Centinela Second Concentrator
Creating a Tier 1 Mining District
Iván Arriagada | Chief Executive Officer Mauricio Ortiz | Chief Financial Officer
20 December 2023
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2
Centinela Second Concentrator
Project approval
- Antofagasta plc is pleased to announce that the construction of the Centinela Second Concentrator Project has been approved. Critical path works will begin immediately with full construction expected to commence after definitive project finance documents have been executed during Q1 2024.
- This presentation serves to summarise the Second Concentrator Project, which will add an average of 170,000 tonnes of copper equivalent production per annum.1
1 Note: 10-year average for the Centinela Second Concentrator following ramp up. | Image: Centinela's existing concentrator, which has a design capacity of 105ktpd. | 3 |
Unlocking Centinela's resource potential
District containing two concentrators and two SXEW plants
Mirador Mine | |||
(oxides) | |||
Km | SXEW Plant | Llano (Oxides) | |
c.20 | |||
Esperanza Mine | |||
Tailings | |||
facility | |||
Esperanza Sur Mine | |||
First | |||
Concentrator | |||
SXEW Plant | |||
Tailings | Second | Primary | Encuentro Mine |
(expanded) | |||
facility | Concentrator | Crusher | |
Existing facility | Existing mine | New facility |
Project summary
- Primary crusher and conveyor belt system (connecting mine and plant).
- 95ktpa concentrator incorporating HPGR1 technology.
- Expansion of existing water system (raw seawater).
Mine plan
- New concentrator initially fed by Esperanza Sur (ESS).
- Following expansion of existing Encuentro mine (ENC), new plant to be fed from two pits (ESS+ENC).
STRONG TRACK RECORD OF PRODUCTION
BROWNFIELD EXPANSION LEVERAGING +20 YEARS OF EXPERIENCE | ||||||||||||||||||||||||||||||
(ktpa) | 300 | Concentrates | ||||||||||||||||||||||||||||
200 | Cathodes | |||||||||||||||||||||||||||||
Production | ||||||||||||||||||||||||||||||
100 | 2023 Guidance | |||||||||||||||||||||||||||||
0 | ||||||||||||||||||||||||||||||
2002 | 2011 | 2 | ||||||||||||||||||||||||||||
2000 | 2001 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |||||||||
1 High pressure grinding rolls. | 5 |
2 Mid-point of 2023 guidance shown (as published January 2023).
Infrastructure: Leveraging existing investments
Reducing construction risk
Concentrate port
Antucoya
Pipeline (Concentrate
& Water)
Centinela |
Plant |
- Port operations: Expansion of existing facilities at Michilla, Northern Chile.
- Concentrate pipeline: Expansion of existing pumping capacity, increasing pipe diameter in sections.
- Water: Expansion of existing system, pumping raw seawater to Centinela and Antucoya, following path of concentrate pipeline. Processing plant already configured to operate on 100% raw seawater as a result.
Overview: Centinela Second Concentrator (December 2023) | 6 |
Technology and Innovation: Boosting competitiveness
Developing an asset for the next 36 years
CENTINELA DISTRICT MOVING TOWARDS FIRST QUARTILE C1
COST FOLLOWING EXPANSION
1st Quartile | 2nd Quartile | 3rd Quartile | 4th Quartile |
550 | |||
450 | |||
350 | |||
c/lb | Centinela YTD 2023 | ||
$1.76/lb | |||
250 | |||
150 |
50
-50
0%
1 Cost curve source: Wood Mackenzie (cost curve for 2028, dated Q3 2023).
Key drivers for cost savings | |
Mining | • Expanding existing fleet autonomy. |
• Larger fleet (373 tonne haul trucks). | |
costs | |
• Incorporating higher grade Encuentro deposit. | |
• Lower energy consumption through modern | |
Processing | technology (high pressure grinding rolls). |
• Higher power ball mills. | |
cost | • Operational synergies with existing infrastructure |
(water, molybdenum plant and tailings). | |
G&A | • Synergies in utilising existing services. |
cost | • Economies of scale. |
• Deployment of modern technology and larger | |
Total (net) | equipment offering economies of scale. |
cost | • Greater emphasis on concentrate production at |
Centinela (with associated byproducts). | |
Overview: Centinela Second Concentrator (December 2023) | 8 |
Capex composition: Brownfield nature reduces risk
Investing in our assets for industry-leading growth
PROJECT COST: $4.4BN
ADVANCED DETAILED ENGINEERING ESTIMATE INCLUDES
• | ADDITIONAL CONTINGENCY PROVISIONS |
• | ESCALATION FOR INFLATION |
• | UPDATES TO LOCAL LABOUR REGULATIONS |
PROJECT CAPEX COMPOSITION
BROWNFIELD EXPANSION MEANS NEARLY 60% OF INVESTMENT
TO BE ON MINING AND PROCESSING OPERATIONS
Contingency and
• | STRONGER LOCAL CURRENCY ESTIMATE |
billions) | 5 |
other
Project management costs
Mining
($, | 4 | 0.7 | 4.4 |
3.7 | |||
estimate | 3 | ||
cost | 2 | ||
Capital | 1 | ||
and service contracts
Water, port and
other
infrastructure
Processing
0 | |
Previously Announced Update (2022/23) | Updated estimate |
Capex estimate includes the following inputs and assumptions:
- 3% CPI assumption.
- Capital cost estimate of $4.4Bn is valued as of January 2024.
- Figures exclude advancement of mine development costs at Encuentro.
Overview: Centinela Second Concentrator (December 2023) | 9 |
Investment and financing timeline
Smoothing cashflow via 12-year debt facility
Project finance ($2.5 billion) | |
4.5-year grace period | • Facility structured at the project level (Centinela). |
• Term: 12-year facility: | |
- 4.5-yeargrace period.
o 7.5-year amortisation schedule.
• Disbursements to be made according to the progress in the execution of the project. | |||||
FIRST | |||||
DRAWDOWN | Shareholder contribution (Antofagasta share: $1.3 billion / Marubeni $0.6 billion) | ||||
2024 | |||||
• The water infrastructure sale and leaseback process may further strengthen Centinela's | |||||
cash balance and reduce capex requirements. | |||||
FIRST
PRODUCTION | |||||||||||
2027 | 7.5-year debt service and amortisation schedule | ||||||||||
2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 | 2032 | 2033 | 2034 | 2035 |
Concentrator and associated infrastructure ($4.4Bn) | Debt service | |
Overview: Centinela Second Concentrator (December 2023) | 10 |
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Antofagasta plc published this content on 20 December 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 December 2023 07:18:34 UTC.