Chinalco Peru builds world-class super-large copper mine

Chalco Peru Mining 2022 was awarded the "Best Practice for Achieving the Sustainable Development Goals 2021" by the UN Global Compact China Network. What is the secret behind this award for a Chinese-owned enterprise developing overseas?

"With the solid steps of 'going out', integration and sustainability, we have taken a common development path of going in the direction of each other, meeting and knowing each other, and established a good corporate image for Chinalco Group and even Chinese enterprises in South America." The relevant person in charge of Chalco's Peruvian mining industry spoke the true meaning. Tromoc copper mine of Chalco Peru Mining is an important project of Chalco Group to implement overseas construction. As an important support for the overseas development and resource development of Chinalco Group, Chinalco Peru Mining has created a miracle of high-altitude mine construction project. In only 2 years, they built a world-class mega copper mine in the Andes Mountains at an altitude of over 4,500 meters.

1、"Go out" and integrate into the "Belt and Road" to open a new situation

Faced with the current situation that China's domestic supply capacity of bulk metals is insufficient and external dependence is high, in 2007, CHALCO Group made a decisive move in the international capital market and acquired 100% of Peru's Tromac 10-million-ton mega copper mine project, which opened the prelude of overseas development and world integration. Chalco Group attaches great importance to the construction of the Peruvian project and gives great support to the project in terms of acquisition, development plan, human, financial and material resources and technical services, and puts forward the goal of "controlling investment, optimizing the whole process and putting into operation as early as possible". From the start of construction in July 2011 to the completion of the main project and the trial production in December 2013, ...... Peru mining project team firmly believes in being the pioneer in overseas resource development, facing up to difficulties, persevering, constantly familiar with the laws and patterns of international mining development, and exploring the best way of overseas project construction through groping and rolling. The best path for overseas project construction. We need to be open and cooperative, but also self-reliant. The main construction part of the project adopts the EPCM approach, employing internationally renowned contractors for design, procurement and construction management, and bidding for project equipment and construction teams globally. However, in the key technical aspects, the management and project team of CHALCO Group still tightly grasp the initiative of project development, continuously optimize the technical solutions and reduce the investment cost. Success is not to be missed. With superhuman vigor and perseverance, the Peru mining project team built the world's highest altitude mining site and processing plant at that time in the shortest time, refreshing a number of records in the construction of high-altitude copper mines in the world ...... In 2014, the project was awarded the best case of APEC sustainable development; in June 2015, the project was successfully transferred to commercial operation. In 2017, Peru Mining achieved the goal of full profitability; in 2018, the production of copper in concentrate exceeded the 200,000-ton mark and made a substantial breakthrough in the control of impurities in concentrate, and was awarded as a strategic meritorious enterprise for overseas resource development of China's non-ferrous metal industry; since 2019, Peru Mining's production and operation has been climbing year after year, gradually growing into a profitable major player of Chinalco Group; in June 2015, the project was successfully transferred to commercial operation. In 2022, it was awarded the "Peruvian Mining Excellence Award" at the 35th International Mining Exhibition in Arequipa, taking new steps for steady development and sustainable growth.

2、Integrate and build a community of human destiny

The Andes Mountains in Peru are rich in mining resources. Peruvian mining industry, located in the Andes, upholds the concept of "responsible mining development" and takes "treating the resources well, treating the country where the resources are located, and treating the residents of the mining area well" as its tenet, and deeply understands the local ecological environment and establishes good relations with Peruvian governments at all levels, local communities and relevant institutions. We have established good relationships with Peruvian governments, local communities and related institutions. During the construction of the Tromac copper mine, Peru Mining held monthly round-table meetings with the community to listen to their demands, provide employment, medical care, education and training services, actively participate in community welfare, support community development in all aspects, and ensure the harmony and stability of the surrounding communities. In order to do a good job in environmental protection, Peru Mining has set up a special environmental management department. The department is responsible for monitoring and evaluating air quality, soil erosion, sewage discharge, waste gas and waste, noise and vibration, dust particles, slopes and tailing dams, etc.; strictly complying with the local government's environmental assessment requirements, obtaining various environmental permits in a timely manner and keeping them valid. At the same time, the company fulfills its commitment to protect the plants and animals in the mine and its surrounding area of about 16 kilometers by setting up an ecological reserve of about 800 hectares in the area directly affected by the Tromok mine and installing hidden cameras in the area for continuous monitoring to continuously improve the regional ecological environment and promote the development of biodiversity. Through years of continuous efforts, they have monitored and registered a variety of Peruvian national and international protected animals in the area, including the Andean tiger cat and the white-bellied quaking-tailed ground finch. Only by putting down roots and truly integrating themselves and their businesses into the local area can they keep their businesses firmly rooted overseas. Taking into account the language and customs, Peru Mining has established a highly efficient and professional management team with a blend of Chinese and Peruvian, taking full advantage of local human resources. At present, Peru Mining has a total of more than 1,500 employees, of which only 20 are Chinese. Through an international authorized management system and a corporate culture adapted to local employees, the company has combined international management with domestic headquarters control, giving full play to the capabilities and roles of the domestic headquarters and site management team. "We are all Chalco people" "1+1>2" "We all work together" ...... Peruvian mining industry is known for With the easy-to-understand and catchy slogan of cultural integration, the company has gradually drawn the distance between Chinese and Peruvian employees and actively advocated the core values of "respect, integrity, cooperation, responsibility, innovation and good neighborliness". "We are a family" should not only be shouted loudly, but also done practically. Peru Mining always puts the life and health of its employees in the first place. During the severe epidemic in Peru in 2020, Peru Mining donated nearly 600,000 soles to the local government and affected areas, and donated oxygen stations, masks and other epidemic prevention materials and food and other living materials, which interpreted the role and responsibility of central enterprises with practical actions.

3、Sustainable Draw new momentum for high-quality development

Time is the most faithful witness. Peru Mining has been in operation for nearly 10 years, and now the production process is stable, the mine operation is efficient and the sustainable development is sound. "Through management improvement and technological innovation, we should continue to optimize mining methods and process technology transformation, vigorously save resource consumption, and strive to build the company into a first-class enterprise that creates value and handles the world's complex mining technology." Chinalco Group has always required Peru Mining to adhere to a sustainable resource development and utilization approach and a high-quality development model to stimulate and continue the vitality of the Tromac copper mine. Grasping scientific and technological innovation and continuously optimizing technical transformation, Peru Mining focuses closely on tackling the world's complex ore processing technology and strives to stimulate the value creativity of the mine. In response to the unfavorable factors of poor resource endowment, complex ore nature and high impurity content, as well as technical difficulties such as low concentrate grade and unstable recovery rate, the company has taken the initiative to join hands with domestic and foreign universities and scientific research institutions to continuously carry out scientific research and technical research on process mineralogy and concentrate quality improvement, and carry out a series of technical transformation and scientific research work such as digital twin industrial testing to enhance efficiency, which has achieved obvious Since 2018, the copper grade of copper concentrate of Peru Mining has been steadily controlled above 20%, and the recovery rate of copper concentrate has been steadily controlled above 80%, which has exceeded the stable production in successive years and exceeded the assessment index of the headquarters. Strengthening lean management and making every effort to benchmark cost reduction and efficiency increase, Peru Mining is moving towards the road of high-quality development in a more scientific and robust mode. since 2020, the company has strengthened its operation management, combining full-factor benchmarking with a three-year cost reduction plan to reduce costs by US$24 million and US$12.86 million in 2021 and 2022, respectively, and striving to improve the company's cost competitiveness in benchmarking with first-class and catching up with standards. In the process of benchmarking with the first-class and catching up with the standards, we will strive to enhance the cost competitiveness of the company. Peruvian mining industry has been doing a good job in resource succession, steadily pushing forward the landing of projects, starting from two lines of "inventory" and "finding increment" to continue the lifeline of development. Peru Mining insists on centering on Tromoc, gives full play to its work base and location advantages in South America, and steadily promotes the construction of continuous investment projects. At the same time, the company has implemented resource acquisition planning, actively promoted T2/T3 exploration projects, won exploration projects, established a database of copper projects in South America, and studied the feasibility of overseas smelting industry, laying a solid foundation for expanding copper resources and increasing production capacity.

Note: This article is from China Mining News