A Tour of Codelco's Santiago Operations Center

A Tour of Codelco’s Santiago Operations Center INTRODUCTION Copper supplier to the world

Codelco – or the Corporación Nacional del Cobre de Chile – is the world’s largest copper producer, manufacturing 1.8 million tons of fine copper per year, representing 15 percent of global production.

The state-owned company controls the world’s largest known copper reserves, deep within the Andes Mountains of Chile. The 118 million tons of copper residing within Codelco mines is sufficient for more than 70 years of production at current production rates.

Organizationally, Codelco is split into four areas: research, exploration, acquisition and development. Each of these units support the company’s principal production sites, which are structured into the following Divisions: Andina, Chuquicamata, El Teniente, Gabriela Mistral, Ministro Hales, Radomiro Tomic, Salvador and Ventanas; plus, the El Abra mine, in which Codelco holds a 49% interest. Joint venture with control of its Andes-based mines and production facilities to the cosmopolitan streets Honeywell Drives of Santiago, the Chilean capital. Together with Process Stability and Honeywell, it has built a state-of-the-art, remote 24x7 Operations Center in the heart of the Business Performance city, combining mining operations along with In 2007, Codelco formed a joint venture with concentrator plant, roaster and maintenance Honeywell, through which Honeywell supplies functions for the Ministro Hales Division. Codelco with process automation technology Zamora explains the rationale: “Based on and services to improve the performance of Codelco drivers, we wanted to minimize safety the company’s plants. The joint venture, called risks to workers and improve their quality of life Kairos Mining, was designed to improve process while increasing productivity. The fact is, people stability and business performance at the sites. don’t want to work long-term in the mountains “Kairos Mining is a long-term alliance that anymore, and technical talent is difficult to is helping Codelco achieve greater process retain. So, Codelco decided to migrate plant efficiency through higher automation standards,” functions hundreds of kilometers away, to the explains Claudio Zamora, President and city center.” CEO of Kairos Mining. “Honeywell Connected The Santiago Operations Center uses the latest Plant technologies are enabling Codelco to technologies to foster communication and optimize assets, improve operation continuity, interaction. It incorporates remote operation and and standardize automation processes and remote monitoring centers equipped with video technologies.” transmission equipment, video IP phones and a large-scale display wall; testing, development Innovating through and training laboratories; and meeting, training Connected Operations and video conferencing facilities. Today, Codelco is the midst of an ambitious, forward-thinking project to transfer operational Improving Production making – creating a connected production environment that’s delivering $45 million Efficiencies at Key Sites in incremental revenue annually through Today, the Operations Center is using data improved production quality and productivity analytics, predictive maintenance and for the Ministro Hales Division. The connected Honeywell Connected Plant expertise to deliver operating model was a brave business decision – radically improved production, productivity and and one that’s paying off.” increased revenues at Codelco’s plants.

Operators can see production environments Visiting the clearly through cameras and high-resolution Operations Center screens, and are better coordinated since they can work together in the same room. Approved visitors can tour the Santiago Operations Center to better understand how Codelco is also able to achieve the full Codelco is solving production and business automation of its Advanced Process Control challenges through connected technologies, and (APC) systems, and to manage and exploit to see Honeywell advanced solutions at work. large volumes of data to improve production performance. Meanwhile, operations staff are There are eight major Operations Center alerted in real time to potential problems, and functions that visitors can experience: can modify processes to prevent the loss of Remote Support; Ministro Hales Remote continuity. Operations; Competency Management; Connected Assets; Application Development; The Operations Center has helped Codelco fine- Lifecycle Support; Advanced Process tune production, improve the use and availability Control Support; and Process Support. of equipment and systems, reduce costs and increase the productivity of its teams. Over the following pages, we’ll take you on a tour of each of these areas, allowing Zamora says: “Honeywell has helped Codelco you to better understand which functions integrate processes, information and decision are most relevant to your business. REMOTE SUPPORT CENTER For years, Codelco’s far-flung sites were There are three business drivers for Codelco’s constrained by the availability and cost of Remote Support Center function in Santiago, qualified specialists. The Remote Support through which cross-functional specialists Center addresses this challenge by providing support processes, advanced control applications, senior-level support across each plant. DCS and communications at Codelco plants: The Remote Support Center also provides real-time • Sustain automation benefits over time monitoring of open-platform process automation systems, and online access to process data and • Overcome the lack of on-site specialists control application information for different sites. • Reduce downtime and improve This allows Codelco’s process specialists to study operational continuity the impact that one process stage has on the Connected to the plants through a secure private next; the relationship between process variables; network, the Remote Support Center provides the identification of factors that might inhibit centralized access to multi-plant process process performance; and the evaluation of best information and automation resources, plus practices that can be replicated at other sites. services to follow-up processes, support plant operators, identify improvement opportunities KEY OUTCOMES and facilitate changes in operational Increased production yield practices to sustain automation benefits. Reduced operating costs Improved risk and safety profile

MINISTRO HALES REMOTE improving the quality of decision making OPERATIONS CENTER through the visualization of productive chain variables; boosting product quality Codelco’s Ministro Hales plant, located in through an advanced control app; and Chile’s northern Antofagasta region, is run reducing water and energy consumption. from a dedicated Remote Operation Center in Santiago managed by Kairos Mining. The remote At the Ministro Hales Remote Operations operating model is having a beneficial impact on Center, you can see various Honeywell solutions process continuity and efficiency at the site. at work, including: the Experion® Process Knowledge System platform; sleek, intuitive The Kairos Mining team is enabling process Experion Orion consoles; an alarm management continuity by improving safety; minimizing system; control operations for SAG, grinding, disruptions to plant access; and using flotation and roasting processes; Digital Video condition monitoring to check the health Manager; and remote radio communications. of the plant’s process equipment.

Simultaneously, Kairos Mining specialists have KEY OUTCOMES boosted process efficiency by integrating the Delivering $45 million in incremental annual revenue] management of operations and maintenance; Faster, better access to expertise whenever it’s needed establishing better coordination between Improvement in safety indicators due to less exposure to process operators; and ensuring consistency hazardous areas in operations criteria. Additionally, they are heightening operators’ situational awareness; COMPETENCY MANAGEMENT The training has also facilitated the adoption Through its Competency Management program, of new technologies and operational practices, Codelco is improving the knowledge, aptitude and and helped to standardize the learning of mining efficiency of its employees while adapting them to process behaviors and operational criteria, creating technological change. a strong foundation for operational efficiency and commercial success Nearly 1,400 Codelco employees have completed competency management training to build their KEY OUTCOMES knowledge of control system technology, advanced . Delivering $45 million in incremental annual revenue] control applications and process operations. Faster, better access to expertise whenever it’s needed Training sessions are conducted on-site, in the Improvement in safety indicators due to less exposure to Kairos Mining Remote Operations Center and via hazardous areas the web. The result? Employees are getting more out of Codelco’s installed systems.

CONNECTED ASSETS Nearly 1,400 Codelco employees have completed Connected Assets allow operators to competency management training to build their boost operational efficiency, make more knowledge of control system technology, advanced timely decisions, reduce downtime and control applications and process operations. improve information transparency. Training sessions are conducted on-site, in the Kairos Mining Remote Operations Center and Using remote access and monitoring tools, via the web. The result? Employees are getting operators can analyze data from different plant more out of Codelco’s installed systems. sources, including field instruments, processes, DCS, control applications and network devices. The training has also facilitated the adoption Analytics allow the operators to identify of new technologies and operational practices, abnormal conditions and predict potential and helped to standardize the learning of mining failures. They can also access plant systems process behaviors and operational criteria, and applications safely; and create key indicator creating a strong foundation for operational efficiency and commercial success. dashboards to assist the operations team.

Through its Competency Management KEY OUTCOMES program, Codelco is improving the knowledge, Timelier, more informed operational decisions aptitude and efficiency of its employees while based on data adapting them to technological change. Problems anticipated before they occur Improved operational visibility and transparency

APPLICATION DEVELOPMENT process and disturbance variables to execute Codelco is using Application Development feed forward and predictive control, improving to improve the efficiency of crushing, SAG, control performance. The Profit Controller is based milling, flotation and thickener applications on mathematical models which use information at the Ministro Hales site. Collectively, the from the process itself, unlike expert systems improvements are helping to reduce the which are based on rules provided by experts variability of process output, increasing the and therefore subject to personal perceptions. tonnage of copper recovered for processing. KEY OUTCOMES Advanced process control is achieved through Higher recovery of copper Honeywell Profit® Suite applications. Profit Suite Increased treatment of ore is based on Robust Multivariable Process Control Reduced energy consumption Technology, which compares current and historical ADVANCED CONTROL Honeywell solutions that comprise the APC APPLICATION (APC) SUPPORT Support offering include: remote access to APC applications, DCS and process Changes in manufacturing process dynamics, historians; and APC monitoring tools. technology obsolescence and operational practices can cause control strategies to lose their KEY OUTCOMES effectiveness over time unless their performance Best practices standardized across the company is periodically evaluated and re-tuned to process conditions. The APC Support function helps Faster deployment times identify ongoing improvements to Codelco’s Improved sustainability control strategy and operator performance.

Control applications must be set by operators according to process conditions. APC Support specialists help operators deal with abnormal situations and provide guidance to stabilize processes.

LIFECYCLE SUPPORT system events. When an abnormal condition is Lifecycle Support services are administered to detected, the monitoring system sends an email Codelco plants to ensure operational continuity; or a mobile phone notification to support staff analyze process output and operational practices; for further diagnosis and corrective action. and achieve long-term automation benefits. Key components of the Lifecycle Services

Specialists manage functions such as basic offering include: real-time process video; control, advance control applications, information remote access to site control applications applications, communications, systems, (DCS, APC) and the site process historian; data mechanics and metallurgical processes. analytics to diagnose problems and identify They also perform real-time monitoring of trends; automated distribution of antivirus open platform process automation systems; and Windows updates; centralized backup; manage online access to the DCS; and system monitoring and alarm notifications; control applications across company sites. and knowledge database management.

Additionally, the specialists monitor server and KEY OUTCOMES application availability and system parameter Continual refinement of operational practices values that exceed thresholds, and analyze Process issues resolved faster Improved operational continuity PROCESS SUPPORT Honeywell’s Process Support offering for Codelco Process Support specialists in Santiago deliver includes: remote access to local process historians, real-time monitoring of process automation DCS and APC; as well as data analytics tools for systems and provide access to process data and cross-process overviews, statistics, trends and control applications at multiple sites. correlations analysis.

The support team continually analyzes process KEY OUTCOMES variations, allowing the control strategy to be fine- Increased process stability and performance tuned. Modifications might involve control model Control strategy can be fine-tuned according to tweaking, or the addition of new process variables, process conditions instrumentation or tools. Proposed changes are Continually evolving and improving operational practices highlighted in process reports and discussed in meetings with stakeholders.

Want to Learn More? If you’re interested in learning more about the Codelco Santiago Operations Center or the Honeywell solutions deployed there, or in visiting the site, please contact your Honeywell Account Manager to discuss the options available to you.

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