Codelco promotes new uses for copper to ensure the viability and sustainability of the business. With the company�s current production rate and major investments to increase its future production, Codelco requires a healthy demand and solid market base to increase the returns of the mining business even more.
With this strategic objective, Codelco has assumed a leading role to promote and develop markets based on innovative initiatives and technologies that have a high added value and a strong potential impact on copper demand. In this sense, the company is working on two fronts, on the one hand, through the International Copper Association, ICA; and on the other, through direct management of its subsidiaries dedicated to developing new uses for copper in partnership with ICA, universities and research centres, depending on the project.
International Copper Association - ICA
ICA is the marketing branch of the industry that develops and defends the global copper market. It was founded in 1989 and Codelco is one of its founding members. Today ICA has 43 members, 31 offices that serve more than 60 countries and it s 2012 budget is US$ 96 million: US$ 69 million contributed by partners, US$ 8 million cofounded by manufacturers and US$ 19 million by governments, the United Nations and third parties.
In 2011, Codelco participated in the board, regional councils and committees that manage work programmes, approving the organisation�s Strategic Plan for the 2012-2016 period.
The new strategy will focus on positioning copper and its industry as an agent for change on solving issues that concern our society, such as electrification, energy efficiency, renewable energy, green construction, public health and fish farming. It will also endeavour to maintain its licence to operate and ensure free access to markets for its products. Furthermore, it will increase the demand for copper between 0.9 and 1.6 million tonnes by 2016, supporting the development of copper-intensive products, defending the substitution market and creating new markets, thanks to the properties of copper and the development of technologies, specifically applications with antimicrobial copper surfaces in hospitals and public buildings and in fish farming systems.
The Plan will continue promotion efforts in strategic sectors, such as electrification of rural areas, construction of more ecological buildings, foster energy efficiency and renewable energy.
International Molybdenum Association - IMOA
Codelco is an IMOA member and co-founder since 1989. This organisation promotes the use of molybdenum, conducts studies and research on its impact on human health, the environment, and on regulatory aspects in public health and sustainable development.
In 2011, its 2012-2015 work plan was approved, which focuses on developing the new initiative related to the sustainability of molybdenum and its different uses; on conducting studies about the environment impact of molybdenum and its use, and on continuing its market development work. The budget approved for 2012 totals US$ 3.3 million.
INCuBA S.A.
INCuBA is a wholly owned subsidiary of Codelco that complements its work with ICA through initiatives to close the divide between technological development and its marketing.
To date, businesses have been consolidated for new copper uses such as fish farming systems and the use of antimicrobial copper in textile fibres and metal touch surfaces in hospitals and Metro stations.
INCuBA was consolidated as a platform to create and coordinate networks to capture opportunities that others do not see or cannot implement, since it has a privileged position in the value chain of copper. Hence, it develops projects that have a positive impact on copper and molybdenum demand and image.
INCuBA has been able to attract external resources from the Government, universities and firms.
In 2011, Codelco approved a capital increase in INCuBA for US$ 2.35 million, to make its investment plan viable for the initiatives related to new uses for copper and molybdenum.
The following are key projects and events in 2011:
EcoSea: Industrial Innovation Award
In 2011, EcoSea Farming S.A, an INCuBA subsidiary, won the 2011 Avonni awards in the industrial innovations category. The technological consortium obtained the prize for the most important innovation in Chile, thanks to developing a revolutionary system based the sustainable use of resistant copper cages for fish farming and that, among their main properties, they prevent the adhesion of algae and molluscs (antifouling effect). It is a submergible system for exposed areas in open sea, opening major opportunities for aquaculture in Chile and worldwide.
In 2011, EcoSea maintained 70 fish farming units under lease contracts; two are prototypes of submergible systems that have been successfully tested. Today this subsidiary is consolidating its business model, and expects to incorporate new strategic partners and begin its internationalisation stage.
Public Health
In 2011 the antimicrobial copper applications began to be designed in metal formats, polymers and textiles for the intensive care units in public hospitals, where patients are more vulnerable to infections. The first step was to implement the intervention pilot plan in the Intensive Care Unit at Hospital Roberto del R�o, project financed by the Ministry of Health and Codelco.
This project will also start the first scientific research in Latin America that proves the reduction of intrahospital infections thanks to the antimicrobial properties of copper.
Additionally, the brand Antimicrobial Copper Cu+ is available to be used by manufacturers� of semi- and finished copper products, prior registering and subscribing the terms and conditions of use.
Antimicrobial Horseshoes
Kawell, which means horse in Mapudungun, is a horseshoe brand based on a copper alloy targeting the equestrian world and sold by the company Kraviva SpA, which is backed by INCuBA.
In 2011, this alliance between InCuBa - Kawell innovated in the equestrian world, launching these antimicrobial copper alloy horseshoes onto the market that prevent and minimise infections and fungi; as well as leg injuries or traumas, since they absorb shock.
During the year, copper horseshoes were sold in Chile and the United States; therefore, this product had a promising entry onto the market, creating an additional demand for copper.
Copper Fibre Fabric
InCuba y Textil Copper Andino formaron una alianza comercial para desarrollar polímeros antimicrobianos en textiles.
At the beginning of 2011, in alliance with the company Monarch, copper fibre socks were successfully launched onto the market. During the year more than 200,000 pairs of socks were sold in Chile.
Together with this product copper fibre underwear was made and introduced in Chile, with positive results and response from the domestic market, and the company commenced the globalisation of this technology in other markets.
