Los Bronces Development Project

The Los Bronces Development Project (LBDP) was approved in October 2007 by the Anglo American plc Board at a capital cost of some US$1.74B, and is scheduled to be completed by the end of 2010. The project represents a big step forward for the Los Bronces mine since it will increase the treatment rate by 140%, the mining rate by 64% and almost double copper production during the first four years of the project. This economy of scale will also position Los Bronces as a much bigger and efficient mining operation, better prepared to face adverse market scenarios and allowing Anglo to consolidate its position in base metals. The project addressed numerous scope alternatives such as plant capacity vs mine capacity, cut-off grade strategy to maximise value based on the existing flotation and leaching process, cutback strategy, etc. Main infrastructure aspects of the project are as follows: ?Dump area with 2400Mt capacity for waste and low grade material ?Mining equipment: 1 x electric shovel, 12 x 300t trucks, 1 x drill ?Primary crusher: 60? x 89? ?Three new power lines (144MW capacity) ?Grinding plant at 87kt/day nominal capacity (includes a 4.3km tunnel with a regenerative conveyor belt) ?Grinding plant: 1 SAG mill 40? x 25?, 2 ball mills ?Slurry pipeline (52 km from grinding to flotation plant) with five choke stations ?Flotation plant (rougher, cleaning, regrinding circuits and molybdenum flotation). The history of Los Bronces started in 1867 when it was discovered. In 1978 ENAMI (Government company) sold Los Bronces to Exxon for US$112M. The same year a snow avalanche destroyed San Francisco Flotation Plant. In 1979 the plant was rebuilt at 4.9kt/day and from 1979 to 2002 several plant expansions were made up to 54kt/day capacity. In 2002 Anglo acquired Los Bronces for US$1.3B. The 2002 resource and reserve statement showed reserves at 459Mt at 1.02%CuT and resources at 780Mt at 0.80%CuT. The 2007 statement shows reserves at 1,480Mt at 0.67%CuT and resources at 1,644Mt at 0.45%CuT. Defining the size of a plant expansion is the key challenge that any expansionary project faces. The scope of this paper is a general review of the project, describing all the mining techniques that were used to define the best options that maximise value. In this context, a range of plant capacities (from 58 to 230kt/day) combined with a range of mining capacities (from 83 to 166Mt/a) were evaluated in detail, defining for each option a mine plan, Capex and Opex, and cut-off grade strategy for flotation and leaching processes and the associated Net Present Value (NPV) that was used as the selection criteria. The Los Bronces mineral resources potential provides good growth opportunities for the mine beyond LBDP implementation, offering an exciting invitation to continue studying new initiatives that maximise the value of this deposit.