Codelco Chuquicamata BFM 84

CODELCO CHUQUICAMATA

GOING UNDERGROUND

CODELCO CHUQUICAMATA UNDERGROUND PROJECT

THE CODELCO CHUQUICAMATA COPPER MINE HAS BEEN A SUCCESSFUL OPEN PIT OPERATION FOR YEARS. BUT NOW IT’S UNDERGOING A TRANSFORMATION.

GOING UNDERGROUND PROJECT MANAGED BY: GARY SMITH

Codelco is an autonomous company, owned by the Chilean people. It is the main producer of copper in the world and a leader in mineral reserves on a global level. In many ways, it is the engine powering Chile’s development. One of the key projects powering that engine is the Codelco Chuquicamata Underground project.

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odelco Chuquicamata Underground project consists of the transformation of the prosperous open-pit mine into one of the largest and most efficient underground operations in the world, allowing the exploitation of resources beneath an open pit deposit that has been giving wealth to Chile for over 100 years.

While the open pit’s profitability has begun to decline, beneath that pit there are more than 1,700

million tons of copper reserves that have been quantified, with an average grade of 0.71%.

Andrés Avendaño, Project Manager explains, “We can exploit through macro-blocks these reserves, through the extraction process known as block caving, and the underground mine will comprise three levels of production.

We’ve just developed part of the first level and the main infrastructure of the mine

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CODELCO CHUQUICAMATA UNDERGROUND PROJECT

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ORICA - WEBGEN™ USE OF WIRELESS ELECTRONIC BLASTING SYSTEM (WEBGEN™ 100) AS SOLUTION FOR BLAST PRECONDITIONING IN CHUQUICAMATA UNDERGROUND MINE In 2018, Codelco invited Orica to the first preconditioning of the Chuquicamata Underground Mine Project. Mine which use Caving method to extract the ore body through macroblock variant with a copper mining production rate close to 140,000 t / day.

Project’s engineering studies considered the application of preconditioning through hydraulic fracturing technique and blasting also (both) to capture several benefits, key to accomplish stages such as: • Ensure a correct connection with the subsidence crater.

• Better flow, limiting the lateral direction, towards the West Fault (FW).

• Challenging extraction rate and ramp up, subject to geomechanically considerations or limitations.

• Rock mass quality impact (decrease).

• Reduction of secondary fragmentation and its economic benefits.

• Less hang ups and improvement of around 30% in secondary fragmentation, due to smaller size and quantity of oversize at the draw points.

• More uniform material size with better material handling.

Blast preconditioning is based on the reduction of the rock mass resistance and variation of its properties through shock waves propagation, using a high-speed explosive through multiple initiation points. The main objective of this confined blasting is to define several interaction zones into the same hole and between them, to reduce the rock mass properties, creating a zone “preconditioned by the explosive”.

Codelco gave Orica the implementation, loading, blasting and technical monitoring of the first preconditioning with explosives at the mine. Since Orica had previous experience to implementing a comprehensive service with Subtek™ Deep bulk emulsion and i-kon III™ electronic blasting system at Codelco Andina, El Teniente and Salvador from 2000 onwards.

For the implementation, an anchoring system with rope was placed in the upper part of the holes according to the design height, and a “garland” composed of a set of WebGen™ primers, arranged on the rope and raised every 8 mts through the rope. The use of WebGen™ primers provided a great operational benefit and initiation assurance, as it did not have wire like conventional electronic detonators that in previous experiences some were unintentionally cut or damaged generating high leakage, losing some initiation points in every hole and decrease technique performance.

For this stage, Orica with a provider develops two mechanized lifting systems allow the lifting of the steel ropes, emulsion dewatering hose and garlands, and in the same way in the construction of a cement stemming (20m to 32m) to lift and arrange the cement injection pipes and bulk. This made it possible to reduce the exposure of personnel by moving them away from the collar of the holes, avoiding potential dangers of falling construction elements and rocks and reducing the physical exposure of personnel to risky situations.

In the loading stage, bulk emulsion “Subtek Deep ™” had to be injected through the central pipeline up to a height of 120m to 150m (2.0 to 4.0 ton / hole), with a mobile loading trucks (MCUs) with high pumping capacity (75kg / min) and 6-ton storage tanks developed

by Orica especially for this project. The great challenge consisted in avoiding stopping the loading, given the complexity to resume the emulsion injection.

For the blasting, the initiation is carried out using Orica’s WebGen™ 100 wireless system (without wire) remotely and safely from 700m distance from the blast (even from surface in instance), reducing operational interference with other development blasts at the same level or sector.

Finally, the first preconditioning with explosives in Chuquicamata project was successful, managing to prepare, load and initiate blast safely and remotely, delivering outcomes within the terms considered in the contract. We thank Codelco for its openness and support throughout the process for allowing us to implement innovative technologies that permits us to make the process more efficient and safer.

Preconditioning through blasting was implemented at Chuquicamata through a comprehensive blasting Service, only excluding the drilling process. This allowed Orica to use its proven technologies, including the development and test of new ones such as safe lifting systems, large capacity trucks (MCUs), among others. In this case and for the first time in its world application, Orica introduce new wireless initiation technology WebGen™ 100 for blast preconditioning initiation.

Figure 1. Wireless primer- WebGen™ 100 Blasting preconditioning was carried out, loading uphole in modules with triangular and / or diamond shapes composed of three to four holes with variable lengths from 130m to 150m and 6 ½ inches diameter, from undercut and production level, respectively.

www.orica.com/products-services/blasting/wireless/

CODELCO CHUQUICAMATA UNDERGROUND PROJECT (ventilation and access tunnels).

The production of this operation began in 2019, and we are on the first of a seven-year ramp-up in which the underground mine will reach a production rate of 140,000 tons per day, in 2026.”

That figure means the production of about 320,000 tons of fine copper and more than 16,000 tons of fine molybdenum per year.

“This is a highly complex and long-lasting project,” Avendaño points out. “Due to its size, it’s being built in three stages. The initial stage, which was built to start production, involves the construction of all the permanent infrastructure that will last the life of the mine. Now we’re starting the second stage that provides sustainability for the first level of the project to reach maximum productive capacity. It involves the development of a series of macro-blocks around the first level and the pre-feasibility studies for the second level.”

The third and final stage is the construction of the second and third levels of the mine. Nicolás Miranda, the strategic planning manager for the project remarks, “With these characteristics, it’s a challenge to execute the engineering, construction and commissioning of this project and maintain strategic continuity almost twenty years from its first conceptualisation.”

Among the challenges of the construction are a 1km deep air extraction shaft, 140km of horizontal and vertical underground developments, 7.5km of a two-way access tunnel and another 7.5km

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Andrés Avendaño, Project Manager, Chuquicamata Underground Project.

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CODELCO CHUQUICAMATA UNDERGROUND PROJECT

tunnel for transporting ore through a conveyor belt system. Two Injection tunnels 4.3 and 4.4km long to bring clean air into the mine. But the technical challenges are just the beginning.

“It was not only a technical challenge but also a cultural one, establishing an underground mine and underground culture in an area with predominately surface operators,” says Miranda. “We had to change the culture to start operations.”

Innovation has also been a huge part of the project, with the implementation of semiautonomous LHDs operated from an integrated operations centre on the surface.

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“We have remote control hammers, and on-demand ventilation that injects the necessary air into the work front allowing energy saving,” says Miranda.

MAKING THE CHANGE

All this effort in opening up the underground mine does not mean the open pit is finished, however. In fact, the operation has recently been extended.

Felipe Marinkovic, Construction Manager of the project points out. “Always in the original conceptualisation of the project the transition between the underground and overground operations was estimated to feature

Nicolás Miranda, Strategic Planning Manager, Chuquicamata Underground Project.

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CODELCO CHUQUICAMATA UNDERGROUND PROJECT

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CODELCO CHUQUICAMATA UNDERGROUND PROJECT

approximately 18 months when both mines were working at the same time. Also, the underground mine has been having positive results in its ramp-up, so we decided to extend the exploitation phase of the pit for another year, cause that coexistence between the mines would create more profit following the rough year of 2020.”

As well as hitting businesses economically, 2020 has also faced Codelco with practical challenges.

“During 2020 we were trying to award new contracts for the development of the underground mine to start the second phase,” Marinkovic recalls. “With the pandemic, we thought the best strategy was to extend the actual contracts of contractors who worked on the first phase of the mine. Rather than bring in new people, we

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realised it was a better decision to work with the contractors that have been working for five years on the project and know the site.”

In 2021 the project team has to ensure continuity in the exploitation of the deposit, this involves 110 kilometres of developments, the incorporation of 12 Macroblocks in production, and the assembly and commissioning of six crushing rooms.

A NEW PERSPECTIVE

As Miranda said, moving a lot of Chuquicamata’s previously open-pit focused workers into an underground environment involved a big cultural shift.

“We converted a lot of the operators from the open pit to the underground mine,” explains Miranda. “We took people from the open pit, we trained them for almost a year and then put

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CODELCO CHUQUICAMATA UNDERGROUND PROJECT them into the operations of the underground mine.”

This decision to retrain their workers helped mitigate a lot of misgivings some had about the switch-over.

“When we started conceptualising the project some staff were very reticent about the underground mine because they thought they’d lose their jobs. But we transformed them to underground mine staff,” says Miranda.

Indeed, Codelco’s dedication to investing in and growing its staff’s capabilities is integral to Chuquicamata’s long-term success as a project.

“IT IS NOT ENOUGH TO HAVE PLAN; THE PRIMARY EMPHASIS HAS TO BE ON THE TEAM’S DNA.”

Felipe Marinkovic, Construction Manager, Chuquicamata Underground Project.

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“I would say that having a long-term staff means we seek the development of our staff,” Miranda points out. “We have a well laid-out succession plan.

We make sure all managers throughout the project come from within the company so there is career development within the project. We also give training spaces in matters of project management including professional qualifications, master’s degrees and even doctorates for the more technical subjects.”

This investment and support provide a common purpose has been essential to Chuquicamata’s success.

“It is not enough to have plans; the primary emphasis has to be on the team’s DNA. The people are the ones who build the project,” insists Miranda. “Both our organisation and designs must be flexible, actively managing risks. We

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CODELCO CHUQUICAMATA UNDERGROUND PROJECT

have to install capacity for collective decisions and generate an identity for the team owners and contractors as one team. The whole team must be aligned and communicate constantly at the business level through collaborative work and business leadership. That’s what we have planned for the future. Take all that we’ve learned from the first stage and bring it to the second stage.”

Diversity has been a big part of making that team a success, as Miranda tells us, “I would like to highlight that we’re a team that mixes experience and youth very well, giving opportunities to the young and listening to experience. That is the key to these long-term projects.”

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“THE PRICE OF THE COPPER CAN BE VOLATILE, MEANING DECISION MAKING IS DIFFICULT THROUGHOUT THE VARIOUS STAGES OF THE PROJECT.” REMAINING FLEXIBLE

Today things are looking good for Chuquicamata in particular and Codelco in general.

Despite being forced to relying on skeleton crews across its operations last year, due to the strict measures imposed by the coronavirus outbreak, Codelco

has managed to grow the output from its mines by 2% to 1.618 million tonnes. The company reported pre-tax profits of $2.078 billion for last year, a 55% leap in profits that arrived amid growing global metal prices and high sales as markets began to recover from the pandemic. An 8.6% drop in direct cash costs down to $1.294 per pound has also helped Codelco’s profits, while increased production and a strengthening peso have also helped the company. The company’s copper sales grew by 1.5% year-on-year while higher ore grades have generated positive performances not only at Chuquicamata, but also at Codelco’s mines at Ministro Hales, Andina, and Salvador.

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CODELCO CHUQUICAMATA UNDERGROUND PROJECT

Looking back, Avendaño is proud of the outcomes of the project, even if it has differentiated from its earliest plans, responding to its growing knowledge of the resource, new challenges, and changes in the wider economic environment.

“The price of the copper can be volatile, meaning decision making is difficult throughout the various stages of the project,” says Avendaño. “As a consequence of that, there have been changes in the environment which led us to rethink the project mid-career.

The estimated completion of the project changed a lot, as the original project was not executable in the necessary timeframe.”

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This has led to significant reassessments of Codelco’s plans even as they are in action, but Avendaño sees this as a strength of the project.

“In certain stages of the project we have had to rethink things,” he admits. “But when you’re too frightened of getting something wrong you don’t have that drive that you can do it better. We designed this project in 2008 and 2009 with a different concept but

the price and costs change, the technology is different, so we had to redesign the project, changing from a design with maximum flexibility and autonomy to one that privileged efficiency and maximises productivity implementing new technology.”

At the same time as adapting to new challenges, Codelco also moves quickly to take advantage of opportunities as they arise.

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TEAMS WORK. means completing projects by building trust. STRABAG Züblin Chile is proud to be a part of this exciting Codelco project. Partnering with ambitious teams within client and contractor and innovative technologies, allowed Züblin to achieve underground advances of up to 1,800 meters per month and 5 million working hours without lost time incident.

The STRABAG Group is a leader in the field of construction and technology, taking part in 12,000 projects per year worldwide. Our South American team has been involved in the regional mining and civil engineering sectors for more than three decades, because our value as partners rests on our commitment to quality, reliability and an innovative spirit. www.strabag.cl

ZÜBLIN STRABAG, Alonso de Córdova 4355 oficina 1001, Vitacura, Santiago – Chile

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“To see the future we need to understand the past and the achievements we made in meeting the target terms set for April 2019, our original date of production,” Avendaño says. “In October we started commissioning the mineral handling system. We also managed to save $700 million compared to the budget through the implementation of productivity levers. These good results motivated us to go in search of new challenges, reducing the amount of time taken to ramp up from seven to five years and negotiating new bids. We are in the process of a strong negotiation with our contractors to start the second phase.”

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CODELCO CHUQUICAMATA UNDERGROUND PROJECT Part of the reason this adaptability is possible is that Codelco boasts a modern, professional, transparent and auditable corporate governance.

There are demanding regulations in permanent review on transparency, probity and governance for the entire company, enabling the company to make clear, positive decisions in the field.

Avendaño points out, “Regarding the governance of Codelco, we’re extraordinarily robust which is important for this to work.”

That flexibility will be a key part of Codelco’s story going forward, as it has been from the outset.

“What we learn here is, first of all, we must plan with ambition,” reflects Avendaño. “We have to plan with ambition while running an empowered team.”

Avendaño keeps returning to the message that the hard

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technical areas of a project aren’t what makes you successful.

“The key to our success was in the behaviour of the organisation and the people and the softer aspects of project management,” he tells us. “One of the softer lessons we learned in the management of the project is that the project execution plans are a fundamental piece of design.

It’s a business imperative in every project. In matters of productivity, the gains are big, but you have to work with contractors as one team. I talked about this a little bit before, but a team needs its own identity, fully informed of its goals and motivating achievements. We have to celebrate achieving each goal. It’s important to have that continuous process to maintain the stamina and motivation of the team.”

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CODELCO CHUQUICAMATA

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