Kghm.sierra emea-dec12-bro-s Researched Abi Abagun


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Kghm.sierra emea-dec12-bro-s Researched Abi Abagun

  1. 1. KGHM Polska Miedz -Sierra deep ProjectInto the Gorda
  2. 2. KGHM Polska Miedz - Sierra Gorda ProjectInto the deep written by: will daynes research by: abi abagun Business manager Roberto Luna discusses the on-going development of the Sierra Gorda open pit copper mine project
  3. 3. KGHM Polska Miedz - Sierra Gorda Project A s well as having the distinction of being known as the driest desert in the world, the Atacama Desert of Northern Chile is home to the Sierra Gorda project. “A large tonnage, open pit copper mine development,” explains business manager Roberto Luna, “it boasts deposits that total up to 2.2 billion tonnes of measured and indicated resources, and reserves amounting to some 1.3 billion tonnes.” Estimated to have a useful life of 20 years, two phases of activity have been proposed. The first of these will run from 2014 until 2017 and will feature an ore throughput rate of 110 kilotons per day. The second phase will then commence in 2017 and is expected to involve ore throughput reaching levels of 190 kilotons per day on average. The main plant equipment needed to be brought together for the first phase of the project includes one primary crusher, four secondary crushers, three ball mills, four high-pressure grinding rolls and 32 floatation cells. In turn, six 73yd3 shovels, 41 cubic metre front loaders, six drills, and 29 trucks with a 300 tonne capacity are being considered for the mine. As is the norm for an open pit mine, the ore from Sierra Gorda is hauled by trucks to a primary crusher. By means of conveyors over the ground the ore is then transported from the crushing stages to the concentrator plant, before grinding is carried out through ball milling using hydrocyclone classification circuits. The ore released from wet grinding is then recovered during the bulk copperSalt water pool - Earth work and molybdenum flotation stage.
  4. 4. SIERRA GORDA KGHM Polska Miedz - Sierra Gorda ProjectSalfaCorpAs an industry leader, Salfa Montajes, a With 83 years of experience behind it,SalfaCorp subsidiary working in industrial SalfaCorp is ranked in the top 5 in Latinconstruction and assembly in mining and America companies in engineering andenergy, has been awarded construction and construction, leading the Chilean market withinstallation of the Sierra Gorda Processing annual sales of more than $1.7 billion dollars,Plant (110,000 ton per day capacity) dry and and with a workforce of over 44,000 andwet areas. With a contract totaling over $350 2,400 professionals.million dollars, the Sierra Gorda project covers Constant evolution and innovation hasall multidisciplinary areas with a commitment permitted Salfa Montajes to be an industryof over 10,000,000 man-hours from the leader in its areas of specialty and service. Itstart of Civil Works to the launch of the plant, has reached successful international expansionincluding raw materials stockpiling, secondary to key regional markets such as Peru, Colombia,and tertiary grinding (HPGR), secondary and Panama, and Uruguay, with active participationtertiary sieves, crushing, floatation, filtration and dedicated client service.and tailings thickeners, among other areas. Throughout its history, the company hasAs part of this process, for the past two years demonstrated an outstanding ability to growSalfa Montajes has taken part in the project’s in a sustainable manner and offering solutionsconstructability with Sierra Gorda S.C.M., both for a variety of services, including constructionin Chile and Canada. and industrial assembly, civil construction,Salfa Montajes has been involved in every stage infrastructure, industrial maintenance, mineof the project, including construction strategy, development, marine works, earth movingorganizational structure, logistics, as well as and EPC projects.assessment and awareness of the constructionCAPEX in each of the engineering stages. E. OCTOBER 2012 | 1
  5. 5. SIERRA GORDA KGHM Polska Miedz - Sierra Gorda Project SIERRA GORDA Sierra Gorda feature is a mixed copper The final product text.....Lorem ipsum consectetur adipisicing elit, sed do eiusmoddolor sit Gorda consectetur adipisicing sent Sierra amet, feature text.....Lorem ipsumand molybdenum concentrate that is elit, tempor incididunt ut elit, sed do eiusmod consectetur adipisicing labore et doloresed dosit amet,plant where molybdenum isto a flotation consectetur adipisicing elit,dolor eiusmod tempor incididunt ut labore tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam,et dolore magna aliqua.incididuntad minimrecovered and copper concentrateut laboresed do eiusmod tempor Ut enim remains quis nostrud exercitation ullamcoveniam, magna aliqua. Ut enim ad minim laborisveniam,tails. Both concentrates ad minimas dolorequis nostrud exercitationare thenet the magna aliqua. Ut enim ullamco nisi ut aliquipexercitation ullamco laboris quis nostrud ex ea commodo consequat.conveyed to ut aliquip ex ea a ullamcoveniam, quis nostrud exercitation railwaylaboris nisi marketing areas bycommodo Duisut aliquip ex ea commodo consequat. nisi aute irure dolor in reprehenderit inconsequat. in the nearbyex ea commodolaboris nisi ut aliquip irure dolorline located Duis aute Antofagasta. in voluptate velit esse cillumreprehenderit in Duis aute irure dolor in dolore eu fugiatreprehenderit in voluptateirure esse Polskaconsequat. Duis between KGHM cillum A joint venture aute velit dolor in nulla pariatur. Excepteur sint eu fugiat voluptate velit esse cillum dolore occaecatdolore eu fugiat voluptate velit esse cillumreprehenderit in nulla Sumitomo MetalMiedz, the Japanesepariatur. Excepteur nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa quisint occaecat cupidatatpariatur. SumitomoMining company and the Excepteurdolore eu fugiat nulla non proident, sunt officia deseruntproident, sunt in culpa qui cupidatat non mollit anim id est laborum.Corporation, cupidatat nonGorda projectsint occaecat the Sierra proident, suntin culpa qui officia deserunt mollit anim id Loremdeserunt mollit anim id est laborum. officia ipsum dolor sit amet, consecteturestculpa qui officia deseruntdolor the amet,in laborum. Lorem ipsum mollit anim idrepresents the implementation of sit three adipisicing elit, sed sit amet, consectetur Lorem ipsum dolor do eiusmod temporparties’ expansion, ipsum dolor sit amet,est laborum. Lorem internationalisation adipisicing elit, sed do eiusmod tempor Prestripping HATCH HELPS SIERRA GORDA BECOME ONE OF HATCH HELPS SIERRA GORDA BECOME ONE OF WORLD’S LARGEST MOLYBDENUM PRODUCERS WORLD’S LARGEST MOLYBDENUM PRODUCERS Sierra Gorda has turned to Hatch’s EPCM concentrate. For the remainder of its estimated Sierra Gorda has turned to Hatch’s EPCM expertise to support its ambitious copper / concentrate. For the remainder of its estimated 22-year life, the plant will continue processing expertise to support its ambitious copper / molybdenum plant project in the Antofagasta 22-year life, the plant will continue processing at 190 ktpd of ore generating 790 ktpa of molybdenum plant project in the Antofagasta region of Chile. This is a unique opportunity at 190 ktpd of ore generating 790 ktpa of collective concentrate with 1.5 percent being for the of Chile. This is a unique opportunity region company, since the mine’s molybdenum collective concentrate with 1.5 percent being molybdenum concentrate. That transition orethe company, first threemine’s is about for grade for the since the years molybdenum molybdenum concentrate. That transition will require a flexible design in order to 900 ppm,for the is significantly higher ore grade which first three years is about accommodate the different oreorder to will require a flexible design in throughput to compared which industry standard of less 900 ppm, to the is significantly higher be processed fromdifferent ore throughput to accommodate the year four onwards. than 90 ppm.the industry standard of less compared to be processed from year four onwards. “We have always believed that Hatch delivers Working ppm. a tight timeline between July than 90 with strong engineering capabilitiesHatch delivers “We have always believed that and expect 2012 andwith a2013, Hatch is between July all Working May tight timeline responsible for they will fulfill their capabilities anddesign this strong engineering commitment to expect detailed engineering Hatch is responsible for all 2012 and May 2013, duties of the molybdenum plant, a criticaltheir commitment towithin the they will fulfill part of the project, design this flotationengineering duties of the molybdenum detailed plant, including a thorough analysis tight schedule,”part of the project,president of plant, a critical said Joe Tis, vice within the flotation plant, including a thorough analysis of the basic engineering stage, and delivering development forsaid Joe Tis, vice president of tight schedule,” Sierra Gorda. all the basic engineering stage, and delivering of documentation needed for procurement development for Sierra Gorda. Equipment covered under the project and construction. needed for procurement all documentation includes thickeners,under thecells, Equipment covered flotation project and construction. During its first three years of operation, includes thickeners, flotation cells, molybdenum concentrate filters, regrinding During its first three years of operation, the 110-ktpd ore throughput copper and molybdenum concentrate filters, regrinding mill, dryers, packing maxi bags equipment molybdenumore throughput copper and the 110-ktpd concentrator is expected to and associated infrastructure. equipment mill, dryers, packing maxi bags produce 450 concentrator is expected to molybdenum ktpa of collective concentrate, and associated infrastructure. of which 450 ktpa of collective concentrate, produce 7 percent is molybdenum of which 7 percent is molybdenum OCTOBER 2012 | 2 OCTOBER 2012 | 2
  6. 6. KGHM Polska Miedz - Sierra Gorda ProjectKnight Piésold S.A.Knight Piésold S.A. is currentlydeveloping the detailed engineering ofthe tailings transport, tailings storageand water management systems for theoperation of the Sierra Gorda Project. Inorder to address this project and complywith the expectations of Sierra Gorda,we have formed a multidisciplinary enabled us to comply with the objectivesteam composed of specialists from the defined at the outset of the project, infollowing disciplines: civil, electrical, terms of both the agreed upon goals andinstrumentation, water and tailings deadlines. This has resulted in a finaltransport, geotechnical and geology, design of the deposit that meets theconstruction, risks, project control, highest standards of both safety andquality and safety. constructability.The strengths of our team, coupled withthe collaboration and participation of E. santiago@knightpiesold.comthe team from Sierra Gorda, have Workers and position strategy for the global copper where deadlines are incredibly demanding and molybdenum market. The project and shorter than the industry average.” presents the ideal opportunity to bring Of equal importance is the need to about increased resources, reserves and capture, retain and train the employees production, and ultimately raise the value required for the construction, operation and of the three companies on a global scale. development of the project. At present, over “The primary challenge at the heart of 3500 people are assisting in the construction this venture,” Luna continues, “is being able phase, with this number expected to peak at to design, procure, construct, commission and around 7000 in the near future. Once into successfully start up a large the operational stage, a total scale project for a foreign of 2000 individuals are due company, where different visions inherent to the cultures of each participant are successfully integrated. 141 km Length of pipeline to be active in carrying this stage of the project through. As a result of internal and external factors in Another challenge stems from carrying sea water Chile, and the mining the fast-track status of this to the project world in general, there is an particular greenfield project increasingly strong demand
  7. 7. KGHM Polska Miedz - Sierra Gorda Project for qualified labour and mining supplies, which Ingeniería Civil Vicente (ICV) Ingeniería Civil Vicente S.A. (ICV S.A.) is proud to have has conspired to produce been able to participate, from the very beginning, in the an increase in prices. This Sierra Gorda mining project in Chile, providing earth has impacted directly on movement services for the construction of its preliminary projects that are currently platforms and infrastructure. under execution. “The The implementation of this important contract implied Sierra Gorda project has major logistics and engineering challenges for our company not escaped the effects of and its successful completion reflects the joint efforts of this,” Luna highlights. “As ICV and the client, Minera Quadra Chile Limitada. This key milestone in ICV’s history has added to our a hedge against potential company’s experience, enhancing its capacity to undertake f luctuations that could other similar projects for Chile’s large-scale mining industry. impact upon project costs and completion, moves have been made to commit purchase orders and contracts at the earliest stage possible.” Northern Chile’s geog raphic characteristics, namely the scarcity of water and energy, have also raised several issues. To overcome these, the project follows the current trend of using seawater in the mining process. This water will be carried by means of a 141 kilometre pipeline with a flow rate of 1500 litres per second. Furthermore, two industrial water supply contracts have been entered into with Aguas Antofagasta and FCAB respectively. Processed at its on-site water treatment plant, this water will beSIERRA GORDA: BRASS Chile S.A. was contracted by Sierra Gorda S.C.M. for the made suitable for human consumption.SEAWATER TRANSPORT Detailed Engineering of the 145 km – 36” diameter Seawater Trans-PROJECT port with a maximum capacity of 1,500 l/s. Meanwhile, the power required for the The pipeline utilizes a RFP Pipe at low pressure and CS at high project will be generated by a coal-fired pressure section. To enable delivery from coast to mine site at 1700 masl, 3 pump stations connected in booster mode are utilized: one thermoelectric power plant located in at the coast and 2 intermediate. Each intermediate station has 7 Mejillones. From here a 140 kilometre long, high pressure pumps in parallel with 3,160 kw motor capacity each. A chemical treatment plant with high efficiency filters are located at 220 kilovolt transmission line will supply the first intermediate pump station. Operation is controlled through energy to a primary substation that will also a SCADA system connected through fiber optic cables. be located on-site. To date, 2012 has seen the project achieve Flotation cells
  8. 8. KGHM Polska Miedz - Sierra Gorda ProjectCAT shovel several milestones, all of which revolve around the mine area itself. In addition to the mine loop now being in operation, March 2012 saw the start-up of the pre- stripping stage. Looking towards the years ahead, by the end of 2013 it is hoped that pipeline construction will be complete, plant mechanics in place and the pre- commissioning stage will have begun. These events will then be followed in 2014 with the starting up of the commissioning phase, the opening of port facilities and the completion of ramp up operations. “The project has been progressing as planned and in accordance with the schedule put in place by the joint venture partners,” Luna says. “The project’s critical path remains unchanged with originally scheduled deadlines still maintained and entry into production expected to begin during the first semester of 2014.” As it relates to the immediate future, the goal for the rest of 2012 is to have the entire necessary infrastructure in place in order to allow the normal development of construction work. This requires the completion of camps, mesh halls, offices, recreational areas and a polyclinic. “In addition,” Luna says, “pre- stripping, pipeline and civil construction work in dry and wet areas have begun with our own equipment and personnel, while the project will continue to meet its expected output levels.” For more information about KGHM Polska Miedz - Sierra Gorda Project visit:
  9. 9. KGHMst. M. Sklodowska-Curie 4859-301 LubinT +48 076 74 78 200www.quadrafnx.comProduced