Sustainable Copper

Investment in Sustainable Operations

Connecting with Community: Holistic Mining at Anglo American’s Quellaveco

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Anglo American is putting values into practice at its new mine, Quellaveco, in Moquegua, Peru, where the company is implementing its FutureSmart Mining™ blueprint. FutureSmart Mining™ focuses on sustainable practices and responsible production through technological innovation and community engagement. Particularly noteworthy in this approach is Anglo American’s model for conscientious community outreach focusing on workforce protection and development, as well as societal and economic investment.

Anglo American is committed to holistic progress. Quellaveco will be a fully automated mine that employs the latest electric vehicle technology, ensuring sustainable operations that are safer and more efficient. Anglo American has also invested in the development of its workforce, providing skills training for its innovative technology. Quellaveco will not only maintain but increase its workforce, providing unprecedented employment opportunities to the region.

Additionally, Anglo American is partnering with the Peruvian nation to support its economic and societal development. Mining represents about 10 percent of Peru’s GDP and 60 percent of its exports, making it a key facet of Peru’s economy. Anglo American has earmarked $300 million for local development alone and has already directly invested more than $114 million in local goods and services. The company will continue its commitment to working hand in hand to develop community programs across the nation.

We are grateful for the strong support we have gained from our host communities and at the national level. Quellaveco should bring very significant opportunities and sustainable benefits to the lives of those we employ, our business partners, the surrounding region and Peru as a whole, for decades to come.” – Mark Cutifani, CEO Anglo American

INVESTING IN LOCAL COMMUNITIES

A Workforce of Opportunity

Automation has led to significant employment losses across the globe. However, Anglo American will transition to automated operation without any cuts to its workforce at Quellaveco. In fact, the mine will create jobs for the mine’s surrounding communities. Quellaveco is proud of its local talent and plans to expand employment opportunities as the mine becomes operational.

Quellaveco will be a fully digital mine with a safe and positive working environment. Anglo American is investing in extensive training programs to prepare local personnel to develop skills and expertise to manage automated technology. Technicians will analyze real-time data and predictive modeling to track and improve operational efficiency and safety, from the removal of the ore to its processing and shipping.

Anglo American anticipates recruiting 5,600 of its 14,000 employees from local communities. After production begins, Quellaveco will maintain a local workforce of 2,500 people. These statistics make Anglo American the top employer in Moquegua and one of Peru’s ten largest employers.

Community Impact

It is only through being responsible and collaborative partners that we will be able to achieve that level of trust that society demands from us. We have had a permanent engagement with the local community and continue to enhance and build support as a long-term partner for the community of Moquegua.” – Tom McCulley, CEO Anglo American Peru and Group Head of Projects

The company has also earmarked $300 million to support local communities in Moquegua over a 30-year period, establishing a vast array of programs with diverse public and private sector organizations and interest groups.

In 2011, Anglo American conducted dialogue roundtables with representatives of 31 civil society organizations, grassroots groups and governmental bodies. Technical experts at Anglo American drew on this series of discussions, which lasted over a year, to inform the design of the mine and social impact programs. They established 26 formal agreements to address water access, environmental conservation and economic development.

Following these consultations, Anglo American established training programs to support private sector businesses and civil society organizations. Through its Quellaveco Fund, which has a $10 million budget, Anglo American awarded grants to 30 civil society projects in the fields of education, health, nutrition and agriculture to assist an estimated 25,000 people in the region. The Fund has supported the establishment of new networks to increase the sales of produce and herbs grown by area farmers, with some participants reporting up to a 65 percent rise in revenue. It has additionally sponsored training in water optimization techniques for agriculture, leading to a 60 percent rise in grapevine yields per hectare at one farm in Omate.

Quellaveco is also making major contributions to the economic development of the region. By 2019, officials at Quellaveco purchased $114 million in goods and services from businesses in Moquegua. Once operations begin, Anglo American will pay taxes and royalties of up to $200 million per year, contributing to funding schools, medical facilities, water treatment and road maintenance.

Anglo American has built on these successes by developing the Emerge Peru enterprise program, which supported the establishment of 400 businesses. The company also worked with government bodies to further develop programs in the region. In 2014, Anglo American created the Development Fund of Moquegua in partnership with local government authorities and the Chambers of Commerce of Moquegua and Ilo, another city in the Department of Moquegua. This fund provided $30 million to support an agricultural infrastructure project to help 10,000 farmers. Additionally, it contributed $10 million to fund education programs in technology. In 2018, Anglo American established the Regional Entrepreneurship Support Council in partnership with 12 public and private sector bodies to assist local businesses; its programs have since provided training to staff from over 1,000 companies.

Conscientious Engagement for the Future

Quellaveco’s FutureSmart Mining™ model of community engagement highlights the importance of local involvement for positive societal and economic impact. Anglo American is committed to developing and investing in its regional workforce, protecting not only their workplace wellbeing but also their jobs through sustainable technological innovation. Through its regional and national partnerships and locally led initiatives, Anglo American will continue to ensure its operations strengthen its host communities both now and in the future.

About Anglo American

Anglo American plc is a diversified multinational mining firm based in London, the United Kingdom and Johannesburg, South Africa, and is a major copper producer with four copper mines in Chile.

About Anglo American Quellaveco S.A.

Quellaveco, which lies in Peru’s southern Moquegua region 3,500 miles above sea level, is a 60-40 percent Joint Venture (JV) between Anglo American and Japan-based Mitsubishi Corp. The Anglo-operated project in the Andes Mountains of southern Peru will utilize open pit mining and flotation processing to produce copper concentrate, along with molybdenum and silver by-products. The operation will yield 300,000 tonnes of copper annually with first copper pending 2022.

About the Copper Alliance®

The Copper Alliance is a network of regional copper centers and their industry-leading members. It is responsible for guiding policy and strategy and for funding international initiatives and promotional activities. Headquartered in Washington, D.C., the organization has offices in three primary regions: Europe, Asia, and North America. The Copper Alliance has partnerships and programs in more than 100 countries.

Copper Producers Step Up During COVID-19 Crisis

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Since the onset of the coronavirus, ICA’s global members have exercised agility, innovation and collaboration to protect their employees and the communities where they operate. Guided by social responsibility and community well-being, proactive players in the copper industry ensured the health and safety of their employees and assisted the larger community by sparing no effort or resources.

KGHM transports critical medical equipment  

At KGHM Polska Miedź S.A., not only were stringent procedures and frequent cleaning introduced, but the producer brought the world’s largest airplane full of personal protection equipment (PPE) from China to Warsaw.

Source: KGHM

After a special appeal from the Polish President Andrzej Duda and Prime Minister Mateusz Morawiecki, KGHM ensured the Antonov AN-225 loaded with PPE landed at Warsaw’s Okęcie airport.

The aircraft was filled with a total of 600,000 medical masks, over 250,000 pairs of overalls, over 10,000 pairs of protective goggles, about 150 ventilators and almost 1.5 million masks.

The total value of medical materials carried by the air transport was close to $15 million.[1] Since the first shipment was completed in March 2020, KGHM has continued to organize transportation for additional shipments of protective gear.

Teck supports the global response and future recovery efforts

When the pandemic reached North and South America, Canadian-based producer, Teck, put in place necessary measures to protect its workers and communities. In addition to extensive preventative measures and employee resource support, Teck created a $20 million fund to support global pandemic response and future recovery efforts.[2]

To date Teck has:

-Donated one million KN95 masks to British Columbia’s healthcare system
-Created a community investment fund to support local organizations in Canada, Alaska and Chile
-Provided $250,000 to the Canadian Red Cross
-Donated $500,000 to UNICEF (collaborating with the World Health Organization Solidarity Response Fund) for critical medical and sanitation supplies, equipment and training in over 180 countries
-Contributed $250,000 to the China Foundation for Poverty Alleviation to support children in rural communities in China
-Presented a $250,000 contribution to the VGH and UBC Hospital Foundation (Vancouver General Hospital, British Columbia)
-Made $1 million available to advance the use of copper products supporting infection control and prevention[3]

Anglo-American ensures a caring touch

During the pandemic, copper producer Anglo-American ensured its employees remained safe and healthy. Implementing an extensive health awareness and support program called “We Care,” the program protects the health and well-being of Anglo-American’s 90,000+ employees and full-time contractors around the world. The program assists employees to understand how to protect themselves and others from catching the virus, monitors their health to pick up early symptoms and manages their health if they test positive for COVID-19.[4]

Source: Anglo-American

Anglo-American also ensures there is a site-specific response and extends this support into the community. For example, in Peru at Quellaveco, a range of necessities were provided, such as:

-12,000 nonperishable food packages, plus 3,000 packages with agricultural products
-4,350 meal packs a day to health employees and volunteers, the army and police
-500,000 COVID-19 quick testing kits in partnership with the National Mining Society
-10,000 protection masks and pairs of gloves for police and army forces
-Vehicles to help transport health personnel
-6 intensive care bed stations, with all required equipment, including ventilators

Anglo-American’s response to the coronavirus has been recognized by the World Economic Forum for providing essential support to host communities around the world—including Africa, Australia and the Americas.[5]

BHP: Maintaining healthy people and operations

With over 72,000 employees, BHP recognized that each country where it operated would have a unique response to the pandemic. It decided to create regional emergency management teams and a CEO-level crisis management team to coordinate with country-specific health authorities and governments.

Since the onset of the outbreak, the Australian-based copper producer has worked to pay all outstanding invoices to small and Indigenous businesses in seven days. Additionally, BHP created a six million AUD fund to support contracted employees from labor-hire companies who were not entitled to sick leave, as well as one-off payments for people quarantined after entering Australia.[6]

To support its operations and surrounding communities, BHP established a 50 million AUD Vital Resources Fund, which will go to essential community services, mental health resources and critical infrastructure.[7]

Grupo Mexico aids rural communities

The pandemic has highlighted a shortage of hospital beds, facilities and medical services in rural regions. In a public-private partnership with the Mexican government and BBVA Mexico called “Together for Health,” Grupo Mexico focused on equipping the country’s hospitals and healthcare workers with ventilators and supplies.[8] That includes providing 10,000 protection kits, which will go to 80 rural hospitals to support the fight against the pandemic.[9]

Source: Grupo Mexico

In the southern Oaxaca state in Mexico, Grupo México aided the construction—in less than 10 days—of a 60-bed, 6,800 square meter hospital. Until Grupo Mexico became involved, the hospital’s construction was incomplete, and equipment and supplies could not be secured. Grupo Mexico invested $7.8 million so the hospital could be completed and equipped to assist the local community. The hospital joins a contingent of nine other new facilities ready to treat coronavirus cases in Mexico.[10]

Glencore launches global community support fund

Glencore operates more than 180 sites and offices in over 35 countries. The scale and diversity of its operations mean the impact of the virus varies by location. To respond to the individualized needs of each operation, the company established the Glencore Community Support Fund.

Source: Glencore

The $25 million fund is flexible and responsive. It complements existing efforts by providing the support communities need, including working with local authorities to provide clean water, hygiene products and medical equipment. In some regions the fund will be used to support students’ education despite the closure of schools. The Glencore Community Support Fund donated $550,000 to the Antofagasta Regional Hospital in Chile to provide medical devices and PPE. This follows an earlier donation to purchase mechanical ventilators for the hospital.[11]

Antofagasta in the fight to protect Chileans

 In Chile, protecting the health and safety of employees and contractors is critical for Antofagasta. The company has set up a $6 million community fund in Choapa Province and Antofagasta to help fight the virus. It also established a task force to review the company’s actions and work with local communities to develop a coordinated approach. Antofagasta has protected its workforce by limiting its operations to half or fewer employees to prevent the spread of infection.

Rio Tinto: We are all in this together

Rio Tinto understands the difficulties faced by rural and heavily impacted communities during the pandemic. They established a $25 million fund to help communities fight back. In Australia, 6,000 liters of locally made hand soap were donated to at-risk Indigenous communities. Additionally, Rio Tinto donated more than 600 liters of soap and cleaning products to nine schools and childcare centers in Western Australia to assist with a safe reopening.[12]

To support China’s efforts to mitigate the impact of the coronavirus, Rio Tinto donated $1 million to the Chinese Red Cross. The funds were used to support hospital upgrades and purchase medical supplies across areas most affected by the outbreak. The Red Cross Foundation, the Chinese Government’s preferred foreign donor, regularly contributes to China’s medical aid program and has been actively raising funds to strengthen medical resources in the affected areas.[13] Rio Tinto continues working with Chinese partners to identify other practical ways to offer support.

In addition to donations made to national and international communities, Rio Tinto’s Fund will also include further investment in childhood education and financial literacy programs and support remote learning as it becomes the global norm.[14]

For more information on ICA’s membership and response to the coronavirus, visit here.

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[1] KGHM Polska Miedź S.A. imports medical equipment costing over USD 15 million from China. The first plane has already landed! (2020, March 26). https://media.kghm.com/en/news-and-press-releases/kghm-polska-miedz-s-a-imports-medical-equipment-costing-over-usd-15-million-from-china-the-first-plane-has-already-landed

[2] Teck updates during COVID-19. (n.d.). https://www.teck.com/updates/#19

[3] Teck Announces $20 million COVID-19 Response Fund. (2020, April 16). Retrieved from https://www.teck.com/news/news-releases/2020/teck-announces-20-million-covid-19-response-fund

[4] Anglo American provides extensive COVID-19 support to employees and host communities where it’s most needed. (2020, April 06). Retrieved from https://www.angloamerican.com/media/press-releases/2020/06-04-2020

[5] Clift, K., & Court, A. (2020, March 28). COVID-19: How companies are responding. Retrieved from https://www.weforum.org/agenda/2020/03/how-are-companies-responding-to-the-coronavirus-crisis-d15bed6137

[6] BHP increases support for local business and contract labour hire during Covid-19 pandemic. (2020, March 19). Retrieved from https://www.bhp.com/media-and-insights/news-releases/2020/03/bhp-increases-support-for-local-business-and-contract-labour-hire-during-covid-19-pandemic/

[7] BHP establishes $50 million (AUD) Vital Resources Fund to help support regional communities. (2020, March 25). Retrieved from https://www.bhp.com/media-and-insights/news-releases/2020/03/bhp-establishes-$50-million-aud-vital-resources-fund-to-help-support-regional-communities/

[8] BBVA Mexico and Grupo Mexico Donate Ventilators for Treatment of COVID-19 Patients. (n.d.). Retrieved from https://www.gob.mx/sre/prensa/bbva-mexico-and-grupo-mexico-donate-ventilators-for-treatment-of-covid-19-patients

[9] México, G. (2020, June 16). Hemos entregado 10 mil kits de protección a #IMSSBienestar a 80 hospitales rurales del país para apoyar el combate a la pandemia del #Covid_19.#EnElNombreLlevamosElCompromiso https://twitter.com/GMexico_oficial/status/1272692948270899200?s=20

[10] BNamericas – Grupo México to speed up Oaxaca hospital works. (2020, March 26). Retrieved from https://www.bnamericas.com/en/news/grupo-mexico-to-speed-up-oaxaca-hospital-works

[11] Glencore. (2020, June 29). Through our Community Support Fund, we recently donated $550,000 to the Antofagasta Regional Hospital. The money will be used to provide medical devices and PPE to deal with the pandemic, and follows an earlier donation made to purchase mechanical ventilators for the hospital. Retrieved from https://twitter.com/Glencore/status/1277591000903561218?s=20

[12] We’re All in This Together. (n.d.). Retrieved from https://www.riotinto.com/news/covid-19/we-are-all-in-this-together

[13] B. (2020, February 06). Rio Tinto Supports China’s Fight Against Novel Coronavirus Outbreak. Retrieved from https://www.businesswire.com/news/home/20200205005929/en/Rio-Tinto-Supports-China%E2%80%99s-Fight-Coronavirus-Outbreak

[14] We’re All in This Together. (n.d.). Retrieved from https://www.riotinto.com/news/covid-19/we-are-all-in-this-together

Freeport McMoRan Looks to the Future with Artificial Intelligence

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Miners have steadily pursued technological advancements to increase efficiencies, address technical difficulties and limit carbon emissions. Ore erosion has also led miners to continually search for new techniques to better extract the red metal. At Freeport, this challenge has led to a technological breakthrough that will generate new levels of output.

Work Begins

In 2018 metallurgists, engineers and equipment operators at Bagdad mine, in Arizona, collaborated with McKinsey data scientists to develop a model to analyze three years of data from thousands of sensors at the concentrating mill.

The program investigated whether extraction at the mill was at full capacity—as Freeport analysts had projected—or could be improved.

The model led to major changes in the ways Bagdad personnel analyze and extract copper. It integrates data from sensors around each project to examine new tactics that enhance the performance of processing mills, crushers and the mine itself.

Previously, Bagdad staff estimated all the ore entering the mill was the same type. Yet the sensors identified seven distinct types of ore and demonstrated the mill’s standard for controls did not match the properties of all the ore types.

Showing these fundamental distinctions paved the way for the adoption of new techniques to increase ore recovery. The team found adjusting the mill’s controls to accommodate each of the seven ore types could help enhance copper production by at least 10 percent or more.

Moreover, the team found that changes to its vast flotation tanks could extract more copper by changing the potential hydrogen (pH) level. Bagdad is now boosting its production by 9,000 metric tonnes.

We are really encouraged by what’s happening … across the board we’re going to be using these big data analytics to help make our business better, reduce costs and improve productivity.”

 – Richard Adkerson, CEO Freeport McMoRan

Thinking about ore clusters in terms of data from the mill’s instruments, rather than classifications from traditional geology, was a major mindset shift—and it opened many new possibilities for improving performance.”

 – Sean Buckley, McKinsey Partner and Analytics Leader

An Evolution Ensues

Freeport has since expanded the artificial intelligence (AI) program across the Bagdad project and to its Morenci complex, also in Arizona. The operations for the processor and concentration include the same AI to maximize ore recovery. These solutions enable performance optimization, enhance consistency and reduce bottlenecks.

The data has allowed Freeport to adopt mining techniques with greater efficiency, establish better visibility and use equipment more effectively. These changes allow for the best performance for every shift.

Freeport will deploy this technology system in Peru at its Cerro Verde mine—which is five times the size of the Bagdad operation—before scaling it up at other projects.

The application of these AI systems at mines across North and South America is forecast to increase production by 5 percent or 90,000 tonnes.

We have set an aspirational goal of adding 200 million pounds (or 90,000 tonnes) of copper from these initiatives with very little capital investment. It’s been a remarkable success.”

 – Richard Adkerson, CEO Freeport McMoRan

Achieving such an increase in production typically would require major capital investments of $1.5 billion to $2 billion to fund purchases such as crushing equipment, new haul trucks and large shovels. Realizing comparable gains through analytics alone is a significant breakthrough for the miner.

Strategies for Growth

These achievements come alongside Freeport’s other important strategies for growth. The company successfully completed a transition from its open pit project at Grasberg, to mining underground, which is forecast to yield 28,000 tonnes per day (t/pd) this year before full production of 80,000 t/pd begins in 2022. Freeport will bring its Lone Star copper mine in Arizona to full production by the end of 2020, which is expected to produce 90,000 tonnes (200 million pounds) of copper per year.

After losses from last year’s fall in global copper demand and the company’s sale of a large portion of its Grasberg mine in Indonesia, the AI program and other initiatives offer a critical, new trajectory

Freeport’s Future of AI

In the coming decades, AI is well-poised to foster a sea change in the global mining sector. Widespread applications will emerge and Freeport, with its massive projects and staff expertise will, without a doubt, continue to rank among the industry’s greatest pioneers in enriching ore grades worldwide.

About Freeport-McMoRan Inc.  
Based in Phoenix, Arizona, Freeport-McMoRan operates large, long-term, geographically diverse assets of copper, gold and molybdenum and is the world’s largest publicly traded copper producer. Its mines include the Grasberg district in Indonesia, one of the world’s largest copper-gold deposits, and major operations in North and South America, encompassing the large-scale Bagdad and Morenci minerals districts in Arizona, the Cerro Verde operation in Peru and El Abra in Chile.

About McKinsey & Company
Founded in 1926 and with a presence in 65 countries, McKinsey is one of the world’s top management consulting firms. With services which include incorporating analytics, digital and design into processes and mindsets, McKinsey’s 30,000 employees include leading data scientists, engineers and analysts who help clients in the public, private and social sectors.

About the International Copper Association
The International Copper Association’s brings together the global copper industry to develop and defend markets for copper and make a positive contribution to the UN’s Sustainable Development Goals. Headquartered in Washington, D.C., ICA has offices in three primary regions: Asia, Europe and North America. ICA and its Copper Alliance® partners are active in more than 60 countries worldwide. For additional information, please visit www.copperalliance.org.

Rio Tinto Advances Clean Energy at Kennecott

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Top Miner Switches to Solar and Wind Power at One of the World’s Largest Copper Projects

Rio Tinto’s Kennecott operations, including its flagship Bingham Canyon copper mine that satisfies 15 percent of U.S. copper demands, are among the most prolific in the world. Kennecott has also become one of the industry’s cleanest, permanently shutting its last coal plant and reducing its carbon footprint by 65 percent. This facility, located 35 miles southwest of Salt Lake City, has become a leader in solar and wind power.

In 2016, officials shut three of the company’s four coal-fired plants. The following year, officials idled the last coal-fired plant for maintenance and air quality requirements before formally closing it in May 2019. These transitions occurred with no job losses.

The closure of the last plant followed extensive consultations with local communities and state officials. It also earned Kennecott the 2019 Clean Air Business Partner of the Year Award from Utah’s Clean Air Partnership, a prominent nonprofit in the state.

The transition away from coal has reduced air pollutant emissions by 6,000 tonnes—one million tonnes of CO2 – annually.

Retiring our power plant is an important milestone for our business because it will immediately reduce our emissions to the local airshed, and I’m proud Kennecott is a leader in pairing our electrical needs with carbon-free energy certificates.”

 – Marc Cameron, Managing Director, Rio Tinto Kennecott

Rio Tinto’s decision to retire their power plant is a win-win for our community. Their decision will simultaneously support Utah’s shift toward a low-carbon economy and improve air quality in the Salt Lake Valley”

 – Gary Herbert, Governor of Utah

Clean Energy: Tried and True

Kennecott now meets its energy needs through 1.5 million Megawatt hours (MWh) of clean energy from Rocky Mountain Power, a local regulated electric utility. Sourced in part from a Utah solar portfolio, Rocky Mountain helps the complex generate power from Wyoming-based wind turbines. This supply covers mining, recycling and crushing operations at the facility.

Kennecott draws on natural gas to power its processing facilities, which include one of the world’s most advanced copper and precious metals smelters. It uses diesel power to operate its fleet of 88 haul trucks.

The Green-e ® certification program of the nonprofit Center for Resource Solutions, guarantees transparency by issuing certificates to establish that Rocky Mountain generates and delivers clean energy from renewables. It provides a certificate for every Megawatt hour of clean energy it produces. The Division of Public Utilities of Utah regulates the certificate program.

Rio Tinto is committed to playing a part in the transition to a low-carbon economy. This move will significantly reduce emissions associated with our operations in Kennecott and allow us to offer customers copper, gold and silver with a reduced carbon footprint.”

 – Jean-Sébastien Jacques, Chief Executive, Rio Tinto

Exploring Efficiencies

Kennecott officials are constantly developing new ways to increase energy efficiency. The company has deployed a $10 million, 6.2-Megawatt (Mw) combined heat and power (CHP) system at its copper processing facility. The system boasts a superior output that is more than 80 percent energy efficient. Its performance outranks that of separate heat and power systems, which are less than 50 percent efficient. The CHP provides the entire steam supply for the facility, at a rate of up to 70,000 pounds per hour. Meanwhile, it supplies half of the plant’s electricity, with rates of up to 6.2 MW per hour, levels sufficient to power 6,000 homes.

These are only the latest endeavors to make Kennecott’s projects greener. In 2012, officials began smelting scrap, including old copper wiring, into its recycling process. In 2017, they processed over 1.27 million kg (2.8 million lbs.) of copper from recycled scrap, enough to provide the electrical wiring for 6,400 newly constructed homes.

A Sustainable Future

These initiatives continue alongside Kennecott’s recently approved $1.5 billion investment—to commence in 2020)—to support operations at their projects through 2032. This commitment is part of a greater $5 billion dedicated to mine life extension, environmental stewardship and modernization initiatives since Rio acquired Kennecott in 1989.

“This is an attractive, high-value and low-risk investment that will ensure Kennecott produces copper and other critical materials to at least 2032.”

 – Jean-Sébastien Jacques, Chief Executive, Rio Tinto

The funds will allow personnel to improve infrastructure alongside strip waste rock mining in the second phase of the South Wall Pushback operation. The construction, by adjusting its south wall, will enable mineral extraction to move into a fresh area of ore body to deliver nearly a million tons of refined copper between 2026 and 2032. This surge in production will accommodate growing worldwide demands.

Investing in Climate Resilience

In February 2020, officials at Rio announced plans to invest approximately $1 billion in the next five years to satisfy their 2030 climate change targets and 2050 net-zero emissions goal. The measures will include curbing company-wide emissions intensity from 2018 levels by 30 percent.

Between 2008 and 2019 absolute emissions from managed operations were reduced 46 percent and emissions intensity fell 29 percent.

Officials for Rio, which has ceased mining for coal, have stressed that they acknowledge global warming as a “critical global challenge.” They have called on industry associations to join their efforts to move decisively to address the problem.

As climate change continues to pose an existential threat to the planet so, too, does it endanger mining sites the world over. In a time of unprecedented uncertainty, Rio Tinto and Kennecott are making great scalable strides in the international fight to effectively mitigate climate change. It is an effort that will pay dividends for mining and the planet alike.

About Rio Tinto Kennecott

Rio Tinto Kennecott is a fully integrated mining operation just outside Salt Lake City, Utah, U.S., and a fully owned unit of Rio Tinto. For more than 110 years, Kennecott has been mining and processing minerals from the rich ore body of the Bingham Canyon Mine. In addition to Bingham Canyon, the subsidiary possesses other facilities at South Jordan in the Salt Lake Valley including a refinery, a concentrator and a smelter.

About Green-e® certification
A program of the San Francisco-based nonprofit Center for Resource Solutions, since 1997, Green-e certification is a global leader in clean energy transparency. The initiative empowers businesses and people to buy verified clean energy. Green-e also promotes the advancement of renewable energy technology, markets and policies. In 2019, it certified over 62 million Megawatt hours (MWh) in retail business.

About Rocky Mountain Power
Based in Salt Lake City, Utah, Rocky Mountain Power is a utility which provides safe, reliable affordable and sustainable electricity. Committed to developing renewable resources, Rocky Mountain provides services to one million customers across in Idaho, Utah and Wyoming.

About the International Copper Association
The International Copper Association’s brings together the global copper industry to develop and defend markets for copper and make a positive contribution to the UN’s Sustainable Development Goals. Headquartered in Washington, D.C., ICA has offices in three primary regions: Asia, Europe and North America. ICA and its Copper Alliance® partners are active in more than 60 countries worldwide. For additional information, please visit www.copperalliance.org.

Scaling Innovation and Sustainability: Codelco Mobilizes Electricity, AI and High Tech for Green Copper Production

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In Chile, miners are boosting efficiencies while reducing carbon emissions and cost. Codelco, a global leader in copper production, is making significant technology charges at its mines that are among the largest and oldest in the industry.

Codelco, the Chilean state copper miner, is transforming its assets to maintain production levels and increase their lifespan amidst rising costs. It has dedicated $40 billion to upgrade its facilities over 10 years (2019 – 2029). Technological innovations—from artificial intelligence (AI) and automation to electric vehicles—are key to the strategic plan. The changes will lower the company’s carbon footprint, in line with the U.N. Sustainable Development Goals (SDGs) and follow the Master Plan for Sustainability developed in 2016.

Automation, Optimized

In April 2019, Codelco announced that it contracted Sandvik Mining and Rock Technology, the equipment manufacturer, to supply a high-technology, production-automation system. “AutoMine” will be used at Codelco’s Chuquicamata mine—located in the Antofagasta region—to transition it from an open-pit to an underground mine.

AutoMine allows Codelco to fully automate a newly-acquired fleet of Sandvik LH621 loaders. The system is also highly adaptable and permits manually operated machines to continue to function alongside automated equipment, allowing technicians to gradually expand the scope of the programmed equipment.

The system covers automated and remote operations ranging from individual machines to multiple, full fleets. This flexibility ensures a seamless transition to automation over time. Sandvik’s systems have operated for over 2.5 million hours at hundreds of sites around the world without an injury to date.

Additionally, in May 2019 Codelco released plans to introduce the AutoMine fleet solution to operate trucks at the El Teniente mine in Machali. This mine ranks as the largest underground copper mine in the world.

In 2004, in an earlier partnership with Sandvik, this mine became one of the first in the world to utilize semi-automated load haul dumpers (LHDs) to extract ore. It then used AutoMine to fully automate the LHD fleet in the Pipa Norte and Diablo Regimiento sections of the asset.

We are proud Codelco continues to choose Sandvik as a strategic partner for its most innovative projects. Our technology will drive even safer, smarter and more productive mining.”

– Patricio Apablaza, Vice President for Andean and South Cone, Sandvik Mining and Rock Technology

In addition to AutoMine, Codelco utilizes Sandvik’s OptiMine Analytics. The software collects and analyzes data from all stages of the mining process. It continually assesses the viability of the equipment in use and applies predictive analytics to forecast potential changes. The program enables users to operate more safely and productively.

AI and Copper: The Future is Now

At its Division Ministro Hales (DMH) mine near Calama, Codelco has joined Uptake, a Chicago-based leader in artificial intelligence (AI), to monitor its mining equipment. The collaboration will cover grinding mills, crushers, roasters, haul trucks and pumps.

We are excited to partner with Codelco given their forward-thinking to accelerate not only their operations but the industry. Their data-first approach is outstanding and sets the tone for what is possible.”

– Jay Allardyce, Uptake Executive Vice President of Industry, Product and Partnerships

Uptake’s programs will assess the functioning of these machines to ensure they continually perform at optimal capacity. The programs will enable specialists to project maintenance needs before they develop to avoid interruptions in operations. Codelco aims to introduce an integrated system that will span all of the miner’s active projects.

Deploying artificial intelligence will allow Codelco to make the best use of operational data and allow us to boost mining productivity, reduce costs and maintain safe machine operations.”

– Jaime Rivera, Codelco General Manager, Andina Division

Specifically, Uptake’s Asset Performance Management (APM) software will bring data science and analytics to the mining sector. It provides Original Equipment Manufacturer (OEM)-agnostic predictions, insights and recommendations that can be used at any asset. The data analytics tools allow Codelco to forecast changes that will impact revenue.

Fully Loaded with Electricity

In May 2019 Codelco announced plans to add its first hybrid loader to El Teniente mine’s fleet to reduce its carbon footprint.

The load-haul-dump (LHD) machine, constructed by Japan’s Komatsu, is mainly powered by electricity, using diesel only to generate electrical power. This LHD possesses a Switched Reluctance (SR) Hybrid Drive that stores excess energy and resupplies it as needed.

LHD offers acceleration rates that are nearly double conventional, mechanically propelled LHDs. Officials with Codelco estimate that Komatsu’s LHD product will lower overall costs by an estimated 30 percent and fuel costs by 20 percent.

Once Codelco expands its electric fleet further, experts forecast the changes could bolster overall outputs by 10 – 20 percent and decreasing emissions by 25 percent.

The company already has deployed an electric-powered underground scissor lift—operating at a cost 70 percent less than the diesel-powered model—and with a 100 percent noise level decrease. Meanwhile, these scissors emit up to 90 percent less heat than machines with diesel engines.

The addition of Komatsu’s LDHs will add to Codelco’s robust electric portfolio. The miner already uses two fully-electric buses to transport mine employees from Rancagua to El Teniente, 3,100 meters (10,170 feet) above sea level. It also runs a 100 percent electric-powered bus for residents in the town and provides free transport for local school children. This year it is adding an electric minivan to circulate in the interior of the Chuquicacamanta mine.

Using our mines to full effect is a key driver for our business. Automation and optimization are critical to getting the most from our mines and keeping our people safe while we do it.”

 – Andrés Avendaño, Operations Manager, Chuquicamata Codelco

About CodelcoSandvik

Based in Santiago and established in 1976, Codelco (Corporación Nacional del Cobre de Chile or the National Copper Corporation of Chile) is a Chilean state-owned firm and the world’s largest copper miner with 19 percent of global red metal reserves. Codelco is also one of the largest molybdenum producers anywhere with 24,000 tonnes produced in 2018.

About Sandvik

Sandvik AB is a Swedish firm founded in 1862 which specializes in high technology engineering services for the mining and construction industries. These include tools and tooling systems for equipment, industries and advanced industrial heating. With a presence in 160 countries Sandvik has about 42,000 employees.

About Komatsu

Komatsu Ltd. is a Japanese multinational firm and one of the world’s leading manufacturers of mining and construction equipment, along with other industrial equipment including lasers and electric generators. Headquartered in Tokyo and founded in 1921, Komatsu has 59,000 employees.

About Uptake

With headquarters in Chicago and offices in Silicon Valley, Washington D.C., Toronto and Dubai, Uptake is a premiere provider of artificial intelligence (AI) and IoT software for industrial firms. Uptake combines data analytics and machine learning with strong industry knowledge to create enhanced safety, reliability and productivity. Uptake is used by global customers of all sizes to leverage data, creating pioneering efficiencies and market advantages.

About the Copper Alliance®

The Copper Alliance® is a network of regional copper centers and their industry-leading members. It is responsible for guiding policy and strategy and for funding international initiatives and promotional activities. Headquartered in Washington, D.C., the organization has offices in three primary regions: Europe, Asia and North America. The Copper Alliance has partnerships and programs in more than 100 countries.

Codelco Builds More Sustainable and Responsible Copper Supply Chains

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Beyond innovations in AI, automation and electric technology, International Copper Association member Codelco is leading efforts to achieve new levels of transparency within the copper industry. The miner has teamed with Nexans, a Paris-based leader in advanced cabling and connectivity, to make advancements in sustainability. The two companies signed a Memorandum of Understanding (MOU) on 12 January 2018 to strengthen the existing commercial relationship between Nexans and Codelco. The primary aim of the MOU is to develop and implement environmental, community friendly and ethical processes in the copper industry that promote sustainable practices.

The two companies have created procedures to ensure and document the sustainable production of copper along the entire supply chain. They trace the origins of the copper from its extraction at Codelco’s mining sites, through its delivery to and processing at Nexans-owned facilities, and end with its sale on the market. This partnership produced the first “carbon-neutral” shipment of copper cathodes in 2018.

Both Nexans and Codelco are directly and strongly linked within the copper value chain and understand how critical it is for all industry sectors to ensure sustainable and responsible supply chains.”

– Pascal Portevin, Senior Corporate Executive Vice President, International and Operations, Nexans

Copper is one of the planet’s most prized resources. This combined initiative with Codelco reinforces Nexans’ ongoing commitment to Corporate Social Responsibility (CSR) and sustainable development. From start to finish, Codelco yields an excellent track record of sustainability and efficiency in extracting the red metal so critical to today’s world.

About Codelco

Based in Santiago and established in 1976, Codelco (Corporación Nacional del Cobre de Chile or the National Copper Corporation of Chile) is a Chilean state-owned firm and the world’s largest copper miner with 19 percent of global red metal reserves. Codelco is also one of the largest molybdenum producers anywhere with 24,000 tonnes produced in 2018.

About Nexans

Based in Paris, Nexans S.A. is a global firm and one of the largest manufacturers of cable while specializing in the fiber optic sector. Founded in 2000, with a presence in 40 countries Nexans has 26,000 employees and is active in four main business areas: power transmission and distribution, energy resources, transportation and buildings.

About the Copper Alliance®

The Copper Alliance® is a network of regional copper centers and their industry-leading members. It is responsible for guiding policy and strategy and for funding international initiatives and promotional activities. Headquartered in Washington, D.C., the organization has offices in three primary regions: Europe, Asia and North America. The Copper Alliance has partnerships and programs in more than 100 countries.