15th World Copper Conference 2016
Sustainability of Chilean Copper Smelters
Iván CerdaTechnical Manager
Chilean Mining Association
Santiago, April 6, 2016
Agenda
1
2
3
4
5
Characterization of Chilean Copper Smelters
The Environmental Issue. The New Emissions Standard
Facing the Environmental Challenge
Competitiviness and Strategic Issues for Sustainability
in the Long Term
Final Comments
Copper Production in Chile
Concentration
Plants
Chilean
Smelters
Foreign
SmeltersTotal
Copper Production (ktpy) 1.800 1.400 2.600 5.800
Distribution 31 % 24 % 45 % 100 %
Sulfide
Ores
Concentrates
LX-SX-EW
Plants
Oxides
Ores
Chile is the leader of the
copper production in the
world, and also has the
largest reserves. Of the total
production, 24% is obtained
as cathodes processing
concentrated in domestic
smelters.
Production and Processing Concentrate
Chilean Smelters (ktpy)
0
2.000
4.000
6.000
8.000
10.000
12.000
14.000
16.000
18.000
Concentrate Production Concentrate Processing
60 %
40 %
The total production of
concentrates is about 16,000
ktpy. Of this amount,
approximately 60% is exported,
mainly to Asian smelters.
Copper Smelters in Chile
Zone Smelter Owner Products
North
1.- Chuquicamata Codelco Blister, Anodes, Cathodes
2.- Altonorte Glencore Anodes
Atacama
3.- Potrerillos Codelco Blister, Anodes, Cathodes
4.- Hernán Videla Lira Enami Anodes
Center South
5.- Chagres Anglo American Anodes
6.- Ventanas Codelco Blister, Anodes, Cathodes
7.- Caletones Codelco Blister, Anodes
State Smelters Private Smelters
0
200
400
600
800
1.000
1.200
1.400
1.600
1.800
Chuquicamata Caletones Altonorte Potrerillos Chagres Ventanas Hernán Videla
Lira
ktpy concentrate ktpy copper
Smelters Capacity and Copper Production
(kpty)
Nominal capacity in chilean smelters are in the range 1,600 - 350
ktpy of concentrate, to produce between 500 and 150 ktpy of
copper.
Smelter Smelting Converting Fire Refining Slag Cleaning
Chuquicamata CT & HF CPS HA HLE & FLOT
Altonorte CN CPS HA FLOT
Potrerillos CT CPS HA FLOT
Hernán Videla Lira CT CPS HA HELE
Chagres HF CPS HA HLE & FLOT
Ventanas CT CPS HA HELE
Caletones CT CPS HA HLE
� Smelting: Most of smelters use Teniente Converter (CT). Noranda Converter (CN)
and Outokumpu Flash Furnace (HF) are used too.
� Converting: Generalized use of Peirce Smith Converter (CPS).
� Fire Refining: Anode Furnace (HA)
� Slag Cleaning: Slag Cleaning Furnace (HLE), Electric Slag Cleaning Furnace (HELE)
and Flotation (FLOT)
Technologies in Chilean Smelters
Technologies in Chilean Smelters
In recent decades investment in technological
modernization of Chilean smelters has been poor.
Mining investments have been focused on mining
operations and mineral processing to enhance or
maintain overall production.
The lack of modernization in smelters and
refineries, has led these operations face the
following problems:
� Low environmental performance
� Loss of competitiveness
The Environmental Issue
The environmental issue is a major concern of mining companies
operating in Chile. In 1991, before the enactment of the
Environmental Law, the Ministry of Mining created an
Environmental Unit, and the mining sector pioneered enter their
projects to the System of Environmental Impact Assessment,
before it was mandatory.
To prevent air pollution, in 1991 quality standards regarding
SO2, particulate matter and arsenic were established, resulting
in most areas around smelters exceeded the standards. For this
reason "saturated areas" were declared, prompting the
development of Decontamination Plans to reduce emissions
for each pollutant and each source.
The Environmental Issue
However, a report by the Organization for Economic
Cooperation and Development (OECD, 2005) noted that
"smelting activities are still causing the bulk of emissions,"
recommending "advance the development of rules of national
emission , including the regulation air pollutants to reduce the
impact of SO2 and As."
In this context, after several years of study, in 2013 the Decree
N° 28 of the Ministry of Environment, established the
"Emission Standard for Copper Smelters and Arsenic Emitting
Sources".
What Emission Standard Says?
In the main, for existing smelters sets:
Overall annual emission limits (SO2 and As), and
emission limits in stack (SO2, As, PM) for different
unit processes.
Simultaneously, compliance minimum percentage
capture of sulfur and arsenic of 95%.
Compliance deadlines:
� 5 years if the smelter does not have an acid
double contact acid plant
� 3 years if the smelter has at least one double
contact acid plant.
0 50.000 100.000 150.000
7.- Caletones
6.- Ventanas
5.- Chagres
4.- Hernán Videla Lira
3.- Potrerillos
2.- Altonorte
1.- Chuquicamata
Average Emissions 2007-2011 Standard Decree 28
SO2 Emissions Decree 28 (tpy)
As Emissions Decree28 (tpy)
0 200 400 600 800 1000
7.- Caletones
6.- Ventanas
5.- Chagres
4.- Hernán Videla Lira
3.- Potrerillos
2.- Altonorte
1.- Chuquicamata
Average Emissions 2007-2011 Standard Decree 28
Facing the Environmental Challenge
Emission standard generated the need to change
technologies and / or improve existing facilities to
increase the capture of pollutants.
Considering the sizes and technologies in use in
smelters, as well as the current environmental
performance compared with the new standard,
investment requirement, etc., smelters identified
the following solutions:
� Technological changes, and/or
� Facilities Improvement
Technological Changes
Facing the Environmental Challenge
The most relevant technological change corresponds to Hernan
Videla Lira Smelter project in smelting and converting
operations, from the current CT-CPS configuration to BBR-
Hoboken configuration.
Other examples are:
� Replacement rotary dryer by indirect steam drying
(Chuquicamata)
� Replacement cleaning furnaces slag by concentration of slag
by flotation (Chuquicamata, Potrerillos, Caletones, HVL)
Facilities Improvement
Facing the Environmental Challenge
� Modification in acid plants to double contact system
(Chuquicamata, Potrerillos, HVL) and/or adding tail gas
treatment (Caletones, Ventanas).
� Modification / repair hoods gas in smelting and converting
furnaces.
� Improving uptake fugitive gas sectors bleeding matte and
and slag.
� Construction / repair gas cleaning systems (electrostatic
precipitators or wet treatment)
Competitiviness and Strategic Issues for
Sustainability in the Long Term
The total investment involved to reach the
Decree 28 standard is around US$ 2.500
million, most for state smelters.
Improve the environmental performance off
Chilean smelters, has opened the debate on
the scope and focus should be the investment
in smelters and refineries.
It is convenient and enough invest to capture
up to 95% of emissions?
Competitiviness and Strategic Issues for
Sustainability in the Long Term
Regarding the current situation, reaching a 95% capture is an
important step. However, this goal is modest compared to the
best industry standards. Furthermore, is likely that with the
revision of the emission standard, the demand of capture will
increase at least to 98%.
Is better to postpone the entry into force of Decree 28 to
enable larger technological changes with a minimum capture
target of 98%.?
Is the environmental issue the only or main focus for
investment in smelters?
Other Reasons for Investing in Smelters
The general opinion is that the environmental
issue is only one aspect that motivates improve
smelters. It is very important, but it is not the
only one.
Investment in smelters also justified by:
� Changing in the production matrix and
market share of concentrates.
� Low cost competitiveness and operational
efficiency.
� Having smelting capacity to process complex
concentrates (high content of impurities).
AñoProd. Cu Total Prod. Cu en Conc. Exportación
(kpta) (kpta) (% del Total)
2014 5.800 2.600 45%
2026 6.800 4.400 65%
The matrix of copper production in Chile is headed
for a decline in mineral oxides (LX-SX-EW), and an
increase in concentrates for smelters feed.
If the smelting capacity remains constant, at 2026
copper concentrate exported will increase
significantly.
Changing in the production matrix
and market share of concentrates.
Improve Cost Competitiveness
The high costs are the result of the
technologies used and the small scale of
most operations. Also they are influenced
by some local conditions such as the cost of
energy and the cost of labor.
On average, smelters and refineries in
Chile operate with high costs and low
income, i.e. with negative margin.
State smelters are in the fourth quartile of
the industry in terms of operating costs.
Processing Complex Concentrates
Domestic copper concentrates in the north have
high levels of arsenic, which hinders
commercialization:
� Increasing restriction to shipping of
concentrates, with a consequent increase in
transport costs and reducing marketing
alternatives.
�Restrictions buyers’ smelters through higher
charges TC / RC. For example, China imposed
restrictions on the import and processing of
concentrates with arsenic content greater than
0.5%.
Final Comments
The lack of modernization of domestic smelters
and refineries, has led these operations to a
difficult situation, both environmental and
competitiveness. Mining investments have
focused on the extraction and ores processing,
that provide greater value to the business.
To comply with the new regulations, the
smelters are investing some technology
changes, but mainly facilities improvement.
With this, the environmental issue will partialy
improve, but will not mean relevant impact in
terms of competitiveness.
Final Comments
There are strategic reasons to improve
operational standard in smelters and refineries
operating in Chile, mainly the state owner,
investing to make a significant leap in smelting
and converting technology, maximizing recovery
of products and by-products, and developing
projects with possible synergies.
Otherwise, Chile could lose prominence on the
world market copper concentrates, despite
being the largest producer of mined copper and
have the largest reserves.
Thank you for your attention...
15th World Copper Conference 2016
Sustainability of Chilean Copper Smelters