In 2011 Codelco established its 2012-2015 Strategic Plan to promote the application of technologies and innovations at existing operations and in future projects. These initiatives will focus on increasing workforce productivity and on improving metallurgical mining processes as well as those related to the environment and work safety.

In 2011, Codelco invested US$ 125 million in technology and innovation, which is a record figure in company history.

Underground Mine

In 2011, there were several milestones in the different underground mining initiatives that have been in progress for the last 12 years, such as the approval of the investment fund for a continuous underground mining test at Andina Division, precondition, consolidation and validation, progress was also made in the use of low profile, sizer-type crushers and the tunnel boring agreement.

Continuous Underground Mining

In November 2011, a US$ 152 million investment was approved to implement continuous mining during a 3-year period. Continuous underground mining � process that extracts ore from different points, automatically and remotely operated � will be a technological breakthrough and will increase productivity by at least 50%; reduce operating costs by 20%, and greatly reduce the risks of injury to workers.

Preconditioning

In 2011 the rock mass preconditioning project started in 1999 was completed. This technology was incorporated in normal operation processes at all of Codelco�s underground mines.

Mine Preparation

In terms of tunnel construction, mechanisation and technological development was well advanced. Codelco reached an agreement with Aker Wirth, a German company, to manufacture tunnel equipment MTM4 (Mobile Tunnel Miner). This technology is for building tunnels faster, safer and better quality. This project will be developed during 2012 and the objective is to test it the following year in a 1,000 metre shaft excavated in Chuquicamata Underground mine.

Mineral Processing

In 2011 emphasis was placed on increasing copper and molybdenum recovery from minerals and on activities to achieve more efficient use of energy and water consumption.

Mineral Comminution

During the previous period, progress was made in lab-scale assessment of an electrodynamic fracturing technology. Work progressed on scaling of continuous electrodynamic fragmentation of mineral, a flow of approximately 300 kg/hr and pilot tests were successfully carried out at the attrition slag mill, with rotating components.

In 2011, the electrodynamic control ball for the SAG mill was validated at a pilot level, to optimise its operation. This instrument designed by IM2, confirms that it is technically feasible to have online monitoring of the operation from inside the mill, providing a new alternative to improve process control.

Mineral Processing

In 2011 thickness tests were conducted using existing tailings at Andina Division. The results showed that this technology increases solids in tailings by 70%, with the subsequent recovery of water and extension of the useful life of the dam. Furthermore, at an engineering profile level, a thickening plant was designed with capacity for 50 thousand tonnes per day. Different options were assessed to transport tailings using piping and aerial conveyors, as well as alternatives to manage the Ovejer�a dam wall.

Pre-concentration of Copper Sulphide Ore

In alliance with the German company BASF work was carried out to develop a molybdenum and copper ore pre-concentration technology for Codelco. Exploratory lab-scale tests were conducted with minerals and tailings from different divisions; results were promising. Subsequently an experimental programme was executed in Germany, both pilot and continuous, that confirmed results.

Bioleaching low-grade copper sulphide ores

In 2011 the first Biomass Industrial Plant commenced operations at Radomiro Tomic Division, creating microorganisms required for the bioleaching process. The plant reached its design capacity and in 2012 the inoculation of leach pile bacteria will start, in an industrial test that will process approximately 1.5 million tonnes.

Leaching Copper Concentrate

The following is currently under analysis to see if it can be industrially complemented: concentration process and subsequent concentrate leaching; therefore, make a long-term alternative viable for the Radomiro Tomic expansion project. In this context, in 2011 the results were analysed for the pre-profile engineering studies for copper concentrate leaching technologies capable of reaching recovery rates comparable to conventional pyrometallurgical processes and of minimising sulphur dissolution.

Sulphate Abatement

During 2011, an experimental comparative pilot programme was implemented which included several technologies to abate sulphates from water infiltrated from the Ovejer�a tailings dam at Andina Division. Profile engineering was also conducted and results showed that these technologies meet Chilean water quality standards, with comparable investment and operating costs.

Concentrate Smelting and Copper Refining

In 2011, the Corporate Technological Programme on Continuous Smelting conducted the following developments:

Continuous fusion at Teniente Convertor and in the slag cleaning furnace In 2011 new criteria were implemented for operation design and methods to smelter 1 million tonnes of concentrate per year. This was based on heat transfer and metallurgical fluid dynamics models, built on a new conceptual basis for the continuous fusion process at the Teniente Convertor and for slag cleaning.

Furthermore, operation practices were developed for slag cleaning that increase furnace productivity and copper recovery. On-line control and measurement device technological and scientific support were established for the white metal � slag � gas stages. These studies were conducted at the Potrerillos Smelter in order to apply operational continuity to the concentrate fusion process.

Mechanical Properties of Copper Cathodes Codelco started the project Determining Mechanical Properties of Copper Products, to consolidate the principles that should be used to determine mechanical properties when building an experimental database of thermodynamic and mechanical properties, which can be used as a baseline for proposing cathode characterisation standards.

International experts and the metallurgical, physicchemical and thermodynamic laboratory services of Institut National Politechnique de Grenoble, France, participate in this project and the micro-mechanic test laboratory at the Facultad de Ciencias F�sicas y Matem�ticas, Universidad de Chile, is used to run tests.

Information Technology, Communications and Automation

Mining is facing new and important challenges in all areas: lower ore grades, more complex processing and extraction techniques, and tougher environmental and safety standards. These challenges require adjustments to the management model. Codelco, through Codelco Digital strategy, considers technology as the core element to coordinate these new management models and hence facilitate their implementation.

Key advancements in this area are as follows:

Safety and Environment

Codelco implemented safety measure devices in the framework of the Fatal Risk Control Standards defined in 2011, such as:

Automated and Robotised Mining Processes

In 2011, Codelco with Kairos Mining implemented more than 70 advanced control applications at different corporate divisions, establishing processes and adding benefits in conventional mill, SAG mill, flotation, thickener and secondary crushing.

Furthermore, based on the experience gained through the Concentrator Plant Automation Programme, in 2011 a study was carried out to analyse the current status of the automated systems currently in use at the Chuquicamata, Potrerillos, Ventanas and Caletones smelters.

In relation to the robotic solutions applied to mining processes, Codelco continued to conduct feasibility studies to find solutions that reduce the exposure to risks and potential injuries that increase productivity of employees and reduce process costs. Additionally, an industrial test was completed with positive results for the robotics solution to detach Starting Sheets at Ventanas Division (4 robots).

Structural Growth Projects

In 2011, TICA Management and Project Vice Presidency continued to work together on creating specifications, regulations and incorporating the Company�s structural projects. An example of this effort is the corporate standard on Presence Detection Systems in underground mining.

Services

In 2011, there were two key service infrastructure projects. At El Teniente division, the data centre was redesigned applying international standards, consolidating services for Head Office, Ventanas, Andina and El Teniente.

Most of the Company�s technological platform for the video, voice and data communications networks was also upgraded, providing support to the following projects: New Andina, Minera Gaby Expansion, El Teniente New Mine Level and Ministro Hales Mine.

In relation to SAP management tools - platform that provides integrated support to Codelco�s administrative processes - key developments were the integration and automation of corporate planning and management processes, by implementing a support tool (SAP Business Objects Planning and Consolidation) that ensures information quality and timeliness, automates processes, develops auditing and traceability, and simplifies scenario creation.

Solutions were also provided for internal staff recruitment management, supplier invoicing and goods and services management in collaboration with users and suppliers, as a pilot test at Andina Division.

MIT Award for Leadership in Innovation

In May, Marco Orellana, Codelco TICA manager, received the 2011 Leadership in Innovation Award that is given every year by the Massachusetts Institute of Technology (MIT), recognising Codelco�s work in this field. It is the first time this award was given to a person who is not from the United States.

The award was received by the Codelco executive at the solemn meeting of the 8th Annual MIT Sloan CIO Symposium, held in May 2011 in Cambridge, Massachusetts.

Science and Technology

In order to increase productivity and improve business sustainability, Codelco has developed alliances and partnerships with research and development companies and, organisations, leaders in both Chile and overseas, that facilitate the incorporation of innovations and technologies.

In 2011, Codelco was involved in the implementation of the following projects and initiatives with national universities, international institutions and companies:

Technological Alliances

In water efficiency projects, 63 initiatives were identified concerning the efficient use of water, water recirculation, reuse and treatment. In 2012, the projects that deliver more benefits will be preselected.

TECHNOLOGICAL COMPANIES

IM2
Instituto de Innovación en Minería and Metalurgia S.A.

The subsidiary IM2 was created to support Codelco in generating knowledge and developing technological innovations applicable to mining-metallurgical processes.

In 2011, the institute developed 106 technological innovation and research projects. For example, it collaborated with the feasibility studies for the continuous mining industrial test at Andina Division; as well as profile engineering studies to quantify the additional benefits from this technology if applied at the Chuquicamata Underground mine.

In pre-conditioning, it contributed at El Teniente Division, applying a dynamic weakening with explosives technique, using new crushable strengthening elements and prefabricated elements in mining constructions.

In continuous smelter, IM2 continued developing design and operation parameters for the Teniente Converter, so as to increase its processing capacity to over 3,000 tonnes per day. Related activities were the redesign of the slag bay, maximum fusion capacity and maximum oxygen enrichment.

Intellectual Property

In 2012, IM2 applied for invention patents and was awarded two patents in Chile. These developments are in addition to the institute�s 35 patents awarded in Chile and 4 patents overseas.

BIOSIGMA S.A.

BioSigma was created to incorporate biotechnology breakthroughs into mining. This Codelco subsidiary develops biological systems capable of leaching low grade resources and other secondary material economically unmineable using traditional technologies.

In 2011, Biosigma completed the first phase of the Industrial Test for Bioleaching of Low-Grade Sulphides at Radomiro Tomic Division, conducted at the Biomass Plants which has reached its design parameters.

At the same time, it continued to scientifically develop the characterisation of biomolecules and bioelectrochemical processes. This has helped to make progress in characterising sulphide species in order to define the factors that limit copper recovery speed.

Intellectual property

BioSigma�s scientific and technological developments in 2011 generated four new applications for invention patents. These are in addition to the 141 applications already filed; 52 have been awarded in Chile and abroad in the main mining countries such as Australia, the US, Peru, Mexico and South Africa.

ECL
Ecometales Limited

Ecometales offers environmental solutions to mining, especially in sustainable management of mineral waste and recovery of metals.

In 2011, ECL processed more than 57,000 tonnes of mine waste at the dust treatment plant; and delivered close to 7,000 tonnes of copper to Codelco�s annual production.

Since 2007, ECL has processed more than 270,000 tonnes of mine waste from the Chuquicamata, Ventanas and Salvador divisions and has recovered more than 48,000 tonnes of copper.

In relation to sustainable mine waste management, in 2011 ECL started the last construction stage of the new operation unit at the dust treatment plant, with a new US$ 69 million investment. The new unit will abate the arsenic waste contained in the smelter dust and other mining waste, for stable storage at an arsenic waste disposal site.

At Chuquicamata Division, ECL was in charge of starting up the Mine Tailings Treatment Plant that will recover copper and molybdenum from fresh tailings.

Intellectual Property

ECL applied for a patent for it Arsenic and Antimony Abatement process, a technological development owned by ECL, in addition to two other applications already filed in Chile.

SUPPORT TECHNOLOGY COMPANIES

MICOMO
Mining Information, Communitations and Monitoring S.A.

Micomo develops, installs and maintains communication and information technologies used as support tools in the mining-metallurgical process in Codelco and in other mining companies. It also offers services related to data transmission using photonic networks, wireless connections and BOTDR technology (Brillouin Optical Time Domain Reflectometer).

In 2011, Micomo developed an environmental forecasting system (Nowcasting) to support operational decision-making at Ministro Hales Division, given its interaction with air quality in Calama. While at Chuquicamata and Ventanas divisions, it continued to provide environmental forecasting services to control its emissions. Micomo is also assessing similar applications and services with private mining operations.

In photonics, Micomo provided maintenance services at Andina and El Teniente divisions; at the latter, it included the Pilar Norte areas in the data transmission network for remote operation and monitoring.

In wireless connections, Micomo has used this technology to provide services to enable and install video cameras, which are used to monitor the continuity of the production processes and worker safety at Chuquicamata and Radomiro Tomic.

In BOTDR, it conducted tests to monitor deformations produced in critical pillars located in Esmeralda mine at El Teniente Division.

Intellectual Property

In 2011 SidMil Software patent application and register was accepted, for both developments that use BOTDR technology.

KAIROS
Kairos Mining S.A.

Kairos provides automation and control services that help to enhance equipment performance in the mining-metallurgical process in Codelco and in other mining companies.

In 2011, it supported the commissioning of the Concentrator Plant Automation corporate programme at Chuquicamata, Andina, El Teniente and Salvador divisions. Therefore, Kairos installed more than 70 Profit Controllers in the conventional mill, SAG mill, flotation, thickeners and secondary crushing.

During this period, Kairos continued to provide services to other mining companies, such as Do�a In�s de Collahuasi, where it implemented the multivariable solution for tailings thickener; and the Caserones project, owned by Lumina Copper, where it developed the design and basic engineering phase of an automation solution platform. Kairos also supported a Yamana Gold operation, located in Brazil, providing advice on the implementation of a multivariable control system for its SAG mill.

In 2012, Kairos will continue supporting the implementation of the Concentrator Automation programme at Codelco, which should be completed in 2013.

MIRS
Mining Industry Robotic Solutions S.A.

MIRS offers research, design, manufacturing, installation services related to robotic solutions applicable to the mining-metallurgical processes in Codelco and other mining companies.

In 2011, the subsidiary MIRS developed seven conceptual engineering projects at Codelco divisions; such as the robotised mining truck wash, the robotic system to take concentrate samples and the robotic system to open/close the Teniente Convertor furnace. It also completed the first stage of the system validation industrial test so as to robotise starting sheet detachment, at Ventanas Divisions.

In relations to manufacturing and installing robotic solutions, MIRS completed the robotic cathode detachment machine at Minera Mantos Blancos; and develop the first phase of the base plate guillotine and polishing project at Minera El Tesoro.

In 2012, MIRS expects to continue its engineering services and develop the second phases of the applications and tests installed at Minera Mantos Blancos, El Tesoro and Ventanas Division.

Intellectual Property

In 2011, MIRS applied for an invention patent in Chile, in addition to the 26 applications already filed both in Chile and the US.

 

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