Name and Location
Escondida organic growth one project (OGP1) and oxide-leach area project (OLAP), Chile.
Client
Rio Tinto (30%), BHP Billiton (57.5%), Jeco Corporation (10%) and Jeco 2 (2.5%).
Project Description
The Escondida mine is located 170 km south-east of Antofagasta, in Chile. The OGP1 and the OLAP will support higher production at the mine in the next decade.
The OGP1 will replace the Los Colorados concentrator with a new 152 000 t/d plant and allow access to higher-grade ore, located underneath the existing facilities.
The OLAP will create a new dynamic leaching pad and minerals handling system that will include several overland conveyors. The new pad will maintain oxide-leaching capacity at current levels, following the exhaustion of the existing heap-leach in 2014.
The mine has a total measured, indicated and inferred resource base of 415.5-million tons, with an average grading of 0.69% copper and a proven and probable reserve base of 126.5-million tons, with an average grading of 0.78% copper.
Value
The OGP1 will cost $3.8-billion, with Rio Tinto’s share being $1.2-billion and BHP Billiton’s $2.207-billion.
The OLAP is expected to cost $721-million, with Rio Tinto’s share being $216-million and BHP Billiton’s $414-million.
Duration
Construction of the OGP1 began in February 2012, with commissioning expected in the first half of 2015.
Commissioning of the OLAP is expected in 2014.
Latest Developments
The OGP1 project is 41% complete and the OLAP project 61% complete.
Key Contracts and Suppliers
None stated.
On Budget and on Time?
Both projects are on budget and on schedule.
Contact Details for Project Information
BHP Billiton, investor relations, James Agar, tel +61 3 9609 2222 or email James.Agar@bhpbilliton.com.