s
AD HOC
MARKET RESEARCH
A.Valladares & Asociados
MARKET SIZE AND PROJECTIONS FOR
MILL LINERS AND SMALL GRINDING MEDIA
IN
CHILE & PERU
SAMPLE
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IMPORTANT
Contents:
The period of reserve for this study ended over three years ago. In any case,
for added protection of original client's interest, all references to its name and
purposes in relation to the target markets have been omitted.
Rights of the model study:
Our intellectual property rights on this and other models of our Ad-hoc Markets
Analysis are protected by Chilean Law No. 17,336 and international law. Copy
or use without authorization is subject to sanctions.
Contact:
Alejandro Valladares Founder & Senior Analyst at A.Valladares&Asociados
Mobile: +569 9651 4651 e-Mail: [email protected] Skype: alejandro_valladares
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Stage 1: Analyse the market sizes and pricing practices corresponding to imported mill liners andsmall grinding media for the mining industry in Chile and Peru.
Stage 2: Investigate local producers in terms of capacity, sales and prices per product line, as wellas exports flows and end user‟s requirements of liners and small grinding media, concluding the
pricing and total market size in the last period of 12 months and a projection for 2010, in Chile andPeru.
Ad-hoc MARKET RESEARCH OBJECTIVES
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5
TRADE
ANALYSIS
CLIENT
MAIN LOCAL
PRODUCERS
MARKET END USERS
MILL LINERS
IMPORTS &
EXPORTS
SMALL G. MEDIA
IMPORTS &
EXPORTS
UNDERSTANDING
CLIENT’S
MILL LINERS
UNDERSTANDING
CLIENT’S
GRINDING MEDIA
INVENTORY OF
MINING MILLS, PER
MILL TYPE / E. USER
PROD. CAPACITY,
SALES AND PRICES
FOR MILL LINERS
PROD. CAPACITY,
SALES AND PRICES
FOR SMALL G. MEDIA
INVENTORY OF
NEW PROJECTS
PER END USER
Ad-hoc MARKET RESEARCH METHODOLOGY
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2
Synthesis:
LINERS:
In 2005, size of liners market was 51.8million lb (30 USD million).
Liners for SAG-type Plants, representing a77% of total mill liners consumption.
Projection: Liners‟ market will grow a 18%
aprox. between 2005 and 2010.
CHILE
.
BALLS:
In 2005, size of balls market was 583.7million lb (184 USD million). Size of small
grinding media segment was 28.4 million lb
(21 USD million), a 5% of total.
Projection: Total market and small grinding
media segment will grow a 18% between2005 and 2010.
LINERS:
In 2005, size of liners market was12,300,000 lb (6.2 USD million).
Liners for Tradicional-type Plants,representing a 67% of total consumption.
Projection: Liners market will grow a 41%
between 2005 and 2010.
PERU
.
BALLS:
In 2005, size of balls market was150,900,000 lb (41,3 USD million). Size of
small grinding media segment was
16,500,000lb (11USD million), 11% o total.
Projection: Total market and small grinding
media segment will grow a 41% between2005 and 2010.
ConclusionsEXECUTIVE SUMMARY
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CHILE
Overview
Small Grinding Media
Imports&exportsLocal Production
PriceMarket size
Mill Liners
Imports&exportsLocal ProductionPrice
Market size
Markets in 2010
Conclusions
PERU
Overview
Small Grinding Media
Imports&exportsLocal Production
PriceMarket size
Mill Liners
Imports&exportsLocal ProductionPrice
Market size
Markets in 2010
Conclusions
INDEX
-Ad-hoc Market Research Objectives
-Ad-hoc Market Research Methodology
-Final Report :
6
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FINAL REPORT - CHILE
MINING OVERVIEW:
Chilean mining is characterized by very big operations ( called Gran Mineria ) where Copper is the dominant ore.
Mineral MT* f ines Comments
Copper total 5.412.500 100%
gran minería 5.217.901 90%
other 194.599 10%
Gold 40 70% obtained as by-product in copper ores processing
Silver 1.360 100% obtained as by-product in copper and gold processing
Molibdeno 41.883 100% obtained as by-product in copper ores processing
Lead 2.286 One producer (Toqui) with two ball mills only
Mn (ore) 25.801 One producer (Atacama) with two ball mills only
Zinc 27.635 One producer (Toqui) with two ball mills only
Iron 8.003.500 One producer (CMP) with three ball mills only
* Metric Tons
PRODUCCION IN 2004
Source: Anuario Estadístico 2004, COCHILCO
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CHILEAN MINING OVERVIEW:
There are 22 big operations, treating ore via lixiviation and/or through milling and flotation
plants also called Concentrators.
Concentrators are 19, as
Codelco Norte has 3
Escondida, Codelco Andina, Codelco
El Teniente and El Soldado have 2 each
FINAL REPORT - CHILE
Operation Ore%
Lixiviation
% Milling &
Flotation (*)
El Abra Copper 100% -
Zaldívar Copper 100% -
Cerro Colorado Copper 100% -
El Tesoro Copper 100% -
Quebrada Blanca Copper 100% -
Lomas Bayas Copper 100% -
Michilla-Lince Copper 100% -
Manto Verde Copper 100% -
Carmen de And. Copper 100% .
Codelco Norte (*) Copper 40% 60%
Escondida (**) Copper 15% 85%
Collahuasi Copper 20% 80%
Mantos Blancos Copper 50% 50%
Salvador Copper 30% 70%
Teniente (**) Copper - 100%
Pelambres Copper - 100%
Andina (**) Copper - 100%
Candelaria Copper - 100%
Bronces Copper - 100%
Soldado (**) Copper - 100%
Mantos de Oro (***) Gold 100%
El Peñón (***) Gold 100%
(*) Operation has 3 Concentrators
(**) Operation has 2 Concentrators
(***) Operation includes also gravity concentration stages
Sources : Operators & Anuario Estadístico 2004 COCHILCO
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CHILEAN MINING OVERVIEW:
SAG Concentrators process 75% of ores while Tradicional Concentrators
responds by rest of 25%
SAG MTPD* 781000 75%
Trad MTPD 262000 25%
Total MTPD 1043000 100%
Older copper operations – all Codelco
one‟s, for example- show tradicional plants togheter with SAG plants. But newer operations use SAG schemes
only.
Most Concentrators have a regrinding stage and some of them an additional grinding and flotation plant for Moly.
MTPD: Metric Tons Per Day
FINAL REPORT - CHILE
Name Type MT/Day MT/Month
Codelco - Chuquicamata SAG 70.000 2.100.000
Tradicional (two) 100.000 3.000.000
Codelco - El Teniente SAG 50.000 1.500.000
Tradicional 75.000 2.250.000
Codelco - Andina SAG 35.000 1.050.000
Tradicional 35.000 1.050.000
El Soldado SAG 12.000 360.000
Tradicional 7.000 210.000
Escondida- Los Colorados SAG 120.000 3.600.000
Escondida- Laguna Seca SAG 105.000 3.150.000
Collahuasi SAG 125.000 3.750.000
Pelambres SAG 120.000 3.600.000
Candelaria SAG 70.000 2.100.000
Los Bronces SAG 55.000 1.650.000
Mantos de Oro SAG 17.000 510.000
El Peñón SAG 2.000 60.000
Codelco - Salvador Tradicional 34.000 1.020.000
Mantos Blancos Tradicional 11.000 330.000
Monthly Totals - SAG Concentrators 781.000 23.430.000
Monthly Totals - Trad Concentrators 262.000 7.860.000
Monthly Totals - Sag + Tradicional 1.043.000 31.290.000
Plant availability, estimated average 95%
Annual Totals, after availability 356.706.000
CONCENTRATOR Proccesed Mineral
Source : Operators
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CHILEAN MINING OVERVIEW:
Concentrators operate 265 mills, 211 (80%) in primary &
secondary grinding and 54 (20%) in regrinding and /or molybdenum plants.
Mills used to regrind and moly,
comprises 33 balls mills and 21 vertical mills. This, associated with newer plants like as
Escondida Los Pelambres and Collahuasi.
Codelco‟s Divisions explain a
67% of mills inventory. Its „share‟ being lower in
SAG and Verticals.
FINAL REPORT - CHILE
Name Type SAG
Mills
Bars Mills Balls Mills Balls Mills Vertical
Mills
Chuquicamata* SAG and Tradicional 3 16 34 15 68
El Teniente* SAG and Tradicional 2 22 44 4 3 75
Andina* SAG and Tradicional 1 3 11 2 17
El Soldado SAG and Tradicional 1 4 6 2 13
Escondida LC SAG 3 7 3 13
Escondida LS SAG 1 3 4 8
Collahuasi SAG 3 4 5 12
Los Pelambres SAG 2 4 5 11
Candelaria SAG 2 4 1 1 8
Los Bronces SAG 2 3 3 8
Mantos de Oro SAG 1 2 1 4
El Peñón SAG 1 3 4
El Salvador* Tradicional 5 9 4 18
Mantos Blancos Tradicional 5 1 6
Total, units 22 50 139 33 21 265
Total, % 8% 19% 52% 12% 8% 100%
*A Division of Codelco
MILLS INVENTORY
Operation Prim&Sec Grinding Regrind&MolyTotal
SAG
Mills
Bars
Mills
Balls
Mills
Balls
Mills
Vert.
Mills
Total units 22 50 139 33 21 265
Codelco 6 46 98 25 3 178
Other 16 4 41 8 18 87
% codelco 27% 92% 71% 76% 14% 67%
% other 73% 8% 29% 24% 86% 33%
Prim&Sec Grinding Regrind&MolTotal
CODELCO
Source : Operators
Source : Operators
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CHILE
Overview
Small Grinding Media
Imports&exportsLocal Production
PriceMarket size
Mill Liners
Imports&exportsLocal ProductionPrice
Market size
Markets in 2010
Conclusions
PERU
Overview
Small Grinding Media
Imports&exportsLocal Production
PriceMarket size
Mill Liners
Imports&exportsLocal ProductionPrice
Market size
Markets in 2010
Conclusions
INDEX
-Ad-hoc Market Research Objectives
-Ad-hoc Market Research Methodology
-Final Report :
11
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SMALL GM / IMPORTS & EXPORTS :
Chile imports 50 million pounds/year
53% cast and 47% forged
94% of total coming from Peru
Chile exports 122 million pounds/year
6 % cast and 94% forged
87% of total going to Argentineand Brazil
Price of forged GM is higher than castGM in 10% when imported and 16%when exported
The import as well as export pricesshow in general higher values in theextreme sizes (1” and 5”) versus middlesize (3”).
FINAL REPORT - CHILE
Flow Datos Total
IMP Weight in Lb 50.410.173
T. Fob (US$) 14.156.202
Source: CHILEBRAS.COM based on peruvian and chilean official
trade information
Fob USD/Lb 0,281
EXP Weight in Lb 122.404.739
T. Fob (US$) 38.384.149
Fob USD/Lb 0,314
CHILEAN IMPORTS AND EXPORTS PER YEAR
Size : 5" 3" 1" Total
Imp cif - 0,256 0,507 0,285
Exp fob 0,257 0,276 - 0,279
Imp cif 0,393 0,309 - 0,309
Exp fob 0,320 0,281 0,329 0,312
PRICE OF IMPORTED / EXPORTED GM (USD/LB)
CAST
FORGED
CHILE
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SMALL GM / LOCAL
PRODUCTION:
Key players in Chile are: Molycop (forged balls), Proacer (cast balls) and local filial of spanish Santa Ana de Bolueta-Sabo (forged).
Leader, is Molycop with a local market share estimated in 69%, the highest perceived product quality and a services portfolio very appreciatted by professionals.
Forged balls explain a 81% of local consumption and cast balls a 19%.
Balls sizes that explain over an 80% of local consumption are:
5” for SAG mills
3” for bigger Balls mills, and
1 to 1 ½” for Regrinding mills.
FINAL REPORT - CHILE
Player
max size min size Sag mills Ball mills Regrinding
Molycop 6" 1" 5" 3" 1 1/4"
Proacer 3" 1" 5" 3" 1"
Sabo 6" 1 1/4" 5" 3" 1 1/4"
*Sizes that concentrate in the order of 80% of total productiom
Sources: Interviews and secondary data (corporative reports and news)
LOCAL PRODUCTION OF GRINDING MEDIA - SIZES (inch)
Production Range Main Sizes *
Player Capacity Production in
2004
Local Sales Imports Exports Local share
Molycop 770.925 462.555 373.357 23.480 112.678 69%
Proacer 132.159 110.132 105.328 2.064 6.868 19%
Sabo 88.106 66.079 62.921 535 3.694 12%
Forged balls 859.031 528.634 436.278 24.015 116.372 81%
Cast balls 132.159 110.132 105.328 2.064 6.868 19%
Total 991.189 638.767 541.606 26.079 123.240 100%
Sources: Interviews and secondary data (corporative reports and news)
LOCAL PRODUCTION OF GRINDING MEDIA ( k Lb / year)
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SMALL GM / PRICES
USD 0.700 kg (0.318 /lb) was themore frequently mentioned pricebetween interwiewed persons, asbeing the actual market average,aproximately.
Regarding the difference betweenprices of cast and forged balls,ranges is 10% to 15%.
And there is also coincidence intodescribe prices as being higher inbigger and smaller balls, situationmentioned as „ the price smile‟.
FINAL REPORT - CHILE
Player Market Price *
5" 3" 1" ( average )
Molycop 0,341 0,318 0,363
Proacer - 0,286 0,318
Sabo not info. not info. not info.
* When asked for an average price of balls, everybody mentioned USD 700 per ton
Sources: Interviews
Price of main sizes
LOCAL PROD. OF GM - PRICES (USD /lb)
0,318
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SMALL GM / END USERS
While a convencional milling circuit consume 0,558 Kg/MT (1.229 lb/MT) of 3” and 1 ¼” balls, aSAG circuit consume 0.742 Kg/ton (1.634 lb/MT) of 5”, 3” and 1 ½” balls.
Following table opens the information gathered from local operators by plant type and ball size. Itshows that, in average, unitary mill balls consumption is 0,696 Kg/MT (1,533 lb/MT) and size ofchilean balls market is 265,0 k MT per year (583.8 million lb /year).
Consumption of small grinding balls is 12,96 k MT (28.5 million lb) per year.
FINAL REPORT - CHILE
Plants Ball Size 5" 3" 1 - 1 1/2 "
SAG Kg 71.266.250 128.207.984 12.172.276 211.646.509 79,9%
781.000 MTPD Kg /MT 0,250 0,450 0,043 0,742
74,9% % 33,67% 60,58% 5,75% 100%
Tradicional Kg 52.596.500 788.948 53.385.448 20,1%
262.000 MTPD Kg /MT 0,550 0,008 0,558
25,1% % 98,52% 1,48% 100%
S+T Kg 71.266.250 180.804.484 12.961.223 265.031.957 100,0%
1043.000MTPD Kg /MT (av.) 0,187 0,475 0,034 0,696
100% % 26,89% 68,22% 4,89% 100%
Source: Operators
Total
MILL BALLS MARKET
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SMALL GM / END USERS
Following table opens the information gathered from local operators by plant, size and price. Itshows that, balls price is 0,695 USD/Kg (0.316 USD/lb) and value of chilean balls market isapprox. 184,3 million USD per year.
And as price of small balls is 0,750 USD/Kg (0.341 USD/lb), value of segment is approx. 9,7million USD per year.
FINAL REPORT - CHILE
Plants Ball Size 5" 3" 1 - 1 1/2 "
SAG Kg 71.266.250 128.207.984 12.172.276 211.646.509 79,9%
781.000 tpd Kg /ton 0,250 0,450 0,043 0,742
74,9% % 33,67% 60,58% 5,75% 100%
Tradicional Kg 52.596.500 788.948 53.385.448 20,1%
262.000 tpd Kg /ton 0,550 0,008 0,558
25,1% % 98,52% 1,48% 100%
S+T Kg 71.266.250 180.804.484 12.961.223 265.031.957 100,0%
1043.000 tpdKg /ton (av.) 0,187 0,475 0,034 0,696
100% % 26,89% 68,22% 4,89% 100%
Price (Codelco) P (USD/Kg) 0,800 0,650 0,750 0,695
Market in USD Value(USD) 57.013.000 117.522.914 9.720.917 184.256.832
Source: Interviews
Total
MILL BALLS MARKET
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SMALL GM / MARKET SIZE :
Learnings:
Small grinding media used by mining operators, range from 1” to 1 ½”
Demandcomes from regrinding and moly plants
Size of segment is 13 k MT (28.5 million lb) /year
And segment value is 9.7 million USD /year
FINAL REPORT - CHILE
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CHILE
Overview
Small Grinding Media
Imports&exportsLocal Production
PriceMarket size
Mill Liners
Imports&exportsLocal ProductionPrice
Market size
Markets in 2010
Conclusions
PERU
Overview
Small Grinding Media
Imports&exportsLocal Production
PriceMarket size
Mill Liners
Imports&exportsLocal ProductionPrice
Market size
Markets in 2010
Conclusions
INDEX
-Ad-hoc Market Research Objectives
-Ad-hoc Market Research Methodology
-Final Report :
18
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LINERS / IMPORTS & EXPORTS :
Chile imports 5.0 million pounds /year
equals FOB USD 4.7 million
as u. price is USD/ lb 0.941
And exports 0.80 million pounds/year
equals FOB USD 0.76 million
as u. price is USD/ lb 0.949
FINAL REPORT - CHILE
Flow Datos Total
IMPORTS Fob USD 4.708.410
Weight, Lb 5.002.203
Fob USD / Lb 0,941
EXPORTS Fob USD 755.109
Weight, Lb 795.880
Fob USD / Lb 0,949
Source: CHILEBRAS.COM based on official trade data
CHILEAN IMPORTS AND EXPORTS PER YEAR
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FINAL REPORT - CHILE
LINERS / LOCAL PRODUCTON :
Elecmetal, Talleres and Aceros Chile are the key players in this area. Market leader isElecmetal+Talleres, with a market share estimated in 75%, -as from December 2003 Talleres isowned in a 60% by Elecmetal (40% remaining with Codelco).
According our information and assumptions, total local offer is in ther order of 22.500 ton (49.6million lb) that represents 28.6 million USD per year. So, in this moment, the average price is1.27 USD/Kg (0.577 USD/lb).
Company Item Total % Liners Liners
Elecmetal
Loc.Sales USD 34.200.000 40% 13.680.000
Capacity Kg 12.500.000 75% 9.375.000
Price, av. USD/Kg 1,46
Talleres
Loc.Sales USD 19.400.000 40% 7.760.000
Capacity Kg 10.000.000 75% 7.500.000
Price, av. USD/Kg 1,03
Estimated market share of Elecmetal+Talleres, % 75%
T. Players
Loc.Sales USD 28.586.667
Capacity Kg 22.500.000
Price, av. USD/Kg 1,27
MILL LINERS MARKET - LOCAL PLAYERS
Sources: Interwiews and corporative data from players
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FINAL REPORT - CHILE
LINERS / PRICES :
Elecmetal and Talleres are driving a price recovery process, trying to move the price average from USD/Kg 1,000 (USD/lb 0.45) to USD/Kg 1,000 (USD/lb 0.90). According to Aceros Chile, change is showing results as new business are closed now in or near the desired price level.
However, considering average market price is still in the order of 1.27 USD/Kg (0.577 USD/lb), this process appears to need more time to accomplish a full effect. In this scenary, an average unitary price for imported liners of USD/lb 0.94 seems very high for the moment as internal prices will match its new level when new contracts impact real dispatch.
Regarding pricing practices, players mentioned they actual process will probably give marginal assteel cost is principal driver and in Chile liner business is regulated by international evolution. Theyalso mentioned that internal prices cann‟t grow over international one‟s as most mining operators
are multinational players and chileaneconomy is very open to imports.
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LINERS / END USERS
Unitary consumption of liners is 0,064 Kg/MT (0.141 lb/MT) in SAG and 0,056 Kg/MT (0.123lb/MT) in Tradicional circuits, meaning a difference of just a 14%. However, as they grind 74,9%of total ores, a 77,3% of total liners consumption comes from SAG circuits. Tradicional circuitsexplain rest of 22,7%.
As ball mills participate in SAG and Tradicional circuits, highest consumption correspond toarmours with a 49%. Then, come SAG Lifters (25%) and Liners (16%).
Following table opens the information gathered from local operators by plant type and liner type.It shows that, in average, mill liner consumption is 0,062 Kg/MT (0.137 lb/MT) and size of chileanliners market is approx. 23,5 k MT per year (51.7 million lb/year).
FINAL REPORT - CHILE
LINERS Liner-type Lifters Liners Grates, o. Armours Ar. (rem) TOTAL
SAG Kg 5.964.272 3.697.293 1.874.302 6.299.937 324.689 18.160.493 77,3%
781.000 MTPD Kg /ton 0,021 0,013 0,007 0,022 0,001 0,064
74,9% % 32,84% 20,36% 10,32% 34,69% 1,79% 100%
Tradicional Kg 5.259.650 71.723 5.331.373 22,7%
262.000 MTPD Kg /ton 0,055 0,001 0,056
25,1% % 98,65% 1,35% 100%
S+T Kg 5.964.272 3.697.293 1.874.302 11.559.587 396.412 23.491.866 100%
1043.000 MTPD Kg /ton 0,016 0,010 0,005 0,030 0,001 0,062
100% % 25,39% 15,74% 7,98% 49,21% 1,69% 100%
Source: Interviews
MILL LINERS MARKET
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*According persons f rom Alecmetal and Aceros Chile, unitary price is similar for majority of liners,
being weight the most relevant variable by far
LINERS / END USERS
Following table, opens the information gathered from local operators by plant-type, liner-type andprice. It shows that as average liners‟s price is, in this moment, estimated in around 1.27USD/Kg (0.577 USD/lb) * value of chilean liners market is approx. 29.4 million USD per year.
FINAL REPORT - CHILE
LINERS Liner-type Lifters Liners Grates, o. Armours Ar. (rem) TOTAL
SAG Kg 5.964.272 3.697.293 1.874.302 6.299.937 324.689 18.160.493 77,3%
781.000 tpd Kg /ton 0,021 0,013 0,007 0,022 0,001 0,064
74,9% % 32,84% 20,36% 10,32% 34,69% 1,79% 100%
Tradicional Kg 5.259.650 71.723 5.331.373 22,7%
262.000 tpd Kg /ton 0,055 0,001 0,056
25,1% % 98,65% 1,35% 100%
S+T Kg 5.964.272 3.697.293 1.874.302 11.559.587 396.412 23.491.866 100%
1043.000 tpdKg /ton 0,016 0,010 0,005 0,030 0,001 0,062
100% % 25,39% 15,74% 7,98% 49,21% 1,69% 100%
P (USD/Kg) 1,27 1,27 1,27 1,27 1,27 1,27
Value (USD) 7.574.626 4.695.562 2.380.364 14.680.675 503.443 29.834.670
Source: Interviews
MILL LINERS MARKET
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LINERS / MARKET SIZE :
Learnings:
Demandcomesprincipally from SAG-type plants (77,3% in weight)
Size of market is 23,5 k MT/year (51.7 million lb/year)
Market value is 29,4 million USD /year
FINAL REPORT - CHILE
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CHILE
Overview
Small Grinding Media
Imports&exportsLocal Production
PriceMarket size
Mill Liners
Imports&exportsLocal ProductionPrice
Market size
Markets in 2010
Conclusions
PERU
Overview
Small Grinding Media
Imports&exportsLocal Production
PriceMarket size
Mill Liners
Imports&exportsLocal ProductionPrice
Market size
Markets in 2010
Conclusions
INDEX
-Ad-hoc Market Research Objectives
-Ad-hoc Market Research Methodology
-Final Report :
25
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CHILEAN BALLS & LINERS MARKETS IN 2010
SCENARY 1 (more probable)
World copper demand stay on actual level, the country preserve its economical and political estability and, as economists
projects, chilean GDP grow a 5% per year.
Driving force for balls and liners markets –the evolution of copper proccessing Concentrators- projects strong as there is a Solid set of expansions and new projects in course. Regarding type of Concentrators to be expanded or installed, trend is tomore SAG-circuits as majority of expansions and sulphur-based projects consider that scheme; a rather good example isChuquicamata (now Codelco Norte) that will expand by increasing its SAG plant (see Codelco Norte Master Plan in Annex).
Balls and liners‟s consumption will growth in direct proportion with chilean production of copper concentrates. And accordingthe Corporación Chilena del Cobre, Cochilco, in 2010 Concentrators will be grinding 1230 k MTPD instead of actual 1043 kMTPD. An increase of 18%.
Then, both balls and liners markets will growth in aproximately a 18% in the period and, as SAG-type Concentrators includeat least one regrinding stage, the small balls (1” to 1 ½” ) consumption will also growth a 18%.
SCENARY 2 (less probable)
Internacional demand for copper falls and local Concentrators diminish its actual grinding rates. Both expansions and new
decide to wait for better times.
Again, both balls and liners markets will show the same tendency as Concentrators‟s milling rates.
FINAL REPORT
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CHILE
Overview
Small Grinding Media
Imports&exportsLocal Production
PriceMarket size
Mill Liners
Imports&exportsLocal ProductionPrice
Market size
Markets in 2010
Conclusions
PERU
Overview
Small Grinding Media
Imports&exportsLocal Production
PriceMarket size
Mill Liners
Imports&exportsLocal ProductionPrice
Market size
Markets in 2010
Conclusions
INDEX
-Ad-hoc Market Research Objectives
-Ad-hoc Market Research Methodology
-Final Report :
27
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BALLS:
In 2005, size of balls market was 583.7
million lb (184 USD million).
Size of small grinding media segment
was 28.4 million lb (21USD million), a 5%of total.
And average price for total balls market
was 0.316 USD/lb and 0.341 USD/lb inthe case of small grinding mediasegment.
Projection, is total market and smallgrinding media segment will grow a 18%between2005 and 2010.
FINAL REPORT - CHILE
LINERS:
In 2005, size of liners market was 51.8
million lb (30 USD million).
Liners for SAG-type Plants, representing a
77% of total mill liners consumption.
Average price for total liners market was1.25 USD/Kg (0.577 USD/lb) .
Projection, is liners market will grow a 18%
aprox. between2005 and 2010.
CONCLUSIONS
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CHILE
Overview
Small Grinding Media
Imports&exportsLocal Production
PriceMarket size
Mill Liners
Imports&exportsLocal ProductionPrice
Market size
Markets in 2010
Conclusions
PERU
Overview
Small Grinding Media
Imports&exportsLocal Production
PriceMarket size
Mill Liners
Imports&exportsLocal ProductionPrice
Market size
Markets in 2010
Conclusions
INDEX
-Ad-hoc Market Research Objectives
-Ad-hoc Market Research Methodology
-Final Report :
29
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Source: Ministerio de Minería del Perú
FINAL REPORT - PERU
MINING OVERVIEW :
Peru is an important producer of several mining products, but its mining represents in total only a 4% of 68 USD Billion peruvian PIB (versus the 8% of a 90 USD Billion PIB in the case of Chile).
96% of total production come from big operations (Gran Mineria).
Operator Share % Operator Share %
Southern Copper 38% Southern Copper 75%
Antamina 36% Antamina 25%
Tintaya 11%
Cº Verde 9%
Otros 6%
Total 100% Total 100%
Operator Share % Operator Share %
Antamina 19% Yanacocha 52%
Volcan 19% Barrick 12%
Quenuales 15% Otros 36%
Milpo 8%
Otros 39%
Total 100% Total 100%
COPPER PRODUCTION
ZINC PRODUCTION
MOLY PRODUCTION
GOLD PRODUCTION
SEGMENT %
GRAN MINERÍA 96%
MEDIANA 4%
LEAD 0%
TIN 100%
CONCENTRATION LEVEL
Big operators are just a few. MINERAL TON FINES IN WORLD
ZINC 1.300.000 3º
COPPER 935.000 5º
LEAD 300.000 4º
TIN 40.000 2º
MOLY 8.900 4º
SILVER 2.800 2º
GOLD 200 8º
Source: Ministerio de Minería del Perú
PRODUCCION METALIC ORES, 2004
Source: Ministerio de Minería del Perú
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FINAL REPORT - PERU
MINING OVERVIEW :
Actually, major peruvian operators grind 264,3 k MTPD of copper, moly, zinc and lead ores.
Distribution per plant-type, is:
70% in Tradicional plants
30% in a SAG plant
Antamina‟s 80 k MTPD plant is the only SAG circuit operating in Peru and produces 36% of total Cu, 75% of total Mo and 19% of total Zn.
Phelps Dodge‟s 108 k MTPD Cerro Verde project will start-up in 2007, total peruvian grinding will grows up to 372.3 k MTPD and distribution per plant-type, will pass to:
79% in Tradicional plants
21% in a SAG plant
Details, in Annex.nº nº
Tradicional 11 184.300 70% 12 292.300 79%SAG 1 80.000 30% 1 80.000 21%Total 12 264.300 100% 13 372.300 100%*With Cerro Verde
MTPD
2005 2007 *
PLANTS INVENTORY
TypeMTPD
Operator Concentrator Plant-type Milling MTPD
Antamina Yanacancha SAG 80.000
Southern Cuajone Tradicional 87.000Southern Toquepala Tradicional 60.000
Tintaya Tintaya Tradicional 15.000Volcán Paragsha Tradicional 8.500
Volcán Other units Tradicional 4.500Quenuales Casapalca Tradicional 2.700
Quenuales Iscaycruz Tradicional 2.600Milpo El Porvenir Tradicional 4.000
Total 264.300
CºVerde project* Cerro Verde Tradicional 108.000Total, MTPD 372.300
* Start-up in 2007
Source: Operators, Ministerio de Minería del Peru
PLANTS INVENTORY
Operation
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MINING OVERVIEW :
Peruvian Concentrators operate 132 mills. With Cerro Verde, number of mills will be 144, 107 (74%) in primary &
secondary grinding stages and 37 (26%) in regrinding stages.
Concentrators used to regrind with balls mills; however, Antamina already went to verticals and Cerro Verde will
install verticals too.
FINAL REPORT - PERU
SAG Rolls Bars Balls Balls Vert.
1 4 14 88 28 9 144
144
100%
MILLS INVENTORY
Prim&Sec Grinding
107
74% 26%
Total
37
Regrind & Moly
Operator Concentrator Plant-type Milling MTPD SAG
Mills
Rolls
Mills
Bars
Mills
Balls
Mills
Balls
Mills
Vert.
Mills
Antamina Yanacancha SAG 80.000 1 3 5 9
Southern Cuajone Tradicional 87.000 10 4 1 15
Southern Toquepala Tradicional 60.000 8 25 8 41
Tintaya Tintaya Tradicional 15.000 3 2 5
Volcán Paragsha Tradicional 8.500 3 5 3 11
Volcán Other units Tradicional 4.500 3 31 8 42
Quenuales Casapalca* Tradicional 2.700 0
Quenuales Iscaycruz Tradicional 2.600 3 1 4
Milpo El Porvenir Tradicional 4.000 4 1 5
Total 264.300 1 0 14 84 27 6 132
CºVerde project** Cerro Verde Tradicional 108.000 4 4 1 3 12
Total, MTPD 372.300 1 4 14 88 28 9 144
* Pending data
** Start-up in 2007
Source: Operators, Ministerio de Mineria del Peru
Operation Prim&Sec Grinding Regrind&Moly
Total
MILLS INVENTORY
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MINING OVERVIEW :
1250 and 1000 hp vertical mills are the more frequently used.
There is no addicional information about peruvian vertical mills, but Metso Vertimills were mentioned
as equipments Cerro Verde would surely use.
FINAL REPORT - PERU
Mill-type Q HP Size
Concentrator Yanacancha Sag 1 27.000 38X21'
Circuit-type SAG Balls 3 15.000 24x36'
Capacity 80 k tpd Vertical 2 1.250
Vertical 2 1.000
Vertical 1 100
Type Q HP Size
Concentrator Cerro Verde Balls 4 16.000 24x35'
Circuit-type Tradicional Rolls 4 6.700
Capacity 108 k tpd Vertical 3 1.250
Cerro Verde Project
Vertical Mills
Antamina
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CHILE
Overview
Small Grinding Media
Imports&exportsLocal Production
PriceMarket size
Mill Liners
Imports&exportsLocal ProductionPrice
Market size
Markets in 2010
Conclusions
PERU
Overview
Small Grinding Media
Imports&exportsLocal Production
PriceMarket size
Mill Liners
Imports&exportsLocal ProductionPrice
Market size
Markets in 2010
Conclusions
INDEX
-Ad-hoc Market Research Objectives
-Ad-hoc Market Research Methodology
-Final Report :
34
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Source: CHILEBRAS, based on official trade information
SMALL GM / IMPORTS & EXPORTS :
Peru exports 61.3 million pounds/year *.
FOB export prices being higher for 5”and 1” than for 3”. Again, a „price smile‟.
Peru imports 7.6 million pounds/year *.
77% cast (coming from China)
23% forged (c. from Chile)
CIF import price for forged balls is 0.335USD/lb and for cast balls is 0.257USD/lb.
* Details in Annex
FINAL REPORT - PERU
Size : 5" 3" 1" Total
Imp cif - - 0,226 0,257
Exp fob - 0,238 0,203 0,240
Imp cif - - 0,336 0,335
Exp fob 0,335 0,291 0,418 0,296
PRICE IMPORTED / EXPORTED GM (USD/LB)
CAST
FORGED
PERU
Flow
Imports Weight in Lb 7.637.969
T. Cif (US$) 2.129.506
Cif USD/Lb 0,279
Exports Weight in Lb 61.284.922
T. Fob (US$) 16.608.549
Fob USD/Lb 0,271
PERUVIAN IMPORTS AND EXPORTS PER YEAR
Datos
Source: CHILEBRAS, based on official trade information
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SMALL GM / LOCAL
PRODUCTION
Key players are Molycop-Adesur (forged balls) and Mepsa (cast balls).
Molycop-Adesur is market leader, with a share estimated in 67% in value and 62% in volume.
Local balls production concentrate on following sizes:
5” for SAG mill (Antamina)
3” for bigger Balls mills
1 to 1 ½” for Regrinding mills.
As for example, Cerro Verde plans its ball consumption as follows:
87% in 3”
13% in 1”
FINAL REPORT - PERU
Molycop Mepsa Others 5% Total
67% 28% 5% 100%
MARKET SHARE, % OF USD
Molycop Mepsa Others 5%
Local 28,0 11,6 2,0 41,6 88%
Exports 2,7 2,7 0,3 5,7 12%
Total 30,8 14,3 2,3 47,3 100%
% Local 67% 28% 5% 100%
% Exports 48% 47% 5% 100%
% Total 65% 30% 5% 100%
Source: Mepsa and Proacer-Alisur Financial statments
Total
PLAYERS, IN USD
Molycop Mepsa Others 5% Total
62% 33% 5% 100%
MARKET SHARE, % OF TONS
Molycop Mepsa Others 5%
Local 38,0 20,5 2,9 61,4 86%
Exports 4,2 5,1 0,5 9,8 14%
Total 42,2 25,6 3,4 71,2 100%
% Local 62% 33% 5% 100%
% Exports 43% 52% 5% 100%
% Total 59% 36% 5% 100%
Source: Mepsa and Proacer-Alisur Financial statments
PLAYERS, IN TONS
Total
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SMALL GM / PRICES
USD 0.340 is the price more frequently mentioned as the market average for forged balls aswell as USD 0.250/lb is mentioned in the case of cast balls. There is also a coincidence intodescribeprices as being higher in the extremes.
FINAL REPORT - PERU
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SMALL GM / END USERS
A convencional Concentrator –with a milling circuit as it is projected for Cerro Verde- consumearound 0,439 Kg/MT (0.967 lb/MT) of 3” and 1 to 1 ½·” balls and a SAG circuit like Antamina orEscondida consume aproximately 0,742 Kg/MT (1.634 lb/MT) of 5”, 3” and 1 to 1 ½” balls, bothusing a known mix of balls sizes. Starting from that, following table shows peruvian total ballsdemand is approximately 68,5 k ton (150.9 million lb) per year.
Consumption of small grinding balls is 7,5 k MT (16.5 million lb) per year *.
FINAL REPORT - PERU
BALLS Ball Size 5" 3" 1 - 1 1/2 "
SAG Kg 7.300.000 13.140.000 1.255.600 21.695.600 31,7%
Kg /ton 0,250 0,450 0,043 0,743
% 33,67% 60,58% 5,75% 100%
Tradicional Kg 40.597.222 6.224.907 46.822.130 68,3%
Kg /ton 0,381 0,058 0,439
% 98,52% 1,48% 100%
S+T Kg 7.300.000 53.737.222 7.480.507 68.517.730 100,0%
Kg /ton 0,054 0,395 0,055 0,504
% 10,65% 78,43% 10,92% 100%
* Chinese cylpebs imported by Shougang Hierro Perú S.A., not included
Source: Operator's data
ESTIMATION OF PERUVIAN DEMAND *
Total
* 5.3 million pounds of 40x50 mm cylpebs imported by Shougang Peru f rom China are not included.
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SMALL GM / END USERS
Following table opens the information gathered from local operators by plant-type, ball size andball price, showing that, in average, balls price is 0,603 USD/Kg (0.274 USD/lb) and value oftotal balls market is 41,3 million USD per year.
Average price of small balls is 0,660 USD/Kg (0.300 USD/lb), so value of segment is 4,9 millionUSD per year
FINAL REPORT - PERU
BALLS Ball Size 5" 3" 1 - 1 1/2 "
SAG Kg 7.300.000 13.140.000 1.255.600 21.695.600 31,7%
Kg /ton 0,250 0,450 0,043 0,743
% 33,67% 60,58% 5,75% 100%
Tradicional Kg 40.597.222 6.224.907 46.822.130 68,3%
Kg /ton 0,381 0,058 0,439
% 98,52% 1,48% 100%
S+T Kg 7.300.000 53.737.222 7.480.507 68.517.730 100,0%
Kg /ton 0,054 0,395 0,055 0,504
% 10,65% 78,43% 10,92% 100%
T.Demand Vol (Kg) 7.300.000 53.737.222 7.480.507 68.517.730
P (USD/Kg) 0,695 0,582 0,660 0,603
Value(USD) 5.075.210 31.282.124 4.938.124 41.295.458* Chinese cylpebs imported by Shougang Hierro Perú S.A., not included
Source: Operator's data
Nota : Ver Consumos unitarios-resumen peru : precio av from player's side es 0,681.
ESTIMATION OF PERUVIAN DEMAND *
Total
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SMALL GM / MARKET SIZE :
Learnings:
Small grinding media used by mining operators, range from 1” to 1 ½”
Demandcomes from concentrate regrinding,and from moly plants
Size of this market segment is 7,5 k MT (16.5 million lb)
Av. price is 0,660 USD/Kg (0.300 USD/lb)
Segment value is 4.9 million USD /year
FINAL REPORT - PERU
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CHILE
Overview
Small Grinding Media
Imports&exportsLocal Production
PriceMarket size
Mill Liners
Imports&exportsLocal ProductionPrice
Market size
Markets in 2010
Conclusions
PERU
Overview
Small Grinding Media
Imports&exportsLocal Production
PriceMarket size
Mill Liners
Imports&exportsLocal ProductionPrice
Market size
Markets in 2010
Conclusions
INDEX
-Ad-hoc Market Research Objectives
-Ad-hoc Market Research Methodology
-Final Report :
41
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LINERS / IMPORTS & EXPORTS :
Peru imports 4.8 million pounds /year, equals FOB
USD 4.2 million. And exports 1.1 million pounds/yearequals FOB USD 1.8 million.
FINAL REPORT - PERU
Flow Item Lb Kg
IMPORTS Fob USD 4.217.099 4.217.099
Weight 4.781.214 2.170.671
Fob USD / wt 0,882 1,94
EXPORTS Fob USD 1.815.838 1.815.838
Weight 1.146.258 520.401
Fob USD / wt 1,584 3,49
Source: CHILEBRAS.COM based on official trade data
PERUVIAN IMPORTS AND EXPORTS PER YEAR
Category Datos EXPORTS IMPORTS TOTAL % %acc
LINERS Fob USD 1.242.595 3.026.542 4.269.137 71,8% 71,8%
Weight, Lb 784.464 3.631.347 4.415.811 76,0% 76,0%
TAPES Fob USD 21.177 507.726 528.904 12,0% 83,8%
Weight, Lb 8.813 460.106 468.919 9,6% 85,6%
CILINDERS Fob USD 318.263 318.263 7,5% 91,4%
Weight, Lb 352.184 352.184 7,4% 92,9%
GRATES Fob USD 236.559 166.560 403.119 3,9% 95,3%
Weight, Lb 148.091 161.420 309.512 3,4% 96,3%
SEGMENTS Fob USD 135.335 122.099 257.434 2,9% 98,2%
Weight, Lb 83.262 146.153 229.415 3,1% 99,4%
PLATES Fob USD 149.548 65.520 215.068 1,6% 99,8%
Weight, Lb 112.228 20.884 133.112 0,4% 99,8%
RINGS Fob USD 30.625 10.388 41.013 0,2% 100,0%
Weight, Lb 9.399 9.119 18.518 0,2% 100,0%
Total Fob USD 1.815.838 4.217.099 6.032.937 100,0%
Total Weight, Lb 1.146.258 4.781.214 5.927.472 100,0%
Source: CHILEBRAS.COM based on peruvian and chilean official trade information
Mill Liners category
represent around a 70%of both exports&imports.
Aver. price of exported
liners is FOB USD/lb0.631 while aver. price ofimports is higher: 0.833.
In comparison, chilean
unitary prices for thisspecific category are FOB
USD /lb 0.921 and 0.870in average, respectively.
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LINERS / LOCAL PRODUCTION :
The key local player in liners business is MEPSA, with a local market share estimated in 48% involume and 50% in value, followed by Fundición Callao with a share of around a 30% and other asConsorcio Metalurgico,Fima and Fundición Central explainingaproximately a 20%.
Total sales of local players are in the order of 5,6 k MT (12.4 million lb), with 80% going to internalmarket and 20% aproximatelygoing to exports, and local production value is 6,6 USD million/year.
According data in tables, in average, total market price is 1,17 USD /Kg (0.531 USD/lb) and local(or internal)market price is 1,05 USD/Kg (0.477 USD/lb).
FINAL REPORT - PERU
Mepsa Callao Others
Local 2,4 1,4 0,9 4,7 72%
Exports 0,5 0,4 0,9 1,8 28%
Total 2,8 1,9 1,9 6,6 100%
% Local 50% 30% 20% 100%
% Exports 26% 24% 50% 100%
% Total 43% 28% 28% 100%
Source: Mepsa 2004 Financial Statements, Interviews and export data
Total
PLAYERS, IN USD million
Mepsa Callao Others
Local 2,15 1,42 0,95 4,52 80%
Exports 0,29 0,27 0,56 1,11 20%
Total 2,44 1,69 1,50 5,63 100%
% Local 48% 31% 21% 100%
% Exports 26% 24% 50% 100%
% Total 43% 30% 27% 100%
Source: Mepsa 2004 Financial Statements, Interviews and export data
Total
PLAYERS, IN k MT
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44
LINERS / PRICES :
According Mepsa‟s Financial Statements(copy in Annex), company begun in 2004 a price
movement to recover margins in Liners and Balls. However, due to long-term contracts normally used in this industry, prices just begun to change near the end of the year in the case of liners and in January 2005 in the case of mills balls.
Sales projection Mepsa did for 2005, reflects company‟s expectatives with regard to prices: “Para el año 2005, como consecuencia de las renovaciones y nuevos contratos con nuestros clientes
locales y del exterior, proyectamos continuar con la tendencia del incremento de nuestras ventas de un
45%. Representando las ventas de bolas un incremento de volumen del orden de 35% y mejora en los
precios de 25%; en la línea de piezas, el incremento de volumen representa el 21% y una mejora en los
precios de 25%. Esta importante mejora en las ventas de la empresa se sustenta con los contratos de
ventas cerrados con nuestros principales clientes locales y del exterior: Codelco, que participa con el 30%;
Southern Perú con el 33%; Doña Inés de Collahuasi con 10%”.
According this, Mepsa had solid reasons to expect a 25% growth in prices during 2005.
However, up to December 30th the mill liners company exported to Chile didn‟t show any advance
in volume nor in prices (details in Annex). However, as company‟s export prices grew in the case of liners exported for example to Bolivia, our impression is there is a delay in transfering new price
level to real business on chilean end.
Probably, the responsible for this situation is more Elecmetal than Mepsa.
FINAL REPORT - PERU
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45
LINERS / END USERS
Unitary consumption of liners is 0.064 Kg/MT (0.141 lb/MT) in SAG and 0.056 Kg/MT (0.123lb/MT) in Tradicional circuits, meaning a difference of just a 14%. However, as in PeruTradicional grinding represent 69.7% of total grinding, a 66.8% of total liners consumption comesfrom Tradicional circuits. Antamina‟s SAG circuit explaining the rest of 33.2% of total mill linersconsumption.
In Peru as in Chile, highest consumptions correspond to armours. In this case, as SAG incidenceis lower, ball mills armours take a 77% of total mill liners consumption.
Following table opens the information by plant type and liner type, showing an average mill linerconsumption of 0.058 Kg/MT ( 0.128 lb/MT) and market size of 5,6 k MT (12.4 million lb) /year.
FINAL REPORT - PERU
LINERS Liner-type Lifters Liners Grates, o. Armours Ar. (rem) TOTAL
SAG Kg 610.937 378.724 191.990 645.320 33.259 1.860.230 33,2%
80.000 tpd Kg /ton 0,021 0,013 0,007 0,022 0,001 0,064
30,3% % 32,84% 20,36% 10,32% 34,69% 1,79% 100%
Tradicional Kg 3.699.823 50.452 3.750.275 66,8%
184.300 tpd Kg /ton 0,055 0,001 0,056
69,7% % 98,65% 1,35% 100%
S+T Kg 610.937 378.724 191.990 4.345.143 83.711 5.610.504 100%
264.300 tpd Kg /ton 0,006 0,004 0,002 0,045 0,001 0,058
100% % 10,89% 6,75% 3,42% 77,45% 1,49% 100%
MILL LINERS MARKET
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LINERS / END USERS
Following table, opens the information per plant-type, liner-type and price, showing that if averageliners‟s price is in the order of 1,10 USD/Kg (0.5 USD/lb), value of peruvian liners market isapproximately 6,2 million USD per year.
FINAL REPORT - PERU
LINERS Liner-type Lifters Liners Grates, o. Armours Ar. (rem) TOTAL
SAG Kg 610.937 378.724 191.990 645.320 33.259 1.860.230 33,2%
80.000 tpd Kg /ton 0,021 0,013 0,007 0,022 0,001 0,064
30,3% % 32,84% 20,36% 10,32% 34,69% 1,79% 100%
Tradicional Kg 3.699.823 50.452 3.750.275 66,8%
184.300 tpd Kg /ton 0,055 0,001 0,056
69,7% % 98,65% 1,35% 100%
S+T Kg 610.937 378.724 191.990 4.345.143 83.711 5.610.504 100%
264.300 tpd Kg /ton 0,006 0,004 0,002 0,045 0,001 0,058
100% % 10,89% 6,75% 3,42% 77,45% 1,49% 100%
P (USD/Kg) 1,10 1,10 1,10 1,10 1,10 1,10
Value (USD) 672.031 416.596 211.189 4.779.657 92.082 6.171.555
MILL LINERS MARKET
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LINERS / MARKET SIZE :
Learnings:
Demandcomesprincipally from Tradicional-typeplants
Armours explain a 77% of total liners consumtion
Size of market is 5,6 k MT (12.4 million lb) /year
Price is estimated in 1,10 USD/Kg (0.5 USD/lb), then
Market value is approximately6.2 million USD /year
FINAL REPORT - PERU
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CHILE
Overview
Small Grinding Media
Imports&exportsLocal Production
PriceMarket size
Mill Liners
Imports&exportsLocal ProductionPrice
Market size
Markets in 2010
Conclusions
PERU
Overview
Small Grinding Media
Imports&exportsLocal Production
PriceMarket size
Mill Liners
Imports&exportsLocal ProductionPrice
Market size
Markets in 2010
Conclusions
INDEX
-Ad-hoc Market Research Objectives
-Ad-hoc Market Research Methodology
-Final Report :
48
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THE PERUVIAN BALLS AND LINERS MARKETS IN 2010
SCENARY 1 (more probable)
Zinc and copper demand stay on actual level, the country preserve its economical and political estability and, as economists
expect, peruvian GDP grow at rates between 4 and 6% per year.
Driving force for balls and liners markets –principally the evolution of zinc and copper Concentrators- projects in positiveterms as there is an important portfolio with expansions and new projects (see Annex).
Regarding Concentrators-type, trend in Peru is to more Tradicional-type circuits. See Cerro Verde‟s Concentrator in Annex.
Cerro Verde, is the biggest Concentrator projected for the period 2005-2010 and will increase the peruvian grinding capacityfrom 264 k tpd to 373 k tpd. In other words, in a 41%.
As balls and liners‟s consumption grow in direct proportion –in this case-, with production of zinc and copper concentrates,this means both balls and liners markets will grow in same 41% is mineral processing rate will. As Cerro Verde‟s projectinclude regrinding, 1” to 1 ½” balls consumption will also growth in aproximately the same rate.
SCENARY 2 (less probable)
Internacional demand for zinc and / or copper falls and local Concentrators diminish its actual grinding rates. Expansions
and new projects decide to wait for better times. Both balls and liners markets will show the same tendency as peruvian
principal plants‟s milling rates.
FINAL REPORT
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FINAL REPORT
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CHILE
Overview
Small Grinding Media
Imports&exportsLocal Production
PriceMarket size
Mill Liners
Imports&exportsLocal ProductionPrice
Market size
Markets in 2010
Conclusions
PERU
Overview
Small Grinding Media
Imports&exportsLocal Production
PriceMarket size
Mill Liners
Imports&exportsLocal ProductionPrice
Market size
Markets in 2010
Conclusions
INDEX
-Ad-hoc Market Research Objectives
-Ad-hoc Market Research Methodology
-Final Report :
51
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52
BALLS:
In 2005, size of balls market was
150,900,000 lb (41,3 USD million).
Size of small grinding media segment was
16,500,000 lb (11 USD million), a 11% ototal.
And average price for total balls market
was 0.27 USD/lb and 0.30 USD/lb in thecase of small grinding media segment.
Projection, is total market and small
grinding media segment will grow a 41%between 2005 and 2010. This,considering only big Cerro Verde Project
with start-up in 2007.
FINAL REPORT - PERU
LINERS:
In 2005, size of liners market was
12,300,000 lb (6.2 USD million).
Liners for Tradicional-type Plants,
representing a 67% of total mill linersconsumption.
Average price for total liners market was
1.10 USD/lb.
Projection, is liners market will grow a 41%between 2005 and 2010. This, considering
only big Cerro Verde Project with start-upplanned for 2007.
CONCLUSIONS :
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IMPORTANT
Contents:
The period of reserve for this study ended over three years ago. In any case,
for added protection of original client's interest, all references to its name and
purposes in relation to the target markets have been omitted.
Rights of the model study:
Our intellectual property rights on this and other models of our Ad-hoc Markets
Analysis are protected by Chilean Law No. 17,336 and international law. Copy
or use without authorization is subject to sanctions.
Contact:
Alejandro Valladares Founder & Senior Analyst at A.Valladares&Asociados
Mobile: +569 9651 4651 e-Mail: [email protected] Skype: alejandro_valladares