Antamina 2010
Antamina 2010
Antamina 2010
September 2010
http://www.antamina.com
Agenda
Antamina Overview
Peruvian Context
Operations & Operational Excellence
Value Creation & Expansion
2
Senior Management
3
Safety Briefing Andino Hotel
Forward Looking Information
These slides and the accompanying oral presentation contain certain forward-looking statements
within the meaning of the United States Private Securities Litigation Reform Act of 1995 and
comparable legislation in other jurisdictions. Forward-looking statements can be identified by the
use of words such as plans, expects or does not expect, budget, scheduled, estimates,
forecasts, intends, anticipates or does not anticipate, or believes, or variation of such words
and phrases or state that certain actions, events or results may, could, should, would, might
or will be taken, occur or be achieved. Forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause the actual results, performance or
achievements of Antamina to be materially different from future results, performance or
achievements expressed or implied by the forward-looking statements. These forward-looking
statements include statements relating to our future, production, sales, earnings and cash flow,
statements as to managements expectations, among other things, future supply, demand and
prices, business and financial prospects, mine life and mineral reserves and resources, future
trends, plans, strategies, objectives and expectations, including with respect to future operations
and projects, demand and the sensitivity of Antaminas earnings and cash flows to changes in
prices, and overall financial results.
These forward-looking statements involve numerous assumptions, risks and uncertainties and
actual results may vary materially. These assumptions include, but not limited to, general business
and economic conditions, supply and demand for inventories, the level and volatility of prices of the
metals and minerals produced by Antamina, operational and input price assumptions, ongoing
relations with employees, partners and joint venturers, the future operational and financial
performance of the company generally, and the accuracy of Antaminas reserve and resource
estimates (including with respect to size, grade and recoverability). There can be no assurance that
Antamina will be able to convert such material to proven or probable reserves or extract such
material economically despite the fact that a Qualified Person has calculated reserves in
accordance with Canadian Institute of Mining definitions and guidelines.
4
Competent persons
The Mineral Resource information pertaining to Antamina referenced on Slide 13 in this
document is based on information compiled by Jhon Espinosa who is a Member of the
AusIMM and a full-time employee of Compania Minera Antamina. Mr. Espinoza has sufficient
experience which is relevant to this style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking to qualify as a Competent Person as
defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves (The JORC Code). Mr. Espinoza consents to the
inclusion in this document of the matters based on his information in the form and context in
which it appears.
The Ore Reserve information pertaining to Antamina referenced on Slide 13 in this document
is based on information compiled by Americo Zuzunaga who is a Member of the AusIMM and
a full-time employee of BHP Billiton. Mr. Zuzunaga has sufficient experience which is relevant
to this style of mineralisation and type of deposit under consideration and to the activity which
he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the
Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves (The JORC Code). Mr. Zuzunaga consents to the inclusion in this document of the
matters based on his information in the form and context in which it appears.
5
Shareholders and Structure
Peruvian Company
incorporated in 1996
Shareholders
BHP Billiton 33.75%
Xstrata 33.75%
Teck Resources 22.50%
Mitsubishi 10.00%
Operated as joint venture
company with shareholders
approval
6
Antamina Location
270 kilometres NE of Lima in Ancash region
4,200 to 4,700 metres elevation
302 km concentrate
pipeline to Port
Punta Lobitos
Excellent
Infrastructure
7
Key Corporate Value:
Management of Risks
Emphasis on risk management; policies, systems, controls, and
performance measures through SIGRA system (Enterprise Wide)
8
Key Corporate Value:
Health and Safety
20.0 19.5
18.0
16.0 15.5
14.0
12.0
10.0
8.8
8.0
6.8
6.0
4.6
4.0 3.3 3.4 2.9 2.9
2.0 2.75 2.56 1.15 1.53 1.38 1.19 0.92
1.75 0.98
0.0
2002 2003 2004 2005 2006 2007 2008 2009 2010YTD
RecordableInjuries LTI
10
Voluntary Social Contribution
Antaminas participation in a voluntary contribution program
began in 2006 and runs through 2010.
The agreement is in effect for each year that the LME copper price
is over US$1.79/lb and adjusted for US PPI
For 2009/10 the adjusted price threshold was ~$2.00/lb
11
After the Stability Agreement (2016+..)
A 19% Value Added Tax (IGV) netted against value of goods sold (no change)
Net effect continues to be effectively zero
12
Antamina Operations Vast Resources
A Major skarn deposit: Cu, Zn, Ag, Mo, Pb, Bi
13
Antaminas Mineral Resources (100% Basis)
Cu Zn Ag Mo
New Reserves - Jul 1/08 Ore (MMt)
(%) (%) (g/t) (%)
Pit Vertical View
Proven Copper Ores 100 1.14 0.17 8.7 0.036
Proven Copper Zinc Ores 42 0.99 2.30 19.5 0.009
Probable Copper Ores 454 1.05 0.17 9.7 0.031
Probable Copper Zinc 149 1.05 2.07 17.9 0.008
Ores
14 Competent PersonReserves: Americo Zuzunaga, MAusIM Competent PersonResources: Jhon Espinoza, MAusIMM
Antamina Operations - Mine
Material moved:
150+ mmt / yr
15
Antamina Operations - Concentrator
Batch processing of Cu and Cu/Zn ores Design feed rate of 70,000 tpd,
recent records of 130,000 tpd
SAG mill and 3 ball mills, with sequential flotation of Bulk Cu and Zn concs.
Bulk Cu concentrate is further treated to produce a Mo. Conc or Pb/Bi conc.
Products
Cu and Zn Concs
Moly and Pb/Bi Conc
Ag credits
Cu and Zn concentrates
by pipeline to port
Mo and Pb/Bi concs
bagged & transported by
road
16
Antamina Operations - Port
302 km pipeline feeds to storage tanks
18
Sales Profile - 2009
~ 75% of sales to 12 Long-term customers
Remaining tonnes sold under spot and short-term Contracts
Long-term Sales contracts expire in 2014 (will not be renewed)
Bulgaria Belgium
Canada
Chile
USA
Canada 106,886 Norway
186,947 India 13%
17% 207,237
18%
20
Community & Political Overview
21
Political & Economic Overview
22
Political & Economic Overview
In Ancash Region
President Cesar Alvarez lead in the polls has eroded as a results of
various corruption scandals.
In San Marcos, 13 candidates competing for office.
23
Antaminas Area of Influence
Social Responsibility Structure
Asociacin Ancash
Community Relations
(Antamina and external & Environment Departments
directors)
SOCIAL Operational area
Local and regional area RESPONSIBILITY
Communication
Tourism
Trust & Confidence
Culture
Meeting Commitments
Environment
25
Antaminas Mining Fund
"Mining Program of Solidarity with the People created in Dec 2006 for 5yr life
Institutional capacity
9 FMA partners with communities building, Infrastructure
77.2 39.4% 56.8 41.0%
27
Health / Nutrition: Achievements
28
Education: Achievements
29
Productivity & Infrastructure: Achievements
Conchucos connected to national grid with benefit to 400+ towns and communities,
and completed design for construction/rehabilitation of 1,160 km. of roads.
30
Antamina:
Operations, Expansion & Value Creation
September, 2010
Mine Operations - Pit status end 2010
Extensive Pit and Dump development activities
Tucush Dump
Phase 6
East Dump
Pioneering
Phase 4 Phase 5
Phase 3
Phase 7
Pioneering
Crusher
Antamina
Work commenced July 2009
32 Valley
Pit status end of 2011
Tucush Dump
Phase 5
East Dump
Phase 6
Phase 4
Phase 3
Phase 7
Crusher
Antamina
33 Valley
Mine Operations
Mine Production Records:
2009 Tonnes Moved in a year 147.5 mmt
2009 Avg tonnes moved per day 404 kmt
2010 (May, Aug) Tonnes moved in a month 13.7 mmt
420 404
160,000 393
400 388
147,453 376
150,000 143,704 368
141,971 380 370
140,000 135,094 137,109
134,406 348
360
127,036 125,948
345
130,000 340
120,000 320
110,000 300
100,000 280
90,000 260
80,000 240
220
70,000
200
60,000
2002 2003 2004 2005 2006 2007 2008 2009
2002 2003 2004 2005 2006 2007 2008 2009
TotalMaterialMovedperday('000t)
TotalMaterialMoved('000t)
34
Mill Feed & Concentrate Tonnes
Mill Production Records:
2009 Throughput - yearly 147.5 mmt
2010 (Jan, May, Jul) Throughput - monthly 3.37 mmt
2010 (Jun, Jul, Jul) Throughput - daily 132,040 mt
2010 Throughput records M1, M4A, M5
35,000 800
Throughput Cu / Zn Production (contained metal)
700
30,000
600
25,000 9,746 6,291 6,591 9,931
9,267 11,333 16,545 457
17,064 348
500
185 156 292
20,000 231 190
363
400
15,000
300
10,000
200 375 385
331 362 330 344 316
17,482 20,697 21,197 22,356 19,552 18,492 14,992 253
5,000 9,347
100
2002 2003 2004 2005 2006 2007 2008 2009 2002 2003 2004 2005 2006 2007 2008 2009
CuOnly('000ton) CuZn('000ton) Bornite('000ton) Cu(kMT) Zn(kMT)
Zinc production volumes track feasibility study - production was to peak in 2008-
2010 timeframe
Moly production increases with pit development & treatment of more Cu only ores
$0.40
HistoricalSales
2,000 18.0 $0.30
1,800 16.0 $0.20
1,600 14.0 $0.10
1,400
Cu/Zn(Kdmt)
12.0
$0.00
Mo(Kmt)
1,200
10.0 2002 2003 2004 2005 2006 2007 2008 2009
1,000 $0.10
8.0
800 $0.20
6.0
600 $0.30
400 4.0
$0.40
200 2.0
$0.50
0
2002 2003 2004 2005 2006 2007 2008 2009 $0.60
Copper Zinc Moly C1Cost($/lbofCu)
36
Demonstrated Performance
Operational Excellence Model
g
2010 EBIT impact from current &
M ax im iz a r e l v a lo r
d e A nta m in a , c o n re su ltad o s
po s it ivo s pa ra to do s lo s gru p os d e in ter s
past year projects: ~ $50mm
Forjando
F orjandoRResesultados
ultados Estratgicos
EstratgicosLO
LOMM, ,Plan
Plande
de55AAos
os
I
S alud y
Seg u ridad
De sa rro llo
S oste n ib le
D e sa rrollo
de
P ers o nas
Exc ele nc ia
o pe ra cio na l
Crea ci n
d e Va lo r t Current Projects Benefit
Ind u str ia l e
Reduction of Shovel shutdown due Gets Throughput
changes. Increase
Enunciado
EnunciadoAudaz
Audaz, ,AActa
ctaCConstitutiva,
onstitutiva,
Valores Increase production during first and last hours Throughput
Valoresde
deAntam
Antamina,
ina,FForjando
orjandoAntam
Antaminaina
in Hauling process at Mine. Increase
Throughput
Reduction of Trucks queue time in Shovels.
Increase
Reduction of fuel consumption on 793 Cat fleet
Cost Reduction
Continuous Key Process Improvement - Turning engines off.
Reduction of pickup time of Trucks after Throughput
4.Control 3.Improve maintenance. Increase
Throughput
Reduce the absentism rate in Mine operations.
KPIs 6Sigma Increase
37
Demonstrated Performance
Mine to Mill project: modified blast pattern & improved rock fragmentation
SAG bypass feed system & Implementation of pebble crusher
Modifications to grate sizes in SAG, trommel screens, and pulp lifter - further
increases throughput reduces recirculation
2,592
2,500
50,000
2,000
40,000
2002 2003 2004 2005 2006 2007 2008 2009 2010
2002 2003 2004 2005 2006 2007 2008 2009 2010
YTD
CuOnlyore(t/hr) CuZnore(t/hr) YTD
39 DailyThroughput(t)
Benchmarking Antamina
1st
2Q 3Q 4Q
Quartile
Ranking
KPI Antamina
Energy Consumed
Quartile Antamina Placement
per Lb of Cu 1
Total Cost/lb Cu 1
1st 15 Cost C1P 1
Cost C1 1
Cost C2 2
2nd 15 Cost C3 1
3rd 6 Ranking
KPI Antamina
4th 0 Concentrator Milling
Costs 2
Total Costs -
TOTAL 36 Concentrator 2
Unit Costs - Crushing 2
Copper production per
person 4
40
Base Metals Assets Cost Position
Antamina
Source: Brook Hunt Q2 2010, 2010 C1 Cash Cost (Normal Costing). Adjusted for Pampa Norte
41
Antaminas Growing.
2007-2008 Geological Survey
220 km of drill holes in
07/08 - 50% used for
Reserve/Resource
increase
Significant # of targets
around mine
44
Expansion Business Case
Mensaje principal no mayor de 45 caracteres
Expansion builds upon demonstrated processes, technologies, and existing
infrastructure. Original facility design contemplated a future expansion
The expansion provides for mitigation against the production continuity risk
with 2 lines of production
Latest EIA has been presented in public hearings without significant issues
45
Expansion Program - Scope
46
Process Plant Stockpile, Milling & Flotation
47
Truck Shop & Mine Fleet
Truck Shop Mining Fleet
1. Addition of 5 bays and 1 PM bay for Item Quantity
49
Expansion Program Impact
Cu ore feed increases 80%+ over remaining LOM vs. 2007-2009 base
MillFeed
51
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