Our vision: to be an international mining company based in Chile, focused on copper and related byproducts, recognised for operating efficiency, for value creation and as a preferred partner in the global mining industry.

Our strategy for growing our mining business is based around three pillars:

  1. 1THE EXISTING CORE BUSINESS
    • The first pillar of the strategy is to optimise and enhance the existing core business: Los Pelambres, Centinela, Antucoya and Zaldívar.
  2. 2ORGANIC AND SUSTAINABLE GROWTH OF THE CORE BUSINESS
    • The second pillar of the strategy is to achieve sustainable, organic growth by further developing the areas around the Group’s existing asset base in Chile.
  3. 3GROWTH BEYOND THE CORE BUSINESS
    • The third pillar of the strategy is to seek growth beyond the Group’s existing operations, in Chile or internationally, through the acquisition of high-quality operating assets and/or high-potential early-stage developments.

 

The first pillar of the strategy is to optimise and enhance the existing core business: Los Pelambres, Centinela, Antucoya and Zaldívar.

CURRENT STRATEGIC FOCUS:

  • Further embed the Safety Model across all operations to continue to achieve zero fatalities each year.
  • Continue the Cost and Competitiveness Programme (CCP) to sustain the Group’s competitive position.
  • Seek long-term productivity improvements through the development and application of innovative solutions.
  • Embed the New Operating Model to realise its full potential and benefits.
  • Promote a culture which focuses on diversity and inclusion.
  • Continue to cultivate a proactive and inclusive approach to local communities and other stakeholders in order to strengthen sustainable
    development.

2017 in Review

  • As a result of the consolidation of the Safety Model, the Group had zero fatalities.
  • Copper production of 704,300 tonnes, representing a 0.7% decrease compared to 2016.
  • Group net cash costs of 1.25/lb, lower than the initial guidance for the year.
  • CCP achieved $166 million of mine cost savings, in line with target.
  • Corporate values reinforced and new Diversity and Inclusion Policy approved by Board.
  • Labour agreements reached at Centinela and Zaldívar.

Objectives for 2018

  • Maintain zero fatalities by continuing to embed the Safety Model.
  • Special focus on health standards.
  • Copper production of 705-740,000 tonnes.
  • Group cash costs before by-product credits of $1.65/lb, higher than 2017 due mainly to lower grades at Centinela.
  • Sustain cost discipline achieved through the CCP, with special focus on energy efficiency and process productivity delivered by the New Operating Model initiatives.
  • Ensure New Operating Model delivers the expected benefits to operations and releases spare capacity.
  • Implement the Diversity and Inclusion Policy.
  • Maintain healthy relationships with communities and local stakeholders.

The second pillar of the strategy is to achieve sustainable, organic growth by further developing the areas around the Group’s existing asset base in Chile.

CURRENT STRATEGIC FOCUS:

  • Obtain permits to begin construction of Los Pelambres Incremental Expansion Phase I.
  • Select preferred Centinela expansion alternative.

2017 in Review

  • Encuentro Oxides completed and ramping up to full production.
  • Molybdenum plant commissioned.
  • Environmental Impact Assessment (EIA) of Los Pelambres Incremental Expansion Phase I awaiting final approval by the environmental authorities.
  • Detailed engineering of the project commenced.
  • Reviewed options to reduce capital cost of Centinela Second Concentrator project and maximise synergies with existing operation.
  • Completed scoping study on the expansion of the existing concentrator at Centinela as an alternative to the Second Concentrator.
  • Completed Los Pelambres Incremental Expansion Phase II environmental baseline study and advanced feasibility study.

Objectives for 2018

  • Encuentro Oxides to reach design capacity in the first half of the year.
  • Molybdenum plant to start production in the first half of the year.
  • Los Pelambres EIA approval (achieved February 2018).
  • Update capital estimate, complete additional geotechnical studies and obtain Board approval to proceed with Incremental Expansion.
  • Decision on whether to expand existing Centinela concentrator or build Second Concentrator.
  • Advance innovation programme to assess value-capturing technologies.

The third pillar of the strategy is to seek growth beyond the Group’s existing operations, in Chile or internationally, through the acquisition of high-quality operating assets and/or high-potential early-stage developments.

CURRENT STRATEGIC FOCUS:

  • Advance the Twin Metals project.
  • Develop the long-term growth pipeline beyond the Group’s existing operations.
  • Continue the exploration programme focused on the Americas in order to identify long-term growth options.
  • Monitor the current market to assess potential accretive acquisitions or joint ventures.

2017 in Review

  • Focused exploration programme, mainly on targets in Americas.
  • Commenced preparation of Twin Metals’ Mine Plan of Operations.
  • Twin Metals’ right to renew two federal mineral leases was reaffirmed by the US Department of the Interior.

Objectives for 2018

  • Continue monitoring the market for potential acquisition opportunities.
  • Advance exploration programmes in Americas.
  • Complete revised Twin Metals project pre-feasibility study.