codelco: corporaciÓn nacional del cobre de chile by: maddy betlach, grace owens, alex cantarera,...
TRANSCRIPT
CODELCO: CORPORACIÓN NACIONAL DEL COBRE DE
CHILE
By: Maddy Betlach, Grace Owens, Alex Cantarera, Lisa Volpatti, Abby Stein
Chilean Culture
Music Folklore to modern to classical
Cuisine Assortment of seafood, beef, fruits, and
vegetables Sports
Soccer Tennis
Industry Analysis: Overview
Governmentally-owned copper company Formalized in 1976 President – Minister of Mining
Board of Directors (7 members) – elected by President
Headquartered in Santiago Five primary divisions: Codelco Norte,
Salvador, Andina, Ventanas, and El Teniente
Largest copper producing company in the world
Ventanas Division - smelter
Transferred from ENAMI in May 2005 Products: cathode copper; gold, silver,
and selenium from anode slime left over Industry: Copper, lead, and zinc refining Major competitors: Freeport-McMoRan
Copper & Gold Inc., Rio Tinto Plc, Grupo Mexico S.A., BHP Billiton, Xstrata Plc
Ventanas, Cont.
Challenges: Revenue growth volatile from year to year (due to supply and demand uncertainty), dependence on natural resource
Opportunities: High barriers to entry – start-up costs, many established companies dominate market, dependence on natural resource
Interest to Engineering – actual copper smelting process, copper use in other industries (construction, electrical, etc.)
Interest to Business – Effects of nationalization of copper/being governmentally owned; truly global competition
Social and Political Impact
Hires over 18,000 people Government owned
Nationalized under Salvador Allende Interference during a crisis 10% tax on foreign currency sales Receives all excess spending
People’s Reform Benefits for minimum wage Strong government control
remained
Environmental Impact
Pollution Chuquicamata
arsenic River Loa Initiatives to reduce
arsenic emissions by 97%
Ventanas Division in 2007 375,000 metric tons of
copper 141,000 kilograms of
silver 3500 kilograms of gold 329,000 tons of
sulfuric acid Depletion
Copper Smelting
Extract copper ore from Earth El Teniente Chuquicamata
• Transportation Leach heaps Crushing mills
Copper Smelting
• Oxide minerals Leaching Electrowinning
• Sulfide minerals Crushing Froth flotation Smelting Electrorefining
Products Shipped to Customers
Shipped 1.94 million tons of copper in 2007Products:• refined copper cathodes (99.99% pure)• copper concentrates• blister or anode copper• molybdenum• anodic slime• sulphuric acid
How are products shipped?• from major ports:
- Chilean port of San Antonio
Environmental Factors
Sustainable Development Policy of Codelco, 2003 Spent $733 million on environmental projects:
Reduction of smelter emissions Improve efficiency of water and energy use Management of solid and liquid wastes
Certified under the International Standard ISO-14001 in all its Divisions in 2003
Codelco Good neighbor program A green cover for Chañaral Teniente Voluntary Environmental Agreement
“The mission of Codelco is to develop in a responsible and agile way, all of its capacity for the mining and related businesses, in order to maximize its economic value and its contribution to the
Chilean State in the long-term.”
Safety Concerns
Smelting Poisonous fumes and dust Excessive heat and noise Electrical hazards during electrolytic processes
Open Pit Mining Blasting Fear of slopes caving in
Skills and Engineering Jobs
Skills vary from hard manual labor to using engineering techniques to improve output.
Most employees have no secondary education and control certain aspects of the smelter
Engineers are predominantly used checking the reliability of the equipment and also the copper product itself.
Questions
How long does the actual process of turning the copper ore into copper sheets take?
Why is Codelco involved in the production of sulfuric acid as well as copper?
Codelco is striving produce 50% of the Chilean copper exports, how will this be reached?
What is the rate of injury in the plant?
Questions
What effects do you think being governmentally owned has had on the company overall?
How do you handle competing in a truly global market?
Has the volcano in Iceland affected shipping?
How much does public opinion affect your operations?