21/6/2014 Cerro Colorado Copper Mine - Mining Technology

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Producer of Copper
Location Chile
Geology Type Porphyry
Reserve Base
(Indicated)
67mt oxide and 26mt sulphide
Annual
Production
(2008)
106,400t
Mine Type Open cut
Ownership BHP Billiton (100%)
"BHP Billiton's
wholly owned
Cerro Colorado
copper mine lies
within the
Atacama Desert."
BHP Billiton's wholly owned Cerro Colorado copper mine lies within the Atacama
Desert at an altitude of 2,600m east of Iquique, Chile.
The mine is a significant producer of copper cathode for BHP, although
production levels have declined in recent years as grades have declined.
An earthquake in 2005 also caused significant production shortfalls. Production in
FY2008 was 106,400t of copper cathode, compared with 105,800t the previous
year.
Normal production was adversely affected by the high
clay content of the ores currently being mined. BHP
envisages production continuing until 2016, although an
evaluation of hypogene mineralisation now in progress
may see the mine extended further.
The cost and availability of power has affected the
operations of Cerro Colorado and other mines in the
area. To address the problem, BHP has started
construction of an LNG facility to supply gas to the northern grid system, which is
scheduled for completion in 2010. BHP has also signed off-take agreements
underwriting the construction of a 460MW coal-fired power station, due for
completion in 2011. It is hoped that these initiatives will result in a measurable
reduction in costs.
Availability of water is another problem. This is being addressed through various
means including programmes for better water efficiency. A recently built
desalination plant, which supplies water to the sulphide leach plant, offers the
potential for further expansion, BHP says.
Seismic activity is an ongoing concern at Cerro Colorado. Production at the mine
was temporarily suspended in June 2005 following an earthquake, taking eight
months to return to normal production.
Cerro Colorado Copper Mine,
Chile
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21/6/2014 Cerro Colorado Copper Mine - Mining Technology
http://www.mining-technology.com/projects/cerro-colorado/ 2/2
"The Cerro
Colorado mine is
a significant
producer of
copper cathode
for BHP."
BHP's environmental performance was called into question in 2007 when it
received a $90,000 fine from COREMA for breaching environmental permits.
Geology and reserves
Cerro Colorado lies within the oxidised and enriched portion of a porphyry copper
deposit, with ore processed by leaching and SX-EW. Changes compared to
2007 include depletion of production adjusted for reconciliation difference
partially offset by the results of in-fill drilling that provided additional resource and
improved confidence.
As of 2008, Cerro Colorado had indicated oxide resources of 67mt and 26mt of
sulphide. Proven ore reserves were reported for the same period at 47mt oxide
and 28mt sulphur.
Cerro Colorado mining
The Cerro Colorado mine is accessible by public road.
Copper cathode production is trucked to the port at
Iquique, which is privately operated. BHP is the owner
and operator of the mine and holds a mining concession
from the Chilean state that remains valid indefinitely
(subject to payment of annual fees).
Cerro Colorado's facilities for this process include two
primary, secondary and tertiary crushers, leaching pads and solvent extraction and
electrowinning plants. Electricity is supplied under long-term contracts to the
facilities through the northern Chile power grid.
Production
Commercial production at Cerro Colorado started mid-1994, with expansion
following in 1995 and 1998 to grow the mine's crushing capacity, leach pad area
and mine fleet.
Following these expansions, production at the mine was increased to 100,000t
annually. Production was subsequently increased to the nameplate capacity of
120,000t a year with optimisation and efficiency improvements.
Due to lower copper grades of the ore the production is now approximately
106,000t per annum.