Tag Archives: Codelco

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 looks to Uptake’s AI solution for equipment maintenance gains

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Uptake says it and the world’s largest copper producer, Codelco, are working on an artificial intelligence (AI) solution to monitor the health of mining equipment and ensure operations run efficiently and maintenance needs are predicted.

The agreement, part of Codelco’s digital transformation plan, includes mining and processing equipment at Codelco’s Division Ministro Hales (DMH) mine in Calama, Chile. In addition, Uptake will monitor grinding mills, roasters, crushers, pumps, haul trucks, and other machines with a view to creating a comprehensive and enterprise-wide Asset Performance Management solution across all of the company’s operating mines.

In 2017, the company’s DMH mine produced 215,086 t of copper alongside more than 126 t of silver.

Jaime Rivera, Codelco General Manager of the Andina Division, said: “Deploying artificial intelligence will allow Codelco to make best use of our operational data and allow us to reach our goals of boosting mining productivity, reduce costs and maintain safe machine operations through the predictive capabilities of Uptake’s Asset Performance Management (APM) software.”

Jay Allardyce, Uptake Executive Vice President of Industry, Product and Partnerships, said: “Codelco is the world’s leader in copper production and we’re pleased to support their digital efforts to make operations and maintenance expenditures more efficient by increasing visibility into the real-time and future health of mining machines.

“We are excited to partner with Codelco given their forward thinking to accelerate not only their operations, but the industry. With their data first approach coupled with our AI leadership, the transformation impact is outstanding and with leaders like Codelco it sets the tone for what is possible.”

Uptake’s APM software solution improves operational efficiency by leveraging AI to create business value from operational data, according to Uptake.

“Traditional asset management only covers routine maintenance tasks and fails to anticipate and adjust to the ways industry operates its business,” Uptake said. “Today’s asset-intensive environments require a new approach with industrial data science generating OEM (original equipment manufacturer)-agnostic insights, predictions and recommendations for any asset.”

By deploying Uptake APM, industry can unlock new operational efficiencies by making proactive maintenance decisions based on predictive insights, the company said. “Our industrial AI and machine-learning engines detect asset anomalies and help predict and prevent problems before they happen. Industry can also leverage the data analytics to understand how to drive more financial outcomes that impact business.”

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”.

Antofagasta backing ‘digital transformation’ of operations

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Antofagasta, in its 2018 financial results, has promoted its innovation focus, saying it is critical to creating long-term value and being “a key enabler of safe, sustainable competitiveness and growth”.

One of the ways the company is seeking innovative solutions is through the increased use of data and technology, which it calls “the digitalisation of operations”.

Antofagasta said it is investing significantly in this area, which has an implementation budget of $40 million, to strengthen its technological platform, including critical operating systems and connectivity.

The company has also applied advanced data analytics at its processing plants to better understand and improve their performance.

In the meantime, it said work was underway on the design of a Remote Centre that will allow integrated operations management at its Centinela operation in Chile. Service provider Wood is currently preparing a prefeasibility study for this technologically-advanced integrated operations centre, which includes cloud data storage and information management for its operations, easily accessible from anywhere in the world.

Antofagasta continued: “It’s not just at the operating level that there are benefits of improved data.

“Los Pelambres constantly monitors its tailings deposits and, as part of the Programa Tranque project, expects to start releasing the monitoring results online early next year. This will provide the community with real time information, helping to build trust between ourselves and our neighbours,” the company said.

Programa Tranque contemplates the development of an online monitoring system of tailing deposits to transmit, process and broadcast, in a user-friendly way, updated physical and chemical indicators of the deposits.

It incorporates the best available technologies and innovative mechanisms for the measurement of critical parameters and variables, as well as an information management platform to communicate information to authorities, mining companies, and the community, allowing an early warning system to be activated ahead of potential emergency situations.

In addition to Antofagasta, BHP and Codelco are partnering on this five-year programme that seeks to position Chile as the leading country in information transparency related to the performance of its tailing deposits.

FLSmidth’s Lindholm says miner investment in remote operations centre paying off

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In a wide-ranging talk on digitisation at the 2019 SME Annual Conference & Expo in Denver, Colorado, Mikael Lindholm, Chief Digital Officer of FLSmidth, said the use of remote operations centres was providing returns to those mining companies employing them.

Lindholm said FLSmidth had seen an influx of remote operations centres “popping up” across the industry, he told delegates during his keynote presentation.

“It is unhealthy to go up in the mountains or in the pits in the mines,” he said. “Being in a city is much safer. The less people you have in the mine, the less injuries you will see.”

He added: “Most mines, today, have a central control unit, but we now see to a greater extent remote control centres outside of the mines.”

Referencing a recent visit to Codelco and its remote operations centre in Santiago, Lindholm said the state-owned copper miner was running two operations remotely from this location.

The centre had allowed Codelco to attract personnel in the Chile capital, in addition to being able to coordinate all activities from one location, he said.

“From there, they manage everything happening in the pit, to the process plant to the logistics,” he said.

By coordinating these activities and having all the people in the same room, Codelco is making significant savings, Lindholm said. “They are making savings of around $50 million annually from this – purely from coordinating activities.”

This evolution is part of a wider move in the industry to improve productivity, maintenance and safety.

Lindholm, quoting statistics from McKinsey, said by 2025, there will be yearly savings of around $250 billion around operations management – “to do with process optimisation and coordination” – $100 billion/y on equipment maintenance – “thanks to condition monitoring, predictive and prescriptive maintenance” – and $10 billon/y on safety.