Codelco will invest $4.33 billion this year, of which $2.27 billion will go to the investment plan managed by the Project Vice-Presidency (VP), a specialised unit created in 2005, which is responsible for managing and implementing the company’s key development projects. The estimated investment is a new record in Codelco’s history; last year it invested $2.545 billion, of which $1.02 billion went to VP’s project portfolio. This significant investment is primarily focused on developing Codelco’s structural projects: Ministro Hales, El Teniente New Mine Level, Chuquicamata Underground Mine, Andina Expansion 244, RT Sulphide Mine Phase II and San Antonio Oxides.

The implementation of these projects will create a significant number of jobs, which on average will benefit more than 16,000 employees. The company stated: “These five key projects will enable Codelco to maintain – and even increase – its current production rate and improve its competitiveness, consolidating its leadership in the global mining industry.” Ministro Hales is currently removing overburden and waste materials from the mine in the world’s large pre-stripping operation involving 238 Mt – and it is also building the crushing, grinding and flotation plants, the roasting complex and the sulphuric acid and arsenic abatement plants. They are all scheduled to start operations by mid-2013. The New Mine Level – El Teniente Project, that in 2011 had its Environmental Impact Assessment (EIA) approved and investment authorised, is currently completing early works, including the Confluence Platforms, where the access roads to its main tunnels will be located. Additionally, at the beginning of this year, project implementation commenced both from inside and outside the mine.

At Chuquicamata Underground, in 2011 the project was approved by the Board in order to implement its early works, which were positively recommended by Cochilco – Mideplan. Now, together with implementing the feasibility study, the site has started works that are part of the project’s “critical route.” An $850 million investment, the early work for Chuqui Underground includes a series of earthworks and major excavations, such as tunnels that are access roads for both workers and to transport ore; shafts and drifts for clean air intake and air removal; mine ramps; and other support works, such as water networks, power supply, telecommunications and part of the industrial facilities. The Andina Expansion 244 project has made progress in two sub-projects that form part of its early works -Acid Water Treatment and Node 3,500- and by the end of 2012 its feasibility study should be completed. Finally, RT Sulphide Mine – Phase II is Codelco’s fifth structural project and it involves a new concentrator plant – that will use desalinated seawater – to process the sulphide reserves from the Radomiro Tomic Mine. In 2011, the project completed its prefeasibility stage and this year it has to complete the feasibility study.