5able 8-+': 7ummary o; Fres< Cater Distribution Processing #osts = by #ost 5ype '85able 8-+0: Fres< Cater Distribution 7ystem = Distribution o; Direct #osts over L. '2
AD"!EC!gold re;ining and 7A"5 circuits3 5<e total costs related to t<ese circuits and
t<e distribution made to t<e sulp<ide ore processing ;acilities are detailed in document
9****-9+0*-++*-#AL-***+3
7ome costs incurred it<in ;acilities operated by t<e ;lotation processing plant butused by ot<er customers are distributed bacB to t<e end consumers3 5<ese include:
• assaying costs (s<ared it< t<e mine and geology department as ell as it<some gold recovery circuits)
5<e overall estimated costs are presented in 5able 9-+ per cost type and in 5able 9-'
per processing area3 5<roug<put t<is document <ere process operating costs are
noted in 67G!t processed t<ese costs relate to dry tonnes o; sulp<ide ore milled3 5<ere;erenced mine plan per Appendi A is calling ;or +*+838 t o; ore to be processed3
5<e costs re;lect s<aring o; some costs it< t<e oide ore processing by <eap leac<ing
(/L) in particular t<ose related to t<e operation o; t<e AD" gold re;inery and 7A"5
5<e ;olloing sections describe t<e met<odology used to estimate eac< processingcost item and t<e underlying assumptions3 Appendi & is presenting various detailedcost tables per area etracted ;rom t<e detailed eras model3
building all s<ells)3 Eceptions are made o; t<e comminution circuits ;or <ic< t<e
yearly sum budgeted ;or maintenance as derived ;rom ;irst principles and ;or t<e
comminution euipment liners <ic< ere costed on t<e basis o; anticipatedreplacement ;reuency eig<t o; lining sets and steel price3
&@A costs are ecluded ;rom t<e scope o; t<is estimate3
='1'1 a7es a!* Sala$es
Cage and salary guidance as obtained by ## ;rom a #<ilean consultant using a
;irst uarter '**1 job classi;ications and rates survey3 5<e survey as conducted
across several current #<ilean mining operations3 ## indicated t<at t<e same rates
could be maintained ;or t<is cost estimating eercise it< an update to t<e .nersI
currency ec<ange rate guidance ;or .PE estimate ;rom #<ilean Pesos to 6373dollars (#LP98!67G+) and using t<e 8t< percentile o; t<e ;ully burdened peaB L.
rates as salaries3 Data ;rom t<e survey provided ;ully-loaded rates built up ;rom ;ive
di;;erent levels3 Cit<in eac< salary level t<ere are several rate categories all o; <ic<
include bonuses <ealt< insurance and pension alloance3
5<e ;ully-loaded rates ere increased ;urt<er to ;ully-burdened rates by adding
company salary burdens including some #<ilean-speci;ic statutory additions
5<e orB sc<edule assumes mine production and processing ;acilities ill operate
'9 <!d d!B 028 d!a3 .perations and mining personnel ill orB to +'-<our s<i;ts3
/ourly (non-eempt) personnel orB a -days-in!-days-out rotation3 7alaried
(eempt) personnel ill orB a +' <!d s<i;t on an >-days-in!2-days-out rotation3
anagement personnel (general supervisor level and up) ill orB day s<i;ts on a 9-
days-in!0-days-out rotation it< rotating eeBend coverage3 5ec<nical support sta;;
ill orB t<e day s<i;t only ;olloing a rotational roster3
='1' Ele,"$,"6 Cos"s
5<e unit price ;or electricity provided by ## as used to develop t<e poer cost ;or t<e process euipment3 5<ree prices are applicable plus t<ree levels o; o;;-site
5<e sulp<ide processing plantIs electrical costs are based on t<e detailed euipment
list3 Assignment o; operating load per item it< consideration ;or calculated average
demand versus installed poer base ;or crus<ers mills pumps and conveyor motorsincluding circuit utili%ation provided t<e average total mec<anical demand3 5o t<is
value t<e motor electrical e;;iciency ;actor (per motor si%e ;rom 5able 8-9) o;;-site
transmission losses (;rom 5able 8-') and on-site losses (;rom 5able 8-0) ere added to
derive a net payable consumption3 5<ese data are provided in t<e mec<anical
euipment list in Appendi D3 5<e resulting poer costs are based on t<e average ore
<ardness ;eed grades and nominal plant t<roug<put3
Ta3le =-? Ele,"$,al Mo"o$ E)),e!,6 Ta3le
Mo"o$ Na5e(la"eB
E)),e!,6:B
Q9** 13*O9** = Q++* 123*
O++* = Q88 183*
O88 = Q98 193*
O98 = Q0* 103*
O0* = Q'' 1'3*
O'' = Q+8 1+3*
O+8 = Q++ 1*3*
O++ = Q38 >13*
O38 = Q838 >3*
O838 = Q9 >23*
O9 = Q'3' >03*
O'3' = Q+38 >3*
O+38 = Q*388 93*
*388 +3*
=' %lo"a"o! Pla!" Pe$so!!el
5<e salary levels ;or sta;; operations and maintenance personnel are based on
in;ormation provided by ##3 5<e individual ;ully-burdened ages ere derived ;rom
t<e classi;ication system provided by ##3
5<e total number o; sta;; is comparable to levels at similar large scale porp<yryoperations in #<ile it< adjustments ;or t<e plant con;iguration and t<e <ig< altitude at
#erro #asale3
5<e operations cres ill provide '9! coverage3 aintenance cres ill orB on day
s<i;t only ecept ;or a cre o; one supervisor it< ;our millrig<ts and ;our <elpers
$ote: + Ai is t<e eig<ted value ;or t<e mine plan ore composition' ?enc<marBed ;rom similar duty at ot<er copper porp<yry plants0 Average value ;or nine limestone processors as reported by ?ond it< 0* discount ;or use
as made based on t<e mass balance at t<e average ;eed grade ;or t<e regrind mill
and at lime consumptions o; +32' Bg!t o; ;lotation plant mill ;eed (combined ;lotation
#4L cyanide destruction circuits and allocated costs ;rom 7A"5 and gold recoverycircuits) and '3>+ Bg!t o; oide ore3 5<e consumption ;igures assume a uicBlime
supply it< 2 available #a. as indicated by data provided by ?arricBIs purc<asing
department3
='' Rea7e!"s
5<e reagent consumptions associated it< t<e ;lotation circuit are based on t<e
testorB program completed at t<e &@5 and 7&7 laboratories in '**> including t<e
pilot plant trials at 7&7 and consideration o; t<e additional orB completed at 7&7 in
'**13
"eagent use ;or t<e #4L circuit as derived ;rom testorB completed by 7&7 in '**13
Flocculant consumptions ere estimated ;rom t<icBening tests completed by .utotec
on pilot plant samples provided ;rom t<e 7&7 LaBe;ield testorB in '**>3 5<e use o;
#ibaIs agna;loc 08+ ;or all t<e plant-site reuirements is epected <ile t<e
consumption at t<e port site ill be covered by t<e slig<tly more e;;ective agna;loc
002 or t<eir euivalent ;rom anot<er provider3
5<e reagent consumptions ;or t<e cyanide destruction circuit are based on testorB
data obtained ;rom 7&7 orB in '**1 on #4L tailings3 5<e additional ;lo treated
t<roug< cyanide destruction ;rom t<e 7A"5 circuit neutrali%ation residue is minimal (interms o; overall cyanide load) and similar stoic<iometric reuirements ere used as ;or
t<e #4L slurry3 5<e stoic<iometric proportion o; sulp<ur present in sulp<ur dioide used
in t<e cyanide destruction circuit as converted into consumption o; elemental sulp<ur
(t<e reagent used to prepare t<e sulp<ur dioide solution) it< a conversion e;;iciency
o; >*3
5<e antiscalant addition rate is based on providing a concentration o; 8 ppm to t<e
process ater stream3 5<is is in t<e mid-range o; normal reuirements to so;ten
industrial ater according to t<e supplierIs tec<nical data s<eet3 5<e consumption is
based on a volume o; treated ater o; 81+ L!s (t<e average volume o; ;res< ater
introduced into t<e circuit)3
5<e detailed reagent pricing consumptions and costs are s<on in 5able 8-13 5<e
data include t<e trans;erred costs o; reagents used ;or t<e s<ared operation o; t<e
AD" and 7A"5 circuits it< t<e /L ;acilities3 5<ese circuit operations are detailed in
document 9****-9+0*-++*-#AL-***+3 5<e data do not include t<e reagents used in
• metallurgical development orB samples eit<er ;rom plant surveys or ;romlaboratory scale testorB conducted in t<e metallurgical laboratory at site (8*samples)
• 7A"5 per;ormance samples (> samples)
• AD" per;ormance samples (+* samples)
• Environmental control samples (8 samples)
.; t<e daily total o; 0> samples >* samples per day are t<ere;ore allocated to t<e
process plant reuirements and a ;urt<er +> are s<ared beteen /L and concentrator
to ;ollo on t<e per;ormance o; t<e gold plant (+* samples) and 7A"5 circuit (>
samples)3
5<ose received ;rom t<e geological and mining groups are included in t<e total assay
supply cost o; 67G*3*01!t but are t<e source o; a credit to t<e concentrator o;
67G*3*'!t ;or assay supplies and t<e s<are o; t<e <ourly personnel salaries and
5<e calculation o; t<e spare parts cost is based on a yearly amount derived using t<e
#APE cost base represented by all process related euipment piping electrical and
instrumentation <ardare cabling pipe and cable trays lig<t structural steel and all
cladding o; buildings ;or eac< process area3
5<e amounts ;or t<e comminution circuits ere derived ;rom a ;irst-principles approac<
<ere individual pieces o; euipment ere analy%ed ;or t<e type o; replacement or
repairs reuired t<e ;reuency and t<e cost o; eac< repair in parts and materials3
ost major spare parts ere costed ;rom t<e pricing indicated in t<e budgetary
euipment bids received3 Additional contacts it< some vendors ere made to
complete t<e list o; parts reuired3
For t<e rest o; t<e plant areas a percentage as applied against t<e capital cost base
o; t<e euipment in eac< area3 5<e percentages vary beteen t<e various plant areas
re;lecting t<e type o; duty represented3
5able 8-++ indicates t<e parameters and t<e #APE per area3 5rans;er o; credits ;or
s<ared use o; t<e ;res< ater distribution system and lime preparation system as ell
as allocated costs ;rom use o; t<e AD" and 7A"5 circuits are accounted3 5<e
resulting unit cost ;rom applying t<e data in 5able 8-++ is a maintenance spares and
materials cost o; 67G*3>9!t3 5<is total ecludes spare parts ;or mobile euipment
maintenance reported separately (67G*3*'1!t) and related costs ;or pipeline andpoer generation turbine s<on under .t<er #osts in 5able 9-+ (67G*3*81!t)3
5<e costs ;or spare parts tires and lubricants to operate t<e ;leet o; mobile euipment
assigned to t<e mill as establis<ed as an <ourly cost based on benc<marBed data
it< utili%ation rates assigned to establis< actual ;uel consumption3 Eac< euipment
type is costed per t<e detailed cost s<eets developed per euipment type3
5<e age o; an operator ;rom t<e sur;ace cre ;or operation o; t<e maintenance crane
or t<e do%er on t<e coarse ore stocBpile <en reuired and t<e age o; a boom trucBoperator ;rom t<e maintenance cre eternal to t<e mill maintenance group ere
added to t<e processing costs as c<arges trans;erred ;rom t<ese departments3 Drivers
;or t<e personnel buses commuting beteen t<e mine and camp sites as ell as t<e
maintenance personnel assigned to maintain t<e buses also appear in t<e processing
5<e resulting mobile euipment maintenance cost estimate s<on in 5able 9-+ is
67G*3*'1!t inclusive o; t<e AD" and 7A"5 circuit costs allocated to t<e concentrator3
Maintenance Contractors
A series o; repetitive maintenance tasBs ill be per;ormed during planned s<utdons
o; one grinding line or mill3 7ince t<ese are regular but in;reuent occurrences t<is
orB ill be assigned to contractors instead o; increasing t<e si%e o; t<e permanent
mill maintenance cre3
CorB <ours ;or contractors <ave been added into eac< sc<eduled s<ut-don period to
carry out major repair orB euipment rebuilds and structural repairs3 5<e tasBs are
analy%ed in 5able 8-+' it< estimates o; ;reuency cre si%e and tasB duration to
derive a total yearly cost3 A mobili%ation!demobili%ation alloance o; ;our <ours per trip
as built in alt<oug< it ould liBely be re;lected by <ig<er <ourly rates c<arged by t<e
contractor instead o; being an actual payment ;or <ours spent in transit3
A cost o; 67G+13'*!< ;or t<e millrig<ts and <elpers (provided by contractors) <as
been estimated ;rom ##Is age rates it< adjustments to t<e bene;its and t<e
addition o; pro;it3 7upervisors ere assigned a rate tice t<e rate ;or t<e cre
(67G0>39*!<)3
5rips by euipment vendor tec<nical representatives ere also included in t<is cost
category at 67G+'*3**!< (a miture o; local and out o; country support)3 A
mobili%ation!demobili%ation alloance o; +' <ours per trip as built in3 5ravel costs
are included in t<e administrative cost alloance3
5<e total ;or contracted maintenance is '999++ <ours per year or over ++ man-
years3
5<e breaBdon o; activities to be completed by or it< t<e assistance o; maintenance
contractors is s<on in Appendi /3 4t is estimated t<at a peaB cre o; almost '*0
persons can be epected on site <en simultaneous manpoer-intensive tasBs are
being undertaBen during partial or complete plant s<utdons3
5<e resulting contractual maintenance costs o; 67G*3**8!t are included in [.t<er
#osts\ in 5able 9-+3 5<e above total does not include t<e costs ;or t<e concentrateand ;res< ater pipeline maintenance <ic< are included under t<e yearly operating
costs o; t<ese ;acilities and appear as ell under t<e <eading [.t<er #osts\ in 5able 9-
An average ater treatment plant (C5P) cost o; 67G+30 per year <as beenestimated ;or t<e treatment o; an average o; +'* L!s o; Piedra PNme% ater o; <ic<
t<e reverse osmosis (".) permeate ill be released at t<e cut-o;; all marBing t<e
property aters<ed boundary and donstream aterays3 Cit< t<e variable yearly
;lorates indicated by t<e site ater balance accounting ;or variation in epected
aters<ed ater supply t<ese costs translate into a unit cost o; 67G*3*98!t o; sulp<ide
ore processed as s<on in t<e overvie in 5able 9-'3
5<e overall C5P costs are included in t<e sulp<ide plant processing costs divided
beteen manpoer reuirements electrical load reagents and maintenance spares
(including replacement o; t<e ". membranes every ;our years)3
Anot<er C5P is located at t<e port site treating t<e surplus process ater generated
;rom deatering t<e concentrate3 5<e reverse osmosis (".) plant is designed to
<andle up to 838 L!s o; ater at a cost o; 67G*3'+>!m 0 treated3 5<is is euivalent to
*3** G!t as reported in 5able 9-'3 5<ese costs are added to t<e sulp<ide ore
processing costs3
=''; P(el!es
5<e detailed operating costs provided by ?rass-5ec<int <ave been divided into
manpoer and electrical costs3 5<ese elements are s<on in t<e tables above eit<er
as part o; t<e ;res< ater system or t<e port and deatering ;or t<e concentratepipeline3 5<e balance o; t<e reuirements related to maintenance spares and
materials as ell as rig<t o; ay payments is s<on in 5able 9-+ as [.t<er #osts\3
#redits ;or t<e poer generated ;rom t<e ;res< ater pipeline are assigned to t<e
sulp<ide processing plant and /L in t<eir respective proportions3
Lime Preparation Systems
5<e milB-o;- lime is prepared in a slaBing system providing t<is reagent to t<e ;lotation
plant and <eap leac<ing ;acilities3 5<e costs are included in t<e sulp<ide processingplant costs as manpoer electrical loads maintenance parts and liner and grinding
media as used in t<e lime slaBing mill3 5able 8-+9 provides a breaBdon o; t<e lime
preparation costs beteen users3 .ver t<e L. t<ese costs total 67G0'383
5<e total 7A"5 circuit operating costs are applied proportionally to t<e copper metalloads provided ;rom eit<er t<e #4# or t<e #4L circuit according to t<e mass balances
;or t<e ;lotation plant and leac< pad <ere consideration ;or grade variability and
dissolution rates ;or t<e copper values present is made3
5able 8-+2 establis<es t<e 7A"5 cost distribution over t<e L. beteen t<e sulp<ide
(#4L circuit) and oide (/L) ore processing ;acilities3 5<e L. cost to operate t<e
7A"5 circuit is 67G'293+ be;ore recovered cyanide credits3
