Slide 1: Centinela - Site Visit
Centinela - Site Visit December 7th 2016 Luis Sánchez Chief Operating Officer
Slide 2: Cautionary statement
Cautionary statement This presentation has been prepared by Antofagasta plc. By reviewing and/or attending this presentation you agree to the following conditions: This presentation contains forward-looking statements. All statements other than historical facts are forward-looking statements. Exampl
Slide 3: Key Messages
Key Messages Focus on Creating long Emphasis on cost and Positioned term value Leaders in profitable operational for growth through innovation tonnes reliability Sustainability • Only profitable • Rebase costs • Advance • New • History of production • Protect margins organic growth community innovat
Slide 4: Agenda
Agenda Operational Growth Overview Sustainability Review Opportunities 4
Slide 5: Safety Performance
Safety first - 24 months with zero fatalities Safety Performance • Committed to zero fatalities • Similar LTIFR compared to last year • New safety and occupational health model 4 being extended to contractors 1.40 1.00 0.90 0.80 • Regular senior management site visits to 1 0 0 reinforce Safety First
Slide 6: Overview
Ar ANTOFAGASTA PLC Overview
Slide 7: Centinela overview
Centinela overview • Ownership structure Centinela – 70% Antofagasta – 30% Marubeni Corp. Cu Cu • History C1 – Merged El Tesoro and Esperanza in 2014 Conc. Cath. – El Tesoro started production in Santiago 2001, Esperanza in 2011 YTD Q3 016 YTD Q3 016 YTD Q3 2016 • Location Production (t) Production
Slide 8: Centinela Team
Centinela Team Denotes presence at presentation André Sougarret Chief Executive Officer Fabian Suez Sustainability Manager Juan Luis Cristian Palacios Fadic Safety and Maintenance Occupational Manager Health Manager Diego Rodolfo Rodrigo Luis Ignacio Arrigorriaga Navarro Salinas Sanchez Muñoz Chief
Slide 9: Location Map
Location Map Calama Antucoya Muelle ESP Port Sierra Gorda Town Water pipeline Centinela San Pedro Mejillones de Atacama Located in the II Region, 30 km from Sierra Gorda town Antofagasta (200 km from Antofagasta / 100 km from Calama) 9
Slide 10: Site visit
Site visit Algarrobo Camp Cathode Plant ←Ripios Tesoro Noreste Pit Tesoro Central Pit Mirador Pit ←ROM Esperanza Pit ←Tailings Deposit ←Primary Crusher Concentrator Plant Chañar Camp 10
Slide 11: Development of Centinela
Development of Centinela Centinela established Molybdenum Plant - first Integrated planning and operations production Sharing best practices and facilities Mo recovery from concentrates US$125 million Increasing productivity and cost efficiency DMC Esperanza - First production MOLY
Slide 12: Reserves and Resources
Reserves and Resources As of 31 Dec 2015. Resources include measured + indicated + inferred. DMC - Sulphides DMC - Oxides 720 Mt @ 0.43% Cu Mirador Oxides 5,980 Mt @ 0.38% Cu Tesoro 31% 42% Mirador Sulfuros 58% 69% Esperanza Esperanza Sur Paleo Canal / Llano Additional Resources Ore Reserves Encuent
Slide 13: Centinela's challenge
Centinela’s challenge Our strategy focuses on harnessing synergies while …aiming to be an operation of the future capturing balancing growth and productivity… the full potential and value of the Centinela District Taking advantage of opportunities to defend our competitive position and leverage our
Slide 14: Centinela's 3 step development path
Centinela’s 3 step development path • Ramp-up 2nd • Successful completion of Concentrator Encuentro Oxides and • Prepare for Phase 2 • Operating at 105 ktpd Moly projects Expansion Project capacity • Achieve cost reduction • Progress feasibility of • Achieve cost reduction targets other mineral reso
Slide 15: The vision of the Centinela District
The vision of the Centinela District The 2nd Concentrator monetises the large base of mineral …moving Centinela to it’s resources that exist in the District full economic potential • Significant increase in copper production Simplify and optimise our processes Production • With molybdenum and gold b
Slide 16: Operational Review
ANTOFAGASTA PLC AN = a) > a cc oO < xe) = oO o oO for fo) 16
Slide 17: Flow sheet for the concentrate plant
Flow sheet for the concentrate plant SECONDARY AND TERTIARY CRUSHERS PRIMARY CRUSHER FLOTATION SECONDARY MILL CV OVERLAND STOKPILE SAG MILL THICKENERS COPPER CONCENTRATE THICKENER CONCENTRATE FILTER CONCENTRATE TRANSPORT CONCENTRATE STOCKPILE TAILINGS 17
Slide 18: Flow sheet for the cathodes plant
Flow sheet for the cathodes plant PRIMARY CRUSHER AGLOMERATION STACKING LEACHING SECONDARY CRUSHER TERTIARY CRUSHER SX Cu EW 18
Slide 19: Production process – Mine Area
Production process – Mine Area Tesoro Central Pit Mirador Pit • Dimension: 1,9 x 1,7 km • Dimension: 1,2 x 0,6 km • Depth: 300 m • Depth: 208 m Tesoro Noreste Pït • Dimension: 1,4 x 0,9 km • Depth: 290 m Esperanza Pit • Dimension: 1,5 x 1,3 km • Depth: 416 m 19
Slide 20: Fleet and mining equipment
Fleet and mining equipment Type Brand – Model No of Units - Atlas Copco Pit Viper PV351 production drill rigs Drilling - Atlas Copco DMM3 production drill rigs • Diesel drill - Atlas Copco ROC L-8 down-the-hole crawler 15 • Support drill - Atlas Copco ROC D560 surface drill rig - Atlas Copco ROC D45
Slide 21: Esperanza pit main challenges
Esperanza pit main challenges Sulphides Oxides • Waste-to-ore ratio • Grade variability 21
Slide 22: Centinela has realised savings of approx. US$190M
Centinela has realised savings of approx. US $ 190M MORE IDEAS MORE PRODUCTIVITY Services Operational Organisational Energy Productivity Budget & Effectiveness Efficiency Maintenance management Accumulated Cost Savings US$m [Excluding FX and input price savings] Savings Achieved By 200 189 • Centine
Slide 23: Concentrator Plant - Throughput
Concentrator Plant - Throughput Progress Tailings 1. Increase thickening capacity: 3 new paste thickeners 1 operational, 2 ramping up 2. Improvements to existing high-density thickeners (new rakes) Completed Crushing 1. Additional 20 ktpd crushing capacity: secondary and tertiary plant Completed Flo
Slide 24: Sustainability
A ANTOFAGASTA PLC v~% Sustainability
Slide 25: Pioneering the use of sustainable technologies
Pioneering the use of sustainable technologies Thickened tailings Use of raw sea water Thermosolar plant • Thickeners to maximise use • Sea water transported over • Solar power used to heat water 140km from Esperanza port solutions in recovery process • Largest application in • Operation adapted to
Slide 26: Sustainability
Sustainability Economic Viability : • Simple process with larger equipment • In search of synergies • Innovation & improvement as permanent practices Innovation for environment: • First thermosolar plant of industrial scale in the mining industry • 100% use of sea water without desalination in the c
Slide 27: Growth opportunities
AA ANTOFAGASTA PLC Growth opportunities
Slide 28: Growth opportunities
Growth opportunities 105ktpd Plant Expansion Encuentro Oxides / Moly Centinela 2nd Concentrator 2016 2017 2018 2019 2020+ • Encuentro Oxide Starting production in 2017, 8-year mine life. Feed for existing SX-EW plant Full production 50,000 tpa copper Capex : US$636 million • Molybdenum plant
Slide 29: Our Future - Centinela Mining District 2016
Our Future - Centinela Mining District 2016 2016 2020+ 29
Slide 30: Key Messages
Key Messages World class district with optionality for long term development • Projects in execution and starting production in 2017: Encuentro Oxides: leverage existing SX-EW plant and pre-stripping for Encuentro Sulphides Moly: improving competitiveness through by-products credits • 2nd concen
Slide 31: Centinela - Site Visit
Centinela - Site Visit December 7th 2016 Luis Sánchez Chief Operating Officer