community stake- The Alturas – Del Carmen deposit spreads across the Chile thousand mt/y. Many of the factors that positively impacted gold in 2020 were holders underpinned by mutual trust and respect. We are contin- and Argentine border and has a resource of over 8 million This past year was marked by the establishment of a new ex- in place before the onset of the global pandemic: geopolitical ually working to grow our business, both organically or through ounces of gold mineable through a heap leach process. It re- ploration and business team for the region. We are confident uncertainty, socioeconomic imbalances, global trade tensions, acquisitions. If there is an opportunity to acquire a property in mains a greenfield with an optionality that holds the potential in our significant organic growth potential, and greenfield ex- low real interest rates, and elevated levels of government debt. Chile, expand an existing operation, or advance an exploration to advance it to a Tier1 or Tier2 asset. ploration teams are hunting for the next world-class discovery These issues remain, and some, notably government debt, were property to development that makes sense for our business, we At Alturas-Del Carmen, drilling has started with the objec- across our global holdings, as well as scouting for emerging exacerbated by the pandemic as governments around the world will not hesitate. We have operated successfully and responsibly tive of testing shallow, high-grade mineralization that would new targets and projects where the full potential to yield a added double-digit trillions in stimulus spending to combat eco- in Chile for nearly 15 years, and we look forward to operating impact the economics of the project, following up on a com- discovery has not yet been realized. ■ nomic disruption wrought by the pandemic. Debt-to-GDP levels here for many more years to come. ■

46 CHILE MINING 2021 Industry Explorations Global Business Reports CHILE MINING 2021 47 EDITORIAL Global Business Reports Industry Explorations EDITORIAL

Demand of Lithium in Electric Vehicles Lithium (LCE kt.) then pump the mineral-rich brine to the surface. The liquid then evaporates in Source: Cochilco huge pools, raising the concentration of 1,416 lithium from 1% to 6%. Other Even though the process is relatively PHEV cheap and effective, it is problematic 1,209 BEV because it sparks conflict with indig- UNLEASHING CHILE'S POTENTIAL enous communities, especially the 1,011 farmers and the government, over the allocation of water in one of the driest CAGR: 27% 828 regions on the planet, since the process can use up to approximately 500,000 671 Covid-19 gallons of water per tonne of lithium, Impact 540 according to the Institute for Energy Re- search (IER). There is also potential for 394 air contamination and for the leakage Some 1500 km north of Santiago lies ket is expected to grow at a compound 13,500 mt/y to 30,000 mt/y by 2023," 303 of toxic chemicals from the evaporation 233 Atacama, the driest desert in the world annual growth rate of 22% between he added. 176 pools into the water supply. and the home to 80% of Chile's lithium 2019 and 2026. As a result, demand for SQM is set to account for 73% and 74% 102 Lithium operators are therefore invest- 37 58 85 75 reserves. Chile mainly produces lithium lithium is projected to increase from of the increase in Chile's lithium carbon- ing in new more sustainable technolo- carbonate, followed by lithium hydrox- 310-315,000 mt/y to 900,000-1 million ate and lithium hydroxide production gies of lithium brine extraction and ide and lithium chloride. Lithium car- mt/y by 2025, according to SQM. capacity, respectively by 2028. 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 setting strict targets to minimize their bonate holds the highest commercial "The lithium market is poised to experi- Meanwhile, Albemarle started the La environmental impact. Illanes of SQM transaction value and can be produced ence growth in the foreseeable future, Negra expansion project, notwithstand- been subject to criticism as it does not the Chilean Ministry of Mining and the explained: "Our ambitious goal is to re- by either hard-rock mining extraction, and we expect it to oscillate around ing the 15% year-on-year decrease in invite private investment or newcomers metal is to witness rapid growth in de- duce our water consumption by 40% by the technique primarily used in Austra- US$10,000 per tonne," explained Mar- its sales for 2020. The North-American into the industry. "Chile was the leading mand. Therefore, exploration is pivotal 2030 and 65% by 2040. In the caliche lia, or by extraction from bine. In Chile, celo Awad, executive director of TSXV- company's US$300 million expansions producer of lithium and now is number to take advantage of the upcoming ore operations, we will rely on the use Argentina and Bolivia, also known as listed Wealth Minerals, a junior mineral in Chile are being carried out in waves, two, behind Australia," highlighted El- lithium market dynamics. If the regu- of seawater. SQM will also reduce brine the South American 'lithium triangle', resource exploration company with in- and will result in an increase in Albe- len Lenny-Pessagno, country manager lation surrounding it is addressed in extraction by 50% by 2030 in the Salar lithium is mined through extraction terests in Chile. "The key drivers of this marle's lithium carbonate capacity by of US-based Albemarle in Chile. a favourable manner to private inves- de Atacama, which will be a challenge from bine, which is easier and more are the expansion of the global electric 42,700 mt/y at a low cost. The lack of attractiveness of its legisla- tors under the upcoming constitutional as we plan to quadruple our lithium pro- cost-effective. vehicles fleet, and the corresponding tion pushed Chile into second place in changes, the industry could attract bil- duc tion." There are two types of salars in South forecasted increase in lithium-ion bat- 2017. The only way lithium is mined at lions of dollars in investment that could The lithium industry in Chile shares the America: Andean and pre-Andean, the tery production." Exploration: regulatory bottlenecks the moment in Chile is if a private com- facilitate Chile's rise as the top lithium same challenges as copper and gold latter holds a higher concentration of By 2023, Chilean lithium production pany partners with the State through producer in the world, especially given regarding access to water, communi- lithium. Chile is home to multiple pre- will more than double, from 96,000 mt The two main junior actors exploring the Chilean Economic Development the copper giant's history and stability ties' interests and trying to strike a bal- Andean salars, namely Atacama, Punta to 230,000 mt of lithium carbonate, ac- for lithium in Chile are Vancouver-based Agency (CORFO), by obtaining a spe- in mining-related activities. ance between ensuring sustainable yet Negra, Pedernales and Maricunga. cording to Reuters. At the 11th Lithium Wealth Minerals and Calgary-based cial permit known as CEOL. This uncer- "In 2019, they announced they would profitable operations. However, the However, the Atacama Salar is the only Supply & Markets 2019 conference, Lithium Chile, the latter being the larg- tainty regarding further exploitation of launch a change in the regulation soon, industry's unique challenge lies in the one hosting significant operations, led then Minister of Mining Baldo Prokurica est landholder of lithium salars outside Chile's lithium wealth stems from the allowing private actors in lithium de- lack of clear operational rulebooks. The by Chile's two lone producers, Santia- announced an investment pipeline for of the Chilean government. Augusto Pinochet administration who velopment. The law has been drafted, guidelines of operating in Chile's pre- go-based Sociedad Quimica y Minera lithium projects valued at more than “Lithium Chile currently has 13 proper- declared lithium to be a 'strategic re- however, it is yet to be passed. We are Andean salars should be revised from de Chile (SQM) and Albemarle. US$1.8 billion. The upcoming projects ties in 11 Salars and one Laguna com- source' in 1976 due to its use in nuclear optimistic that under Minister Jobet's an economic and environmental per- Even though the lithium industry is include Albemarle’s US$300 million ex- plex, which totals 71,900 acres,” com- fission. No mining concessions were leadership, given his background in spective to set the standards for future smaller compared to copper or gold, its pansion of La Negra plant phase 3, the mented Steve Cochrane, president and granted for exploitation except those energy, we will see more progress re- development. dynamics are exciting in the near future US$527 million Blanco project and SQM CEO of Lithium Chile. “We are situated already in place prior to this declara- garding this crucial policy change," The Chilean government launched mul- as it is to witness rapid growth as a re- expansion initiatives. in the world’s highest-grade lithium tion, i.e. those of CORFO. elaborated Awad of Wealth Minerals. tiple initiatives, showing its awareness sult of the projected sharp increase in Gerardo Illanes, chief financial officer district, where over 50% of the world’s "Lithium could be addressed under the of the industry's challenges and poten- the demand in the upcoming years. The of SQM, explained the company's up- known lithium reserves are located. new constitution, and private actors tial. For example, the Ministry of Mining metal's high density and excellent con- coming US$400 million investment plan Lithium is the energy of the future, and could be permanently prevented from Environmental concerns: water and the Nuclear Energy Commission ducting properties make it the number to expand their production capacity Chile is the Saudi Arabia for lithium.” exploiting it if the constitution enhances (CCHEN) are working on documents to one choice in battery production for of lithium carbonate, which currently Both Wealth Minerals and Lithium Chile state control of natural resources," com- Lithium production through brine present their case for lithium commer- electric vehicles (EVs). Demand for the stands at 70,000 mt/y to 120,000 mt/y are advancing their exploration efforts, mented Juan Carlos Guajardo, founder extraction requires a considerable cialization quotas. The Ministry is also white metal did not grow as expected by the end of 2021. "By 2023, we will however, even after discovery they can- and executive director of Plusmining, a amount of water, which South Ameri- working alongside the Inter-American for 2020 as a result of the global down- expand production in Chile to 180,000 not exploit their assets unless regulation local mining intelligence company. can countries have only recently started Development Bank (IDB), preparing a turn. However, according to a research mt/y. On the other hand, lithium hy- regarding lithium sees radical changes. The country is home to 52% of the measuring. To extract lithium, mining study for sustainable lithium brine ex- study by Facts and Factors, the EV mar- droxide production will increase from Chile's policy regarding lithium has global lithium reserves, according to companies must drill in the salt flats, ploitation in the lithium triangle. ■

48 CHILE MINING 2021 Industry Explorations Global Business Reports CHILE MINING 2021 49 INTERVIEW Global Business Reports Industry Explorations INTERVIEW

Can you give us an update of your as- while, with regards to the Ollague asset, Marcelo sets in Chile, namely your asset in Ata- we have reached an agreement with the Gerardo We are investing cama Salar? surrounding communities and are await- approximately US$400 Wealth Minerals’ focus has been towards ing signatures to move forward. We have Illanes Awad the acquisition and development of its witnessed delays across every step of the million to expand our world-class lithium assets in Chile. We are project. production capacity of witnessing slow progress with our Ataca- lithium carbonate in Chile, ma Salar project in northern Chile as we Can you elaborate on your relationship are waiting for the government to launch a which currently stands at with Uranium One? CFO regulatory framework for lithium. The cur- The traditional solar evaporation method 70,000 mt/y, to 120,000 mt/y SQM Executive Director rent framework classifies lithium as a stra- used in Chile is outdated and inefficient by the end of 2021. WEALTH MINERALS tegic metal, not allowing concessions, so due to the dry nature of the region, there- only the state or state-owned companies fore we sought a technology partner can develop the mineral at the moment. in 2019. Uranium One emerged as the In 2019, they announced they would most reliable choice since their sorption launch a change in the regulation soon, technology extracts lithium by relying on allowing private actors in lithium devel- the reinjection of water, so the total water How have SQM’s operations in Chile mt/y within the next two to three years. this partnership stronger and more ben- opment. We are optimistic that under consumption is just 10% of the amount developed over the last years? Finally, the last initiative includes devel- eficial to CORFO, the local communi- Minister Jobet’s leadership, given his used by the Evaporation Ponds. Despite the pandemic, we were able to oping our relationship with surrounding ties, the country and our shareholders. background in energy, we will see more continue production at all of our plants communities by ensuring an ongoing progress regarding this crucial policy What is the company’s strategy mov- at a cost equal to or lower than we had dialogue with them. What are some of the critical drivers change. ing forward? budgeted before the pandemic started. of the lithium market globally? Wealth Minerals does not have the finan- However, our operations’ logistics and What investments is SQM making to In the recent past, the main drivers for What is the potential for the Atacama cial capabilities to construct the plant and administrative operations were im- increase its production capacity of the demand growth were traditional and Ollague assets? develop the asset fully, so we are seeking pacted. We had to implement a series lithium carbonate and lithium hydrox- applications, such as aluminium alloys, The Salar de Atacama is home to more a partner to raise the required capital. We of protocols to ensure the safety of our ide? ceramics, lubricants and many others, than 15% of the world’s known lithium also recently acquired a majority stake in workers, contractors and local commu- We are investing approximately US$400 along with batteries for portable elec- reserves. We are certain that the geol- two copper concessions in Chile, allowing nities. million to expand our production ca- tronic devices and some for electric ve- ogy of the project is exceptional. Mean- us to diversify our portfolio. ■ During all of this, we have been working pacity of lithium carbonate in Chile, hicles (EVs). These days, demand for EVs on expanding our lithium production which currently stands at 70,000 mt/y, has grown tremendously as most auto- capacity while implementing our ambi- to 120,000 mt/y by the end of 2021. makers are switching to this new techno- tious sustainability plan. By 2023, we will expand production in logy, resulting in more alternatives for Chile to 180,000 mt/y. On the other end-users, with better performance and Steve Can you elaborate on Lithium Chile’s Another property of focus is Salar de He- Can you elaborate on the sustainabil- hand, lithium hydroxide production will at a lower cost, all while taking care of properties and flagship projects? lados, of which Laguna Blanca is an ex- ity plan phases? increase from 13,500 mt/y to 30,000 the environment. We see demand grow- Lithium Chile currently has 13 properties tension. Near-surface brine samples are The plan focuses on four initiatives. We mt/y by 2023. ing at a high pace over the following Cochrane in 11 Salars and one Laguna complex, assaying up to 1280 mg/l lithium – com- plan to reduce our continental water years, resulting in a threefold increase in which totals 71,900 acres. Salar de Coi- parable to what SQM and Albemarle see consumption, as we operate in the dri- Do you see challenges for Chile as a lithium demand before doubling again pasa is one of our flagship properties and at their production plants. est place on earth, so water scarcity is lithium mining destination amid the in the next five years. is directly accessible from the highway. It Interestingly, Laguna Blanca’s cesium pivotal to the region. Our goal is to re- regulatory uncertainty surrounding is the second-largest Salar in the world, value is now more valuable than gold on duce our consumption by 40% by 2030 the metal? Where does SQM see the highest President and CEO and the property straddles the Bolivian a gram basis. The reason for the increase and 65% by 2040. One of the most rel- Chile has a strong mining history. The growth potential? LITHIUM CHILE border. Lithium Chile controls approxi- in cesium value is that it plays a very in- evant initiatives we are working on to regulatory framework has always been The obvious answer to this question is mately 70% on the Chilean side of this tricate role in 5G mobile networks. Initial achieve this is developing a seawater clear, and that is why so many compa- lithium, as the market is growing at a very prospect, with the Bolivians holding the sample assays at Laguna Blanca define an pipeline. nies have invested so much over the high pace, based on solid fundamentals, rest; both properties are under explora- approximate 4 km square area enriched Even though SQM is the lithium player past several decades to develop the and this high growth is expected to con- tion. The Bolivian exploration program in cesium ranging from 75 - 690 grams with the lowest carbon footprint, the mining industry. On our end, we are tinue for many years in the future. But yielded encouraging results, which at- per ton from surface sediment sampling. second initiative addresses carbon making considerable investments in de- the potassium nitrate business is ex- tracted China’s Xinjiang TBEA Group We will further explore the area of cesium emissions. We are aiming for carbon veloping not just our lithium operations pected to continue growing at a healthy who committed to invest up to US$1.3 enriched salt deposits identified by the neutrality in our production of lithium, but also our iodine and nitrates opera- 5% per year, and SQM is very well po- billion for 49% of the Bolivian side of the late 2018 reconnaissance geochemical iodine and potassium chloride by 2030 tions in Chile. Rules are enforced, as sitioned to capture part of this growth. Salar de Coipasa. If you apply the same sampling program to establish the grade and for all our products by 2040. Third- they should be, to make sure mining ac- The iodine business, on the other hand, metrics, the Chilean side of the Salar de distribution and tonnage potential. La- ly, SQM will reduce brine extraction by tivities have minimal to no impact on the continues to be a very attractive busi- Coipasa could be valued up to US$500 guna Blanca also has lithium values 50% by 2030 in the Salar de Atacama, environment and local communities. We ness as we are the lowest-cost producer million. Preliminary exploration shows ranging from 1035 - 1230 mg/l lithium, which will be a challenge as we plan to have a great partnership with CORFO in an attractive market. Finally, the solar near-surface samples assaying up to and potassium values ranging between quadruple our lithium production. Our to operate the Salar de Atacama in the salts industry has a huge potential as the 1410 mg/l lithium. We already have com- 13500 - 15200 mg/l potassium. Laguna production of lithium was 48,000 mt/y, most sustainable and efficient manner, world transitions towards greener ways munity approval, and drilling is anticipat- Blanca can be set up as a cesium mine, which we expect to increase to 180,000 and we are working very hard to make to produce and store energy. ■ ed for Q2 2021. with lithium as a byproduct. ■

50 CHILE MINING 2021 Industry Explorations Global Business Reports CHILE MINING 2021 51 ENGINEERING AND CONSTRUCTION

“I do not think we are experiencing the same mining boom we had 8-10 years ago. This said, we see more dynamism in lithium, rare earths and iron ore. It will take 5-7 years to ramp up these new projects, but there is an opportunity there because all these projects require a lot of infrastructure, from transmission lines to ports.”

- Sandro Tavonatti, CEO, Sigdo Koppers Ingeniería y Construcción (SKIC)

GBR • Industry Explorations • CHILE MINING 2021

Image courtesy of Echeverría Izquierdo Montajes Industriales EDITORIAL Global Business Reports Industry Explorations INTERVIEW

Energy Use in Processes

Engineering and Source: Alta Ley Corporation, Cochilco Consultants Fuels Electricity

Energy (PJ) How has SRK evolved since we last spoke in 2017? 80 SRK in Chile has grown and diversified since its establishment in Chile in 1994 from providing support on just geotechnical and environmental services for local mines,

70 to include most mining disciplines today as SRK covers a project from exploration to mine closure. During the last years, we provided integrated services to the mi- THE JOURNEY TO GREEN MINING: ning industry around the world. Our competitive advantage lies in our ability to 60 WATER AND ENERGY work in challenging conditions, whether extreme weather or remote locations. We leverage the skill and expertise of our engineers and consultants globally to ensure 50 the best possible service for our clients.

40 Chile is currently experiencing its worst drought in six de- Which demand trend is SRK witnessing at the moment in Chile? cades. The shortage of fresh water in its arid areas, such as the Esteban Most of the projects we are currently studying are focused on mine closure, inte- 30 north, where the majority of copper production takes places, grating rock and soil mechanics, hydrogeology, tailings, mining and environmental has grave economic, social and environmental consequences. disciplines. We expect this trend to continue. As the Chilean industry continues 20 Hormazabal Water is a critical component in mining operations, used in towards sustainable mining, we expect to see our mine closure and environmental hydrometallurgical processes, concentrators, smelter and re- services grow further. finery, as well as other processes. 10 Evaluating the real economic potential of massive low-grade deposits is challeng- According to a Mckinsey report, the industry consumes ing, especially early in an underground mine's development. Our global experi- 0 enough water annually to provide for 75% of the Chilean pop- Mine Concentration Smelting Refining LX / SX / EO Services ence gives expert, integrated solutions on every phase of a mining project. We ulation, and net freshwater consumption by copper mining is had been involved from scoping studies and conceptual engineering stages to between 0.5 and 0.7 cubic meters of freshwater per ton of ore processed, with water held in tailings dams and its eventual General Manager detailed engineering of world-class underground projects and operations. Main evaporation and leakage one of the main reasons for this con- SRK CONSULTING CHILE examples of this are Chuquicamata underground mine, Los Bronces UG project, sumption, reported the Alta Ley Corporation. Resolution Project (USA) and Oyu Tolgoi (MN). As a result of the ongoing water scarcity crisis and the indus- SRK is a pioneer in applying the geotechnical risk approach to underground mines, try's high consumption, the Chilean Congress is discussing formerly applied to open-pit mines. A detailed review can be found in the ar- amendments to the Water Code to limit freshwater withdraw- ticle submitted to the past MassMin conference, defining the geotechnical risk als. The mining industry is under pressure to decrease its approach for deeps caving mines. The risk model provides management with the freshwater usage and must seek other solutions such as de- range of consequences of potential failures of mine pillars and other areas and salination, reuse and seawater flotation. how to quantify it; this is an example of an innovative solution SRK brings to un- "A primary concern is water scarcity. The country is at a turning derground mines. point in matters of the environment, especially given the draft- ing of the national constitution. Projects have to be mindful How is the industry paying attention to climate change and ensuring environ- of these risks and adapt their operations accordingly," com- mentally sustainable projects? mented Iván Rayo, general manager of JRI Ingeniería, a Santi- Climate change is a concern the industry is taking into account. It is becoming a ago-based engineering company working on Codelco's Rajo legal requirement to consider extreme hydrological scenarios in studies for new Inca. "The government is drafting policies regarding water to projects. SRK, therefore, supports mining companies by incorporating time-series consider giving water rights a temporary character, restricting As the Chilean industry data analysis and return period up to 10.000 years in the design and solutions for some uses, which will affect mining operators if implemented." permitting, engineering design, environmental and mine closure plans. Miners using continental water sources will be constantly continues towards Each project has its unique challenges and environmental considerations. None- threatened, as the recent case of Anglo's Los Bronces has sustainable mining, we theless, an issue we see multiple companies facing is that of water supply and shown. According to the production report, Los Bronces' cop- expect to see our mine scarcity, which also must be addressed under the environmental permit and the per output decreased by 28% in Q4 of 2019, due to a 44% closure and environmental social aspect of a project that is increasingly a concern. Companies must strike a decline in the plant's processing capacity as a result of lack balance between the project activity and the surrounding community by ensuring of water. It eventually came to an agreement with Codelco to services grow further. their satisfaction. use water from the tailings dams of the adjacent Andina mine. Chilean miners are already concerned with declining ore qual- Where would you like to see SRK in the next 12 months? ity. Now they must consider how to process a larger amount We are experts in technical mining services, bringing value to any project we help of ore while minimizing their water and energy usage, as the develop. Therefore, we will continue consolidating our presence nationally. Over copper production matrix in Chile will change in the upcoming the next year, our goal is to expand our presence in the region, namely in Colom- years and rely on the treatment of sulphide minerals which is bia, Ecuador and Mexico. We also have some projects internationally in Uzbeki- an even more water-intensive process, according to Cochilco. stan, Kirgizstan, Kazakhstan, Russia, US and Mongolia, which we wish to develop However, another challenge is transporting water from the further. SRK has had a great relationship with the majors and mid-tier mining com- coast to high altitudes where most mines are found. panies in Chile and will continue to provide world-class services. ■

54 CHILE MINING 2021 Industry Explorations Global Business Reports CHILE MINING 2021 55 INTERVIEW Global Business Reports Industry Explorations EDITORIAL

Water Stress in Chile, 2020 Are Source: Aqueduct Water Risk Atlas; Cochilco; Water Atlas; MineSpans by McKinsey Share of Sources of water used copper in Chilean mining and production, exposed to climate risk, desalination % 2017, % NORTH

How does Wood’s growth strategy in Chile differ from Peru? plants the Arid Our clientele in Chile is relatively mature with operations for decades, such as Seawater 23 Resilient Codelco, Antofagasta Plc, BHP and Anglo American. Peru is still a developing mar- ket compared to Chile that we decided to best approach through mergers and answer? acquisitions. Chile’s environment differs significantly from Peru, as mine sites are Extremely high built in more remote locations with high altitudes. Chile opened its first desalination plant 72 CENTRAL Surface We are working on the detail design for Codelco’s Chuquicamata at the moment in 2003, in Antofagasta for human use. water 30 Exposed High under our underground mining division based in Santiago. We are seeing more The leading mining operator in desali- potential for underground mining growth in Chile at the moment compared to Peru. nation in Chile is by far BHP with its Es- High 76% of water used Wood also works in Australia, North America and Africa. Our focus in Australia is moderate condida Water Supply (EWS) project, Aquifer 12 Exposed in mining Dave predominantly lithium, as we are working with Albemarle. On the other hand, in the largest desalination plant in the operations Africa we are working on copper, gold and platinum. Americas. By 2028, there will be a total is exposed to climate risks of 27 desalination plants in Chile and, by Lawson Low SOUTH What trends are you witnessing for your services in the market this year? 2031, 47% of the water used in mining Aquifer Highly 34 at risk We see an increase in mine development in Chile, as many clients are demand- will be extracted from the sea, accord- 28 exposed ing feasibility studies and pre-feasibility studies. As Wood, we are developing the ing to Cochilco. The Antofagasta region ‘Mine 2050’ concept for our clients. The mine of the future would rely on sophis- will have the highest number of desalina- ticated technology using artificial intelligence, robotics and automation in mining tion plants, supplying 66% of the copper processes to facilitate a fully automated plant and operation. Covid-19 has pushed industry's water consumption, followed President Mining and Minerals the industry further towards the digitalization of processes overall. Mines are now by regions of the Atacama, Tarapacá and WOOD looking to operate from control rooms in remote locations. However, some of our Coquimbo. The 15 desalination plant clients prefer task forces on the ground more than remote operations, mainly due to projects include INCO's complementary ing an aroused interest in their pipeline "Every drilling rig uses a significant the risks surrounding complete remote operations, such as cybersecurity attacks. infrastructure project by Antofagasta services as a result of the industry's amount of water a day. The use of a mud Plc, being also executed by Bechtel. This move towards desalination solutions. plant addresses this issue as it ensures Can you elaborate on Wood’s innovation in sustainable solutions for water expansion project obtained Chile's first "We also see a trend towards sharing additives are not polluting the soil and and tailings management? certified green loan for its construction, infrastructure among mining compa- allows for water recovery, decreasing In Santiago, our Resilient Environments business is developing creative solutions for due to its focus on water efficiency. nies. For example, in the northern dis- water use by 30%." 61 >> water and tailings management in the industry. Most mines in Chile use seawater to Another upcoming desalination project, trict of Codelco, there are three mines become more sustainable, and we are also seeing wind and solar power solutions expected to be the second-largest in the operating in the same area, and all three playing major roles in the provision of electricity to the mining industry. Wood pro- country, is Codelco's US$1 billion desali- customers have agreed to invest in the vides mining solutions that utilize applied intelligence to enhance operational and nation project to supply Radmiro Tomic, same infrastructure to distribute water environmental sustainability. Chuquicamata and Ministro Hales mines, to all the mines. We believe that this is Water scarcity is an ever- Regarding tailings management, a solution often considered is the use of dry stack in addition to its facilities in Calama. The an excellent long-term and sustainable growing challenge in Chile's tailings as it significantly reduces the environmental footprint. However, the mine’s solution in terms of environmental im- tender for the project was reactivated by mining regions. Every drilling location and size may restrict it from using this method. Also, converting an existing the end of 2020 when Codelco decided pact and cost," he elaborated. We see an increase in mine mine’s tailings management solution to dry tailings would have financial implica- to reformulate the project. A by-product of desalination is brine, rig uses significant amount development in Chile, as tions that would require investigation to ensure feasibility. Some of the equipment Other plants under development in- which is released back into the sea. Ac- of water a day. The use of a needed for dry stack tailings has to increase in size to respond to current market clude Collahuasi's desalination plant, cording to José María Guzmán, country mud plant addresses this many clients are demanding trends. We are working with some equipment manufacturers to address this issue. manager of CDM Smith in Chile, desali- which will have an initial capacity of 525 issue as it ensures additives feasibility studies and pre- l/s, and Teck Resources' QB2, with a ca- nation is part of the solution, another feasibility studies. What potential do you see for the incorporation of green hydrogen energy pacity to treat 1,300 l/s, being executed part is water recycling: "The environ- are not polluting the soil and solutions in the industry? by a leading water treatment EPCM so- mental impact of desalination has been allows for water recovery, Green hydrogen is an area we expect to see immense growth in over the upcoming lutions provider IDE Technologies. a focus for our firm in Chile, and our decreasing water use by 30%. years. Wood’s track record in the technology, production and the use of hydrogen Desalination plants in northern Chile are experience indicates that the impacts is decades-long, with a number of successful hydrogen projects delivered for cli- built along the coast and water is trans- of desalination can be controlled and ents around the world. ported using a complex pipeline sys- mitigated. For example, the correct dis- tem that requires non-corrosive piping. charge of salt using diffusers increases - Tomás Buttazzoni, Where is Wood’s focus in the upcoming years to facilitate growth? Jorge Donoso, the general manager of dilution rates and reduces the threat to General Manager, We successfully completed the Spence project for BHP, where our teams were hired marine biodiversity." Techint Engineering and Construction Technosteel as the integration contractors for the last four years. In the near future, we hope to who is working on the Collahuasi plant, When it comes to minimizing water use leverage our expertise and offer the same service to our clients, which we think will explained that the company is witness- in drilling, Tomás Buttazzoni, general be well received. ■ manager of Technosteel highlighted:

56 CHILE MINING 2021 Industry Explorations Global Business Reports CHILE MINING 2021 57 FACTSHEET Global Business Reports Industry Explorations INTERVIEW

Iquique Projected Desalination Plants Iván AND MINING PROJECTS OPERATIONAL IN 2029 Rayo

Alta Ley Corpotation (2019), Open Mining, Sernageomin, ODEPA Tocopilla

Calama General Manager JRI INGENIERÍA

Antofagasta ANTOFAGASTA

In commemoration of the company’s 39th anniversary, automation from the onset; we are permanently liaising with what have been the most significant milestones for JRI? equipment providers to integrate technology directly. Increas- JRI is a company that has never stopped growing and expand- ing the number of tasks that can be controlled from the opera- ing its portfolio of service offerings. This year we are expand- tion control room reduces risk and increases efficiency. ing our research center, which was created in 2008, by adding Taltal a new building and strengthening our focus on highly technical How important is sustainable management of mining pro- studies. JRI is home to more than 400 engineering profession- cesses? als and we are investing during a period of economic down- Chile is facing important environmental challenges due to turn, which is testament to the company’s growth-led mind-set climate change. A primary concern is water scarcity amid the and determination. ongoing drought. The country is at a turning point in matters Since 2017, the Chilean market for engineering services has of environment, especially given the drafting of the national been highly competitive because mining activity in the coun- constitution. Projects have to be mindful of these risks and Copiapó try saw a slight decrease. With the pandemic, the market has adapt their operations accordingly. The government is draft- ATACAMA tightened even further. We expect the renewal of mining op- ing policies regarding water to consider giving water rights a erations in 2021 to increase demand for mining services. temporary character, restricting some uses, which will affect mining operators if implemented. What is JRI’s current portfolio of projects? Since 2019, JRI has been a partner of Rajo Inca, one of Codel- How would you characterize the health of the Chilean mi- Vallenar co’s landmark copper projects. JRI designed the conceptual ning industry? Lithium - Copper Triangle and basic engineering of the mine and is currently involved in The Chilean mining industry is facing challenges, many of operational engineering as well. Due to its age, the mine has which are due to the depth of mines. The depth of under- a very challenging geotechnical profile. Our work has allowed ground mines creates a risk of geotechnical failure. Climate Desilination Plants the mine to increase its capacity and ensure mining conditions change has increased precipitation in Chile’s mountainous re- Operational are up to modern standards. JRI is in charge of all the project's gions which complicates the water management processes at La Serena engineering needs, which has an investment value of $US1.38 mining sites; water drainage is also an issue for deep mines. New desalination plants billion. Other challenges include electro mobility and ventilation. Fi- nally, the mine’s transport systems are a central concern among How do you incorporate technological advancements and many operators, especially when vertical extraction processes Copper Mining software in your operations? are necessary. Mines in Chile are getting deeper which is ex- New mining projects Ovalle In 2019, the company incorporated Building Information acerbating the need for sophisticated engineering solutions. Modelling (BIM) in its operations. This system represents the Copper mining digitalization of mining, where dimensions are calculated and Where do you see the highest growth potential for JRI? COQUIMBO mapped on a monitor. This technology was ground breaking Our plan is to develop detailed engineering solutions for Drought by municipality for mining, an industry that until recently had not been able to structural projects like Rajo Inca. Participating throughout the Illapel apply such processes due to the complexity of its engineering. different stages of the mine life is also a priority. We want to Serious drought JRI decided to utilize BIM in all its projects to better integrate reinforce our focus on concentrate plants, underground engi- Moderate drought the engineering, construction and operation stages. This way, neering, tailings and pipelines. In terms of expansion abroad, Mild drought we offer clients a long-term tool for their operations. JRI is waiting for the right time. Although we have the capacity JRI is specialized in underground mining design. This focus has to serve Peruvian engineering needs, the mining sector has No drought observed been of tremendous importance at a national level; we are in fluctuated downward due to the pandemic. When investment charge of the most important Chilean underground mining op- in Peruvian mining activity resumes, we will be the first to ex- Valparaíso Santiago erations. JRI’s underground mining engineering incorporates tend our engineering services to the country. ■

58 CHILE MINING 2021 Industry Explorations Global Business Reports CHILE MINING 2021 59 INTERVIEW Global Business Reports Industry Explorations INTERVIEW

er a 30,000 mt/d copper concentrator Luis Claudio plant and related infrastructure as well What have been Arcadis’ greatest Arcadis is involved in more than 70% need for efficiency and social responsi- as significant carbon emission-reducing Soruco milestones in Chile? of all significant tailings projects in bility. The Chilean government will soon Lesch benefits. We are also working with BHP One of our key milestones is our inte- Chile. Can you elaborate on tailings’ pass a new Supreme Decree 248 to en- on the commissioning of the Spence gration with Geotechnica Consultants, designs, and which is the most popu- courage the mining industry to move Growth Option project, and we have as we combined the expertise of a glob- lar in Chile? towards more sustainable and digital been awarded a similar contract to pro- General Manager al company with the legacy of a local Regulation in Chile is strict, especially operations. vide commissioning services at Teck’s President South America ARCADIS CHILE company. Through further acquisitions regarding water. Therefore, many of our How would you say the permitting Quebrada Blanca project, where we are we developed our process-focused designs are focused on leveraging the process has improved in Chile? AUSENCO currently providing field engineering capabilities, such as the concentration water in the tailings reservoirs to bring Over the years, institutional legislation services. and hydrometallurgical beneficiation of it back into the operation. We are con- in Chile has become stricter and the minerals. Since Chile is a large producer tinuously evaluating our processes to permitting process has been refined so What set Ausenco’s proposal apart of copper using both of these tech- enhance efficiency and sustainability that it is now an excellent process. Each from the competition for the Man- nologies, it was a great combination to with new technologies. city in the country has certain particu- toverde project? add to our portfolio and we were able lars that need to be adhered to. Thus, We were chosen because of our excel- to deliver services to projects in differ- What demand trends is the company mining companies need an experienced lent track record in delivering similar ent stages, from profile engineering to currently witnessing for its services? team such as Arcadis, as we know what projects and our capital-efficient and EPCM projects. After the commodity prices recovered, the authorities require and can mitigate optimized design. We reduced the Arcadis is differentiated in the water we saw that projects that were delayed risks. However, there are areas in the plant’s overall footprint by relocating management field, but still decided to due to dormant prices had resumed. process that can be improved. the primary crusher, redesigning the incorporate another company, GeoHi- We also saw an increase in demand for One of the challenges is that engineer- stockpile reclaim tunnel and optimiz- drología, to complement our full range our services for projects moving to final ing and construction usually come af- ing grinding and flotation. This reduced of capabilities to deliver various water execution. We are witnessing a trend of ter the EIA study but should be done earthworks excavation and concrete re- management services for both conti- moving towards increasing sustainabil- in parallel as the commitments taken at quirements. nental and seawater. ity and digital innovation, at the early this stage impact profoundly on design stages of the value chain, due to the and execution. ■ Can you elaborate on the challenges of developing mining projects unique to Chile? Water scarcity is an ongoing challenge How has Ausenco grown in Chile in in Chile. The desalination and the trans- Can you give us an overview of CDM at BHP's Minera Escondida – a mega solution but rather part of the solution. the last few years? port of seawater require large amounts José María Smith's role in the mining sector? project which concluded in February CDM Smith addresses water scarcity Ausenco is a global company founded of energy and increases operational JMG: We have been involved at BHP's 2020. by optimizing the mix of water sources in Brisbane, Australia 30 years ago. In costs for projects. Comminution is also Guzmán & Spence mine in northern Chile as the near a site and desalination plays a role. 2008, we entered the South and North an energy-intensive process. The indus- client decided to outsource its water How does CDM Smith help compa- We are convinced that some other tech- American markets through a series of try is moving towards greater incorpo- Rolando engineering processes, and CDM Smith nies mitigate drought-related risks? nologies and solutions can expand and acquisitions, including Pipeline Systems ration of renewable energy sources to has had several roles through the proj- JMG: CDM Smith monitors water avail- improve water sources, so water reuse Incorporated (PSI) and Vector Engineer- address rising energy costs and sustain- ect life and is now assuming an active ability in Chile and planning analysis is of great interest. ing, that allowed us to better position ability issues. Maluendo role during operations. We offer engi- for mining projects to identify water ourselves in the Chilean market. Today, Another challenge is bureaucracy. This neering services that encompass water management schemes that are more Which areas present high business the South American market represents affects how quickly projects are ap- JMG: Chile Country Manager management, remediation, program resource independent. In Chile, due to growth potential for CDM Smith in 45% of the company’s revenue, with proved and permitted. The industry RM: Mining Project Director management and geotechnical ser- the long distances between mines and upcoming years? Chile and Peru being the largest con- and government are aware of this issue, CDM SMITH vices. The company can be involved water bodies, long-term planning that JMG: There is a large potential for busi- tributors. and efforts are being made to stream- throughout the entire mine life provid- is conscious of environmental impact is ness related to mine closures. Environ- In Chile, we provide consulting, design, line the process. ing consulting engineering services that crucial. mental requirements emphasize correct and construction services from mine ensure operations run smoothly and RM: The drought risks that have been procedures during the late phases of a to port, including process plants, tail- How would you characterize the cur- that the operation's legal requirements forecasted challenge engineers to opti- mine cycle, and CDM Smith can play a ings, environment, permitting, asset rent trends in the Chilean mining in- and commitments are upheld. Colla- mize processes even further and lever- role, given its expertise. management & optimization, pipelines dustry? huasi, Minera Escondida, Nueva Union age water-reuse technologies. Utilizing RM: CDM Smith wants to participate in and transportation & logistics. A safety Large-scale operators are expanding, and Cerro Colorado are other mines water from waste processes and tailings the execution phase of mining opera- achievement we are incredibly proud but there are also several promising where CDM Smith has been involved. will allow a long-term sustainable devel- tions. The company's project manage- of is surpassing 6 million person-hours mid-sized projects for which we are de- JMG RM: For CDM, it is important to par- opment of mining projects in Chile. ment expertise makes us an interesting Lost Time Injury (LTI) free across our veloping studies. We believe there is a ticipate in a mine's entire life cycle. Our option to clients, especially concerning projects in Chile. strong potential for these projects to be experience in project management, for Is desalination the primary solution reporting and data tracking. ■ We were recently awarded the EPC developed in the future. Canadian and example, allowed us to participate in to Chile's water scarcity problems? turnkey contract for Mantos Copper’s Australian junior companies are also in- the expansion of the desalination plant JMG: Seawater desalination is not the Mantoverde Development project – a creasingly active in Chile, especially in RM defining moment for us. We will deliv- the gold space. ■

60 CHILE MINING 2021 Industry Explorations Global Business Reports CHILE MINING 2021 61 EDITORIAL Global Business Reports Industry Explorations EDITORIAL

<< 57 Image courtesy of Antofagasta Plc

Water reuse Energy high altitudes to get the ultimate output and incorporated a hybrid solar system Even though desalination plants pres- Over the next decade, the increased to reduce generation costs and emis- ent a long-term solution, it is also a very activity of concentration plants, the pro- sions," explained Varela. costly one. The addition of seawater de- gressive decrease in mineral grades and The Chilean government is also ac- salination plants to large-scale projects an increase in mineral hardness will result tively engaged in promoting the move adds at least US$1 billion to the project's in a significant rise in energy consump- towards renewables. The Ministry of capex, or up to US$3 billion if it is as tion for Chile’s mines, which currently Energy, led by the Bi-Minister of Energy enormous as Escondida, in addition to represents around 8% of the operating and Mining, Juan Carlos Jobet, will pre- Hydrogen power generation high electricity costs to pump the water costs. "The desalination and the trans- pare a National Energy Efficiency Plan. is receiving more attention, to high altitudes. Therefore, another way port of seawater require large amounts "The industry is already switching from but I believe that this will of limiting water usage is through recy- of energy and increase operational costs coal power generation to contracts with cling. for projects," highlighted Claudio Lesch, renewable energy providers, and we ex- only become fruitful in five to "Freeport-McMoRan prioritizes maxi- president of Ausenco in South America, pect that more than 60% of the energy ten years, as managing the mizing our recycled/reused water across an Australia-based multinational EPC used in mining will come from renew- fuel is still quite complex and all our operations. El Abra is no excep- firm working with Mantos Copper, BHP ables by 2023," highlighted Minister very expensive. tion, especially given it is in an arid re- and Teck Resources. "Comminution is Jobet. gion near the Atacama Desert. Our also an energy-intensive process. The in- water use efficiency (water reused/re- dustry is moving towards greater incor- cycled) at El Abra averages around 94% for example, through its subsidiary to increase in size to respond to current poration of renewable energy sources to annually," highlighted Joshua Olmsted, Codelco Tech looking to identify traces market trends," he added. address rising energy costs and sustain- An appetite for hydrogen Freeport's president and chief operating of chemical elements such as germa- Meanwhile, Mathiesen, an international ability issues." officer-Americas. nium, gallium, tungsten, rare earth and group dedicated to the manufacture, Therefore, electricity demand for cop- Under its renewable energy initiative, - Pablo Varela, McKinsey reports that in 2018, water others. marketing and distribution of specialty per mining is forecasted to grow by 34% the Chilean government is also keen Managing Director LATAM, recycling in mineral concentration in Tailings are also crucial in the reduction chemical products, sees great potential over the next decade, from 25 terawatt- on elevating the so-called 'fuel of the Aggreko Chile averaged 85% for high performing of water consumption and reuse, since in supplying chemicals that optimize wa- hours (TWh) in 2020 to 33.4TWh in 2031, future'; green hydrogen. The Australian mines and 75% for most mines. If recy- huge amounts of water are trapped in ter recovery. “Given the unique chemical according to Cochilco. To meet this de- government also announced a National cling rates do not reach 85% at least, tailings, so mining companies are invest- properties of mine tailings and the im- mand, a generation capacity of 1,222 Hydrogen Strategy and mining giants then at least four Escondida-sized plants ing in large-scale filters to recover the portance of its processing, the company MW is needed. As a result, mining com- BHP, Anglo American Fortescue formed will be required by 2028. Antofagasta water and remove the impurities. The im- plans to boost investment in water treat- panies are shifting to cheaper and more the Green Hydrogen Consortium to ac- Plc is already making investments to use purities pose environmental problems to ment,” commented Humberto Pasten, sustainable alternatives. celerate green hydrogen production about 90% sea or recycled water from surrounding inhabitants, especially since mining division manager of Mathiesen. BHP is paying US$840 million to termi- and its application. 2025 onwards, and Teck's QB2 includes there is always a risk of tailings dams col- “We are searching for new chemical nate its 2008 coal-fired energy contract Green hydrogen is the process of sourc- significant mechanisms for water reuse. lapsing due to the broken retaining walls products that are more environmentally with AES Corporation in Escondida and ing hydrogen from renewable power that result in flooding of adjacent land, friendly and improve the recovery of Spence. It will replace it with solar and sources such as solar or wind power. which has occurred in the past in Brazil, copper and other secondary elements.” wind power, which will reduce its energy "The green hydrogen is then com- over the last years and increasing inter- Mexico, Peru and Australia. As Chile advances towards sustainable costs by 20%. Meanwhile, Collahuasi pressed and stored at high pressure to est among companies in using hydrogen Tailings management As a result, mining companies are invest- and green copper mining, it will elevate signed clean power supply contracts generate electricity and power equip- as a source of fuel or batteries that ac- ing in sustainable and durable tailings the tailings transformation sector as with Enel and independent solar power ment, including trucks and cars," ex- cumulate energy to operate,” confirmed Only a small fraction of the large vol- management solutions. For example, tailings management becomes a core producer Sonnedix. It entered into a plained Tomás Cruz, piping business line Alejandro Miranda, general manager umes extracted is the target mineral, Los Andes Copper is using dry tailings focus. “Regulation in Chile is strict, es- long-term power purchasing agreement manager at Fast Pack, piping, spools and of Doosan Bobcat, the leading Korean which is obtained after processing, leav- in its Vizcachitas project. "The project's pecially regarding water, which is a pri- with Sonnedix for the delivery of 150 wear parts provider who is incorporating construction equipment provider. “Doo- ing behind tailings that consist of other footprint will also be reduced as our tail- mary concern when designing tailings GWh per year, which represents about the use of hydrogen in its production san has been working on eliminating die- chemical elements such as reagents and ings will be disposed of as a solid and dams,” highlighted Luis Soruco, general 12% of the mine's power requirements. process. "Five to ten years from now, we sel engines from vehicles to incorporate ground rock with water. The tailings rep- will eliminate the need for a tailings manager of Arcadis in Chile, one of the Gold Fields is relying on a hybrid solution expect to see a surge in the use of green solutions related to electricity. However, resent between 97% and 99% of the ore dam," confirmed director of the com- leading global design, engineering and for its Salares Norte project, positioned hydrogen in mining sites." the pandemic has considerably limited processed and are transported for stor- pany, Eduardo Covarrubias. management consulting firms. “There- 4500 m above sea level. The project will The fuel can be used to store renew- the advancement in this area.” age in tailings dams. As mines extract Even though a dry tailings option seems fore, many of our designs are focused on include a 16 MW diesel generator and able energy to later generate electric- Overall, hydrogen fuel can play a role in higher volumes to find a high-quality like the ideal solution, according to Dave leveraging the water in the tailings reser- a 9.9 MW solar generator, executed by ity. Jorge Masias, managing director decarbonizing the mining industry. Ac- ore, production of tailings is expected Lawson, president of the mining and voirs to bring it back into the operation Aggreko, a leading supplier of tempo- of Volvo in Chile, argued for hydrogen cording to the German-Chilean Cham- to double by 2035 in Chile. minerals at Wood, a dry stack tailings to minimize the impact on the environ- rary power generation equipment. The powered trucks, explaining: "The issue ber of Commerce, the fuel has a 70% According to the ministry of mining, option is restricted by the mine's loca- ment.” extreme environmental conditions of with the use of electric vehicles in mi- chance of replacing fossil fuels within the Chile has 742 tailing dams in 10 regions, tion and size. "Converting an existing The government is also leading initia- the project were a deciding factor in the ning is that they would require higher industry. However, even though hydro- of which only 106 are active. Since Chile mine's tailings management solution to tives such as the National Tailings Policy type of hybrid model to rely on, accord- autonomy because they need to travel gen power generation is receiving more generates on average 537 million mt of dry tailings would have financial impli- announced in 2018, which considers ing to Pablo Varela, managing director longer distances, so hydrogen vehicles attention, Varela highlighted: "This will tailings every year, different initiatives cations that would require investigation permanent monitoring of active tailings of Aggreko in LATAM. "Aggreko saw are better suited." only become fruitful in 5 to 10 years, as are being led by mining companies to to ensure feasibility. Some of the equip- dams and a comprehensive approach to diesel generation as the most reliable “There has been significant technologi- managing the fuel is still quite complex find value in tailings, such as Codelco, ment needed for dry stack tailings has inactive and abandoned dams. solution. We designed specific units for cal advancement towards sustainability and very expensive." ■

62 CHILE MINING 2021 Industry Explorations Global Business Reports CHILE MINING 2021 63 INTERVIEW Global Business Reports Industry Explorations EXPERT OPINION

Can you give an overview of Aggreko’s operations in Chile? Pablo We expanded into Chile in 2006, focusing mainly on mining. We began to develop all Chilean leadership: the transactional business units to support the mines in exploration, project planning, site construction, commissioning, production, maintenance, mine closure, as well as Varela providing technical advice and expertise for mine expansion. Our first project was The red metal for a with Codelco during the construction of the Gaby copper mine. We then successfully designed, installed, and commissioned a 60 MW power plant for Escondida to provide a back-up power supply at the Coloso port. greener world

Are hybrid solutions Aggreko’s specialty? Managing Director LATAM Every isolated mine will have a hybrid solution in the near future. Larger mines in more AGGREKO accessible areas will have less of a need for hybrid systems and will probably still rely on transmission lines, but they are increasingly becoming more interested in generat- Expert Opinion Article by ing their own power as it is more cost-effective. JORGE CANTALLOPTS Aggreko has invested significantly in integration, allowing us to differentiate ourselves in the market. We have acquired Younicos, a battery and software company, to inte- DIRECTOR OF STUDIES AND PUBLIC POLICIES, grate technologies. COCHILCO

How would you describe the current power trends of the mining industry in Chile? There is significant evidence that the pect of the supply chain in the foresee- in the surprising change in the Chilean The decentralization of the generation of power is a huge trend due to the reduction transformation to a greener economy able future. If we assume a conservative energy matrix, which is rapidly shifting in costs. There is also significant investment in decarbonization. Digitalization is also a will involve many changes in infrastruc- demand forecast of 15 million copper mt to renewables. During the subsequent global trend and we are now able to operate different technologies on different grids, ture, especially those related to power by 2050 (500 thousand mt of new sup- years, copper mining will be directly or which was not possible in the past. generation and transmission, but also ply each year), the pressure on the cop- indirectly involved in new renewable In Chile, even though there is a big need to reduce emissions, the amount of electric transportation, including electric ve- per supply chain will be significant. For capacity in Chile. Renewable sources, consumption is increasing. Generating power through renewable sources, mainly solar, hicles and supporting infrastructure. A example, only two mines in the world mostly photovoltaic, will supply around has become a focus of the mining industry, which will create disturbances in the grid. greener and more connected world will produced more than 500 thousand mt of 58% of the Chilean mining industry re- Aggreko is working to have different points of generation to compensate for these dis- require more electronic sensors and de- copper. It is not clear where supply will quirements by 2023. Additionally, the turbances, and batteries are also a great solution for this. Hydrogen power generation vices in smart cities and smart houses. come from. potential of green hydrogen technology is also receiving more attention, but I believe that this will only become fruitful in five The new society model will also increase When we think about the future, there could become an excellent opportunity to ten years, as managing the fuel is still quite complex and very expensive. ■ the need for climate control devices in are many images of how we envision a for sustainable development, not only households, offices, public transporta- greener world, but there is a lack of un- for Chile but also for the rest of the Latin tion, and public buildings. derstanding of how raw materials will American region. These new developments involve many be supplied for this purpose. As a con- Green mining involves much more than Jorge How has the company grown over the last year? raw materials, where copper, the old and tribution to this matter, Chile is already water and energy, and this is why there Our main projects over the last few years have involved feasibility studies for mi- well-known red metal, stands out, play- planning and developing what a greener are other initiatives in Chile related to ning projects requiring alternative water sources and mineral ore transportation ing a vital role in a greener world. world will mean for copper mining in inclusion and increasing the participa- Donoso systems. We also provide the design and construction of these water transporta- According to the World Bank, climate terms of water, energy and the relation- tion of women in mining; increasing tion systems, frequently stretching all the way from the sea up into the mountains. change and the deployment of green ship with society. acknowledgement and contribution to We have also participated in the construction and maintenance of mineral process- technologies (including wind and solar Green copper mining will be efficient indigenous people; and local develop- General Manager ing assets for main mining companies. As an EPC company, we deliver complete generation and electric vehicles) could in reducing operational water foot- ment for surrounding communities and TECHINT ENGINEERING & solutions, encompassing all the stages in the project from the feasibility study to increase copper demand between 7.5 prints. The Chilean mining industry has a strong respect for human rights. A new CONSTRUCTION the delivery of water to the mine. and 20 million mt by 2050, depending already reduced freshwater use by 23% relationship with society requires a new on the scenario for climate change. Oth- from 2010 to 2019. Cochilco forecasts deal with mining. Since 2019, Chile has What projects are planned for this year? er highly copper-intensive technologies that only 51% of water consumption will been developing a long-term participa- This year, Techint has been working in Quebrada Blanca Phase 2 project to trans- are likely to increase this estimate, such come from underground and surface tory strategy as part of the 2050 National port desalinated water and concentrate and is beginning work on a new contract as electric vehicle charging infrastruc- sources by 2030. In addition, the water Mining Policy. This is an opportunity to with Anglo American at Los Bronces to maintain transportation systems for water, ture, climate change mitigation devices, recycling rate in copper mining is around put mining in the perspective of a more pulp, and concentrate. air conditioners, fans or heaters, intel- 80%, and most new projects will use new sustainable future. ligent technologies in households and water sources, such as seawater and oth- The way that we mine falls short of meet- How are you incorporating digitalization and automation solutions into your public infrastructures in cities. er water-efficient technologies. ing the vision of a green economy, but operations? Many challenges for the transition to a Green copper mining will be carbon- it is also clear that sustainable mining is For example, we are currently using drone technology for land, subsoil and prog- greener economy come from the sup- free. In Chile, due to the integration of the way for the industry to remain as a ress surveys allowing us to check our pipeline routes and give us a better un- ply perspective. Responsible sourcing of electrical systems in the mining indus- global critical economic pillar. It is also a derstanding of the geological conditions affecting construction in a faster, more raw materials plays a prominent role. De- try, the indirect greenhouse gas emis- challenge for Chile, not only to maintain accurate and effective way. We have incorporated automation in welding activities spite efforts toward increasing recycling sions were reduced by 20% from 2017 its production leadership in copper sup- and robot application for several critical aspects of quality needed in pipelines and implementing a circular economy to 2019. Furthermore, the copper mi- ply, but also to be a leader in responsible construction. ■ model, mining will still be a critical as- ning companies have played a key role sourcing for a greener world. ■

64 CHILE MINING 2021 Industry Explorations Global Business Reports CHILE MINING 2021 65 EDITORIAL Global Business Reports Industry Explorations INTERVIEW

virus's spread. "Among the techniques Chile is home to a competitive EPC How were you able to maintain supply creasing the use of new and modernized Construction we have used were dividing teams into and consulting mix, consisting of lead- chain continuity amid the pandemic? equipment in our operations, especially smaller groups, expanding remote work ing nationals JRI Ingeniería, Echeverría Our people’s health and safety has al- with regards to semi-automated weld- and where possible and controlling out- Izquierdo, Sigdo Koppers Ingeniería y ways been our top priority and since the ing equipment as well as last generation breaks with weekly testing. The pan- Construcción (SKIC), in addition to in- pandemic started we have taken the nec- equipment. demic has been a period of high busi- ternational companies, such as Wood essary precautions to reduce risks of ex- Precast is another innovative solution that Contractors ness activity because operators were Group, Ausenco, Worley, Stantetc and posure and keep our staff and sites safe. we are implementing in our operations. expanding eateries, housing capacity SRK. Covid-19 impacted our business regard- A successful example of this is the en- and office spaces." ing costs and schedule, as we now have tire foundation of the QB2 stockpile that Thiess, the world’s largest mining ser- to take extra sanitary measures. However, will be precast at sea level and then as- vice provider, was also able to cushion Underground mine design and we never stopped production and are still sembled on-site. Our goal is to increase the impacts of the pandemic by focusing construction servicing the mining sector and the pulp our efficiency and productivity and reduce on protecting its workforce. “We have and paper industry in the north and south people on site wherever possible. learned the value of being proactive and Chile faces challenges in maintaining of Chile respectively. Echeverria Izquierdo quickly taking decisions and implement- and increasing its total factor productiv- has approximately 8,000 employees in all What trends are you witnessing across ing processes to protect our people and ity, which has been decreasing as a re- our countries of operation, and we are for- the industry today? The resilience of the Chilean mining operations. Importantly, we have been sult of declining ore grades in the last Darío tunate and proud to be still growing dur- Despite the increase of metal prices and industry throughout the pandemic de- able to limit Covid-19 transmission on years. Chilean mines operating for over ing tough times. promising demand outlook, we observe pended on remote work and enforced site by following government protocols a century, such as Chuquicamata and El Barros Social unrest in the country caused the moderation in the large mining companies social distancing measures. The out- and directives, and enacting workforce Teniente, have shifted towards large- temporary closure of many offices and as they do not dramatically change their break came at a time when the mining and recovery plans quickly,” confirmed scale underground operations on the forced people to work from home. There- long-term investment plans based on the construction sector in the country was Darrell White, the company’s executive hunt for higher ore grades. Nonethe- Izquierdo fore, when the pandemic hit, we were bet- current market environment. However, experiencing relatively high growth as general manager for the Americas. less, open-pit mining still yields 90% of ter prepared to quickly adapt to a more there are some initiatives that could take mines were investing significantly in de- The industry’s prospects are generally Chile's copper production. virtual working environment and minimise advantage of the current scenario, oppor- velopment and expansion to increase conceived as favourable. Tomás Fischer The shift presents opportunities and disruption on our projects. tunities to advance schedules and grow productivity levels. Engineering and Ballerini, general manager of Edyce, challenges to EPC companies and new project portfolios over the coming years. construction companies have to deal one of the leading Chilean engineering, frontiers for competition. JRI Ingeniería The challenge for the construction sector General Manager Can you highlight some of the projects with one of the most challenging lo- construction and steel fabrication com- specializes in underground mine de- Echeverria Izquierdo is working on in is to not overreact to any situation and ECHEVERRÍA IZQUIERDO gistics aspects in the mining industry, panies, commented: “The economic sign. Iván Rayo, the general manager, Chile? also take a longer-term view, using this therefore, they could not rely on tra- outlook for the rest of 2021 and 2022 explained: "The depth of underground Echeverria Izquierdo is currently working time as an opportunity to be creative and ditional social distancing measures to looks promising due to the surprising mines creates a risk of geotechnical fail- on the primary crusher at Teck’s Quebrada innovative, incorporate new technology meet tight deadlines. increase in the value of copper and the ure. Other challenges include electro- Blanca Phase 2 project located in northern and be more productive and sustainable. Rodrigo Prado, general manager of Tec- government's actions to reboot the mobility and ventilation. Mines in Chile Chile, which includes overland conveyors, no Fast, a modular constructions solu- economy. It seems very likely that all are getting deeper which is exacerbat- a stockpile and reclaim tunnels. The pan- Echeverria Izquierdo is currently fo- tions provider, explained that the com- the investment projects that have been ing the need for sophisticated engineer- demic has had some impact on the project cused on Chile and Peru. Does the com- pany set up strict protocols to limit the planned will continue.” ing solutions." 71 >> schedule, but we still have approximately pany have any expansion plans? 1,000 people deployed on site. We are We are currently focused on consolidating also working on a lithium project in Antofa- our operations in Peru and we will gradu- gasta with Albemarle. Our largest project ally expand our operations if the oppor- The challenge for the is the MAPA Arauco expansion project for tunity arises. The Ecuadorian mining in- construction sector is to not the pulp and paper industry, where we are dustry is starting to attract attention. The the main contractor for the new facility. company also has substantial experience overreact to any situation in the pulp and paper industry, and Para- and also take a longer-term How is Echeverria Izquierdo incorporat- guay holds significant opportunities for us view, using this time as an ing more technological advancements in this regard. opportunity to be creative into operations to minimize operational and innovative, incorporate costs? What is Echeverria Izquierdo strategy The construction sector has been slow to to consolidate and grow its market new technology and be more incorporate new technologies. Echeverria share? productive and sustainable. Izquierdo has an innovation department Obtaining the QB2 and MAPA projects with a strong focus on the digital trans- has been significant to the company’s formation of our activities to increase the growth. We are one of the leading players productivity and thus our competitive- in the Chilean construction and industrial ness. We are moving towards digitizing erection space, and we aim to continue our warehouse and operations to shift growing in both Chile and Peru build- everything online. Covid-19 has acceler- ing long term relations with our clients, ated our efforts to become more digitally grounded on our strong ethical values and orientated in our business. We are also in- committed to sustainable development. ■

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Could you provide some background because all these projects require a lot Tomás information about SKIC? of infrastructure, from transmission lines The company was established in 1960. to ports. The energy industry is going We currently operate in Chile, Peru, Brazil to be very relevant over the next years. Fischer Ballerini and Colombia as a regional EPC player, We are currently participating in Chile in with an annual turnover around US$600 the biggest transmission line project in million and more than 15,000 employees decades (Kimal-Lo Aguirre HVDC 1,500 We have always focused on large scale km). Also, we will see more desalination industrial installation projects, mainly in projects that are energy-intensive, so General Manager the mining industry. In mining, we can this infrastructure will go hand in hand EDYCE generate many synergies with other with renewable energy. We have already companies from the Sigdo Koppers worked on the Escondida Water Supply Group, such as Enaex, Godelius, Puerto (EWS) desalination plant for Escondida Ventanas and Magotteaux. We are pres- (2,500 l/s). We are currently bidding for ent across the whole value chain, from a 2,400 l/s desalination plant in Peru and Sandro the mining infrastructure and produc- we are participating in various water and tion to the minerals' shipping. We have energy transmission tenders for Colla- Tavonatti expanded our scope from industrial in- huasi. Finally, in terms of ports, we have Can you give an overview of Edyce Some issues that were being slowly ad- tion, Pre-Assembly, Modularization and stallation to our current ability to handle just done the whole renovation of the and the company's role in the mining dressed by the mining industry have Off-Site Construction and have the po- EPC and BOP projects throughout the ship loaders for Collahuasi. industry? now been forced into acceleration due tential to significantly reduce project years. Beyond that, we have been pres- Edyce has a history of over 70 years in to the pandemic. Edyce was already schedule, improve productivity, reduce ent in large energy projects, with our in- How is the company evolving in terms Chile and has been involved in all of the working towards helping the mining in- labour costs and improve safety and en- volvement in more than 7,500 km of high of processes and new technologies? big mining developments of the last de- dustry to increase productivity and im- vironmental conditions. Our facilities in voltage transmission lines in the region, A big transformation of SKIC over the cades. The mining industry represents proving in terms of human capital, safe- Talcahuano, with direct access to ports, as well as the related substations. last five years has been the migration approximately 75% of our revenue. ty, and environmental issues through and our Modularization site at Antofa- to EPC projects. This way, we are much CEO Our core business is the fabrication of initiatives such as modularization and gasta, allow us to offer these strong Can you give some details on your closer to the clients, being able to inter- structural steel for mining and indus- offsite construction. With greater im- value proposals to our mining and in- SIGDO KOPPERS INGENIERÍA Y current work with mining clients? vene in the early engineering phase, and trial buildings. We have the largest portance now falling on optimization of dustrial clients. CONSTRUCCIÓN (SKIC) Codelco is our main client today. We this translates later into more produc- production capacity in Chile and South all these issues, we believe that there is have supported them across most of tivity and a greater level of modularity America of 3,000 tons of structural steel more opportunity than ever for us to fur- How do you see the changes in the their projects over the last 60 years. and pre-assembly. We then wrap up the per month, complemented by our other ther serve the industry. Chilean constitution impacting mi- Recently we have started working with process with excellent logistics manage- services such as structural steel erection ning investment? Teck on two important projects. We are ment. and modularization. What technological innovations or Chile is in a very particular political situa- building the flotation area of Quebrada There is a lot of space to continue im- processes is Edyce incorporating into tion as it is undergoing a pivotal process: Blanca 2 and also the port. Teck is a new proving productivity and safety. In this What are some of the main mining its operations? rewriting the constitution. This has cre- client for us, and I have no doubt that respect, Godelius works with all the sites Edyce is working on? As we have an industrial plant, we always ated more awareness of the importance we will accomplish what we have done companies of the Group in new process- Currently we are working on Teck Re- try to keep up with the latest technology of improving the work environment and with other long-standing clients like BHP es and new technologies. Our Toronto sources’ Quebrada Blanca phase 2 proj- available. It is incredible how many in- I believe that the role companies play in The challenge for the and Antofagasta Plc. Gold Fields is also and Sudbury offices have alliances with ect as well as Antofagasta Plc’ INCO novations have flourished over the last society will be under review. Society will construction sector is to not a new client for us in Chile. The Sala- several universities to innovate in remote project at Minera Los Pelambres. Both few years, even more so with the virus' demand that business operations are in res Norte project is challenging at over operations, artificial intelligence, and ro- overreact to any situation projects have come into the construc- outbreak. We are currently incorporat- harmony with the environment and indi- 4,000 meters above sea level, so that botics. tion phase over the last two years, and ing a new technology that will be part viduals' livelihoods. and also take a longer-term is forcing us to take a fresh look at pre- we continue to serve our clients who are of our production process in mid-April Many initiatives regarding productivity view, using this time as an assembly and modular construction pro- What are the prospects for the fu- trying to recover from delays caused 2021. Edyce will be using IoT technology will now also address the above-men- opportunity to be creative cesses. The success of this project will ture? by the pandemic. The economic out- on every machine where our productiv- tioned requirements. I am of the opinion be based on our joint work with Fluor on Overall, the success of the company is look for the rest of 2021 and 2022 looks ity will be measured by smart devices that the new constitution will strengthen and innovative, incorporate these aspects. the result of preserving some core val- promising, and we are confident that the and have information about the func- the industry and I believe that Edyce is new technology and be more ues that cannot be compromised, such project development pipeline of differ- tionality and performance 24/7. There in an excellent position to adjust to the productive and sustainable. What trends and opportunities do as sustainability, the environment, di- ent mining companies will be executed have also been significant advances in requirements. Chile's path is in many you see in the mining industry in versity, business ethics, inclusion and as planned. Chile has had some difficult robotic welding and we hope to incor- ways very similar to the path that other Chile? respect for local communities. With years recently, but due to the surpris- porate a new automatic welding line in already developed countries followed. I do not think we are experiencing the all that in place, you can progressively ing increase in the value of copper and 2022. New innovations implemented There are always voices of concern, es- same mining boom we had 8-10 years strengthen your technical capabilities to the government's actions to reboot the are planned to increase efficiency, pro- pecially when it comes to change, but ago. This said, we see more dynamism continue improving. All this has earned economy, it seems very likely that all ductivity, quality, as well as better health I believe the outcome depends on how in lithium, rare earths and iron ore. It will us a great reputation among the major the investment projects that have been and safety conditions for our workers. we respond to the challenge and I am take 5-7 years to ramp up these new pro- mining transnationals, so we will be very planned will continue and that Edyce All of these innovations finally have very optimistic for the way forward for jects, but there is an opportunity there active in mining in the years to come. ■ will be involved in all of them. many field applications: Prefabrica- Chile. ■

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The application of technological solutions in construction and Gastón industrial assembly also enhances safety, considering the la- Technology-driven bour-intensive nature of the industry. “We incorporated boom Rubio trucks with movement sensors to be controlled remotely, so solutions workers are kept at a safe distance. We are also introducing man lifts instead of scaffolds,” stated Alejandro Vega, general manager of Ava Montajes, a local EPC and industrial assembly contractor working in on Codelco’s Collahuasi. The incorporation of technology is poised to have a transfor- CEO and Managing Director mative impact on Chile's competitive construction industry, especially when AI and data analytics are used which present PROMET Chile’s miners and their service providers are familiar with the a compelling economic logic for clients. As a result, partner- benefits of technology. Patricio Concha, project manager at ships and acquisitions are emerging between construction Plainhill, explained how Building Information Modelling (BIM), and tech companies to maintain competitiveness. Investment an intelligent 3D based process, became a requirement in in the development of construction technology more than 2020 for governmental projects. Today, it is being used by doubled over the past decade, McKinsey reports. 69% of construction, engineering and architectural firms in “The mine of the future would rely on sophisticated techno- Can you give us an introduction to Promet and the compa- of emergency, and has a capacity of over 100 people. For this Chile, compared to 39% in 2013, according to a study by the logy using artificial intelligence, robotics and automation in ny’s most recent developments? project we were able to bring both our modular and industrial University of Chile's architecture and design faculty. mining processes to facilitate a fully automated plant and op- Promet has a history of 30 years serving the mining industry with installation capacity together. It’s an EPC project valued at ap- "The BIM system is used to integrate information from all dif- eration,” said Dave Lawson, president of the mining and min- a workforce of over 4,000 workers at several projects in Chile proximately US$70 million. ferent project functions into one single master database. The erals division in Wood, the British multinational engineering and Peru. Last year, the Cintac Group acquired 60% of the com- In Mantos Blancos, the expansion of the concentrator for Man- system is composed of digital 3D models where all relevant and consulting, currently working on the detail underground pany – the Cintac Group is a subsidiary of CAP, a large iron ore tos Copper is valued at around US$70 million. The project in- information of the project is generated, integrated, adminis- design for Codelco's Chuquicamata. “Covid-19 has pushed producer. This acquisition strengthened the company’s market cludes mills, flotation cells and all the necessary equipment. We tered, controlled and exchanged among the project partici- the industry further towards the digitalization of processes share and its five-year strategy is to increase sales from US$200 also worked on several projects in Quebrada Blanca. These are pants in the course of the whole project life. Further informa- overall. Mines are now looking to operate from control rooms million to US$500 million annually in camp-related services, in- important projects for us that have allowed us to maintain good tion can be linked such as schedule constraints," elaborated in remote locations.” ■ dustrial installation and structures for mining. We have built 2 levels of activity during the pandemic. Concha. million m2 in Modular Construction, and our vision is to become We have significant projects at Pelambres, Centinela, Radomiro Iván Rayo, general manager of JRI Ingeniería, explained that the leading player in industrial construction— and also modular Tomic, and Collahuasi mines. Promet also works on gold mining the company incorporated BIM into its operations in 2019 and pre-fabricated solutions— in Latin America. projects, such as Salares Norte with Fenix Gold. to improve its offer to clients. "This technology was ground- Five years ago, we also established Promet Montajes, a com- breaking for mining, an industry that until recently had not pany dedicated to industrial installation. Today, in Mantos Blan- How is Promet incorporating more digital processes into its been able to apply such processes due to the complexity of Global insight, cos, we are working on the expansion of the concentrator for operations? its engineering." Mantos Copper. Digitalization is our main challenge ahead, so we are investing in The trend towards increasing use of BIM allows for the appli- local value higher levels of automation in our manufacturing plant. We are cation of artificial intelligence (AI), which will be used to better How do you perceive market dynamics in the mining indus- also using augmented reality to control the different projects as assess risk, manpower and planning errors. SKIC, a subsid- try in 2021 and beyond? well as artificial intelligence and machine learning in order to iary of Sigdo Koppers (SK) Group, is working with Godelius, 2020 was a challenging year as we only met 80-90% of our bud- optimize processes to achieve operational efficiency, breaking a more tech-focused company of the SK Group, to introduce geted sales. However, I am very optimistic about the next three all existing paradigms. At the same time, we are now imple- other innovations beyond BIM to enhance safety and produc- years. The outlook for copper is positive, which will trigger the menting BIM inside our company. In addition, we are aiming to tivity. "Our Toronto and Sudbury offices have alliances with development of new projects and expansions. We anticipate in- control our water footprint, considering most of our facilities are several universities to innovate in remote operations, artificial creased demand for hotel infrastructure, and we should achieve in the desert. We aim to eliminate paper in all our processes, intelligence and robotics," explained SKIC's CEO, Sandro Ta- an annual growth of 25% between 2021 and 2023. so everything is digital and installed in the cloud. In the future, vonatti, who is actively working to reduce the technological companies will compete based on their extent of automation, gap of the construction industry. To what extent is the industry becoming greener and more digitalization and sustainability. Edyce, who provides steel fabrication solutions for industrial sustainable? use, is also using robotics in welding. “There have been sig- The pandemic is already promoting innovation and efficiency, so Do you have a final message to our international readership? nificant advances in robotic welding and we hope to incorpo- the mining industry in Chile is going to become more competi- Our workforce is our main asset, and our priority as a company is rate a new automatic welding line in 2022. New innovations tive. I am also optimistic about the energy sector – we will defi- to ensure their satisfaction and safety. Throughout our 30 years implemented are planned to increase efficiency, productivity, Thiess’ operations started 80 years ago in Australia as nitely see new wind and solar projects, and Chile will become of operations, we have never had a fatality. Operations under quality, as well as better health and safety conditions for our a family business. Since then, we’ve grown to a global the undisputed leader in renewable energies in the region. Promet Montajes have never had an accident since its found- workers,” commented Fischer. company, and our vision is to be a leading mining services provider. Today, we bring our expertise and capabilities in ing, and Promet Servicios offers excellent safety indicators. To On the other hand, Techint, a local EPC firm, is using drone mining to Chile to create lasting value for our clients and community. Can you elaborate on some of the projects you are working achieve a solid safety performance, we have built a culture that technology for rock prospection. "We are currently using on? prioritizes safety in our business. drone technology for land, subsoil and progress surveys al- In Chuquicamata, we’ve developed the emergency refuge as Over the next four to five years, we want to be the leading play- lowing us to check our pipeline routes and give us a better un- well as the underground maintenance shop with the ventilation er in industrial construction, increasing our revenue to US$500 derstanding of the geological conditions affecting construc- system. This is the largest underground shop in Latin America, million annually, as well as expand operations to Colombia and tion in a faster, more accurate and effective way," commented [email protected] | thiess.com and one of the world’s largest. The refuge is pressurized, in case Ecuador and consolidate our presence in Chile and Peru. ■ Jorge Donoso, general manager.

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Mario Can you introduce Züblin and its role in the mining industry? What is the history of Tecno Fast in Chile? Züblin is under the Austrian-based STRABAG Group, one of the largest European con- Tecno Fast was established in 1995 when Chile’s mining industry was experiencing tractors. STRABAG fully acquired Züblin in 2016. We have been established in Chile for a critical boom. The company’s evolution has strong links with the country’s devel- Theurl & over 30 years and have vast experience in the Chilean mining industry, where mining opment in infrastructure and mining. In line with this growth, today, our focus is on represents approximately 50% of our business. infrastructure services for mining operations, such as the rental of infrastructure. We are a major player in the development and preparation of underground mines, pro- In 2013, we launched a line of privately-owned hotels where we offer a complete Dirk viding services from construction to mining. Our experience covers civil works and mi- housing solution to service providers and operators on-site. We have always had ning infrastructure, as well as the integral exploitation of mines. a unique link with mining, but the company’s strategy has grown beyond it. In this Over the course of our time in Chile, we have built a collaborative relationship with our evolution, Tecno Fast has also expanded internationally with a presence in other Pförtner clients and successfully established long term relationships. We have partnered with countries such as Peru and Colombia. renowned clients such as Lundin Mining for more than 15 years, and for the last 20 years Mining represents 50% of our business. The rest is diversified in various industries MT: Technical Manager we have worked on sizeable mining projects at El Teniente, Chuquicamata and Andina. such as construction, infrastructure and services. Diversifying our scope of action is STRABAG ZÜBLIN a company priority. DP: Commercial Manager What is Züblin’s offering to the underground mining industry in Chile? Züblin actively participates in all significant underground mines across Chile. We offer Can you elaborate on some of the current projects you are working on? STRABAG ZÜBLIN CHILE the best technical and economically viable solutions to large-scaled mining ventures for Right now, we are working on Teck Resources’ QB2 and Salares Norte by Gold clients such as Codelco. Our main attributes focus on the quality of our operations as Rodrigo Fields. We have also worked in Minera Sierra Gorda and Los Pelambres, where we well as the high safety standards that are an integral part of our working culture. For ex- helped expand their campsites. Energy projects and solar panel farms have also ample, we have collaborated with Codelco on Chuquicamata since 2015, boring tunnels Prado presented good business opportunities, as we worked on ENEL’s Sol de Lila project. at an estimated rate of 1,800 meters per month during our peak performance, recording a staggering 5 million hours of work without lost time accident. How did you sustain growth despite the challenges posed by the pandemic? In March of 2019, we acquired a contract for El Teniente to construct tunnels averaging Tecno Fast did not halt operations during the pandemic. We focused on training a length of 32.5 km. Given the challenging seismic conditions near El Teniente, we apply and set up protocols and systems to improve bio-security. Among the techniques and rely on some of the latest tele-commanded technology on the market to execute we have used were dividing teams into smaller groups, expanding remote work the project. The equipment required to build the tunnel is operated remotely to comply where possible and controlling outbreaks with weekly testing. Fortunately, we have with strict safety measures on site and ensure our staff’s safety. been able to limit exposure and prevent risks. The pandemic has been a period of high business activity because operators were expanding eateries, housing capac- General Manager Can you elaborate on some of the most exciting innovations happening in under- ity and office spaces. MT TECNO FAST ground mining today? Technology development in underground mining today is focused on enhancing safety What are the logistics of the installation process, and how do you ensure in combination with increased productivity. As mining worldwide dives deeper and be- robustness in Chile’s challenging weather conditions? comes increasingly more challenging, the industry is in need of faster and safer ways We have 25 years of experience in the market, and we are aware of the importance of operating. We see this in the case of Codelco, for example, where the company is of using quality and durable materials. Preventing high maintenance costs is a prior- choosing to adopt more remote equipment and trucks in their operations. Züblin was ity. Our department of procurement focuses on sourcing materials that meet strict part of a pilot program where operators drive the scaler and an excavator from a cabin standards. Sustainability is also an aspect that we incorporate in our business. We stationed away from the working front. Another example is our use of Photo ADAM are conscious of the environmental impact of processes and products. Our plan is to technology for cutting-edge photo mapping. The software allows for images to be over- be a carbon-neutral company; the entirety of our production process is carbon neu- lapped with one another to create 3-D models for geological and geotechnical analysis. tral, and all the energy we use for production is generated through solar-powered The use of equipment such as Boltec, for pre-drilling and mechanized fortification, is means. another noteworthy example of technological developments in this field. Our plan is to be a carbon- Can you elaborate on the innovations in modular homes and systems that are DP How do you use your BIM.5D technology, and what are its applications in your neutral company; the entirety energy efficient? mining projects? In 2018, we initiated an ambitious project of installation to improve our produc- BIM.5D (Building Information Modelling) is an important pillar in the execution of our of our production process is tive system using automation and by robotizing the plant’s entire process using corporate strategy and improves our project delivery from design to take over by our carbon neutral, and all the cutting-edge global technology. We incorporated solar energy in order to be car- clients. It can be used in the design, realization, and operation phases of a project. It is energy we use for production bon neutral. Overall, 80% of Tecno Fast’s energy consumption during production a model-based planning method that provides a visual representation of a project as it processes is self-generated. We include sustainability initiatives in all the projects Given the challenging seismic is generated through solar- conditions near El Teniente, progresses. It highlights the materials and quantities required for the project and pro- we are involved in, for example, by utilizing LED lighting and water-saving artefacts. vides a timeline that demonstrates how changes in the design would impact the project. powered means. we apply and rely on some of This level of digital planning technology is revolutionary in the construction industry, as it Should we expect Tecno Fast’s initial public offering, and if so, how are you the latest tele-commanded enhances cost efficiency design and scheduling. It also helps identify missing informa- preparing for it? technology on the market to tion and conflicts detected in the design, which helps avoid errors overall. The IPO was delayed due to the social unrest we experienced in 2019 and the un- execute the project. certainty surrounding the pandemic. However, despite postponing it, we did re- How is Züblin perceived by its clients? lease bonds which allowed us to capture new resources and stick to growth plans. Züblin is perceived as a reliable partner with a proven ability to execute projects in an The IPO will resume when external variables are favourable and attractive. We are efficient manner. Our ambition is to be the leading technology partner in construction monitoring the possibility constantly and waiting for the appropriate moment. Emit- of the future. Our value as a partner is our commitment to quality, reliability and innova- ting bonds makes us a public company and means we must adhere to standards of tive spirit. ■ transparency, risk and reporting in the same way as a publicly listed company. ■

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What is the role and history of Nexxo What trends have you witnessed for in the Chilean mining industry? your services recently? Darrell Nexxo’s history is more associated with Clients in the mining industry tend to pre- the petrochemicals industry since 1980, fer managing their assets and to prepare White and entered the mining and paper and their own plans. The role of Nexxo fits pulp industries later in the early 2000s. in by providing support in carrying out Today, mining represents 45% of our the maintenance guidelines defined by sales, compared to just 15% a few years the clients through long-term contracts, Executive General Manager Americas ago. We have a broad spectrum of ser- plant shutdowns or spot services. This vices, including mechanical and indus- process differs from elsewhere since in THIESS trial maintenance through long-term other countries and industries, the whole contracts and plant shutdowns, as well process is outsourced. Another trend we as specialities related to maintenance. witnessed is that in the last years, mining Among other specialities, we are recog- companies prioritized cost reduction in Can you explain the company’s his- implementing processes to protect our derground projects in other parts of the nized as leaders in the maintenance of contracted activities. Therefore, we fo- tory in Chile, its service portfolio for people and operations. Importantly, we world, our current focus in Chile is de- reactors and catalyzers in melting plants, cused our work on improving productiv- the mining industry and how it fits have been able to limit Covid-19 trans- livering our core services in an open cut Francisco as well as chemical and high-pressure ity, reducing the number of staff in long- into the Thiess’s global strategy? mission on site by following government environment. water cleaning. We also provide a long term contracts and implemented more Thiess commenced operations in Chile protocols and directives, and enacting Casas list of other industrial services, including cost-saving mechanisms and equipment. in 2015 with a contract awarded to un- workforce and recovery plans quickly. Can you elaborate on the importance dredging and pre and operational tests. Innovation is also something that Nexxo dertake pre-strip operations for a client of having a social license to operate In mining we see an immense growth po- has always had as a priority to remain in the Antofagasta region. That estab- How does Thiess differentiate itself in the industry? tential for our mechanical maintenance competitive. lished our base, and we’ve used that in the competitive sphere? At Thiess, we believe strong social per- capabilities. initial entry as the foundation for future Thiess leads with its technical capabili- formance starts with proactive, genuine In Chile we work with all the major mi- To what extent does Nexxo incorpo- growth in Chile. As the largest mining ties, bringing value through mine opti- and positive community engagement. ning companies such as Codelco, AMSA, rate the use of technology to enhance services provider in the world, Thiess misation and extraction techniques that This approach supports successful proj- Lundin, Lumina, Glencore and BHP, and operational efficiency? brings deep experience, capabilities add commercial value to the operation, ect outcomes by building understand- we currently have 10 long-term mechani- We rely on the use of robotics to reduce and strength to optimise mining opera- which in turn enables Thiess to move ing of culturally acceptable customs, General Manager cal and industrial maintenance contracts the number of staff on-site and mini- tions in Chile. A key service offering and material more efficiently. We create last- managing community and stakeholder NEXXO in mining. Nexxo focuses immensely on mize risks. For example, robots are used differentiator for us is strategic mine ing value for our customers, people and expectations, creating opportunities safety and maintains high standards. to clean near or under conveyors. The planning, both short and medium term, community by focusing on smart solu- with local and regional business, pro- Since 2013, Nexxo operates as a subsid- use of robotics reduces costs consider- designed to meet specific client needs. tions when we go about our business moting diversity and inclusion and, iary of the Echeverría Izquierdo group. ably, which allows Nexxo to be more Drill and blast design and execution are and not just on moving the material vol- most importantly, paving the way for The acquisition by the group provided competitive. However, even if it did not also considered part of our core busi- umes. Additionally, Thiess’ strong focus meaningful, two-way communication us with additional technical support and save costs, we would still prefer the use ness with scope to modify this for cli- on safety across its global operations is between Thiess and project-affected financial backing. of robots and specialized equipment for ent needs. Traditional load and haul of very well aligned with the requirements communities. safety considerations. waste material and ore, as well as main- of the local industry. Areas that we are particularly proud of Can you elaborate on your safety and tenance of all core assets and auxiliary in Chile is the establishment of our Allies quality assurance mechanisms? How is Nexxo consolidating its mar- equipment on site are included in our In what way is Thiess introducing in- program, which supports LGBTIQA+ Nexxo has the ISO-45001 certification, ket share in Chile? offering. novation in sustainable mining solu- communities, increasing the diversity of and our relationship with Echeverría Iz- Even though we have a more substantial tions? our teams with our first female truck op- quierdo guides and supports our safety presence in the petrochemicals sector, we What are some of the current and We now have full autonomous drilling erator and 40% female representation Even if it did not save costs, policies. We operate in an industry that have grown our presence in mining in re- upcoming projects you are working rigs in Australia and are looking for the on our leadership team, and building we would still prefer the use has high safety standards, and we abide cent years, which Nexxo is well-suited for. on, and how you were able to cush- right opportunity to bring that techno- the capacity of our people and industry by them strictly. We are proud to have Working in the petrochemicals industry logy to Chile. We are also going trialling through scholarships and pathway pro- of robots and specialized ion the impact of Covid-19 on your been awarded in 2018 and 2019 four is more complex than working in mining operations? a fully autonomous haul fleet project in grams. equipment for safety stars in the Honor´s Roll by the Chilean due to the higher operational risk and In addition to delivering load and haul Australia and look forward to bringing considerations. Chamber of Construction. In 2020, we quality requirements. Therefore, Nexxo’s services and pit operations for clients in that to market in the future. Certainly, What are the company’s plans and improved our safety results further. strength in mining is a result of the ex- the region, we are exploring other op- digitisation is our future. Through the strategy for growth in Chile for 2021 In maintenance, Nexxo works through perience gained in petrochemicals. Our portunities, including at existing gold convergence of operations and techno- – 2022? constant evaluation of the site and the goal is to stand out from the competition and copper operations as well as green logy, we can create smarter ways of In 2021 and 2022, our team is focused conditions, which are different when by providing value to our clients through field opportunities. The impact of Co- working that drive efficiency through on fulfilling current contracts, add- compared to construction companies. our service offering to complement the vid-19 has come in waves for Thiess and the mining value chain enabling quality ing contracts that fit our portfolio, and We use tools and procedures to conclude long-term contracts, which includes al- has certainly been an ongoing challenge client outcomes. continuing to bolster the business for and quantify risk and act upon it accord- liances with maintenance engineering to manage and reduce its impacts. Our growth. We see tremendous opportuni- ingly. We have identified our critical risks companies such as Monitoring (local priority has always been focused on the How is Thiess responding to the ties in the region for the services Thiess and their precursors and are working ev- company) and companies specialized in health and safety of our people. We trend in underground mining in brings and see us having a key role in ery day to minimize them. Our safety ap- the maintenance of crushers and mills. ■ have learned the value of being proac- Chile’s mining industry? providing sustainable solutions to cus- proach is preventative. tive and quickly taking decisions and While Thiess successfully operates un- tomers. ■

74 CHILE MINING 2021 Industry Explorations Global Business Reports CHILE MINING 2021 75 EQUIPMENT AND TECHNOLOGY

“One barrier to innovation in Chile is that mining companies refuse to incorporate unproven products and services into their operations as it risks their volume or continued operation. There are not many places to pilot technology on an industrial scale. Approximately one-third of Chilean mining suppliers do not allocate resources to innovation.”

- Philippe Hemmerdinger, President, Aprimin

GBR • Industry Explorations • CHILE MINING 2021

Image courtesy of DSI Underground EDITORIAL Global Business Reports Industry Explorations INTERVIEW

energy costs. A report by consultancy How did you overcome the challenges on increasing productivity and reducing Equipment and firm BDO highlights that automation of posed by the pandemic? risks. The applications are multiple; for mines will cut costs by more than 30%, 2020 was a year of extraordinary efforts example, we are currently developing a Technolog y while accidents in mining will be re- to sustain operations, with a solid focus robotic washing process for large mining duced by 75% as workers are trained to on controlling and managing the pan- trucks. manage the robots. demic. Despite these challenges, we are Internally, we are making relevant chang- In the equipment space, the highest very satisfied with the results as we main- es in the company to respond to new level of investment in mining techno- tained our growth amid the outbreak. business opportunities. We signed an THE JOURNEY TO SMART MINING logy is in autonomous vehicles, robotic Our construction company witnessed agreement with the University of Concep- process automation and analytics tools, increased sales, despite being one that ción to incorporate artificial intelligence according to a KPMG survey. Over the faced the most challenges as there was in the application of robotic technology course of 2020, the mining industry was an operation with more than 1,000 peo- to the change of mill lining. With this, we Driverless machinery and mining expe- same result (ktpd); this means that digi- able to adapt and continue operations ple, but thanks to the safety protocols are going to structure an entire artificial ditions using robots were once only a tization has become a vital efficiency during the pandemic as a result of the and the workers' commitment, the result intelligence program for the company. product of imagination. Today, they are mechanism for the survival of mining rapid adoption of technology that al- was excellent. We are also developing a global monitor- a reality as we embark on the fourth operations.” lowed smooth remote operations, to The technology company also experi- ing centre for all the robotic operations industrial revolution, especially after Innovation is the new language of mi- the extent that Komatsu Cummins’ Hugo enced significant advancement. In 2020, that we are implementing. It is a process the Covid-19 outbreak. “There is no ning, as it helps minimize costs, enhance 2020 sales outperformed those of 2019, we introduced robotics in the change of in which we already have relevant experi- doubt that the pandemic accelerated safety, optimize mineral processing and according to Darko Louit, CEO of the Salamanca mill lining, which is critical both from the ence. Years ago, when we developed the the move towards automation and au- improve the economics of resources in company in Chile. “A strong interest in point of view of production and the risk it plant maintenance services company, we tonomous mining techniques in Chile,” the face of structural challenges such autonomy has been a significant fac- entails for people. We advanced techno- set up a monitoring centre for the mills elaborated Patricio Apablaza, sales vice as remote locations and declining ore tor impacting demand over the past 18 logy in Minera Los Pelambres with AMSA. and their motors in different operations in president of Andean & South Cone for grades. In Chile, the use of technology to 24 months, leading to a very busy It is a pioneering application worldwide, Chile, Argentina, Peru and Brazil. Sandvik Mining and Rock Solutions. is also essential in managing water and schedule of implementation of autono- and we are pleased because we were “The Covid-19 pandemic means fewer energy sources, considering the ongo- mous operations in the country for the able to demonstrate robotic arms' per- Do you think Chile is going to become people on-site, working to achieve the ing drought and the industry’s high next 2-3 years,” he added. ■ formance. This technology will come into a significant mining technology ex- operation this year with AMSA, which will President porter? be a global milestone. We are also work- Chile, due to its strong, established mi- HIGHSERVICE CORP ing on the same technology with Minera ning industry, is becoming a pole of Escondida. technological development. We are a company with an innovative outlook, What advances have you made with and innovation has been a strategic pillar robotics? from the beginning. Robotic applications In Peru, we have a very solid position, for have been operating for several years in example, in Antapaccay, as well as in the the US and Peru, and we see applications ports of Matarani and Callao. We have an in Australia and Europe. In the group, we exciting application of casting in Magot- already have a unique global scale robot- teaux in the US, which reduces the need ics development centre for mills. for individuals in the assembly of moulds in foundries. Where do you see the highest growth In 2020, we introduced On the other hand, last year, we contact- potential for the company in the com- ed potential clients in European, particu- ing years? robotics in the change of larly foundries in Finland and Sweden, The copper industry is to witness bullish mill lining, which is critical for applications in melting furnaces. We projections due to electro-mobility and both from the point of view are in the implementation phase at BHP's technological developments that rely on of production and the risk it Olympic Dam in Australia and see appli- copper, which will continue to increase cations for foundries in France. We have demand. Our vision is to become a lead- entails for people. also presented our developments to An- ing robotics company worldwide in the glo American foundry specialists globally. mining and heavy industry sectors. To achieve this, we have transformed into How are the company and the indus- two entities: on the one hand, we are try changing to incorporate more launching a company specialized in the technology in mining? application of robotics in mills. On the In other industries, such as automotive, other hand, the robotics base company, robotics is highly developed, but in mi- MIRS, has been reinforced with new ning, it had a very low level of penetra- executives for the international devel- tion until last year, when the Covid-19 opment of the business, as we recently crisis promoted a new approach focused opened the MIRS office in Australia. ■

78 CHILE MINING 2021 Industry Explorations Global Business Reports CHILE MINING 2021 79 INTERVIEW Global Business Reports Industry Explorations INTERVIEW

How has Finning maintained supply operate with the Diesel Electric Truck CAT What are your main business lines in the Chilean market? chain continuity amid the pandemic? 794 AC. In underground, we are working Sandvik is divided into three main groups: Sandvik Material Technology, Sandvik Rock We were able to take all possible mea- with Codelco’s El Teniente in the second Patricio Processing (included as of this year), and Sandvik Mining. We, under the Sandvik Mining sures to ensure the safety of our employ- phase of the semi-autonomous project division, are currently working in underground mining with Codelco at Chuquicamata and ees: over a thousand started working from with great success, and we see interest in Apablaza El Teniente. In November of last year, we were assigned an important project in El Teni- home. We also applied special Covid-19 extending this plan for the mine. ente, leading automisation for the underground loaders and underground trucks. Cemin protocols to every job, adapted the work- We are witnessing strong commitment is another mine we work closely with, and is one where operations rely on automisation to spaces, and created multiple campaigns and demand from customers to move to a large extent. Our strength in Chile lies in our atomised offering, as our products can be Sales Vice President of Andean to help with the mental health of our per- autonomy. Caterpillars' autonomous sys- used across various mining sites regardless of the mine size. sonnel and their families. tem is the best option for customers, as & South Cone Additionally, we created the Operational it allows for a 30% increase in productivity SANDVIK MINING AND Has the pandemic accelerated the move towards mine automation in Chile? Continuity Committee to manage and se- and has many advantages compared to ROCK TECHNOLOGY There is no doubt that the pandemic accelerated the move towards automation and au- cure all the required equipment and spare other brands in the market, as it can run tonomous mining techniques in Chile. As Covid-19 impacts linger, miners are headed parts in our inventory and in our custom- both on the CAT fleets but also on differ- faster towards digitalization. Our customers today are able to work and operate their sites ers’ inventory to continue supplying them. ent equipment from other brands, as well from miles away. Across South America, the target is to reduce the number of people on as in a mixed mode. site, which is being done through machinery replacing multiple human tasks on the mine, Pedro How does Finning's distribution agree- especially underground due to safety concerns. ment with Resemin better position the What products and services does Fin- The challenge we face with automation is not developing the technology, but it is its Damjanic company in the Chilean underground ning offer that emphasize sustainabil- implementation, which was amplified under the health crisis as travel restrictions were en- market? ity? forced. We are overcoming this challenge through the establishment of our Sandvik Digital We offer a comprehensive portfolio in the By 2040, the mining industry is aiming for Training Centre, allowing us to train our employees as well as our customers’ technicians. open-pit space, but there was a shortage the elimination of gas emissions. Many of product line in relation to underground. mining companies are already switching Which market segment have you identified as key for Sandvik’s future growth? Our representation of Resemin gives us a to renewable energies to reach this goal. In addition to automation, a key market segment for us is surface operations’ equipment. substantial position with the jumbo and In collaboration with Caterpillar, Finning is Chile and Peru produce between them approximately 40% of the global copper produc- other relevant lines. We also have to con- also heading in a more sustainable direc- tion, so Sandvik will continue to consolidate its presence in these markets and respond to sider that Finning has the representation tion. their trends. ■ Senior VP of Mining of Elphinstone for Special Underground We also believe in building capacity for FINNING Auxiliary Equipment. Today, Finning has, the future. That’s why we partner with co- under the umbrella of one company, the mmunities to empower learning and train- largest portfolio and the most compre- ing the future generation in science, tech- What changes has the company undergone since we last spoke in 2019? hensive lines of equipment for under- nology, engineering, and math. We are CE: We have incorporated further technological advancements into our offering, to in- ground mines. We are receiving positive also committed to decrease the gender Charlie Ekberg clude more automation and digitalization and, over last 2 years, we saw demand for our feedback from our customers, showing gap in the mining industry by providing services increase as a result. Epiroc will be the first company in Chile to offer fully electric that Resemin is a great addition to what free training and scholarships to women. & Rodrigo Izzo loaders, under our offering of the zero-emissions fleet, which will be at Codelco’s El Te- we offer. niente. We also have several projects for underground production equipment (Simba), What are the barriers to mining innova- which will be operated via tele-remote. Overall, our technology is facilitating the growth Can you give an overview of the tech- tion in Chile? and consolidation of our market share in Chile. There are no significant barriers to in- We are also working on our certification NCH3262 ref to gender diversity. Like many com- nology the company offers in autono- CE: Managing Director mous mining? novation, and the mining industry has panies, we believe it’s very important to ensure an equal, diverse working environment. RI: Business Line Manager As part of our training for We developed a robust strategy that made tremendous innovations over the The certification and implementation process will take place during first semester 2021. starts with a new specialized organiza- last years. Approximately 95% of the de- EPIROC CHILE RI: Recently, we successfully tested operating rigs from control centres in Santiago for Los autonomous operators, we tion that includes qualified managers, mand for renewable energy in Chile came Bronces and Los Pelambres. Los Bronces is looking to start remote operations of their invested in a Simulation engineers and a complete organization from the mining industry. The desalina- autonomous machinery from Santiago in March of 2021. School located in our facilities platform in autonomous projects to sup- tions plants are supporting the increasing Throughout 2020, we took on new challenges as we are now supplying Minera Los in Antofagasta, and being port the customers from the conceptual investment in technology development Pelambres with two autonomous rigs, operated from an office at the mine site, in addi- idea up to the implementation, all in close within the industry. The mining industry is tion to BHP's Minera Escondida, where we are supplying six fully autonomous rigs. Anglo replicated in Santiago to connection with CAT and with our organi- also the first to initiate operation manage- American partnered with Epiroc to develop and implement the new tele-remote drilling prepare for upcoming projects. zation in Finning Canada. As part of our ment centers from one location, which in- project at Los Bronces to allow more accurate and safer drilling. We are also supplying training for autonomous operators, we creases operational efficiency and labour two fully autonomous rigs in mid-2021 to Candelaria's open-pit extension, Esperanza Sur. invested in a Simulation School located flexibility. Later in 2021, Epiroc will introduce autonomous management of the electric rigs. in our facilities in Antofagasta, and being The Covid-19 pandemic encouraged digi- replicated in Santiago to prepare for up- tization in the mining industry regarding CE Where does Epiroc see the highest growth potential in the next two years? coming projects. supervision and maintenance. Mainte- CE: Automation and digitalization will continue to drive our growth. By mid 2021 we will work with Teck Re- nance on sites is now conducted through RI: Our surface mining offering will increase growth through continuous optimization of sources' Quebrada Blanca Phase 2 (QB2) drone surveying which improves produc- our customers' value chain by offering interoperability solutions. We aim to develop an project on the Autonomous Mode. This is tivity, reduces risks, and is less expen- agnostic platform that allows control of drilling, loading, hauling and auxiliary equipment RI our first open pit project of this kind. It will sive. ■ on-site. ■

80 CHILE MINING 2021 Industry Explorations Global Business Reports CHILE MINING 2021 81 EDITORIAL Global Business Reports Industry Explorations INTERVIEW

Meanwhile, Epiroc is also investing in Darko Continuous investment in facilitating remote operations as it suc- cessfully piloted the autonomous op- Louit autonomous technology eration of the two Pit Viper 351 diesel drills at Los Pelambres, allowing the operators to work from an office envi- by OEMs ronment in Santiago. The results show that operational drilling speed and well CEO depth accuracy increased by 10% and 96%, respectively. KOMATSU CUMMINS CHILE “We successfully tested operating rigs from control centres in Santiago for Los Bronces and Los Pelambres. Los Bronc- es is looking to start remote operations Unmanned drilling rigs and trucks are firmed Dale Clayton, managing director of their autonomous machinery from no longer an uncommon sight in Chile’s of Liebherr in Chile. Santiago in March of 2021,” comment- How has demand changed for Kom- significant factor in influencing demand by 50% compared to 2010. The haulage mining industry. Original Equipment To give the mines more flexibility, Lieb- ed Rodrigo Izzo, surface mining busi- atsu amid the pandemic? trends for AHS, since drivers for the de- fleets are the biggest consumer of die- Manufacturers (OEMs) such as Epiroc, herr introduced truck autonomy pack- ness line manager at Epiroc in Chile. In mining, we did not witness significant cision to adopt this technology respond sel and a significant source of emissions Sandvik, Caterpillar, Komatsu, Volvo ages that allow customers to use the Due to the pandemic and the resulting fluctuations in demand in Chile. There to longer term safety and productivity in the mining sector. Therefore, we are and Liebherr are revolutionizing the truck with any management system measures, automation solutions have were several brownfield projects and gains, we believe the Covid crisis has working on developing power agnos- industry and introducing disruptive available on the market. The German- gained traction and popularity. “The fleet renovations that we took part in. put in evidence the need and viability tic vehicles for mining that can operate technologies. “We are witnessing an in- Swiss manufacturer also allows data to pandemic has changed circumstances Actually, our mining equipment sales for remote solutions, for example, mon- with a variety of power sources – such creasing demand for automated prod- be processed and downloaded from radically and has given our clients an for 2020 outperformed those of last itoring and diagnostics used to support as hybrid engines, batteries, trolley sys- ucts in Chile, especially for autonomous the equipment to be analyzed remotely inevitable push towards the adoption year. In this sense, Komatsu was chosen optimization decisions. tems and hydrogen fuel cells. The appli- trucks and smart equipment,” con- to predict maintenance times. of new solutions to counter challenges as the most preferred supplier by its cation will determine the best solution such as social distancing,” stated Mar- customers. During 2020, the implemen- Given the company's recent mile- based on the environment the custom- celo Schumacker, country division man- tation of Covid-19 related protocols stone at Sierra Gorda, what can you er is operating in. ager of ABB in Chile, pioneering tech- posed several challenges as we man- tell us about how Komatsu's equip- nology solutions provider. aged to ensure operational continuity ment enhances productivity? As commodity prices recover strong- The Covid-19 outbreak also pushed while protecting our workforce's safety. Our aim has always been the provi- ly, how does this resonate to your companies to be creative to ensure the In addition, a strong interest in auton- sion of reliable and dependable equip- operations? same quality of after-sales service to omy has been a significant factor im- ment. In addition to our reliability, we The expectations for the future increase reduce unplanned downtime. “Equip- pacting demand over the past 18 to 24 place a huge emphasis on increasing in demand for green technologies is ment diagnosis, for example, is a task months, leading to a very busy sched- efficiency using data analytics. We col- driving the long-term bullish sentiment that is done increasingly through re- ule of implementation of autonomous lect and analyse data from the equip- for copper prices. This has positive con- mote means,” highlighted Francisco operations in the country for the next ment and the surrounding environment sequences on the Chilean mining indus- Errázuriz, CEO of Sigdo Koppers’ sub- 2-3 years. to help our customers optimize their try and its suppliers, such as ourselves. sidiary SKC Maquinarias (SKCM), dis- operations. We are proud to say that Therefore, we are optimistic about the tributor of world-renowned brands’ our customer Sierra Gorda managed future and expect to see solid demand machinery in Chile. “Brands are devel- Can you elaborate on Komatsu's lat- to break a world record as they loaded and customers’ interest in the imple- oping products with a focus on track- est technology in its autonomous 230,400 tons in just 24 hours, with one mentation of the new technology we and-trace and telemetry in order to fleets? Has the pandemic impacted P&H4100XPC AC Komatsu shovel. offer. monitor equipment better and conduct autonomous equipment demand? maintenance proactively.” The Komatsu Autonomous Haulage What measures is the company tak- Where does Komatsu see the highest Another approach to maintenance is System (AHS) was first introduced in ing to reduce its carbon footprint? growth potential for 2021 – 2022? being developed by geospatial solu- Chile, at Codelco's Radomiro Tomic and Komatsu is dedicating its efforts and We are expecting an increase in our tions equipment provider Geocom by then Gabriela Mistral mines, and since resources to the reduction of green- mining sales in 2021 relative to 2020. relying on augmented reality (AR). “This then it has accumulated over 3 billion house gases and the carbon footprint As the construction industry recov- technology can be a game-changer in tons of material moved in operations of its manufacturing operations, and ers, it will also contribute to our sales the industry. It will enable remote dis- around the world. We have witnessed also of our equipment fleets. Our goal forecasts. Commodity prices recovery tance support and provide manage- strong interest from the market for ad- is to reduce our emissions by 50% in will benefit aftermarket sales volume ment with a real-time visual guide to ditional autonomous fleets in Chile and all of our production bases globally by as customers increase their operational operations. The use of AR in mining will Peru. Therefore, we set up an AHS base 2030, relative to 2010. Another target is capacity and usage of equipment. In disrupt and revolutionize the industry in Santiago consisting of specialists and to source 50% of all the electric power 2022, we foresee further slight recovery and is set to change the future of mine engineers to support the fleet deploy- usage from renewable sources by 2030. in demand compared to 2021, mainly safety,” stated the company’s general ment and operations. Although in our Finally, by 2030 we also expect to re- driven by brownfield expansions and manager, Carlos Escudero. ■ opinion the pandemic has not been a duce our emissions from our equipment fleet renewals. ■

82 CHILE MINING 2021 Industry Explorations Global Business Reports CHILE MINING 2021 83 INTERVIEW Global Business Reports Industry Explorations INTERVIEW

What has been Liebherr’s biggest maintenance accordingly. We are con- milestone since its establishment in stantly developing this system to im- Francisco Errázuriz Chile in 2001? prove. A turning point for us was our second & Jorge Ríos contract with Codelco at the Radomiro Did the pandemic accelerate the move Tomic mine, which led to our third at towards autonomous mining in Chile? Collahuasi. In October last year, we The Chilean mining industry was already started the ESTRS trial in Escondida leading the way to develop more au- FE for BHP to determine their future truck tonomous type mining before the pan- FE: CEO requirements, another great milestone. demic. However, as social distancing We also developed our ultra-class exca- measures were enforced, there has been JR: Commercial Manager vator fleets, firstly with Thiess entering a stronger emphasis on autonomous mi- SKC MAQUINARIAS CHILE in the market in 2017. Last year we were ning equipment as the mines wanted very pleased to deliver the first R9800 to minimise the exposure of their work- 800 tonne excavator for Liebherr in force. For Liebherr, it is also important JR North and South America to BHP at the to consider that the autonomous tech- Dale Spence mine. nology and new developments need to demonstrate benefit to the operations Could you provide us with the company’s most recent de- What can you tell us about your after-sales services and Clayton How was Liebherr able to maintain and not solely a reduction in personnel. velopments? their significance to your Chilean operations? supply chain continuity in the face of We also believe that in the upcoming FE: Distribution and rental are our main businesses. When we FE: Our supply network is composed of 11 nationwide branch- the pandemic? years, the mining industry will struggle last spoke, we were experiencing a boom in mining. All the es offering product and after-sales support. We also have on- The management team’s focus was first to find people that want to work on markets related to mining have fallen since. We continue to fo- the-ground mechanics who work for SKC to provide preventive to ensure the safety of our people. For mine sites and will prefer to be in ma- cus on making the company sturdier and more efficient. The maintenance to machinery and advise clients accordingly. TPS spare parts supply, we have a very ad- jor cities. This will only push the indus- company’s cash flow processes have been developed through and other LEAN processes are very important in allowing us to vanced planning department and, with try towards processes that rely less on digital transformation and LEAN Technique. The pandemic ac- provide better support to our clients. this, we project our parts usage 18 a physical presence in the mine. Even celerated industry trends such as remote operations and elec- JR: We are focused on improving the uptime of our products months in advance. There were some though the skill dynamic and distribu- tric mobility. Augmented reality is a process we are using to pro- by focusing on strengthening the company’s client-attention ca- Managing Director delays in deliveries of spare parts, how- tion will change in the upcoming years, vide assistance and technical support to our clients. Fortunately pabilities and prioritizing the incorporation of technology. It is LIEBHERR CHILE ever we managed to use our existing the mining industry will remain a very for Chile, the country is geologically endowed and conditions very important for the company to help operators improve their stock in Chile to compensate. We also large employer. At Liebherr, we have are favourable for mining. For this reason, the country is pro- productivity. SKC helps companies become more cost-efficient adjusted our orders in 2020 to account continued with our apprentice and train- jected to benefit from technological advancements. We must and improve safety. We use a set of key indicators to monitor for increased lead times from our suppli- ing programs so we have the necessary set the stage by promoting the cultural habits that will ensure progress in matters of safety and the environment. ers because of Covid. In 2021, we con- skills for this future workforce. a swift transition. tinue to use these adjustments to our JR: We are undergoing an important process of transformation, Where do you see the highest growth potential, and what processes to maintain parts supply. Where does Liebherr see the highest and our focus is to work closely with partners and manufacturers is your strategy to facilitate this growth? growth potential in Chile? to align our objectives. FE: Chile’s investment plan for the next five years accounts for Automation is playing a greater role in We will continue to consolidate our truck US$70 billion, of which 36% is dedicated to mining, 29% to The Chilean mining industry the Chilean mining industry. How does fleet. In terms of volume, we expect our What does SKC offer in the autonomous machinery space? public works and 14% to energy. The project pipeline is strong. was already leading the way the technology Liebherr provide allow trucks to remain the major part of our FE: Remote-controlled machinery is crucial in today’s mining Although we have exposure to mine construction, our business to develop more autonomous it to differentiate itself in the market? business. However, we forecast demand environment. Equipment diagnosis, for example, is a task that focus is projects already in production that require maintenance. We are witnessing an increasing de- for growth in our excavators and dozers is done increasingly through remote means. Brands are devel- We believe that SKC must generate new business, primarily by mining before the pandemic, mand for automated products in Chile, as well and we are very keen to expand oping products with a focus on track-and-trace and telemetry in making using of digital capabilities. Despite the challenges that however, as social distancing especially for autonomous trucks and this area of our business. Liebherr’s elec- order to monitor equipment better and conduct maintenance are in store for Chile and the world, we are optimistic because measures were enforced, smart equipment. Liebherr made the tric engine options for our excavators al- proactively. Our office handles remote maintenance for the ma- there are interesting opportunities. We must move aggressively there has been a stronger decision early to offer our truck auton- low for a unique position in the market chinery we commercialize that incorporate these technologies. to become a service-provider involved in helping clients navi- omy packages via an open protocol phi- as it offers a more sustainable solution gate operations and taking care of their needs holistically. emphasis on autonomous losophy, allowing our customers to use than diesel-powered engines. We in- To what extent has the industry recovered from the pan- mining equipment as the our truck with any management system tend to follow the same pattern with our demic? Do you have a final message to our international reader- mines wanted to minimise the available on the market. This gives the trucks and are working hard on alternate FE: Mine production in Chile was less affected than mining ship? exposure of their workforce. mines more flexibility as they are not propulsion options. We already have elsewhere in the world. However, mine construction activities in FE: Adaptability is the most important company trait in today’s bound to one OEM supplier. trolley assist systems operating in other the country were severely impacted and even halted. In gen- business environment. We must focus on listening to clients in We also offer our LMD system (Liebherr parts of the world, which significantly re- eral, however, recovery has been rapid - thanks to the strong order to discover opportunities for collaboration and improve Mining Data) allowing data from the duces the fuel needed to operate a fleet rebound of copper prices that reached an all-time high. Regard- our capacity to be adaptable. We want to incorporate techno- equipment to be analysed remotely, of trucks. Our industry continues to- less of whether or not we are in a super-cycle, we must make the logy and tools that can make SKC stronger. One major focus as opposed to physically downloading wards a sustainable future that will thrive most of these prices. Fortunately, the market recovered quickly, for SKC is to place the employee experience at the top of its the data from the truck. This allows us on various technological advancements and the forecasts going forward are also encouraging. We ex- priorities. Teamwork has become a central part of our work to send data on a truck’s status so we and Liebherr will be at the forefront of pect strong demand for copper and lithium to satisfy the world’s preparing staffs towards innovations and new technologies en- can study the truck’s parameters to plan this development. ■ electric mobility needs. abling our company to seize greater business opportunities. ■

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Image courtesy of DSI Underground is SAG milling, however, there are more Meanwhile, Metso Outotec is minimizing Underground Comminution than 20 variations or alternatives to it. energy consumption and downtime in The SAG circuit is considered due to its ca- crushing processes by relying on perfor- and Material pacity to process high tonnages. However, mance centres to remotely monitor the Equipment it is one of the most inefficient circuits of crushers. “The size of the particles enter- comminution. If the ore characteristic al- ing and leaving the crushers and mills can Handling lows for it, then the use of high pressure be controlled online,” elaborated Eduardo grinding rolls is more energy-efficient. Nilo, general manager of Metso Outotec Hofmann Engineering is investing in inno- in Chile. “We developed sensors for ana- TECHNOLOGICAL ADVANCEMENTS vations in HPGRs. “We are always looking lyzing particle size on trucks (VisioTruck) TO LOWER CARBON FOOTPRINTS at opportunities to carry out product im- and on conveyor belts (VisioRock and Rock provement on the components we manu- Sense), which are based on image analysis AND INCREASE EFFICIENCY facture through redesigning, using better using camera or laser technologies.” Autonomous solutions in drills, trucks materials, heat treatment and machining As for innovation in mills, ME Elecmetal is and scanning technology for under- Concentration begins with comminution, processes to aim for longer lifetime and using sensors to reduce downtime by en- ground mines in Chile are of increasing involving crushing and wet grinding, which therefore lower operational costs,” com- suring the right amount of tension on the relevance to the mine’s demands. For consumes around 50% of mine site energy mented Simão Antunes, general manager bolts. The company launched several ini- example, Sandvik is providing automat- and is the process representing the larg- of Hofmann in South America. tiatives to introduce smart mill liners. “ME ed underground loaders and trucks to est or second-largest capital and operat- On the other hand, Weir Minerals supplies PolyFIT products are part of a new gen- Codelco’s El Teniente and Chuquicama- ing expenses. Considering the energy-in- Enduron HPGRs, which maximize crushing eration of mill liners that combine different ta. Epiroc is offering battery-powered tensive nature of comminution, the circuit pressure using large lateral walls to ensure materials including rubber, castings, steel underground loaders, drills and trucks design of the process can make or break the materials do not exit the high-pressure plates and ceramics among others, that fit in Chile. DSI Underground, which was an operation’s profit margins, which is de- area without undergoing crushing first. each operation depending on the type of recently acquired by Sandvik, recently cided upon primarily based on the ore’s As a result, it decreases energy consump- ore and operational conditions,” elaborat- introduced to the undergoing mining characteristics, plant capacity and product tion by up to 40% compared to traditional ed José Pablo Domínguez, general man- equipment market an alternative to size. A traditional option for circuit design grinding circuits. ager of ME Elecmetal in South America. ■ steel vents known as the Flexline and semi-rigid Hardline flexible vents, un- der its JV with ABC Canada. “Our vane axial fans are very aerodynamic and use less energy than models of older technology,” explained Carlos Leigh, the regional CEO of DSI Underground in LATAM. “The flexible ducts are made exclusively for mining with resistance to mining conditions, reducing energy consumption, and maintaining good ventilation for the miners, thus increas- ing work safety.” Another promising innovation in under- ground mining is that being offered by Züblin is the Photo ADAM technology for photo mapping. Mario Theurl, tech- nical manager at STRABAG Züblin, ex- plained: “The software allows for imag- We see the market recovering at its own pace for 2021 as es to be overlapped with one another mines across LATAM reactivate their operations, slowly in to create 3-D models for geological and geotechnical analysis.” some cases. In some tunnelling projects we expect some Overall, the trend we are witnessing in delays as a result of environmental approval processes. underground equipment technology is the increasing reliance on unmanned - Carlos Leigh, machinery in addition to the use of AI and IoT. Driving innovation is the need Regional Chief Executive Officer LATAM, for safe underground mining with mini- DSI Underground mal waste production. The global un- derground mining equipment market in Chile is to witness considerable growth between 2021 and 2022. ■

86 CHILE MINING 2021 Industry Explorations Global Business Reports CHILE MINING 2021 87 INTERVIEW Global Business Reports Industry Explorations INTERVIEW

To what extent did the Covid-19 out- continuous online measurement of cyclone Ricardo break impact Metso’s operations? air-core shape, size and location based One of the main challenges was to main- on process tomography, helping find and Garib tain the operational continuity of our cli- maintain the optimal operating point for ents’ tasks without the physical presence the hydro cyclone. Additionally, the mea- of our experts. Due to movement restric- surement system helps detect potential tions, it was necessary to apply innovative issues, such as wiring, and prevents them measures to continue providing know- from occurring. President how through remote assistance methods. In advanced process control, Metso Outo- Therefore, our remote-control solutions tec offers OCS-4D & ACT as an applicable WEIR MINERALS offered us an excellent opportunity to ful- optimisation system for all mineral process- fil our objectives more flexibly than in the ing operating units. Ensuring stable condi- past. tions in mineral processing circuits, optimal particle size for downstream processes, What are the latest technological deve- higher throughput, and the recovery of lopments in crushing and grinding pro- metals and water with minimal energy use Eduardo cesses using automation? are critical factors for our customers. Re- What is the role of Weir Minerals in supplying our customers around the ter is scarce. Our partnership with An- To minimize downtime, Metso Outotec garding milling, our APC system uses data the Chilean mining industry? world. Finally, we were able to leverage dritz allows us to offer complete tailings Nilo is using performance centres to remotely optimization particle size feed RockSense, Weir Minerals is the leading provider of our Synertrex Digital platform to moni- solutions to the mining industry, as they monitor customers’ crushers. The machines load analysis MillSense and particle size equipment for any wet substances such tor and support equipment remotely. supply dewatering technologies. Under are equipped with sensors and critical measurements sludge PSI, and other met- as slurry or water. We supply equip- the brand name IsoDry we offer custom- maintenance-related data, such as bearing rics available online. ment to transport these substances, as Can you elaborate on some of the ers a range of mechanical separation temperatures or vibrations, is collected re- During crushing, VisioRock and RockSense well as pumps, valves, compressors and technology you use to increase op- technologies, such as thickeners, filter motely. Our team of experts provides ana- help adjust the crusher to compensate for turbines. The company consists of three erational efficiency in your processes presses, centrifuges and vacuum belt lytical dashboards that detect anomalies in wear and control product size. Level sen- divisions: the minerals division, oil and and equipment? filters, reducing the size of the tailings trends and alarms to take timely preventive sors monitor tank and crusher fill levels. gas, and the ESCO division. A decision Our Synertrex platform relies on ad- dam to a tenth of what it used to be. actions and avoid costly downtime. When the shredder is equipped with a vari- General Manager has been made to divest our oil and gas vanced IIoT (Industrial Internet of The size of the particles entering and able frequency drive (VFD), speed can be division, so we will focus solely on mi- Things) technology, using a cloud and What are the main challenges facing METSO CHILE leaving the crushers and mills can be con- used as a shredder control variable based ning. We can supply the mines from the smart sensors placed on the Weir prod- the mining industry in Chile today? trolled online. We developed sensors for on feed and product size sensor readings. pit to the comminution and processing uct. It collects vital operational data that The mines are located in remote areas, analyzing particle size on trucks (VisioTruck) For primary gyratory crushers, the Smart- of the plant, providing our customers is transformed more visually to the cus- where talent acquisition is difficult, es- and on conveyor belts (VisioRock and Rock Station concept has been introduced, with a solution. tomer through a digital interface. The pecially since today’s workforce, due Sense), which are based on image analysis which allows the control system to dynami- In 2014 we acquired Trio, a Chinese- service provided by the platform allows to Covid, is unwilling to relocate to the using camera or laser technologies. Metso cally adjust operating parameters to im- American manufacturer of crushing and problems to be identified before they site for long periods. Therefore, re- Outotec’s PSI technology enables the par- prove efficiency and promote longer prod- separation equipment for the mining occur, reducing downtime and optimiz- garding labour, the industry is finding ticle size of grout in grinding circuits to be uct life and overall equipment protection. and aggregates markets. More recently, ing equipment performance throughout it challenging to retain talent. We are measured online. in 2017, we acquired Esco, a leading a circuit. Equipment wear and tear can witnessing changes to the mining work- The MillSense sensor provides information Where does Metso see the highest US-based manufacturer of Ground En- be easily controlled, and trouble spots ing culture with increasing digitalization on the mill’s ball load, allowing the mill to growth for 2021 - 2022? gaging Tools (GET) for the mining and can be detected before they become as many mines are operating their mines The size of the particles always run at the optimum ball load. A At Metso Outotec, the focus of our work construction markets, which operates as major problems. As the mines are maxi- from control rooms in Santiago, such SmartEar acoustic sensor detects whether is to provide our clients with tailored so- a separate division under Weir. mizing operational efficiency and prof- as Codelco’s Hales. Secondly, energy entering and leaving the the mill is under or overloaded. Both con- lutions according to their needs. Today its, we support them as our service team consumption is another challenge that crushers and mills can be ditions reduce grinding efficiency, and the we have more than 15,000 professionals How did the pandemic impact your is on call to ensure no time is lost. How- is being overcome by the shift towards controlled online. We developed lightly loaded mill can lead to premature in more than 50 countries. From the first operations and the Chilean mining in- ever, even though the industry is accept- renewable energy sources. Finally, the sensors for analyzing particle wear and, in extreme cases, shell cracks, day of the recent merger, we have used dustry from your perspective? ing digitalization today, it is lagging in social license to operate and incorpo- which can be avoided by monitoring the and combined our strengths to form an We are fascinated by the resilience the the implementation of technology rela- rating communities into the operations size on trucks (VisioTruck) and sound. outstanding team of professionals with Chilean mining industry has shown amid tive to other industries, as it preferred to continues to challenge the industry. on conveyor belts (VisioRock The operating conditions in the hydro knowledge and experience and an offer the pandemic, considering its impact on rely on more traditional operations. and Rock Sense), which are cyclone process directly impact the avail- of high-end equipment and technology to mines around the world. The industry What goals would you like to achieve based on image analysis using ability of the plant and the efficiency of support clients. globally adapted to the circumstances How does your recent partnership as Weir Minerals over the next three the grinding and flotation circuit. Our new I believe that the tremendous technologi- and recovered, especially as commodity with Andritz better position you in years? camera or laser technologies. CycloneSense metering system will help cal capacity and the development of new prices rebounded. the market? Weir Minerals wants to increase its pres- ensure continuous optimal hydro cyclone tools that Metso Outotec offers will make From Weir Minerals’ perspective, the Mining companies face immense chal- ence as a reliable partner in mining op- operation by providing direct, steady and the mining industry more sustainable. We pandemic confirmed the importance of lenges with regards to the social license erations. As the mines focus on produc- reliable online monitoring of the hydro cy- will be a company that will contribute to our workforce’s wellbeing to our orga- to operate. Therefore, they must imple- ing the minerals, we want to continue clone air core. Our unique technology will the development of professional techni- nization. Secondly, amid the delays and ment sustainable water management providing support and the solutions allow you to see inside the hydro cyclone cians with a thorough knowledge of the closures, we persevered and continued solutions, especially in Chile, where wa- across the operation. ■ and visualize its performance. It enables latest technological developments. ■

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What facilitated the company’s growth Where do you see a high growth poten- Fernando de la Lastra Simão beyond Australia? tial for the company in South America? The Hofmann family wanted to grow the The South American market holds signifi- & Joerg Antunes business, so we targeted markets with a cant potential for our expansion. We are high potential for growth worldwide and established in the markets with the biggest expanded to other strong mining markets potential: Chile and Peru. In Peru, we fore- von Loebenstein such as Asia, Africa and particularly South see rapid growth in the near future. We are FL America, where we have been operating also attentive to the Brazilian, Colombian, FL: General Manager and Co-Founder for over 30 years. Mexican and Ecuadorian markets, where General Manager South America Nowadays we are well established and we operate on a smaller scale through JL: Engineering Manager and Co-Founder with modern workshops and skilled teams agents or directly. HOFMANN ENGINEERING TECNIPAK in Chile and Peru assisting both mobile mi- ning and fixed plant equipment. Do you have a final message to our in- ternational readership? JL What differentiates Hofmann Engineer- We now have seven factories around the ing in the competitive sphere? world (currently building the 8th) and What is the role of Tecnipak in Chile’s superior products. We also incorporate which allows the transport of a larger Our products are known for their quality South America is a significant market for mining industry? sensors and automation to monitor and amount of ore in less time, increasing because we constantly invest in product Hofmann Engineering, already represent- JL: Tecnipak serves the agricultural and adjust the belt cleaners remotely, giving productivity, reducing wear and generat- improvement and use the best manufac- ing 25% of the company’s turnover. We are mining industry, specifically mineral pro- the operator enhanced safety and con- ing less dust. turing processes in house. However, an- witnessing our South American operations’ cessing plants in mining. Mining repre- trol. other way we differentiate ourselves is via fast growth annually, which speaks of our sents approximately 50% of our sales. How is Tecnipak looking to grow in our unique customer service experience products’ quality, price and service level in We identified a niche in the transfer How does Tecnipak position and dif- the upcoming years? and we leverage our network of sales and such a competitive market. chutes of conveyor systems in mineral ferentiate itself in the market? JL: Our strength is in catering to the technical engineers who are as close to the Competition in the market is healthy, transport. Initially, we started supplying FL: We managed to differentiate our- large hard rock mining operations, where customers as possible. Hofmann is also in- drives innovation and efficiency to finally parts, however, we are now leaders in the selves by finding new and innovative we have a domestic market share of 45- vesting in keeping stock in South America benefit customers. ■ design, engineering and manufacture of solutions to global problems. Tecnipak 55%. We see room for growth in foreign – in Chile and Peru, to have components complete equipment for transfer points is always at the site with our clients, un- markets with similar large-scale opera- available and reduce lead times. and chutes. We also provide several derstanding their needs to combine their tions, such as Australia, Peru, Brazil and components to better streamline and field experience with our technical exper- Canada. increase the efficiency of mineral trans- tise and implement advanced solutions. FL: Despite seeing the potential for port, including a full line of belt cleaners JL: Tecnipak targets a niche market as growth in other markets, we consider What are Bosch Rexroth’s most recent leverage smart electronic sensors, sup- and speciality wear plates. Tecnipak cu- opposed to competitors. It is hard to Chile a world leader in technology for Marcelo developments since 2019? ported by our IoT-ready Online Diagnos- rrently works with all major mining com- compare us to other providers because copper production, and therefore, when This year we celebrate our sixth anni- tics Network (ODiN) for hydraulic power panies in Chile. their products are more generic, for less our technology is successful in our coun- Celis versary in Chile. We developed our en- units and Condition Monitoring premium demanding bulk handling environments try, this serves as a good reference when gineering capability in mining and pulp (CMp) for Hägglunds drives, enabling Why did you incorporate the use of in a much broader array of markets. entering overseas markets. and paper with Hägglunds to rely on instant analysis and predictive mainte- black ceramic and stainless steel into technology using IoT for predictive analy- nance. The second trend we witness is the belt scrapers? Can you elaborate on Tecnipak’s Do you have a final message to our sis (Condition Monitoring premium). We an emphasis on specialized field service JL: We use different grades of stainless curved wear plates efficiency and ca- readership? also developed our independent after- contracts, demanding an increase of steel because the environment is corro- pabilities? JL: Mining is a risky activity that can be General Manager market service, including pumps, motors, product knowledge and on-site technical sive due to the chemicals of the mining JL: The conveyed material is directed negatively perceived due to its environ- BOSCH REXROTH gearboxes, mobile controls for shovels, support that secures process reliability. process that wear the coatings rapidly. from one belt conveyor to another or mental impact. Tecnipak’s mission is to drill rigs, loaders and trucks equipment. Finally, certified service repair is another High-grade stainless steel guarantees a to a crusher, mill or stockpile, and this provide mining companies with reliable Lastly, we strengthened our service work- trend we are seeing, which is crucial for long lifespan of our components - over requires transfer chutes. These chutes equipment that can help them reduce shop in Antofagasta to include central- the product lifecycle, especially to re- at least five years. Black ceramic is used have curved surfaces called “deflectors” pollution and increase productivity and ized support and provide the-best-in- duce costs and the environmental foot- for the cleaning edge due to its wear inside, which are lined with wear plates. safety. We have a lot to offer in this sense, class repaired components, all of which print. resistance and strength against heat Deflectors have a curved shape because especially in large scale mineral process- will be reinforced soon with an special- and chemicals. Our products are typi- the transfer of the material does not go in ing operations, where 30% to 50% of ized field service team that will support Can you elaborate on the digitaliza- cally more expensive than those of our a straight line, but the wear plates used unplanned downtime can be traced to our Hägglunds installed bases in Iquique, tion of connected hydraulics offered competitors, who target more generic to protect the surface of the deflector are malfunctioning transfer chutes. Calama and Antofagasta. by Rexroth? processes, while Tecnipak tailors to the usually flat due to convenience in manu- FL: Tecnipak also aims to incorporate Bosch Rexroth is leading industry 4.0 with needs of the Chilean mining industry’s facturing. Tecnipak has been a pioneer technology to minimize direct human What are some of the demand trends connected hydraulics, with CytroBox and huge processing volumes. Along with by succeeding in making curved wear intervention in transfer chutes and their you are witnessing this year for your CytroPack, under the CytroConnect con- black ceramics, we have borrowed many plates that gradually redirect the ore so supporting equipment. Through our services? cept that uses state-of-the-art IoT-ready materials from the aerospace and de- that it flows towards the next equipment technology, we hope to provide the abil- The mining industry in Chile and globally technology providing functionality and fence industries to combine them with in a convenient manner. With this shape, ity to manage conveyor transfer chutes, is headed towards machine moderniza- health data that can predict unplanned smart assembly techniques to provide we have made the transition more fluid, regardless of their location, remotely. ■ tion. Our Rexroth connected hydraulics system downtimes. ■

90 CHILE MINING 2021 Industry Explorations Global Business Reports CHILE MINING 2021 91 EDITORIAL Global Business Reports Industry Explorations INTERVIEW

The use of Miguel Ángel data analytics Peña

VP of Innovation and Start Ups ENAEX

Data has been granted the title of ‘the cially since data and analytics tools are new gold’ in recent years, as its pro- still at the beginner stage in the indus- cessing and analysis can lead to con- try. Many companies are still working What have been Enaex’s most recent developments? process efficiency. We have developed the Safelock system, siderable improvements in operations on the advancement and development Enaex has been working very hard on flight tests with our ro- which locks the detonator in the booster, thus avoiding de- and efficiency as well as reducing costs. of data analytics tools across machin- botics. 2020 was a challenging year due to the pandemic, and coupling and making the priming operation more secure. We Data is relevant to every stage of mi- ery and equipment components, such mines were operating cautiously, so we could not undertake have also demonstrated the increased safety and productiv- ning, from exploration to production as Fast Pack, Bosch Rexroth, Outotec any testing in clients’ mines and some of our plans were de- ity aspects of electronic detonation. Our electronic wireless and mine closure. It is also pivotal in Metso and Weir Minerals. ferred to 2021. However, in the case of Enaex Bright®, we man- system communicates with a digital blasting system located enhancing operational safety during The prevalent use of real-time data ana- aged to complete some testing in some mines to achieve the a few kilometres from the blasting zone and is controlled by a blasting in underground and open-pit lytics in the mining industry is to pre- completion of some of its libraries/modules. wireless communication protocol specifically developed and operations. “The mining industry today dict when a piece of equipment or ma- This year, we will be testing our robotics developments in vari- optimized to ensure safe, reliable, and synchronized opera- leverages vanguard technologies in its chinery could fail. For example, Bosch ous underground and open pit mines. We are also pushing tion of hundreds of detonating elements in open pit mines. processes, such as automated or re- Rexroth uses Internet-of-Things (IoT) in hard to research new blasting agents for the mining market. In partnership with SRI, we have also launched Robominer®, mote-controlled machinery and smart its connected hydraulics solutions to Enaex also expanded its presence to Australia and South Af- which has technology designed to improve safety for miners sensors for the collection and analysis predict unplanned system downtimes. Chile is becoming a rica. We will continue with R&D activities in Chile and will then while also expanding access to minerals in complex and harsh of large amounts of data,” stated Ro- Weir Minerals also leverages IoT with export these technologies. environments. Robominer® in open pit mines and our UG- berto Saragoni, operations manager of smart sensors on its products. “It col- technological hub as one itruck® for underground mines will both remove people from Sistemas de Transporte de Materiales lects vital operational data that is trans- of the few Latin American Can you elaborate on the company’s strategic partner- risky zones. Robominer® works with our Mine-iTruck®, a mobile (STM), a bulk material handling equip- formed more visually to the customer countries with fast ships regarding robotics? explosive manufacturing truck in field operations but without ment provider. “Real-time data from through a digital interface,” elaborated advancement towards As a subsidiary of the Sigdo Koppers Group, Enaex has a mix- people on site. Regarding underground applications, I have to these sensors attached to material Ricardo Garib, president of Weir Miner- ture of partnerships. Through acquisitions and joint ventures, mention our new initiation system solution for tunneling devel- handling equipment helps to optimize als. “The service provided by the plat- 5G. As a reflection of this, our strategy is to continue strengthening our international opment which will generate an increase in productivity. performance by reducing maintenance form allows problems to be identified five submarine cables are presence in the most important mining regions of the world. stops.” before they occur, reducing downtime currently being built in Our partners include SRI International, ASI Robots, Corfo, How important is cybersecurity when moving towards AMTC (Advance Mining Technology Center), GHH, Thecne According to Eduardo Gorchs, CEO and optimizing equipment perfor- Chile. Digitalization and data more autonomous and digitized operations? of Siemens in South America (without mance throughout a circuit. Equipment and SK Godelius. We are continuing to partner with start-ups Cybersecurity is paramount. Enaex is in conversation with one Brazil), Chile is leading the digitization wear and tear can be easily controlled management are growing (Dronia, etc.), academic institutions (Pontificia Universidad of the leading communication network providers in the world efforts of data acquisition and analysis and trouble spots can be detected be- exponentially, together with Católica de Chile, Santa María Technical University, etc.), and to understand how we can assist mining companies. We are in material handling. “Peru is seen as a fore they become major problems.” remote work due to the large companies to explore new areas which will complement implementing a very robust plug and play system in mines that world leader in digital mining, but many Even though the use of data will revo- our core business capabilities. With regards to start-ups, we offers operational efficiencies but is also high security. digitalization technologies for mining lutionize mines’ efficiency, it is chal- pandemic. are looking at companies that can assist us in the development are developed in Chile as a hub,” he lenging to source data from multiple of IoT, AI and augmented reality. From a research perspective, Where does Enaex see the highest potential for growth? confirmed. “One of these digitization platforms and equipment onto one sys- partnerships with academic intuitions have been extremely Our robotics solutions can significantly increase productivity, initiatives is conveyer belt monitoring, tem to make informed decisions. The - Dante Arrigoni, helpful. and we want to continue with R&D to keep innovating and pro- where data is sent to a cloud system industry has only scratched the surface vide better solutions to the market. There is also tremendous Director, which allows for building a digital twin of data analytics and there remains sig- What are Enaex’s innovations to enhance safety and pro- growth opportunity with regards to sustainability as we want of the conveyer itself.” nificant room for development. For ex- Grupo Arrigoni ductivity? to become a leader in offering sustainable products to the in- The amount of data collected every day ample, an area of potential growth us- Safety and an exponential increase in productivity are vital for dustry. We are focused on energy savings and the reduction of at mine sites is immense, and it is diffi- ing data analytics is the logistics aspect Enaex, and we have an ongoing development process focused emissions, and we constantly work to improve all activities re- cult to identify which could be of use to of the industry, which tends to be the on the delivery of new products and services that address lated to sustainability. The electromobility for our equipment enhance operational efficiency, espe- most inefficient process.■ specific problems and innovatively contribute to production is also an area of growth that currently has our attention. ■

92 CHILE MINING 2021 Industry Explorations Global Business Reports CHILE MINING 2021 93 EDITORIAL Global Business Reports Industry Explorations INTERVIEW Image courtesy of Enaex Andrés Costa

Managing Director SGS CHILE

Can you introduce to us SGS in Chile even further. Some of the modifications solutions allow for the rapid processing and its role in the mining industry? we introduced include remote inspec- of samples and data, especially when SGS is a world leader in the provision tion and the elimination of closed space taking into account the rapid commu- of TIC (Testing, Inspection, and Certifi- offices. We developed a single open nication technologies under develop- cation). Our services are primarily dedi- space office called "Co-Work" where ment, such as 5G. cated to the mining industry in Chile, our employees can work as a flexible cell representing 90% of our sales. We have and connect physically when they need Which of SGS’s services has been the a whole metallurgical department dedi- to. most popular in the Chilean mining in- cated to assisting customers in improv- dustry recently? ing their mineral processing. Meanwhile, To what extent are you integrating SGS Eng & Optimization area has been our geological department provides cer- technological platforms into your ser- developing an Asset Integrity monitor- tificates for exploration, and the engi- vice offering? ing project in a remote manner, model- neering department supports brownfield SGS communicates with clients using ling the performance of critical assets projects. SGS covers the entire mining an online platform where they can eas- supporting operational continuity and value chain from exploration until certi- ily access the testing process, results FTEs reduction. In addition, our metal- fication of final product in mining ports, and timeline from any device. We also lurgical support has gained more trac- Barriers and challenges to passing through plant design, engineer- offer remote certification and assistance tion recently, as we offer a comprehen- ing, processes control and optimization, where the laboratory equipment can sive range of unit operations in support modelling for production plans, and clo- be connected from a distance to move of flowsheet development and metal- mining technology sure. In Chile we are currently increasing data and analyse it. While all of these lurgical process design such as flotation, our capabilities in other areas like Big processes were available as part of our comminution and beneficiation, grav- Data and AI, leveraging the global SGS offering in the past, companies started ity separation and others. We are also There is no doubt that the industry is supplier is granted a certificate, and as well as expats from Venezuela in the knowledge from areas different than mi- paying more attention to these services witnessing that the geological aspect keen to promote and incorporate tech- proceeds with commercialization sepa- case of El Escondida,” commented Izzo. ning because we see significant room for in 2020. Mining companies were more of mining in Chile is becoming increas- nologically advanced equipment and rately.” Finally, another challenge and risk that adding value to our mining customers cautious and conservative in the past re- ingly challenging for both open-pit and machinery into its open-pit and under- Following the successful trial of the tends to be overlooked as mining com- with this expertise due the complexity in garding sharing data. underground operations. Therefore, we ground operations, however, it remains new mining technology, the next step panies move to modernize their mines copper ore bodies today. SGS is looking for partners in AI in Chile see a growth potential for our services risk-averse regarding introducing or is more crucial: implementation. This is cybersecurity. As the industry opens and elsewhere to advance and develop in this aspect. allowing piloting of new technologies stage could pose a challenge to the up to internet-connected technolo- How did you maintain business conti- further its digital offering. at mine sites, which is key to develop- process if the workforce lacks the nec- gies, it also opens itself up to cyberat- nuity amid the pandemic? Where does SGS see the highest ing any new technology. Therefore, essary skills to correctly execute it. The tack vectors that must be addressed Our priorities at the beginning were Can you elaborate on SGS’s mobile growth potential in the upcoming new technologies must be introduced implementation process challenge was through proper internal controls, or focused on maintaining our support laboratories solution? years? through cooperation with piloting cen- amplified under the health crisis’ travel else it risks crippling operations by a service to our clients while keeping our Previously, we operated using a cen- We want to utilize our capabilities to tres, such as Ciptemin. “Ciptemin is restrictions. Sandvik, for example, re- single attack. staff safe, supporting a strategy of head- tral laboratory where all the collected facilitate our growth by satisfying the financed publicly and focuses on pro- sponded by establishing the Sandvik Ramon Opazo, CEO of Antirion, a count reduction on mine sites as well. samples were analyzed. Today, we offer needs of our customers to the highest viding the means to trial mining techno- Digital Training Centre, allowing for leading software provider for mining We implemented some radical changes solutions such as a laboratory owned by degree possible. It is effortless for com- logy,” explained Cynthia Torres, execu- remote training options for employees companies in Chile, stated: “The Chil- and modifications to our day-to-day ac- the customer on-site, while we provide panies to declare their operations as sus- tive director of the company. “We offer and customers’ technicians. ean mining market is aware of the im- tivities to continue operating since the the expertise and analysis services. An- tainable, but actually to act upon it that test spaces imitating real operational Meanwhile, Epiroc has a new approach portance of preventing cybersecurity mining industry and production were other creative solution we implemented is what differentiates corporate cultures. conditions at the industrial and semi- to ensuring a highly-skilled workforce breaches. There is an improvement in not halted. The market has undergone is SGS’s mobile laboratory, which moves SGS is determined to innovate in a sus- industrial level so that the supplier “We are recruiting professionals from technological culture; however, we massive changes in the last two years flexibly to different sites, taking advan- tainable manner and live up to its sus- can validate their solutions. Once the other industries such as communica- believe that progress can be made in regarding the manner of communication tage of our expertise and experience in tainability promise to become the ideal technology is tested successfully, the tion who quickly adapt to the software, some areas.” ■ with clients, which Covid-19 accelerated real-time at the remotest locations. Both partner in the mining industry. ■

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automation and electrification including Which of ABB’s technologies has gained mining companies. Can you elaborate on the NASAP tech- Marcelo services. Second, we have a motion busi- traction during the pandemic? Carlos nology GEOCOM offers and how it en- ness through which we supply drives and Automation solutions have been becom- Can you elaborate on the contribution hances efficiency? Schumacker motors. Our third line of business is related ing progressively more popular throughout of ABB to Gold Fields’ Salares Norte Escudero Several mines in Chile are located in the to electrification, through which we offer the years, much before Covid-19. How- project? Andes Mountains at high altitudes, where low and medium voltage products. In this ever, the pandemic has changed circum- Gold Fields’ Salares Norte mine is a pio- snow in winter impact operations. This was area, we made a large acquisition of GE In- stances radically and has given our clients neer in the incorporation of new tech- our first comprehensive development for Country Division Manager dustrial Solutions. Finally, we are active in an inevitable push towards the adoption of nologies and innovative solutions. ABB mining to navigate machines to help in ABB CHILE the robotics sector. new solutions to counter challenges such is currently working on the electrification General Manager removing the snow from the roads more as social distancing. and automation of this project. We will GEOCOM safely. This is our HUSKY product. With What have been the company’s main provide a digital solution based on Abil- this knowledge we developed new prod- milestones in the last 12 months? What is the extent of digitalization in ity™ 800xA, including hardware and soft- ucts such as NASAP, which uses HP-GNSS ABB has been involved in the automation Chilean mines? ware, as well as six electric houses of ap- technology and other sensors and comms. and electrification process of Gold Fields’ The level of digitalization in Chilean mines proximately 700 square metres, with their This technology is used in drills to navigate Salares Norte mine. We have also been en- is remarkable and is reflected in projects by electrical equipment, for the distribution of and guide them precisely to each borehole gaged in Codelco Chuquicamata’s project companies such as Gold Fields who are in- low voltage and medium voltage. In fact, and gather critical information for drilling of ventilation on demand, where this solu- corporating solutions of energy efficiency, we have worked with Claro and Nokia to and blasting operations. tion could provide savings of 30-50% in asset management and digitalization. As a carry out the first satellite test for this proj- energy consumption. I must mention that reflection of the willingness to innovate in ect, showing our client how Salares Norte, Is there a market gap you identified that we are working hard to certify in Chilean the industry, Codelco has recently signed located in the isolated region of Atacama, you are conducting R&D for at the mo- Standard 3262 on Gender Equality and a Memorandum of Understanding with an can be managed from a control centre in ment? Conciliation (SIGIGC), working, family and innovation mining cluster from Sweden, Santiago thousands of kilometres away, GEOCOM has a department dedicated to What are ABB’s lines of business, and personal life. supported by Business Sweden, including but within reach of the satellite. Another R&D to develop equipment with the latest how do they relate to the mining sec- Finally, ABB has been involved in the most companies such as ABB and other strate- test we carried out involved the use of 3D technology. We are focused on supplying tor? prominent mining construction project in gic partners and providers, with the aim of lenses to show how we can be constantly technology that processes measurements ABB has four main lines of business, all Chile, in Quebrada Blanca Fase 2 (QB2) by advancing on topics such as sustainability, available for our clients, supporting them in the shortest time frame, which is a mar- of which add value to the mining sector. Teck with most of the automation and elec- optimization of efficiency and productivity, through new technologies from Santiago What is the role of GEOCOM in the Chil- ket gap we saw in mining. Mining compa- First, we are involved in process automa- trification equipments portfolio, including and to exchange information and coopera- or from our ABB development units locat- ean mining industry? nies need a technology that saves time in tion, offering systems formed mainly by GMDs, whole automation etc. tion among Coldelco and some Swedish ed abroad Chile. ■ GEOCOM is the leading provider of geo- processing and analyzing measurements, spatial equipment and software used in that usually take over one or two days, so measurements in mining in Chile for the we are looking at more products that allow gearless mill drives installed worldwide are the physical counterpart’s performance automation and electrification. The basis last 35 years, representing and distributing real time processing. in Chile. The latest implementations that characteristics. They are used throughout of digitalization and automation is elec- for world-class suppliers, such as Trimble Another area of research we are focusing Eduardo we have done were for BHP’s Spence mine the product lifecycle to simulate, predict trification, and when you supply energy from the USA, Riegl from Austria, Geoslam on is augmented reality (AR) technology in and Codelco’s Chuquicamata project. Ev- and optimize the product and production from renewable sources, you are enhanc- from the UK, senseFly from Switzerland, DJI mining. This technology can be a game Gorchs ery time we introduce new equipment into system before investing in physical proto- ing operational sustainability. We invest in from China and others. Our goal has been changer in the industry, since it can be a project, we try to involve local know-how types and assets. helping companies become more environ- the provision of the best and latest techno- applied in different areas, such as drilling, CEO South America (w/o Brasil) as much as possible, which also helps to In collaboration with Anglo, we are devel- mentally conscious. Water usage also goes logy available on the market. In 1990, we critical inspection, site operator training, SIEMENS build our team in Chile which nowadays is oping the first digital mine in Peru. hand in hand with sustainability, and there introduced GPS technology in mining and, maintenance and repair as well as real-time fully focused on introducing the concept of is currently a huge trend of desalination in 2000, we installed GNSS reference sta- operator assistance. It will enable remote digital mines. What is the extent of digitalization in projects in Chile. tions on sites. A decade later, we started distance support and provide manage- Chilean mines? We are looking forward to becoming in- providing laser scanners, creating point ment with a real-time visual guide to opera- Can you elaborate on Siemens´ Mineral Peru is seen as a world leader in digital mi- volved in these projects as we can provide clouds for precise measurements. We work tions. The use of AR in mining will disrupt Digital Architecture approach and the ning, but many digitalization technologies solutions for pumping the water to the with large-scale mining companies as well and revolutionize the industry and is set to use of AI and IoT in mining? for mining are developed in Chile. One of mines, which can become quite complex as juniors, as our drones offering is relevant change the future of mine safety. Siemens has an IoT offering, the SIDRIVE these digitization initiatives is conveyer belt due to the high altitudes of Chilean mines. across the industry. IQ, which records all relevant operating monitoring, where data is sent to a cloud Where do you wish to see GEOCOM in and condition data from drive components system which allows for building a digital What is Siemens’ strategy for growth How did the demand trends for geospa- the market by its 40th anniversary? and transmits them to our cloud-based sys- twin of the conveyer itself. There are also for 2021-2022? tial equipment in the mining industry Our teams travel the world to source the tem, MindSphere. This system maximizes significant digitalization efforts to increase From a safety perspective, we strive to- evolve? best technology for the market. We have availability, serviceability, performance and safety with technological apps. wards a zero-harm sustained goal. We also Mining represents 50% of our sales, and as witnessed rapid and sustained growth of What are some of the current projects efficiency. We already have over 20 digi- have a carbon reduction strategy, and we GEOCOM, we have a market share of ap- our business over the last 35 years. Our Siemens is working on in Chile? tization systems running in Chile, and the What demand is Siemens witnessing for strive to be carbon neutral by 2030, not proximately 43% in geospatial equipment strategy will continue to be one that thrives We have been working with Antofagasta demand for these is also increasing in Peru. its products and services, given the in- only internally but also with our customers in Chile. Today's industry is demanding on technology and ensuring a high level Plc at Los Pelambres for several years, and In terms of process, Siemens is using the creasing shift towards sustainability and and suppliers. Cybersecurity is becoming remote control and automated equipment of support to our clients by leveraging the this was our first big maintenance project concept of digital twins. A digital twin is a green copper production? increasingly important as our digitalization in all its processes to minimize the physical unique skills of our workforce, who worked with a significant amount of technology virtual representation of a physical product Sustainability is core to Siemens’ business efforts advance, and our goal is to have presence of workers on-site and optimize on mining sites and are familiar with their involved. Approximately half of Siemens’ or process, used to understand and predict and can be simplified to digitalization, zero cyber incidents. ■ the operation. needs. ■

96 CHILE MINING 2021 Industry Explorations Global Business Reports CHILE MINING 2021 97 INTERVIEW Global Business Reports Industry Explorations THOUGHTS

Carlos Ponce, Can you elaborate on the innovative and Chile, with highly qualified workers, which Concluding Humberto Pasten sustainable sourcing solutions you pro- was constituted sharing practical and tech- vide regarding tailings management? nological information. Mining companies Thoughts HP: In Mathiesen our first objective has can outsource certain activities to these & Jorge Marchant been to focus on optimizing the recovery laboratories to generate data and recom- of valuable elements (Cu, Mo, Ag, Au, etc.). mendations for decision-making. JM: VP Mining Latin America We are promoting products that favor water CP: General Manager recovery and improve the tailings manage- What growth opportunities do you see “The mining industry is one of the pillars of the Chilean economy, with its tentacles HP: Mining Division Manager ment process, as these are essential topics, in Chile in the next three years? spread wide across the nation, supporting businesses in many regions. As a result of MATHIESEN especially in Chile. We work with compa- JM: Mathiesen plans to continue investing its significance, mining production was not halted amid lockdowns, curfews and the nies that are dedicated to tailings manage- in strategic points such as Antofagasta, the outbreak.” ment for the extraction of copper, molyb- center of our regional expansion in Chile. denum, and water elements that have value Recently, we have also invested in a new - José Castillo, through a sustainable exploitation reaction. production plant in the northern part of the Managing Director, JM: Beyond being a supplier of chemical country. We also plan to continue investing Rema Tip Top Chile reagents, our company is constantly look- in technology, innovation, human capital, ing to introduce operational improvements and logistics. HP in the recovery processes of different miner- HP: Given the unique chemical proper- als and to provide support to mining com- ties of mine tailings and the importance of “The industry in Chile is maturing to a large extent, which is pushing it to the realization panies by analyzing mineral samples for its processing, the company also plans to that the cost advantages the industry benefited from in the past are no longer there. This mineral recovery. boost investment in water treatment and to CP is driving innovation to minimize costs and opening the industry for improvement.” search for new chemical products that are Are mining companies increasingly out- more environmentally friendly and improve - José Pablo Domínguez, sourcing their on-site laboratories? the recovery of copper and other second- General Manager South America, JM: In mid-2020, our company invested in ary elements. The lithium industry is a po- JM a laboratory in Peru, like the one we have in tential new line of business. ■ ME Elecmetal

“We will continue to invest internally in our production facilities and technology to enhance our production capacity. We are always on the hunt around the world for SEPTEMBER 1~3 integrated solutions and technologies to implement.” 7th International Conference on Tailings online conference - Tomás Cruz, Piping Business Unit Manager, +80 received abstracts • Authors from 19 countries • Networking • Technical Roundtables • Fast Pack Plenary Sessions • Discussion Panel • Technical content available for 3 months

executive committee 2021 “Our greatest strength is that we take good care of our workers and the relationship with chair co-organizer co-organizer clients, and when this relationship is consolidated, it facilitates our business growth. tamara johndrow michael henderson césar pastén Director Tailings & Water, Director, Tailings Center of Excellence, Academic, AMTC, Providing good service and having an excellent after-sales market is our key priority.” Freeport-McMoRan, USA Colorado School of Mines, USA Universidad de Chile - Alejandro Miranda, co-organizer co-organizer program director General Manager, jorge macedo caius priscu hugo quelopana Doosan Bobcat Chair, Georgia Tech, Adjunct Professor, Norman B Keevil Project Manager, Taileng, USA Institute of Mining Engineering, The Delfing, Chile University of British Columbia, Canada

“Chile is undergoing dramatic changes politically and is in a peculiar position More information on gecamin.com/tailings economically amid the pandemic. Therefore, considering the uncertainty in Chile’s future, our primary goal is to maintain our current clients and consolidate our activities by main sponsor organizers providing excellent services to large-scale mining operator.”

- Alejandro Vega, COLORADO SCHOOL OF General Manager, Ava Montajes

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ABB global.abb Aethon Minerals abraplata.com Concluding Aggreko aggreko.com Albemarle albemarle.com Thoughts ALS alsglobal.com Altiplano Metals apnmetals.com American Air americanair.cl AMPHOS 21 amphos21.com AngloAmerican angloamerican.com “It is effortless for companies to declare their operations as sustainable but actually to Antirion antirion.cl act upon it that is what differentiates corporate cultures. SGS is determined to innovate Antofagasta Minerals aminerals.cl in a sustainable manner and live up to its sustainability promise to become the ideal Aprimin aprimin.cl Arcadis arcadis.com partner in the mining industry.” Astra Exploration astra-exploration.com Ausenco ausenco.com - Andrés Costa, Ava Montajes ava.cl Barrick barrick.com Managing Director, Becker Mining becker-mining.com SGS Chile Belaz belaz.by Bertling bertling.com BHP bhp.com Black & Veatch bv.com Bosch Rexroth boschrexroth.com "One of our most significant milestones in 2020, is that we now supply all the major Bridgestone Mining Solutions bridgestone.com mining companies across the country. Under Polimet, we have increased our market Capstone Mining Corp capstonemining.com share in the mid-tier mining sphere. Our competitive advantage is in the creation of CDM SMITH cdmsmith.com Ciptemin ciptemin.com robust engineering capacity, and our tech-focused manufacturing capacity." COCHILCO cochilco.cl Codelco codelco.com - Tomás Buttazzoni, Consejo Minero consejominero.cl General Manager, Coro Mining Corp coromining.com DISAL disal.cl Technosteel Doosan BobCAT doosanbobcat.com DSI UNDERGROUND dsiunderground.com Dyno nobel dynonobel.com “As the copper price robustly recovered, we are witnessing several clients in a hurry to EATON eaton.com eBooting ebooting.com move rapidly to develop their projects to take advantage of the current market dynamics. Echeverría Izquierdo ei.cl Therefore, our efforts are geared towards developing projects in the shorter schedules Edyce edyce.com our clients are requesting.” EMERSON emerson.com Enaex Robotics enaex.com Enngie engie.cl - Roberto Saragoni, Epiroc epiroc.com Operations Manager, Equus Mining equusmining.com Sistemas de Transporte de Materiales (STM) ERAL eralchile.com Ernst & Young ey.com Excava excava.cl Fast Pack fastpack.cl Finning finning.com “Sustainability is fundamental for Volvo Group. We are implementing a national strategy Fitch Ratings fitchratings.com FLESAN flesan.cl that brings together a series of initiatives that seek to positively impact the environment, FLSmidth flsmidth.com society and the economy.” Fordia fordia.com Freeport-McMoRan fcx.com - Jorge Masias, GEOCOM geocom.cl Glencore glencore.com Managing Director, Gold Fields goldfields.com Volvo Chile Griffith Drilling griffith-drilling.com Grupo Arrigoni arrigoni.cl Haug haug.com Haver & Boecker haverboecker.com Herrenknecht herrenknecht.com “The destruction or loss of data is our main concern. In this sense, cybersecurity is Hexagon Mining hexagonmining.com essential and we allocate many resources to its prevention. We adhere to our cloud HighService Corp highservice.com HLS Hard-Line hard-line.com providers safety requirements and we have in-store procedures that go beyond that to Hofmann Engineering hofmannengineering.com ensure even better coverage.” Hot Chili hotchili.net.au ICP Ingenieria icpingenieria.cl - Ramón Opazo, IIMCh iimch.cl Ingenalse ingenalse.cl CEO, Ingetrol ingetrolcorp.com Antirion InvestChile investchile.gob.cl

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JRI Ingeniería jri.cl KGHM kghm.com Kinross kinros.com Komatsu komatsulatinoamerica.com Kura Minerals kuraminerals.com Liebherr liebherr.com Lithium Chile lithiumchile.ca Los Andes Copper losandescopper.com Editorial and Management Team Lundin Mining lundinmining.com Mantos Copper mantoscopper.org Mas Errázuriz maserrazuriz.cl Master Drilling mastedrilling.com Mathiesen grupomathiesen.com Senior Project Director: Lucrezia Falcidia ([email protected]) Maxam maxamcorp.com Project Journalist: Germaine Aboud ([email protected]) McLanahan Corporation mclanahan.com ME Elecmetal me-elecmetal.com Metso metso.com Executive Editor: Mungo Smith ([email protected]) Metso Outotec mogroup.com Operations Director: Miguel Pérez-Solero ([email protected]) Michelin michelin.com Minera Tres Valles mineratresvalles.com Graphic Design: Gonzalo Da Cunha ([email protected]) Mineria Activa mineriactiva.com Özgür & Deniz ([email protected]) Montero Mining monteromining.com Graphic Design (ads): Montt Group monttgroup.com Motion Metrics motionmetrics.com General Manager: Alfonso Tejerina ([email protected]) Nexxo nexxo.cl Normet normet.com OHL ohl.es Orica Mining orica.com Outotec outotec.com Your opinion is important to us, Pampa Metals pampametals.com please be in touch to share your comments on this report! Páres y Álvarez pya.cl For updated industry news from our on-the-ground teams around the world, Perfochile perfochile.cl please visit our website at gbreports.com, Plainhill plainhill.com Plasma 4th plasma4th.com subscribe to our newsletter through our website, Plus Mining plusmining.com or follow us on Linkedin and Twitter (@GBReports) POLPAICO polpaico.cl Promet promet.cl Rema Tip Top rema-tiptop.com RIO 2 rio2.com Rio Tinto riotinto.com Salfa Maquinarias salfa.cl Sandvik Mining and Rock Technology rocktechnology.sandvik Thank You SGS Chile sgs.cl Siemens new.siemens.com Sigdo Koppers Group sigdokoppers.cl Sigdo Koppers Ingeniería y Construcción icsk.com We would like to thank all the executives and authorities that took the time to meet with us. SimmaTrans S.A simmatrans.cl Also, special thanks to: Sistemas de Transporte de Materiales (STM) stmcorp.cl SKC Maquinarias skcmaquinarias.cl Solvay solvay.com SQM sqm.com MINISTRY OF MINING SRK Consulting srk.com www.minmineria.gob.cl STANTEC stantec.com Superex superex.cl TAKRAF Tenova takraf.tenova.com CONSEJO MINERO Techint Engineering and Construction techint-ingegneria.com www.consejominero.cl Technosteel technosteel.cl Teck teck.com Tecnipak tecnipak.com APRIMIN Tecno Fast tecnofast.cl www.aprimin.cl Thiess thiess.com Torq Resources torqresources.com COCHILCO Volvo Chile volvochile.cl www.cochilco.cl Wealth Minerals wealthminerals.com Weir Minerals global.weir Wood woodplc.com Worley worleyparsons.com Xylem xylem.com Yamana Gold yamana.com Zublin Strabag strabag.com

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