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WATER USE IN COPPER MINING:

Trends of a critical input

Camila MontesStrategic and Public Policies Analyst

Chilean Copper Commission

April 26 / 2016

CONTENTS

02 0403 05Chile; mining

country

Portfolio of mining

projects

Challenges in mining sector

01Water:

Consumption statistics and projections

Seawater Conclusions

CHILE; MINING COUNTRY

Comisión Chilena del Cobre

01

CONSTRUCTION OF A MINING COUNTRY THROUGH THE RECOGNITION OF OUR RESOURCES

Comisión Chilena del Cobre

INVESTMENTCLIMATE

GEOLOGICALPOTENTIAL

COMPETITIVENESS INDICATORS

Comisión Chilena del Cobre

1,0

7,0Macroeconomía

Estabilidad política

Infraestructura paranegocios

Infraestructura generalMarco regulatorio

Mercado laboral

Potencial geológico

Países de ingreso alto Países de ingreso bajo a medio Chile

Labor market

Regulatory framework

Political stability

High income countries Low and medium income countries

Source: COCHILCO, based on World Economic Forum (Global Competitiveness Index),Heritage Foundation (Index of Economic Freedom), Fraser Institute and TransparencyInternational

Geological potential

Macro economy

Business infrastructure

General infrastructure

PORTFOLIO OF MINING PROJECTS

Comisión Chilena del Cobre

General concepts – conditions for inclusion

Investment projects in the mining of copper, gold, ironand industrial minerals.

Investments over US$ 90 millions.

Public announced initiatives.

Prefeasibility studies initiated.

Planned investment decisions no later tan 2019.

PROJECTION OF COPPER PRODUCTION

Comisión Chilena del Cobre

Expected copper production 2015-2026

0

1.500

3.000

4.500

6.000

7.500

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

2016

f

2018

f

2020

f

2022

f

2024

f

2026

f

Cop

per

prod

uctio

n (K

ton)

Concentrates Cathodes SxEw

5,75 Mton

Concentrates Cathodes SxEw

Prod

uctio

n (K

ton)

6,16Mton

32%

68%

12%

88%

CHALLENGES IN MINING SECTOR

Comisión Chilena del Cobre

02

Comisión Chilena del Cobre

ENERGY

WATER

COMMUNITIES

HUMAN CAPITAL

GEOLOGY

INNOVATION

WATER: CONSUMPTION STATISTICS AND PROJECTIONS

Comisión Chilena del Cobre

03

GENERAL DIAGRAM

Comisión Chilena del Cobre

Task

TreatmentStore

INPUT OUTPUT

Divert

Source: Water Accounting Framework

Surrounding community and environment

Operational installation

WHERE DID THE WATER COME FROM?

Comisión Chilena del Cobre

Surface Water5,9 m3/s (39%)

Third parties 0,7 m3/s (5%)

Groundwater6,1 m3/s (40%)

Seawater 2,4 m3/s (16%)

12,3

12,712,6

12,412,5

12,7

2009 2010 2011 2012 2013 2014

HOW MUCH WATER IS CONSUMED?

Comisión Chilena del Cobre

Fresh water consumption 201412,7 m3/s

WHAT IT IS FOR?

Comisión Chilena del Cobre

Fresh water (2014): 12,7 m3/s

8,95 m3/s

1,7 m3/s

2,08 m3/s

Milling

Leaching

Other

70%

14%

16%

Concentración

Concentration

Leaching

Others

WHERE IT IS CONSUMED?

Comisión Chilena del Cobre

0,0

1,3

5,3

1,4

1,0

1,4

1,6

0,7

REGIÓN DE ARICA Y PARINACOTA

REGIÓN DE TARAPACÁ

REGIÓN DE ANTOFAGASTA

REGIÓN DE ATACAMA

REGIÓN DE COQUIMBO

REGION DE VALPARAISO

REGIÓN DE O´HIGGINS

REGIÓN METROPOLITANAm3/s

IT HAS IMPROVED EFFICIENCY?

Comisión Chilena del Cobre

Unit consumption per ton of ore processed

0,67 0,69 0,65 0,61 0,57 0,53

0,12 0,12 0,12 0,10 0,09 0,08

2009 2010 2011 2012 2013 2014

Concentration

Hydrometallurgy

m3/ton processed

FRESH WATER CONSUMPTION PROJECTIONS

Comisión Chilena del Cobre

12,3 12,7 12,6 12,4 12,5 12,813,3 13,4

12,511,7 11,4

10,6 10,6 10,2 10,7 10,9 10,8 10,8

2009

2010

2011

2012

2013

2014

2015

(e)

2016

(p)

2017

(p)

2018

(p)

2019

(p)

2020

(p)

2021

(p)

2022

(p)

2023

(p)

2024

(p)

2025

(p)

2026

(p)

Expected fresh water consumption in copper mining 2015-2026 (m3/s)

FRESH WATER CONSUMPTION PROJECTIONS

Comisión Chilena del Cobre

Fresh water 2015 (e): 13,3 m3/s

Fresh water 2026 (f): 10,8 m3/s

- 19%

Concentradora Hidrometalurgia Otros

9,4

1,6

2,3 1,5

0,5

8,8

Concentration Hydrometallurgy Others

SEAWATER

Comisión Chilena del Cobre

04

EXPECTED SEAWATER CONSUMPTION (m3/s)

Comisión Chilena del Cobre

0,3 0,20,7 1,0 1,3

2,4 2,5 2,6

4,25,3

7,68,4

9,1 9,510,1 10,4 10,5 10,7

2009

2010

2011

2012

2013

2014

2015

(e)

2016

(p)

2017

(p)

2018

(p)

2019

(p)

2020

(p)

2021

(p)

2022

(p)

2023

(p)

2024

(p)

2025

(p)

2026

(p)

x 4,3

SEAWATER BY REGION

Comisión Chilena del Cobre

0

2

4

6

8

10

12

2015

(e)

2016

(p)

2017

(p)

2018

(p)

2019

(p)

2020

(p)

2021

(p)

2022

(p)

2023

(p)

2024

(p)

2025

(p)

2026

(p)

m3/

s

Arica y Parinacota Tarapacá Antofagasta Atacama Coquimbo

Expected seawater consumption by region in copper mining 2015-2026 (m3/s)

SEAWATER BY PROCESS

Comisión Chilena del Cobre

0

2

4

6

8

10

12

2015

(e)

2016

(p)

2017

(p)

2018

(p)

2019

(p)

2020

(p)

2021

(p)

2022

(p)

2023

(p)

2024

(p)

2025

(p)

2026

(p)

m3/

s

Concentradora (agua de mar) SxEw (agua de mar) Otros (agua de mar)

Expected seawater consumption by process in copper mining 2015-2026 (m3/s)

Concentration (seawater) SxEw (seawater) Others (seawater)

TOTAL WATER CONSUMPTION

Comisión Chilena del Cobre

Seawater accounts 50% of the total for 2026

0

2

4

6

8

10

12

14

2009

2010

2011

2012

2013

2014

2015

(e)

2016

(p)

2017

(p)

2018

(p)

2019

(p)

2020

(p)

2021

(p)

2022

(p)

2023

(p)

2024

(p)

2025

(p)

2026

(p)

m3 /

s

Agua Fresca Agua de marFresh water Seawater

CONCLUSIONS

Comisión Chilena del Cobre

05

CONCLUSIONS

Comisión Chilena del Cobre

• More production per drop.

Higher water

productivity

• Develop additional resources. More

storage and new sources

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