23/86
  • Pages
  • Editions
01 Cover
02 Welcome Letter / Sections
03 Article & Interview Directory
04 Section 1: Introduction
05 An Evolving Constitutional Landscape
06 Chile Ministry of Mining Interview
07 Consejo Minero Interview
08 APRIMIN Interview
09 Expert Opinion Article: Francisco Acuña, CRU
10 Expert Insights: Chile’s Evolving Sociopolitical Landscape
11 ESG & Renewable Energy
12 ICMM Interview
13 Aggreko Interview
14 Mining Investment Climate
15 Appian Capital Advisory Interview
16 Expert Insights: Attracting Sustainable Investment
17 Section 2: Production & Development
18 Copper Production & Development
19 BHP Interview
20 Antofagasta PLC Interview
21 Freeport McMoRan Interview
22 Teck Resources Limited Interview
23 Amerigo Resources Interview
24 Precious Metals
25 Kinross Interview
26 Rio2 Limited Interview
27 Lithium
28 SQM Interview
29 Albemarle Interview
30 Section 3: Junior Exploration
31 Study-stage Copper Projects
32 Expert Insights: Chile's Junior Exploration Community
33 World Copper Limited Interview
34 Early-stage Opportunities
35 ATEX Resources Interview
36 Torq Resources Interview
37 Pampa Metals Interview
38 VerAI Discoveries Interview
39 Lithium Exploration and Development
40 Lithium Chile Interview
41 Wealth Minerals Interview
42 Monumental Minerals Interview
43 Section 4: Engineering, Construction & Consultancies
44 Engineering & Consultancies
45 Water and the Environment
46 JRI Interview
47 Wood Interview
48 SRK Consulting Interview
49 Construction & Contractors
50 Sigdo Koppers Interview
51 Züblin Strabag Interview
52 Echeverría Izquierdo Interview
53 Thiess Interview
54 Going Underground
55 Master Drilling Interview
56 Robbins Interview
57 INCIMMET Interview
58 Section 5: Equipment & Technology
59 The Evolution of Mining Equipment
60 Scania Interview
61 Expert Insights: OEMs on Sustainability and Innovation
62 Comminution & Material Handling
63 Metso Outotec Interview
64 ME Elecmetal Interview
65 TAKRAF Interview
66 Haver & Boecker Interview
67 Innovation & Technology
68 Hexagon Interview
69 DSI Underground Interview
70 Dingo Interview
71 Pipes, Valves, Components & Wear Protection
72 Hofmann Engineering Interview
73 Expert Insights: The Benefits of AI and Automation
74 Section 6: Services
75 Drilling & Blasting
76 Geotec Boyles Bros Interview
77 Enaex Interview
78 Services
79 SGS Interview
80 Section 7: Sponsored Company Profiles
81 FreePort-McMoRan Profile
82 Rio2 Company Profile
83 Lithium Chile Profile
84 Metso Outotec Company Profile
85 SGS Company Profile
86 Credits

Aurora Davidson, President & CEO,

AMERIGO RESOURCES

"Amerigo works with an environmental liability – tailings – and extracts further economic value from that by producing copper concentrates."

Can you explain Amerigo Resources’ business model and the evolution of the MVC operation?

Amerigo produces copper, but we do not have a mining business model behind us that involves the typical long-term cycle of exploration, development and construction before production. Instead, we get our material through a contractual relationship with Codelco’s El Teniente division, where we have the rights to process their fresh tailings and a series of their historical tailings deposits. Essentially, Amerigo works with an environmental liability – tailings – and extracts further economic value from that by producing copper concentrates. We are by no means a small operation, as we have to process a tremendous amount of material, given the low grade that by definition is contained in tailings. In many ways, we are more of a copper factory than a mining operation.

The Minera Valle Central (MVC) operation was founded in 1992 and purchased by Amerigo in 2003. We used to produce around 25 million pounds of copper per year, but have grown this figure to 63 million lb Cu in 2021. This was achieved by investing US$300 million into the facility, doubling the capacity of our concentrator plant, and incorporating the rights to process historical tailings.

What do Amerigo’s 2021 results and guidance for 2022 indicate about the state of the company today?

Every copper producer is doing well these days, but what has changed in the mentality of many producers compared to the previous high cycle is that we have gone through very harsh times in recent years. The industry has learned to survive under low copper prices, so it can thrive under high copper prices. Amerigo’s focus is essentially on producing margin – not just how many more tonnes of copper we can produce, but how we can produce in the most economic way. Our team is very focused on three fronts: production; operational continuity; and financial performance. This approach to running the business and the effect of strong copper prices have dramatically improved the company’s finances.

How has the company resolved issues to guarantee a sustainable and economic water source?

The single most important water source for us is the water which comes with the fresh tailings. In addition, we have water rights at MVC, as well as three water thickeners that increase water circulation efficiencies. We can store surplus water at Colihues, which is an historical tailings deposit adjacent to MVC. Two years ago, we went through a critical situation with respect to water supply, and as a result we are closely monitoring our sources and uses of water eighteen months ahead at all times.

What potential is there to replicate the tailings processing work Amerigo does at other mines in Chile?

For many mining companies, tailings represent an inherent long-term responsibility and an environmental liability. On the other hand, grades are getting lower and the industry needs to look at ways to maintain production levels. The notion of tapping into tailings to derive further economic value is very compelling. However, producing copper from tailings is not easy and requires art and science, as no two deposits are alike. For example, even at MVC we have had to make adjustments to fine tune the processing of the fresh and historical tailings from El Teniente.

I think that when the right decision makers at mining companies start adjudicating the potential value to their existing tailings and see them as an opportunity to top up production, rather than just a liability, there could be tremendous opportunities for Amerigo given its existing operational experience. We are interested in exploring opportunities under the right conditions which include the size of the deposit and location, for example.

Which factors contributed to MVC receiving the 2021 San Lorenzo award from Chile’s National Mining Society (SONAMI)?

We received the San Lorenzo (Chile’s patron saint of miners) award for mid-tier mining companies essentially based on our innovative business model which economically produces copper through a process that no one else uses. Amerigo is the only company in the world solely focused on production through the processing of copper tailings on this scale.

MVC is also a highly respected corporate citizen in the region. MVC is essentially a surburban operation where most of our people live close to our facility, are from the city of Rancagua, and are proud of working for two strong employers in the area – El Teniente and MVC.

Next:

Article: Precious Metals