Tag Archives: Chuquicamata

Sandvik to automate and digitalise Codelco’s Chuquicamata underground mine

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Sandvik says it will automate and digitalise Codelco’s underground copper operation at Chuquicamata, in Chile, creating one of the “most efficient and advanced underground mines in the world”.

Sandvik’s AutoMine® and OptiMine® solutions will allow Codelco to operate its new fleet of Sandvik LH621 loaders in fully autonomous mode, the mining equipment maker said.

Codelco is converting Chuquicamata from an open pit to underground mine as part of a 10-year strategic project to prolong its existing operations. It is due to start up in 2019.

Sandvik said: “The open system integrates manual operations and autonomous equipment into one powerful solution with AutoMine and OptiMine, enabling full transparency and real-time control over the parallel production and mine development activities.”

Andrés Avendaño, Operations Manager, Chuquicamata Underground, said: “Using our mines to full effect is part of our focus on sustainability and a key driver for our business. Automation and optimisation are critical to getting the most from our mines and keeping our people safe while we do it.”

Sandvik and Codelco started their automation journeys together with the first-ever AutoMine loading system installation at Codelco’s El Teniente copper mine, in 2004, Sandvik said.

Riku Pulli, Vice President, Automation, Sandvik Mining and Rock Technology, said: “Codelco has been an important partner for us from the beginning. It’s fantastic to continue the partnership as our visions are well aligned. We look forward to working with Codelco to deliver even smarter, safer, more productive mining through digitalisation.”

Codelco is the number one copper producer in the world and is owned by the Chile government. It controls about 19% of the world’s copper reserves and is also the second producer of molybdenum worldwide, with 24,000 t produced in 2018.

Sandvik’s digital solutions, including AutoMine, OptiMine and “My Sandvik” are working in hundreds of mines around the world.

The AutoMine product family allows customers to scale up automation at their own pace, covering all aspects of automation, from remote and autonomous operation of a single piece of equipment to multi-machine control and full-fleet automation using automatic mission and traffic control capabilities. AutoMine installations have logged more than 2.5 million hours with zero lost time injuries, according to the company.

OptiMine, meanwhile, is a suite of digital tools for analysing and optimising mining production and processes. It integrates all relevant data into one source, delivering both real-time and predictive insights to improve operations, Sandvik said. OptiMine is open and scalable, giving customers the flexibility to build at their own speed and incorporate other equipment, systems and networks.

Codelco terminates SNC-Lavalin contract at Chuquicamata

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Codelco has terminated its contract with SNC-Lavalin following a dispute related to a copper project the engineering firm was working on for the mining company.

SNC-Lavalin, which confirmed the news in a press statement, said Codelco had also initiated a drawdown on its approximately $42 million in bank guarantees.

News of a problem with one of SNC-Lavalin’s mining and metallurgy contracts came to light earlier this year, when the Canada-based company said an unfavourable cost reforecast related to a project would affect its 2018 financial results.

The two parties were unable to agree on a way forward for the project and, following further discussions, agreed to settle the dispute through an accelerated arbitration process. SNC-Lavalin said at the time that it expected to make significant recoveries in the future, but it would in the meantime continue to work on the project, which it expected to complete by the end of the June quarter.

Codelco said the $260 million engineering, procurement and construction (EPC) contract for the building of two new acid plants at the Chuquicamata smelter, in Chile, had been terminated due to a serious breach in the contract milestones.

“Among the non-compliances, are the delay in payments to its subcontractors, delays in the execution of the project and problems in the quality of the works, among others,” Codelco said in a news release translated from Spanish.

SNC-Lavalin, which earlier this year stopped bidding on all future mining EPC projects, said it was “appalled and surprised” by the decision taken by Codelco.

“We had reached an agreement in good faith on February 1, 2019, regarding the full completion of the project and a process for a fast track dispute resolution of previously announced unresolved issues through accelerated arbitration.”

The company said as it was nearing the end of the project completion, Codelco’s actions would put the completion and commissioning date further at risk.

“We believe that this termination is unwarranted and in breach of good faith agreements reached by the parties. It should be noted that Codelco has reached this decision after SNC-Lavalin openly informed Codelco of the status of the execution of the works, as requested by Codelco, which showed delays caused by site conditions that were the responsibility of Codelco, and the poor and unjustified acts by the main construction subcontractors,” SNC-Lavalin said.

SNC-Lavalin said it was now demobilising the job site and assessing the legal and financial impact of Codelco’s decision and preparing the dispute resolution actions to “recover as much as possible of the previously announced losses that are due directly to our client and to poor sub-contractor performance”.