Alliance Copper LimitedAlliance Copper Limitedand theand the

Bioleaching of CopperBioleaching of Copperbyby

Cleve Lightfoot Cleve Lightfoot –– Manager TechnologyManager TechnologyPresentation to the December Meeting of CIMPresentation to the December Meeting of CIM

Radisson Hotel, SantiagoRadisson Hotel, Santiago

ACL’s VisionACL’s Vision

“We are the world’s leading company in the business of “We are the world’s leading company in the business of treating complex copper concentrates, product of the treating complex copper concentrates, product of the

integration of the technology of bioleaching and a highly integration of the technology of bioleaching and a highly qualified and motivated team.qualified and motivated team.

We generate value for our clients, shareholders and the We generate value for our clients, shareholders and the country by, developing innovative solutions, applying an country by, developing innovative solutions, applying an

environmentally sustainable technology, and working safely environmentally sustainable technology, and working safely in a climate of trust and collaboration ”in a climate of trust and collaboration ”

ACL’s StrengthsACL’s Strengths•• Is a “junior” companyIs a “junior” company

It has the resources to develop its own technology It has the resources to develop its own technology and projectsand projects

–– AdministrationAdministration–– OperationOperation–– DesignDesign–– Technology improvementsTechnology improvements

•• Is a “senior” companyIs a “senior” companyIt has the backIt has the back--up of its shareholders Codelco:BHP up of its shareholders Codelco:BHP BillitonBilliton

–– FinancialFinancial–– TechnologicalTechnological

Grades (%

)

Flotation1901

Open Pit1907

Conversion1909

Flash Smelting

1949

SX1940’s

3

6

9

12

Prod

uctio

n (M

t)

0

1

2

3

4

5

01900 1925 1950 1975 2000

¿what is next?

Technology BreakthroughsTechnology Breakthroughs

•• The fundamentals have changedThe fundamentals have changed

•• Other industries are more Other industries are more attractive to the younger attractive to the younger generationgeneration

•• Relevance of Environmental Relevance of Environmental mattersmatters

•• Sustainability of existing Sustainability of existing operations questionableoperations questionable

•• Social responsabilitySocial responsability

• Life Cycle Assessments

• Impact analyses

Relationship with the

community

• HSECQ• Triple bottom

line reporting

• More attention to industry leadership(Proactivity)

Requirements for new skill groups

(microbiology)

Industry ThreatsIndustry ThreatsSlow reaction

with a corresponding loss in value &

confidence

• Decrease the consumption of energy

• Accelerate chemical reactions

• Optimize calorific efficiencies

• Improve the continuity of processes

ACL:The FundamentalsACL:The Fundamentals

TechnologyTechnology EnvironmentEnvironmentHealth & Safety

BusinessBusinessHealth & Safety

ACL: The TechnologyACL: The Technology

The bioleaching of complex copper The bioleaching of complex copper sulfide concentrates in stirred reactorssulfide concentrates in stirred reactors

ACL: The TechnologyACL: The TechnologyMesophilesMesophiles ThermophilesThermophiles

Temperature ofTemperature ofoperacionoperacion

4040°°CC 7070--8080°°CC

Rigid CellRigid Cell

WallWallSoft sheathSoft sheath

((ApplicationApplication Secondary sulfidesSecondary sulfides Primary sulfidesPrimary sulfides

Chalcopyrite, Chalcopyrite, enargite)enargite)

Stage ofDevelopmentDevelopment

Industrial gold plants

Pilot plants/demoPilot plants/demoWith Base MetalsWith Base Metals

Pilot plant; Reactors of 5 / 50 y 300 m5 / 50 y 300 m33

Physical naturePhysical nature

MicroMicro--organismsorganisms BacteriaBacteria of the typeof the type

AcidothiobacilasAcidothiobacilasArchaeaArchaea of the typeof the type

SulfolobusSulfolobus

SulfolobusAcidithiobacillus ferrooxidans

Stage of Industrial gold plants Pilot plant; Reactors of

•• Diverse concentrates tested Diverse concentrates tested from different sources.from different sources.

•• Good metal recoveriesGood metal recoveries•• ScaleScale--up factors developedup factors developed

UzbekistanUzbekistan

ChileChile

IndonesiaIndonesia

New ZealandNew ZealandSouth AfricaSouth Africa

ZimbabweZimbabweZambiaZambia

UgandaUganda

GhanaGhana

PeruPeruBrazilBrazil

AustraliaAustralia

USUS

CanadaCanada RussiaRussia

ChinaChina

DRCDRC

BotswanaBotswana

IranIran

80

85

90

95

100

Concentrates

Cu

diss

olut

ion

[%]

ACL: A Proven TechnologyACL: A Proven Technology

ACL: The advantages of the ACL: The advantages of the Technology Technology

New smelter

Existing smelter (TC/RC)

Impurity Content (As)

Cos

t

BioCOP

ACL: Advantages of the Technology ACL: Advantages of the Technology (As)(As)

•• State of the ionsState of the ionsAs(III) As(III) --> As(V)> As(V)Fe(II) Fe(II) --> Fe(III)> Fe(III)

•• Precipitation of Ferric Precipitation of Ferric arsenate arsenate

amorphous amorphous crystalline [scorodite]crystalline [scorodite]

•• StabilityStabilityBoth forms pass both the Both forms pass both the TCLP & SPLP testsTCLP & SPLP tests

0

0.2

0.4

0.6

0.8

1

1.2

Cu Fe As

TCLPSPLP

Limit As < 5mg/L

[mg/

L]

ACL: Precious Metal RecoveryACL: Precious Metal Recovery

•• Ag & Au remain in the solids (separation of Ag & Au remain in the solids (separation of products) products)

•• The investment required in the Ag plant is The investment required in the Ag plant is favoured due to mass loss during bioleachingfavoured due to mass loss during bioleaching

•• Brine leaching established as the best Brine leaching established as the best alternativealternative

ACL: Immediate ChallengeACL: Immediate Challenge

““Demonstrate the technology in a Prototype Demonstrate the technology in a Prototype Plant, now under construction, using complex Plant, now under construction, using complex

copper concentrates. This step signifies an copper concentrates. This step signifies an investment of some US$60 millioninvestment of some US$60 million”

ACL: Prototype Plant ACL: Prototype Plant -- FlowFlow

Pre-leach

SL

BIOCOP

SX-EW

SX Pilot Plant

SX – EW Oxide circuit

Chuquicamata

Bioleach CCD

Concentrate

Management

Residues to Montecristo

EW Pilot Plant

PLANTA PROTOTIPO

TUBERIA DE PLS

PLANTA DE OXIDOS

CHUQUICAMATA

ACL: Prototype Plant ACL: Prototype Plant -- LocationLocation

Offices

Limestone Plant

Preleach

Bioleach

SXEW

Tank farm

EmergencyPondPLS

Pond

Main S/S

CCD

Filtrating

ACL: Prototype PlantACL: Prototype PlantWater tanks

Grinding

ACL: Prototype Plant ACL: Prototype Plant --MilestonesMilestones•• Construction:Construction: MayMay--02 02 –– JulyJuly--0303•• Commissioning:Commissioning: 33rdrd quarter 2003quarter 2003•• StartStart--up:up: 44thth quarter 2003quarter 2003•• End of technical evaluation:End of technical evaluation:

11stst quarter 2005quarter 2005

Photo: 19 October 2002

ACL: Prototype Plant ACL: Prototype Plant -- GeneralGeneral•• Capital Investment: 60 MUS$Capital Investment: 60 MUS$•• Principal Contracts: Principal Contracts:

»» EPCM EPCM »» Oxygen Supply Oxygen Supply »» Electrical Energy Supply Electrical Energy Supply

•• Man Hours EPCM:Man Hours EPCM: 128.690128.690•• Man Hours Construction:Man Hours Construction: 511.427511.427•• Concrete:Concrete: 6.000 m6.000 m33

•• SteelSteel: : 430 ton430 ton•• Purchase ordersPurchase orders: 72 (35 : 72 (35 equipmentequipment 37 37 materialmaterial) )

ACL: Prototype Plant ACL: Prototype Plant ––Concentrate ManagementConcentrate Management

ESTANQUE RECEPCION

CONCENTRADO

MOLINO DE BOLASDE RE-USO

ESTANQUE ALIMENTACION

A BIOLIXIVIACION

ESPESADOR PRELIXIVIACION

CAJON DEALIMENTACION

ESTANQUE DENUTRIENTES

SAF 2205

REACTORES PRELIXIVIACION

SAF 2205

ACL: Prototype Plant ACL: Prototype Plant –– PrePre--LeachingLeaching

REACTOR PRIMARIO P2HORMIGONSTEBBINS

REACTOR SECUNDARIO S1

HORMIGONSTEBBINS

CAJON DE ALIMENTACION

A CCDSAF 2205

CAJON DE ALIMENTACION

DE 4 VIAS,SAF 2205

ACL: Prototype Plant ACL: Prototype Plant ––BioleachingBioleaching

ACL: Prototype Plant ACL: Prototype Plant –– CCDCCDEDIFICIOFILTRO

ESTANQUE ESPESADOR CCD

ESTANQUE DECANTADOR CCD

ESTANQUE ALIMENTACION A

FILTRO

ACL: Prototype Plant ACL: Prototype Plant ––OperationsOperations•• Production of 20.000 tonnes cathode per Production of 20.000 tonnes cathode per

annumannum•• Plant Compliment: 52 persons Plant Compliment: 52 persons

»» Supervision and Administration: 12 personsSupervision and Administration: 12 persons»» Operation: 30 personsOperation: 30 persons»» Mantenance: 10 persons Mantenance: 10 persons

•• Services of third parties:Services of third parties:»» Various suppliesVarious supplies»» Maintenance of specialized equipmentMaintenance of specialized equipment»» LaboratoryLaboratory»» Disposal of ResiduesDisposal of Residues»» Specialized professional servicesSpecialized professional services

HSECQHSECQSA

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and

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The bioleaching of copper concentrates in agitated reactors

ALLIANCE COPPER LIMITED HSECQ Policy

IMPR

OV

EM

EN

T

1990 1995 2000

Pilot Plant

Laboratory

2005

Commercialization

DemostrationPhas

e

Pilot Plant in Chuqui

Piloting Thermophiles

ITR Operation

Creation of ACL

20ktpa Prototype Plant

In construction

100-200ktpa Industrial Plant

2010

ACL: Future Challenges ACL: Future Challenges

ACL: A Leading Company ACL: A Leading Company

Innovation

Core Competencies• Business development

• Technology• Engineering

Projects Operations