Desalination Projects in Chiles Mining Industry

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Business opportunities in relation to the use of sea water by the Mining Industry in Chile Recent studies published by Chile’s Mining Council and the Ministry of Mines demonstrate that the cost of sea water is U.S. $ 5.1 per cubic meter (m3), versus $ 1.6 / m3 for fresh water. Despite the higher cost, miners are opting towards the use of sea water because of the scarcity of this resource in northern Chile where most of mining operations are located. According to the Ministry of Mines, if scheduled investments take place, companies will invest as much as U.S. $ 10 billion by 2022 to source sea water (desalinated and non-desalinated) for their operations. Currently, the Mining industry consumes approximately 12 m3/sec. According to figures compiled by the Ministry of Mines of this total, 1.2 m3 / s consists of desalinated water and 0.9 to 1.6 m3 / s of seawater, totaling an amount between 2.1 and 2, 8 m3 / s from ocean source. Looking towards 2022, if all projects materialize, mining will require an additional 10.4 to 10.9 m3 / s of desalinated water and 3.5 m3 / s of sea water (pumping up sea water to their operations, mostly high altitude in the Andes). In short, in ten years the mining industry we will raise its total water consumption by about 35%, totaling approximately 17 m3/sec. As outlined in the following table, 16 seawater initiatives totaling at least U.S. $ 10 billion in investment are in the pipeline. Region Plant name Company www Mine Stage of plant Flow desalinated water l/s Flow seawater pumping Estimated Cost US$ II Coloso BHP Biliton Escondida In operation 525 0 II Coloso II BHP Biliton Escondida Permit approved in 2009 3200 0 $3.5B III Abastecimiento de agua Mantoverde Anglo American Mantoverde In construction 120 0 $62M III Planta Desalinizadora Minera Candelería Freeport McMoRan Candelaría and Ojos del Salado In operation 500 0 II Planta Desalinización RT Sulfuros Codelco Radomiro Tomic Sulfuros Phase II In study (2017) 1630 0 $1.2B III Planta Desaladora Goldcorp El Morro Permit pending (2015) 640-740 0 $900M III Planta Desaladora Santo Domingo SCM Santo Domingo Proyecto Santo Domingo Feasibility study (2016) 260-290 400 I Planta Desaladora Quebrada Blanca Fase II Teck Quebrada Blanca Phase II Feasibility study (2017) 1300 0 III Planta Desaladora Proyecto Relincho Relincho Copper (Teck) Proyecto Relincho Feasibility study (2017) 700 0 II Planta Desaladora Michilla Antofagasta Minerals Michilla In operation 75 23 II Agua de mar Esperanza Antofagasta Minerals Esperanza In operation 50 780-1500 II Agua de Mar Cenizas Taltal SLM Las Cenizas Las Cenizas Taltal In operation 9,3 12 II Agua de Mar Mantos de la Luna Compañía Minera Tocopilla Mantos de la luna In operation 0 78 II Agua de Mar Sierra KGHMI Sierra Gorda In 63 1315

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Desalination Projects in Chiles Mining Industry

Transcript of Desalination Projects in Chiles Mining Industry

Page 1: Desalination Projects in Chiles Mining Industry

Business opportunities in relation to the use of sea water by the Mining Industry in Chile

Recent studies published by Chile’s Mining Council and the Ministry of Mines demonstrate that the cost of

sea water is U.S. $ 5.1 per cubic meter (m3), versus $ 1.6 / m3 for fresh water. Despite the higher cost,

miners are opting towards the use of sea water because of the scarcity of this resource in northern Chile

where most of mining operations are located. According to the Ministry of Mines, if scheduled investments

take place, companies will invest as much as U.S. $ 10 billion by 2022 to source sea water (desalinated

and non-desalinated) for their operations.

Currently, the Mining industry consumes approximately 12 m3/sec. According to figures compiled by the

Ministry of Mines of this total, 1.2 m3 / s consists of desalinated water and 0.9 to 1.6 m3 / s of seawater,

totaling an amount between 2.1 and 2, 8 m3 / s from ocean source. Looking towards 2022, if all projects

materialize, mining will require an additional 10.4 to 10.9 m3 / s of desalinated water and 3.5 m3 / s of sea

water (pumping up sea water to their operations, mostly high altitude in the Andes). In short, in ten years

the mining industry we will raise its total water consumption by about 35%, totaling approximately 17

m3/sec.

As outlined in the following table, 16 seawater initiatives totaling at least U.S. $ 10 billion in investment

are in the pipeline.

Region Plant name Company www

Mine Stage of plant

Flow desalinated water l/s

Flow seawater pumping

Estimated Cost US$

II Coloso BHP Biliton

Escondida In operation 525 0

II Coloso II BHP Biliton Escondida Permit approved in 2009

3200 0 $3.5B

III Abastecimiento de agua Mantoverde

Anglo American Mantoverde In construction

120 0 $62M

III Planta Desalinizadora Minera Candelería

Freeport McMoRan

Candelaría and Ojos del Salado

In operation 500 0

II Planta Desalinización RT Sulfuros

Codelco Radomiro Tomic Sulfuros Phase II

In study (2017)

1630 0 $1.2B

III Planta Desaladora Goldcorp El Morro Permit pending (2015)

640-740 0 $900M

III Planta Desaladora Santo Domingo

SCM Santo Domingo

Proyecto Santo Domingo

Feasibility study (2016)

260-290 400

I Planta Desaladora Quebrada Blanca Fase II

Teck Quebrada Blanca Phase II

Feasibility study (2017)

1300 0

III Planta Desaladora Proyecto Relincho

Relincho Copper (Teck)

Proyecto Relincho

Feasibility study (2017)

700 0

II Planta Desaladora Michilla

Antofagasta Minerals

Michilla In operation 75 23

II Agua de mar Esperanza

Antofagasta Minerals

Esperanza In operation 50 780-1500

II Agua de Mar Cenizas Taltal

SLM Las Cenizas Las Cenizas Taltal

In operation 9,3 12

II Agua de Mar Mantos de la Luna

Compañía Minera Tocopilla

Mantos de la luna

In operation 0 78

II Agua de Mar Sierra KGHMI Sierra Gorda In 63 1315

Page 2: Desalination Projects in Chiles Mining Industry

Gorda construction (2014)

II Agua de Mar Lomas Bayas III

Glencore-Xstrata Lomas Bayas III Pre feasibility (2017)

0 500

II Agua de Mar Encuentro Sulfuros

Antofagasta Minerals

Encuentro Sulfuros

Feasibility (2021)

No info No info

II Agua de Mar Antucoya

Antofagasta Minerals

Antucoya In construction (2014)

280 0

II Planta Desalinizadora El Abra Mill

Freeport McMoRan and Codelco

El Abra Mill (sulphurs)

Pre-feasibility (2017)

No info No info $4B

II Planta Desalinizadora para Mediana Minería

RyQ Ingeniería Mediana Minería

In study 1000 0

III Planta Desalinizadora for mining, farming and sanitary use

Aqualogy (Aguas Barcelona)

various Study reactivation

1000 0

III Planta Desaladora Cerro Negro Norte

Cerro Negro Norte CAP (Hierro) In construction

200-600 0 $360M

II Impulsión de agua de mar

Algorta Norte Algorta (iodine) Permitting in process

0 400 $30M

Total m3/s in operation

1,1593 0,893-1,613

Total m3/s projects in pipeline

10,393-10,923

2,615

Total m3/s 11,6-12,1 3,5-4,2

The El Abra Mill/Freeport McMoRan spearheads projected investments (US$4 billion) followed by the

Coloso II plant/BHP Billiton (US$ 3,5 billion). Coldelco, the State owned copper company, will inject

approximately US$ 1.2 billion in a desalination plant for its Radomiro Tomic operation, the El Morro gold

mine/Goldcorp future desalination plant is estimated at US$ 900 million.

The closest to start operation, according to their announced dates, are Mantoverde/Anglo American and

Cerro Negro/CAP.

Opportunities may arise for Canadian engineering companies and desalination experts for those plants

scheduled at a later date. Some of these projects could also by supported by Export Development

Canada.

For more information contact:

Margot Edwards

Trade Commissioner

Canadian Embassy in Chile

[email protected]