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(Opcional)
Presentation
Analysts / Investors
Visit to South America
March 2007
Disclaimer
2
Presentation Content
General Overview
Production
Water & Energy
Key Financials
3
Escondidas Strategy Builds on its Strengths to Maximize Long
Term Value
World
Worlds
Worlds
Largest
Largest
Strong
Strong Copper
Copper Mine
Mine Strong
Strong Cash
Cash
Credit
Credit Flow
Flow
Ratings
Ratings
Strong Low
Low Cost
Cost
Strong
Sponsors Producer
Producer
Sponsors
Diversified
Diversified Stable
Stable
Sales
Sales Base
Base Country
Country
Ability
Ability to
to Unequalled
Unequalled
Manage
Manage Resource
Resource
Expansions
Expansions High
High Quality
Quality
Concentrate
Concentrate
4
Escondida Vision
Be the leading copper mine in the world, creating value and
sustainability through superior performance in the industry in
safety, production, and unit costs.
5
Key Strategic Objectives FY08 F12
6
Worlds Premium Copper Region
BOLIVIA
Tocopilla Chuquicamata
Northern Chiles Atacama Desert,
160 km south east of Antofagasta. Calam a
CHILE
Mejillones
Spence
Antofagasta
ARGENTINA
Chuquica mata
Michilla Lince Spence Taltal
Mantos Blancos Escondida
Lomas Bayas
El Tesoro Zaldivar El Salvador
Andacollo El Indio
Los Pela mbres
El Soldado Andina
7
Zaldivar Leach
Pads
Escondida
Norte Pit
Zaldivar
Pit ESPACIO FOTOGRAFIA
Los Colorados
(Opcional) Concentrator
Escondida
Pit
Hamburgo
Tailings Dam
N
Laguna Seca 2 km
Concentrator
Coloso Filter & Port Facilities
9
Development since the beginning
Sulphide
Leach
ESCONDIDA
NORTE
FY1998
10
Capital Investments
6,000
5,379
5,000 4,723
4,083
3,877
4,000
US$ (000s)
3,703
3,090
3,000 2,574
2,681
2,142
2,000 1,640
1,479
1,165
0
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
19
19
19
19
19
19
19
19
19
20
20
20
20
20
20
20
Fiscal Years
11
Worlds Largest Copper Mine
Chuquicamata
KGHM Polish
Copper
PT Freeport
Indonesia
Collahuas i
Morenci
El Teniente
Norilsk
A ntamina
Los Pelambres
Cerro Verde
Radomiro Tomic
Copper production (Contained Cu 000 tonnes) Source: Brook H unt, Copper Costs: Mines & Proj ects 2006 editi on
12
2007 Production League Ranked on C1 Cash Cost by Minesite (Pro Rata Costing)
200.0
Escondida Minesite
150.0
US c/lb
100.0
50.0
0.0
0 5000 10000 15000 20000 25000 30000
Cumulative Product ion (Mlbs)
Source: Brook H unt, Copper Costs: Mines & Proj ects 2006 editi on
Pro-rata Costing i n which cost at each s tage are allocated to each metal pro-rata to its contribution to net rev enue ( e.g a metal that c ontributes 30% of
net revenue is alloc ated 30% of shared cost)
13
Diversified Customer Base
Sales by Destination - 2006
Copper Cathode 11%
Canada 6%
Net herlands 7%
Chile 11 % Me xico 6 %
China 7% Franc e 9%
India 18%
Chile 15%
China 16%
14
Sponsored By Worlds Premier Metals & Mining
Houses
Mitsubishi Corporation 70%
BHP Billiton Limited International Finance
Rio Tinto Plc Mitsubishi Materials Corp 10%
Corporation
100% 100% Nippon Mining & Metals Co Ltd 20%
2.5%
Owners Council
Minera Escondida
Limitada
15
MEL Organization
Presidente
Bert Nacken
Manager Legal
Alejandro Canut de Bon
Hugo Rojas Patricio Barros Marcelo Villouta Pedro Damjanic Jorge Muoz Alfredo Atucha Andres Hevia
16
Human Resources
Expatriates 2 2
17
Total Recordable Injuries Frequency Rate (TRIFR)
Escondida & Contractors (3 & 12 month rolling)
9 4,5
8 4
7 3,5
Number of injuries by category .
3
6 3
5 2,5
1 3
4 2
3 2 2 2 1,5
5 1 1 3 1
2 2 1
1 3 3 1 1 3 3
1 2 2 2 2 2 2 2 2 2 2 0,5
1 1 1 1 1 1 1 1
0 0
05
06
06
5
06
06
07
5
6
-0
l- 0
-0
-0
-0
-0
-0
-0
l- 0
-0
-0
-0
-0
-0
-0
-0
-0
-0
v-
n-
r-
n-
c-
b-
ov
ar
pr
ar
go
ep
ne
eb
go
ep
ne
ay
ic
ay
ct
ct
Ju
Ju
Ab
Ju
Ju
No
Fe
Di
D
M
M
A
O
N
M
M
A
E
F
Number of Fatalities Number of LTI Number of Medical Treatment TRIFR 12 Month Rolling TRIFR 3 Month Rolling
18
Community Engagement Approach
19
Main Community Projects - FY07
Corporate Affairs
20
Main Community Projects - FY07
Playgrounds (3) and Nursery Houses (12) construction at Antofagasta and Calama.
Alliance with National and Local Government and National Council of Playground Facilities for 528
Childs from lower income families. This project is being supported by the President Mrs. Bachelet.
21
Escondida Mine Pit
22
FINAL (Main Pit) Dimensions
Distance NS 4.8 km
Distance NS 2.6 km
25
Reserves as at end June 2006
Ore Reserves As at June 2006
Escondida Proved (G) Probable (H) Total (G+H)
Ore Type Cut-off Tonnes TCu Tonnes TCu Tonnes TCu
m illions % millions % m illions %
Su lphide Variable 555 1,18 846 1,00 1.401 1,07
Sulphide leach Variable 592 0,51 994 0,51 1.586 0,51
Oxide 0.2 69 0,67 (*) 15 0,55 (*) 85 0,65 (*)
Total 1.217 0,82 1.856 0,73 3.072 0,77
Escondida Norte
Ore Type Cut-off Tonnes TCu Tonnes TCu Tonnes TCu
m illions % millions % m illions %
Su lphide Variable 149 1,55 321 1,34 470 1,41
Sulphide leach Variable 59 0,55 549 0,61 608 0,60
Oxide 0.2 5 1,20 (*) 20 1,14 (*) 25 1,15 (*)
Total 213 1,27 890 0,89 1.103 0,96
Total Reserves
Ore Type Cut-off Tonnes TCu Tonnes TCu Tonnes TCu
m illions % millions % m illions %
Su lphide Variable 704 1,26 1.167 1,09 1.872 1,16
Sulphide leach Variable 651 0,51 1.543 0,55 2.194 0,53
Oxide 0.2 74 0,71 (*) 35 0,88 (*) 109 0,76 (*)
Total 1.430 0,89 2.745 0,78 4.175 0,82
Ore reser ves ar e based on i nfor mati on c ompiled by P Fehlandt (CP), who is a member of the Aus tralian Institute of Mining and Metallurg y. Mr
Fehlandt is empl oyed by Minera Escondida Limitada. H e has s ufficient experience with the esti mation, ass essment, evaluation and ec onomic
(*) Sol. Cu extraction of large sc ale c opper mining operations and proj ects. This experience is relevant to the style of mi neralizati on and t ype of deposit
under consideration and to the acti vity whic h he is undertaki ng, and as s uch he qualifies as a Competent Pers on as defi ned in the 1999 Edition of
the 'Austral asian Code for Reporting of Explorati on R esults, Mineral Res ources and Ore Res erves'.'
26
Escondida Mining Fleet - Dec 2006
Drills Total 18
- 49R R2 R3s (10), DMM2s (2), D M45 (3), C M780 (1) & 250XPs (2)
27
MEL Future Growth Options
Exploration:
MEL initiated a brown fields exploration program in 2005 with the objective of
investigation the ore potential of its current tenements (4,000 sq. kms
approx) around its operations.
28
Presentation Content
General Overview
Production
Key Financial Numbers
Water & Energy
29
General Diagram
Concentrator Plants
Crusher
Main Pit Pit Escondida
Norte
Copper Concentrate Puerto Coloso
Stock
Sulphide
Dumping
SX Sulphide
Copper
Stock Cathodes
xide
Crusher Oxide
Puerto Antofagasta
30
Copper Production 000s of tons of copper Payable
1400
1,283
1,159 116
1200
'000s Tonnes of Production of Cu Payable
1,047
152
967
1000
866 867 151
831 847
151
56 741
800 145 137
151 592
600 1,167
87
1,008
831 896
400 810 817
702 730
591
505
200
0
1998 1999 2000 2001 2002 2003 2004 2005 2006 YTD Dec
06
Fiscal Years Concentrate Cathodes Total
31
Mine earth movement 000s TPD (ex-Pit)
1200
1026 1009
1000 901 906
835 814 834
800 725
'000s Tonnes per Day
678 681
600
400
200
0
1998 1999 2000 2001 2002 2003 2004 2005 2006 YTD Dec
06
Fiscal Years
32
Copper Production in Concentrate
& Head Grade
Tonnes milled (00 000t) Production (Cu Contained) (kt) Headgrade (%)
1. 200 3,00%
1. 000 2,50%
800 2,00%
600 1,50%
400 1,00%
200 0,50%
0 0,00%
FY91 FY 92 FY93 FY94 FY95 FY96 FY 97 FY98 FY99 FY 00 FY01 FY02 FY03 FY04 FY 05 FY06 YTD
Dec-06
33
Los Colorados Concentrator
Plant
34
Concentrator Plants
Water
SAG Mills
Ore Water
Pebbles
Ball Mills
Flotation Rougher
Tailings Recovery
Water
Agua
Thickener
Tailings
Remill
Flotacin Cleaner
Scavenger Thickener
Tailings
2 Cleaner Flotation
Concentrator
Thickener Recovery Water
Concentrator
to Coloso
35
Los Colorados Production 000s TPD milled
140
120
100
'000s Tonnes per Day
80
20
0
1998 1999 2000 2001 2002 2003 2004 2005 2006 YTD
Dec06
Fiscal Years
36
Laguna Seca Concentrator Plant
37
Laguna Seca Production 000s TPD milled
140
120
100
'000s Tonnes per Day
80
60 118
109 114
97,7
40
51,5
20
0
2002 2003 2004 2005 2006 YTD Dec06
Fiscal Years
38
ESPACIO FOTOGRAFIA
(Opcional)
4000
3500
3000
'000s Tonnes Shipped
2500
2000
3,425
1500 2,994
2,617
1000 2,073 2,145 2,105 2,056
1,813 1,682
1,465
500
0
1998 1999 2000 2001 2002 2003 2004 2005 2006 YTD Dec
06
Fiscal Years
40
Escondida SX-EW Oxide Plant
41
Flowsheet (Oxide & Sulphide Leach)
Mine
Raffina te
Mine
Ac id
Primar y Stock pile
PLS
Se cundar y Tertiar y
Crushing Cr us hing
Acid Wa te r
Silo
Ra ffinate PLS
E
Agglome ration
Ra ffinate
ILS Loaded Solv ent Str ippe d
A cid Extra ction
Lea ching Or ga nic Organic
Wate r
S
PLS ILS
Raffina te
E
Pipeline
1 7 km
S
E.R E.P E.P E.R
Power
Power
42
Production 000s Tonnes of Cathodes
160
140
120
100
'000s Tonnes
0
1999 2000 2001 2002 2003 2004 2005 2006 YTD
Dec06
Oxide S.Leach
43
Sulphide Leach Cu production in FY07
35000
Copper Production cummulative
30000
25000
20000
15000
10000
5000
0
Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06
Month
44
Key Challenges
45
Presentation Content
General Overview
Production
Water & Energy
Key Financial Numbers
46
WATER STRATEGY
47
SING Generation in the near future (2006 - 2010)
Power MW
Installed
3000 --
Generation
GAS
3,600 MW GAS 2,100 MW
2,100 MW
Gas or
Diesel
2000 -- generation Dual-Diesel
needs
800 MWmax
D-F.O.
Diesel-F.O. 300 MW
300 MW
BHPBilliton
1 1 1 2100
2,120 MW New Coal
1000 -- SING 7 8 9
Without MW Plant
Demand 5 5 5 COAL
Gas
0 0 0
1,650 MW COAL 1,550 MW
M M M
1,200 MW W W W
48
2006 2007 2008 2009 2010
Natural Gas Restriction (2004 2007).
N AT URA L GAS R EST RI CT ION S
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
04
06
06
7
-0
-0
-0
-0
-0
-0
-
b-
o-
v-
go
go
eb
eb
ay
ov
ay
ov
ay
o
Fe
Ag
N
N
A
A
M
M
F
F
%DEMAND % RESTRICT IONS
Considering the gas fired power generation installed in the SING and the uncertainty in the
natural gas supply, BHP Billiton defined a strategy to ensure electricity supply at the lowest
possible cost:
The agreements involve the construction and operation of a coal fired thermoelectric plant of
at least 400 MW connected to the SING.
50
Presentation Content
General Overview
Production
Water & Energy
Key Financial Numbers
51
Net Profit $Million
7,000 3.5
1400 1283
1159
1200 1047 3.09
6,000 3.0
1000
800 2. 80
592
600
5,000 2.5
400 4,560
200
0
4,000 FY 2004 FY 2005 FY 2006 Dec 06 YTD 2.0
Payabl e Pro duction
3,000 1. 51 1.5
2,456
1. 15
1, 896
2,000 1.0
1,111
1,000 0.5
0 0.0
FY 04 FY05 FY06 YTD Dec 06
52
Profit & Loss
FY 04 FY 05 FY 06 YTD Dec 06
53
C1, C2 & C3 Cost Components
Cost C1
+ Cash Cost
- Deferred Stripping inventor y increase
+ Inventor y movements (Concentrate + Cathodes)
+ Treatment & Refining Charges
+ Concentrate Shipment Charges
+ Cathode Shipment Charges
- Gold and Silver revenue
Cost C2
+ Total C1 Costs
+ Depreciation
+ Deferred Stripping amortization.
+ Amortizations
Cost C3
+ Total C2 Costs
+ Interest Expenses
+ Interest Income
+ Exploration Costs
+ Other Expenses / Income
54
C1 Costs
0.80
0.70
0.609
0.60 0.565
0.50
cUS$/lb Cu
0.40
0.680
0.30 0.592
0.479
0.20 0.425
0.10
0.00
FY04 FY05 FY06 YTD Dec 06
C1
55
Business Excellence Benefit
000' US$
150,000
119,272
120,000
45,633
90,000
74,951
Revenue Cost
56
Cash Flow before Funding & Dividends $m
US$Millions
4,000
3,447
3,500
2,982
3,000
2,500
Cash Flow
2,000 Capex
1,500
1,280
1,080
1,000
713
652
500
206 173
0
FY04 FY05 FY06 YTD Dec 06
57
Taxes Paid
2,500
2,000
US$5.676m.
Million US$
1,000
500
0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
TOTAL 0 3 129 71 138 155 253 331 119 165 182 84 39 118 617 861 2,411
Royalty 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 266
WHT Dividends 0 0 82 35 48 44 141 188 87 115 114 66 20 30 303 329 1,148
First Category 0 3 46 36 91 111 112 143 32 50 68 17 19 88 314 532 997
58
Debt Maturity Profile
59
THANKS
60