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Spence Minera PDF
Spence Minera PDF
Spence Minera PDF
Project to Operations
Analyst Visit
19 March 2007
Disclaimer
The views expressed here contain information derived from publicly available sources that
have not been independently verified.
No representation or warranty is made as to the accuracy, completeness or reliability of the
information. Any forward looking information in this presentation has been prepared on the
basis of a number of assumptions which may prove to be incorrect. This presentation
should not be relied upon as a recommendation or forecast by BHP Billiton.
Nothing in this release should be construed as either an offer to sell or a solicitation of an
offer to buy or sell shares in any jurisdiction.
Page 2 of 50
Spence
Agenda
Page 3 of 50
Spence
Agenda
Page 4 of 50
Spence
Vision & Mission
Vision:
To be an outstanding and simple BHP
Billiton operation.
Mission:
• To have a working team engaged,
motivated, innovative, passionate for
ZERO HARM and aligned with the
Charter of BHP Billiton.
• To produce high quality copper
cathodes for the world market,
generating high profitability for our
shareholders.
• To have production processes that are
efficient, reliable and predictable.
• To contribute to the sustainable
development of our Community.
Page 5 of 50
Spence
Agenda
Page 6 of 50
Spence
Safety Performance
MINERA SPENCE STATISTICS HSEC
MH 1 TO 28 FEBRUARY 2007 ACCUMULATIVE MH
345.304 24.905.776
1 TO 28 FEBRUARY 2007 APRIL 2003 TO 31 FEBRUARY 2007
Page 7 of 50
Spence
Recognitions for HSEC
• Caterpillar International
• 5 Star Certification of Truck Shop
• 2nd Mining Company in the world to
receive this
Page 8 of 50
Spence
Recognitions for HSEC (continued)
Page 9 of 50
Spence
Environment
Page 10 of 50
Spence
Community
Page 11 of 50
Spence
Agenda
Page 12 of 50
Spence
Location
Page 13 of 50
Spence
History – Discovery to Production
• 1996: Deposit discovered by Rio Algom exploration
• 1996 – 2002: Exploration & Development Work:
– 174,970 meters of exploration & development drilling completed in total.
– 1,133 meters of underground tunnel development for bulk sampling
• 2000: Billiton purchases Rio Algom Ltd
• 2001: BHP and Billiton merge to form BHP Billiton
• 1999 - 2002: Various Project studies completed (Concept,
Pre-feasibility & Feasibility)
• 2004: Definitive Project Feasibility Study completed
Project Approved for Execution (October 2004)
• 2005 – 2006: Project Construction & Mine Development
• 2006: First Copper Production
Page 14 of 50
Spence
Agenda
Page 15 of 50
Spence
Geology
• Supergene enriched & partially oxidized porphyry copper LIX
OXI
SUCC
SUCV
STCP
HYP
West East
50m
Page 16 of 50
Spence
Ore Reserves – June 2006
Copper Grade
Million % Total % Soluble
Material Type Reserve Category
Tonnes Copper Copper
Proven 33.4 1.47% 0.94%
Oxide Ore Probable 41.4 1.05% 0.66%
Proven + Probable 74.8 1.24% 0.79%
Proven 110.4 1.31% na
Sulphide Ore Probable 127.9 0.78% na
Proven + Probable 238.3 1.03% na
Total Ore Proven + Probable 313.1 1.08% na
Sulphide Oxide
The Spence Ore Reserves is based on information compiled by Mr. Ernesto Rios, who is a Member of The Australasian Institute of Mining and
Metallurgy. Mr. Rios is employed by Minera Spence S.A. He has sufficient experience with the estimation, assessment, evaluation and economic
extraction of large-scale copper mining operations and projects. This experience is relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking, and as such he qualifies as a Competent Person as defined in the 1999 Edition of the
‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’.
Page 17 of 50
Spence
Agenda
Page 18 of 50
Spence
View Looking Southwest (2004)
Sierra Gorda
Project Area
Page 19 of 50
Spence
Project Description
Page 20 of 50
Spence
Project Drivers
Page 21 of 50
Spence
Project Investment
• Approved Capital investment of US$ 990 million
• Ongoing Sustaining Capex circa $20m per annum
• Internally Funded
Page 22 of 50
Spence
Construction
Page 24 of 50
Spence
Final Site Layout
North
Page 25 of 50
Spence
Management Structure
Project
Spence Project
Manager
A. Pangbourne
Projects Services
Manager
J. Haer
Page 26 of 50
Spence
Agenda
Page 27 of 50
Spence
Mine Development
Plan
6,000
Real Cumulative
60.0
5,000
50.0
4,000
40.0
3,000
30.0
2,000
20.0
1,000 10.0
- -
May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06
Page 28 of 50
Spence
Mine Operations Equipment
Loading Equipment:
– 3 Shovels 65Yd3 (P&H 4100 XPB)
– 2 FELs 23Yd3 (CAT 994D)
Hauling Equipment:
– 25 Haul Trucks 240 Ton (CAT 793 C)
Drilling Equipment:
– 3 Pit Viper Drills
Auxiliary Equipment:
– 5 Track-dozers CAT D10T
– 2 Wheel-dozers CAT 834 G
– 3 Graders CAT 16H
– 3 Water Trucks CAT 777E
Page 29 of 50
Spence
Mine Development - Current
Mine Phase 1
Mine Phase 2
Page 30 of 50
Spence
Mine Development – Long-term
2007
2011
2016
2022
Page 31 of 50
Spence
Agenda
Page 32 of 50
Spence
Process Operations
• Ore crushed, agglomerated, and transferred to leach pads at a rate of
50,000 tonnes/day.
Page 34 of 50
Spence
Process Flow Diagram
Open Pit
Primary
Crusher
Fines Crusher
S ilo
Mineral
Fino
Dump Leaching
Agglomeration DPLS
Sulphide Circuit
Oxide Circuit
E1 E2 EP1 EP2 S W
Raff
Silo
ilo
Mineral
Fino
Raff
Raff
Loaded
Organic EW (3 Circuits)
Page 35 of 50
Spence
Copper Production
2,000 12,000
10,000
1,500
8,000
1,000 6,000
4,000
500
2,000
- -
4-Dec 11-Dec 19-Dec 26-Dec 1-Jan 8-Jan 15-Jan 22-Jan 29-Jan
Page 36 of 50
Spence
Production Ramp-Up (Annualized)
200,000
180,000
160,000
140,000
120,000
100,000
Jun-07 Dec-07 Jun-08
Antofagasta Port
(Alternative Port)
Page 38 of 50
Spence
Copper Sales Destination
Taiw an
1%
Italy
24%
China
45%
Germany
25% France
5%
Page 39 of 50
Spence
Agenda
Page 40 of 50
Spence
Workforce
• Workforce Statistics Workforce Demographic
Distribution by Region
• Employees: 663
9,7% 7,7%
7,5%
• Contractors: 489 6,1%
First
Second
• Average Age: 32 years Fourth
Metropolitan
• Community: 3.8% 69%
Others
• Female: 8.4%
Spence People Experience
20
16
15
Years
10 7
5 4
0
Executives Supervisors Operators
Level
Page 41 of 50
Spence
Labour Agreement
Page 42 of 50
Spence
Agenda
Page 43 of 50
Spence
Operating Costs – Indicative Breakdown
SxEw Project
120.0
Escondida
100.0
Spence
Spence
80.0
US c/lb
60.0
40.0
20.0
0.0
0 5000 10000 15000 20000 25000 30000 35000 40000
Data from Copper Costs : Mines & Projects 2006 edition Brook Hunt
Spence cost in FY2007 (during ramp-up) estimated at US60c/lb
Page 45 of 50
Spence
Cost Management / Business Excellence
Page 46 of 50
Spence
Agenda
Page 47 of 50
Spence
Exploration
Exploration is focused on identifying
potential oxide and supergene
sulphide mineralisation to
supplement future ore feed.
Mining Lease:
– Geophysics & drilling program within current mining
leases to explore to depth for satellite deposits.
•Mining District (Outside Spence Mine Lease):
– Program to identify other potential mineral resources
amenable to leaching within an economic distance of
Spence.
•Hypogene Mineralisation:
– Drilling & metallurgical test program to delineate and
characterize the hypogene mineralisation underlying
the current Spence mine.
Page 48 of 50
Spence
Mining Property
• Property is 100%
Covered by 46k Ha
of Manifestaciones
• Right to mine
guaranteed by
annual payments
and Chilean mining
legislation
Page 49 of 50
Minera Spence
Thanks