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  • 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

Precious Metals

New projects can raise the production profile of Chile’s gold sector

Despite its geological endowment, Chile is not known for its gold mining. It was the 27th ranked producer in 2020, according to figures from the World Gold Council, behind Venezuela, Argentina, Colombia, Peru, Mexico and Brazil. Furthermore, although large producers including Gold Fields, Yanama Gold and Kinross are active in the country, Chile lacks producing gold assets on the level of Newmont’s Yanacocha in Peru or Barrick’s Veladero in Argentina. However, there is no shortage of potential to raise the production profile of Chile’s precious metals segment as a number of interesting development projects are in the works.

The standout precious metals development project in Chile’s pipeline is Gold Fields’ Salares Norte. Currently under construction, with production expected to start in 2023, Salares Norte has an 11.5 year life of mine with a production average of 350,000 oz/y of gold, including 450,000 oz/y for the first seven years, which would make the project Chile’s most prolific gold mine from an annual production standpoint by some distance.

On May 31st, 2022, the news that Gold Fields had entered into an agreement to acquire Yamana Gold in a deal worth US$6.7 billion means that the new entity, which will become the world’s fourth biggest gold producer, will add Yamana’s El Peñón and Minera Florida operations to its Chilean portfolio.

Another greenfield asset currently under construction is Rio2’s Fenix gold project, which is expected to achieve its first gold pour in 2023, according to president and CEO, Alex Black. Discussing the timeline for development at Fenix, Black explained that it takes a few months between getting the EIA and the construction permit. “In the meantime, we bought an infrastructure site about 20 km from the Fenix mine site, at the turnoff from the main road that goes from Copiapó to Argentina and close to Kinross’ La Coipa camp (...). We can do a lot of fabrication of plant components at the site, so when we receive the construction permit it becomes more of an assembly project.”

Black mentioned that the characteristics of Fenix are very similar to the two mines that the Rio2 management team built in Peru – La Arena and Shahuindo – under its previous company Rio Alto Mining, which was acquired by Tahoe Resources for C$1.2 billion in 2015. Fenix lends itself to simple gold heap leach ADR operations where material does not have to be crushed and therefore does not require large capex to build. Black added: “When you talk about inflation, a 10% increase on a US$120 million build is a lot more manageable than on a US$1 billion project. From our experience, we know we can move things around to save costs in different areas.”

“When it comes to decarbonization, as gold operations are developed, you will see more copper-gold mines coming online. Copper and gold produced together will go hand in hand as a very important metal for decarbonization, along with a very important metal in terms of a store of wealth that improves lives.”

Tom Palmer, President and CEO, Newmont

The attraction of low-capex start-ups was highlighted by Randy Smallwood, president and CEO of Wheaton Precious Metals (WPM), who helped finance the construction of Rio2’s Fenix via a US$50 million gold streaming agreement. “We have seen so many examples in the mining industry where people are too aggressive in terms of their first buildout, and this is particularly relevant in an era of supply chain delays and rising inflation,” observed Smallwood, mentioning that he particularly liked Rio2’s strategy of opting for a staged approach to grow the mine, adding that Alex Black’s track record of delivering high quality projects on time and on budget also influenced WPM’s investment decision.

On the brownfield side, Kinross announced that on February 1, 2022, its La Coipa processing plant (located near Rio2’s Fenix Gold project) had restarted operations. The restart comes after a year of mechanical maintenance, rehabilitation of electrical systems and instrumentation, and restitution of equipment that had been preserved since 2013 after a Partial Temporary Stoppage (PTP) for eight years, according to Rolando Cubillos, vice president and general manager of Kinross Chile.

Cubillos listed the pending items to optimize the Phase 7 mine plan at La Coipa: “Plant renovations are currently focused on the crushing, grinding, leach pads, refinery, filtration and tailings areas, making sure critical components are complete to start first-stage production and move towards full operating capacity by the middle of 2022.”

On March 12th, 2022, Kinross announced it had poured its first gold bar at La Coipa, and the company is eyeing expansion at the nearby Lobo-Marte project, located about 50 km from the main pit, after the conclusion of mining at Phase 7.

Looking further forward, exploration, development and consolidation in the southern Maricunga belt in the area surrounding Norte Abierto, the Barrick/Newmont JV comprised of the Caspiche and Cerro Casale gold-copper porphyry deposits offers the potential for a large-scale operation. While a Supreme Court order to redo an EIS has stalled progress, Barrick’s president and CEO, Mark Bristow, has been outspoken on his intention to grow organically through exploration, with the Pascua-Lama and Norte Abierto deposits in Chile included in these plans.

Image courtesy of Kinross

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Interview: Kinross