0% found this document useful (0 votes)
52 views13 pages

Peru's Copper Mining: Antapaccay Overview

1) The Tintaya mine is a deposit of copper, gold, silver, and molybdenum located in Peru that has been exploited since 1985. 2) The copper concentrate currently produced is transported by truck to the port of Matarani for export. 3) The mine has estimated reserves of 720 million tons of copper with a grade of 0.56% and a concentration plant with a capacity of 70,000 tons per day.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
52 views13 pages

Peru's Copper Mining: Antapaccay Overview

1) The Tintaya mine is a deposit of copper, gold, silver, and molybdenum located in Peru that has been exploited since 1985. 2) The copper concentrate currently produced is transported by truck to the port of Matarani for export. 3) The mine has estimated reserves of 720 million tons of copper with a grade of 0.56% and a concentration plant with a capacity of 70,000 tons per day.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

INTRODUCTION Peru is one of the richest nations existing today in terms of

copper resources are concerned. This red metal is and will be for many years, the main product
of Chilean exports and the largest copper mine producer in the world. Likewise
our country has the necessary infrastructure for the exploitation and export of these
resources. Especially if we consider that the contribution of mining to GDP is significant
significant. By virtue of the above, this research has among its objectives
provide relevant information regarding this product (such as equipment for
the process and description of the process) as well as information about the process and its
Improvements. The mineral concentrate is the product obtained after the extracted mineral.
from the mine goes through crushing, grinding, and flotation processes. Each mineral concentrate
it has different elements that compose it. It is characterized as the thick pulp obtained from
the flotation stage in the production process, where a mixture of sulfide is found
of copper, iron, and a series of salts from other metals. Its proportion depends on the
mineralogy of the mine.

GENERALITIES 1.1.-

Background The mining company Glencore Antapaccay is dedicated to production of


copper concentrate. Its mining site is located at 4,100 m above sea level, in the province of
Espinar, 250 km southwest of the city of Cusco and 260 km from the city of Arequipa. If
we do a bit of history, we will remember that in September 1971 the military government designated
to the state company Minero Perú the special rights for the exploitation of the deposits
from Tintaya, hiring HA Simons Internacional Ltd. to prepare the study of
Feasibility of exploiting the deposit. In accordance with the active state presence in the
mining investments, on May 2, 1980, the Associated State Mining Company was established,
according to the General Mining Law. Shortly after, by Legislative Decree
109 changed its legal status to that of Special Mining Company Tintaya S.A., starting its
operations in 1985. On November 29, 1994, as part of the reduction strategy
from the participation of public capitals, and according to the established privatization program
under the government of Alberto Fujimori, the American consortium Magma Copper was awarded
the winning bid for mining exploitation in an international auction by offering US $218 million in
effective, $55 million in Peruvian debt securities and a commitment to invest $85
millions in a period of 5 years. In January 1996, Broken Hill Proprietary Inc. (BHP) of
Australia acquired Magma Copper Company. This company is the largest in the industrial area.
and extraction of natural resources in Australia, has active mineral exploitation assets and
oil, and steel production, of more than 36 billion U.S. dollars, with
annual revenues calculated at US $22.32 billion, with a workforce of around 61
mil workers in more than 50 countries around the world. Finally, in the year 2001 it was consolidated.
strategic merger between BHP and Billiton. Both corporations share a vision for the future
similar, although BHP has copper, coal, and steel as its main elements, while
Billinton, for its part, has mines in aluminum and other metals. These two companies
they complement each other, having operations all over the world, which currently makes them
one of the world's most important mining corporations, with operations in
South America, Australia, United States, Canada, Europe, South Africa, and Indonesia. BHP Billiton is
a corporation dedicated to the exploitation of natural resources, based in Australia that,
as we saw, it operates in approximately 50 countries, grouped into four divisions:
minerals (copper, coal, iron, titanium, and diamond), steel, oil, and services. In Peru, the
the corporation is represented by the operation Grupo Glencore CM Antapaccay, which is dedicated
in the production and marketing of copper, both nationally and in the market
international. 13 The mining unit located at 4,100 m.a.s.l., in the province of Espinar, covers
in its area of direct influence to the communities of Tintaya Marquiri, Alto Huancané, Bajo
Huancané, Huano Huano, Alto Huarca, Huisa, Huarca, Huisa Ccollana and Anta Ccollana. Without
Only the first five are part of the dialogue table that was established in February.
from 2002. Glencore CM Antapaccay produces in its concentration plant near
300,000 tons of copper concentrate per year, with an average grade of 30% copper. This
Production is carried out from minerals with copper sulfides, especially chalcopyrite.
Then, the concentrate is transported to the port of Matarani, in Arequipa, for its
Marketing. On the other hand, the company executes complementary copper projects.
from Antapaccay and Coroccohuayco. The Antapaccay project is located ten kilometers southwest
from the current cut of Tintaya. Its background dates back to the mining exploitation period.
Atalaya, in 1971. This project contains copper sulfide mineralizations.
disseminated. Thus, currently, the evaluation of reserves is being conducted and to
feasibility study. An investment of US $230 million is estimated and a
production of 113,000 TMF / year copper. Part of the land for this project has been
purchased from the Alto Huarca community. Studies are also being carried out for the
Coroccohuayco project, located nine kilometers southeast of the main pit.
Tintaya. The company has also built a tailings dam in the area of
Huinipampa. The purpose of this tailings dam is to provide additional capacity for the
storage of tailings from Tintaya, which will allow BHP to extend the lifespan of the mine
of copper, for about eight years.

Location of the Tintaya Mining Company The mining company Glencore Tintaya - Antapaccay is
located at 4100 m.a.s.l. in the district of Yauri, province of Espinar in Cusco -
Peru; approximately 256 km southeast of the city of Cusco and 265 km northeast of the city of
Arequipa. Production at Tintaya was initiated by Magma Copper Company in 1985 and, in 1996,
Magma was acquired by BHP Billiton. Xstrata Corporation bought Tintaya from BHP in 2006.
for US$ 750 million. It is anticipated that the production cycle of the mine will continue until
approximately the year 2018.

Geology and Mineral Reserves The Tintaya mine is a Cu skarn deposit.


In Au, Ag, and Mo, the mineralization is located in the intrusive bodies as
dispersed and filling fractures and towards the contact with the sedimentary rocks (limestones) it
the skarn develops, the deposit is covered by alluvial material. The Porphyries
Copper deposits of Antapaccay (Cu-Au-Ag) are located within the Eocene-Oligocene strip of
Andahuaylas-Yauri (Perelló 2003, Carloto 2006), where the deposits are also located.
Tintaya Skarn (CuAu-Ag-Mo) and Calcic Skarn copper deposits of Ferrobamba (CuAu-
Ag-Mo), Chalcobamba (Cu-Au-Ag), Quechuas (Cu-Au), Chancas (CuAu-Ag-Mo), Trapiche (Cu-
Au), Haquira (Cu); all these porphyries are calcoalcaline (Sáez 1996) and Magnetta series
with copper and/or molybdenum mineralization, silver and gold. Within this strip, there is a
Cretaceous basin that spans from the early Cretaceous to the late middle Cretaceous (Carloto 2006),
understands the Soraya formation (coarse to fine sandstones), overlying setene to the
Mara formation (limestones and/or calcareous luttas) and overlying the Ferrobamba formation
(Dark limestones with few calcareous siltstones); 42 this basin is affected by tectonics
Peruvian (Upper Cretaceous) and Inca Tectonics I (Eocene) where it is accompanied by a
basic intrusion (fine to coarse grained Diorites) which forms iron (Fe) deposits,
posterior to the Inca Tectonics II (Mochica) with intermediate intrusions (Monzonites,
Granodiorites and Monolithic Porphyrites) (Perelló 2003) with deposits of Skarn and Porphyries (Cu-
Au-Ag-Mo). Overlying Miocene lacustrine deposits (Yauri Formation).

- Characterization of the products. The mineral concentrate is the product obtained after
the mineral extracted from the mine goes through processes of crushing, grinding, and flotation. Each
concentrate of mineral with different elements that compose it. It is characterized as the
thick pulp obtained from the flotation stage in the production process, in which
find a mixture of copper sulfide, iron, and a series of salts of other metals. Its
the proportion depends on the mineralogy of the mine.

1.7.- Capacity of the Tintaya Antapaccay Concentrator Plant, which has a useful life of
More than 20 years, will benefit from the current administrative and logistical infrastructure of Tintaya.
as well as from the experience of its personnel. At Antapaccay, a deposit will be exploited.
skarn-porphyry and will produce a copper concentrate that will be transported by trucks to
Matarani port. The reserves are estimated at 720 million tons of copper with a
law of 0.56%. The activities related to the start-up of the plant continue.
while Antapaccay gradually increases production to reach a capacity of
nominal processing of 70,000 tons per day in the first half of 2013.

The procedure followed in the development of this technical report, by chapters, is the
next:
Chapter One: A description of the mining company is presented, which is a company
miner

of copper.

Chapter Two: Primary Crushing.

Chapter Three: Secondary and Tertiary Crushing.

Chapter Four: Grinding and classification of minerals.

Chapter Five: Copper Flotation.

Chapter Six: Thickeners for Tailings and Concentrate.

Chapter Seven: Here is presented an improvement made at the Tintaya mining company -

Antapaccay in area 510 of water and tailings to reduce mechanical maintenance costs
y

operation.

MENTALITY

VISION
To be a mining company of recognized reputation, a leader in safety with operational excellence.

MISSION
Develop a mining production that is safe, socially and environmentally responsible, through talent and
leadership of our team, providing value for our stakeholders and growth for the country.

ENVIRONMENT
some actions and commitments undertaken by the head of the Mining Unit are presented
Antapaccay aims to mitigate the impacts on air, water, soil, noise, and vibrations in the area.
where the expansions of the project will take place

some actions and commitments that the head will implement to mitigate the
impacts on the flora and fauna of the project's area of influence

MISSION

At Antapaccay, our mission is to promote and guide safety and health management with a
preventive and sustained approach, committed to maintaining work environments
"healthy and safe," pointed out the Occupational Health and Safety Manager of Antapaccay,
Andrés Miranda, while expressing his joy for the recent award received in the field
in mining safety, which places this operation at the highest ranking of companies that
they operate in this field.

Occupational Health Manual

In the framework of the XVIII International Mining Security Seminar, the XVII Competition was held.
National Security, the same one led by the Institute of Mining Security of Peru (ISEM)
in which mining companies that have recorded the lowest rate are awarded
accident rates during the year 2013 in the categories: Open Pit Mining, Mining
Underground, Refineries and Smelters.

In this competition, Antapaccay Mining Company won first place in the Category
Open Pit Mining, as a result of the optimal performance in Safety and Health recorded
during the past year.

Antapaccay receives an award for safety

We have been applying a management system with increasingly ambitious goals for over a decade.
demanding and proof of this is that we have achieved several certifications, all with notable
results. But the main achievement lies in the involvement and commitment of the
workers for doing things effectively and safely," emphasized Miranda.

Antapaccay concentrate producer

The security management system at Antapaccay has been enhanced with contributions from
various tools, seeking to meet high standards of sustainable development. Among them
they are NOSA (winning the grand prize like the NOSCAR), DUPONT (implementing
various world-class tools) and the requirements demanded by the standards
international OHSAS18001 and ISO14001.

Although the implemented system aims for the highest international standards, for
above the national legislative requirements, the company leaders continue to raise
goals to be achieved in the immediate future. Mainly to reduce accident rates
more than 10% each year.

Key aspects in the company

The aspects that have allowed us to achieve the planned results are:

Develop leaders by consolidating a culture of safety and health through:


Development of the leadership program in safety and health.

• Implement the behavior-based security program: I Ensure, improvement


from preventive management through the reporting of observations.

Develop competencies in safety and health for all staff:

Implementation of a training plan in health and safety by job profile.

Accreditation of personnel performing high-risk activities.

Ensure risk control in all activities:

Implementation of SAFEWORK (Glencore corporation initiative to reduce and/or


eliminate the fatalities).

Audit of the effectiveness of controls.

Enhance the AST (Work Safety Analysis).

Antapaccay and work without injuries

Health prevention

Antapaccay and safe work


The preventive approach developed by the mining company has allowed for the promotion of methods of
awareness in the workforce about the risks they face daily. That is to say, it is given
great importance in avoiding diseases caused by exposure to noise, metals and
powder, as well as preventing obesity, hypertension, influenza epidemics, among others. This
It also involves the psychological evaluation of each worker to prevent fatigue and stress.
work caused by the time away from home and family.

Each worker has an initial diagnosis, occupational controls, and specific examinations.
depending on your activity.

Responsibility and leadership

Managers participate in inspections, area committees, and the monthly joint committee.
which allows for visible leadership to be demonstrated in the organization. Everyone is involved in the
monitoring, implementation, and improvement of the current management system. The support for any
The initiative from the security area is unanimous, starting from general management.

The contracting companies are also aligned with the goals of the system.
management, working on the orientation and support to help them certify in both
quality as per national labor standards
DESCRIPTION
Antapaccay is a copper mining operation belonging to the Glencore Group.
since 2013. We were born as an operation in November 2012, after several years of
investment in exploration with the purpose of extending the life of the Tintaya mine.

The mining settlement is located in the province of Espinar, region


Cusco, at 4,100 meters above sea level.
This operation allows us to continue contributing to sustainable development.
province of Espinar, as well as promoting the creation of sources of work
direct and indirect and boost the economy of the area by purchasing from companies
locally, we also invest in social projects aimed at the communities of
our area of influence.
LABOR
a) WORK TEAM:
In order to comply with what is established in the contract and to begin the
In jobs, competent personnel must be present in each of the positions.
sufficiently qualified and accredited by prestigious institutions for each
guardians, if necessary they must have licenses, authorizations or
valid authorizations by the Peruvian authorities, which must be held:

1 Operations Engineers

1 Security Engineers

19 Operators

7 Watchmen.

3 Mechanics.

If the needs are not met by the guard, the agreement to start will not be granted.
operations every day.

MACHINES
3: MATERIALS
Antapaccay has resources that exceed 1.000 million tons of copper with
a rate of 0.49% and an estimated lifespan of two decades, during which it will be able to
continue contributing to Espinar, through royalties, taxes, and other contributions that are
they will reflect more growth and development for Espinar and Cusco.

4: ENVIRONMENT
5: MINDSET
A) MISSION:
Develop a safe, socially and environmentally responsible mining production.
through the talent and leadership of our team, bringing value to our
stakeholders and growth for the country.

B) VISION:
To be a mining company of recognized reputation, a leader in safety with excellence
operational.

We are a Glencore company and we base our actions on our


corporate values:

Entrepreneurial spirit: Our approach promotes the highest level of professionalism.


personal responsibility and entrepreneurial spirit in all our employees without putting
never put the safety and well-being of our people at risk.

Simplicity: We aim to achieve our key objectives as a path to


achieve the best returns in the sector, always focusing on excellence,
quality, sustainability, and continuous improvement in everything we do.

Safety: Our top priority in the workplace is to protect health and the
well-being of all our workers. We adopt a proactive approach regarding
of health and safety; our goal is continuous improvement in prevention of
work-related injuries and illnesses.

Responsibility: We are aware that our work can have an impact.


in our society and in the environment. We care deeply about
our performance in terms of compliance, environmental protection, rights
humans and health and safety.

Transparency: We value relationships and communication based on integrity,


cooperation, transparency, and mutual benefit, with our people, our
clients, suppliers, governments, and society in general.

6: CURRENCY
We started copper production operations in November 2012, with a
an investment of USD 1.5 billion and marking a milestone in national mining by using a
standard concentrator and achieve a successful start.

LABOR COST AND OTHERS

Classification of costs

Costs are classified according to various approaches: [Link] According to their function a.
Production costs.- They are direct raw materials, direct labor, and the costs
indirect manufacturing costs. b. Selling expenses - All those outlays that the company
it happens in the sales process of finished products and taken to the points of sale
c. Administrative expenses.- These are the disbursements made by the company to carry out the
internal administrative management of the company

According to their behavior a. Fixed costs.- Expenditures incurred in the productive area
that are carried out on a permanent basis regardless of productive activity, such as
for example the maintenance cost of the factory, factory rent, permanent salaries,
etc. b. Variable costs.- These are the disbursements incurred in the factory that are related to
strictly with the production process such as the consumption of the material
first, the energy consumption, the depreciation of the machinery that is in operation.
[Link] According to the identification of the service lines a. Direct costs.- They are the
disbursements identified with the production line or products being manufactured,
for example, the fabric consumption in the making of a garment. b. Indirect costs.-
They are the resources invested by the company in the production of goods.
to be assigned to each of the production lines.

importance of the cost system by service orders The batch cost system is
important because we can understand the needs of our potential customers, since
according to your needs we can produce the products according to your
nature. Objective Its main objective is the control of operational efficiency, for which
this cost system is optimal for administrative purposes of planning and control
the costs. 2.2.3 General characteristics of the service order cost system If
use when production is on demand. It can be adopted when it can be identified.
clearly each job throughout the entire process, from the moment the order is issued
production until the manufacturing process is completed. Demand tends to anticipate
offer. Emphasize the accumulation of actual costs by service order. Manufacturing
it is planned to provide customers with a certain number of units, or to a
agreed sale price. The recipient of the goods or services is known before
start production. The costing unit is the production batch. Each job
represents different manufacturing specifications. (Time period for manufacturing,
production journey, machinery to be used, etc.) The cost of labor is a basis for
make a comparison with the selling price and serves as a reference for the future
price quotations for similar jobs

Accumulation and calculation of costs in the service order costing system


companies carry out their costs by batches, controlling their production operations for a
specific or defined quantity of finished items. These orders are intended to supply
again the warehouse or to attend to an order placed by a customer. For the costing of the
service order, a master summary sheet known as a cost sheet is used
specific service order. This sheet has three sections that represent the three elements
of the cost: direct raw material, direct labor, and indirect manufacturing costs, such
how they have been designed in the cost sheets

Direct labor costs Direct labor refers to the workers who operate
directly in the main teams that generate annual income per job position, it
which can also be summarized in the following formula: Annual fixed cost of labor
direct by job position (referential). Total monthly remuneration of each
worker by job position Number of Workers required per position
work. Number of working months per year. ∆: Sign indicating that the result must be
rounded to hundredths. Exemplifying the formula in item 1 of the following table gives as
resultado = (∆ ( × 147.12242%) ) = (∆ (2,075.00 x 147.12242%) 15) 9 = S/.
412,126.65 Note: will be multiplied by 147.12% since each individual salary is
affected by employer contributions and other legal social benefits not that
indicates that each bill increases by 47.12%

[Link].4 Indirect costs [Link].4.1 Auxiliary equipment The cost of auxiliary equipment constitutes
indirect costs of the service, since it is these teams that, despite not being references in
the generation of direct economic income provides the essential logistical support for the
generation of earth movement services to Antapaccay. The unit of measurement for the
The rental cost of auxiliary equipment is not per hour of the machine but per day of the machine, reason for
for TM Opermin S.A. these daily rental costs become fixed, likewise we know
that the working period is from April to December, period
I have a total of 275 days, so the auxiliary team will be available during these.
275 days. The result is the annual cost portpo of auxiliary equipment, which is also summarized in the
next formula:
=( )

Annual fixed cost of auxiliary equipment. D: Number of calendar days in the interval of
work. Cost of rental per day for the machine that the landlord will charge. Quantity of
machines of the same class. Exemplifying the formula in item 1 of the following table it
obtain =( ) (275 x 160) 2 = S/.88,000.00
Implementation – personal protective equipment (PPE) TM Opermin S.A. during the exercise
In 2018, it provided all its workers with personal protective equipment based on criteria of
duration as: calendar days and effective working days; criteria established by the
HSE Security Supervisor based on your IPERC matrix and described in the PETs. According to
not all production workers will use the same protective equipment
personal, so it is determined from the details provided that they use the same PPEs: all
main and auxiliary equipment operators, all the watchers, the CMB dispatchers, the
Mechanic and his assistants, and finally all engineers use the same PPEs. The cost of
the PPEs result from a simple product between the quantity purchased during 2018 with its
unit price per PPE, however, the most interesting aspect of this section is to analyze the turnover
of the PPEs based on the useful life calendar or effective service days, which are verified from
the following way:. Calculation of rotation of renewed PPEs based on calendar days:
It results from rounding up to the nearest whole number if there is a fraction in the ratio of the effective days.
operations within the work interval with the useful life of PPE, and finally such entire
multiplied by the number of workers who use such PPE.. Calculation of PPE rotation
renewed based on effective days of use or service Results from rounding up to the next whole number if
There will be a fraction in the ratio between the unit with the useful life of each PPE multiplied by 87.
number of accumulated days of effective labor of the workers who use them
EPPs. According to the roster provided by the residential area, we have the following days
accumulated. 4215 days were accumulated by the operators of the main machinery. 920 days
the operators of the auxiliary machinery accumulated. Workers accumulated 1830 days
of the floor. Engineers accumulated 740 days. 1645 days accumulated the
administrative personnel. A total of 9350 days accumulated by all TM workers
Opermin S.A.

You might also like