Environmental Management

All projects, from the design stage up to implementation, are subject to a process of impact identification and assessment.

For Minera Gaby S.A., prevention, mitigation and control of environmental impacts in all the stages of the productive process are important parts of environmental management. This is why the company has implemented a number of initiatives related to the control of consumables, responsible water extraction , appropriate handling of waste and of energy consumed in operations.

A significant milestone for this period has been beginning the implementation process for a system of environmental management compliant with the international ISO 14001/2004 standard that pertains to all MGSA processes.

Use of Resources

Minera Gaby S.A., like any other company in the mining industry, demands an important amount of natural and manufactured resources for its production process. This is why managing environmental aspects through a perspective of sustainability is of vital importance.

Energy

Energy Energy consumption is broken down into direct energy –including the use of fuels – and indirect –corresponding to electric energy, obtained from the national power grid.

EN3Direct energy consumption by primary energy source. EN4Indirect energy consumption by primary source. Direct consumption of energy at Minera Gaby S.A. corresponds to the use of fuel and its byproducts, and, in 2010 this consumption amounted to 28,703 cubic meters (m3), equivalent to 1.10 petajoules (PJ). This estimation is based on the superior caloric power (SCP) of fuels. All additional energy used by Minera Gaby S.A. is indirect, and originates in the Northern Interconnected System (SING), and for the said year amounted to 358.8 gigawatts/ hour(GWh).

2010 Energy Consumption

EN3Direct energy consumption by primary energy source. EN4Indirect energy consumption by primary source.

Compared with the previous period, MGSA increased its consumption of oil by 5,712 m3. It did, however, considerably reduce its consumption of electric power by 55 GWh.

EN5Energy saved due to conservation and efficiency improvements. Although during 2010 there were no energy savings due to management or implementation of specific initiatives during, the Company was concerned of drafting of the 2010 MGSA Energy Efficiency Plan, based on the Corporate Plan, for the purpose of enforcing its policy of assigning executive responsibilities to the areas within this scope, and establishing four lines of action: 

• Management of Energetic Efficiency in processes.
• Maximum demand and power factor Management.
• New Sources of Energy.
• Energy Efficiency in investment projects.

One initiative carried out this year was the “MGSA Energy Consumption Optimization” project that sought to raise initiatives at the profile level. Results are summarized in 13 initiatives developed for the Operations Plant, the Maintenance Plant and Mine Operations. In December 2010, implementation of one of these initiatives, the “Expert System in Dry Area” was undertaken, and the remaining 12 were left in the 2011 projects portfolio.

Water

Water is a scarce resource in the Great North, where Minera Gaby S.A. is located. At the same time, it is essential for its operation. For this reason, MGSA has designed and implemented an efficient water system to ensure consumption levels required in its operations, and minimize any impact on the surrounding environment.

EN9Water sources significantly affected by withdrawal of water. Water is captured from wells constructed in the Elvira and Mariposa basins, located in the surroundings of the Gabriela Mistral Deposit as per the water rights granted by the National Water Department (DGA). Water withdrawal by the Company does not significantly affect these aquifers, as the average flow extracted during the year (130 l/s) does not exceed the maximum authorized by said regulatory entity. (407 l/s).

Total water extracted during 2010 amounted to 3,402 thousand m3, lower than the 165 thousand m3 extracted during 2009, corresponding to a 4.6% reduction. This reduction proves the Company’s efforts to increase efficiency of its water system, especially when taking into consideration the fact that its production levels were maintained.

EN8Total water withdrawal by source.

EN10Percentage and total volume of water recycled and reused. MGSA has a closed water recirculation system. Water is circulated indefinitely, with losses only due to evaporation, leakage and losses pertaining to the process of treatment in plant. Out of the total water recirculated, 39,275 m3 are reused for watering of roads, 1,025 m3 lower than in the 2009 period.

Biodiversity

EN11Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas. EN12Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas. MGSA operates within the limits established by the Environmental Authorization (RCA) issued in October 2003 by the Antofagasta Regional Environmental Authority (COREMA), in Pampa Elvira, approximately 110 km south of Calama, at an average altitude of 2,660 m.a.s.l., in the county of Sierra Gorda, province and region of Antofagasta. This landscape has a physiognomy featuring low, extremely xerophytic shrubs,with sparse coverage and vast sectors devoid of vegetation.

In these areas and in adjacent land, no areas rich in protected biodiversity have been identified, nor have any significant impacts in the species already present been detected. However, and before the approval of the said RCA, the Company relocated flora and fauna present in the area of direct influence of the project.

EN14Strategies, current actions, and future plans for managing impacts on biodiversity. Despite there are no neighboring biodiversity rich areas, MGSA has drafted protection, monitoring and impact assessment plans for the area where it operates. Currently, there is a monitoring plan for bird species to compile information regarding species present in the area. Additionally, birds captured at company facilities are taken to the Rescue and Rehabilitation Center for Wildlife of the University of Antofagasta for their assessment, treatment and later liberation, as the case may be.

EN15Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk. According to the red list of the International Union for the Conservation of Nature (UICN), there are no endangered and/or vulnerable plants or animal species in the direct area of influence of the project.

Nevertheless, MGSA, through the bird species monitoring program, has identified the following species, with a conservation status of lesser concern:

• Yellow-billed Pintail (Anas georgica)
• Baird’s Sandpiper (Calidris bairdii)
• Barn Swallow (Hirundo rustica)
• Ochre-naped Ground-tyrant (Muscisaxicola flavinucha)
• Dark-faced Ground Tyrant (Muscisaxicola macloviana)
• Golden-spotted Ground-dove (Metriopelia aimara)
• White-banded Mockingbird (Mimus triurus)
• Gray Gulls (Larus modestus)
• Markham’s Storm-petrel (Oceanodroma markhami)
• Neotropic Cormorant (Phalacrocorax brasilianus)
• Mountain Caracara (Phaleoboenus megalopterus)
• White-winged Coot (Fulica leucoptera)

Waste

Industrial Waste

EN24Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally. The Company has implemented a procedure for handling hazardous and non-hazardous waste. This includes stages of separation at the source, a landfill within company facilities and a system for collection and transportation to authorized final destinations.

EN22Total weight of waste by type and disposal method. The Company generated a total of 2,559 tons of solid waste during 2010, 31% of which corresponded to hazardous waste, a figure 7.8% higher than 2009.

Massive Mineral Waste

The main characteristic of massive mineral waste is that it is generated in great volumes, and corresponds to material discarded from mining processes that, if handled properly, pose no risk to the environment or to people.

Massive mineral waste generated by MGSA corresponds to waste rock and leaching wastes. All the material extracted is processed, and therefore there is no generation of low grade materials, tailings or slag

MM3Total amounts of overburden, rock, tailings, and sludges and their associated risks.

In 2010, MGSA also reported anodic slime produced in the electrolytic maintenance cells of the EW plant. Said sludge amounts to a total 226.6 tons.

Minera Gaby S.A. performs massive mineral waste final disposal in compliance with national regulations.

Minera Gaby S.A. realiza la disposición final de los residuos mineros masivos aplicando las normativas nacionales.

Wastewater and Accidental Spills

EN21Total water discharge by quality and destination.MGSA did not generate any type of wastewaters in its 2010 operations, due to a closed water recirculation system. In the case of greywater, there is a treatment plant that enables reuse for irrigation.

EN23Total number and volume of significant spills. During the 2010 period, MGSA reported an environmental incident consisting in the spill of diluted sulphuric acid with 8 g/l concentration. The spill was of 10 m3 and occurred on industrial grounds and on the final contention wall for a drainpipe of the wet area. Immediately after the incident occurred, the spill was contained and the contaminated soil was removed and replaced with natural soil. The spillage category is level 2 according to the Minera Gaby S.A. emergency plan.

Environmental Investments

EN30Total environmental protection expenditures and investments by type.The company invested a total of US$1.3 million in environmental projects in 2010. Said investments are focused on decontaminating the Company operation area, through a project called “installation of phase IV rubble dump yard carpet”.

Raw materials

EN1Materials used by weight or volume. The main raw material at Minera Gaby S.A. consists of mineral rocks containing copper. 18,987 million dry tons of this material were extracted at the Gabriela Mistral deposit in 2010, with an average grade of 0.86% of copper. This year the average grade was superior to 2009 in 0.1%. However, the amount of material processed decreased by 4,819 dry tons.