Post on 28-Sep-2020
Mining in Chile Interregional IAEA-CYTED-UNECE Workshop on
UNFC 2009 Applications in Uranium and Thorium
Alberto Salas President & CEO
Chilean Mining Association Santiago, July 10th 2013
SUBJECTS
SONAMI represents the Chilean private mining
The Chilean Mining Association (SONAMI) Chilean Mining: Worldwide and National
Leadership Challenges & Opportunities
Represents large, medium and small-scale mining companies
SONAMI : Chilean Mining Association
SONAMI is a trade organization that brings together and represents large, medium and small-scale metallic and non-metallic mining companies. SONAMI was founded on September 26th, 1883 and since its inception, has made significant contributions to the development of private mining institutions and mining legislation.
SONAMI: Chilean Mining Association
Promote the development of private mining
Promote the development of private mining.
Be a referent in mining and represent our associates interests face to Chilean authorities.
Provide information and support services to our members in technical, legal, labor, environment, tax and economic aspects.
Represent Chilean private mining among international institutions (ICMM, SIM, IWCC, OLAMI-International).
We have worked to reach the following objectives:
SONAMI: Chilean Mining Association
Fundada hace 130 años, en septiembre de 1883
75 mining companies, large and medium-scale, and exploration companies.
38 mining associations, gathering more than 2.000 small mining companies
MINING COMPANIES
Large-scale mining (Chile)
MINING COMPANIES
Medium-scale mining (Chile)
SMALL MINING ASSOCIATIONS
2.000 SMALL MINERS
Chilean Mining
Worldwide and National Leadership
The Chilean Mining Association (SONAMI) Chilean Mining: Worldwide & National
Leadership Challenges & Opportunities
CHILE: A SMALL COUNTRY
However, in mining ….
We represent the 0,6% of the
world surface and 0,25% of
population and income
CHILE: LEADER IN MINING
World Production
Ranking
Product Production
Chile 2012
% of world
production
1° Copper 5.450 MTMF 32%
1° Natural nitrates 930 MTM 100%
1° Iodine 16.000 TM 58%
1° Lithium 70.000 TM 45%
1° Rhenium 27.000 TMF 52%
3° Molybdenum 35.000 TMF 15 %
The first world copper producer
WORLD COPPER RESERVES
We have the biggest copper reserves of the world
Chile 28,0% Australia 12,6% Perú 11,2% EEUU 5,7% México 5,6%
Fuente: U.S. Geological Survey, January 2013
MINING CONTRIBUTION GDP (%)
20.7 20.5
14.0 13.1 16.0 14.9 13.0
15,7%
0
5
10
15
20
25
2006 2007 2008 2009 2010 2011 2012
LEADER IN EXPORTS Average 2006-2012: 64,4 %
66 66.9 59.8 61.6 66.4 64.4 64.8
64,4%
0
10
20
30
40
50
60
70
80
2006 2007 2008 2009 2010 2011 2012
Source: SONAMI, based on Central Bank database.
MINING IN TOTAL FISCAL REVENUE
34.2 31.4
22.9
13.1
20.6
18.4 13.9
21,7%
0
10
20
30
40
2006 2007 2008 2009 2010 2011 2012
%
Source: SONAMI, based on DIPRES database.
MINING IN TOTAL FISCAL REVENUE 2006-2012 ( US$ millions)
70000
5400
41500
18900
4100 1300
Aporte Minería Presupuestos
OtrosDesarrollo SocialObras PúblicasSaludCongreso,PoderJudicial y Contraloría
330
520
280
160
Minería
Energía
Medio Ambiente
Secr. General dela Presidencia
Source: SONAMI, based on DIPRES database.
HIGHEST SALARIES (US$/month March 2013)
Source: Superintendencia de Pensiones
7061.0581.060
1.1381.250
1.9502.0062.344
1.116
AGRICULTURECOMMERCE
CONSTRUCTIONTRANSPORT
INDUSTRYFINANCE
ELECTRICITYMINING
COUNTRY
ACCIDENT RATE PER ECONOMIC ACTIVITITY (each 100 workers) 2009 - 2012
Tpte. Ind.(1) Agric. (2) Comer. Constr. Serv. Electr.(3) Minería Pais2009 7.7 7.4 7.2 5.7 5.7 3.8 3.6 2.2 5.32010 7.7 7.8 6.9 5.9 5.5 4.0 3.8 2.0 5.42011 7.9 7.8 6.8 6.2 5.8 4.0 4.1 1.8 5.52012 6.9 7.0 5.9 5.8 5.3 3.5 2.1 1.6 4.9
1.6
4.9
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
Mining: Lowest accident rate
In other words …
Mining is the most solid pillar that sustains economic and social development of Chile and is the most competitive industry available in the country.
2022: COPPER PRODUCTION WILL REACH 9.000.000 TONS
5,450,000 5,450,000
3,550,000
3,000,000
5,000,000
7,000,000
9,000,000
2012 2022
2022: GOLD PRDUCTION WILL REACH 150 TONS
2022: SILVER PRODUCTION WILL REACH 2.800 TONS
2022: IRON PRODUCTION WILL REACH 40.000.000 TONS
2022: LITHIUM PRODUCTION WILL REACH 110.000 TONS
2022: IODINE PRODUCTION WILL REACH 25.000 TONS
2022: POTASSIUM PRODUCTION WILL REACH 2.500.000 TONS
Origin Identified Resources (RAR + IR) (Ton U)
Surface Deposits 68.0
Metasomatic Deposits 1,762.8
Cenozoic Volcanic Deposits 100.0
Unconventional Deposits 1,798.0
Total
3,728.8
Identified Chilean resources (RAR + IR) are small, relative to identified resources worldwide. Is equivalent to only 0.07%.
Identified Resources of Uranium in Chile
Uranium Production in Chile
The nearest possibility of uranium production in Chile, is as a byproduct of copper mining.
In 2008 – 2009, CODELCO and CCHEN sign cooperation agreements for performing uranium extraction activities.
In 2011, CODELCO agreed a collaborative alliance with France, in connection with its strategy to ensure the future supply of uranium.
Radomiro Tomic facilities has a pilot plant to assess the feasibility of installing an industrial plant. The pilot plant produces uranium concentrate (yellow cake) from copper treatment leach solutions (15 to 20 ppm of uranium).
The pilot plant accumulated production (20 to 30 kilos of yellow cake) has been available to the CCHEN.
Challenges & Opportunities
SONAMI represents the Chilean private mining
The Chilean Mining Association (SONAMI) Chilean Mining: Worldwide and National
Leadership Challenges & Opportunities
STRATEGIES CHALLENGES
Muchas Gracias...
The mining industry increasingly faces a complex scenario:
Social: increased participation of stakeholders;
Political: mining remains an important issue on the political agenda. Focus on benefits distribution and taxation.
Environment: increasingly stringent regulations.
Technical: declining ore grades.
Competitiveness (energy costs; labor costs, capex, etc.)
CHALLENGES TO MINING (CHILE)
Muchas Gracias...
Acceptance and industry recognition;
Water resources;
Energy;
Innovation and technology transfer;
Human Capital
Sociedad Nacional de Minería
Muchas Gracias...
Chile and its mining: a world of opportunities.
Thank you