el pachón greenfield project8efe984c-a793-4cae-86f3...– mini pit bulk ore sample collected for...
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El Pachón Greenfield Project
Xavier Ochoa, El Pachón General Manager 18 September 2011
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Project is 100% Xstrata Copper Argentinean company holds free-title mineral, land and water rights
required for project in Argentina Chilean company holds land and easement rights for development of
concentrate handling facilities in Chile
El Pachón Project
Ore body located fully in Argentina, San Juan province, 5km from Chilean border − Mining-friendly province − Only current road
access from Argentina via a 160km gravel road
− 1 hour helicopter flight from Santiago, Chile
− Short distance downhill to Chilean coastline and nearby ports
El Pachón Project
Bi-national setting – Bi-national Integration Treaty is
Applicable – Access to Chilean infrastructure
for concentrate exports – Dual stakeholder populations
Uninhabited site location – Nearest populations:
o In Chile 45km o In Argentina 160km
El Pachón Community Relations
Community and Social Involvement programs active since 2006 – Calingasta Valley in Argentina – Choapa Province in Chile
Very good rapport with communities – Conducting Townhall meetings in all localities since 2007 – No present day community opposition to project development – Working openly in joint state-private partnerships with community
involvement – Focus on education, health and local productive activities
Strong local, regional / provincial government support
Mining Industry recognition– Argentina Mining 2010 RSE Award
El Pachón Project: Summer field drill programs
description
Site
Fully equipped state-of-art camp facilities designed to support drilling operations El Pachón
Description Mineral Resource: 1.790Bt @ 0.51% Cu
(Dec 10) Largest ever on-property exploration
drilling campaign during summer of 2010/11 – 58,914 metres
Resource sampling density increased significantly
Target of +85% measured and indicated resource categorization in 5-yr pit
Resource open at depth
El Pachón Mineral Resource
Copper in resource
El Pachón drill collar locations Core logging – Barreal facilities El Pachón Resource categories
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2008 2009 2010
Measured Indicated Inferred
Mt Cu
ESIA Process - two separate but correlated impact assessments: – Argentina (Mine, Plant, Infrastructure) – Chile (Concentrate transportation, filter plant & shipping)
Supported by key specialist consultants for acid rock drainage, snow & crioforms
Baselines completed
ESIA development underway integrated with Feasibility Study
Process: Environmental and Social Impact Assessment
Local community water sampling Automated river gauging station
Feasibility Study conducted with Bechtel – 5th Feasibility Study under the Xstrata -
Bechtel Strategic Alliance Study advancing as per plan
– Standard Concentrator applied – Key project elements designed – Thickened tailings disposal development – Infrastructure design - tradeoffs underway
for offsite infrastructure o Power supply o Chile inland concentrate shipping o Seaport
Metallurgical development nearly complete
– Flotation pilot plant confirmatory results obtained at G&T Labs in Canada
– Mini pit bulk ore sample collected for grinding pilot tests – now underway at CIM Labs in Chile
El Pachón Feasibility Study status
Bulk Sampling Mini Open Pit
El Pachón Project particulars
Mine and Concentrator in separate valleys linked by tunnels Thickened tailings disposal solution Concentrates will be exported via Chile to a commercial Pacific Coast port
Standard Concentrator: 2 grinding lines 160ktpd throughput Production:
– 400ktpa Cu for first five full years – average over LOM 280ktpa Cu – Resource supports 30-yr operation
El Pachón Project particulars
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2015 2016 2017 2018 2019 2020
Indicative El Pachón production to 2020 Standard concentrator design
Kt Cu in concentrate
El Pachón Project synergies
Project will be the third Standard Concentrator application and benefit from the replication of Antapaccay and Las Bambas concentrators
– Engineering – Procurement – Execution – Commissioning
Retention of Project Teams – XCu & Bechtel Engineering and Procurement Teams to move across in
2012 from Las Bambas project to El Pachón to advance engineering – Potential for Execution Teams at Antapaccay, following project
commissioning in 2012, to move across as well to El Pachón
Operational Expertise – Operational expertise in Peru & Argentina (MAA) available to leverage
Pachón workforce, advance training and provide leadership
Project will utilise mostly Argentine construction labour skills – Not competing with the large number of large-scale Chilean projects – Will benefit from labour development in other in-country projects
Conclusions
World class and large scale new project that will benefit from synergies with Antapaccay and Las Bambas and in-country (MAA) operational expertise
The final feasibility study will be complete in early 2012
Additional exploration drilling during summer of 2011-2012 will improve certainty of Mineral Resource
The ESIA process will be complete in early 2012 with EIA documents ready to be lodged in Argentina and Chile in H1 2012
Project engineering will start in 2012 with Las Bambas Team
Subject to approvals: – 34 month construction program – Could start commercial concentrate production in 2016
Questions?
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Agenda Introduction Copper market update Xstrata Copper overview South American Operations Project Development South America Antamina and Collahuasi expansions
Antapaccay Project Las Bambas Project El Pachón Project Agua Rica Project Conclusions
Coffee break