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KGHM Polska Miedz -
Sierra deep Project
Into the
         Gorda




              www.quadrafnx.com
KGHM Polska Miedz - Sierra Gorda Project



Into 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
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 copper
Salt water pool - Earth work         and molybdenum flotation stage.
SIERRA GORDA
                            KGHM Polska Miedz - Sierra Gorda Project


SalfaCorp
As 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 Latin
construction and assembly in mining and             America companies in engineering and
energy, has been awarded construction and           construction, leading the Chilean market with
installation 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 and
wet areas. With a contract totaling over $350       2,400 professionals.
million dollars, the Sierra Gorda project covers    Constant evolution and innovation has
all multidisciplinary areas with a commitment       permitted Salfa Montajes to be an industry
of over 10,000,000 man-hours from the               leader in its areas of specialty and service. It
start of Civil Works to the launch of the plant,    has reached successful international expansion
including raw materials stockpiling, secondary      to key regional markets such as Peru, Colombia,
and tertiary grinding (HPGR), secondary and         Panama, and Uruguay, with active participation
tertiary sieves, crushing, floatation, filtration   and dedicated client service.
and tailings thickeners, among other areas.         Throughout its history, the company has
As part of this process, for the past two years     demonstrated an outstanding ability to grow
Salfa Montajes has taken part in the project’s      in a sustainable manner and offering solutions
constructability with Sierra Gorda S.C.M., both     for a variety of services, including construction
in Chile and Canada.                                and industrial assembly, civil construction,
Salfa Montajes has been involved in every stage     infrastructure, industrial maintenance, mine
of the project, including construction strategy,    development, marine works, earth moving
organizational structure, logistics, as well as     and EPC projects.
assessment and awareness of the construction
CAPEX in each of the engineering stages.            E. salfacorp@salfacorp.com
                                                    www.salfacorp.com




                                                                                   OCTOBER 2012 | 1
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 eiusmod
dolor sit Gorda consectetur adipisicing sent
   Sierra amet, feature text.....Lorem ipsum
and molybdenum concentrate that is elit,              tempor incididunt ut elit, sed do eiusmod
                                                      consectetur adipisicing labore et dolore
sed dosit amet,plant where molybdenum is
to 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 minim
recovered and copper concentrateut labore
sed do eiusmod tempor Ut enim remains                 quis nostrud exercitation ullamcoveniam,
                                                      magna aliqua. Ut enim ad minim laboris
veniam,tails. Both concentrates ad minim
as dolorequis nostrud exercitationare then
et the magna aliqua. Ut enim ullamco                  nisi ut aliquipexercitation ullamco laboris
                                                      quis nostrud ex ea commodo consequat.
conveyed to ut aliquip ex ea a ullamco
veniam, quis nostrud exercitation railway
laboris nisi marketing areas bycommodo                Duisut aliquip ex ea commodo consequat.
                                                      nisi aute irure dolor in reprehenderit in
consequat. in the nearbyex ea commodo
laboris nisi ut aliquip irure dolor
line located Duis aute Antofagasta. in                voluptate velit esse cillumreprehenderit in
                                                      Duis aute irure dolor in dolore eu fugiat
reprehenderit in voluptateirure esse Polska
consequat. Duis between KGHM cillum
   A joint venture aute velit dolor in                nulla pariatur. Excepteur sint eu fugiat
                                                      voluptate velit esse cillum dolore occaecat
dolore eu fugiat voluptate velit esse cillum
reprehenderit in nulla Sumitomo Metal
Miedz, the Japanesepariatur. Excepteur                nulla pariatur. Excepteur sint occaecat
                                                      cupidatat non proident, sunt in culpa qui
sint occaecat cupidatatpariatur. Sumitomo
Mining company and the Excepteur
dolore eu fugiat nulla non proident, sunt             officia deseruntproident, sunt in culpa qui
                                                      cupidatat non mollit anim id est laborum.
Corporation, cupidatat nonGorda project
sint occaecat the Sierra proident, sunt
in culpa qui officia deserunt mollit anim id          Loremdeserunt mollit anim id est laborum.
                                                      officia ipsum dolor sit amet, consectetur
estculpa qui officia deseruntdolor the amet,
in laborum. Lorem ipsum mollit anim id
represents the implementation of sit three            adipisicing elit, sed sit amet, consectetur
                                                      Lorem ipsum dolor do eiusmod tempor
parties’ 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                     www.hatch.cl
  of which 7 percent is molybdenum                    www.hatch.cl



                                                                                      OCTOBER 2012 | 2
                                                                                      OCTOBER 2012 | 2
KGHM Polska Miedz - Sierra Gorda Project
Knight Piésold S.A.
Knight Piésold S.A. is currently
developing the detailed engineering of
the tailings transport, tailings storage
and water management systems for the
operation of the Sierra Gorda Project. In
order to address this project and comply
with the expectations of Sierra Gorda,
we have formed a multidisciplinary          enabled us to comply with the objectives
team composed of specialists from the       defined at the outset of the project, in
following disciplines: civil, electrical,   terms of both the agreed upon goals and
instrumentation, water and tailings         deadlines. This has resulted in a final
transport, geotechnical and geology,        design of the deposit that meets the
construction, risks, project control,       highest standards of both safety and
quality and safety.                         constructability.
The strengths of our team, coupled with
the collaboration and participation of      E. santiago@knightpiesold.com
the team from Sierra Gorda, have            www.knightpiesold.com


                                                                                                                                                                           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
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           www.icv.cl
                                                                                            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 be
SIERRA 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.
                                www.brassengineering.com                                       To date, 2012 has seen the project achieve                                          Flotation cells
KGHM Polska Miedz - Sierra Gorda Project

CAT 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:
                     www.quadrafnx.com
KGHM
st. M. Sklodowska-Curie 48
59-301 Lubin

T +48 076 74 78 200
www.quadrafnx.com




Produced by:




www.bus-ex.com

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

  • 1. KGHM Polska Miedz - Sierra deep Project Into the Gorda www.quadrafnx.com
  • 2. KGHM Polska Miedz - Sierra Gorda Project Into 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. 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 copper Salt water pool - Earth work and molybdenum flotation stage.
  • 4. SIERRA GORDA KGHM Polska Miedz - Sierra Gorda Project SalfaCorp As 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 Latin construction and assembly in mining and America companies in engineering and energy, has been awarded construction and construction, leading the Chilean market with installation 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 and wet areas. With a contract totaling over $350 2,400 professionals. million dollars, the Sierra Gorda project covers Constant evolution and innovation has all multidisciplinary areas with a commitment permitted Salfa Montajes to be an industry of over 10,000,000 man-hours from the leader in its areas of specialty and service. It start of Civil Works to the launch of the plant, has reached successful international expansion including raw materials stockpiling, secondary to key regional markets such as Peru, Colombia, and tertiary grinding (HPGR), secondary and Panama, and Uruguay, with active participation tertiary sieves, crushing, floatation, filtration and dedicated client service. and tailings thickeners, among other areas. Throughout its history, the company has As part of this process, for the past two years demonstrated an outstanding ability to grow Salfa Montajes has taken part in the project’s in a sustainable manner and offering solutions constructability with Sierra Gorda S.C.M., both for a variety of services, including construction in Chile and Canada. and industrial assembly, civil construction, Salfa Montajes has been involved in every stage infrastructure, industrial maintenance, mine of the project, including construction strategy, development, marine works, earth moving organizational structure, logistics, as well as and EPC projects. assessment and awareness of the construction CAPEX in each of the engineering stages. E. salfacorp@salfacorp.com www.salfacorp.com OCTOBER 2012 | 1
  • 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 eiusmod dolor sit Gorda consectetur adipisicing sent Sierra amet, feature text.....Lorem ipsum and molybdenum concentrate that is elit, tempor incididunt ut elit, sed do eiusmod consectetur adipisicing labore et dolore sed dosit amet,plant where molybdenum is to 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 minim recovered and copper concentrateut labore sed do eiusmod tempor Ut enim remains quis nostrud exercitation ullamcoveniam, magna aliqua. Ut enim ad minim laboris veniam,tails. Both concentrates ad minim as dolorequis nostrud exercitationare then et the magna aliqua. Ut enim ullamco nisi ut aliquipexercitation ullamco laboris quis nostrud ex ea commodo consequat. conveyed to ut aliquip ex ea a ullamco veniam, quis nostrud exercitation railway laboris nisi marketing areas bycommodo Duisut aliquip ex ea commodo consequat. nisi aute irure dolor in reprehenderit in consequat. in the nearbyex ea commodo laboris nisi ut aliquip irure dolor line located Duis aute Antofagasta. in voluptate velit esse cillumreprehenderit in Duis aute irure dolor in dolore eu fugiat reprehenderit in voluptateirure esse Polska consequat. Duis between KGHM cillum A joint venture aute velit dolor in nulla pariatur. Excepteur sint eu fugiat voluptate velit esse cillum dolore occaecat dolore eu fugiat voluptate velit esse cillum reprehenderit in nulla Sumitomo Metal Miedz, the Japanesepariatur. Excepteur nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui sint occaecat cupidatatpariatur. Sumitomo Mining company and the Excepteur dolore eu fugiat nulla non proident, sunt officia deseruntproident, sunt in culpa qui cupidatat non mollit anim id est laborum. Corporation, cupidatat nonGorda project sint occaecat the Sierra proident, sunt in culpa qui officia deserunt mollit anim id Loremdeserunt mollit anim id est laborum. officia ipsum dolor sit amet, consectetur estculpa qui officia deseruntdolor the amet, in laborum. Lorem ipsum mollit anim id represents the implementation of sit three adipisicing elit, sed sit amet, consectetur Lorem ipsum dolor do eiusmod tempor parties’ 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 www.hatch.cl of which 7 percent is molybdenum www.hatch.cl OCTOBER 2012 | 2 OCTOBER 2012 | 2
  • 6. KGHM Polska Miedz - Sierra Gorda Project Knight Piésold S.A. Knight Piésold S.A. is currently developing the detailed engineering of the tailings transport, tailings storage and water management systems for the operation of the Sierra Gorda Project. In order to address this project and comply with the expectations of Sierra Gorda, we have formed a multidisciplinary enabled us to comply with the objectives team composed of specialists from the defined at the outset of the project, in following disciplines: civil, electrical, terms of both the agreed upon goals and instrumentation, water and tailings deadlines. This has resulted in a final transport, geotechnical and geology, design of the deposit that meets the construction, risks, project control, highest standards of both safety and quality and safety. constructability. The strengths of our team, coupled with the collaboration and participation of E. santiago@knightpiesold.com the team from Sierra Gorda, have www.knightpiesold.com 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. 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 www.icv.cl 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 be SIERRA 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. www.brassengineering.com To date, 2012 has seen the project achieve Flotation cells
  • 8. KGHM Polska Miedz - Sierra Gorda Project CAT 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: www.quadrafnx.com
  • 9. KGHM st. M. Sklodowska-Curie 48 59-301 Lubin T +48 076 74 78 200 www.quadrafnx.com Produced by: www.bus-ex.com