Salobo ramp up

Salobo Copper / Gold Operation
May / 2014
Location
1
Infrastructure available
Power supply comes from two Eletronorte substations, Serra Norte and Integradora, both 230 kV.
The source of power is Tucuruí hidropower plant which generates 8,000 MW.
Copper concentrate warehouse (Parauapebas)
2 warehouses with 16,000 tonnes each one, 1 for Sossego and 1 for Salobo.
Carajás Railroad
Extension: 892 kilometres
Linking Carajás to Ponta da Madeira Terminal in Maranhão.
Copper concentrate warehouse (São Luis)
2 warehouses with 60,000 tonnes each, 1 for Sossego and 1 for Salobo.
Sea port terminal Pier 2, owned by EMAP but operated by Vale.
Ship loading
1 ship loading system shared by Salobo and Sossego – 1,350 t/h
Ship loading time - 1.5 to 3 days (according to ship capacity)
2
Copper in Carajás
Vale has two copper operations in Carajás: Sossego and Salobo.
3
Sossego’s operation
110 Ktpa of contained copper in concentrate
4
Southern Hub – concept
OPTION FOR EXTENDING SOSSEGO’S LIFE
Southern Hub consists of extending Sossego’s life of mine after current open pits exhaustion,
through the beneficiation of ores from Sossego Underground and Satellite Ore Bodies.
In this concept, Cristalino, located 45 km to the east, would come into operation in the future,
feeding Sossego’s processing plant and disposing of tailings inside Sossego and Sequeirinho
final pits.
5
Salobo Plant View
6
Salobo project facts
 70’s
Deposit discovery
 1993 -2004
Testworks, engineering, downstream integration to cathode concept
 2005
Commercial contracts to customer smelters
 2006
Construction license granted
 2007
Project approval by the Board
 2008
Start of construction
 2012
Start up of Phase I
 2014
Expected start up of Phase II
7
Salobo project summary
 Project is divided into two phases: Salobo I and Salobo Expansion
 Life of mine: + 50 years
 Drilling : 150 thousand meters
 Ore types: magnetite-chalcopyrite-bornite and magnetite bornite-chalcocite.
 Total production capacity of 200 kt of copper in concentrate (Salobo I + II).
 Total capex: US$ 4.2 billion concentrate (Salobo I + II).
Reserves *
Mineral Reserves
Mt
Cu (%)
Au (ppm)
1 136.4
0.71
0.4
* 20F 2013
8
Salobo process flowsheet
Primary screening and
Secondary crushing plant
Primary
crushing
HPGR and secondary
screening plant
Primary
screens
Gyratory
crusher
Grinding mills
Cyclone cluster
HPGR
Secondary
crusher
Secondary
screening
Ball mills
Primary Crushing
stockpile
Secondary Crushing
stockpile
Thickening
Rougher 2
Concentrate
tickener
Cleaner 1, 2 and 3
Concentrate
Storage tank
Rougher 1
Flotation and regrinding
Scavenger
Cleaner
Filter
press
Tallings
Cyclones
Concentrate stockpile
Vertmills
Tallings dam
Product
9
Salobo I + II master plan
TAILINGS DAM
PROCESS WATER
PUMP STATION
PRIMARY
CRUSHING
SECONDARY
CRUSHING
OVERLAND PIPE CONVEYOR
CONCENTRATION PLANT
FILTER PLANT
MAINTENANCE AND
ADMINISTRATION FACILITIES
MAIN SUB-STATION
N
OPEN PIT
10
Salobo mine
Fleet - Salobo 24 Mtpy
#
Drill rig - 12 1/4 in
16
Drill rig - 9 7/8 in
5
Shovel - 70 jd3
5
Hydraulic shovel - 33 jd3
3
Front end loader - 40 jd3
2
Truck - 240 t
29
Truck - 360 t
18
Grader
8
Dozer
16
Wheel dozer
10
Water truck - 90 m3
3
11
Salobo primary crushing
Salobo I
Salobo II
1 Gyratory crusher – 60” x 89”
1 Gyratory crusher – 60” x 89”
12
Salobo secondary crushing
Salobo I
Salobo II
2 (* ) Cone crusher
1 Cone crusher
2 (*) Vibrating screen 12 x 24 ft
1 Vibrating screen 12 x 24 ft
(*) 1 cone crusher and 1 vibrating screen are common for both Salobo I and II
13
Salobo long distance conveyor belt
Salobo I and II
1 Overland pipe conveyor ( 78.7’’)
6,000 hp
1,700 m length
4,600 t/h capacity
14
Salobo HPGR
Salobo I
2 High pressure grinding rolls – Ø 2.0 x 1.5 m
Salobo II
2 High pressure grinding rolls – Ø 2.0 x 1.5 m
15
Salobo ball mill
Salobo I
Salobo II
2 Ball mills – Ø 26 ft x 40 ft
2 Ball mills – Ø 26 ft x 40 ft
16
Salobo flotation / filtering
Salobo I
Salobo II
24 Flotation tank cells – 200 m3
24 Flotation tank cells – 200 m3
14 Flotation columns – 14 m
14 Flotation columns – 14 m
4 Vertimills – 1500 hp
4 Vertimills – 1500 hp
1 Concentrate thickener – Ø 15 m
1 Concentrate thickener – Ø 15 m
2 Pressure filters 1500 x 1500 / 50 chambers
2 Pressure filters 1500 x 1500 / 50 chambers
17
Salobo tailings dam
Initial height: 35 m
Final height : 100 m
18
Salobo 36 Mtpa
Salobo 2nd Expansion – An option for growing
Salobo 2nd Expansion would consist of the construction of a new concentration plant in Salobo,
with 12 Mtpa capacity, using the existing tailings dam, access road, pre-stripping, workshops,
transmission line, all the mine infrastructure and administrative facilities.
This expansion is possible given the large amount of reserves at Salobo.
The processing plant would have the same design than the existing now at Salobo I.
The timing of this expansion will depend on the copper market evolution and the business cash
flow generation.
19
Salobo 36 Mtpa
Third concentration plant location
CONCENTRATION PLANT
SALOBO +12Mtpa
TAILINGS DAM
PRIMARY AND
SECONDARY
CRUSHING
SALOBO +12Mtpa
PRIMARY AND SECONDARY
CRUSHING
SALOBO I & II
CONCENTRATION PLANT
SALOBO I & II
MAINTENANCE AND
ADMINISTRATION FACILITIES
20
Salobo ramp up
 Nameplate capacity is 12 million tonnes ROM per year per phase.
 Phase I ore processing started up in April 2012.
 In December 2013 plant feed reached 90 % of nameplate capacity.
Salobo I
December 2013
Nameplate
Plant feed
898 kt
1 000 kt
Copper in conc
8 148 t
8 333 t
15 695 oz
10 706 oz
Copper recovery
86.2%
87.6%
Gold recovery
69.8%
60%
Gold in conc
 First concentrate shipment was in September, 29th, 2012
 15 shipments since September 2012 up to December 2013
 213 kt of concentrate (73.6 kt of copper) already dispatched overseas
 Phase II will double production and is forecasted to start up in 2014
21
Salobo ramp up
SALOBO TOTAL MATERIAL MINED
7,0
6,4
6,0
5,8 5,8
5,6
5,3 5,2
million tonne (wet basis)
5,0
4,6
4,4
4,0
4,0
3,6
3,8
5,6
5,3
4,6
4,5 4,5
4,1
4,2
3,8
3,2
3,0
3,0
2,3
2,0
2,2
2,0
1,0
0,0
Jan/12Feb/12Mar/12Apr/12May/12Jun/12 Jul/12Aug/12Sep/12Oct/12Nov/12Dec/12Jan/13Feb/13Mar/13Apr/13May/13Jun/13 Jul/13Aug/13Sep/13Oct/13Nov/13Dec/13
22
Salobo ramp up
SALOBO PLANT THROUGHPUT
1.200
(ore to plant)
1.000
kt (wet basis)
898
771
800
723
714
632
643
570
566
600
675
514
463
409
400
359
345
253
267
294
203
200
151
0
Jun/12
Jul/12 Aug/12 Sep/12 Oct/12 Nov/12 Dec/12 Jan/13 Feb/13 Mar/13 Apr/13 May/13 Jun/13
Jul/13 Aug/13 Sep/13 Oct/13 Nov/13 Dec/13
23
Salobo ramp up
SALOBO - COPPER IN CONCENTRATE
9.000
8.148
8.000
7.164
7.000
6.440
6.255
5.861
6.000
5.816
tonnes
5.319
5.000
4.495 4.471 4.603
4.000
3.569
3.000
2.688 2.585 2.632
2.983
2.154
2.000
1.608
980
1.000
0
499
11
May/12 Jun/12 Jul/12 Aug/12 Sep/12 Oct/12 Nov/12 Dec/12 Jan/13 Feb/13 Mar/13 Apr/13 May/13 Jun/13 Jul/13 Aug/13 Sep/13 Oct/13 Nov/13 Dec/13
24
Salobo ramp up
SALOBO - GOLD IN CONCENTRATE
18.000
15.695
16.000
14.000
13.417
11.641
12.000
11.227
oz
10.597
10.000
11.155
9.377
8.014
8.000
7.745
7.027
5.767
6.000
4.804 4.603
4.000
4.929
4.045
3.177
2.284
1.515
2.000
735
0
Jun/12
Jul/12 Aug/12 Sep/12 Oct/12 Nov/12 Dec/12 Jan/13 Feb/13 Mar/13 Apr/13 May/13 Jun/13
Jul/13 Aug/13 Sep/13 Oct/13 Nov/13 Dec/13
25
Salobo ramp up
SALOBO COPPER RECOVERY
100
87,6
79
80
79
82
84
80
83
85
85
86
75
70
65
66
73
69
66
62
60
%
52
46
40
20
0
Jun/12
Jul/12 Aug/12 Sep/12 Oct/12 Nov/12 Dec/12 Jan/13 Feb/13 Mar/13 Apr/13 May/13 Jun/13
Jul/13 Aug/13 Sep/13 Oct/13 Nov/13 Dec/13
26
Salobo ramp up
SALOBO GOLD RECOVERY
80
68
65
60,0
61
60
60
65
62
68
68
69
70
64
55
50
51
50
51
%
47
41
40
35
20
0
Jun/12
Jul/12 Aug/12 Sep/12 Oct/12 Nov/12 Dec/12 Jan/13 Feb/13 Mar/13 Apr/13 May/13 Jun/13
Jul/13 Aug/13 Sep/13 Oct/13 Nov/13 Dec/13
27
Copper and Gold Five Year Production
250.000
500.000
212.582
200.000
400.000
327.660
150.000
100.000
318.574
283.810
302.787
125.000
178.604
300.000
200.000
50.000
Gold (oz)
Copper in concentrate (t)
204.007
223.730
223.391
100.000
-
2014
2015
Copper (t)
2016
2017
2018
Gold (oz)
28
Salobo cash cost (C1)
Salobo cash cost positions the operation in the first quartile of the industry cost curve .
C1 Copper industry cost curve
300
US¢ / lb Paid Cu
250
200
150
Salobo 24Mtpa
(US¢ 95/lb)
100
50
0
25
50
75
100
Cumulative Production (%)
Salobo C1: 5 years average (2015 / 2019).
Cost curve: projected C1 in 2017
29
Alemão Project
• An additional growth option for the future could be Alemão Project, that consists of a 5.45 Mtpa
ROM underground mine and beneficiation plant.
Reserves
105 Mt @ 1.51 % Cu and 1.05 g/t Au
Life of mine
21 years
Copper annual production
64 ktpa Cu
Gold in concentrate (average)
19 g/t
Gold annual production
119.000 oz Au
• The Alemão ore body is located beneath the Igarape Bahia gold mine final pit and because of that
has high gold content (1.05 g / t compared to 0.4 g / t at Salobo).
30
31