Antofagasta Plc · LSE:ANTO
Antofagasta — Corporate Update (December 2016)
33 slides from Antofagasta's corporate update, Dec 6, 2016
Slide 1: Los Pelambres - Site Visit
Los Pelambres - Site Visit December 6th, 2016 Robert Mayne Nicholls General Manager
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 Operations Growth Overview Sustainability Review Opportunities 4
Slide 5: Safety first - months with zero fatalities
Safety first - 24 months with zero fatalities Focus on: Safety Performance o Identify and assess key fatality and 1.4 1.8 serious injury risks. 1.3 1.0 o Preventative reporting and 0.7 investigation of high-potential near 1 1 misses. 0 0 0 o On-the-ground executive safety 2012 2013 2014 2015 YTD 201
Slide 6: Overview
X Ar ANTOFAGASTA PLC Overview
Slide 7: Los Pelambres overview
Los Pelambres overview • Ownership structure – 60% Antofagasta 2016 Guidance – 15% MM LP Holding – 25% Nippon LP Investment Cu Los Pelambres • History C1 – Part of Antofagasta since 1985 Conc. – Large scale mining commenced in 1999 Santiago • Location YTD Q3 016 YTD Q3 2016 – 240km north-east of San
Slide 8: Minera Los Pelambres (MLP) Team
Minera Los Pelambres (MLP) Team Denotes presence Robert at presentation Mayne-Nicholls Chief Executive Officer Jorge Araneda Head of Sustainability Ivo Fadic Sebastián Trejos Head of Head of Safety and Maintenance Occupational Health Rodrigo Julio Cesar Jose Miguel Juan Andrés Pierino Castillo Labbe
Slide 9: Mine site visit
Mine site visit Hualtatas viewpoint Mine Operations Center To be visited 9
Slide 10: Concentrator plant site visit
Concentrator plant site visit Moly plant SAG and Ball Mills Flotation Stockpile Tailings Thickeners 1.600 m.a.s.l Throughput: 175 ktpd. To be visited 10
Slide 11: Background: a story of sustained growth
Background: a story of sustained growth 1914 William Braden first explored in the area of the Los Pelambres deposit 1969 – 71 ENAMI carries out exploration to define the deposit’s potential 1978 Anaconda Minerals buys the Los Pelambres deposit rights that had been tendered by ENAMI 1985 Antofagasta
Slide 12: Los Pelambres, a world-class asset
Los Pelambres, a world – class asset • Los Pelambres’s ownership Chile’s 5th largest copper producer Ktpa in 2015 – Antofagasta Group 60% – MM LP Holding BV 15% 363 – Nippon LP Investment 25% • Chile’s 5th largest copper producer Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Los Pelambres
Slide 13: One of our main operating challenges: ore hardness
One of our main operating challenges: ore hardness ktpa 500 100% 90% 400 80% 70% 300 60% 50% 200 40% 30% 100 20% 10% 0 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Guidance Cu production Hardness (%) of ore fed to plant 13
Slide 14: Reserves and Resources
Reserves and Resources Reserves: Tonnage Los Pelambres Copper (%) Molybdenum (%) Gold (g/t) (millions of tonnes) Proven 704 0,61 0,022 0,05 Probable 604 0,60 0,015 0,04 Total(1) 1.309 0,61 0,019 0,05 Resources: Tonnage Los Pelambres Copper (%) Molybdenum (%) Gold (g/t) (millions of tonnes) Measured
Slide 15: Operations Review
A » ANTOFAGASTA PLC \ Operations Review zy Te,
Slide 16: Integrated production process & facilities
Integrated production process & facilities Wastedump MINE STOCKPILE MINE PLANT STOCKPILE 52 Komatsu 930E Trucks 5 Electric shovels 2 Gyratory Crushers 2 Front-end loaders Conveyor Belt Tunnel 3 Tailings Thickeners 6 Ball Mills 58 Rougher Cells 3 SAG Mills El Mauro Tailings Dam 28 Cyclones Molybdenum
Slide 17: Mine plan
Mine plan Phase 12 (2030 to 2037) Phase 10 (2018 to2026) Phase 7 (until 2021 ) Phase 9 Phase 11 (2021 to 2026) (2027 to 2034) Phase 8 (until 2018) 17
Slide 18: Fleet and mining equipment
Fleet and mining equipment Type Brand - Model No of units Drilling • Production Atlas Copco Pit Viper 351 (E) 3 Atlas Copco Pit Viper 351 (D) 5 Atlas Copco Pit Viper 316 1 • Support Atlas Copco ROC L-8 4 P&H 4100 A 53Yd3 1 Loading P&H 4100 XPB 73Yd3 3 • Shovels P&H 4100 XPC 73Yd3 1 LeTourneau L1850
Slide 19: Concentrator plant description
Concentrator plant description Througput: 175 ktpd Plant Specifications Recovery Cu: 90% / Mo: 81% Cycle length: Continuous Operation 2 Primary Crushers :Gyratory, 60”x113”, 1000 HP each Crushing and conveyor Ore conveyor: 3 Conveyor belts of 12.8 Km of total length, 10 motors of 3300 HP each SAG
Slide 20: Tailings and transport
Tailings and transport Authorised Capacity: 1.700 Mtons Recirculation system with capacity for 1100 lts Construction method: Downstream Safety spillway to evacuate 20 m3/s Operates under D.S. 248 (authorised with the former one) Perimeter canals and tailings dam to return water to Pupio Current tail
Slide 21: Port
Port Concentrate thickeners and filters Shiploader – Type: Ceramic Filters (8 units) – Type: SLRQ 1900.57/19 OX Radial Quadrant – Capacity: 22,5 wmt/h (each one) – Capacity: 1,800 wmt/h Concentrate warehouse – Length: 180-220 m (Radial movement) – Capacity: 130,000 wmt 21
Slide 22: Competitive and Cost Program (CCP)
Competitive and Cost Program (CCP) Our strategic objective Positioning MLP in the first cost quartile of the industry in the medium term Cost Savings Cost Savings 2015 H1 2016 Services Productivity Improving productivity and quality of contracts US$ 28m US$ 25m while reducing costs Operational & Mai
Slide 23: Mine: optimising key value drivers and productivity
Mine: optimising key value drivers and productivity • We operate a single open pit mine – Total material movement of ~ 140 Mt/year – Competitive stripping ratio of ~ 1.2 – Life of mine: 21 years • Ore hardness is a challenge being mitigated by mining practices and improved plant utilisation, and in
Slide 24: Plant initiatives to capture full potential
Plant initiatives to capture full potential Mineral processed (ktpd) and ore hardness (%) % • We operate a 175 ktpd concentrator plant that 100% ktpd 200 80% includes 3 SAG Mills and 6 Ball Mills 60% 150 100 40% • Ore hardness is challenging plant performance 20% 50 0% 0 (tons per hour) 2005 2006 20
Slide 25: Sustainability
“A » ANTOFAGASTA PLC Sustainability
Slide 26: Strong commitment to renewable energy
Strong commitment to renewable energy Renewable energies: • Antofagasta has made important efforts to include clean energy directly in its operations • From its beginning, MLP takes advantage from its conveyor belts to generate energy, contributing with 9% of the Company’s total energy consumption •
Slide 27: Somos Choapa
Somos Choapa MUNICIPALITIES Canela, Los Vilos, REGIONAL We ARTICULATE regional Salamanca, Illapel GOVERNMENT government and municipalities interaction with private companies and communities, committed to local SOMOS development in a CHOAPA CONSORTIUM responsible for watching over the implementation
Slide 28: Somos Choapa
Somos Choapa Influence area Initiatives under execution Planned initiatives REMODELING CONSTITUCIÓN STREET Design for Liceo Politécnico of (In development) Illapel Illapel REMODELING RAMÓN “MONCHO” VEGA Participative Process STADIUM (In development) REVOLVING FUND FOR 22 diverse occasions for EXTRAP
Slide 29: Los Pelambres – El Mauro tailings dam
Los Pelambres – El Mauro tailings dam Outstanding court cases resolved • Two longstanding claims concerning: – Quality and quantity of water in stream – Ability of dam wall to withstand extreme seismic event • Formal and transparent dialogue with community to understand concerns and share views • Ag
Slide 30: Growth opportunities
Growth opportunities 30
Slide 31: Growth opportunities
Growth opportunities Incremental Expansion Phase 1 Throughput expansion to 190 ktpd under existing permits. New grinding and flotation circuit to counter the increasing hardness of the ore Cu: 60 ktpa Capex: US$ 1,100m Feasibility study completion Earliest Start of Ramp up and investment decision Co
Slide 32: Key Messages
Key Messages • World class deposit with low strip ratio and large resource base provides opportunity to unlock value in the long term • Ore hardness challenge mitigated by: Short term effective operational actions Mid term plant capacity expansion • New community engagement model in place, based
Slide 33: Los Pelambres - Site Visit
Los Pelambres - Site Visit December 6th, 2016 Robert Mayne Nicholls General Manager