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Chilean Mining Investments –

Project Portfolio 2015 -2024

DEPP 13/2015

Intellectual Property Registry © #256,643

Chilean Mining Investments – Project Portfolio 2015 -2024

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Chilean Copper Commission

Brief

The objective of this Assessment is to show the updated portfolio of mining projects in Chile, the

estimate of investments required to carry it out in the 2015- 2024 period, and the impact upon the

production capacity which the resulting productive contribution would have from the investing

processes which would be registered in the aforementioned period up to 2024.

The portfolio is made up of two groups of initiatives, the first of which correspond to those projects

with a greater probability of materializing in the timeframes indicated by the owning companies,

which are those in a base and probable condition, a total of 24 initiatives assessed in $31,345 million

USD.

Furthermore, the second group of projects corresponds to those in a possible and potential

condition, meaning mining investments with lesser probability of materializing in the time frames

established by the owners, as well as those prone to being affected by changes in market conditions,

which total 18 initiatives assessed in $45,945 million USD.

The most important part of this project portfolio is not the global value thereof, rather the

composition in terms of the number of initiatives, those driving them, their objectives, their

location, and the efforts being made to carry them out.

Upon analyzing the investments within the investment portfolio, three phases can be identified:

- Investment already raised, which corresponds to $15,415 million USD, or 19.9% of the

current portfolio,

- The investment to be raised during the next five year period, 2015-2019, for $44,894 million

USD, equaling 58.1% of the portfolio, with an average yearly investment of $8,979 million

USD,

- The remainder to be invested in the 2020-2024 period, during which those projects whose

commissioning is anticipated to happen during that time have an investment total which

reaches $16,981 million USD, equaling 22% of the investment portfolio.

Within the investment to be raised during the next five year period, the project group with the base

and probable conditions make up 40% of the investment, with an average rate of $3,592 million

USD. Likewise the group of initiatives in possible and potential conditions make up the remaining

60%, with an annual investment average of $5,386 million USD.

This investment primarily seeks to increase the productive capacity, which translates into an

increase in the supply available to the international market.

In the case of copper, and considering the horizon through 20261, Chile has the potential to reach a

maximum copper production of 7.56 million tons of copper, 31.6% above the production registered

1 Two years after the last year of the commissioning thereof as registered in this portfolio.


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in 2014, if all of the anticipated projects are carried out through 2024, wherein copper production

would reach approximately 7.84 million tons, a 36.3% increase over 2014 production.

It is worth noting that if only the initiatives with a base and probable condition are carried out, the

copper production of the country will fall by 6.4% to around 5.4 million tons of fine copper. If, to

this scenario, we add the materialization of the initiatives which are possible this would counteract

the loss in production, reaching 6.6 million tons of fine copper, a 15.4% production increase with

respects to 2014.

This increase in production would reflect a structural change in the type of final product of the

copper producing operations, as the maximum capacity of concentrate production would increase

by 2.84 million tons by 2026, a 72.7% increase from 2014, the production of SxEw cathodes would

diminish by 1.03 million tons, registering a decrease of 55.7% with respects to the same year.

In the case of gold, it is expected that by 2026 the maximum capacity of this metal could reach 80.5

tons of gold content, a 75% increase over the 46 tons registered in 2014, while the projects included

in this report with potential production of silver would reach 1,495 tpa of silver by 2026 over current

production, which in 2014, reached 1,572 tons of silver.

In the case of molybdenum, the principal by-product of copper mining, the maximum recovery

capacity of molybdenum will reach 95.6 thousand tpa by 2026, a 96% increase with respects to the

amount produced in 2014, which implies a yearly average rate of 5.3%.

The projects with primary production or by-production of iron considered in this report will

contribute 18.8mt of iron mineral by 2026, approximately 11.9 Mt of fine content, to reach a

maximum production of around 33.3 Mt of iron ore, which is an 80% increase with respects to the

quantity registered in 2014.

In the case of industrial minerals, there are two initiatives in the area of saltpeter, the first of which

would contribute 10,000 tpa of iodine equivalent, and around 1,293,000 tpa of NaNO3. The second

initiative would produce around 2,700 tpa of iodine, and 400,000 tpa of nitrates, including 20,000

tpa of boric acid.

It is interesting to point out that there is also an initiative to produce titanium dioxide (TiO2) at a capacity which is estimated at 200 ktpa of concentrate (95% of TiO2).


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Index

Brief. .................................................................................................................................................... 1

Figure Index ......................................................................................................................................... 5

Table Index .......................................................................................................................................... 6

1. Introduction ................................................................................................................................. 7

2. Methodology ............................................................................................................................... 9

2.1. Coverage .............................................................................................................................. 9

2.2. Project attributes and conditions for their realizaton ......................................................... 9

2.2.1. Conditions for materialization ................................................................................ 9

2.2.2. Project type ...........................................................................................................10

2.2.3. Stage of advancement ..........................................................................................11

2.2.4. Procedure for Environmental Evaluation Service (SEA) ........................................11

2.2.5. Time frame for commissioning .............................................................................11

2.3. Codelco´s investment and information sources ................................................................12

2.4. Private mining investment and information sources ........................................................13

2.5. Methodological critera to estimate the commissioning date ...........................................14

2.6. Production capacity estimate of copper mine ..................................................................14

3. Investments in Chilean mining ..................................................................................................16

3.1. Conditionality of the projects ............................................................................................17

3.2. Investment purpose ...........................................................................................................20

3.3. Regional investment ..........................................................................................................21

3.4. Investment per originating country ...................................................................................23

4. Estimate of yearly distribution of the project portfolio ............................................................26

4.1. Distribution of the investment in copper mining ..............................................................26

4.2. Distribution of the investment in gold, iron and industrial minerals ................................28

5. Estimate of the copper production capacity in Chile until 2026 ...............................................30

5.1. Maximum copper mining production capacity in Chile .....................................................30

5.1.1. Analysis of the hydrometallurgy production ........................................................32

5.1.2. Analysis of the concentrate production................................................................34

5.2. Maximum copper mining production capacity per region ................................................40


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5.3. Global estimate of the production capacity of other minerals .........................................43

5.3.1. Production capacity of gold and silver ..................................................................44

5.3.2. Production capacity of molybdenum ....................................................................44

5.3.3. Production capacity of iron ...................................................................................45

5.3.4. Industrial minerals ................................................................................................46

6. Comparison of the project portfolios from 2015 and 2014 ......................................................47

7. Conclusions ................................................................................................................................54

Investment procedence .....................................................................................................54

Investment purpose ...........................................................................................................55

Investment region ..............................................................................................................55

Conditionality of the investment .......................................................................................55

Structural change in copper production ............................................................................56

ANNEX 1: Description of investment projects in copper mining ......................................................58

1. State copper mining projects ....................................................................................................58

1.1. Structural Projects of CODELCO - www.codelco.cl ............................................................58

2. Projects of the large private copper mines ...............................................................................65

2.1. Projects of Anglo American - www.angloamerican.com ..................................................65

2.2. Projects of Antofagasta Minerals - www.antofagasta.co.uk ............................................66

2.3. Projects of BHP Billiton - www.bhpbilliton.com ..............................................................72

2.4. Project of Capstone Mining - www.capstonemining.com ................................................74

2.5. Projects of Lunding Mining - www.lundinmining.com ....................................................75

2.6. Projects of Teck - www.teck.com .....................................................................................78

3. Projects of the medium copper mines ......................................................................................81

3.1. Project of Amerigo Resources - www.amerigoresources.com ..........................................81

3.2. Project of COPEC - www.empresascopec.cl .....................................................................82

3.3. Project of Hot Chili - www.hotchili.net.au ........................................................................83

3.4. Projects of Pucobre - www.pucobre.cl ..............................................................................84

4. Metallurgy Plant Projects ..........................................................................................................85

4.1. Project of Codelco - www.codelco.cl .................................................................................85

4.2. Project of LS-Nikko Copper ................................................................................................86

ANNEX 2: Description of the investment projects in gold and silver mining ....................................87


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1. Project of Atacama Pacific Gold - www.atacamapacific.com ...................................................87

2. Projects of Barrick Gold - www.barrick.com .............................................................................88

3. Project of Exeter Resource Corp. - www.exeterresource.com ................................................90

4. Project of Kingsgate Consolidate Ltd. - www.kingsgate.com.au ...............................................92

5. Project of Kinross - www.kinross.com .......................................................................................94

ANNEX 3: Description of the investment projects in iron mining .....................................................96

1. Project of Andes Iron - www.conocedominga.cl .....................................................................96

2. Project of CAP MINERÍA. - www.capmineria.cl .......................................................................97

3. Project of Hebei Wenfeng Industrial Group - www.wfsteel.com .............................................98

ANNEX 4: Description of the investment projects in industrial minerals .........................................99

1. Projects of Ingenieros Asesores Ltda.........................................................................................99

2. Projects of SQM S.A. - www.sqm.cl .........................................................................................100

3. Project of White Mountain Titanium Corp - www.wmtcorp.com ..........................................101

Figure Index

Figure 1: Distribution of the investment in Chilean mining, according to condition ........................ 17

Figure 2: Distribution of the investments in Chilean mining, according to project type .................. 20

Figure 3: Total investment of the investment portfolio per region, copper mining, and others ..... 21

Figure 4: Total investment of the investment portfolio according to originating country (MMUS$

and %) ................................................................................................................................................ 24

Figure 5: Investment per year, realized and to be realized, of the project portfolio according to

type of mining ................................................................................................................................... 26

Figure 6: Projection of maximum copper production in SxEw cathodes, 2014-2026 period ........... 33

Figure 7: Projection of maximum copper production in concentrates, 2014-2026 period .............. 34

Figure 8: Production of copper in concentrates and the participation in total production ............. 35

Figure 9: Projection of maximum copper production in concentrates according to destination,

2014-2026 period .............................................................................................................................. 36

Figure 10: Projection of maximum production of tailings from the copper concentrating process,

2014 - 2026........................................................................................................................................ 37

Figure 11: Capacity for processing in copper concentrating plants up to 2026 ............................... 38

Figure 12: Relation between treated mineral and fine copper content in concentrate produced .. 39


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Table Index

Table 1: Conditions to carry out a project......................................................................................... 10

Table 2: Register of mining projects in Chile 2015 – 2024 ................................................................ 16

Table 3: Distribution of the investments in Chilean mining per sector and condition of the

projects. ............................................................................................................................................. 17

Table 4: Distribution of the investments in Chilean mining per sector and stage of advancement.18

Table 5: Distribution of the investment in Chilean mining according to area and processing before

the SEA .............................................................................................................................................. 19

Table 6: Distribution of the investment in Chilean mining per sector and project type .................. 20

Table 7: Investment in copper mining per region and project condition ......................................... 22

Table 8: Investment in gold, iron and industrial mineral mining, per region and project condition. 23

Table 9: Distribution of the investment in cooper mining per originating country and condition

(MMUS$) ........................................................................................................................................... 25

Table 10: Investment in gold, iron, and industrial mineral mining, per originating country and

condition (MMUS$) ........................................................................................................................... 25

Table 11: Yearly distribution of the copper mining investment according to the project condition

(MMUS$) ........................................................................................................................................... 27

Table 12: Yearly distribution of the investment in gold, iron and industrial minerals according to

condition (MMUS$) ........................................................................................................................... 28

Table 13: Estimated production capacity of copper mining in Chile through 2026 (kt of fine Cu)... 30

Table 14: Estimated Chilean production capacity of fine copper in concentrate through 2026 (kt of

fine Cu) .............................................................................................................................................. 32

Table 15: Estimated Chilean production capacity of fine copper in SxEw cathodes through 2026

(Thousands of tons.) .......................................................................................................................... 32

Table 16: Maximum regional productive capacity of copper mines in Chile through 2026

(thousands of tons of fine Cu) ........................................................................................................... 40

Table 17: Maximum regional productive capacity of fine copper concentrate through 2026

(thousands of tons) ........................................................................................................................... 41

Table 18: Maximum regional productive capacity of fine copper in SxEw cathodes through 2026

(thousands of tons) ........................................................................................................................... 42

Table 19: Contribution to maximum production capacity of gold and silver according to project .. 44

Table 20: Maximum production capacity of molybdenum according to project ............................. 45

Table 21: Estimate of new iron production capacities according to project .................................... 46

Table 22: Comparison of investment portfolios 2015 vs. 2014 ............¡Error! Marcador no definido.

Table 23: Comparison of portfolios 2015 and 2014 according to project condition ........................ 51

Table 24: Comparison of portfolios 2015 and 2014 according to type of mining ............................ 52

Table 25: Comparison of portfolios 2015 and 2014 according to type of mining and project

condition ........................................................................................................................................... 52

Table 26: Comparison of portfolios 2015 and 2014 at a regional level ............................................ 53


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1. Introduction

The following report corresponds to a new update of the yearly report about investments in Chilean

mining for the next decade, which is part of a line of work carried out by the Chilean Copper

Commission and the Department of Studies and Public Policies for the past almost 10 years.

The information herein contained is on based on public records available through June 2015, having

the primary objective of providing pertinent information about the registry of mining projects which

are currently valid in Chile, with the following projection of the expected investment and the

potential capacity of mining production in Chile, considering the productive contribution which

results from the investment process during the next ten years.

The registration of the mining initiatives in this report does not assure they will materialize within

the terms and timeframes planned by the companies, however it shows the interest they have to

advance in their current mining activities, in the case of the companies with operations in Chile, or

to begin mining in our territory, having considered the geologic potential of the available mining

property as well as the economic and political perspectives in the country in the long term.

This report is structured in the following manner:

a) Specification of the methodological criteria used for the elaboration of this report, showing

coverage, attributes which coincide with the condition that each project is in, with the

purpose of measuring the level of certainty of the available information, information

sources, criteria to estimate the start-up date if it is not readily available, and the estimate

of the copper production capacity and of that of other minerals in the long term.

b) Analysis of the investment required for the copper mining project portfolio, as well as that

of gold, silver mining, iron mining, and that of some industrial minerals, with respects to the

conditionality of these initiatives, the purpose of the investment, the regional distribution

and the countries wherein the investments originate. The descriptive background of each

of the projects considered is included in Annex 1 (copper mining), Annex 2 (gold and silver

mining) and Annex 3 (industrial minerals: iodine, nitrates, potassium salts, and titanium

oxide,) respectively.

c) An estimate of the investment flow coming from the project profile, indicating the amounts

already invested, the yearly flow during the next decade, and the amount to be invested

after the next five years. It is to be noted that this projection is only referential and does not

constitute a commitment with the companies which own the projects.

d) Furthermore, and as a result of the investment process, the productive contribution of these

projects is shown, through projections of the maximum production capacity of the copper

mine, in concentrates such as SxEw cathodes, looking toward 2026 (two years after the last

start-up registered in this report) and focusing on the conditionality of the initiatives.

Additionally, a global estimate is given for the future production of gold, silver,

molybdenum, iron and the industrial minerals considered. As in the case of the


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annualization of the investments, the production estimates are only referential based on

the methodologies and information sources described at the beginning of this document.

e) As in the previous two years, a registry is made as a form of comparison of the changes

which have been registered between the current project portfolio and the previous,

showing variations in investment amounts as well as in the quantity of initiatives

considered. In this opportunity a vision is given on a level of the conditionality of the

projects, investment purpose, and comparison on a regional level of the changes produced.

Finally it concludes with the most relevant background information which can be taken from the

information given.


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2. Methodology

The Methodology which is used for the confection of this register is based on the following criteria:

2.1. Coverage

The project register covers the investments with productive purposes (reposition or expansion of

the production or new development) anticipated by CODELCO and the private companies of the

large and medium metal and non-metal mines, excluding energy minerals. Only projects with

investments which surpass 90 million dollars are included, as are those which are already being

carried out as well as those in which the companies are assessing and have the intention of initiating

the investment process within a five year period.

For the effects of the yearly distribution of the estimated investment for each project, included is

the sum of the investments already in place from the beginning of the project until the end of the

year prior to the present report under the concept of “Before xxxx” wherein “xxxx” corresponds to

the publication year of the report. Then the estimated investment is assigned for each year of the

next five year period. Similarly, for those projects which will begin operations after the next five

year period, it is presented as “Investment after xxxx”, wherein “xxxx” is the year after the last year

of the present five year period, for the accumulated investment which will be carried out until the

operations begin.

It is worth noting that the information compiled in this document is the best approximation known

of the projects being considered. In some cases, without other public information, the yearly

distribution of the investments are estimates of the authors and are not binding in any way for the

companies who own the projects.

The background information of each project includes an estimate of the production of metals which

they would supply, when it corresponds to such, as well as the indication of the current state of the

project.

2.2. Attributes of the projects and the conditions of carrying them out

The information about the investment projects is characterized by the uncertainty due to the

quantity and quality of the background information available, which depends on the attributes of

the projects up to the date in which the registry is made.

2.2.1. Conditions for the materialization

Each attribute has a degree to which it may be associated to a greater or lesser degree of certainty

and the combination of which will give a perception of the conditionality in which it is found to be

carried out. Therefore, there are 4 conditions defined: Basic, probable, possible, and potential, as

associated with the specific attributes which are detailed in Table 1:


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Table 1: Conditions for carrying out a project

Condition Project type Stage of advance SEA process Implementation

BASE Any Execution RCA approved Within the period

PROBABLE

Any Execution suspended RCA approved or in judicial claims

Within the period

Any Feasibility RCA approved Within the period

Reposition or expansion Feasibility EIA or DIA in process Within the period

POSSIBLE

Reposition or expansion Feasibility suspended EIA or DIA in process Within the period

Reposition or expansion Feasibility EIA or DIA not presented Within the period

New Feasibility EIA or DIA in process or not presented

Within the period

Any Feasibility RCA approved Outside of the period

Reposition or expansion Feasibility EIA or DIA in process or not presented

Outside of the period

POTENTIAL

Any Feasibility suspended Any Outside of the period

New Feasibility EIA or DIA in process or not presented

Outside of the period

Any Pre-Feasibility Any Any

Source: Prepared by COCHILCO

The attributes of a project are associated to their type, the stage of advance they are in, the status

of the processing before the SEA, and the estimated date of implementation. The explanation of

each is as follows:

2.2.2. Project type

This attribute gives information about the degrees of certainty of the realization of an investment

project, as it relates to the strategic purpose of the Company and the lesser to higher complexities

they face for the implementation to be carried out. The categories are as follows:

a) Replacement projects: Those wherein the investment is to maintain the productive capacity of a current operation (brownfield) with new mining developments, to deal with a decline in ore grades and/or depletion of sectors being mined. This allows the Company to prolong the lifespan of the site and the use of the installations.

b) Expansion projects: Those which seek to enlarge the current operational capacity (brownfield), with the purpose of increasing the production scale and diminishing the unitary costs, especially due to a decline in ore grades of the mining resources to be exploited.

c) New projects: Those located at a new deposit (greenfield), and have to begin everything: the environmental and sector permissions, develop infrastructure, and settle into a new


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location. It also includes projects in current operations (brownfield), which contemplate a complete change in the productive process (For example: from leaching to concentration), which implies a practically new development of the site.

2.2.3. Stage of advance

It is possible to estimate that to the degree that a project advances the certainty that it will be

carried out increases. Therefore the projects have been categorized, according to the stage they

are in:

a) In Execution: The investment has been approved as well as has the corresponding permissions for it to be carried out. It is already in one of the detailed engineering or construction stages from the beginning to the implementation.

b) Feasibility Assessment: Those which have already begun the feasibility studies and those of environmental evaluation (EIA or DIA) or they may already have been finished, but the final decision approving the investment has not been made.

c) In Pre-feasibility Assessment: Those which are in the initial stage of pre-feasibility studies until the decision is made to continue to the following stage.

Most of the projects follow a normal course, notwithstanding the modifications which are seen fit

to introduce, however, the advancement of a project may be affected by some type of suspension,

be it from internal situations or those outside of the company’s control. Upon suspension, the

project stops advancing and in some cases will return to the previous stage to redo the studies and

thereby resolver the complications which have arisen be they internal or external.

2.2.4. Processing before the Environmental Evaluation Service (SEA)

No project may be carried out without having the Environmental Qualification Resolution (RCA)

approved, which occurs after an exhaustive technical-administrative process which includes civic

participation, which is submitted to the declaration or the studies of the corresponding

environmental evaluation.

Therefore, three stages are shown, from most to least certainty:

a) RCA approved, b) EIA or DIA in process c) EIA or DIA nor presented

2.2.5. Implementation time frame

The level of certainty of the background information also depends on the proximity or length of time

from the date set for the implementation. The following ranges indicate a greater to lesser

certainty:

a) Within the period: Date within the period of analysis, or within the five-year period, b) Outside of the period or Long-term: Date after the period of analysis, or outside of the five-

year period.


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2.3. The investments of Codelco and their information sources

The information sources about the investments projected by Codelco are based on public

information given by the corporation on their webpage, in presentations from the board of

directors, and are compiled primarily on the whole of information available from their Business and

Development Plan, and other official information of the Company received regularly by the Direction

of Evaluation of Investments and Strategic Management (DEIGE) of Cochilco, which assist in

supplying a better estimate. This information is to be understood as being only a prospective tool

and does not bind the public entities which would intervene in the evaluation of the investment

projects, which may or may not be considered in the projection2.

The investments considered by Codelco, are those which are contemplated in the 2015 Business

and Development Plan (PND 2015), justified as development projects or to increase the information

necessary for future developments.

The development projects are directly related with the productive future of the divisions and should

meet profitability norms to be approved. Of these are highlighted:

a) Structural projects: a select group of the development projects conceived to take an integral advantage of the mineral resources, and constitute the base for the development of the corporation in the long term. The report of each of these projects gives explicit background information of the characteristics and investment amounts for the implementation stage.

b) Other developmental projects: the investment portfolio of Codelco contains diverse projects with more temporary or short term goals, whose execution are essential for the continuity of operations in the productive divisions, considering them to complement that which has been planned for the structural projects. In this report the global background of the investment amounts is considered for this concept.

Furthermore, Codelco justifies as informational projects those which allow them to acquire new and

relevant information for corporative development, but which are not broken down under a

particular investment project. Within this concept, the investments are grouped in studies for future

developmental projects (pre-feasibility, feasibility, environmental evaluation, etc.), the investment

in basic and generative exploration, and investments in I&D. Given the diversity of these purposes,

only a broad background of the financing requirements considered for this concept is given.

2 Before an investment can be confirmed, it is required that an “Authorization of Investment Projects” be carried out, during the

evaluation of which the Chilean Copper Commission and the Social Development Department work together. It does not include those

expenses which CODELCO treats as investments (Differed expenses and others) for which the aforementioned authorization is not

required. The fact that they are identified in the 2014 PND does not necessarily mean that they have the established investment

authorization which is required by the applicable regulations and does not bind the entities mentioned therein.


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Among the projects included in this report the investments from the 2014 PND are not considered

which are justified with other objectives, such as the replacement of equipment, refurbishing of

installations, decontamination projects, workplace safety and well-being, even though they also

require an API to be carried out. This exclusion meets the purpose of making Codelco´s information

comparable with the information for private investments, as this type of information from the

privately owned companies is not available.

Also excluded are those corporate investment which, for their nature, do not require an API and

which escape being covered in the present report. However it has been found pertinent to consider

the investments of Codelco in companies intending to build metallurgic plants for by-product

processing, and thereby obtain final products of a higher value3. This type of investment is excluded

in Codelco´s investment total, and as such are consigned as “Metallurgic Plants” in copper mining.

2.4. Investment in private mining and information sources

The information about private mining projects is gathered principally from the announcements

made by the companies through the media (company web pages, newspapers, articles in specialized

magazines, etc.) and through their presentations to the environmental evaluation department.

It includes all of the projects which have begun construction. In the case of the projects which are

still in the Assessment phase the advancement has been reviewed and investment predictions have

been updated, as well as implementation date and estimated production profiles, with the most

recent public information.

This implies that at least the following updates are made:

a) Identification of the project titleholder for projects which have changed hands.

b) Production capacity and types of products of interest.

c) Investment amounts, implementation date, and execution order of events.

d) Inclusion of new projects.

e) Elimination of projects which were recently implemented.

f) New requirements, such as the incorporation of the usage of sea water, be it directly or desalinized.

With respects to the investment amounts, it is assumed that the projects reflect principally the

execution stage, notwithstanding that several of them may include prior investments in the

Assessment phase.

3 MOLYB Ltda. is an affiliate to produce molybdenum trioxide from molybdenite. Similarly, PLANTA RECUPERADORA DE

METALES, (60% LS NIKKO of Korea and 40% of Codelco), is a company which processes anodic slime to recuperate gold,

silver, and other noble minerals.


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Due to the fact that generally only a general investment amount is known a year prior to the

implementation date, the yearly distribution of the investment is estimated by assuming tentative

timelines for project development, based primarily in the information given in the presentations to

the environmental evaluation system or by empirical estimates of how similar projects are

developed chronologically.

It is worth noting that in the cases of projects which are lacking precise public data for the

implementation year, Cochilco has estimated it based on the context of the available data, which

does not bind the companies in any way.

2.5. Methodological criteria for estimating the implementation date

Diverse circumstances either internal and/or external may affect the development of the projects.

External factors refer to the necessary of: securing the electrical supply at a lower amount than the

prevailing costs, fine tuning of the environmental impact Assessment and/or obtaining permits to

build infrastructure as required for the project.

Furthermore, internal factors refer to the synchronization of the project with the global strategy of

the company, acquiring financing, and the need of improving the cost indicators considered for

investment and/or operation as determined in the project engineering studies, as well as others.

In the instance of a lack of public data about the implementation date of a given project, COCHILCO

applies the following methodological criteria:

a) A year of delay is considered if the project is only affected by external factors,

notwithstanding that the company carries out studies to improve the Feasibility Assessment

considering the resolution of the pending topics, which could mean minor modifications in

the Assessment.

b) Two years of delay are considered if the project requires reworking to take into account the

pre-feasibility or Feasibility studies, a normal time frame for this type of studies to be carried

out.

In the case that there is not sufficient background information to estimate a clear implementation

date for the initiatives, these are removed from the portfolio as “restructuring projects.”

2.6. Estimating the production capacity of copper mines

The maximum potential copper production capacity corresponds to the sum of the estimated

individual maximum production capacity of each profile for the current mining operations which

produce copper concentrates and/or SxEw cathodes, as those which correspond to the new copper

projects contemplated in the present investment portfolio which will be implemented within the

next decade. The figures are expressed in tons of fine copper.

The future profiles of the current operations are projected over the base of the recent productive

behavior and the estimate of the evolution of the mining-metallurgic parameters (ore grade and


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recovery capacity of the concentrating plants or the consumption of rates in acids in

hydrometallurgical operations, considering maximum treatment profiles and they do not

contemplate usage problems of the processing plant, all of which are according to the information

which is available to Cochilco, considering a continuous operation of 360 days per year.

At the same time, the projected project profiles for the projects are based in the maximum

treatment capacity of the minerals described by the companies for a continuous operation of 360

days per year, and the background of the mining-metallurgical parameters which are expected for

future operations.

As the projects are assigned distinct materialization conditions (base, probable, possible, and

potential), the production profiles are broken down according to these degrees, indicating therein

the levels of certainty from most to least. For this reason the projected amounts should be

understood as an estimated potential maximum capacity, beginning in the year of the publication

of the present report, according to the available background information. Included as referential

data is the real production registered the year after the publication of this update.

It is worth noting that the production projection horizon is up to two years after the last year of the

implementation which is registered in this report.


16


3. Investment in Chilean mining

The present chapter shows information with regards to the investment amounts required for the

projects being considered, based on criteria such as investment purpose, conditionality, regional

investment, and by country of origin. The list of the projects considered in this update of the

investment portfolio in Chilean mining, through July 2015, is shown in the following table.

Table 2: Register of Chilean mining projects 2015 – 2024

Implementation Projects Operator Mining Sector Region Project

type Condition

Development stage

Status of environmental

permissions

Investment through

July 2015 (MMUS$)

2015 - 2019 Other development projects Codelco Chile State - Cu Various Replacement BASE Execution N/A 2,758 2015 - 2019 Information projects

información Codelco Chile State - Cu Various New POSSIBLE Feasibility N/A 1,165

2015 Romeral Phase V Cía. Minera del Pacífico Iron Coquimbo Replacement BASE Execution EIA approved 198 2015 Escondida OGP I Minera Escondida Ltda. Large mining - Cu Antofagasta Expansion BASE Execution EIA approved 4,199 2015 Antucoya Minera Antucoya Large mining - Cu Antofagasta New BASE Execution EIA approved 1,900 2015 Update Esperanza Minera Centinela Large mining- Cu Antofagasta Expansion BASE Execution EIA approved 630 2015 Valle Central Expansion Minera Valle Central Med. Mine - Cu O'Higgins Expansion BASE Execution EIA approved 152

2016 Mo treatment plant Molyb Ltda. Metallurgy Plants Antofagasta New BASE Execution EIA approved 425 2016 Oso Negro Minera San Fierro Chile Ltda Iron Atacama New PROBABLE Feasibility EIA approved 90 2016 Metal recovery plant Planta Rec. de Metales SpA Metallurgy Plants Antofagasta New BASE Execution EIA approved 96 2016 Encuentro Óxidos Minera Centinela Large mining - Cu Antofagasta Replacement BASE Execution EIA approved 636 2016 El Tesoro modifications Minera Centinela Large mining - Cu Antofagasta Replacement BASE Execution EIA approved 86 2016 Quebrada Blanca Update Cía. Minera Teck Quebrada

Blanca Large mining- Cu Tarapacá Replacement PROBABLE Feasibility EIA presented 165

2017 Sierra Gorda Expansion 220 ktpd Sierra Gorda SCM Large mining – Cu Antofagasta Expansion PROBABLE Feasibility EIA presented 1,500 2017 Pampa Blanca Expansion SQM Nitrato Industrial Minerals Antofagasta Expansion PROBABLE Feasibility EIA approved 665 2017 Nueva Esperanza – Arqueros Laguna Resources Chile Gold Atacama New POSSIBLE Feasibility Without EIA 150 2017 Pascua Cía. Minera Nevada Gold Atacama New PROBABLE Execution EIA suspended 4,250 2017 Arbiodo Ingenieros Asesores Ltda. Industrial Minerals Antofagasta New POSSIBLE Feasibility Without EIA 503 2017 Cerro Blanco SCM White Mountain Titanium Industrial Minerals Atacama New PROBABLE Feasibility EIA approved 380 2017 Caspiche Óxidos Eton Chile Gold Atacama New POSSIBLE Feasibility Without EIA 344 2017 El Espino Pucobre Medium mining - Cu Coquimbo New POSSIBLE Feasibility EIA presented 624 2017 Cerro Colorado Cont.

Operacional

Pampa Norte Large mining- Cu Tarapacá Replacement PROBABLE Feasibility EIA presented 467 2017 Los Bronces - phase 7 AngloAmerican Sur S.A. Large mining- Cu Metropolitana Expansion PROBABLE Feasibility EIA presented 112

2018 La Coipa phase 7 Kinross Minera de Chile Ltda. Gold Atacama Replacement PROBABLE Feasibility EIA presented 200 2018 Santo Domingo Santo Domingo SCM Large mining - Cu Atacama New PROBABLE Feasibility EIA approved 1,700 2018 Candelaria 2030 Cía. Contractual Minera

Candelaria Large mining - Cu Atacama Replacement PROBABLE Feasibility EIA approved 460

2018 Cerro Maricunga Minera Atacama Pacific Gold Chile Ltda.

Gold Atacama New POSSIBLE Feasibility Without EIA 587 2018 Diego de Almagro Compañía Minera Sierra Norte

S.A Medium mining - Cu Atacama New PROBABLE Feasibility EIA approved 597

2018 Productora Sociedad Minera El Águila Limitada

Medium mining - Cu Atacama New POTENTIAL Pre-feasibility Without EIA 700 2018 Ampliación Marginal los

Pelambres

Minera Los Pelambres Large mining - Cu Coquimbo Replacement POSSIBLE Feasibility Without EIA 1,190

2019 Sulfuros RT phase II Codelco Div. Radomiro Tomic State - Cu Antofagasta New POSSIBLE Feasibility EIA presented 5,459 2019 Spence Growth Option Pampa Norte Large mining - Cu Antofagasta New POSSIBLE Feasibility EIA presented 3,300 2019 Dominga Andes Iron Iron Coquimbo New POSSIBLE Feasibility EIA presented 2,888 2019 Distrito Centinela(*)

Development

Minera Centinela Large mining - Cu Antofagasta New POSSIBLE Feasibility EIA presented 4,350

2020 Chuquicamata Subterranean Codelco Div. Chuquicamata State - Cu Antofagasta Replacement BASE Execution EIA approved 3,816 2020 Rajo Inca Codelco Div. Salvador State - Cu Atacama Expansion POTENTIAL Pre-Feasibility Without EIA 2.691 2020 Quebrada Blanca Hipógeno Cía. Minera Teck Quebrada

Blanca Large mining - Cu Tarapacá New POTENTIAL Feasibility Without EIA 5,590

2021 New Level Mine Codelco Div. El Teniente State - Cu O'Higgins Replacement BASE Execution EIA approved 4,920 2021 El Abra Mill Project SCM El Abra Large mining - Cu Antofagasta New POTENTIAL Feasibility Without EIA 5,000

2022 Mine- Plant Transfer Codelco Div. Andina State - Cu Valparaíso Replacement BASE Execution N/A 1,323 2022 Relincho Cía. Minera Relincho Copper

S.A. Large mining - Cu Atacama New POTENTIAL Feasibility Without EIA 4,500

2024 Nueva Andina Phase II Codelco Div. Andina State - Cu Valparaíso Expansion POSSIBLE Feasibility EIA presented 6,524

Total Investment in the project portfolio 2015 - 2024 (MMUS$) 77,290

(*): Previously named “Encuentro Sulfuros”

Source: Prepared by COCHILCO, based on information for each project taken from public sources


17


3.1. Project conditionality

Every mining initiative may be affected by certain variables which cause changes in the planned

timeline, these are usually the stage of advancement in the construction or studies, obtaining

permission, be it environmental or sectoral, financial strength of the Operating companies, among

others. Based on this information it is possible to establish the conditions: base, probable, possible,

and potential, based on the greater or less amount of certainty of which the project will come about

in the time and with the aforementioned variables4. Figure 1 shows the investment distribution

according to the condition, while table 3 shows how the investment is distributed per mining sector

and project condition.

Figure 1: Investment distribution in Chilean mining, according to condition


Table 3: Investment distribution in Chilean mining per sector and project condition

Mining sector Sector Total Base Probable Possible Potential

Project Quantity

Investment (MMUS$)

Project Quantity

Investment (MMUS$)

Project Quantity

Investment (MMUS$)

Project Quantity

Investment (MMUS$)

Project Quantity

Investment (MMUS$)

Codelco 8 28,656 4 12,817 0 0 3 13,148 1 2,691

Large mining 17 35,785 5 7,451 6 4,404 3 8,840 3 1,090

Medium mining 4 2,073 1 152 1 597 1 624 1 700

Metallurgic Plants 2 521 2 521 0 0 0 0 0 0

Copper subtotal 31 67,035 12 20,941 7 5,001 7 22,612 5 1,481

Gold and Silver 5 5,531 0 0 2 4,450 3 1,081 0 0

Iron 3 3,176 1 198 1 90 1 2,888 0 0

Industrial minerals 3 1,548 0 0 1 665 2 883 0 0

Other mineral subtotal 11 10,255 1 198 4 5,205 6 4,852 0 0


4 For more information on the Methodology, go to Chapter 2.2 “Project attributes and conditions for their realization”.

BASEMMUS$ 21.139

27,4%13 projects

PROBABLEMMUS$ 10.206

13,2%11 projects

POSSIBLEMMUS$ 27.464

35,5%13 projects

POTENTIALMMUS$ 18.481

23,9%5 projects


18


Therefore the investment portfolio for 2015-2024 corresponds to 42 initiatives, broken down into

31 copper mining projects, valued in US$ 67,035 million, and 11 projects belonging to gold, silver,

iron, and industrial mineral mining, for a total of US$ 10,255 million.

Of this total, we will initially analyze the projects with the greatest probability of being carried out within the time frame indicated by the proprietary mining companies, which correspond to those projects in the base and probable conditions, being 23 initiatives valued in US$ 29,845 million:

- 13 initiatives are in base condition, with an investment of US$ 21,139 million, wherein CODELCO has a 63.1% participation rate of the investments in this condition.

- 10 projects in a probable condition, with an investment of US$ 10,206 million, where gold and silver mining make up 43.6% of the total investment.

The second group, projects in the possible and potential category, correspond to those initiatives

with a lesser probability of materializing within the time frame established by the owners as well as

being those more likely to be affected by changes in market conditions, being the equivalent of 18

initiatives valued in US$ 45,945 million:

- 13 in the possible condition, valued in US$27,464 million, wherein CODELCO has a 48%

participation in the investment total.

- Five initiatives in the potential condition, with an investment total of US$ 18,481 million,

wherein the large private copper mining has 82% participation.

Due to the complex characteristics and ease of being affected by the variables described at the

beginning of this chapter, this last group requires more attention so that in the right time they may

be implemented within the institutional framework of the country.

To better analyze the variables involved up to the moment of defining the condition of the projects

in this registry, following is shown the investment distribution of the projects with regards to their

stage of advancement and of processing before the Environmental Evaluation Service.

Table 4: Investment distribution in Chilean mining per sector and stage of advancement

Mining sector

Sector Total Execution Execution suspended Feasibility Pre-feasibility

Project Quantity

Investment (MMUS$)

Project Quantity

Investment (MMUS$)

Project Quantity

Investment (MMUS$)

Project Quantit

y

Investment (MMUS$)

Project Quantity

Investment (MMUS$)

Codelco 8 28,656 4 12,817 0 0 3 13,148 1 2,691

Large mining 17 34,285 5 7,451 0 0 12 28,334 0 0

Medium mining 4 2,073 1 152 0 0 2 1,221 1 700

Metallurgic plants metalúrgicas

2 521 2 521 0 0 0 0 0 0

Copper Subtotal 31 67,035 12 20,941 0 0 17 42,703 2 3,391

Gold and silver 5 5,531 0 0 1 4,250 4 1,281 0 0

Iron 3 3,176 1 198 0 0 2 2,978 0 0

Industrial minerals 3 1,548 0 0 0 0 3 1,548 0 0

Other mineral Subtotal 11 10,255 1 198 1 4,250 9 5,807 0 0



19


As observed in Table 4, the projects in execution make up 27.4% of the total portfolio with 13

initiatives, of which “Mine-Plant Transfer” of División Andina and “Other development projects” of

CODELCO which do not possess the Environmental Impact studies due to investments on an

operational level. It may also be observed that the investment portfolio concentrates 62.8% of the

inversions on 26 projects in the feasibility stage.

Table 5: Investment distribution in Chilean mining per sector and SEA process

Mining Sector Sector Total EIA approved EIA suspended EIA presented Without EIA N/A

Project Quantity

Investment (MMUS$)

Project Quantity

Investment (MMUS$)

Project Quantity

Investment (MMUS$)

Project Quantity

Investment (MMUS$)

Project Quantity

Investment (MMUS$)

Project Quantity

Investment (MMUS$)

Codelco 8 28,656 2 8,736 0 0 2 11,983 1 2,691 3 5,246

Large mining 17 35,785 7 9,611 0 0 6 9,894 4 16,280 0 0

Medium mining 4 2,073 2 749 0 0 1 624 1 700 0 0

Metallurgic Plants 2 521.1 2 521 0 0 0 0 0 0 0 0

Copper Subtotal 30 67,035 13 19,616 0 0 9 22,501 6 19,671 3 5,246

Gold and silver 5 5,531 0 0 1 4,250 1 200 3 1,081 0 0

Iron 3 3,176 2 288 0 0 1 2,888 0 0 0 0

Industrial minerals 3 1,548 2 1,045 0 0 0 0 1 503 0 0

Other minerals subtotal 11 10,255 4 1,333 1 4,250 2 3,088 4 1,584 0 0


Similarly, table 5 shows the 17 initiatives which equal 27.1% of the total inversion which have the

RCA approved as of July 2015, which indicates that there are 6 initiatives which, in the next few

months, could begin implementation and change their materialization condition. Furthermore,

33.1% of the financing corresponds to 10 initiatives which have not yet received a positive

environmental qualification (RCA approved) for their presented projects, and 27.5% of the

investment corresponds to projects which have not yet entered their respective EIA into the system.


20


3.2. Investment purpose

The materialization of the initiatives, as well as being subject to the aforementioned variables,

depends on the strategic purpose of the Company with regards to its future development. Following

is an investment summary of the inversions for the project portfolio for the 2015-2024 period,

according to the mining sector it is destined to, distributed by project type5.

Figure 2: Investment distribution in Chilean mining, according to project type


Table 6: Investment distribution in Chilean mining per sector and project type

Mining sector

Sector Total Replacement Expansion New

Project Quantity

Investment (MMUS$)

Project Quantity

Investment (MMUS$)

Project Quantity

Investment (MMUS$)

Project Quantity

Investment (MMUS$)

CODELCO 8 28,656 4 12,817 2 9,215 2 6,624

Large mining 17 35,785 6 3,004 4 6,441 7 26,340

Medium mining 4 2,073 0 0 1 152 3 1,921

Metallurgic plants 2 521 0 0 0 0 2 521

Copper subtotal 31 67,035 10 15,821 7 15,808 14 35,406

Gold and silver 5 5,531 1 200 0 0 4 5,331

Iron 3 3,176 1 198 0 0 2 2,978

Industrial minerals 3 1,548 0 0 1 665 2 883

Other minerals subtotal 11 10,255 2 398 1 665 8 9,192


Upon closer observation of the investment details, it can be determined that the replacement of

the productive capacity corresponds to 21% of the total investment with 12 initiatives, wherein

projects y CODELCO make up 79% of this segment. Furthermore, the expansion of operations which

5 See subchapter 2.2.2, “Project type”

REPLACEMENTMMUS$ 16.219

21,0%12 projects

EXPANSIONMMUS$ 16.473

21,3%8 projects

NEWMMUS$ 44.598

57,7%22 projects


21


are currently in production reaches 21.3% of the total inversion in the portfolio with only eight

projects, wherein CODELCO again is relevant with 55.9% of this segment. In summary, the

brownfield investments of the project portfolio, replacement and expansion of current operations

reaches 42.3% of the investment portfolio with CODELCO as the principal investor.

Similarly, 22 of the 42 projects considered in the investment portfolio for 2015-2024, making up

57.7% of the portfolio´s value, correspond to new projects presented by mining companies

operating in the country as well as by 10 companies who would like to enter the Chilean mining

market with the new projects. The principal intention of the new companies and their projects are_

one for large copper mining, one for medium copper mining, three in gold mining, two in iron, two

in industrial minerals, and one metallurgical plant. These 10 initiatives make up US$ 7,438 million,

or 9.6% of the total portfolio value.

3.3. Regional Investment

The third look at the mining project portfolio is that of the regional distribution of the investment,

in copper mining as well as gold, silver, iron compounds, and industrial minerals, as shown in figure

3.

Figure 3: Total investment of the investment portfolio by regions for copper mining and others

Source: Prepared by Cochilco

As previously explained, the investment distribution by the conditionality of the projects allows to

create a realistic image of the investment portfolio, for this reason table 7 also shows the regional

distribution of the investment in copper mining according to the condition of materialization of the

projects.

6.222

32.966

11.138

1.814

8.141

504

6.249

0 5.000 10.000 15.000 20.000 25.000 30.000 35.000

Tarapacá

Antofagasta

Atacama

Coquimbo

Valparaíso

Metropolitana

O'Higgins

Inversiones en minería del cobre (MMUS$) Inversiones en minería de oro y plata (MMUS$)

Inversiones en minería del hierro y min. ind. (MMUS$)


22


Table 7: Copper mining investment per region and project condition

Region

Region Total Base Probable Possible Potential

Project Quantity

Investment (MMUS$)

% of total investment

Project Quantity

Investment (MMUS$)

Project Quantity

Investment (MMUS$)

Project Quantity

Investment (MMUS$)

Project Quantity

Investment (MMUS$)

Tarapacá 3 6,222 8.1% 0 0 2 632 0 0 1 5,590

Antofagasta 13 32,966 42.7% 8 12,891 1 1,500 3 13,575 1 5,000

Atacama 6 11,138 14.4% 0 345 3 2,757 0 146 3 7,891

Coquimbo 2 1,814 2.3% 0 0 0 0 2 1,814 0 0

Valparaíso 2 8,141 10.5% 1 1,530 0 0 1 6,611 0 0

Metropolitana 1 504 0.7% 0 276 1 112 0 117 0 0

O´Higgins 2 6,249 8.1% 2 5,899 0 0 0 350 0 0

TOTAL 31 67,035 86.7% 12 20,941 7 5,001 7 22,612 5 18,481


Copper mining, with 31 projects, makes up 86.7% of the total investments in the portfolio. Most of

these are found in Antofagasta, which, with 13 projects receives 42.7% of the total investment, of

which 8 are in base condition and only one in potential.

In second place is the Atacama region, with 6 initiatives which make up 14.4% of the total registry.

This region is the one which was most affected with respect to the previous version of the

investment register, due to the fact that a large percentage of the projects are in a potential

condition. In the investment portfolio for 2015, Atacama has 3 initiatives in the potential condition

which make up 70.8% of the total investment in copper projects in the region.

In third place we find the Valparaiso region, which receives 10.5% of the total investment in the

project portfolio, specifically the CODELCO projects “Nueva Andina Phase II” and “Mine-Plant

Transfer”, both from the Andina Division.

Sharing fourth places are the regions of Tarapacá and O´Higgins, each with 8.1% of the investment

portfolio, with initiatives coming from companies such as Teck and BHP Billiton in Tarapacá and with

the projects from El Teniente Division of CODELCO and of Valle Central of Amerigo Resources in the

case of the O´Higgins region.

Table 8 shows the regional distribution of the global investment in gold, iron, and industrial ore

mining.


23


Table 8: Investment in gold, iron and industrial ore mining, per region and project condition

Region

Region Total Base Probable Possible Potential

Project Quantity

Investment (MMUS$)

% of total investment

Project Quantity

Investment (MMUS$)

Project Quantity

Investment (MMUS$)

Project Quantity

Investment (MMUS$)

Project Quantity

Investment (MMUS$)

Antofagasta 2 1,168 1.5% - - 1 665 1 503 - -

Atacama 7 6,001 7.8% - - 3 4,540 4 1,461 - -

Coquimbo 2 3,086 4.0% 1 198 - - 1 2,888 - -

TOTAL 11 10,255 13.3% 1 198 4 5,205 6 4,852 - -


Investing in gold, iron, and industrial ore mining makes up 13.3% of the investment portfolio for

2015-2024 with 11 initiatives, concentrated mainly in 7 projects to be carried out in the Atacama

region (7.9% of the portfolio), aimed principally at gold mining (92.2% of the total regional

investment).

In Coquimbo two iron projects are being planned, one of which is on a large scale and plans to

coproduce copper, which is the case of the “Dominga” project by Andes Iron, while in Antofagasta

there are two initiatives to produce industrial minerals, one of which corresponds to a iodine and

nitrate project, carried out by Chilean investors in the region, named “Arbiodo”.

3.4. Investment by country of origin

An interesting perspective of the investments to be carried out within the next decade is to consider

the nationality of the owners of the operating companies of the projects, as well as those which only

invest in the new initiatives by participating as a primary partner. Figure 4 shows the total

investment in the portfolio, according to country of origin.


24


Figure 4: Total investment in the investment portfolio by country of origin (MMUS$ y %)


Investments come from 8 countries, led by Chile with 60% of total participation, coming from

companies such as Codelco and Antofagasta Minerals in state and private copper mining, Pucobre

and Copec in medium mining, as well as distinct international investments in gold, iron, and

industrial ore mining. In second place we find Canada, with a 21.4% participation, from emblematic

companies such as Teck Resources, Lundin Mining (who just acquired Candelaria), Kinross, Capstone

and the Santo Domingo project, Barrick Gold and other companies focused on investing in medium

copper mining and that of industrial minerals.

For a more detailed account, in Table 9 the distribution of investments in copper mine is shown for

each country and the total participation in the investment in mining is considered in the registry, all

contrasted with the conditionality of the investments.

MMUS$ 45.48958,9%

MMUS$ 16.20621,0%

MMUS$ 7.0329,1%

MMUS$ 2.9303,8%

MMUS$ 2.8293,7%

MMUS$ 1.3161,7%

MMUS$ 8251,1%

MMUS$ 5730,7%

Chile

Canadá

Australia

EE.UU.

Japón

Reino Unido

Polonia

Corea

Canada

United States

Japan

United Kingdom

Poland

Korea


25


Table 9: Distribution of the investment in copper mining per country of origin and condition (MMUS$)

Country of origin

Country total % of the

total investment

Base Probable Possible Potential

Chile 41,500 53.69% 15,551 658 18,836 6,455

Canada 10,612 13.73% 152 1,684 0 8,776

Australia 6,882 8.90% 2,414 467 3,300 700

USA 2,550 3.30% 0 0 0 2,550

Japan 2,777 3.59% 1,500 800 476 0

United Kingdom 1,316 1.70% 1,260 56 0 0

Poland 825 1.07% 0 825 0 0

Korea 573 0.74% 63 510 0 0

TOTAL 65,535 86.5% 20,941 5,001 22,612 18,481


The prior Assessment is replicated for the different mineral projects other than copper in table 10.

Table 10: Investment in gold, iron, and industrial ore mining, by country of origin and condition (MMUS$)

Country of origin

Country total % of the

total investment

Base Probable Possible Potential

Chile 3,989 5.16% 160 438 3,391 0

Canada 5,593 7.24% 0 4,663 931 0

USA 380 0.49% 0 380 0 0

Australia 150 0.19% 0 0 150 0

China 90 0.12% 0 90 0 0

Japan 52 0.07% 38 14 0 0

TOTAL 10,255 13.3% 198 5,585 4,472 0



26


4. Estimation of the yearly investment distribution in the project portfolio

The estimation of the investment flow in the 2015-2024 project portfolio allows for the observation

of the short and medium term progress in the mining investment, in the amount that emerged

before 2015, US$ 15,415 million, which corresponds to 19.9% of the current portfolio, the

investment to be obtained during the next five-year period from 2015-2019 of US$44,894 million,

equaling 58.1% of the portfolio, and the estimate of the remaining amount to be invested in the

2020-2024 period in those projects whose implementation date is set for this time frame, whose

investment amount reaches US$16,981 million, equaling 22% of the investment portfolio.

Figure 5 graphs the yearly investment distribution in copper mining, and of the other minerals in the

2015 to 2024 period, separated by those already obtained, the yearly amounts for the 2015-2019

period, and finally the remnant to be invested after 2019.

Figure 5: Yearly investments, already obtained and to be obtained, for the investment portfolio according

to type of mining


However, it is necessary to look at the conditionality of the investment flow, for which, and on the

basis of available public information, a yearly investment profile has been estimated according to

the anticipated timeline, and has been assigned a condition which reflects the degree of certainty

of the implementation for each project.

4.1. Investment distribution in copper mining

Table 11 summarizes the yearly investment flow in coper mining for the following segments:

CODELCO; large private mining, medium mining, and metallurgical plants, distribution of the

0

2.000

4.000

6.000

8.000

10.000

12.000

14.000

16.000

18.000

Anterior a2015

2015 2016 2017 2018 2019 2020- 2024

MM

US$

Cobre Otros mineralesCoppe

r


27


investment from degrees of greater to lesser certainty of implementation within the period

indicated by the companies which own the projects, meaning, from the base condition to potential.

Table 11: Yearly investment distribution in copper mining according to project condition (MMUS$)

Copper mining according to condition

Before 2015

2015 2016 2017 2018 2019 Subtotal

2015 -2019 2020 - 2024 TOTAL

% of investment

TOTAL 10,800 5,380 7,695 8,515 9,377 8,288 39,254 16,981 67,035 100%

Of which:

Base 8,576 3,154 2,136 2,211 1,840 2,027 11,368 997 20,941 31%

Probable 775 663 1,004 829 266 0 2,762 0 3,501 7%

Possible 854 1,003 2,417 3,157 4,027 3,118 13,721 8,037 22,612 34%

Potential 595 311 1,138 2,103 3,244 3,143 9,939 7,947 18,481 28%

CODELCO 2,308 2,099 3,202 3,766 3,601 4,138 16,805 9,542 28,656 100%

of which:

Base 2,168 1,540 2,069 2,175 1,840 2,027 9,651 997 12,817 45%

Probable 0 0 0 0 0 0 0 0 0 0%

Possible 130 526 1,085 1,398 1,532 1,738 6,278 6,740 13,148 46%

Potential 10 33 48 193 229 373 876 1,805 2,691 9%

Large mining 7,824 2,935 3,833 3,851 5,539 4,150 20,522 7,439 35,785 100%

Of which:

Base 6,002 1,444 6 0 0 0 1,450 0 7,451 22%

Probable 705 823 1,825 847 204 0 3,699 0 4,404 12%

Possible 582 415 1,022 1,649 2,495 1,380 6,961 1,297 8,840 25%

Potential 535 253 980 1,570 2,840 2,770 8,413 6,142 15,090 42%

Medium mining 278 232 644 683 237 0 1,795 0 2,073 100%

Of which:

Base 16 55 45 36 0 0 136 0 152 7%

Probable 70 90 179 197 62 0 527 0 597 29%

Possible 142 62 310 110 0 0 482 0 624 30%

Potential 50 25 110 340 175 0 650 0 700 34%

Metallurgy Plants 390 115 16 0 0 0 131 0 521 100%

Of which:

Base 390 115 16 0 0 0 131 0 521 100%


Discounting the US$ 10,800 million invested before 2015, the investment with possibilities of

implementation within the 2015 and 2024 period in copper mining reaches US$ 56,200 million, of

which US$ 39.9 million will be reached in the five year period from 2015 - 2019.

Analyzing the initiatives with the greatest probability of development within the timeframes

estimated by their owners, these corresponds to 38% of the investment to be implemented within

the next five years. Of this group, the projects in base condition make up 25.4% of the investment

to be obtained between 2015 and 2019, with a yearly average of 2.28 thousand million USD, leaving

an investment remained of less than one thousand million for after 2019, while the initiatives in a


28


probable condition only make up a yearly average of around US$ 1.06 thousand million, which

corresponds to just 7% of the financing to be obtained in the short term, specifically between 2015

and 2018.

Conversely, the projects with a lesser probability of being implemented within the proposed

timeframes correspond to 62% of the investment between 2015 and 2019, leaving a remnant of

almost US$ 16 thousand million for after 2019. In this group, the projects in possible condition

correspond to 34% of the investment in the five year period, contributing a yearly average of US$

2.7 thousand million, leaving a remnant of US$ 8.04 thousand million for later execution.

Furthermore, and unlike the previous register wherein the potential group made up the greatest

investment to be implemented in the five year period, this year these projects reach just 28% of the

total estimated for the next five years, supplying an average of US$ 1.99 thousand million, and

leaving an investment remnant for the 2020-2024 period of around US$ 7.95 thousand million

dollars.

4.2. Investment distribution in gold, iron, and industrial minerals

Table 12 summarizes the annual investment in the gold, iron and industrial ore mining segments:

Table 12: Yearly investment distribution in gold, iron, and industrial minerals according to condition (MMUS$)

Gold-silver, iron, and industrial minerals

according to condition

Before 2015

2015 2016 2017 2018 2019 Subtotal

2015 -2019 2020 - 2024

TOTAL % of

investment

TOTAL 4,615 628 1,903 1,575 1,280 254 5,640 0 10,255 100.0%

Of which:

Base 178 20 0 0 0 0 20 0 198 3.6%

Probable 3,237 478 1,095 640 135 0 2,348 0 5,585 101.0%

Possible 1,200 130 808 935 1,145 254 3,272 0 4,472 80.9%

Gold 3,283 420 1,003 675 150 0 2,248 0 5,531 100.0%

Of which:

Probable 3,025 360 720 290 55 0 1,425 0 4,450 80.5%

Possible 258 60 283 385 95 0 823 0 1,081 19.5%

Iron 1,144 83 205 440 1,050 254 2,032 0 3,176 100.0%

Of which:

Base 178 20 0 0 0 0 20 0 198 6.2%

Probable 42 23 25 0 0 0 48 0 90 2.8%

Possible 924 40 180 440 1,050 254 1,964 0 2,888 90.9%

Industrial minerals 188 125 695 460 80 0 1,360 0 1,548 100.0%

Of which:

Probable 170 95 350 350 80 0 875 0 1,045 32.9%

Possible 18 30 345 110 0 0 485 0 503 32.5%



29


In gold mining, in investment in 5 projects for 5.5 thousand million dollars is expected, which is

concentrated in the probable condition, to be carried out before 2019. Furthermore, it is estimated

that the yearly average investment in the gold project portfolio reach 508 million dollars in the 2015-

2018 period.

For iron mining as well as industrial minerals there are no relevant variations in the investment

distribution seen.


30


5. Estimation of the copper production capacity in Chile through 20266

One of the most important effects coming from the mining investment portfolio is the increase in

the maximum production capacity, which translates to an increase in supply for the international

market.

Following is an estimate of the maximum copper production capacity which Chile could reach by

2026, as a result of the work in the current Operations and the contributions which will be added as

the new copper projects are implemented.

5.1. Maximum copper mining capacity in Chile

The maximum productive potential of copper mining in Chile is summarized in Table 13, which

indicates the yearly information from 2015 to 2026, broken down into operations and projects

according to their conditionality, as an indicator of the degree of reliability of this information. The

real production in 2014 is included as a means of reference and comparison. Additionally, the

percentage of yearly variation in the maximum capacity of total production is indicated.

Considering a horizon of 20267, Chile has the potential of reaching a copper production capacity of

7.56 million tons of copper, a 31.6% above the production registered in 2014, if all of the planned

projects are carried out according to their timelines. The maximum production would be registered

for this period during 2024, wherein the copper production would reach approximately 7.84 million

tons, 36.3% over 2014 production.

Table 13: Estimated production capacity of copper mining in Chile through 2026 (kt of fine Cu)8

CONDITION 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

BASE/ Operations 5,749.5 5,980.8 5.676.7 5,567.2 5,412.0 5,337.9 4,956.3 4,742.6 4,554.2 4,401.0 4,254.0 3,986.7 3,811.5

BASE/ Projects 0,0 359.1 585.8 737.3 748.4 768.7 797.5 907.1 1,000.8 1,139.6 1,190.0 1,255.0 1,270.0

PROBABLE/ Projects 0,0 0,0 0,0 217.6 430.9 479.3 463.8 444.9 435.4 414.0 393.7 314.3 302.0

POSSIBLE/ Projects Cu 0,0 0,0 0,0 18.7 51.9 375.0 546.1 632.2 650.9 770.8 942.4 1,136.4 1,227.8

POSSIBLE/ Projects Co-prod. 0,0 0,0 0,0 0,0 9.0 16.5 18.0 19.0 17.0 20.0 32,0 22.0 21.0

POTENTIAL/ Projects Cu 0,0 0,0 0,0 0,0 25.9 152.5 292.2 651.3 804.3 989.8 1,025.6 963.0 931.4

TOTAL 5,749.5 6,339.8 6,262.5 6,540.8 6,678.0 7,129.8 7,074.0 7,397.2 7,462.6 7,735.2 7,837.8 7,677.5 7,563.8

Yearly change --- 10.3% -1.2% 4.4% 2.1% 6.8% -0.8% 4.6% 0.9% 3.7% 1.3% -2.0% -1.5%


6 Copper mining production capacity corresponds to concentrates and SxEw cathodes. The methodologic criteria used to

estimate is shown in point 2.6

7 Two years after the last year of implementation registered in this registry (see methodologic criteria shown in point 2.6)

8 Includes the by-productive capacity of copper coming from the gold and iron projects.


31


This projection considers the natural declination in production of the current operations in 1.94

million tons, for which the greatest contribution corresponds to the impact in the investment in the

projects, which depend on distinct factors internally as well as externally to reach the productive

goals, which is determined through the conditionality of the projects.

The following graph shows how the copper production will evolve and the growing importance of

the contribution of the projects, to increase national productive capacity according to the condition

of these.

Figure 1: Maximum copper production capacity according to condition


The total estimate for the production capacity of the copper mining is distributed through the

respective copper production capacities in concentrates and in SxEw cathodes, which are shown in

tables 14 and 15 as follows.

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

9.000

Tho

usa

nd

s o

f to

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of

fin

e c

op

pe

r

Base Probable Posible Potencial


32


Table 14: Estimated Chilean production capacity of fine copper concentrate through 2026 (kt of fine Cu)

CONDITION 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

BASE/ Operations 3,905.6 4,214.3 4,010.6 3,952.0 3,888.0 3,874.7 3,727.8 3,624.3 3,449.1 3,305.2 3,246.8 3,109.7 3,117.4

BASE/ Projects 0,0 325.7 487.0 620.8 626.2 645.6 674.7 783.8 882.2 1,023.6 1,112.6 1,178.0 1,193.4


POSSIBLE/ Projects Cu 0,0 0,0 0,0 18.7 47.9 369.6 539.5 625.9 644.6 764.5 936.1 1,130.1 1,221.7

POSSIBLE/ Projects Coprod. 0,0 0,0 0,0 0,0 9.0 16.5 18.0 19.0 17.0 20.0 32.0 22.0 21.0

POTENTIAL/ Projects Cu 0,0 0,0 0,0 0,0 25.9 152.5 292.2 651.3 804.3 989.8 1,025.6 963.0 931.4

TOTAL 3,905.6 4,540.1 4,497.6 4,712.7 4,917.2 5,421.0 5,598.9 6,036.5 6,119.8 6,404.4 6,643.6 6,672.9 6,746.9

Yearly Change --- 16.2% -0.9% 4.8% 4.3% 10.2% 3.3% 7.8% 1.4% 4.7% 3.7% 0.4% 1.1%


Table 15: Estimated Chilean production capacity for fine copper in SxEw cathodes through 2026 (Thousand tons.)

CONDITION 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

BASE/ Operations 1,843.9 1,766.4 1,666.1 1,615.3 1,524.0 1,463.2 1,228.5 1,118.3 1,105.0 1,095.8 1,007.2 877.1 69.1

BASE/ Projects 0,0 33,3 98.8 116.4 122.2 123.0 122.8 123.2 118.6 116.0 77.4 77.0 76.6


POSSIBLE/ Projects 0,0 0,0 0,0 0,0 4.0 5.4 6.5 6.3 6.3 6.3 6.3 6.3 6.1

TOTAL 1,843.9 1,799.8 1,764.9 1,828.1 1,760.8 1,708.9 1,475.1 1,360.7 1,342.8 1,330.8 1,194.2 1,004.5 816.9

Yearly Change --- -2.4% -1.9% 3.6% -3.7% -3.0% -13.7% -7.8% -1.3% -0.9% -10.3% -15.9% -18.7%


In each table there is an opposing trend. While the production capacity in concentrates increments

by 2.84 million tons by 2026, a 70.9% increase from 2014, the SxEw cathodes may decrease by 1.03

million tons, registering a 55.7% decrease from the same year.

5.1.1. Analysis of hydrometallurgy production

The hydrometallurgical processing of copper into SxEw cathodes shows in the last decade strong

signs of decline since its peak in 2009, when it reached 2.12 million tons. The production of SxEw

cathodes will be maintained at about 1.8 million tons until 2017, to then decline rapidly by a yearly

average rate of 7.7% in the following ten years, reaching a production loss of 1.03 million tons of

SxEw cathodes (figure 6).

This decrease in SxEw cathode production is due mainly to the depletion of leachable resources and

the closing of some copper sites towards the end of the next decade, for example, Collahuasi,

Sagasca, Quebrada Blanca, Mantos Blancos, Michilla, Las Cenizas, Franke, Mantoverde and Carmen

de Andacollo. Likewise, it is observed that some of the operations of CODELCO, such as


33


Chuquicamata (Hidrosur), Radomiro Tomic and Salvador, will reduce their production due to the

depletion of leachable resources.

With respect to the hydrometallurgy projects considered in this portfolio, these principally

correspond to replacement projects and of marginal expansions of current operations, and of four

new projects: El Espino, Diego de Almagro and the production of oxides coming from the operations

of Distrito Centinela, by Antofagasta Minerals, and of Sierra Gorda, property of KGHM. There are

not currently any potential projects for the hydrometallurgy line.

This operational decrease has a direct effect in a lesser demand for sulphuric acid, which will cause

a change in the sulphuric acid market in Chile from the condition of structural deficit to an incipient

condition of excess by the year 2019. It is worth mentioning that the structural change in the

sulphuric market will have negative implications in the importation and exportation structure of this

good in the country, as an excess would force producers to export the excess acid, with the following

negative implication in the prices of this good.

Another impact is the closing of several solvent or electro-winning extraction plants, with no

alternative use.

Figure 6: Projection of maximum copper production in cathodes, 2014 – 2026 period


0

200

400

600

800

1.000

1.200

1.400

1.600

1.800

2.000

Tho

usa

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to

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of

cop

pe

r in

SxE

w c

ath

od

es

Posible

Probable

Base

Possible

Probable

Base


34


5.1.2. Analysis of concentrate production

The project portfolio for 2015-2024 reaffirms that which has been observed in the past few years:

the structural change in copper production turns toward copper concentrate production, due to

diverse factors such as the geologic conditions of the country, the production changes from old

hydrometallurgical operations, etc. This will cause an increase in the maximum production capacity

of copper concentrate by 2.84 million tons of fine copper per year by 2026. With this the projected

decline will be surpassed from the current operations, without whose projects in development,

would decrease production by 788 thousand tons of fine copper with respects to 2014.

This substantial increase in production which comes from the concentrate line has strong

repercussions in two important aspects of the mining politics in general, which are the increase of

the exportable supply of concentrates, without increasing the current production of ER cathodes,

and the structural increase of costs in Chilean mining coming from the levels of mineral processing

which this type of processing increase brings.


a) Exportable concentrate offer from Chile

In 2014 2.55 million tons of copper concentrate were exported, equaling 65.3% of the concentrate

production of the country, the rest should be understood to have been consumed in the Chilean

foundries. Even though the production of the foundries reached 1.36 million tons of fine copper in

2014, previous years reached levels around 1.56 million tons of fine copper, which means that there

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

Tho

usa

nd

to

ns

of

fin

e co

pp

er c

on

cen

trat

e

Potencial

Posible

Probable

Base

Figure 7: Maximum production projection in copper concentrate, period 2014 - 2026

Potential

Possible

Probable

Base


35


is the capacity of treating the equivalent of 1.6 million tons of fine copper content in the feeder

concentrates, due to the capacity expansion projects not being considered for the national

foundries9.

Toward 2026, the maximum copper production capacity in concentrates will reach 6.75 million tons,

reaching 89% of the national copper production participation. However, under the premise that no

FURE projects were to exist in the country, this increase in concentrate production would imply that

the potential exportation of concentrates would reach 5.2 million tons, or76.9% of the total Chilean

concentrate production.


Likewise, it is estimated that the volume of concentrates with copper concentrates will pass the

current 13.3 million tons, with an average ore grade of 29.2% copper, to 23.8 million tons, with the

average ore grade of 24.1$. Similarly, the volume of concentrates for exportation would surpass the

current8.67 million tons to almost double by 2026, reaching 17.26 million tons.

9 Only operational adjustments are expected to be required to comply with the gas emission requirements

(SO2 and others).

Figure 8: Copper concentrate production and the participation in total production

68%72% 72% 72% 74%

76%79%

82% 82% 83% 85% 87% 89%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

9.000

10.000

Tho

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of

fin

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pp

er in

co

nce

ntr

ate

Cobre en concentrados a FURE externa

Cobre en concentrados a FURE nacional

Part. de la prod. de cobre en concentrados en la prod. total del país

Copper concentrates to external FURE Copper concentrates to national FURE Part of copper concentrate production in the country’s total prod.


36


Figure 9: Projection of maximum production of copper concentrates according to destination, 2014 – 2026 period


This strong growth in concentrate production could affect the position of the exporters in the

negotiations for the costs of treatment and refining, affecting the liquid value of the return, and the

tributary utilities of the companies, leaving Chile with a lesser participation in the refined copper

business on a worldwide level.

Another problem related with this increase in concentrate production is the production of tailings

coming from the concentrating plants. Therefore it is estimated that if during 2014 563.5 Mt of

tailings were produced, by 2026 an increase of 121.8% will produced more per year, reaching

1,249.7 Mt of tailings (figure 10).

0,0

5,0

10,0

15,0

20,0

25,0

Mill

ion

to

ns

of

con

cen

trat

e

Concentrados a FURE nacional Concentrados a FURE externaConcentrates to national FURE Concentrates to external FURE


37


Figure 10: Projection of maximum tailings production as a result of the copper concentration process, 2014 - 2026


b) Increase in processing levels and tailings generation

Adding to the natural decline of operational parameters in the existing sites it must be considered

that there are lower grades in the new projects to be carried out within the next decade, which

implies that the mining extraction capacity and of the concentration plants must be of a large size.

Figure 11 shows the projected yearly mineral treatment capacity in the concentration plants which

are currently in operation, as well as the contribution of the projects are they are implemented

according to what is anticipated from the available information.


0

100

200

300

400

500

600

700

800

900

1.000

1.100

1.200

1.300

Mill

ion

to

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of

taili

ngs

Base Probable Posible PotencialBase Probable Possible Potential


38


Taking this data and comparing it with the fine copper contained in the concentrate to be produced

within the next decade, an unfavorable tendency is shown starting in 2015. With a yearly growth

rate of 3.4% of fine copper obtainable between the years of 2015 and 2026, the growth rate of the

ore treatment would be of 5.6% yearly, from 576.9 million tons of mineral treated in 2014 to an

estimated 1,273.5 million tons of ore to be treated by 2026 (figure 12).

Figure 11: Processing capacity in copper concentrating plants through 2026

0,0

200,0

400,0

600,0

800,0

1.000,0

1.200,0

1.400,0

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Mill

ion

to

ns

of

sulp

he

red

min

era

ls

POTENCIAL

POSIBLE

PROBABLE

BASE

POTENTIAL

POSSIBLE

PROBABLE

BASE


39


Figure 12: Relationship between treated mineral and fine copper content in produced concentrate


Direct consequences of this structural situation, which signifies a greater quantity of material to be

extracted:

a. Greater capital investment and operation costs.

b. Greater consumption intensity per unit of copper recovered.

c. Greater consumption of water and other inputs depending more on the volume of the

material to be treated than the copper content.

Furthermore, several of the concentrate projects are considering the use of sea water, with or

without desalination, as well as the impulsion system to the place of operations. For this concept

the capital costs would also rise for the required installations and the operation, because of the

electricity consumed. This last also requires a clear policy to define the correct manner to introduce

this new “hydrological market” in the country.

In summary, if currently 10,849 tpd are produced of fine copper concentrate, as a product of the

processing of 1.60 Mtpd of tailings (amounts from 2014), the copper mining project portfolio for

2015-2024 will increase the fine copper concentrate to 18,741 tpd, the product of the processing of

around 3.54 Mtpd of minerals in the concentration plants, which will generate around 3.47 Mtpd of

tailings toward 2026. This signifies an increase in daily treatment and tailings generation of close to

121% only to increase the daily copper production by 32%.

0

200

400

600

800

1.000

1.200

1.400

0

2

4

6

8

10

12

14

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Mt

of

sulp

hu

red

ore

Mt

of

fin

e c

op

pe

r in

co

nce

ntr

ate

Producción de cobre fino en concentrados Mineral procesado en planta concentradoraProduction of fine copper concentrate Processed Mineral in concentration plant


40


5.2. Maximum production capacity of copper mines per region

As well as observing the global behavior of copper production in the country, it is necessary to look

at how it is manifested on a regional level, where the investment process has an economic impact

which is prolonged after the product of the investment is transformed into operations. The

magnitude and use of the maximum production capacity is what generates the long term effect on

the activities directly related with the mining, and very importantly, in the diversity of the activities

indirectly provided of goods and services which is very relevant to the region where it is carried out.

The following tables show the production capacity estimates of copper mining corresponding to

each productive region, breaking them down for the respective profiles of maximum concentrates

and SxEw cathodes.

Table 16: Maximum regional productive capacity of copper mines in Chile through 2026 (thousands of tons of fine copper)

REGION 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

XV. Arica-Parinacota 2.0 4.7 5.8 5.8 5.8 5.3 5.3 5.3 4.9 4.9 4.9 4.8 2.3

Operations 2.0 4.7 5.8 5.8 5.8 5.3 5.3 5.3 4.9 4.9 4.9 4.8 2.3

Projects 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

I. Tarapacá 608.0 668.7 663.4 661.0 656.6 720.3 728.3 769.1 769.1 753.1 735.5 664.8 657.7

Operations 608.0 668.7 663.4 584.5 580.1 534.5 485.7 473.5 473.5 461.6 461.6 450.0 450.0

Projects 0.0 0.0 0.0 76.5 76.5 185.8 242.6 295.6 295.6 291.5 273.9 214.8 207.8

II. Antofagasta 3,047.6 3,458.4 3,330.0 3,565.0 3,490.3 3,828.9 3,796.3 3,998.1 4,020.3 4,215.6 4,190.4 3,947.4 3,837.9

Operations 3,047.6 3,108.1 2.765.6 2,757.0 2,621.5 2,592.6 2,372.2 2,205.0 2,045.9 1,980.5 1,897.0 1,696.1 1,600.4

Projects 0.0 350.4 564.4 808.0 868.9 1,236.4 1,424.0 1,793.2 1,974.4 2,235.1 2,293.3 2,251.3 2,237.4

III. Atacama 430.8 538.0 560.3 606.6 793.0 837.8 809.6 894.2 928.9 1,013.7 1,061.0 992.2 980.7

Operations 430.8 538.0 560.3 564.8 561.9 585.6 489.9 470.6 456.0 438.0 424.2 409.6 398.9

Projects 0.0 0.0 0.0 41.7 231.2 252.2 319.7 423.6 473.0 575.7 636.8 582.6 581.8

IV. Coquimbo 493.2 485.2 491.2 503.7 550.9 570.3 573.0 566.3 564.3 560.2 573.0 555.6 554.4

Operations 493.2 485.2 491.2 484.9 490.0 481.9 472.1 466.6 466.5 461.0 460.9 454.8 454.8

Projects 0.0 0.0 0.0 18.7 60.9 88.4 100.8 99.8 97.8 99.2 112.1 100.8 99.6

V. Valparaíso 290.2 278.7 288.5 283.6 275.4 265.6 271.4 269.5 289.3 302.5 407.3 647.6 669.5

Operations 290.2 278.7 288.5 283.6 275.4 265.6 271.4 269.5 289.3 302.5 319.3 336.7 315.5

Projects 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 88.0 310.9 354.0

XIII. Metropolitana 404.5 434.6 434.2 429.2 428.7 423.6 423.7 418.7 418.2 413.4 393.8 389.5 389.2

Operations 404.5 434.6 434.2 429.2 428.7 423.6 423.7 418.7 418.2 413.4 393.8 389.5 389.2

Projects 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

VI. O'Higgins 473.1 471.5 489.1 486.0 477.2 478.0 466.4 475.8 467.5 471.8 471.9 475.6 472.1

Operations 473.1 462.8 467.6 457.3 448.6 448.9 436.0 433.4 399.8 339.1 292.3 245.3 200.5

Projects 0.0 8.7 21.4 28.7 28.7 29.1 30.4 42.4 67.7 132.7 179.6 230.3 271.6

TOTAL 5,749.5 6,339.8 6,262.5 6,540.8 6,678.0 7,129.8 7,074.0 7,397.2 7,462.6 7,735.2 7,837.8 7,677.5 7,563.8

Operations 5,749.5 5,980.8 5,676.7 5,567.2 5,412.0 5,337.9 4,956.3 4,742.6 4,554.2 4,401.0 4,254.0 3,986.7 3,811.5

Projects 0.0 359.1 585.8 973.6 1,266.0 1,791.9 2,117.6 2,654.5 2,908.5 3,334.2 3,583.8 3,690.7 3,752.2



41


Table 17: Maximum regional productive capacity of fine copper concentrates by2026 (Thousands of tons)

REGION 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026


Operations 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Projects 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

I. Tarapacá 445.4 511.1 511.1 498.2 498.2 599.3 656.1 700.7 700.7 684.7 676.4 664.8 657.7

Operations 445.4 511.1 511.1 498.2 498.2 485.7 485.7 473.5 473.5 461.6 461.6 450.0 450.0

Projects 0.0 0.0 0.0 0.0 0.0 113.6 170.4 227.2 227.2 223.1 214.8 214.8 207.8

II. Antofagasta 1,558.9 2,028.2 1,922.7 2,111.2 2,107.2 2,465.9 2,553.7 2,863.9 2,898.7 3,097.9 3,176.7 3,057.4 3.,27.9

Operations 1,558.9 1,711.2 1,457.1 1,439.6 1,390.6 1,392.6 1,292.6 1,234.0 1,083.0 1,018.8 1,000.8 923.0 1,007.0

Projects 0.0 317.0 465.6 671.6 716.6 1,073.3 1,261.2 1,630.0 1,815.8 2,079.1 2,175.9 2,134.3 2,120.8

III. Atacama 309.1 412.9 441.8 480.4 667.4 704.3 731.8 817.7 856.5 948.7 999.3 934.5 927.5

Operations 309.1 412.9 441.8 438.6 440.4 457.1 417.1 398.6 388.0 377.2 366.7 356.1 345.7

Projects 0.0 0.0 0.0 41.7 227.0 247.2 314.7 419.2 468.5 571.5 632.6 578.4 581.8

IV. Coquimbo 477.8 466.9 473.6 486.7 524.8 545.4 556.7 550.3 548.3 544.4 557.2 540.6 539.6

Operations 477.8 466.9 473.6 468.0 468.0 462.4 462.4 456.9 456.9 451.5 451.5 446.1 446.1

Projects 0.0 0.0 0.0 18.7 56.9 83.0 94.3 93.5 91.5 92.9 105.8 94.5 93.5

V. Valparaíso 274.9 264.3 274.3 269.6 261.6 252.0 258.0 256.3 276.3 289.7 394.7 637.1 659.1

Operations 274.9 264.3 274.3 269.6 261.6 252.0 258.0 256.3 276.3 289.7 306.7 326.2 305.1

Projects 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 88.0 310.9 354.0


Operations 368.3 387.2 387.2 382.6 382.6 378.1 378.1 373.7 373.7 369.3 369.3 364.9 364.9

Projects 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

VI. O'Higgins 471.3 469.5 487.1 484.0 475.2 476.0 464.4 473.8 465.5 469.8 469.9 473.6 470.1

Operations 471.3 460.8 465.6 455.3 446.6 446.9 434.0 431.4 397.8 337.1 290.3 243.3 198.5

Projects 0.0 8.7 21.4 28.7 28.7 29.1 30.4 42.4 67.7 132.7 179.6 230.3 271.6

TOTAL 3,905.6 4,540.1 4,497.6 4,712.7 4,917.2 5,421.0 5,598.9 6,036.5 6,119.8 6,404.4 6,643.6 6,672.9 6,746.9

Operations 3,905.6 4,214.3 4,010.6 3,952.0 3,888.0 3,874.7 3,727.8 3,624.3 3,449.1 3,305.2 3,246.8 3,109.7 3,117.4

Projects 0.0 325.7 487.0 760.7 1,029.2 1,546.2 1,871.0 2,412.1 2,670.7 3,099.2 3,396.7 3,563.3 3,629.5



42


Table 18: Maximum regional productive capacity of fine copper in SxEw cathodes by 2026 (Thousands of tons)

REGION 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026


Operations 2.0 4.7 5.8 5.8 5.8 5.3 5.3 5.3 4.9 4.9 4.9 4.8 2.3

Projects 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

I. Tarapacá 162.6 157.6 152.3 162.8 158.4 121.0 72.2 68.4 68.4 68.4 59.1 0.0 0.0

Operations 162.6 157.6 152.3 86.3 81.9 48.8 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Projects 0.0 0.0 0.0 76.5 76.5 72.2 72.2 68.4 68.4 68.4 59.1 0.0 0.0

II. Antofagasta 1,488.7 1,430.2 1,407.3 1,453.8 1,383.1 1,363.1 1,242.5 1,134.2 1,121.6 1,117.7 1,013.6 890.1 710.0

Operations 1,488.7 1,396.9 1,308.5 1,317.4 1,230.9 1,200.0 1,079.7 971.0 963.0 961.7 896.3 773.1 593.4

Projects 0.0 33.3 98.8 136.4 152.2 163.0 162.8 163.2 158.6 156.0 117.4 117.0 116.6

III. Atacama 121.7 125.1 118.6 126.2 125.6 133.4 77.9 76.5 72.4 65.0 61.7 57.7 53.2

Operations 121.7 125.1 118.6 126.2 121.4 128.4 72.9 72.1 68.0 60.8 57.5 53.5 53.2

Projects 0.0 0.0 0.0 0.0 4.2 5.0 5.0 4.4 4.4 4.3 4.3 4.2 0.0

IV. Coquimbo 15.5 18.3 17.6 17.0 26.1 24.9 16.3 16.0 15.9 15.9 15.8 15.0 14.8

Operations 15.5 18.3 17.6 17.0 22.1 19.5 9.7 9.7 9.6 9.5 9.5 8.7 8.6

Projects 0.0 0.0 0.0 0.0 4.0 5.4 6.5 6.3 6.3 6.3 6.3 6.3 6.1

V. Valparaíso 15.3 14.4 14.2 14.0 13.8 13.6 13.4 13.2 13.0 12.8 12.6 10.5 10.3

Operations 15.3 14.4 14.2 14.0 13.8 13.6 13.4 13.2 13.0 12.8 12.6 10.5 10.3

Projects 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0


Operations 36.2 47.5 47.1 46.5 46.0 45.5 45.5 45.1 44.6 44.1 24.5 24.6 24.3

Projects 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

VI. O'Higgins 1.8 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0

Operations 1.8 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0

Projects 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

TOTAL 1,843.9 1,799.8 1,764.9 1,828.1 1,760.8 1,708.9 1,475.1 1,360.7 1,342.8 1,330.8 1,194.2 1,004.5 816.9

Operations 1,843.9 1,766.4 1,666.1 1,615.3 1,524.0 1,463.2 1,228.5 1,118.3 1,105.0 1,095.8 1,007.2 877.1 694.1

Projects 0.0 33.3 98.8 212.9 236.9 245.7 246.6 242.4 237.8 235.0 187.0 127.5 122.7


Antofagasta, maintains the leadership of copper production, making up 50.7% of the maximum

production expected by 2026. Even though the production of concentrates will increase by 100.6%,

this will only create an net increase of 50.7%, affected by the loss seen of 778.7 thousand tons of

SxEw cathodes, equaling -52.3% of the production from 2014.

Atacama will maintain the second place in copper production, with a high level of production

increase which will be raised specifically by an increase of almost 200%, coming not only from the

copper production initiatives, but also from the coproduction of the projects of gold and iron mining,

which would leave available a capacity of 980 thousand tons of fine copper, over the 430.8 thousand

tons produced in 2014. As in the Antofagasta region, the productive increase in concentrate will

help to reduce the productive loss coming from the hydrometallurgical operations, which will fall by

-56.3% by 2026. Furthermore, this region is affected by situations which will slow the development

of the projects, even more if we consider that the greater part of the projects from this region have


43


a lesser probability of implementation within the time frames estimated by the companies (possible

and potential).

Valparaiso, in this report, displaces Tarapacá as the third most important region, for two important

motives. The first is due to Tarapacá suffering a strong decline in production towards 2024 where

four of the most important hydrometallurgical operations, Cerro Colorado, Quebrada Blanca,

Collahuasi, and Sagasca, stop operating, thereby losing almost 163 thousand tons of fine copper,

some of which are slightly recovered by the sulphuric operations of Collahuasi and the Quebrada

Blanca Hipógeno project. Tarapacá, the third most important, bases the productive development

on the potential expansion of Collahuasi, however if it is not completed within the time frame, the

region will see the copper production capacity drastically reduced.

The second reason that it has passed the third place of productive growth to the region of Valparaíso

is the implementation within the period of the expansion of Andina, with which it will increase the

production level from 290.2 thousand tons of fine copper registered in 2014 to 669.5 thousand tons

by 2026, creating an increase of 130.7%, which is the greatest regional increase during the period,

and slightly higher than the increase of Atacama.

Coquimbo will remain in fifth place, with contributions from El Espino, Domingo and the expansion

Marginal of Los Pelambres. Likewise, O´Higgins will remain in the sixth place for growth, due to the

increase in production foreseen with the implementation of the “Nuevo Nivel Mina” in El Teniente,

and the Metropolitan region remains with a relatively stable production because of the contribution

to the Los Bronces -- Phase VII project.

Finally we can deduce that the mining investment will diminish in the northern zone of the country,

and stepping up in the center-south zone with the following offsetting of the productive increases

to this zone.

5.3. Global estimate of production capacity of other minerals

The estimate of the contribution to the maximum production capacity thought 2026 for mineral

substances such as gold, silver, molybdenum, iron and industrial minerals will only be done on a

global level, and not yearly, different from what has been shown previously in the projections of

copper production.

For gold, molybdenum, and iron, the maximum production capacity is shown, according to the

background information of the compiled projects, comparing the current situation with respects to

the possible scenario toward 2026. In the case of silver, for being a co-product which depends on

the gold mining activities, only the maximum estimated production of the country will be seen for

each project, and the possible contribution to the maximum production capacity of the country once

the projects being their operations. For industrial minerals only the contributions for each project

considered in this portfolio will be shown.


44


5.3.1. Gold and silver production capacity

The summary of the contribution of the projects to the portfolio to the maximum production

capacity for gold and silver, respectively, is observed in table 19.

Table 19: Contribution to maximum production capacity of gold and silver according to project

PROJECT CONTROLLER IMPLEMENTATION

MAX. PRODUCTION

Gold (Kg Au

content)

Silver (ton Ag

content)

Gold mining (primary production reposition)

La Coipa Fase 7 Compañía Minera Mantos de Oro 2017 6,220 ---

Gold Mining (primary production additional)

Nueva Esperanza - Arqueros Laguna Resources Chile 2016 500 170

Pascua Cía. Minera Nevada 2016 19,830 825

Caspiche Óxidos Eton Chile 2017 3,800 ---

Cerro Maricunga Atacama Pacific Gold Chile 2017 6,840 ---

Copper mining (secondary production additional)

Planta Recuperadora de Metales Planta Recuperadora de Metales SpA 2016 5,000 500

Santo Domingo Minera Santo Domingo 2017 470 ---

El Espino El Espino S.A. 2017 780 ---

Productora Sociedad Minera El Águila Ltda. 2018 1,307 ---

Diego de Almagro Compañía Minera Sierra Norte S.A. 2018 713 ---

Distrito Centinela Minera Centinela 2019 4,670 ---

Total production contribution 43,910 1,495

Source: Prepared by COCHILCO.

The contribution of gold mining in Chile comes from two sources: directly from gold mining (primary

production) and as a co-product of copper mining (secondary production). Thanks to the

contribution of the registered projects, through 2026 the maximum production capacity of thus

metal could reach 80.5 tons of gold content, a 75% increase over the 46 tons registered in 2014.

In the case of silver, the projects in this report will reach some 1,495 tpa of silver by 2026 over the

current production, which in 2014 reached 1.572 tons of silver.

5.3.2. Molybdenum production capacity

Molybdenum production in the country is a by-product of copper mining. In the last 10 years

between 33.7 thousand and 48.8 thousand tpa of Mo concentrate has been recovered as

molybdenite (MoS2) wherein in 2014 reached the maximum production of the last decade.

Some copper projects in the investment portfolio also contemplate the reclaiming of molybdenum:


45


a) New projects which consider recovering molybdenum as a co-product of the future copper

concentrate production. For this effect the projects considered are: Actualización de

Esperanza, Spence Growth Project, Quebrada Blanca Fase II and Relincho.

b) Initiatives which seek to expand or replace current concentrate production, and therefore,

will permit to maintain the stable current production of molybdenum and to supply new

production. Among the initiatives associated with this type of project are the structured

projects of CODELCO.

The total contribution of the aforementioned projects is shown in table 20.

Table 20: Maximum molybdenum production capacities per project

Project Controller Implementation Maximum production

(tpa)

Valle Central Expansión Minera Valle Central 2015 360 Actualización Esperanza Minera Esperanza 2015 6,000

Sulfuros RT Fase II Div. Radomiro Tomic 2019 - 2022 10,000

Spence Growth Project Pampa Norte 2019 3,800

Rajo Inca Div. Salvador 2020 2,000

Chuquicamata Subterránea Div. Chuquicamata 2020 22,000

Quebrada Blanca Fase II Teck 2020 5,200

Nuevo Nivel Mina Div. El Teniente 2021 8,000

Relincho Teck 2022 5,100

Nueva Andina Fase II Div. Andina 2024 7,000

Total contribution- production maintenance 69,460


Therefore it is estimated that by 2026 the maximum capacity for molybdenum recovery will reach

95.6 thousand tpa, a 96% growth rate with respects to the production from 2014, which implies an

average yearly growth rate of 5.3% until 2026.

5.3.3. Iron production capacity

The production level of iron mining reached 18.87 Mt of iron ore in 2014, equaling approximately

11.1 Mt of fine Fe content.10

The primary iron production or co-production projects in this update will contribute 18.8 Mt of iron

ore by 2026, making approximately 11.9 Mt of fine content iron.

The details of the estimated contribution of the projects is shown in table 21.

10 Iron products have an iron content of between 58 and 65%.


46


Table 21: Estimate of new iron production capacities per project

Project Controller Implementation

Maximum production (ktpa)

Iron minerals

Fine content

Iron mining

Romeral Fase V CAP 2015 2,500 1,475

Oso Negro Minera San Fierro 2016 1,091 600

Dominga Andes Iron 2018 11,000 7,370

Copper mining

Santo Domingo Capstone Mining 2017 4,200 2,478

Total contribution to Fe production capacity 18,791 11,923

Source: Prepared by COCHILCO.

To summarize, due to the project portfolio with direct iron production, or associated co-production,

the maximum production of the country by 2026 will be situated around 33.3 Mt of iron ore, which

reflects an 80% growth with respects to that registered in 2014.

5.3.4. Industrial minerals

Among the investment projects in the area of saltpeter, is found the Pampa Blanca Expansion by

SQM, displaced in the previous time frame by two years, and the Arbiodo Project by Ingenieros

Asesores Ltda., linked to national capitals, which is in the process of restructuring the EIA presented

in March of 2015 and then withdrawn by the company. The first plans to increase the production

of iodide, by SQM to 10,000tpa of iodine equivalent and produce around 1,293,000 tpa of NaNO3.

The second initiative seeks to produce around 2,700 tpa of iodine and 400,000 tpa of nitrates,

including 20,000 tpa of boric acid.

In another area of non-metal mining, White Mountain Titanium with the Cerro Blanco project will

produce titanium dioxide (TiO2) at an estimated capacity of 200 ktpa of concentrate (95% TiO2), by

2016. It is worth noting that this project is only waiting for the investment decision, as in May of

2015 it received the approved RCA from the Environmental Evaluation Service.


47


6. Comparison of the project portfolios in 2015 and 2014

The investment project portfolio in Chilean mining updated in July of 2015 contemplates 41

initiatives, versus the 53 included in the project portfolio informed in July of 201411, 12 but with a

smaller investment estimated in 29,062 million dollars.

The changes registered in the condition of implementation, timeframe and value observed in the

2015 portfolio with respects to the previous correspond principally to the following:

a) The implementation of 6 projects considered in the 2014 portfolio, valued in US$ 7,587

million, which are excluded in the new portfolio.

b) Ten initiatives were removed from the portfolio for restructuring or because the owning

companies are in the process of adjusting their assets, for which there is no clear date when

they are going to reinitiate the studies or the investment decision, which reach an estimated

investment in 2014 of US$ 28,223 million. Of these projects only El Morro was affected by

issues related with Convenio 169 of the OIT, which translated into the approved RCA being

annulled and a return to the pre-feasibility stage of engineering studies.

c) Five new projects were incorporated into the portfolio with a value of US$ 5,580 million. Of

these, four correspond to copper mining, one of which is an expansion of Los Bronces, a

renewal project in Quebrada Blanca, which will allow for a future project of Sulphur, and

the new BHP Billiton project which plans to extend the lifespan of the Spence site through

a Sulphur line and the expansion of the Sulphur line and a new oxides line for the new

operations at Sierra Gorda, by KGHM. The fifth project belongs to industrial minerals

(Arbiodo).

d) There are 10 projects which did not see any changes with respects to the report from 2014,

evaluated in US$ 11,103 million.

e) The Escondida OGP I is the only project which only announced a modification in the

investment amount, from US$ 3,838 million estimated in 2014 to US$ 4,199 million, which

is a net increase of 361 million dollars.

f) Furthermore for eight projects the companies have announced a delay in the previous

implementation date by one to three years, notwithstanding there not being a change in

the conditions of realization, nor in the budgeted investment amount, which reaches US$

18,416 million.

11 Considering “Other development projects” and “Information projects” of Codelco in both portfolios.

12 See “Investment in Chilean mining- Project portfolio 2014-2023” (DE 06/2014)


48


g) Finally, sixteen initiatives show modifications in their condition of materialization, value

and/or timeframes for implementation. Positive cases include Encuentro Oxidos and

Modifications El Tesoro from Antofagasta Minerals, which passed on to base condition, as

did Chuquicamata Subterranea, however this last suffered a year´s delay with respect to the

previous report. The changes in these initiatives generated an increase in the net

investment by US$ 2,709 million.

The projects which are in this position are duly marked in tables 22 and 23, wherein the projects are

consigned to the list of projects in the portfolio with the variations registered with regards to the

previous year.


49

Table 22: Comparison of investment portfolios 2015 vs 2014 (part 1)

PROJECTS IMPEMENTATION

PORTFOLIO 2014

IMPLEMENTATION PORTFOLIO 2015

REGION

CONDITION PER

PORTFOLIO 2014

CONDITION PER

PORTFOLIO 2015

INVESTMENT PORTFOLIO 2014

(MMUS$)


(MMUS$)

DIFFERENCE IN INVESTMENT 2015 - 2014 (MMUS$)

6 PROJECTS WHICH WERE IMPLEMENTED 7,587 --- -7,587

PAMPA HERMOSA 2014 2014 Tarapacá BASE --- 1,033 --- -1,033 CERRO NEGRO NORTE 2014 2014 Atacama BASE --- 1,200 --- -1,200 ESCONDIDA NUEVA PILA LIXIVIACIÓN ÓXIDOS 2014 2014 Antofagasta BASE --- 721 --- -721 PLANTA NITRATO POTASIO (NPT4) COYA SUR 2014 2014 Antofagasta BASE --- 250 --- -250 SIERRA GORDA 2014 2014 Antofagasta BASE --- 4,240 --- -4,240 BELLAVISTA 2015 2014 Atacama BASE --- 143 --- -143

10 PROJECTS REMOVED FROM PORTFOLIO FOR RESTRUCTURING 28,223 --- -28,223

JERÓNIMO 2016 --- Atacama PROBABLE --- 423 --- -423 LOMAS BAYAS III SULFUROS 2018 --- Antofagasta POTENTIAL --- 1,600 --- -1,600 TOVAKU 2018 --- Antofagasta POTENTIAL --- 600 --- -600 LOBO - MARTE 2019 --- Atacama POTENTIAL --- 800 --- -800 INCA DE ORO 2019 --- Atacama POTENTIAL --- 600 --- -600 VOLCÁN 2019 --- Atacama POTENTIAL --- 800 --- -800 CERRO CASALE 2020 --- Atacama POTENTIAL --- 6,000 --- -6,000 EL MORRO 2021 --- Atacama POTENTIAL --- 3,900 --- -3,900 COLLAHUASI EXPANSIÓN FASE III 2022 --- Tarapacá POTENTIAL --- 6,500 --- -6,500 AMPLIACIÓN LOS PELAMBRES IV 2022 --- Coquimbo POTENTIAL --- 7,000 --- -7,000

5 NEW PROJECTS INCORPORATED TO PORTFOLIO 2014 --- 5,580 5,580

ACTUALIZACIÓN QUEBRADA BLANCA --- 2016 Tarapacá --- PROBABLE --- 165 165 SIERRA GORDA EXPANSIÓN 220 KTPD --- 2017 Antofagasta --- PROBABLE --- 1,500 1,500 ARBIODO --- 2017 Antofagasta --- POSSIBLE --- 503 503 LOS BRONCES - FASE 7 --- 2017 Metropolitana --- PROBABLE --- 112 112 SPENCE GROWTH OPTION --- 2019 Antofagasta --- POSSIBLE --- 3,300 3,300 10 PROJECTS NOT MODIFIED 11,103 11,103 0 ANTUCOYA 2015 2015 Antofagasta BASE BASE 1,900 1,900 0 ACTUALIZACIÓN ESPERANZA 2015 2015 Antofagasta BASE BASE 630 630 0 VALLE CENTRAL EXPANSIÓN 2015 2015 O'Higgins BASE BASE 152 152 0 PLANTA RECUPERADORA DE METALES 2016 2016 Antofagasta BASE BASE 96 96 0 CASPICHE ÓXIDOS 2017 2017 Atacama POSSIBLE POSSIBLE 344 344 0 CERRO COLORADO CONTINUIDAD OPERACIONAL 2017 2017 Tarapacá PROBABLE PROBABLE 467 467 0 EL ESPINO 2017 2017 Coquimbo POSSIBLE POSSIBLE 624 624 0 PRODUCTORA 2018 2018 Atacama POTENTIAL POTENTIAL 700 700 0 AMPLIACIÓN MARGINAL LOS PELAMBRES 2018 2018 Coquimbo POSSIBLE POSSIBLE 1,190 1,190 0 EL ABRA MILL PROJECT (e) 2021 2021 Antofagasta POTENTIAL POTENTIAL 5,000 5,000 0

(e) Implementation estimated by COCHILCO, based on public information from the companies

Source: Prepared by Cochilco, based on public information from the mining companies.


50

Table 23: Comparison of investment portfolios 2015 vs 2014 (part 2)

PROJECTS IMPLEMENTATION PORTFOLIO 2014

IMPLEMENTATIONPORTFOLIO 2015

REGION

CONDITION PER

PORTFOLIO 2014

CONDITION PER

PORTFOLIO 2015


(MMUS$)


(MMUS$)

DIFFERENCE IN INVESTMENT 2015 - 2014 (MMUS$)

1 PROJECT THAT ONLY CHANGED VALUE 3,838 4,199 361 ESCONDIDA OGP I 2015 2015 Antofagasta BASE BASE 3,838 4,199 361 8 PROJECTS THAT ONLY HAD A DELAY IN THE TIMEFRAME 18,416 18,416 0 ROMERAL FASE V 2014 2015 Coquimbo BASE BASE 198 198 0 NUEVA ESPERANZA - ARQUEROS 2016 2017 Atacama POSSIBLE POSSIBLE 150 150 0 CERRO BLANCO (e) 2016 2017 Atacama POSSIBLE POSSIBLE 380 380 0 PASCUA (e) 2016 2017 Atacama PROBABLE PROBABLE 4,250 4,250 0 CANDELARIA 2030 2017 2018 Atacama PROBABLE PROBABLE 460 460 0 DOMINGA 2018 2019 Coquimbo POSSIBLE POSSIBLE 2,888 2,888 0 QUEBRADA BLANCA HIPÓGENO (e) 2019 2020 Tarapacá POTENTIAL POTENTIAL 5,590 5,590 0 RELINCHO (e) 2021 2022 Atacama POTENTIAL POTENTIAL 4,500 4,500 0 16 PROJECTS THAT WERE REDEFINED CHANGING VALUE, CONDITION AND/OR TIMEFRAME 31,359 34,068 2,709 AMPLIAC. PAMPA BLANCA 2015 2017 Antofagasta BASE PROBABLE 665 665 0 PLANTA DE TRATAMIENTO DE MOLIBDENO 2015 2016 Antofagasta BASE BASE 394 425 31 OSO NEGRO 2015 2016 Atacama POSSIBLE PROBABLE 90 90 0 MODIFICACIONES EL TESORO 2016 2016 Antofagasta PROBABLE BASE 86 86 0 ENCUENTRO ÓXIDOS 2016 2016 Antofagasta PROBABLE BASE 600 636 36 CERRO MARICUNGA 2017 2018 Atacama POSSIBLE POSSIBLE 515 587 72 LA COIPA FASE 7 (e) 2017 2018 Atacama POSSIBLE PROBABLE 200 200 0 SANTO DOMINGO 2017 2018 Atacama POSSIBLE PROBABLE 1,700 1,700 0 DIEGO DE ALMAGRO 2018 2018 Atacama POSSIBLE PROBABLE 597 597 0 SULFUROS RT FASE II 2018 2019 Antofagasta POSSIBLE POSSIBLE 5,226 5,459 233 CHUQUICAMATA SUBTERRÁNEA 2019 2020 Antofagasta POSSIBLE BASE 4,115 3,816 -299 DESARROLLO DISTRITO CENTINELA (*) 2020 2019 Antofagasta POTENTIAL POSSIBLE 2,700 4,350 1,650 NUEVO NIVEL MINA 2018 2021 O'Higgins BASE BASE 3,431 4,920 1,489 RAJO INCA 2019 2020 Atacama POTENTIAL POTENTIAL 3,036 2,691 -345 TRASPASO MINA-PLANTA 2021 2022 Valparaíso BASE BASE 1,417 1,323 -94 NUEVA ANDINA FASE II 2023 2024 Valparaíso POSSIBLE POSSIBLE 6,586 6,524 -62 OTHER INVESTMENTS BY CODELCO 4,325 3,923 -402 OTHER DEVELOPMENT PROJECTS 2014 - 2018 2015 - 2019 Various BASE BASE 3,123 2,758 -365 INFORMATION PROJECTS 2014 - 2018 2015 - 2019 Various POSSIBLE POSSIBLE 1,203 1,165 -38

DIFFERENCE IN THE PORTFOLIO 2014 vs 2015 (MMUS$) -27,562

(e) Implementation estimated by COCHILCO, based on public information from the mining companies (*) In 2013 it was called "Distrito Centinela", after 2014 just "Encuentro Sulfuros"

Source: Prepared by Cochilco, based on public information from the mining companies.

Chilean Mining Investments – Project Portfolio 2015 -2024 51

Furthermore, it is POSSIBLE to see the most important global changes between both portfolios according to the implementation condition and mining type, an association between both previous scenarios, and a regional comparison of the investment (tables 24, 25, 26 y 27).

Table 23: Comparison of portfolios 2015 and 2014 per project condition


In the previous table it is seen that the portfolio with the highest probability of completion within

the timeline estimated by the owning companies (base + probable) remain almost stable, in number

of investments as well as in investment amount (increase in US$ 1,628 million), however, it changes

from having a 28.3% participation of the total portfolio in 2014 to being 40.6% of the portfolio in

2015. It is possible to take from this comparison that two initiatives passed from probably to base,

one initiative in probable condition was removed from the portfolio for restructuring, and one is

added to the probable condition, specifically the Sierra Gorda expansion, and five advance from the

possible and potential conditions up to probable.

On the contrary, those initiatives with a lesser probability of maintaining the advancement terms

indicated by their owners and investors (possible and potential) diminished by almost 30%, due in

part to the removal of 9 initiatives from the potential category for restructuring13 and the change

of five projects to probable condition. However, to this group two new initiatives were added,

Arbiodo and Spence Growth Project as possible. This shows that the weakness of the investment

portfolio is in this group.

Table 25 shows the comparison according to mining type, wherein it is observed that the project

portfolio for copper is reduced by almost 17% due in part to the removal of the Escondida Nueva

Pila de Lixiviación and Sierra Gorda, both of which have been in operation since the first trimester

of 2014, mainly because of the removal from the 2014-2024 portfolio the expansion initiatives of

Collahuasi and Los Pelambres.

13 Letter b) chapter 6, which indicates the removal of 10 of the initiatives of which 9 are potential and one

probable.

Condition of materialization

2014 – 2023 2015 - 2024

Investment (MMUS$)

Part. % of total

Project Quantity

Investment (MMUS$)

Part. % of total

Project Quantity

BASE 23,431 22,3% 17 21,139 27.4% 13

PROBABLE 6,286 6,0% 6 10,206 13.2% 11

POSSIBLE 25,808 24,6% 15 27,464 35.5% 13

POTENTIAL 49,326 47,0% 15 18,481 23.9% 5

BASE + PROBABLE 29,717 28,3% 23 31,345 40.6% 24

POSSIBLE + POTENTIAL 75,134 71,7% 30 45,945 59.4% 18


Table 24: Comparison of portfolios 2015 and 2014 by type of mining

Type of mining

2014 - 2023 2015 – 2024

Investment (MMUS$)

Part. % of total

Project Quantity

Investment (MMUS$)

Part. % of total

Project Quantity

CODELCO 28,137 26.8% 8 28,656 37.1% 8

Large mining - Cu 48,722 46.5% 18 35,785 46.3% 17

Medium mining - Cu 3,273 3.1% 6 2,073 2.7% 4

Gold 17,382 16.6% 10 5,531 7.2% 5

Metallurgy Plants 490 0.5% 2 521 0.7% 2

Iron 4,519 4.3% 5 3,176 4.1% 3

Industrial Minerals 2,328 2.2% 4 1,548 2.0% 3

Copper 80,622 76.9% 34 67,035 86.7% 31

Gold 17,382 16.6% 10 5,531 7.2% 5

Other14 6,847 6.5% 9 4,724 6.1% 6


It is to be noted that the sector most affected is gold and silver mining, where the investment

portfolio was reduced by 68%, due to the removal of five initiatives, among which Cerro Casale and

El Morro stand out, the first affected indirectly by the problems which Barrick has had to deal with

to carry out Pascua Lama, while the second is due to problems related with communities and

investment reducing policies which the company GoldCorp has had on a worldwide level. The

comparison between the investment destination and the condition of the projects may be seen in

table 26.

Table 25: Comparison of portfolios 2015 and 2014 by type of mining and conditionality of the projects

Mining Type 2014-2023 2015-2024

BASE PROBABLE POSSIBLE POTENTIAL BASE PROBABLE POSSIBLE POTENTIAL

CODELCO 7,971 0 17,130 3,036 12,817 0 13,148 2,691

Large mining - Cu 11,329 1,613 2,890 32,890 7,451 4,404 8,840 15,090

Medium mining - Cu 152 0 1,221 1,900 152 597 624 700

Gold 0 4,673 1,209 11,500 0 4,450 1,081 0

Metallurgy Plants 490 0 0 0 521 0 0 0

Iron 1,541 0 2,978 0 198 90 2,888 0

Industrial Minerals 1,948 0 380 0 0 665 883 0

Copper 19,942 1,613 21,241 37,826 20,941 5,001 22,612 18,481

Gold 0 4,673 1,209 11,500 0 4,450 1,081 0

Other14 3,489 0 3,358 0 198 755 3,771 0


14 Other = Iron and industrial minerals


On a national level, the northern zone15 is that which has seen the greatest decline in investment,

with 31.5% less than registered in the previous registry. Likewise, on a regional level, the regions

with the greatest investment declines are the region of Coquimbo (-58.8%), Tarapacá (-54.2%) and

Atacama (-44.7%). However the first two decreases in investment are due to the removal of an

important project in each region (Ampliación IV Los Pelambres and Collahuasi Fase II, respectively),

while the investment decline in the Atacama region is due to the removal of eight initiatives, which

shows the difficulties that exist in the region with respects to the materialization of projects (table

27).

Table 26: Comparison of portfolios 2015 and 2014 on a regional level

Region 2014 - 2023 2015 – 2024

Investment16 (MMUS$)

Part. % of total

Project Quantity17

Investment16

(MMUS$) Part. % of

total Project

Quantity17

Arica y Parinacota 0 0.0% 0 0 0.0% 0

Tarapacá 13,590 13.0% 4 6,222 8.1% 3

Antofagasta 34,607 33.0% 17 34,134 44.2% 15

Atacama 31,005 29.6% 21 17,139 22.2% 13

Coquimbo 11,900 11.3% 5 4,900 6.3% 4

Valparaíso 8,220 7.8% 2 8,141 10.5% 2

Metropolitana 649 0.6% 0 504 0.7% 1

O'Higgins 4,881 4.7% 2 6,249 8.1% 2

North Zone 91,102 86.9% 47 62,395 80.7% 36

Central-South Zone 13,749 13.1% 4 14,894 19.3% 6


15 North Zone corresponds to the regions of Arica and Parinacota to Coquimbo, while the Central-South Zone corresponds

to the regions of Valparaíso, Metropolitana and O´Higgins.

16 Other Codelco projects are distributed in the following manner for 2014 and 2015, respectively: Antofagasta 45% - 40%,

Atacama 5% - 12.5%, Valparaíso 5% - 7.5%, Metropolitana 15% - 10% and O'Higgins 30% - 30%.

17 The "Other development projects " and "Information projects" initiatives are considered as to large projects in the total

amount of the portfolio, as their investments are broken down through the whole country.


7. Conclusions

Chile, like the rest of the world, has been greatly affected by the weakening of the price of

commodities, which has made the materialization or advance of mining initiatives difficult in the

past few years. Likewise, mining has been affected by a new treatment coming from the

communities wherein the projects will be installed.

Currently the portfolio of mining projects to be carried out within the next decade consists of 41

initiatives which will allow Chile to maintain its worldwide leadership in copper production and

increase significantly the production of gold and silver, of iron, and of some industrial minerals.

The relevant elements of this portfolio are not the global value, rather the composition in terms of

the number of initiatives, who is pushing them, the objectives, where they are found, and the efforts

being made to carry them out. From the analysis of the background information shown in this report

the following can be concluded:

Investment origin

For the first time, CODELCO presents an investment portfolio almost equal to that coming from the

private copper mines, which, beyond seeking a productive increase of the state, seeks to consolidate

the sustainable development in the long term, permitting the continuity of operations for the next

30 years. This portfolio reaches US$ 28,656 million, being 43% of the copper portfolio and 37% of

the total portfolio. CODELCO possesses 61% of the investments in base condition of Chilean copper

mining.

Only some private companies in large copper mining maintain investment plans of a similar

magnitude to those of CODELCO, among which stands out Antofagasta Minerals, with the

developments in Distrito Centinela in the community of Sierra Gorda, KGHM and the expansion of

the new operation of Sierra Gorda, BHP Biliton with the expansion projects of Escondida and the

continuity of operations in Cierro Colorado and Spence, the last with a line of sulphured minerals.

Following the same example is Teck with Quebrada Blanca Hipógeno and the Relincho project in

Atacama, and Freeport McMoRan, which after the sale of their assets in Atacama put all of their

efforts in the El Abra Mill project.

The investment in other minerals18 has been diminished with respects to the previous year,

specifically with respects to the previous year, specifically to gold mining, which has fallen by 68%.

The most affected is that which development potential in the Atacama region.

The investments come from 8 countries, led by Chile, with a 58.9% of total participation, coming

from the state and private mining. In the second place is Canada with a 21% participation, with

emblematic companies such as Tech Resources, Lindin Mining, (which was just acquired by

Candelaria), Barrick Gold, and other companies focused in investments in the medium copper mines

18 Oro, hierro y minerales industriales


and of industrial minerals. With participation of less than 10% are countries such as Australia, the

United States, Japan, the United Kingdom, Poland, China, and Korea.

Investment purpose

On a global level, the purpose of developing greenfield initiatives reaches a 57.7% of the portfolio

total with around 22 projects, being relevant for all of the classifications with exception of the

investments carried out by CODELCO, being mainly brownfield.

The expansion of the operations as well as that of replacing the current production are especially

relevant for CODELCO, to assure its competitive position in the long term, as well as for the

conditions of depletion in which some of the most emblematic sites are found. For the expansion

projects 9 have been identified which make up 22.9% of the total investment, whereas for the

replacement 11 projects are considered, with a 19.4% of the investment total.

Investment Region

Antofagasta remains the principal investment destination, focused principally on copper mining,

with 22.3% of the total participation in the investment portfolio. Atacama is the second investment

destination, with 22.2% of the total investment participation, and is the only zone with investments

in gold mining (32% of the regional investment) as well as a significant investment in copper (62%

of the regional investment) as well as other minerals. Valparaíso, Tarapacá, the Metropolitana

region, and O’Higgins only have copper investments, while Coquimbo has copper investments and

a significant iron Project with copper coproduction.

Investment conditionality

All mining initiatives may be affected by certain variables which affect their planned timeframe,

which are mainly the stage of advancement in construction or of their studies, obtaining of permits,

be it environmental or legal, financial strength of the operating companies, as well as other factors.

Therefore the initiatives with the greatest probability of materializing within the timeframes

indicated by the proprietary mining companies, which corresponds to the projects in base and

probable condition, correspond to 24 initiatives valued in US$ 31,345 million dollars.

In the group of projects which are in the possible and potential categories, which correspond to

those mining investments with lesser probability of being implemented within the timeframes

defined by the owners are also those most susceptible to being affected by changes in market

conditions, wherein we find 18 initiatives valued in US$ 45.945 million.

Conversely, the projects in execution reached 27.4% of the total portfolio with 13 initiatives, while

those projects in the feasibility stage correspond to 26 initiatives wherein 62.8% of the investment

total is concentrated.


There are 17 initiatives making up 27.1% of the investment total which have the RCA approved as

of July 2015, which indicates the existence of 6 initiatives within the next few months which could

begin implementation and change their materialization condition. Likewise, 33.1% of the

investment corresponds to 11 initiatives which have not received a positive environmental

qualification resolution (RCA approved) for the projects presented, and 27.5% of the investment

corresponds to projects who have not yet entered their respective EIA into the system.

Upon annualizing the financing coming from the investment portfolio, it is possible to identify three

periods:

- Investment already received, which corresponds to US$15.380 million, or 19,9% of the

current portfolio,

- The investment to be concreted during the next five year period, 2015-2024, US$ 44,894

million, equaling 58.1% of the portfolio, with an average yearly investment of US$ 8.979

million,

- The remainder to be invested in the 2020-2024 period being those projects whose

implementation date is planned for this period, whose investment reaches US$ 16.981

million, making up 22% of the investment portfolio.

Among the investments to materialize during the next five year period, the group of projects in base

and probable condition make up 40% of the investment, with an average rate of US$ 3,592 million.

Furthermore, the group of initiatives in the possible and potential condition make up the remaining

60%, with an average yearly investment of US$ 5,386 million.

Structural change in copper production

Considering a horizon of 2026, Chile has the potential of reaching a copper production capacity of

7.56 million tons of copper, a 31.6% increase over the production registered in 2014, if all of the

planned projects are carried out according to their timeframes, the maximum production registered

within this period would be reached in 2024, wherein the copper production would reach

approximately 7.84 million tons, 36.3% over the 2014 production.

This increase in production shows a structural change in the type of final product of the copper

operations, whereas as the production capacity in concentrates were to increase by 2.84 million

tons by 2026, a 72.7% increase over 2014, the SxEw cathode production would diminish by 1.03

million tons, registering a 55.7% decrease with respects to the same year.

This decrease in SxEw cathodes is principally due to the exhaustion of leachable resources and of

the closure of operations of some copper sites towards the end of the next decade, such as

Collahuasi, Sagasca, Quebrada Blanca, Mantos Blancos, Michilla, Las Cenizas, Franke, Mantoverde

and Carmen de Andacollo. Furthermore, it is observed that some of CODELCO´s operations, such as

Chuquicamata (Hidrosur), Radomiro Tomic and Salvador, will reduce their production due to the

depletion of leachable resources.


However, the increase of production coming from the concentration lines has repercussions on two

aspects of the strategic mining area, which are:

- Increase in the exportable supply of concentrates, without increasing the current

production of ER cathodes: where during 2014 2.55 million tons of copper concentrate was

exported, equaling 65.3% of the concentrate production of the country, by 2026 the

maximum copper concentrate production should reach 6.75 million tons, reaching 89% of

the national copper participation, wherein it could potentially export 5.2 million tons of

concentrate, in other words, 76.9% of the Chilean copper concentrate production.

- Increase in the levels of processing and generating of tailings: if currently 10.849 tpd of fine

copper concentrate is produce, as a produce of the processing of 1.60 mtpd of sulphured

ore, and generate around 1.56 Mtpd of tailings (2014 amounts), the copper mining project

portfolio for 2015-2024 will increase the production of fine copper concentrate to 18.741

tpd, as a product of the processing of around 3.47 Mtpd of tailings by 2026. This means an

increase in daily treatment and tailings generation of around 121% to only increase daily

copper production by 32%.


ANNEX 1: Description of investment projects in copper mining

1. Projects by the state owned copper mines

1.1. Structural Projects by CODELCO - www.codelco.cl

SULFUROS RADOMIRO TOMIC PHASE II (División Radomiro Tomic)

The Radomiro Tomic Sulfuros project

corresponds to the option of continuing the

development of the RT open pit mine, whose

oxide production will fall decisively beginning

in 2018, through the exploitation of the

Sulphur estimated in 2,600 million tons, with

an average copper grade of 0.47%.

From the mining perspective this project adds

new extraction phases which take advantage

of the current development of the Radomiro

Tomic mine, generating a total material

movement of between 600,000 and 650,000

tpd, with a mineral production of 200,000 tpd.

With respects to ore processing, the project proposes the construction and operation of a new

concentrator plant with a 200,000 tpd capacity, with which it would be one of the largest SAG

concentration plants in the country. It is estimated that the project will contribute around 350

thousand tons of fine copper annually, as well as 7 thousand tons of molybdenum concentrates.

Among the most relevant aspects is the use of desalinized sea water in the processes, and beginning

in 2021, the implementation of thick tailings technology, which will allow for the optimized usage

and size of the tank, to recover more water and diminish the emissions of material particles, among

other environmental advantages.

In 2013, project finished the feasibility studies, considering reaching 200,000 tpd of processing in

two stages of 100,000 tpd each: the first in 2018 and the second in 2021. Furthermore, it advanced

in the acquiring the land and services which will be required to base the future installations on.

In May 2013, it entered into the Environmental Impact Assessment phase of the projects, and by

the end of the year was finishing the first addendum, to later obtain the sectoral permit. Currently

Codelco has responded to the second addendum of the project and the Environmental Evaluation

Service (SEA) is in the process of indigenous consulting within the framework of the Convenio 169

of the OIT.

Resources : 3,617 Mt @ 0.46% Cu

Treatment Capacity : 200 Ktpd of sulphured ore, in two stages.

http://www.codelco.cl/


Estimated Investment : MMUS$ 5,376, including the infrastructure for desalinization and

impulsion of sea water, but does not include the thick tailings plant,

to be built at a later time.

Sea water usage : Considers a desalinization plant with inverse osmosis technology

of 1,600l/s, with an estimated investment of US$ 1,500 million,

included in the total project investment.

Labor : 12,100 in the construction stage, and 2,200 in the operation stage.

Condition of materialization :

Condition Project type Stage of advance SEA permit Implementation

POSSIBLE New Feasibility EIA presented 2019

Current Status : In process of RCA approval and of sectoral permits, with time

extension requested until September 2015. Beginning of

construction estimated for the beginning of 2016, to finish stage 1

of the process by the end of 2018.

NEW LEVEL MINE (División Teniente)

This development will enlarge the El Teniente mine to a deeper area

of the site, located in the 1,880 level, being 100m lower than the

current Teniente 8, adding to this a exploitable area of 2 million square

meters. This new sector contains reserves which reach 2,020 million

tons and with an average copper ore grade of 0.86% and 220ppm of

molybdenum.

The configuration of the project contemplates the exploitation

through a panel caving system, with 100% of the area preconditioned

with hydraulic fracturing and a level pattern that is typical for El

Teniente mine: sinking, production, ventilation, hauling, and crushing.

The difference is, in this case, the mineral will be transported to the

surface through a system of transportation belts to the Colón

concentrator.

The project will allow the level of divisional operation to reach sustained operations in the long term

at 137 ktpd, extending by more than 50 years the useful lifespan of the mine beginning in 2017.

Additionally it leaves the option of reaching a treatment capacity of 180 ktpd within the next decade

open.

It is estimated that between 2011 and 2017 the project will carry out 98,450 meters of tunnel work

(horizontal development) and 3,454 meters of vertical developments: ventilation ducts and transfer

shafts.


It is worth noting that the New Level Mine (Nuevo Nivel Mina) project poses an engineering design

oriented to diminishing risks. At the same time, it will greatly reduce the exposure of the workers

to dangerous situations , as it considers semi-automatic operations commanded in the control

rooms located in the valley, more than 50 kilometers from the work site.


Treatment capacity : 137 Ktpd of sulphured ores, with possibilities to expansion within

the next decade to 180 Ktpd of sulphured ores.

Estimated investment : MMUS$ 4,920

Seawater usage : Does not apply.

Labor : 3,500 workers in construction stage.



BASE Replacement Execution EIA approved 2021

Current Status : The project has passed on to a closer review, delaying the expected

implementation date and increasing the investment required for

development. The aforementioned is explained by greater

geotechnical complexity in the access and transportation. It is

expected that it will gradually start up production in 2021.

CHUQUICAMATA SUBTERRÁNEA (División Chuquicamata)

The Corporation is currently exploring the

geological resources deep in the Chuquicamata

deposit, whose reserves are estimated at 1.650

million tons with a .71% copper grade.

The project considers the exploitation through

macro blocks, using the extraction process of

“block caving”, in a subterranean mine made up of

four production levels; a principal access tunnel

7.5 km long, five clean air injection ramps, two air

extraction spires, and many other features.

Likewise it foresees an increasing production rate

from 2,700 tons of ore per day at the beginning of

the operation, up unto meeting the goal of

140,000 tpd nine years later, which would mean a yearly production of 366,000 tons of fine copper

and 18,000 tons of fine molybdenum.

http://www.codelco.cl/uploads/proyectos/imagenes/77316993145048Entrada barrio cívico.jpg


The development would coincide with the end of the useful life of the put and would send the

minerals to the current concentrators of Chuquicamata.


Treatment Capacity : Up to 140 Ktpd of sulphured mineral.



Labor : 3,767 in the construction phase and a maximum of 4,837 in the

operational phase, once Operations reach their peak.




Current status : The first stages have been completed, currently carrying out access

tunnel and transportation tasks. A gradual development of the

mine is planned, with production to commence in 2020.

NUEVA ANDINA: PHASE II - EXPANSIÓN A 244 KTPD / (División Andina)

This structural project by Codelco consists in the treatment capacity expansion of the Division

Andina by 150 ktpd of mineral, passing from the 94 ktpd reached in the PDA phase 1 to 244 ktpd

nominal capacity. The prior is translated for the first 30 years of operation, in an additional 343 ktpa

of fine copper, which would take the Division Andina to be producing around 600 ktpa of fine copper

and would extend the useful lifespan of the Division until 2085. The construction or the Expansión

Andina will take 6 years due its complexity and the need to build a mineral transport system through

tunnels in the high mountains.

The expansion considers new unitary operations of primary crushing, mineral transportation,

secondary and third crushing, collective, selective and molybdenum recovery flotation plants, as

well as a filtering plant with concentrate storage, for later transportation and storage in the

Quintero Bay. Among the necessary equipment, this project will include the use of HGPR technology

(High Pressure Grinding Roll), in the third crushing stage, with which it is hoped to lower operation

costs, by around 20%, a savings which is strongly sustained by a lower specific consumption of

energy, around 25%.

For these operations, the project includes work in the Valparaíso region, expansion of the pit mine

and mining infrastructure, of the mineral transportation system, new concentration plant and

copper concentrate storage in the Bay of Quintero, as well as in the Metropolitan region the

expansion of the Ovejería tailings tank (currently in operations), a new canal for the transportation

of tailings, a water recirculation system from the tank, electrical transmission lines of 22kV and 33kV,

a concentration duct and a filtering plant in the Montenegro area.



Treatment Capacity : 150 ktpd of sulphured mineral above the current 94 ktpd.


Seawater usage : Not considered.

Labor : Between 12,800 and 18,000 workers in the construction stage,

and approximately 2,043 average in the operational stage.



POSSIBLE Expansion Feasibility EIA presented 2024

Current status : The feasibility Assessment finalized in 2013 modified the project

timeline, defining the implementation for not before 2023.

Production is estimated to begin in 2024.

NUEVO TRASPASO RAJO - PLANTA / (División Andina)

The New Primary Crushing System consists in the construction of a new crushing line, which will

allow the current production capacity of División Andina to be maintained, with around 92 thousand

tons of mineral per day, generating around 240 thousand tons of fine copper per year, as well as 3.9

tons of molybdenum production.

In accordance with the mining plans and the advance, the current feeding lines for the Don Luis

crusher will be affected by the pit growth. Therefore the División Andina will require the

replacement of the infrastructure which guarantees the mineral processing capacity, fitting a new

space wherein a new crushing line will be installed which allows the transfer of mineral from the

mine to the plant.

The work contemplates the construction of a platform in the 3.500 Nodo, an avalanche protection

system, the construction of a new primary crusher, the construction of the Haulage III belt tunnel,

the SAG hopper distribution and feeding system, and a new secondary crushing plant. This will allow

the useful life of the pit to be extended until 2033 and allow the development of the Nueva Andina

Fase II.

Another of the most appealing innovations of this projects consists in the installation of an

avalanche control system which will allow to guard all of the installations contemplated in the area,

and of course, the personnel who work there.

Resources : Does not apply.

Treatment Capacity : Does not apply.




Labor : This project does not modify the numbers of the División Andina.



BASE Replacement Execution N/A 2022

Current status : The project is in the investment execution stage, as initiated in mid-

2013. The construction of all of the parts of the project will take 8

years due to the climatic conditions which impede surface work

during the winter months, being completely operational not before

2022.

RAJO INCA/ (División Salvador)

The Rajo Inca consists in an operational continuity project of the current installations of the El

Salvador Division of CODELCO, through the open pit exploitation of the Indio Muerto deposit. This

project, as well as extending the useful life of Salvador for more than 30 years from the closure of

the subterranean mine, contemplates the expansion of the current treatment capacity of the

Division from 2022, reaching a total of 132 ktpd in 2023.

The current mining plan of the Salvador Division contemplates the usage of the sulphured resources

form the Inca area through subterranean mining which will be interrupted in 2018 because of the

pre-stripping work having begun for the Rajo Inca project. Furthermore the area called

Campamento Antiguo will exhaust its reserves in 2017.

The pre-feasibility API of the Rajo Inca project has been turned in for review. This prefeasibility

Assessment contemplates flexibility in the design and extraction sequence of the Rajo Inca project,

being subject to controlling with a greater level of certainty in the tonnage and ore grade feeding

the plant due to the high percentage of broken mineral contemplated in the operation and to

reevaluate the development strategy of the mining business, analyzing the possibility of a smaller

entrance to the Rajo Inca to thereby speed up the implementation date.

It is to be noted that the Corporation contemplates analyzing the feasibilty of processing marginal

resources (run of mine process) with the purpose of using the Sx-Ew assets of Salvador during the

transition period of the Rajo Inca, a project which could supply, beginning in 2017, leachable

resources of a low ore grade.

Resources : 1,291 Mt @ 0.45% Cu.

Treatment Capacity : 132 Ktpd.



Labor : Not available




POTENTIAL New Pre-Feasibility Without EIA 2020

Current status : Project in pre-feasibility stage. Implementation projected not

before 2020.


2. Large private copper mining projects

2.1. Projects of Anglo American - www.angloamerican.com

LOS BRONCSE FASE 7 (Anglo American Sur S.A.)

The Los Bronces operation considers prioritizing the use of the mineral in those sectors with the best geological

information and lowest ore burden, to be able to maintain the current production levels. In this sense, the project

incorporates a modification of the mining usage denominated Fase 7 of mining development. The extension of

Fase 7 contemplates an estimated 44 hectare surface, which currently is used and occupied for service

infrastructure of the mining operations. From the productive point of view, it is projected to extract a total of

approximately 78 million tons of material, of which 42 million tons correspond to tailings and 36 tons of mineral.

As a result of the prior information, it is necessary to reposition the infrastructure which will be affected by the

mining development, which will bring with it the construction, fitting and relocation of buildings and other

operational service infrastructure.

Given the fact that the project has the objective of sustaining the current production levels, without incorporating

modifications in the mineral treatment capacity of the plants, an increase in water consumption and inputs is nor

projected which would pass the authorized levels of the “Desarollo Los Bronces” project. In this same sense, to

carry out the project will not require new mineral processing plant infrastructure, modification of the pulp

transportation system, nor of the tailings tanks.

Resources : XXXXXXXX

Treatment Capacity : 160 ktpd average, with a maximum of 180 ktpd.

Estimated investment : MMUS$ 112

Labor : 120 in the construction phase.




PROBABLE Expansion Feasibility EIA presented 2017

Current status: Project entered to the SEA through a DIA in November of 2014, waiting for environmental

approval.

http://www.antofagasta.co.uk/


2.2. Antofagasta Minerals Projects - www.antofagasta.co.uk

ANTUCOYA (Minera Antucoya Ltda.)

A deposit located at 125 km to the northeast of Antofagasta and at 45 km in a straight line from the coast, which

contains proved and probable reserves of 635.8 million tons with 0.35% copper (with a cut-off grade of 0.21% Cu).

The project will produce an average of 85,000 tons of copper cathodes during the first 10 years of operation, to

later reach an average of 80,000 tons of cathodes per year until completing the 20 years of useful life that is

estimated for the project.

Antucoya will be developed as a conventional open cast mine and the mineral will be processed through dynamic

leaching pits and a SXEW plant, using untreated seawater in the operations. Although it is a greenfield type project

of low grade, there are a series of compensable factors; the deposit is relatively shallow and therefore the process

of pre-stripping to eliminate the 35 million tons of waste is only expected to take nine months; the sterile/mineral

relationship is also low, approximately 1:1; the deposit is located within a well-developed mining zone, which

permits easy access to pre-existing infrastructure, including energy, water, and human resources.

Toward the end of December of 2012, the development of Antucoya was suspended to allow for a review of the

project due to an increase in the current and potential costs. After the positive adaptations, the construction of

the project was reactivated in the second trimester of 2013, eliminating the acids plant considered in the initial

project, and increasing the average production for the first 10 years.

Resources : 1,208.5 Mt @ 0.30% Cu (measured, indicated, and inferred)

Treatment Capacity : High grade mineral, up to 96 ktpd; ROM (Run of Mine) mineral, up to 38 ktpd.


Labor : Between 5,000 and 7,000 in the construction phase, and 1,400 in the operation

stage.

Seawater usage : Provided through an impulsion system from Esperanza.



BASE New Execution EIA approved 2015

Current status: Project with construction finalized. A production amount of 37,000 TMF of cathodes is

expected in 2015.

ESPERANZA UPDATE (Minera Centinela, ex Minera Esperanza)

The Esperanza mine, located 30 km from the area of Sierra Gorda, Antofagasta region, has begun an optimization

process through two environmental impact declarations (DIA) presented in 2013.

http://www.antofagasta.co.uk/


The first optimization, called “Tercera Actualización Proyecto Esperanza”, with the DIA approved in May 2012,

seeks to increase the availability of critical inputs (water, inhibitors and process reactive, etc.), incorporating new

oxidized minerals resources in areas to later be used as dumps, and the construction of a new molybdenum

processing plant.

In this first optimization, the “Planta de Molibdeno” project represents the task with the greatest reach. The

location of the plant is in a sector close to the collective flotation, in the Esperanza sector next to the existing

concentrator plant. The process corresponds to a standard selective flotation circuit with a treatment rate of 5.5

Ktpd, with the following stages: primary flotation, cleaning flotation, filtering, drying and storage of the

Molybdenum concentrate produced. The end, or “tailing” of the process corresponds to the copper-ore

concentrate which will continue its processing in the current concentration plant.

The second optimization, denominated “Cuarta Actualización del Proyecto Esperanza -Optimización del Proceso”,

with a DIA presented in June of 2013, concentrates on the improvement of the current crushing and floating

systems, with the incorporation of a secondary and tertiary crushing plant as a complement of the current

processing capacity, as well as another concentrate thickener and another of tailings.

Once these improvements are concreted, Esperanza will have increased the treatment capacity of the

concentration plant of 12 ktpd, reaching 105 Ktpd to be treated. This increase is translated into approximately 19

Ktpa of Cu concentrate added to the current production of the operation. Furthermore, the molybdenum plant

will allow the company to produce around 2 ktpa of Mo during the useful life of the current operation,

substantially increasing the value chain.

Of these two initiatives, “Optimización del Proceso” is the most advanced, estimating that the increase in the

output of the plant to 105 Ktpd will be complete by the end of 2015. During 2013 the project´s activities were

focused on the installation of the two additional tailings thickeners.

With respects to the construction of the molybdenum plant, Esperanza will continue evaluating the project, which

is currently in the feasibility Assessment phase. However, if it is approved, production could begin in 2016.

It is to be noted that due to the restructuring of the Distrito Centinela projects, Esperanza Sur was added to the

mining plan of Esperanza, increasing the operational reserves from 731.6 Mt with ore grades of 0.50% in copper,

0.011% of molybdenum, and 0.19 gpt of gold to 1,789.2 Mt with ore grades of 0.45% in copper, 0.013% of

molybdenum, and 0.16 gpt of gold. This would increase the useful lifespan of the current operations in Esperanza

by an additional 30 years.

Resources : 3,244.7 Mt @ 0.38% Cu; 0.005% Mo; 0.12 gpt Au (measured, indicated and

inferred)

Treatment Capacity : 12 ktpd of additional sulphured mineral over current capacity, plus 5.5 ktpd of

treatment in the molybdenum plant.

Estimated investment : MM US$ 630 (“Tercera Actualización Proyecto Esperanza” MMUS$ 200; “Cuarta

Actualización del Proyecto Esperanza -Optimización del Proceso” MMUS$ 430).

Seawater usage : Will be maintained from the current plant.

Labor : 875 workers in the construction phase and 49 in the operational phase.




BASE Expansion Execution EIA approved 2015

Current status : Projects with feasibility studies in already in processing and in construction,

respectively. The project called “Tercera Actualización Proyecto Esperanza” has

the DIA approved as of May 2012, but is still being evaluated, with the

implementation budgeted for 2016, on the other hand the “Cuarta Actualización

del Proyecto Esperanza -Optimización del Proceso”, which has the DIA approved

since November 2013 is estimated to be working by the end of 2015.

MODIFICACIONES EL TESORO (Minera Centinela, ex Minera Tesoro)

The El Tesoro mine, located 25 km to the east of the area of Sierra Gorda, Antofagasta region, and with an altitude

of approximately 2,300 meters above sea level, in January of 2014 presented the DIA “Continuidad operacional:

Aumento de capacidad de procesamiento y modificación Planta SX”.

This project has the principal objective of maintaining the production of fine copper cathodes from El Tesoro,

equivalent to 110 ktpa. This will be possible, by providing the maximum benefit of their own resources, and also

by processing the copper-rich solutions provided by third parties. The project is centered on four points in

particular:

i. Increasing the processing capacity: Consists of crushing, agglomeration, and leaching of 2,500,000 tons of

minerals, preferably stick, but eventually directly from one of more of the pits being mined in the site, in a

new comminution, agglomeration, and leaching plant. This increased processing capacity will allow for the

partial compensation for the decrease in the ore grade of the minerals being processed.

ii. Gravel leaching: generated from minerals previously leached in a dynamic pit, but which for their remaining

copper content are profitable to reprocess (re-leaching) within the same pit as the existing gravel. It will be

benefitted by 3,000,000 tons yearly during the rest of the useful lifespan of El Tesoro.

iii. Modification of the SX Plant and processing of solutions from third parties: in this case, the SX plant will

require modification, with the objective of allowing it to process solutions, in the short term, from the

Encuentro Óxidos project, and in the long term, from other oxide deposits which may exist in the area.

iv. Carrying out drilling surveys: through diamond drilling and reverse airflow, in an area that was previously

explored within the mining properties of the current operation, specifically the area known as Llano-

Paleocanal, located directly south and southeast of the Tesoro Noreste pit.

In the end of July of 2014, the project was approved by the SEA, with which the carrying out of the project

should have started in the end of August 2014.

Resources : 346 Mt @ 0.45% Cu

Treatment Capacity : 7 ktpd of oxide minerals added to the current capacity.



Seawater usage : The supply will be maintained from Esperanza

Labor : 460 workers in the construction stage and 270 in the operation stage.




Current status : Projects with feasibility studies in progress and DIA approved in July of 2014.

Beginning construction at the end of August of 2014, it is projected that the

implementation will be in the middle of 2016.

ENCUENTRO, (Antofagasta Minerals S.A.)

The Encuentro deposit is located about 10 km to the SE of Esperanza and the immediate strategy is to develop

the oxide layer in the beginning, which would be the pre-stripping for the sulphured stage, to be developed in the

second stage. The development of these usage lines is linked to the Minera Cetinela operations.

i. Encuentro Óxidos:

The Encuentro Óxidos deposit is expected to produce around 50,000 tons of copper cathodes per year, using the

existing capacity of El Tesoro. This initiative will permit the current Sx-Ew plant to keep producing to its full

capacity, (100,00 tons per year), beginning in 2016, for around 8 years, helping to compensate the diminishing of

the productive production of the decline in ore grades of the current deposit from where the mineral is being

extracted.

This project contemplates new crushing and heap leaching installations, with a tube which will direct the leaching

solution or PLS (Pregnant Leach Solution) to the EL Tesoro plant about 15 km away, for processing. The mineral

with the highest ore grades will be crushed and sent to the new heap leaching installations, while the minerals

with the lesser grades will be processed in a ROM leaching heap.

The feasibility Assessment should be finished during the first semester of 2014, to later begin with the pre-

stripping in the end of 2014, for a period of two years, followed by primary production in 2016.

Currently the Group is analyzing ways to reduce the investment costs, including considering the importation of

equipment of China, and the use of a project team lead by Antofagasta Minerals instead of the EPCM contractor.

Resources : 178.8 Mt @ 0.44% Cu (measured, indicated and inferred)


Treatment Capacity : Between high grade mineral and ROM, around 65 Ktpd.


Seawater usage : Coming from Esperanza through impulsion system.

Labor : 2,000 workers in the construction stage and 500 in the operation stage.




Current status : Project construction begun in the end of 2014 with implementation estimated

for 2016.

ii. Encuentro Sulfuros (Desarrollo Distrito Centinela):

Minera Centinela registered in the Environmental Evaluation System (SEA) of the Antofagasta Region the

Environmental Impact Assessment (EIA) in May of 2015.

It is expected that in the first stage, which will be implemented in 2019, the project will allow 140 thousand tons

of fine copper to be added. With the second stage, in 2024, another 60 thousand tons will be added. Therefore,

in the next decade, Minera Centinela will reach a yearly production greater than 400 thousand tons.

The initiative contemplates carrying the project out in two stages. The first corresponds to the development of

the Esperanza Sur deposit, which has estimated plan to enter in operations by 2019, and would mean the

investment of US$ 2,700 million. Furthermore the second stage consists in the development of the Encuentro

Súlfuros deposit, whose operational date is projected for 2024, wherein an investment of an additional US$ 1,650

million will be made.

Resources : 1,193.5 Mt @ 0.40% Cu; 0.014% Mo; 0.16 gpt Au (measured, indicated and

inferred)

Treatment Capacity : 95 Ktpd of sulphured mineral.


Seawater usage : Coming from Esperanza through an impulsion system.

Labor : No information available.



POSSIBLE New Feasibility EIA Presented 2019

Current status : Project entered into the environmental evaluation system in May 2015.


LOS PELAMBRES (Minera Los Pelambres S.A.)

The Los Pelambres deposit is located almost 170 km to the east of Los Vilos, and at 3,100 meters above sea level.

It has basic resources which surpass by more than four times the mineral reserves in the current operation.

Therefore the Company has continued to examine options for the long-term development of the mine, designing

distinct alternatives for growth. Therefore, during 2013, the Group has completed the pre-feasibility studies

which examines the options for the progressive and improved long term expansions through the current operation

of Los Pelambres.

AMPLIACIÓN MARGINAL LOS PELAMBRES

This expansion does not require new infrastructure and only seeks to increase by 15% the current treatment

capacity of the concentrating plant through optimizing the productive process.

During November a feasibility Assessment was begun over the marginal expansion, with a possible first production

beginning in 2018. Currently it is expected that the yield could increase to close to 205 ktpd. Likewise, it would

modify the current processing plant to be able to treat harder minerals, which is expected for the following stages

in the mining plan. These combined factors will support a net increase in the average production from

approximately 40 ktpa to 45 ktpa of fine copper.

Resources : 5,714 Mt @ 0.52% Cu; 0.016% Mo; 0.05 gpt Au

Treatment Capacity : Additional 30 ktpd of sulphured ores.


Seawater usage : Not considered in the project.

Labor : No information available.


Condition Project Type Stage of advance SEA permit Implementation

POSSIBLE Replacement Feasibility Without EIA 2018

Current status : Project with feasibility Assessment being processed, and it is hoped that the EIA

of the project may be sent during the second semester of 2015. The company

estimates that the implementation would be during 2018.


2.3. BHP Billiton Projects - www.bhpbilliton.com

SPENCE GROWTH PROJECT or MINERALES PRIMARIOS SPENCE (Minera Spence S.A.)

For the benefit of the primary sulphured minerals, the site considers the implementation of a concentration plant

with a nominal treatment capacity of between 95,000 and 100,000 tons of mineral. Also, the processing of the

mineral reserves will allow the useful lifespan of the site to be extended by around 20 years, producing around

835,000 tons of copper concentrate and 7,500 tons of molybdenum concentrate yearly.

It is to be noted that the current operations of Minera Spence (consists in the usage of supergene material,

leaching of sulphide and oxides, solvent extraction and electro-winning to produce high purity copper cathodes)

will continue being carried out at the same time until 2024.

The project also considers the use of desalinized salt water of industrial quality as a supply, for which the

construction and operation of a desalinization plant with a production capacity of up to 1,600 l/s, which will be

located approximately 12 km to the Northeast of the town of Mejillones. This plant would be built in two stages,

with the materialization of the work to produce and operate the 800 l/s required for the mining project, and the

second stage of 800 l/s to supply other BHP Billiton projects.

Resources : No information

Treatment Capacity : New concentration plant with capacity between 95,000 and 100,000 tpd.

Estimated investment : MMUS$ 3,300 (includes US$ 800 million for desalinization plant)

Seawater usage :Use of desalinized sea water with an 800 l/s capacity plant, with possibility to

expand to 1,600 l/s.

Labor : For the site between 1,550 and 4,100 workers are considered for construction,

and 220 for operation. For the desalinization plant around 1,380 in construction

and between 26 and 45 for operation.




Current status : Project in feasibility stage, with approval process from the EIA presented in July

of 2015. If the EIA is approved, the operation could continue development

beginning in 2019.

http://www.bhpbilliton.com/


ESCONDIDA ORGANIC GROWTH PROJECT I (Minera Escondida Ltda.)

BHP reformulated the original Escondida Fase V

project in 2011, for a new model of organic

growth, which is initiated with the addition of a

mill in the Laguna Seca plant, increasing the

treatment capacity of this plant by 15 Ktpd, and

later the construction of a new concentrating

plant with 152 Ktpd of mineral treatment which

would replace the current Los Colorados plant,

which will be dismantled to leave the area in

conditions to remove the rich minerals which are

lying in the location of the plant.

Furthermore, the company has plans for the medium/long term to carry out a new phase called OGP II, which

includes adding a third plant to the productive cycle, as well as the infrastructure related to the electrical hanging

of the operation. This last initiative is currently only in the profile engineering level.

Resources : 13,890 Mt @ 0.57% Cu (measured, indicated, and inferred)

Treatment Capacity : Net increase of 47 ktpd of sulphured minerals: a) an additional 15 ktpd of Sulphur

minerals in the Laguna Seca plant, to reach 135 ktpd. B) Removal of the current

Los Colorados plant at 120 ktpd. And c) adding a new concentrating plant for 152

ktpd.


Seawater usage : Use of desalinized sea water coming from the current Coloso Plant. However the

company will be carrying out the studies necessary for a new desalinization plant,

which will boost the current one.

Labor : Between 5,900 and 8,570 workers in the construction phase, and 739 in the

operational phase.




Current status : Project finalized in June of 2015, currently in the commissioning stage, with

definitive implementation during the third trimester of 2015.

CERRO COLORADO – CONTINUIDAD OPERACIONAL (Pampa Norte S.A.)

Cerro Colorado, is a copper strip mining operation which produces SXEW cathodes and is located 120 km to the

east of Iquique, between the communities of Pozo Almonte and Pica in the region of Tarapacá. It has been


operation since 1994, and Cerro Colorado has a useful lifespan estimated until 2016, for the reserves considered

in the original project as well as for the water extraction permits which it has obtained for its processes.

In July of 2013 Pampa Norte S.A., affiliate of BHP Billiton in Chile, presented the project named “Continuidad

Operacional” which considers continuing the current operation, tapping the mineral reserves which have been

identified and economically evaluated within the framework of distinct prospection campaigns designed to

prolong the useful lifespan of the operation. The usage of these reserves would permit the company to extend

the current operation until 2023, without modification of the process, and maintaining the currently authorized

production level, at a pace of material movement (tailings and mineral) of around 217 ktpd, as a daily average,

with a maximum of around 261 ktpd during 2016.

It is to be noted that the project considers maintaining the same water extraction rate – 150 l/s—from the field

of wells located in Pampa Lagunillas.

During July of 2015 the company delivered to the environmental authorities a third Addendum, in which it replied to a new round of concerns from the public service sector with competence for the evaluation. It is hoped that after the presentation of the document, the project may be voted upon, and eventually approved.

Resources : 267 Mt @ 0.60% CuT; 0.42% CuS

Treatment Capacity : Not available


Seawater usage : No used

Labor : Between 40 and 50 workers in the construction phase, and 3,200 workers on

average during the operation phase.



PROBABLE Replacement Feasibility EIA presented 2017

Current status : Project in feasibility, with EIA approval process presented in July of 2013. If this

EIA is approved, the operation could continue development beginning in 2017.

2.4. Proyecto de Capstone Mining - www.capstonemining.com

SANTO DOMINGO (Minera Santo Domingo)

Santo Domingo is the main deposit of four IOCG type deposits which Capstone Mining is assessing in the Diego de

Almagro district, a company which it received in the acquisition of Far West Mining in June 2011. A prefeasibility

Assessment was done in August 2011 wherein the investment and project operation parameters were re-

estimated.

http://www.capstonemining.com/


With the available information it is postulated that usage of the sulphur resources be used to recover over 100

ktpa fine Cu and 470 kg in gold from the copper concentrates, as well as the coproduction of some 4Mtpa of iron

resources (magnetite and hematite) in Fe concentrates through the magnetic concentration of the tailings from

floatation.

The copper concentrate will be filtered and later transported from the Mine-Plant Area in trucks to the Port area

for storage and then shipping. On the other hand, the magnetite concentrate will be transported by a

concentration duct to the Port Area, where it will be washed, filtered, and stored until shipping.

Once the decision has been made to build the project, implementation should take place approximately 3 years

later. The total budget of Santo Domingo for 2014 is US$ 29.8 million to continue the engineering tasks and for

obtaining permits.

Resources : 581 Mt @ 0.32% Cu; 0.042 gpt Au (indicated and inferred)

Treatment Capacity : 70 ktpd of sulphur mineral during the first 5 years, the will remain stable at

63.5 ktpd of sulphur ores.


Seawater usage : Considers a plant which will produce 12.5 l/s of desalinized water (2.5 l/s for

concentrate washing and worker consumption, and 10 l/s for storage for the

usage of the community of Diego de Almagro). Also, it considers a water impulsion

pipeline for seawater of 112 km with a nominal flowrate of 389 l/s.

Labor : Between 1,550 and 4,060 workers in the construction phase, and 1,055 for the

operation.



PROBABLE New Feasibility EIA approved 2018

Current status : Approval of RCA in July of 2015. It is hoped that the work may commence in the

end of 2015 and the implementation to begin in 2018.

2.5. Lunding Mining Projects - www.lundinmining.com

CANDELARIA 2030 (Cía. Contractual Minera Candelaria)

The Candelariamine is located 20 km to the southeast of the city of Copiapó, and 5 km to the south of Tierra

Amarilla, in the Atacama region. It began operating in 1995, and has a useful lifespan estimated until 2017, based

on the initial reserves considered in the original project.

The Candelaria 2030 project, entered into the SEA in September of 2013, considers the extension of the useful

lifespan of the current operation until 2030. This project requires diverse activities, among which is the expansion

of existing projects and the incorporation of some larger projects:


a) Increase the useful life until 2030 of the open pit and subterranean mines; deposits of the North and

Nantoco areas; processing plant, Port-Warehouse and Warehouse –Candelaria aqueduct, water supply;

electrical energy supply and distribution, and desalinization plant.

b) The extension of the useful lifespan from 2017 to 2019 of the current tailings deposit called Candelaria,

and from 2023 to 2030 to the port installations in Puerto Punta Padrones. Also a new tailings deposit

called Los Diques will be made, with an approximate capacity of 600 Mt.

c) Increase in the storage capacity of the North and Nantoco dumps, by approximately 610 and 140 Mt

additionally, respectively.


Treatment Capacity : Between 9.8 ktpd and 24.2 ktpd additional of sulphur ores (65.8 ktpd currently)


Seawater usage : New aqueduct of 500 l/s, parallel to the one in existence and with the same

characteristics, which will provide desalinized water for the operation.

Labor : 970 on average and 1,700 maximum during the construction phase, and 2,600

average in the operational phase (1,200 of our own workers and 1,400

contractors).



PROBABLE Replacement Feasibility EIA approved 2018

Current status : In feasibility, with the EIA presented in September of 2014, and waiting for

approval. In July of 2015 the SEA approved the EIA of the project, for which it is

now waiting for the new owner to define the construction date of the same.

EL ABRA MILL PROJECT (Cía. Contractual Minera El Abra)

This project responds to the necessity of the company to maintain the operational continuity of the deposit to

treat the new reserves of primary sulphide which emerge as the leachable resources are exhausted. Even though

it was conceived during the past decade, it was deferred to permit that the hydrometallurgical process be

prolonged through the Sulfolix project, which is currently in operation. In July of 2010 the prefeasibility stage

began for the construction of a new concentrating plant.

This new plant aims to process between 150 and 200 ktpd, which would allow for a production of close to 300,000

tons of fine copper concentrates, doubling the current production of copper in cathodes. The last updates of the

company indicate that, thanks to the results of an exploratory campaign carried out in 2012, the El Abra Mill

Project will have the potential to produce more than 450,000 tons of copper in concentrates.


The company continues advancing in the feasibility Assessment of the project, with the purpose of evaluating in

the best way the potential of a crushing operation on a large scale and achieve greater recovery. Also it has not

discarded the existence of synergies with neighboring projects, especially with respects to obtaining water for the

project.


Treatment Capacity : Between 150 ktpd and 200 ktpd of sulphide minerals.


Seawater usage : A desalinization and water impulsion project is considered, very much like the RT

Sulfuros Fase II project.

Labor : Not available.



POTENTIAL New Feasibility With EIA 2021(e)

(e) = estimated

Current status : The company indicates that the advances of this project will depend on the

technical studies, economic factors, and conditions of the world market. Due to

the slow advance of the studies phase of this project, Cochilco estimates a delay

in the implementation date defined in the previous report, wherein the project

should be entering into operations not before 2021.

2.6. KGHM International Projects - www.sgscm.cl

SIERRA GORDA FASE 2 (Sierra Gorda SCM)

The mining deposit is close to the Spence and Tesoro Projects, (140 km East of Antofagasta) and is being developed

as a joint venture between KGHM International (55%) and Sumitomo (45%). Currently the operation processes

110 ktpd of minerals with copper, gold, and molybdenum content, which gives it perspectives to produce a yearly

average of 150 ktpa of fine copper in concentrates, 62 koz of gold, and 11 ktpa of molybdenum during the next

20 years. The expansion project announced in August 2015 plans to increase this production capacity, with 35

kTMF of electro-winning cathodes from 2017 coming from the pre-stripping of sulphides from the area and an

increase of up to an additional 110 ktpd of concentrate processing beginning in 2019. This expansion would allow

the KGHM group to reach over 300 thousand tons of copper production until the beginning of the next decade.

Resources : 1,642.9Mt @ 0.32% Cu; 0.011% Mo; 0.035 gpt Au (measured, indicated and

inferred)

Treatment Capacity : 110 ktpd of additional sulphur mineral over the current 110 ktpd.



Seawater usage : The current operation includes a seawater impulsion system with an intake from

the effluent of the cooling system from the Mejillones thermoelectric center. The

range of seawater is 1,315 l/s and of desalinized water of 63 l/s, and the impulsion

tube is 142 km.

Labor : No information.



PROBABLE Expansion Feasibility EIA presented 2017(oxides) and 2019 (sulphides)

Current status : Project entered into the environmental impact evaluation system in August of

2015, with a possible implementation date of the beginning of 2017 for the oxides

line and beginning of 2019 for the expansion of the sulphide line.

2.7. Teck Projects - www.teck.com

ACTUALIZACIÓN QUEBRADA BLANCA

The mining site of Quebrada Blanca in an operation which takes advantage of and benefits from a copper deposit located in the Tarapacá region, on the western edge of the Chilean highlands, at approximately 4,300 meters above sea level. The mineral is extracted from an open pit and processed in piles and leaching pits and conventional solvent extraction plants and through electro-winning. The product is cathodes of copper of high purity which are transported in trucks to the Iquique ports and to other national destinations.

The copper mineral extracted from the mine is divided into two types, high ore grade and low ore grade minerals. The high grade mineral is subjected to successive crushing stages to reduce the size and then is transported to a belt system to the agglomeration stage to be later deposited into leaching piles.

Currently, the site presents tasks, activities or parts which show some degree of deviation from the information presented to the environmental regulatory controllers, which has been defined as an Update Modification. This modifications refer principally to: the expansion of the put and of the sterile pit in the south, the enlargement and modification of the site of the leaching dumps and of gravel, the incorporation of a hipogene collection, the update of the original camp and of the treatment of waste water, the updating of the hydrological recharging and the incorporation of a water management area. These modifications have not changed the totality of the mining process described previously and have been maintained within the upper basin of Quebrada Blanca, a historical zone associated with this mining development, without affecting during normal operations the new zones in neighboring basins.

Resources : No information

Treatment Capacity : Will not be modified


http://www.teck.com/


Seawater usage : Not considered

Labor : Between 223 and 256 during construction, 564 for operation and between 728

and 1,300 for closing.



PROBABLE Replacement Feasibility EIA presented 2016

Current status : Project entered into the SEA in July of 2014 with ICSARA delivered in May of

2015.

QUEBRADA BLANCA FASE 2 (Minera Quebrada Blanca)

A hypogene deposit of primary sulphides which is found underneath a supergene deposit of secondary sulphides

which is currently being developed through leaching, obtaining around 80 ktpa of SXEW cathodes. The

development of this deposit will be carried out coinciding with the depletion of the economic leachable reserves

and will allow the useful lifespan to be extended by another 39 years.

A concentrating plant is considered of 135 ktpd, which will be supplied with desalinized seawater. This capacity

will allow for the recovery of 200 ktpa of fine Cu in concentrates and 5.2 ktpa of fine Mo in molybdenum

concentrates.

In October of 2012 the company withdrew the EIA entered into the SEA with the purpose of perfecting it and to

re-present it not before the second trimester of 2013, a situation which was modified at the beginning of 2015,

wherein the company indicated that the timeframe for the re-presentation of the Environmental Impact and

Social Assessment of the Hypogene project would depend in a way on the progress of the updating process for

the existing Quebrada Blanca operation and the improvement activities of the project coming from the EIA of the

“Actualización proyecto minero Quebrada Blanca” project (see prior entry). Also, the company is currently

carrying out improvements to the feasibility Assessment with the purpose of substantially reducing the capital

expenses of the project.

Resources : 2,561.9 Mt @ 0.41 % Cu; 0.014% Mo (measured, indicated and inferred)

Treatment Capacity : 135 ktpd of sulphur mineral.


Seawater usage : Considers a desalinization plant with a water intake from the Punta Patache Port.

The impulsion system is made of a 170 km pipeline with an estimated flow rate of

1,300 l/s.


Labor : 7,000 on average y 9,200 as a maximum in the construction phase and 1,787 on

average and 2,053 as a maximum in the operational stage.



POTENTIAL New Feasibility Without EIA 2020

Current status : Project with the feasibility Assessment in optimization of the capital costs. The

Environmental Impact Assessment is in the process of being updated, due to the

company being in the process of obtaining permits for the existing installations.

The immediate expectations of the Company indicated that the EIA of the

Hypogene project will not be presented again before the end of 2015. Based on

this, the construction could being in mid-2017 with implementation for 2020.

RELINCHO (Minera Relincho)

A copper and molybdenum deposit located 50 km to the north of Vallenar, acquired by Tech with the purpose of

carrying out this old project, for which the exploration tasks have been taken up again.

According to the project feasibility Assessment, it would be a copper operation with a concentrator with a 173

ktpd capacity, to produce up to 228 ktpa of copper in concentrates and around 5.3 ktpa of fine Mo, for 21 years

of operations. As with the Quebrada Blanca Hipógeno project, it would operate completely using desalinized

seawater.

The feasibility Assessment was completed in the fourth trimester of 2013, coming to the conclusion that the

development of a 173 ktpd concentrator and the associated installations would cost approximately MMUS$ 4,500,

for an estimated useful lifespan of 21 years, based on the existing mineral reserves. The project would produce

228 ktpa of copper concentrates and 5,300 tons of molybdenum during the first 6 years of operations, to then

produce an average of 207 ktpa of copper concentrate and 5,100 tons of molybdenum for the rest of the useful

lifespan of the project.

Given the current economic conditions, the Company does not foresee significant activities for the Relincho

project during 2014, having the main objective of working on the optimization studies of feasibility which will be

centered on capital and operational cost reductions, exploring other forms of improving the value of the project.

Resources : 1,007.8 Mt @ 0.36 % Cu; 0.012% Mo (measured, indicated and inferred)


Estimated investment : MMUS$ 4,500 (according to last feasibility Assessment)

Seawater usage : Considers a desalinization plant of 700 l/s to supply the project.

Labor : No information available




POTENTIAL New Feasibility Without EIA 2022(e)

(e) = estimate

Current status : Project with the feasibility Assessment finished in 2014. During 2015 the project

optimization studies will be continued. This scenario will delay the normal

development of the project, for which Cochilco delays the implementation

projection by a year with respects to the projection from the 2014 report, now

being estimated for 2022.

3. Projects of medium copper mining

3.1. Amerigo Resources Project - www.amerigoresources.com

VALLE CENTRAL EXPANSIÓN (Minera Valle Central S.A.)

Minera Valle Central is located 8 kilometers east of the city of Rancagua and 90 km south of Santiago, 700 meters

above sea level. Tis operation currently treats approximately 45 Ktpd of the tailings extracted from the Colihues

reservoir and 135 Ktpd of fresh tailings which are sent daily from the Division El Teniente.

In January of 2013, Minera Valle Central presented an Environmental Impact Assessment (EIA) to increase the

benefit capacity by increasing the extraction and processing capacity of old tailings from the current 45 Ktpd to

85 Ktpd through the incorporation of the resources of the Cauquenes Tranque for feeding into the tailings

processing plant.

In April of 2014 the project feasibility Assessment was finished, wherein the extension of the operations of Valle

Central is confirmed until 2037.

Resources : 338.14 Mt @ 0.27 % Cu; 0.021% Mo (inferred)




Labor : 595 workers in the construction phase and 178 workers during operations.




Current status : Feasibility Assessment finished in the beginning of 2014, and EIA approved in July

of 2014. The implementation is estimated for the end of 2015, after almost 2

years of construction on the project.

http://www.amerigoresources.com/


3.2. COPEC Project - www.empresascopec.cl

DIEGO DE ALMAGRO (Minera Sierra Norte S.A.)

A deposit located in the Atacama Region, approximately 12 km to the west of Diego de Almagro, 15 km to the

southwest of the Pampa Austral reservoir and 50 km east of Chañaral. The deposit is of the IOCG type (iron oxide

minerals with copper and gold content) and has reserves of 300 Kt of copper content mas well as 27 Koz of gold

in two sectors called Esther and Carmen-Paulina. This project was pushed by Cerro Dominador initially, and is

now property of Mineral Sierra Norte, an affiliate of the COPEC mining group.

The project considers the development through open air mines, and benefits from mineralized resources of the

oxide, mixed, and sulphured types, reaching the processing amounts of 100 Mt of mineral. The oxides will be

processed in a leaching plant, through solvent extraction, and electro-winning (Lx-Sx-Ew) to produce around 11

ktpa of SxEw cathodes. The sulphur, on the other hand, will be processed in a concentration plant with around 24

ktpa of fine copper in concentrates. The project considers the use of seawater and the conduction of it through

an aqueduct to the installations of the project.

Resources : Without information

Treatment Capacity : 24 ktpd of sulphur mineral and 2 ktpd of oxide mineral.


Seawater usage : Desalinization plat located in the area of the concentration plant. The flow rate

for desalinization would be of 1,865 m3/day and provide desalinized water for

lesser processes, the greater consumption amounts would be direct seawater (not

desalinized)

Labor : 595 workers in the construction phase and 178 in the operation phase.




Current status : Project approved by the SEA in July of 2015. The implementation of both

production lines is expected not before 2018.

http://www.empresascopec.cl/


3.3. Hot Chili Project - www.hotchili.net.au

PRODUCTORA (Soc. Minera El Águila Ltda.)

The Productora project is located in the Sierra Coyiguales area, 18 km to the southeast of the city of Vallenar, in

the Atacama Region. An assessment of the development reach in Productora indicates that it possesses enough

resources to be able to develop an open pit mine and process the mineral obtained through a concentrating plant

of 30 ktpd treated, with the purpose of producing copper concentrate with around 50 ktpa of fine content copper

and 42 Koz of gold content for a useful lifespan of 20 years.

A great opportunity for the project was identified during 2013, which corresponds to an area of copper oxides,

which has the potential of significantly reducing the capital costs of prestripping and diminishing the ramp up

time, adding another source of income for the project. It is to be noted that an estimate of the oxide mineral

resources was not considered previously in the operational plans of the Company for the project.

During May of 2014, Hot Chili was able to secure a loan of US$ 25 million from the Sprott Asociación. The funds

will be destined to advancing the Productora project. This will include finishing the prefeasibility assessment,

perforation campaigns, the capital for the general tasks, and the initial work for a definitive feasibility assessment.

In July of 2015 contracts were signed through which CAP Mineria will be integrated to the project with a 17.5%

participation with the option of receiving up to 50.1% depending on the engineering studies.

Resources : 214.3 Mt @ 0.48% Cu; 0.11 gpt Au; 172 ppm Mo




Labor : Information not available



POTENTIAL New Prefeasibility Without EIA 2018

Current status : The project is developing the prefeasibility assessment, which may be finished

during 2015, to later initiate the feasibility assessment of the project, to be

developed during 2015 and the end of 2016. The implementation will not take

place before 2018.

http://www.hotchili.net.au/


3.4. Pucobre Projects - www.pucobre.cl

EL ESPINO (El Espino S.A.)

El Espino is a copper-gold project located 36 kilometers to the northwest of Illapel, province of El Choapa, in the

Coquimbo region, and is property of Pucobre through the affiliate Explorator S.A., acquired in its totality in March

of 2011 from the Canadian Company Explorator Resources Inc. Currently the affiliate has been called El Espino

S.A.

According to the latest estimates carried out by Pucobre, the El Espino project considers the construction of a LX-

SX-EW plant to treat 6.3 ktpd of leachable minerals and a concentrator plant to treat sulphide minerals at a rate

of 20 ktpd. The estimated production for oxides is of 7.2 ktpa of copper in cathodes, while for sulphides it is of

32.8 ktpa of fine copper and 25 Koz of gold content in concentrates, all for a useful lifespan of approximately 18

years.

Resources : 230.3 Mt @ 0.447% Cu; 0.191 gpt Au

Treatment Capacity : 20 ktpd of sulphur mineral and 6.3 Ktpd of oxide mineral.



Labor : 2,900 workers in the construction stage and 700 workers in the operation stage




Current status : Project carrying out the feasibility Assessment and with EIA presented in April of

2013. The company foresees the termination of the feasibility Assessment and the

approval of the EIA during 2015, to begin operations not before 2017.

http://www.pucobre.cl/


4. Metallurgic Plant Projects

4.1. Codelco Project - www.codelco.cl

MOLYBDENUM TREATMENT PLANT (Molyb Ltda.)

Within the past few years Codelco has shown that it needs to have an independent molybdenum concentrate

processing plant available, so as to not depend critically on the “know how” and interests of a third party. Also,

important current and potential clients of Codelco have suggested the convenience of a facility with minimum

third party interference. This is to make of Codelco a more trustworthy and safe offering for a critical input used

in the business of specialized steels.

The project, located in the community of Mejillones has the feasibility Assessment finished and the investment

approved by the Board of Directors of Codelco for US$ 394 million, and consists o f a molybdenum plant with an

initial treatment capacity which would reach 15 ktpa of fine from toasting and 16 ktpa of fine from leaching. Also

it could produce around 4,000 tpa of molybdenum content as iron-molybdenum (FeMo), with the possibility of

duplicating the production to 8,000 tpa depending on the commercial demand for this product; 5.4 tpa of

rhenium; 4,000 tpa of Mo in bricks and an acid plant which would produce around 32,000 tpa of sulphuric acid.

This initiative will be operated through Molyb, an affiliate of Codelco, and will initiate production during the

second trimester of 2015. The estimated useful lifespan is of 25 years.

The first EIA of the project was favorably received in 2008, with the emission of the Environmental Qualification

Resolution # 0230/08. However, due to the current project incorporating rhenium and iron-molybdenum plants,

modifications to the EIA had to be made, obtaining the approval RCA in mind 2012, with resolution # 202/2012.

The corporation contemplates an expansion project in 2018, with the purpose of duplicating the producing the

molybdenum production capacity, of toasting as well as leaching, to be able to reach the production of 30 ktpa

and 21 ktpa of fine Mo, respectively.


Treatment Capacity : 15 ktpa fine from toasting and 16 ktpa fine from leaching.



Labor : Between 570 and 950 in the construction phase and 185 in that of operations.




Current status : Project in execution. In January of 2014, Codelco informed the beginning of

construction on the project. The implementation is estimated for 2016.


4.2. LS-Nikko Copper Project

METAL RECOVERY PLANT / Planta Recuperadora de Metales SpA

Then Planta Recuperadora de Metales project, located in the community of Mejillones, Antofagasta region, and

next to the Molybdenum Treatment Plant by Molyb, is a joint property venture between the Korean company LS-

Nikko Copper (66%) and state-owned Codelco (34%). It consists in the installation and operation of a processing

plant of two by-products coming from the refineries: refinery precipitate rich an copper and copper and anode

slime, to recover and commercialize the precious metals contained in these products, such as tellurium, silver,

gold, palladium, platinum, and selenium, as well as copper.

It is worth noting that the precipitate corresponds to an intermediate product which is generated in the copper

refineries, and which after a leaching process in which the copper is removed, is transformed into what is called

anode slime. The precipitate possesses a high copper content (averaging over 25%) and important contents (of

economic interest) of precious metals as those already mentioned. For their part, the anode slime possesses gold

content of over 0.18% and/or silver content of over 17%.

The production of the metals will depend on the ore grades of the by-products being processed, estimating that

on average the following amounts will be produced each year: 5 tons of gold, 500 tons of silver, 150 kilograms of

palladium, 10 grams of platinum, 200 tons of selenium, 20 tons of tellurium, and 1,600 tons of copper sulphide.

The type of product and the quantities shows the high value of the by-products to be produced in the plant.

Also, an average of 15,000 m3 per year of a copper rich solution will be produced which will be dispatched to

Codelco´s processing plants, and eventually to third parties, for the production of copper cathodes from the Sx-

Ew processes.


Treatment Capacity : 4,000 t of product through refining



Labor : Between 120 and 300 in the construction phase, and 60 to 90 for operations.




Current status : Project in execution. Currently has RCA approved from November 2013, with

which the implementation is expected for the beginning of 2016.


ANNEX 2: Description of the investment projects in gold and silver mining

1. Atacama Pacific Gold Project - www.atacamapacific.com

CERRO MARICUNGA (Minera Atacama Pacific Gold Chile Ltda.)

The Cerro Maricunga project, is a property of the Canadian Atacama Pacific Gold company, and is located 140

kilometers to the northeast of Copiapó, in the Atacama

Region, in the extreme north of the Cinturón de Maricunga

and 20 kilometers to the south of the gold and silver mine of

Kinross Gold, La Coipa.

This deposit contains resources measured and indicated of

248 Mt with grades of 0.42 gpt of gold, equaling more than

3,334 million ounces of gold content. Also it possesses

potential resources in the inferred category which reach 226

Mt with an ore grade of 0.36 gpt, equaling 2.65 million ounces

of gold content.

According to the Preliminary Economic Assessment (PEA, for

the initials in English) finished in March of 2013, the project

contemplates extracting through pits of the oxide mineral to

be processed at a rate of 80 ktpd though conventional

leaching in piles, with which it will produce around 298 Koz of

gold on average during the first 5 years of operation, for later

maintain an average production of 220 Koz per year of gold

during the useful lifespan of the project which will last 10 years.

In June 2013, Atacama Pacific Gold signed a joint venture agreement with Eton Chile, an affiliate of Exeter

Resources who is developing the Caspiche project, for the exploration of potential sources of subterranean water

in the shared properties of Cuenca Dos and Laguna Verde, in the Atacama Region.

Also, in July of 2013, the company signed an agreement for the purchase of 2.5 million cubic meters of water per

year, which represents a flow rate of 80 l/s with the company Aguas Chañar S.A, to supply the demand of water

for the alternative of the processing plant of 65ktpd. However, the agreement indicates that it is possible to

increase the water usage rate to meet the demands of 80 ktpd of processing, equivalent to 100 l/s.

According the company declarations, in July of 2014 the feasibility Assessment was advanced in the modifications

of the processing type and of the mining plan to be considered. Likewise, the company indicated that it was

waiting for estimates from providers with respect to the purchase of equipment and some elements for the

infrastructure. The closing of the negotiations, as the end of the feasibility, was expected for the third trimester

of 2014.

Resources : 252 Mt @ 0.434 gpt Au

Treatment Capacity : 65 ktpd to 80 ktpd of oxide minerals for cianide leaching

Fuente: PEA Cerro Maricunga -Atacama Pacific Gold

http://www.atacamapacific.com/


Estimated investment : MMUS$ 587.


Labor : Information not available



POSSIBLE New Feasibility Without EIA 2018

Current status : Project with feasibility finished in the middile of August 2014 and in the process

of negotiating with equipment and infrastructure providers. Currently preparing

Assessment to register with the SEA, with which, implementation will not begin

before 2018.

2. Barrick Gold Projects- www.barrick.com

PASCUA (Cía. Minera Nevada S.A.) - www.pascualama.com

Pascua is a gold-bearing deposit

located 53 km to the north of the

ex-mine El Indio, at 4,600 metros

above sea level, which forms a

unit with the Lama deposit on the

Argentine side and which is being

developed with the

corresponding binational treaty.

The reserves are estimated in

17.1 Moz of gold and 560 Moz of

silver, principally as oxides.

75% of the mineral will be

extracted from Chilean territory

(Pascua) and the rest from

Argentina (Lama). The mineral

will be crushed at the extraction site and will be transferred to the plants located in Argentine territory. A cyanide

leaching plant is being contemplated which would treat the non-impervious mineral (83% of the total), from which

Fuente: Barrick Chile

http://www.barrick.com/

http://www.pascualama.com/


the metal dore19 is obtained, and a concentration plant for the impervious mineral (17%), from which a copper

concentrate rich in gold and silver is obtained.

The total projected production would reach 850 koz/ year, in gold and 35,000 koz/year of silver (26 tpa of gold

and 1,100 tpa of silver approximately), of which 75% would be considered Chilean production. The marginal

content of copper in the concentrate is not availbale.

The company suspended20 construction work on the Chilean side of the Pascua Lama project while it worked on

environmental requirements and other types of regulations to satisfy Chilean authorities. Meanwile the activities

considered for the environmental protection will be continued as they have been authorized. The construction

activities in Argentina, wherein the greatest part of the key infrastructure of Pascua Lama is located, which

includes the processing plant and tailings tank, were paralyzed also, even though they have been finished.

According to the company, the reduction finishing (ramp down) is programmed for the middle of 2014. The

company expects to have approximately US$ 300 million21 in costs during 2014 to carry out the ramp down and

to comply with the environmental and social obligations. The remaining tasks for project implementation will be

done in stages, with specific budgets and work programs, with the purpose of ease in project planning, as well as

to control the costs of the same. Barrick will explore opportunities to improve the project´s economy and effective

materialization, including strategic associations or payment of royalties and other agreements for the income

flow. The company maintains an active option of restarting the development of this mining activity, which has a

useful lifespan of 25 years.

It is to be noted that in July of 2014, Barrick signed a memorandum of understanding with 15 of the 18 Diaguita

communities in the Huasco valley, which considers a six month horizon for these to see, through their

representatives and first hand, the main impact of the gold and copper projects, as well as the control measures

and mitigation.

This memorandum of understanding is aligned with the standards of the Convenio 169 of the OIT, to which Chile

is subscribed.

Resources : 176.95 Mt @ 1.303 gpt Au; 22.389 gpt Ag; 0.060% Cu

Treatment Capacity : 33 ktpd of mineral during the first 3 years and 44 ktpd for the rest of the useful

lifespan of the project.

19 Dore metal is a gold and silver alloy, of variable proportions which are molded into bar form. It is obtained from the recovery process of the noble ores

present in the minerals and is one of the typical forms of commercializing mined gold. Later the alloy is submitted to a refining process wherein the gold

and silver content are separated, for their respective markets.

20 This occurred after the Appeals Court of Copiapó accepted a no-innovation order (ONI) for the project, and in July of 2013 ratified the momentary

suspension of the project, after a protection resource was presented by five indigenous communities from the Huasco Valley, referring to a series of

environmental irregularities such as the destruction of the Toro 1, Toro 2, and Esperanza glaciers, located in the vicinity of the mine site, and the

contamination of the hydrological resources, as a result pf the deposit of waste rock, without being operative the acid draining plant which would impede

such. New information is expected at the end of May. It is to be noted that the project has already been fined two times for more than $160 million in

March and April.

21 It is hoped to capitalize approximately 25%, related to the water management systems and finish some minor work in Argentina and Chile. The current

expenses will depend on a number of factors including the environmental requirements and regulations.


Estimated investment : MMUS$ 4,250 (Equivalent to the part of the project budget to be raised in Chile,

of a total of MMUS$ 8,500)


Labor : 6,000 workers maximum in the construction phase, and 1,660 workers in the

operational phase.



PROBABLE New Execution EIA approved (*) 2017(e)

(*) Currently suspended in a decision from the Environmental Agency

(e) = estimate

Current status : Execution suspended for external factors. The company indicated that the

decision to recommence the project development will depend on an

improvement in the economic situation and lesser uncertainty with respects to

the legal and regulatory requirements. With this information Cochilco estimates

the project implementation will not occur before the end of 2017.

3. Exeter Resource Corp. Project - www.exeterresource.com

CASPICHE ÓXIDOS (Minera Eton Chile)

The Caspiche project is located in the Maricunga belt, 120 km from Copiapó, between the gold and copper deposit

of Cerro Casale, and the Refugio mine, at an elevation of 4,200 to 4,700 meters above sea level.

The principal parameters of mining resources that the project has is estimated at 889 million tons, with 0.58 gpt

of gold, 0.24% of copper, and 1.13 gpt of silver, which translates into 19.3 million ounces of gold, 41.5 million tons

of silver, and 2.1 million tons of copper, which equals 30.1 million ounces of gold equivalent.

According the prefeasibility Assessment published in January of 2012, an open pit operation was estimated for 19

years, with a concentration plant treating 150 ktpd, as well as a leaching plant for the oxide minerals and low

grade copper. This last could treat minerals at 72ktpd during the first 5 years, to them work at only 33 ktpd during

years 6 to 10, after which the oxide operation would be shut down. The average production estimated in the

prefeasibility Assessment is estimated around 696 koz/y of gold, and 844 koz/y of silver (21 tpa of gold and 26 tpa

of silver approx..) and 110 ktpa of fine copper in concentrate, which would contain one part of both gold and

silver.

However, in May 2014 Exeter published a report about the results of the Preliminary Economic Assessment (PEA),

of the Caspiche project, wherein large modification of the prefeasibility Assessment from 2012 was released. In

this Assessment there are three options for materialization:

i. Open pit operation, 10 years of useful lifespan, to remove oxide resources and recover gold through heap

leaching, at a rate of 30 ktpd;

http://www.exeterresource.com/


ii. Open pit operation with an 18 year useful lifespan, to use oxide resources (years 1 to 5) at 60 ktpd to

recover gold through heap leaching and sulphide resources (years 6 to 18) in a concentration plant of

27ktpd to produce copper and, later, to recover gold through cyanide leaching.

iii. Mixed operation, open pit with a useful lifespan of 5 years to recover oxidized gold ore through heap

leaching at 60 ktpd and subterranean operations (sublevel open stop) to extract sulphur mineral and

process it in a concentrator plant of 27 ktpd to produce copper, and later, recover gold through cyanide

leaching.}

As declared by the company, it would opt for a “staged” development, wherein it would chose the first

alternative, valued in US$ 344 million, to recover the oxidized gold ore through heap leaching at a rate of 30

ktpd for 10 years to produce 148,000 oz of Au equivalent during the first 5 years and then 122,000 oz of AU

equivalent the rest of the useful lifespan. However this option does not show, with improved market

conditions, what could be the most costly alternative (number three) with a value of US$ 1,968 million.

Resources : 1,601.7 Mt @ 0.488 gpt Au; 0.177% Cu; 1.167 gpt Ag

Treatment Capacity : 30 ktpd of oxidized ore (with the possibility of increasing to 60 ktpd and generate

a sulphurs line of 27 ktpd).

Estimated investment : MMUS$ 344 (could increase to MMUS$ 1,968 if the third alternative is developed

to complement the project).


Labor : Information not available.



POSSIBLE New Feasibility Without EIA 2017(e)

(e) = estimated

Current status : Project carrying out feasibility Assessment. In January of 2012 the prefeasibility

Assessment was finished, results were optimized in a preliminary economic

assessment developed in 2013 and published in May 2014. Cochilco estimates the

implementation date for 2017.


4. Kingsgate Consolidate Ltd. Project - www.kingsgate.com.au

NUEVA ESPERANZA (Laguna Resources Chile Ltda.)

Nueva Esperanza, previously called the

“Arqueros”, Project is located in the Cinturón

de Maricunga, to the east of Copiapó.

The project consists of three well defined

mineral deposits as well as a series of

exploratory objectives which are being carried

out. The principal deposits are Arqueros,

Chimberos and Teterita. Arqueros has been

previously mined on a limited scale through

subterranean mining from the years 2000 to

2004, wherein the extraction was around

288,000 oz of gold equivalent. Also, Chimberos

was developed as a strip mine, giving around 20

million ounces of silver in the years 1998-1999.

These three deposits currently have combined mineral resources of 29.7 Mt with average ore grades of 0.25 gpt

of gold and 79 gpt of silver, equivalent to 1.9 million ounces of gold equivalent.

The project initially considered developing the remaining resources of the previous development, considering the

installation of a processing plant for these minerals with a capacity of 6 ktpd, to produce 250 kg/y of gold and 100

tpa of silver during the 15 years of useful lifespan estimated for the project.

At the beginning of 2013 the company established a definitive work agreement meeting the Convenio 169 of the

OIT with the indigenous communities affected by the project, with the purpose of diminishing any possible impact.

In July, the SEA delivered the approved RCA for the project, with which the company hoped to begin construction

in September of 2013.

Due to a lack of electrical supply, in the most advanced stages of engineering the project should have considered

the generation of electricity, incorporating technology which required lesser consumption, changes which would

be implemented within the borders of the property which is in sub-conjunction with the area already evaluated

for the EIA: However, and in accordance with the current environmental codes, the changes introduced were

submitted for approval to the regional authorities in the area of the Environmental Evaluation System in a new

Environmental Impact Declaration (DIA) called “Modificaciones Arqueros”, entered in April of 2014.

However, in May 2014 the SEA of Atacama placed an early termination to the environmental evaluation of the

Environmental Impact Declaration of the Modificaciones Arqueros project, generating a new delay for the

beginning of construction, foreseen for the summer period of 2014/2015. Therefore, the company, in July of 2014

resubmitted the EIA of the project, correcting the lack of information requested by authorities and meeting the

requirements which where suggested during the period in which it was in the SEIA. Notwithstanding, in May of

Fuente: Kingsgate Consolidate

http://www.kingsgate.com.au/


3025, the company retracted the DIA from the environmental impact evaluation system, due to the development

of new mineral reserves in the Chimberos area.

The modifications considered in the project contemplate adding the Chimberos and Teterita pits, with a common

dump, as well as mineral processing through cyanide leaching in a permanent heap and the addition of a

thermoelectric plant. The modifications to the project also require adjustments be made in relations to the

crushing plant and complementary tasks, which includes the installation of a mineral transportation belt from the

plant to the cyanide leaching area.

Also, as is mentioned in the Environmental Impact Declaration, and in accordance with the current identification

of the mining reserves and the definition of the treatment capacity, the project will have a useful lifespan of eight

years. The additional material which will be extracted and which will feed the plant during the useful lifespan will

be around eight million tons, therefore the amount of additional tailings sent to the dumps will be around 27

million tons. The treatment capacity, including the processing of minerals from the Arqueros pit has already been

approved environmentally, and increases by 3 million tons per year, equivalent to 78.5 ktpd, with which an

average of 500kg/ y of gold and 170 tpa of silver.

Resources : 27.4 Mt @ 0.286 gpt Au; 84.34 gpt Ag

Treatment Capacity : 8 ktpd of oxide mineral for cyanide leaching.



Labor : 800 workers in the construction phase and 150 in operations.



POSSIBLE New Feasibility Without EIA(*) 2017

(*) DIA with modifications desisted in May of 2015.

Current status : Project developing feasibility Assessment, delving into mining prospection labors

and with environmental qualification desisted in May of 2015. Implementation of

the project is estimated for the end of 2017.


5. Kinross Projects - www.kinross.com

LA COIPA FASE 7 (Compañía Minera Mantos de Oro)

La Coipa is a gold mining site located 1,000

kilometers north of Santiago, and 140 km to

the northeast of Copiapo, in the gold

district of Maricunga, Atacama region.

The project denominated as the

“Explotación de Minerales Coipa Fase 7” in

the environmental impact Assessment has

the objective of extracting gold and silver

minerals from the new “Pompeya” deposit

to allow the operational continuity of the

current operation, due to the imminent

depletion of the mineral resources in the current pits on the site.

The new deposit would be developed through the conventional open pit method and the mineral transported to

the current processing plant because of proximity. It is to be noted that the La Coipa site was designed to process

up to 15 ktpd of ore, for which, in accordance with what is indicated by the company in the EIA of the project, it

is confirmed that increasing the capacity of the plant, the equipment or the installations will be not be necessary.

Also it is estimated that the average amount which would reach the processing plant from the site would be less

than what has been arriving in the past two years, which will require lower amounts of inputs from the plant.

On another note, no construction or expansion of any installation or area related with the camp, workshops,

explosives storage, provisions supply area, and industrial or domestic waste management would be required, as

all of the existing infrastructure from the La Coipa site will continue to be available for the same purposes.

The Environmental Impact Assessment (EIA) presented in July of 2013 was recalled by the company, which

coincides with the decision of Kinross to momentarily “freeze” their projects until the markets have stabilized.

Therefore the company will concentrate their efforts in the second semester of 2014 on continuing the

exploratory studies for the reopening of La Coipa. These will focus on the Pompeya deposit and on the Purén

mine, as a joint venture with Codelco 65% Kinross y 35% Codelco).

In July of 2015 the company represented the project to the SEA for the environmental approval.

Resources : 16.165 Mt @ 1.782 gpt Au; 45.906 gpt Ag

Treatment Capacity : 15 ktpd of mineral for cyanide leaching.



Labor : 100 workers in the construction phase and 80 workers in the operation stage.

http://www.kinross.com/




PROBABLE Replacement Feasibility EIA presented 2018(e)

(e) = estimated

Current status : Project resubmitted for environmental approval in 2015. In this case, Cochilco

estimates that the implementation will not be before 2018.


ANNEX 3: Description of the investment projects in Iron mining

1. Andes Iron Project - www.conocedominga.cl

DOMINGA

The Dominga project, owned by the Chilean company Andes Iron, is located north of the historical EL Tofo Mine,

70 km north of La Serena and west of the Ruta 5 Norte, in the middle of the Coast Mountain Range in the

community of La Higuera, Elqui province, in the north of the Coquimbo region.

It consists of an open pit mine which will produce high grade iron concentrates, and as a by-product copper

concentrate. The mine projects production of 12 million tons of concentrate per year for pellet feed and 150,000

tons of copper concentrate yearly during a useful lifespan of 22 years.

The iron mineral will be sent through a subterranean concentration duct which will be built in the Totoralillo North

sector, where it existed in the XIX century as the first mining port of the area. However the copper concentrates

would be transported by truck.

The operation integrates three areas:

Sector Dominga: considers the associated installations in two zones of mineral development through strip

mining called Rajo Norte and Rajo Sur; a processing plant, a gravel deposit, and a heavy tailings deposit,

as well as all of the auxiliary work and installations associated with these procedures.

Sector Lineal: considers a system of subterranean aqueducts which will transport the water from the

Totoralillo sector to the Dominga sector. It also contemplates a subterranean concentrator duct which

would send iron ore from the Dominga area to Totoralillo; an electricity transmission line of 66kV and a

service road.

Sector Totoralillo: corresponds to the Shipping Terminal for iron concentrate which will reunite, also, the

thickening, filtering, and storage system installations, as well as the areas for collection, desalinization,

and water impulsion to the Dominga Sector, and the discharge of the seawater brine.

The Environmental Impact Assessment (EIA) was presented in2013, however the company began a dialogue with

the la Higuera community in 2011, with the purpose of creating awareness of the project with anticipation with

the communities possibly affected by the project.

Resources : 2,082 Mt @ 23.3% FeT; 0.07% Cu

Treatment Capacity : 95 ktpd of ores


Seawater usage : Desalinization plant located in the Totoralillo Norte area, with a 450 l/s capacity.

Labor : 9,800 workers in the construction phase, and 1,450 in the operational stage.




BASE New Feasibility EIA Presented 2019

Current status : Project in feasibility and in process of obtaining environmental permits.

Currently the only issue is obtaining the permits to build the port. The

implementation is estimated for not before 2019.

2. CAP MINERÍA Project. - www.capmineria.cl

ROMERAL FASE V

Minas El Romeral is one of the CAP Minería mining-metallurgic complexes and considers among the principal

assets the iron deposit “Minas El Romeral” and other productive and infrastructure installations necessary for the

benefit and management of the mineral it commercializes.

The “Romeral Fase V” project, to be carried out in the Coquimbo region, consists in prolonging the extraction

activities carried out in the El Romeral Mines, extending the useful lifespan for a period of 13 years. The project

will develop high and low ore grade resources in addition to those contemplated in Fase IV, where the current

prospections show the existence of 390 million tons of mineral as a mining resource below the current phase. To

be able to access these resources it is necessary to expand, the Cerro Principal pit as well as the Norte and Sur

dumps, as well as improve some of the current installations.

This expansion contemplates improving and using part of the existing infrastructure, therefore only a few

additions on a smaller scale will be required, such as the expansion of the mechanic shops, a new parking area for

mining equipment, changing houses, lunchrooms, the relocation of powder kegs and the explosives plant.

Additionally, it will carry out technological adaptations and maintenance in the existing infrastructure to reach the

desired extension of the useful lifespan.

It is to be noted that the project does not contemplate an increase in the extraction rates of the deposit nor of

the processing capacity of the existing plant.

Resources : No information available.

Treatment Capacity : No information available.



Labor : Currently in the site there are 427 company workers and around 633

contractors, with estimates of an additional 200 workers in the construction

phase and 425 in the operational phase (company + contractors).

http://www.capmineria.cl/





Current status : The EIA of the project received the approval of the RCA during the second

semester of 2013, beginning construction immediately. Currently the company is

studying the economic viability of the El Romeral mine, because of the low iron

prices. Therefore the implementation would be for 2015.

3. Hebei Wenfeng Industrial Group Project - www.wfsteel.com

OSO NEGRO (Minera San Fierro Chile Ltda.)

The Oso Negro project, property of the Chinese group Hebei Wenfeng, is located approximately 60 km south of

the city of Copiapó. It considers the operation of an iron mine from a vein located in the Cerro Bandurrias sector

for the later transportation overseas to the mineral processing plants located in China.

The operation would begin with the old gravel layers located over the ore, continuing with following with the

stripping, and finishing with the ore extraction from the pit. The pit will be 1,200 m long and 300 wide.

The daily extraction average has been estimated at 4,805.45 tpd, to be crushed and submitted to a dry magnetic

separation, with the purpose of producing 2,988 tpd daily of dry concentrate with a 55% iron content.

The processing plant will have a primary crusher, a secondary crusher, a fine material collection system, high

pressure milling or HPGR, dry magnetic separator, different transportation belts for mineral transportation within

the plant, a dust suppression system, and the transportation of dry concentrate to the Punta Caleta Port or to the

Punta Totoralillo port, depending on the final collection place.


Treatment Capacity : 4,805 tpd of iron ore.



Labor : 220 workers in the construction phase and 500 workers in the operation phase.



POSSIBLE New Feasibility EIA presented 2016(e)

(e) = estimated

Current status : Due to the delay in the approval of the EIA, presented in 2012, Cochilco estimates

that the project´s implementation will not be before 2016.

http://www.wfsteel.com/


ANNEX 4: Description of the investment projects of industrial minerals

1. Ingenieros Asesores Ltda. Projects

ARBIODO

The Arbiodo project corresponds to a non-metal mining project whose main objective is the production of iodine

and nitrates from caliche, passing through a series of processes within the area of development and the industrial

plants of the Mining area.

From the territorial and analytical points of view, the project is made up of three fundamental areas, which

correspond to the Coastal Area, the Pampa Area, and the Mine Area.

The Costal Area is made up of the water intake for seawater at the extraction point, as well as part of the length

of the duct which is 18,83 km long, in this area there are two pumping stations associated with the water flow;

the Pampa Area is made up of 28.34 km of aqueduct; and the Mine Area, which corresponds to the place where

the mineral extraction takes place and wherein all of the productive and industrial processes for obtaining iodine

and nitrates takes place, and furthermore, where the industrial plants and installations associated with project

development will be located. This area contains 14.43km of aqueduct for seawater.

The section of the aqueduct for seawater will have a service road, which will be used for the installation of the

pipeline as well as for maintenance. Along with the pipeline will be the electrical transmission line which will feed

the pumping stations for the water source, and will also will also deliver the energy for the functioning of the Mine

Area installations.

Also, it contemplates the exportation of the finished product to the port of Chañaral, preferably, which is located

in the town with the same name in the Atacama Region (however the use of the Antofagasta and/or Mejillones

Ports area also being considered, both being in the Antofagasta Region.


Treatment Capacity : 400,000 t/year of nitrate prills, 20,000 tons/year of boric acid and 2,7800 tons/year of iodine.



Labor : Between 325 and 400 workers in the construction stage and 250 and 450

workers in the operational stage.



POTENTIAL New Feasibility EIA presented 2017

Current status : Project with EIA presented in March of 2015 with a request for early termination

for issues not corrected in May of 2015.


2. SQM S.A. Projects - www.sqm.cl

AMPLIACIÓN PAMPA BLANCA (SQM Industrial)

The project corresponds, principally, to the expansion of the current Pampa Blanca mining site, located to the

south of the SQM operational center in Maria Elena, consisting of the incorporation of six new mining zones to

increase the caliche extraction rate to 37,300,000 tpa for a useful lifespan of 50 years.

Additionally it considers the incorporation of two industrial areas, to increase the production of iodide to 10,000

tpa of iodine equivalent to feed a new iodine plant which will increase iodine production to 10,000 tpa and the

production of nitrate salts at 3,425,000 tpa (equivalent to the production of 1,293,000 tpa of NaNO3).

Complementarily, it would equip the project with a new electrical transmission system and a storage system of

500 l/s of seawater from the Bay of Mejillones, to address the increase foreseen in the productive levels.


Treatment Capacity : No information available.



Labor : 765 workers in the construction phase and 510 workers in the operational

phase.



PROBABLE Expansion Execution EIA approved 2017

Current status : Project with DIA approved in October of 2013. Currently the company indicates

that the project is under evaluation due to market conditions. The

implementation is not estimated before 2017.

http://www.sqm.cl/


3. White Mountain Titanium Corp Project - www.wmtcorp.com

CERRO BLANCO

White Mountain Titanium is the owner of the rutile (titanium) deposit Cerro Blanco, located near the Port of

Huasco, 39 km to the west of the city of Vallenar, in the Atacama region. The name is due to the location of the

deposit on the hill with the same name.

According to the last definition of resources and reserves of the company, it is estimated that the reserves of the

mineral rutile in the deposits for the project are of 81.5 million tons approximately, with an average ore grade of

1.97% rutile (TiO2), and a cut-off grade of 0.8%, as well as a sterile/mineral average of 1.78.

The company´s project considers developing the mineral resources through the process of conventional open mit

mining with a development rate of 4 million tons per year of rutile mineral, equivalent to an average total material

use (mineral and sterile) of 11 million tons per year. The total of the exploitation of the deposits will end in a

period of 20 years and 4 months.

Also, the gravitational concentration, flotation and magnetic concentration plant will produce approximately

135Ktpa of rutile concentrate (TiO2), with an ore grade of approximately 96%. The concurrent feldspar production

considered in the feasibility study will be reviewed by the company in the future.

The project will have an estimated useful lifespan of 24 years, including 6 months programmed only for

acquisitions and detail engineering, 18 months for the construction phase, 21 years for the operation phase, and

1 year for the closing phase.

Resources : 111.5 Mt @ 1.75% TiO2

Treatment Capacity : 17.5 Ktpd of rutile mineral.


Seawater usage : Desalinization plant located close to the Huasco community, with a 980 l/s capacity.

Labor : During the construction phase an average of 765 workers will be hired. During

the operation phase an average of 510 workers will be hired.




Current status : EIA presented in the beginning of 2013 and approved in May of 2015. It is estimated that the implementation will not happen before 2017.

http://www.wmtcorp.com/


ANNEX 5: Units of measurement and abbreviations

Weight and measurements

g Gram

kg Kilogram

t Metric ton

kt Thousands of metric tons

Mt Millions of metric tons

oz Troy ounces

koz Thousands of troy ounces

Moz Millions of troy ounces

lb Pound

Mlb Million pounds

m Meter

km Kilometer

m2 Square meter

m3 Cubic meter

Chemical and mineral elements

Ag Silver

Au Gold

Cu Copper

Cu cát Copper cathodes

Cu conc Copper content in concentrate

CuEq Copper equivalent

Fe Iron

Fsp Feldspar

H3BO3 Boric acid

H2SO4 Sulphuric acid

KCl Potassium chloride

KNO3 Potassium nitrate

LiCl Lithium chloride

NaNO3 Sodium nitrate

Mo Molybdenum

TiO2 Titanium dioxide (Rutile)

Concentration and production rates

gpt Grams per ton

ppm Parts per million

oz/a Troy ounces per year

koz/a Thousands of Troy ounces per year

Moz/a Millions of Troy ounces per year

kg/a Kilograms per year

tph Metric tons per hour

tpd Metric tons per day

tpm Metric tons per month

tpa Metric tons per year

ktpa Thousands of tons per year

Mtpa Million tons per year

Processes and inputs

g/L Grams per liter

kg/L Kilograms per liter

l/s Liters per second

l/m Liters per month

kV Kilovolts

kVA Kilovolts-amperes

GWh Gigawatt-hour

MWh Megawatt-hour

Production processes

Flot Flotation

Lix Leaching

SX Solvent extraction

EW Electro-winning

Money and prices

US$ US Dollar

MUS$ Thousands of US dollars

MMUS$ Millions of US dollars

US$/lb Dollars per pound

cUS$/lb Cents of a dollar per pound

US$/oz Dollars per Troy ounce

Geographic Abbreviations

m.s.n.m. Meters above sea level

UTM Universal Transversal Mercator

Types of societies

Cía. Company

Inc. Incorporated

Int. International

Ltda. Limited

Ltd. Limited

S.A. Limited Liability Company

SCM Contractual Mining Society

CCM Contractual Mining Company

Other

Ind. Industrial

Min. Mineral

RCA Environmental Qualification Resolution

DIA Declaration of Environmental Impact

EIA Environmental Impact Assessment

SAG Semi-autogenous

API Authorization of Investment Projects

PND Business and Development Plan


This report was elaborated in the Department of Studies and Public Policies by

Cristian Cifuentes González

Strategic and Public Policy Analyst

Emilio Castillo Dintrans

Strategic and Public Policy Analyst

Jorge Cantallopts Araya

Strategic and Public Policy Director

August / 2015

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