QUELLAVECO: A SUSTAINABLE PROJECT - TOM MCCULLEY, CEO PDAC - TORONTO, MARCH 2019 - ANGLO AMERICAN
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
QUELLAVECO:
A SUSTAINABLE PROJECT
Tom McCulley, CEO
PDAC – Toronto, March 2019
1
CONTENTS
1. Generating trust for a long-term commitment
2. Peru: An attractive mining jurisdiction
3. Long-term relationship with Peru
4. Project location
5. Contribution to Peru
6. Our Global Sustainability Pillars
7. Committed to working with local communities
8. Dialogue Table commitment progress
9. Major permits in place
10.Local employment and local procurement
11.Social development aligned with Sustainable Development Goals
12.Delivering improved quality and volume of water
13.Quellaveco on track
2
GENERATING TRUST FOR A LONG-TERM COMMITMENT
1 Safety: Our first priority
2
Innovative and sustainable water strategy for Quellaveco to
provide benefit to communities
3 A strategic partner for the development vision of Moquegua
A collaborative and transparent relationship with regional
4
and national Government
Established history of respectful and responsible behaviour
5
to communities
Closely aligned to United Nations Sustainable Development
6
Goals and Global Compact and Voluntary Principles
We
7
Committed to an impactful and sustainable operation, contributing to a
better future for Moquegua and Peru
3
PERU – AN ATTRACTIVE MINING JURISDICTION
The world’s second largest producer of copper, Peru has become increasingly stable over the
with mining accounting for ~10% of GDP past two decades
• Strong and sustained economic growth
• Until 2015, gross domestic product
increased on average by 5.3%
• In 2018 gross domestic product is
expected to grow ~4%
• Robust fiscal policy and improved
security
• The mining industry in Peru is well-
established, with a clear policy and
regulatory framework
• Peru ranked 14th in Frasier Institute
2018 Investment Attractiveness Index
(19th in 2017)
• Major global players have large-scale
Quellaveco
investments in Peru, many spanning
decades
4
PERU – AN ATTRACTIVE MINING JURISDICTION
Professionalism of Peru’s mining and promotion Quellaveco Project supported by Central, Regional
institutions facilitate investment and Local government
Global • Government institutions clearly
mining understand how volatile the • Government supports project
industry mining industry can be Central execution, acknowledging
government importance to national economy
• Government institutions
• Legislation supports mining
participate actively in dialogue
Building processes with local communities
trust
• Follow-up on commitment
fulfilment Regional / • Expectant with the project
Local
• Investment Tracking Group • Continuous engagement
government
Investment reactivated at the Ministry of
promotion Finance.
• Key to unlock bottlenecks
The south of Peru is an established mining location
• Early identification of potential
obstacles to move forward with
Ease of permits and authorisations
doing • Fastest growing copper producing region in Peru
business • Better planning to improve
deadlines, with the same level of • Hosts many of the world’s foremost mining
requirements companies
• New Mining Management and • Established infrastructure and skilled workforce
Information Committees track • Clear policy and regulatory framework
Social
commitment fulfilment and help
issues
prevent social unrest (due to non-
compliance or unattended claims) 5
LONG-TERM RELATIONSHIP WITH PERU
Quellaveco: working 2018
in Peru for >25 years FS updated. Investment
2015 Assurance review successful
FS for 127.5ktpd completed.
Mitsubishi acquires
All major permits approved. additional 21.9% stake of
Independent Project Review Quellaveco from AA plc
completed AA plc approves execution of
project
2012
Mitsubishi acquires 18.1%
2010 stake of project from IFC
Pre-FS completed. 1st & 2nd
Dialogue Table completed
EIA amendments approved.
following 18 month process
Early-works initiated
Main permits approved
2008
FS revised for 91ktpd. New
plant location / water source
2000
1992 First Feasibility Study (FS) for
64ktpd, and Environmental Impact
Anglo American
Assessment (EIA) approved
purchase of Quellaveco
6
PROJECT LOCATION
Located at ~3,500m above sea level in south of Peru, 34km from the city of Moquegua
Quellaveco – Key statistics
60%
Ownership:
40%
Peru
Overview
Copper
Lima
Commodities:
(molybdenum by-product)
Mine: Open-pit, 1.3Bt Reserves, 0.57% TCu1
Quellaveco ~9,000 at peak construction
Workforce:
~2,500 steady state operations
Construction time: < 4 years from August 2018
Construction
First production 2022
Commissioning:
Ramp-up during 2023
Permitting: Key construction permits obtained
Capex: US$5.0-5.3bn
Throughput rate: 127.5ktpd
Operation
~330ktpa average first five years
Production:
~300ktpa average first 10 years
Reserve life: ~30 years
7
CONTRIBUTION TO PERU
At national and local level
Investment
US$5.0-5.3bn
25,000 people to US$0.3bn invested
benefit from since project
Development Fund approval (Aug-18)
Will deliver average Canon & royalty
~300ktpa copper eq. income for Moquegua
(first 10 years) will increase >50%
Significant
0.4% GDP growth
investment in water
during 2018 – 2019
infrastructure
>3,800 Moqueguan US$11m invested in
employees currently education, health and
working on the productive projects
Quellaveco
project (2017 – 2018)
8
OUR GLOBAL SUSTAINABILITY PILLARS
SOCIAL ENVIRONMENTAL
GOVERNANCE
9
COMMITTED TO WORKING WITH LOCAL COMMUNITIES
Dialogue Table focussed on three key
…with firm commitments
areas…
Water
Supply and optimal
use of water resources
26
Agreements directly from the Dialogue Table
Environment
Compliance and
monitoring of
environmental
31
Bodies from 3 different municipalities
commitments
Local
stakeholders
Sustainable
~$300m
Community investment commitment over next
development projects
30 years, besides taxes and royalties
10GOOD PROGRESS BEING MADE AGAINST COMMITMENTS
Commitments
No. of
Fulfilled On Track During
Commitments Operation
Water
Supply and optimal
use of water resources
11 4 4 3
Environment
Compliance and
monitoring of
environmental
11 4 6 1
commitments
Local
stakeholders
Sustainable
development projects
4 3 - 1
11ALL MAJOR CONSTRUCTION PERMITS IN PLACE
Major Permits Water Licences
Permits Status Licences Status
Environmental
Impact Study
Construction Water
Authorisation
Beneficiation
Concession
Operations Water
Licence (grant on
Mining Plan start of operations)
Mining Closure
Plan
12LOCAL EMPLOYMENT
Recruitment of Moqueguan candidates is prioritised, with all applications channelled through a
dedicated regional labour office in Moquegua.
Local employment Unskilled labour
3,864 5%
5,371
95%
3,864
5,371
95%
Local Non-local
13LOCAL PROCUREMENT
1,085
721 Local businesses
have been identified
Local businesses
as potential future
benefitted from
303 our training
programmes
suppliers
Local businesses
supplied goods “Progresa
and services to Moquegua” and
the project in “Emerge Perú”
2018
14SOCIAL DEVELOPMENT ALIGNED WITH UN’S SUSTAINABLE
DEVELOPMENT GOALS
• Economic productive development
projects
• Projects to improve agricultural
production
• Projects and programmes to prevent
and reduce anaemia and malnutrition /
Food safety
• Projects to improve education quality
• Projects on technology and innovation
• EMERGE Perú – Business
Development Programme
15DELIVERING IMPROVED QUALITY AND VOLUME OF WATER
TO LOCAL COMMUNITIES
Responsibly sourced water for operations
Water for operational phase to come
from two sources in High Mountain
region:
• 80% (18Mm3) from Titire River: unfit
for human, livestock or agricultural
use
• 20% (4Mm3) from Vizcachas
reservoir:
• 60Mm3 capacity dam and
reservoir under construction
• Operation will use only 4Mm3
p.a.
• Will provide better quality and
volume of water to Moquegua
and Tambo regions
• Water for the operation to be
transported to site via 95km water
pipeline.
16QUELLAVECO ON-TRACK
2018 achievements 2019 priorities
• Asana and Vizcachas river diversions • Substantially complete engineering
complete • Complete earthworks in concentrator
• Asana dam and tunnel complete • First concrete at concentrator
• Main access road complete • Progress HME contracts and awards
• Contracts and procurement significantly • Vizcachas dam
progressed
• 95km water pipeline construction
• Earthwork contracts awarded and
progressing on-site
Committed to working together to make Peru’s vision for mining a reality by 2030 17PHOTO GALLERY
1. Anglo American - Safety Day
2. Asana Barrier
3. Asana River Tunnel
4. Aerial View - Quellaveco Site
5. Salveani Camp
6. Aerial View - Papajune Plant
7. Aerial View - Vizcachas Dam
8. Water Pond for Construction
18ANGLO AMERICAN - SAFETY DAY
19ASANA BARRIER
20ASANA RIVER TUNNEL
21AERIAL VIEW – QUELLAVECO SITE
22SALVEANI CAMP
23AREAL VIEW – PAPUJUNE PLANT
24AERIAL VIEW – VIZCACHAS DAM
25VIZCACHAS DAM SITE
26WATER POND FOR CONSTRUCTION
27THANK YOU
28You can also read
