Copper Technology Roadmap

7/29/2019 Copper Technology Roadmap

1/50

Copper Technology Roadmap

March 2004

Coordinated by AMIRA International Limited


2/50


3/50

i


FFFFFACILITACILITACILITACILITACILITAAAAATEDTEDTEDTEDTEDANDANDANDANDAND PPPPPREPREPREPREPREPAREDAREDAREDAREDAREDBBBBBYYYYY

Energetics, Incorporated

CCCCCOORDINAOORDINAOORDINAOORDINAOORDINATEDTEDTEDTEDTEDBBBBBYYYYY

AMIRA International

SSSSSPONSORSPONSORSPONSORSPONSORSPONSORS

Anglo American Chile Ltda

Antofagasta Minerals

BHP Billiton Limited

Corporacin Nacional Del Cobre, ChilePhelps Dodge Mining Company

Rio Tinto Limited

WMC Resources Ltd

AAAAASSOCIASSOCIASSOCIASSOCIASSOCIATETETETETE SSSSSPONSORSPONSORSPONSORSPONSORSPONSORS

MIM Holdings Limited

Teck Cominco Limited

Copper Technology Roadmap March 2004

Copyright AMIRA International


4/50

ii



5/50

iii


TTTTTABLEABLEABLEABLEABLEOFOFOFOFOF CCCCCONTENTSONTENTSONTENTSONTENTSONTENTS

Preface .............................................................................................................................................................. v

Executive Summary ........................................................................................................................................ vii

Chapter 1. Introduction and Goals ................................................................................................................ 1

Chapter 2. Trends, Drivers, and Challenges ................................................................................................. 3

Chapter 3. R&D Needs and Priorities............................................................................................................ 7

Chapter 4. Implementation: Moving Forward .............................................................................................25

For More Information .................................................................................................................................... 27

Appendix A: Roadmap Contributors .............................................................................................................29

Appendix B: Bibliography ............................................................................................................................. 31

Appendix C: Anti-Trust Statement ................................................................................................................33


6/50

iv



7/50

v


PPPPPREFREFREFREFREFAAAAACECECECECE

In 2003, the global copper industry took animportant step on its path towards the future.Led by AMIRA International, nine global coppercompanies recognised the time was right towork together to address some of the mostimportant technical, economic, and socialchallenges of the coming decade and beyond.

The objective: identify and prioritise long-term,technology-related research needs for thecopper industry within the context of social,economic, and market imperatives. The result:the Copper Technology Roadmap, a culminationof a nine-month effort led by AMIRAInternational, facilitated by Energetics, Inc., andsponsored by nine copper companies, sevenmajor sponsors and two associate sponsors:

SponsorSponsorSponsorSponsorSponsorsssss

Anglo American Chile Ltda

Antofagasta Minerals

BHP Billiton Limited

Corporacin Nacional Del Cobre, Chile

Phelps Dodge Mining Company

Rio Tinto Limited

WMC Resources Ltd

AssociatAssociatAssociatAssociatAssociate Sponsore Sponsore Sponsore Sponsore Sponsorsssss

MIM Holdings Limited

Teck Cominco Limited

To plan and guide the roadmapping effort, theCopper Roadmap Steering Committee wasformed in June 2003. The Steering Committeedefined the scope of the roadmap andidentified goals, metrics, and important topicsfor technology development in preparation for a

roadmapping workshop held on 15-16 October2003 in Phoenix, Arizona, USA.

Approximately 40 technical experts from copper

companies, their suppliers and end users,

universities, and other relevant organisations

gathered at this roadmapping workshop. There,

they discussed common technological needs

and came to consensus on priorities, forming the

basis for this roadmap.

The roadmap defines pathways for pursuing

technological change in the mining and

processing portion of the global copper industry.

It focuses on pre-competitive priorities on which

companies can collaborate for mutual gain. The

time frame under consideration is through to

2020, covering a range of activities and priorities

over the near, mid, and long terms. The

roadmap includes technological priorities along

the value chain, from mine planning through

extraction, processing, and recovery to final

commodity products (e.g., electro-won and

electro-refined cathodes). The ultimate goal is to

improve the overall competitiveness and

sustainability of the industry.

The Copper Technology Roadmap complements

other roadmapping efforts within the mining

industry. The International Copper Association

(ICA) is conducting an ongoing roadmapping

effort focused on technology requirements from

an end-user perspective. ICAs roadmapping

efforts focus predominantly on finishedproducts, while the scope of the Copper

Technology Roadmap is limited to miningthrough to electro-won and electro-refined

cathodes. Together, these two roadmaps cover

the entire value chain of copper, from ore in the

ground to finished copper goods being used by

consumers. The U.S. Department of Energy

(DOE) has also published three mining

technology roadmaps outlining R&D needs in the

broader mining industry (not specific to copper),

and an education roadmap aimed at attracting

people to mining and educating miningprofessionals. AMIRA completed a similar

exercise based on alumina technology with the

worlds major alumina producers in 2001.


8/50

vi


OOOOOTHERTHERTHERTHERTHER RRRRRELEVELEVELEVELEVELEVANTANTANTANTANT TTTTTECHNOLECHNOLECHNOLECHNOLECHNOLOGOGOGOGOGYYYYY RRRRROADMAPSOADMAPSOADMAPSOADMAPSOADMAPS

Several technology roadmaps prepared byother organisations are relevant to the

copper industry. (See Appendix B forbibliographic information.)

The International Copper Association isconducting technology roadmappingactivities for copper applications.

The U.S. Department of Energy has preparedseveral roadmaps for the general mining

industry (not specific to copper):

The Future Begins with Mining: A Vision of

the Mining Industry of the Future (1998)

Mining Industry Roadmap for CrosscuttingTechnologies (1999)

Mineral Processing Technology Roadmap

(2000)

Exploration and Mining Technologies

Roadmap (2002)

Education Roadmap for Mining

Professionals (2002)

CCCCCOPPEROPPEROPPEROPPEROPPER TTTTTECHNOLECHNOLECHNOLECHNOLECHNOLOGOGOGOGOGYYYYY RRRRROADMAPOADMAPOADMAPOADMAPOADMAP SSSSSTRUCTURETRUCTURETRUCTURETRUCTURETRUCTURE

The follows a

logical structure designed to ensure the

strategic R&D priorities and pathways are

aligned with the industry's goals.


Copper Industry

Goals

The Steering Committee

developed five goals for

the copper industry over

the next 10-15 years.

Implementation

Activities the industry willconduct to implement thepriorities of the roadmap.

R&DPriorities

Urgent needs are

deemed priorities,representing prime

opportunities for

collaboration.

R&D

Needs

Research anddevelopment needed torespond to the trends andchallenges and achieve

the goals, organised intothree focus areas.

Trends, Drivers

and

Challenges

Economic, social, and

political forces shaping

the copper industry in the

future and the challenges

and opportunities they

create.


9/50

vii


EEEEEXECUTIVEXECUTIVEXECUTIVEXECUTIVEXECUTIVE SSSSSUMMARUMMARUMMARUMMARUMMARYYYYY

Copper is a fundamental building block ofmodern economies. In 2003, annual productionof copper metal was 15.3 million tonnes andwas projected to grow at a rate of 2.7% per year.Despite this slow but steady growth in worldconsumption, supply of copper has generallyoutpaced demand, and has led to lower prices

in recent years.

Copper producers are constantly being pushedto contain costs, increase efficiency, andmaximise return on capital employed (ROCE). Inaddition to economic considerations, copperproducers often face higher levels of social andenvironmental pressures on their operations.These factors represent significant challenges

to the industry and create a climate supportiveof technological innovation.

This roadmap considers a changing supply/demand balance, shifting production andconsumption demographics, and increasedsocial and environmental expectations, whilealso permitting producers to earn acceptablereturns for their shareholders.

In planning for the roadmap, a Copper RoadmapSteering Committee was formed in 2003. ThisCommittee developed a set of industry-widegoals to guide subsequent roadmapping

activities. These goals represent ambitionscommon to all copper companies and provideguidance when considering collaborative R&Dpathways.

In the course of developing this roadmap forfuture collaborative technology development,the industry considered how its future willchange in response to trends and drivers overthe next 10-15 years, and the challenges thesefactors may create. While it is nearly impossible

to accurately predict the future, we gain insightinto the needed development pathways andpriorities by considering the driving market,social, and political forces influencing the global

Copper IndustrCopper IndustrCopper IndustrCopper IndustrCopper Industry Goalsy Goalsy Goalsy Goalsy Goals

Lower the cost of production.

Achieve the balance of acceptable

economic, environment and social effects.

Manage technological risk and investment.

Improve safety, health and industry hygiene.

Achieve a 10% improvement in energy

efficiency through the implementation of

improved technology.

copper business. Chapter 2 presents aconsideration of these trends and drivers.

The Copper Roadmap Steering Committeeidentified three overarching focus areas thatform the industrys strategy for responding tothe trends, addressing the challenges, andseizing the opportunities of the coming decadethrough the development of innovativetechnology. Together, they hold promise toenable copper producers to achieve their goalspresented in Chapter 1. The three focus areasare:

ImImImImImprprprprprooooovvvvved Capital Efed Capital Efed Capital Efed Capital Efed Capital Efffffficiency and Asseiciency and Asseiciency and Asseiciency and Asseiciency and Assettttt

UtilisationUtilisationUtilisationUtilisationUtilisation Copper production requires large

amounts of capital assets, including mining

and extraction equipment, massive trucks,

crushing and grinding mills, flotation tanks,

and electrolytic cells. Companies seek to

minimise capital cost per ton produced

without increasing other production inputs

such as labour, energy, and material.

NeNeNeNeNew Mining and Prw Mining and Prw Mining and Prw Mining and Prw Mining and Processing Tocessing Tocessing Tocessing Tocessing Technologiesechnologiesechnologiesechnologiesechnologies

Advances in mining and processing

technologies hold promise to reduce costs and

processing times, increase productivity and

yields, and expand the range of ore types

copper producers can mine profitably. Sustainable DeSustainable DeSustainable DeSustainable DeSustainable Devvvvvelopmentelopmentelopmentelopmentelopment Faced with the

environmental legacy issues associated with

historic mining practices, the copper industry


10/50

viii


faces growing pressure to demonstrate that

current and new mining ventures will provide

long term social benefits and protect the

environment. New processes and technologies

to reduce the footprint and more adequately

predict the environmental and social outcome

will assist the copper industry in the journey to

sustainability. Copper producers are

increasingly seeking ways to minimise the

environmental impact and improve the

sustainability of copper mining and processing

operations. A combination of more

sustainable operating practices and new

technologies will allow copper companies to

continue their commitment to sustainability.

The copper industry has identified the research,development, demonstration, testing, validation,

and other technological activities needed toachieve its goals in response to the trends,drivers, and challenges shaping its future.Collectively, they represent over 100 individualR&D needs, many of which feed into oneanother to form larger technology pathways thatwill help copper producers advance towards thegoals and respond to the trends shaping theindustry. Exhibit 1 provides an overview of theroadmap.

With finite R&D resources available to everycopper company, the industry must focuscollaborative activities on priorities. Accordingly,eleven priorities have been identified,representing some of the most urgent andpromising areas for collaborative technologydevelopment. These priorities are of particularinterest because they offer significant potential

rewards, but are typically too costly, long-term,risky, or otherwise daunting for individualcompanies to make adequate progress towards

independently. The Copper Roadmap SteeringCommittee has further refined the prioritisationof these items, identifying four of the elevenpriorities as top priorities and five as highpriorities. These priorities are shown in Exhibit 2.

As shown in Exhibit 2, the priorities span the

entire copper value chain considered in thisroadmap. Additionally, several of the prioritiescut across multiple or all process steps. Theseso-called systems issues may hold thegreatest potential for cost reductions, efficiency

improvements, or environmental impactsbecause they capture opportunities that areoften missed when companies focus onindividual processes.

Exhibits 4, 5, and 6 in Chapter 3 provide anoverview of the R&D needs identified in each ofthe three focus areas. Chapter 3 also presentsdetailed information regarding the elevenpriorities. This information provides thefoundation on which collaborative R&D projectscan be launched.

It is important to note that the roadmap doesnot cover all technological pathways to thefuture. The roadmap focuses on pre-competitiveneeds and can be useful in informing private

R&D efforts of individual companies,universities, and other researchers. However, itwill also assist individual companies in pursuingtheir own R&D agendas to bolster theircompetitive positions in the marketplace.

Other advances are also likely to come fromsmall companies, independent entrepreneurs,universities, and other researchers who may bemore able to assume greater risk. The roadmapcomplements these other efforts and provides apotential mechanism by which higher-risk R&Defforts regarding shared needs can be pursuedthrough collaboration.

A Copper Technology Working Group has beenestablished to oversee the development andexecution of collaborative research projects inaccordance with the roadmaps priorities.AMIRA International will maintain its role ascoordinator as directed by the industry. Severalmembers of the Working Group have alreadyagreed to work together to address one of thehigh priorities in the roadmap: real-time whole

process control. This swift agreement tocollaborate provides an early success of theroadmapping effort and will build confidenceamong copper companies that the technologycollaboration model can work.

Today, as much as ever, the copper industryfaces wide-ranging challenges andopportunities. Many of the needs identified inthe roadmap are not new, but the roadmaprepresents an exciting opportunity for thecopper industry to work together on the mostpressing issues it faces over the comingdecade. By combining the advances promisedby this roadmap with independent companydiscoveries and innovations from researchers,

the industry will be prepared to achieve its goalsand rise to the challenges of the coming decadeand beyond.


11/50

ix


Exhibit 1Exhibit 1Exhibit 1Exhibit 1Exhibit 1. Na. Na. Na. Na. Navigating the Rvigating the Rvigating the Rvigating the Rvigating the Roadmapoadmapoadmapoadmapoadmap

Focus Areas

R & D Needs and Priorities

Copper Industry Goals

Improved CapitalEfficiency and Asset

Utilisation

New Mining andProcessing

Technologies

Implementation by the Copper Technology Working Group

Lowering Cost of Production

Risk and Investment

Improving Energy Efficiency

Managing Technological

by 10% and Industry Hygiene

Improving Safety, Health

Achieving the Balance ofAcceptable Economic,

Environmental andSocial Effects

Critical Barriers

SustainableDevelopment

Critical BarriersCritical Barriers

Other R&D Needs Other R&D NeedsOther R&D Needs

Mine-to-Metal

Optimisation

Real-Time Whole

Process Control

KnowledgeSharing

Database

Intelligent

Comminution

Ore SystemIntelligence

In-Situ Mining

Dry-ProcessingTechnologies

More Efficient

Use of Water

IntegratedSustainability Model

Design for Closure

Byproduct

Management

(Waste to Product)


12/50

x


Exhibit 2. R&D Priorities Along the Copper VExhibit 2. R&D Priorities Along the Copper VExhibit 2. R&D Priorities Along the Copper VExhibit 2. R&D Priorities Along the Copper VExhibit 2. R&D Priorities Along the Copper Value Chainalue Chainalue Chainalue Chainalue Chain

R&DP

rioritiesAlong

the

CopperV

R&DP

rioritiesAlong

the

CopperV

R&DP

rioritiesAlong

the

CopperV

R&DP

rioritiesAlong

the

CopperV

R&DP

rioritiesAlong

the

CopperValue

Chain

alue

Chain

alue

Chain

alue

Chain

alue

Chain

Mine

P

lanning

Extraction

Comminution

Separation

Electr

o-

winnin

g

Finished

Products

ICAR

oadmapping

Activ

ities

Copper

Technology

Roadmap

High

Priority:

OreSystem

Intelligence

Top

Priority:

MoreEfficient

UseofWater

Wastes

Wastes

Wastes

Finished

Cathodes

Wastes

Priority:

Byproduct

Management

High

Priority:

In-Situ

Mining

SYSTEMSISSUES(ADDRESS

ESALLAREAS)

SYTMSSUAD

EAARA

To

p

Priority:

Mine-to-Metal

Op

timisation

High

Priority:

Real-Time

WholeProcess

Control

High

Priority:

Designfor

Closure

TopP

riority:

Integrated

Sustainability

Model

High

Priority:

Knowledge-

Sharing

Database

Priority:

DryProce

ssing

Technology

Top

Priority:

Intelligent

Comminution


13/50

1


1.1.1.1.1. IIIIINTRNTRNTRNTRNTRODUCTIONODUCTIONODUCTIONODUCTIONODUCTIONANDANDANDANDAND GGGGGOOOOOALSALSALSALSALS

IntrIntrIntrIntrIntroductionoductionoductionoductionoductionCopper is a fundamental building block ofmodern economies. In 2003, annualproduction of copper metal was 15.3 milliontonnes and was projected to grow at a rate of2.7% per year. North America and Europe have

experienced slower growth due to an emergingrecycling industry. However, consumption indeveloping economies is growing rapidly. InChina, for instance, projected annual growth iscurrently in excess of 8% per year and someestimates put growth at 10% per year for thenext few years. Notwithstanding the slow butsteady growth in world consumption, supply ofcopper has generally outpaced demand, andhas led to lower prices in recent years.

Declining commodity prices, in turn, putpressure on producers to contain costs andincrease efficiency. The capital-intensive natureof copper production encourages producers tofocus on maximising the return on capitalemployed (ROCE). In addition to economicconsiderations, copper producers often facehigher levels of social and environmentalpressures on their operations. Many copperproducers also face pressure to reduce theirenergy consumption for both economic andenvironmental reasons. These pressures maybecome key drivers of technological change inand of themselves. These factors represent

significant challenges to the industry and createa climate supportive of technological innovation.

This roadmap considers a changing supply/demand balance, shifting production andconsumption demographics, and increasedsocial and environmental expectations, whilealso permitting producers to earn acceptablereturns for their shareholders.

Goals fGoals fGoals fGoals fGoals for the Copper Indusor the Copper Indusor the Copper Indusor the Copper Indusor the Copper IndustrtrtrtrtryyyyyThe global copper industry is driven by the needto become more productive while minimisingenvironmental impact and maintaining thehighest safety standards. In an effort toarticulate the future direction of the industry,

the Copper Roadmap Steering Committeeestablished a set of high-level goals andsupporting factors and metrics (Exhibit 3).

This framework will guide technologydevelopment as the industry looks to the future,and align the R&D needs and priorities in thisroadmap. Each producer optimises itsprocesses and practices to suit its ore depositsand business conditions. Because ore bodies

and market conditions vary from one producer

to the next, it is difficult to establish broad,quantifiable goals for the industry as a whole.However, the five goals describe the industrysdesired direction for progress in qualitativeterms. Additionally, the Steering Committeeagreed on one quantitative goal: achieachieachieachieachieving aving aving aving aving a111110% im0% im0% im0% im0% imprprprprprooooovvvvvement in energy efement in energy efement in energy efement in energy efement in energy efffffficiency thriciency thriciency thriciency thriciency throughoughoughoughough

the imthe imthe imthe imthe implementation of implementation of implementation of implementation of implementation of imprprprprprooooovvvvved ted ted ted ted technologyechnologyechnologyechnologyechnology.This goal highlights the importance of energy tocopper mining and production, indicating ashared opportunity to lower costs and conserveenergy.


14/50

2


GOAL 3. MANAGING TECHNOLOGICAL RISK AND INVESTMENT

GOAL 2. ACHIEVING THE BALANCE OF ACCEPTABLE ECONOMIC, ENVIRONMENTAL AND SOCIAL EFFECTS

METRIC

METRIC

METRIC

METRIC

METRIC

FACTOR

FACTOR

FACTOR

FACTOR

FACTOR

Cu tonnes/manyear

Capital cost/tonne produced; total assets/tonne

Elimination of process steps; productivity increase

Capital cost/tonne produced; MJ/tonne

Life cycle costs; productivity increase

% recovery; develop new byproducts; US$/Cu tonnes

Emissions/tonne Cu produced

Ha/tonne produced

Acceptable in the communities in which we operate

Solid waste produced/tonne; residue converted tonew economic use

m /tonne, Ha/tonne, MJ/tonne3

N/A

Capital cost/tonne produced; operating cost/tonne

Capital cost/tonne produced

Long-term goal of zero harm

Higher labour productivity through automationand process control

MJ/tonne produced; MJ/tonne minedMore efficient energy utilisation

Improved capital productivity and asset utilisation

Innovative extraction processes

Metallurgical milling design parameters and orecharacterisation

Improved mining and process equipment

Byproduct and co-product extraction

Adoption of environmentally friendly processingtechnologies

Smaller environmental footprints

Socially responsible mineral resource exploitation

Residue treatment and reuse

Efficiency of water, land, and energy use

Life cycle analysis and implications

New mining technology

Financial requirements

Reducing number of employees exposed to risk

GOAL 4. IMPROVING SAFETY, HEALTH AND INDUSTRY HYGIENE

GOAL 5. IMPROVE ENERGY EFFICIENCY BY 10% THROUGH THE IMPLEMENTATION OF IMPROVED TECHNOLOGY

GOAL 1. LOWERING THE COST OF PRODUCTION

Exhibit 3. Copper IndustrExhibit 3. Copper IndustrExhibit 3. Copper IndustrExhibit 3. Copper IndustrExhibit 3. Copper Industry Goalsy Goalsy Goalsy Goalsy Goals


15/50

3


2.2.2.2.2. TTTTTRENDSRENDSRENDSRENDSRENDS, D, D, D, D, DRIVERSRIVERSRIVERSRIVERSRIVERS,,,,, ANDANDANDANDANDCCCCCHALLENGESHALLENGESHALLENGESHALLENGESHALLENGESAs the copper industry develops a roadmap forfuture collaborative technology development, itmust consider how that future will change inresponse to trends and drivers over the next 10-15 years, and the challenges these factors maycreate. While it is nearly impossible toaccurately predict the future, we gain insight

into the needed development pathways andpriorities by considering the driving market,social, and political forces influencing the globalcopper business.

Markets and Applications

Global market forces will have the strongesteffect on the copper industry over the nextdecade. Rapid growth in copper demand inChina, India, Pakistan, Southeast Asia, the

former Soviet Union, and other developingregions will drive global demand andsignificantly shape market dynamics. In thelong term, some of these markets may reachthe post-industrial state, slowing growth.

While these developing markets will fuelcommodity copper demand, growth of new,technologically advanced uses for copper couldincrease copper demand in developedeconomies. Some finished copper products willbe tailored using materials processing

techniques (to suit specific applications),increasing the value that copper products canoffer. For example, coppers antimicrobialproperty can be used to increase biosecurity inbuildings. Distributed and renewable electricitygeneration and underground transmission mayrequire new kinds of copper products. Politicaland social pressures to develop hybrid vehiclesmay spur copper demand if the copper industryis aggressive in positioning itself as a materialof choice among vehicle design engineers.

Land, Water, and Energy Use

Increasing regional pressures over water andland use will continue to create significantchallenges for copper producers. Competition forwater use among various sectors of the economyis particularly fierce in the arid and semi-arid

regions where copper naturally occurs. Thiscompetition will drive the industry to considerwater purification and recycling as well as theuse of saline water in its operations, all of whichpresent significant challenges. Land available formining and tailings will also continue to diminishdue to alternate competing land uses.

Meanwhile, the industry may observe shifts inenergy sources from coal to natural gas, andultimately from fossil fuels towards renewable

energy sources. Because copper production, andcomminution in particular, is energy-intensive,shifts in energy availability and prices havesignificant impact on copper companies bottomlines.

Environmental Issues

Social and regulatory pressures are likely to haveincreasing influence on copper production,driving efficiency and sustainability efforts. Thenumber of government and non-government

organisations scrutinising the environmentalimpact of copper mining will continue to growalong with social and political expectations forproduct stewardship, potentially increasing theindustrys liability.

As copper demand continues to grow over thenext decade, near-term increases in productionwill come largely from low-grade ore bodies inopen-pit mines. Increased production willlikewise carry increased amounts of tailings,

wastes, and open pits with post-closureunknowns. Further, social and regulatorypressures on open-pit operations are likely toincrease in the future.


16/50

4


The industry remains committed to thesustainability journey. Challenges abound in thisarea, many dealing with post-closure issues.The industrys difficulty in precisely predictingthe long-term water quality from mine rock andtailings presents a challenge for managingthese materials. Long-term restoration costs

and risks, finding productive uses for minedlands, and growing post-closure liabilities allmake post-closure management a daunting butnecessary task. Perhaps the biggest challengein this area is the limited availability of capital todevote to closure, reclamation, andsustainability projects. In the coming decade,the industry will proactively seek more effectiveways to make the clear business case forcommitting resources to sustainable

development.

Copper Resources

As conventional copper ore deposits areincreasingly mined and depleted, the averagecomposition of available copper resourcescontinues to shift. Much of the easy-to-minecopper has been extracted, pushing copperproducers to find ways to profitably extractlower-grade ores, deeper ores, and morecomplex ore deposits. These more challengingdeposits will likely require increased impurityremoval costs and energy consumption.Globally, copper producers may seek to exploreavailable copper resources in less politicallystable regions of the globe, creating newchallenges. Further, roughly 70% of the worldsremaining copper resources are in the form ofchalcopyrite rather than oxides, but extractionand processing of chalcopyrite has not yet beenoptimised for profitability.

To offset these rising costs, copper companies

will be pushed to customise technologies andprocesses for the specific ore resources beingmined, a concept that holds much promise buthas many challenges. Copper companies arealso likely to explore other opportunities, suchas distributed copper production (mine mouthconcept) and continuous copper mining toreplace current batch processes.

Human Resources

One trend the copper industry shares with manyother industries is a decreasing availability ofwell-trained technical staff in many parts of theworld. In developed regions in particular, the

industry is experiencing a net technicalknowledge outflow, fueled by high retirementrates combined with low entrance rates.Attracting talented young people to the miningindustry is often difficult for a variety ofreasons, including a poor public perception ofthe industry and the reluctance of labour to

travel to and from remote operations. Somedeveloping regions, contrarily, have lessdifficulty securing qualified human resources.Increasing safety requirements will also shapethe way human resources are used in coppermining. Copper companies will increasinglyseek to develop processes and methods thatrequire less labour, such as automation andremote operation techniques. Thesetechnologies promise to reduce labour

requirements by removing people from

operations, thereby reducing labour costs andimproving safety.

Policy Trends

In addition to environmental policy, otherpolitical trends have the potential to drivechange in the copper industry. The applicationof global standards (e.g., labour, environmental)that are not site-specific may create challenges.Changes in royalties and permitting policies mayalso drive change in copper production; theindustry may require less-invasive processes tomaintain its license to operate. Also, changingpolitical scenarios across the globe may openpreviously unavailable regions to the industry(e.g., sub-Saharan Africa).

Sustainable Development

The publics perception of mining will continueto play an important role in determining copperindustry activities and business practices. This

perception is a direct result of the industrysperformance, and will often be shaped by thelower-performing operations. The industry isfaced with decreasing public acceptance ofmining and increasing demands forenvironmental friendliness, trends that are

likely to intensify in the coming years. Also, thepublic is likely to increase its emphasis onaesthetics (e.g., mine footprint, noise). Theindustry must meet this challenge byproactively engaging local communities and thepublic at large to improve the understanding ofmining while continuing to pursue sustainabledevelopment.


17/50

5


One possible strategy for improving the waymining is viewed is to maximise and accentuatethe community benefits of mining. The mannerin which copper companies leave regions afteroperations cease will form a legacy by whichthey will be judged by communities and thegeneral public. By developing a sustainable

community that functions after miningoperations depart, the industry may find morewelcoming local communities, particularly inthird-world countries that would benefit fromthe influx of people and resources that coppermining brings to a region.

Industry Structure

The industry is likely to witness furtherconsolidation, both in terms of businesses and

in the form of shared technical and R&Dresources. Today, the industry is somewhat

fragmented and struggles to present itself tothe world in a unified manner. Opportunitiesabound for collaboration that does not hindercompetition among firms. As the industryhones its collaborative abilities, it can promotean image of a high-tech industry that haswidespread technology transfer opportunities.Increasing global knowledge exchange, viainteractions among miners, suppliers,universities, and copper companies, canaccentuate technology advancement andpropagate operational best practices.

Likewise, a copper recycling industry isbeginning to emerge in the United States andEurope, but it remains cyclical, fragmented, andmarginally profitable on the copper processingside.

Risk-versus-reward and uncertainty are keyfactors in decision-making for copper

companies. Individual companies areincreasingly reluctant to invest in newtechnologies, particularly new processes thatmay cost many millions of dollars, due to a highaversion to risk. This risk aversion is the resultof three possibilities: 1) the technology beingdeveloped may not work, i.e., the project istechnically unsuccessful; 2) implementing thetechnology may disrupt production; and 3)technology may quickly spill over to competitorswho did not assume the risk and cost of

developing it. The industry will seekopportunities to work together on pre-competitive areas of mutual concern to reducethis risk, benefiting the copper industry as awhole.

FFFFFocus Areas focus Areas focus Areas focus Areas focus Areas for Tor Tor Tor Tor TececececechnologyhnologyhnologyhnologyhnologyDeDeDeDeDevvvvvelopmentelopmentelopmentelopmentelopmentThe Copper Roadmap Steering Committeeidentified three overarching focus areas torespond to the trends, address the challenges,

and seize the opportunities of the comingdecade through the development of innovativetechnology. These focus areas ensure that the

technical, capital/financial, and sustainability

aspects of technology development are all

considered. Together, they hold promise to enable

copper producers to achieve their goals presented

in Chapter 1. The three focus areas are:

ImImImImImprprprprprooooovvvvved Capital Efed Capital Efed Capital Efed Capital Efed Capital Efffffficiency and Asseiciency and Asseiciency and Asseiciency and Asseiciency and Assettttt

UtilisationUtilisationUtilisationUtilisationUtilisation Copper production requires large

amounts of capital assets, including miningand extraction equipment, massive trucks,

crushing and grinding mills, flotation tanks,

and electrolytic cells. Over the past several

decades, many producers have increased

equipment size to take advantage of

economies of scale. While this has produced

significant cost savings, it has increased the

importance of using capital assets as

effectively as possible. Companies seek to

minimise capital cost per ton produced

without increasing other production inputs

such as labour, energy, and material. In the

near and mid term, copper producers will

maximise the use of existing capital assets

through operational changes that increase

equipment availability (up time) and ensure

equipment is used cost efficiently when in

operation. In the long term, producers can

explore innovative extraction and processing

pathways that are less capital intensive.

NeNeNeNeNew Mining and Prw Mining and Prw Mining and Prw Mining and Prw Mining and Processing Tocessing Tocessing Tocessing Tocessing Technologiesechnologiesechnologiesechnologiesechnologies

New, improved technologies are often the keyfor copper producers to realise significant

productivity improvements and efficiency

gains. New mining technologies can also

make extracting certain types of ore profitable

where today they may not be economically

feasible (e.g., chalcopyrite, deep ores).

Advances in processing technologies hold

promise to reduce costs and processing times,

and increase productivity and yields. In the

near term, copper companies can look to

other industries for existing technologies thatmay be applied to improve copper mining and

processing. In the longer term, the industry

must develop new technologies that meet the


18/50

6


unique needs and demands of copper

production will be pursued.

Sustainable deSustainable deSustainable deSustainable deSustainable devvvvvelopmentelopmentelopmentelopmentelopment Faced with the

environmental legacy issues associated with

historic mining practices, the copper industry

faces growing pressure of demonstrating that

current and new mining ventures will providelong term social benefits and protect the

environment. New processes and technologies

to reduce the footprint and more adequately

predict the environmental and social outcome

will assist the copper industry in the journey to

sustainability. Copper producers will also look

to new technology to make their processes

more benign and to produce useful byproducts

instead of wastes. A combination of more

sustainable operating practices and new

technologies will allow copper companies to

continue their commitment to sustainability.


19/50

7


3.3.3.3.3. R&D NR&D NR&D NR&D NR&D NEEDSEEDSEEDSEEDSEEDSANDANDANDANDAND PPPPPRIORITIESRIORITIESRIORITIESRIORITIESRIORITIES

The copper industry has identified the research,development, demonstration, testing, validation,and other technological activities needed toachieve its goals in response to the trends,drivers, and challenges shaping its future. Pre-competitive needs have been identified in eachof the three focus areas: new mining and

processing technologies, capital efficiency andasset utilisation, and sustainability. These R&Dneeds, and the most pertinent challenges andgoals driving the needs, are shown in Exhibits 4,5, and 6. Collectively, they represent over 100individual R&D needs, many of which feed intoone another to form larger technology pathwaysthat will help copper producers advancetowards the goals outlined in Chapter 1.

ImImImImImprpr

prprproo

ooovv

vvved Capital Efed Capital Efed Capital Efed Capital Efed Capital Efff

ffficiencyiciencyiciencyiciencyiciencyand Asseand Asseand Asseand Asseand Asset Utilisationt Utilisationt Utilisationt Utilisationt Utilisation

Because copper production is so capitalintensive, improving capital efficiency and assetutilisation is an important business objective ofall copper companies. While many of thetechnologies described above also have capitalimplications, the industry has identified a hostof other needs that can have direct or indirectimpacts on the efficient use of existing assetsand future capital resources (Exhibit 4).

New technologies such as automationtechniques and smaller-footprint mine designspromise to reduce costs and aid in managingrisk and investments. Copper producers alsoseek to reduce the cost of operations andmaintenance through improved sensors andprocess controls. Some of the most promisingareas for research go beyond individualtechnologies and address system-wide

integration, seeking cross-process opportunitiesin the pursuit of total system optimisation.Overall process control and a mine-to-metaloptimisation model are two high-priority needsthat can enable copper producers to better

integrate individual processes along the overallcopper production chain.

Sharing non-competitive knowledge amongcopper producers can help the industrypropagate best practices for operations andmaintenance. The industry could also benefit

by sharing technical expertise and/or facilitiesfor pursuing research on common issues.Dwindling human resources are another area ofshared concern for copper producers. Byworking together to recruit graduates into theindustry, copper producers can help eachanother address the ongoing depletion ofqualified human resources, and particularlytechnical expertise, that the industry has

endured in many parts of the world for the pastseveral years.

NeNeNeNeNew Mining and Prw Mining and Prw Mining and Prw Mining and Prw Mining and ProcessingocessingocessingocessingocessingTTTTTececececechnologieshnologieshnologieshnologieshnologiesCopper producers seek a wide range of newmining and processing technologies to achievethe goals of increased energy efficiency, lowerproduction costs, and management oftechnological risk and investment (Exhibit 5).

Ore system characterisation can improve the

efficiency of extraction by providing miners witha better physical and chemical map of oreresources before and during mining. Thisknowledge can provide further benefits byallowing copper producers to tailor theirdownstream processes (particularlycomminution and separation) based on thecharacteristics of the ore and waste rockentering the process. In-situ mining holds greatpromise of improved efficiencies, smallerfootprints, and lower costs, but research intosolution containment, solution selectivity, andcontrolling chemical and physical interactionsbetween the host rock and solution is needed tomake in-situ mining a viable option for copper

deposits.


20/50

8


Comminution is the most energy-intensiveprocess along the copper value chain; therefore,improvements in comminution would yieldsignificant energy savings. Intelligentcomminution is a concept that would allowcopper producers to improve overall systemefficiency by considering downstream

implications of comminution (e.g., optimalparticle size for separations and byproductmanagement), and managing comminutionaccordingly.

Better separation technologies can improveefficiencies, lower costs, and reduce wastes whileselective mining techniques can reduce the needfor separations entirely. Technologies thatincrease the efficiency of mining, such asimproved drilling technologies and continuous

mining processes, are also needed. Lower-energyelectrowinning and on-line cathode qualitycharacterisation would to allow coppercompanies to produce their commodity productsat lower cost and while adding more value duringelectrowinning.

SusSusSusSusSustainable Detainable Detainable Detainable Detainable DevvvvvelopmentelopmentelopmentelopmentelopmentThe industrys goals of environmentallyacceptable, sustainable operations and improved

safety, health, and industrial hygiene are perhapsmost appropriate for collaboration as they areshared by all copper producers and are oftendriven by societal and regulatory forces ratherthan market forces. To that end, Exhibit 6outlines the R&D needed to enhance thesustainability of copper production. One criticalneed is an integrated sustainability model thatincorporates economic and financialconsiderations into planning for sustainability.Such a model can benefit all copper producersseeking to build sustainability into their planning,

operation, and post-closure activities. Asuccessful model would use life-cycle analysistechniques to incorporate economic and financialconsiderations with environmental issues to buildsustainability into all investment decisions.

Water usage is an urgent issue for nearly allcopper producers. Using water efficiently isimportant for all industries, but it is particularlyrelevant to copper production because of the aridand semi-arid climates in which copper naturally

occurs. One approach to alleviate this problem isthe use of abundant saline water, thoughdesalination of salt water is currently expensive,and its use in processes creates new problems of

corrosion and surfactants. Improvedwastewater recovery, treatment, and reuse may

allow plants to recycle process water. Copperproducers can also seek to reduce waterconsumption by exploring more dry-processingtechniques, though pumping high-solidsstreams without drastically increasing energy

consumption is a challenge that requiresinnovative technology.

Byproduct management is another importantsustainability issue for copper producers. Pre-

concentration techniques to remove byproductsearlier are needed to remove them from furtherprocessing, thereby reducing costs and energyconsumption. Applying industry best practicesand best-available technologies will allowcopper producers to manage the impact of

tailings and waste rock stockpiles on theirenvironments in the near term, with newtechniques sought for additional longer termimprovements. Finally, industry-wide self-governance mechanisms, such as an industry-accepted code of behavior can help theindustry protect the environment while alsobolstering its image with the local communitiesin which it operates as well as the public atlarge.

CCCCCOMPETITIVEOMPETITIVEOMPETITIVEOMPETITIVEOMPETITIVE R&D AR&D AR&D AR&D AR&D AREAREAREAREAREASSSSS BBBBBEINGEINGEINGEINGEING PPPPPURSUEDURSUEDURSUEDURSUEDURSUED

BBBBBYYYYY IIIIINDIVIDUNDIVIDUNDIVIDUNDIVIDUNDIVIDUALALALALAL CCCCCOMPOMPOMPOMPOMPANIESANIESANIESANIESANIES

In addition to the pre-competitive R&D needs

identified in this roadmap, copper companies

are independently working on a number of

technologies that will enhance their

competitive position in the marketplace. Some

of these competitive topics are listed below,

presented in order to cover the entire range of

technology needs in the copper industry.

Copper companies are also collaborating in

some of these areas, but many are likely to

remain as areas where copper companies also

pursue R&D activities independently.

Heap leaching of chalcopyrite

Copper concentrate leaching and hydromettreatment

Enhanced biological leach systems

Advanced electrowinning technology

Smelter technology

Deportment of radionuclides and otherminor elements

Recovery of precious and rare metals

Re-generation of oxidising species

Interparticle comminution


21/50

9


R&D NEEDS&D NEEDS

CRITICAL BARRIERSRITICAL BARRIERS RELEVANT GOALSELEVANT GOALSChalcopyrite extraction efficiency

Downtime of assets

Risk versus rewardLack of knowledge sharing(successes and failures)

Lowering the cost ofproduction

Managing technological riskand investment

Improving energy efficiencyby 10%

CAPITALEFFICIENCY

AND ASSETUTILISATION

CAPITALEFFICIENCYAND ASSETUTILISATION

KNOWLEDGESHARINGKNOWLEDGESHARING

Knowledge-sharing database andwebsite to provide access to non-competitive information

Virtual work force for maintenanceand best practices

Share information on criticalmaterial uses for design andconstruction of copper plants (e.g.,wear/corrosion resistance)

Knowledge-sharing database andwebsite to provide access to non-competitive information

Expert and facilities sharing

for common issues such ascomminution, chalcopyrite, andwaste management

Open source development viathe internet

HUMANRESOURCESHUMANRESOURCES

Opportunities for younger workers

Global approach for graduaterecruitment and training

More extensive public relationswork with young people

TECHNOLOGYCOLLABORATIONTECHNOLOGYCOLLABORATION Industry technology associationsCollaborative funding of R&D

Risk capital corporation for specificstrategic knowledge development

R&D links with other industrysectors to help identify stepchange opportunities

Creation of copper researchcommunity

SYSTEMINTEGRATIONSYSTEMINTEGRATION

Mine-to-metal optimisation model

Optimise process control

dynamic plant control andoptimisation system

advanced optimisation software

real-time process chain control

understanding of real economicdrivers

Mine-to-metal optimisationmodel Use knowledge managementsystems to analyse data

Explore continuous copperprocess concepts

Consider customers' needs

OPERATIONSAND MAINTENANCEOPERATIONSAND MAINTENANCE

Real-time whole process control,including maintenance of assetsReal-time whole process control,including maintenance of assets

Sensors and technology for on-linemeasurement of efficiency andcondition

MINING ANDPROCESSINGTECHNOLOGIES

MINING ANDPROCESSINGTECHNOLOGIESExtraction technology forchalcopyrite that achieves >80%recovery through leaching whole ore

Smaller footprint/higher throughputdesigns

Automation and robotics technology

for mining and transportMaterial transport alternatives

Truck-less mining

In-situ leach and barriertechnology

Use of nanotechnology in miningand processing

Autonomous mining equipmentfor open pit and underground

mining

Denotes priorityenotes priority

Exhibit 4. R&D Needs and Priorities: Capital EfExhibit 4. R&D Needs and Priorities: Capital EfExhibit 4. R&D Needs and Priorities: Capital EfExhibit 4. R&D Needs and Priorities: Capital EfExhibit 4. R&D Needs and Priorities: Capital Efffffficiency and Asseiciency and Asseiciency and Asseiciency and Asseiciency and Asset Utilisationt Utilisationt Utilisationt Utilisationt Utilisation


22/50

10


CRITICAL BARRIERSRITICAL BARRIERSIn-situ mining techniques

Energy-efficient dry separation

and comminution processesMining processes that use lesswater

Economic mining of lower gradeores

Lowering the cost ofproduction

Managing technological riskand investment

Improving energy efficiencyby 10%

NEW MININGAND

PROCESSINGTECHNOLOGIES

NEW MININGAND

PROCESSINGTECHNOLOGIES

IN-SITUMININGIN-SITUMINING

In-situ mining and processing

In-situ solution containment

Flow path prediction/enhancement

Bio-leaching and chemistryenhancements

Mining footprint minimisation(technologies for in-situ leaching)

In-situ mining and processing Controlled interactions (host,water)

Efficient solution handling andextraction to surface

Nanotechnology/biotechnology toexploit microcracks

Selective leaching technology

COMMINUTION Intelligent comminutionPreferential mineral liberation

New methods for breaking rock

Improved dry grindingCrusher tailored to ore

Intelligent comminution Low-energy chalcopyrite particlesize reduction

Particle predictive breakage model

Selective breakage of mineralsMaterials and coatings with betterwear and corrosion resistance

SEPARATIONEPARATION Improved dry separationTechniques based on materialdetection, analysis, and separation

Cheaper air classification

Improved dry separation On-line characterisation offloatability

More efficient flotation cells

Improved fine particle sorting

SELECTIVEMININGSELECTIVEMINING

Effective selective mining

Rapid on-line ore characterisationand recognition techniques

Precision extraction

Improved header/cutter design

MININGEFFICIENCYMININGEFFICIENCY

More efficient mining

In-situ reduction of chalcopyrite tosand

More economical drillingtechnologies that can relay ore bodyinformation during drilling

Drill materials and smart drillbitsContinuous mining process no drill-and-blast cycle efficient dry comminution selectivity remote operation

ORE SYSTEMINTELLIGENCEORE SYSTEMINTELLIGENCE

Overall ore system intelligence optimisation of 3D seismic

technology for hard rock in-situ MWD characterisation

in-situ chemistry4D and micro-seismic imaging

Application of oil industry down-holeanalysis

Overall ore system intelligence Application of ore characterisationtechniques to optimise mineplanning

Ore characterisation to determine

optimal breakage size forseparation and disposal

ELECTROWINNINGLECTROWINNING Lower over-voltage EW anodeReduced EW energy (improved busbardesign)Simulation model to optimise EWImproved selectivity

Zero-emission smelting

On-line cathode qualitycharacterisation

Practical Cl- EW system (no gas)

Increased value-added for EW

Direct EW from solution

R&D NEEDS&D NEEDSDenotes priorityenotes priority

RELEVANT GOALSELEVANT GOALS

Exhibit 5. R&D Needs and Priorities: NeExhibit 5. R&D Needs and Priorities: NeExhibit 5. R&D Needs and Priorities: NeExhibit 5. R&D Needs and Priorities: NeExhibit 5. R&D Needs and Priorities: New Mining and Prw Mining and Prw Mining and Prw Mining and Prw Mining and Processing Tocessing Tocessing Tocessing Tocessing Technologiesechnologiesechnologiesechnologiesechnologies


23/50

11


CRITICAL BARRIERSRITICAL BARRIERS

INTEGRATEDSUSTAINABILITYMODELS

INTEGRATEDSUSTAINABILITYMODELS

WATERATER

POST-CLOSURELAND USEPOST-CLOSURELAND USE

BYPRODUCTSAND WASTESBYPRODUCTSANDWASTES

SELF-GOVERNANCEMECHANISMS

SELF-GOVERNANCEMECHANISMS

Integrated sustainability model

economic approach and financialtools for mine discovery,development, operation, and

closure integration of risk analysis

Better life-cycle analysismethodology quantification

Integrated sustainability model Improved geotechnical models forslope stability

Techniques for site-levelsustainability reviews

Geochemical and surfacechemistry models coupled withhydrology to minimise acid rockdrainage

More efficient use of water

water recovery from tailings

better extraction techniques

dry processing technologies

Better water recovery techniques

improved thickeners

purification/ion removal

pumping control reliability

More efficient use of water Use of saltwater surfactants

corrosion issues

low-cost desalination

Innovative waste watertreatment/byproduct recovery

Large-scale dewatering technology

Pumping high-solids streams at

lower cost and energy

Post-closure pit lake geochemistryknowledge transfer

New uses for closed mines

Contaminated site remediation

Post-closure pit lake geochemistryknowledge transfer

Infrastructure and humancapacity for sustainable post-mining use

Acid rock drainage prediction,prevention, and control

Conversion of waste into products

Pre-concentration to remove wastesfrom further processing

Uses for byproducts from tailings

Co-disposal of wastes

Byproduct recovery from leachsolutions and waste non-orestockpile

Energy recovery from low-grade heat

Conversion of waste into products Selective ion exchange resins forimpurity removal

Phyto-remediation

Submarine disposal of tailings

Impervious liners

Predictive models of drainagebased on oxidation of metalleaching in waste rock non-orestockoile

Industry code of behavior

meaningful, verifiable

universally agreed upon (licenseto operate)

Open exchange of environmentalbest practice experience

Method to work proactively withgovernments on permitting issues

Reward system for sustainableprocessing

Improved approach to localcommunities

Study of the true impacts ofmining on society/environment

Marketing of mining

Understanding and managingwaste rock and tailings

Closure issuesEstablishing clear business casefor sustainability

Water issues

Achieving the balance ofeconomic, environmental and

social effectsImproving safety, health andindustry hygiene

SUSTAINABLE

DEVELOPMENT

SUSTAINABLEDEVELOPMENT

R&D NEEDS&D NEEDSDenotes priorityenotes priority

RELEVANT GOALSELEVANT GOALS

Exhibit 6. R&D Needs and Priorities: Sustainable DeExhibit 6. R&D Needs and Priorities: Sustainable DeExhibit 6. R&D Needs and Priorities: Sustainable DeExhibit 6. R&D Needs and Priorities: Sustainable DeExhibit 6. R&D Needs and Priorities: Sustainable Devvvvvelopmentelopmentelopmentelopmentelopment


24/50

12


R&D PrioritiesR&D PrioritiesR&D PrioritiesR&D PrioritiesR&D PrioritiesWith finite R&D resources available to everycopper company, the industry must focuscollaborative activities on priorities. The elevenpriorities identified here represent some of themost urgent and promising areas forcollaborative technology development. Thesepriorities are of particular interest because theyoffer significant potential rewards, but aretypically too costly, long-term, risky, or otherwisedaunting for individual companies to makeadequate progress towards independently. Thetop priorities for collaborative R&D efforts are:

Mine-to-metal optimisation

Integrated sustainability model

Intelligent comminution

More efficient use of water

Design for closure

In-situ mining

Knowledge-sharing database

Ore system intelligence

Real-time whole process control

Dry processing technology

Byproduct management

As shown in Exhibit 7 below, the priorities spanthe entire copper value chain considered in thisroadmap. Additionally, several of the prioritiescut across multiple or all process steps. Theseso-called systems issues may hold thegreatest potential for cost reductions, efficiencyimprovements, or environmental impact

because they capture opportunities that areoften missed when companies focus onindividual processes.

Each of the top priorities is presented in greater

detail in the one-page diagrams that follow.Each diagram includes the followinginformation:

A more detailed description of the priority

Several key technical elements of the neededR&D

Key milestones in the technologys

development path

Performance metrics for the technology

Technical capabilities needed and

opportunities for collaboration

Linkages to other technologies and

developments

Next steps for beginning to address the priority

Exhibit 7Exhibit 7Exhibit 7Exhibit 7Exhibit 7. R&D Priorities Along the Copper V. R&D Priorities Along the Copper V. R&D Priorities Along the Copper V. R&D Priorities Along the Copper V. R&D Priorities Along the Copper Value Chainalue Chainalue Chainalue Chainalue Chain

MinePlanning

Extraction Comminution SeparationElectro-winning

FinishedProducts

ICA Roadmapping

Activities

Copper

Technology

Roadmap

High Priority:

Ore System

Intelligence

Top Priority:

More Efficient

Use of Water

Wastes Wastes Wastes

FinishedCathodes

Wastes

Priority:

Byproduct

Management

High Priority:

In-Situ

Mining

SYSTEMS ISSUES (ADDRESSES ALL AREAS)YSTEMS ISSUES (ADDRESSES ALL AREAS)Top Priority:

Mine-to-Metal

Optimisation

High Priority:Real-Time

Whole Process

Control

High Priority:Design for

Closure

Top Priority:Integrated

Sustainability

Model

High Priority:Knowledge-

Sharing

Database

Priority:

Dry Processing

Technology

Top Priority:

Intelligent

Comminution


25/50

13


OPPORTUNITIES FOR COLLABORATIONPPORTUNITIES FOR COLLABORATION LINKAGES TO OTHER DEVELOPMENTSINKAGES TO OTHER DEVELOPMENTS

The concept of mine-to-metal optimisation integrates many technical elements

of mining and processing technology. The objective is to develop a model of the

whole copper production process from mining the ore in the vein through

production of copper metal and tailings disposal. Better understanding of key

mining, metallurgical, and operational parameters including ore body

characterisation, economical particle transfer, material movement, and energy use patterns will help create

the framework for the development of the model. The copper industry is already using a number of discrete

models for unit operations such as flotation and comminution. These existing models provide a likely starting

point for developing an integrated, continuous copper production model. The development strategy will

include a review of existing models, identification of the gaps not covered by these models, and the

establishment of priorities for proceeding. The model will encompass knowledge on explosives technologies

(for blasting), grinding, leaching, flotation, and also geotechnical modeling in order to relate processing back

to the ore system itself. Although challenging, the various pieces of research to develop the technical

knowledge needed for mine-to-metal optimisation will yield benefits in their own right.

TECHNICAL ELEMENTSECHNICAL ELEMENTS KEY MILESTONESEY M ILESTONES

NEXT STEPSEXT STEPS

Modeling experts:

Energy, waste, and other technical issues:

JK Mineral Research Centre;

MinnovEX, software vendors

Research institutions

Modeling experts:Energy, waste, and other technical issues:

Explosive technologyGrinding technologyLeaching technologyFlotationGeotechnical modelingOre system intelligence priority

Ore body intelligence to allow

understanding of the ore

Determination of optimal particle

transfer size

Characterisation of energy use

along the mining/processing chain

Techniques for waste minimisation

and prevention early in the chain

Analysis of material movement

Review of existing (discrete)

models and strategies for

integrating them

Completion of review ofexisting (discrete) models

Identification of gaps in the

set of models

Establishment of priorities for

the development of an

integrated model

Multi-site model testing

(possibly at sites chosen for

expert site review in Real-

Time Whole Process Control

Prepare a project scope of work

Identify expert reviewers

Copper Technology Working Group to determine interest in project initiation and oversee project if initiated

PERFORMANCE METRICSERFORMANCE METRICS

TOP PRIORITYOP PRIORITY

MINE-TO-METALOPTIMISATIONM INE-TO -M ETALOPTIMISATION

Reduced energy use

Increased throughput

Higher percentagerecovery

Higher product quality

Reduced capitalrequirements

Increased capitalefficiency

Reduced energy useIncreased throughputHigher percentagerecoveryHigher product qualityReduced capitalrequirementsIncreased capitalefficiency


26/50

14


OPPORTUNITIES FOR COLLABORATIONPPORTUNITIES FOR COLLABORATION LINKAGES TO OTHER DEVELOPMENTSINKAGES TOOTHER DEVELOPMENTS

Traditional project evaluation methods based on discounted cash flow analysis

are limited in their ability to consider broader sustainability issues. A new way

of evaluating the overall mine cycle including economic, social, and

environmental aspects is needed to fully account for sustainability, closure

costs, and other benefits and liabilities. Better metrics are needed for the

three key components of this new triple bottom line model -- economic, social,

and environmental, particularly the last two. Methods for quantifying and summing the impacts of each

component (both positive and negative) will also be required. An overall model that integrates all of these

impacts into a few key meaningful metrics will provide decision-makers with a new and more complete way of

evaluating mining projects.

A key milestone is the development of meaningful metrics for the social and environmental components of

the new methodology. The development of a prototype integrated model and a demonstration of its

applicability with existing cases will help advance the uptake of this new methodology.

TECHNICAL ELEMENTSECHNICAL ELEMENTS KEY MILESTONESEY MILESTONES

NEXT STEPSEXT STEPS

Quantitative metrics

economic

Methodologies to integratemetrics into overall decision-making models for projectvaluation

social*

environmental*

Development of meaningfulmetrics

Development of prototype,ready-to-test integratedmodels

* Social and environmental risks are handled in a quantitative manner, including real options analysis to captureopportunities and threats and to perform better valuation of closure costs.

International Council on Mining and Metals(ICMM)

Cooperative Research Centre for SustainableResource Processing

International Institute for EconomicDevelopment

ICMM's Global Reporting InitiativeReal options analysis developments from thefinancial communityInternal company modelsReview of triple bottom line reporting initiatives

Determine if compendium of metrics already exists; begin gap analysis once compendium is completeIdentify current best practices in valuation for sustainable developmentIdentify current and best practice in handling the implications of closure



TOP PRIORITYOP PRIORITYINTEGRATED

SUSTAINABILITYMODEL

INTEGRATEDSUSTAINABILITYMODEL

Demonstration of the

applicability of prototypemodel(s) using historicalexamples

Uptake by companiesbased on successfuldemonstration

Demonstration of theapplicability of prototypemodel(s) using historicalexamplesUptake by companiesbased on successfuldemonstration


27/50

15


TOP PRIORITYOP PRIORITY


Comminution is the most energy-intensive operation in copper production.

Improving comminution techniques can lower energy costs while also

potentially offering other benefits, such as less maintenance or reduced

environmental disposal costs, by reducing the amount of fines produced. By

combining ore system characterisation with knowledge of how different ores

break, copper producers can tailor blasting and comminution approaches to minimise costs. Betterunderstanding of and exploiting the relationship between blasting and comminution are critical components

of this effort, and results from the priority regarding ore system intelligence will feed into this activity.

Studies and modeling of how par ticles break and selective breaking equipment are needed to achieve

preferential breakage of rock. Existing R&D effor ts in this area, including current and proposed AMIRA

projects, are the logical starting point for addressing this area.

In the longer term, the industry should explore how to apply novel ways of breaking rock (e.g., microwave,

electric pulse) to copper ore systems. Ultimately, the copper industry desires intelligent comminution that

combines comminution, blasting, and fracture modeling, and also considers downstream operations such as

separations to optimise overall system efficiencies. Also, improved comminution processes may make

previously uneconomic ore deposits economically viable and allow copper producers to profitably mine and

process new types of ore bodies.

TECHNICAL ELEMENTSECHNICAL ELEMENTS KEY MILESTONESEY M ILESTONES PERFORMANCE METRICSERFORMANCE METRICS

Get previously planned AMIRA projects started

Write two-page concept paper to assess industry needs (AMIRA)

Circulate among companies for project participation decisions

Individual companies will independently study competitive consequences of successEngage part suppliers to develop practical concept


NEXT STEPSEXT STEPS

Capabilities Needed: Expertise in mathematicalmodeling, mechanical engineering, comminution

management, testing technologies, sensing, materials,

part suppliers

Capabilities Needed:

INTELLIGENTCOMMINUTION

INTELLIGENTCOMMINUTION

Improved materials to enhance

existing systems and enable new

processes

Rheology analysis of material

before comminution

Models of comminution machines

for improved design and control

Monitoring capability for

comminution during operation

Breakage models, particle-size

relationships

Understand state-of-the-art fracture

techniques (e.g., microwave,

electric pulse)

Demonstrated value of 3D

liberation modeling

Preferential breakage and

liberation techniques

Size classification improvements to

reduce recycle

Establish project to develop

selective breakage machine

Develop concept of intelligent

comminution system to show

how pieces fit together

Establish a repository to make

information on R&D efforts

available

Electronics & sensingPrediction of flotation performance based onfeedstockData managementWater managementClassification and dry separationIndustries that blast/crush with differentmotivations and different technologies

Reduced cost (energyconsumption,maintenance costs)

Increased throughput

More useful wasteproduct (avoids fineparticles)

Reduced cost (energyconsumption,maintenance costs)Increased throughputMore useful wasteproduct (avoids fineparticles)


28/50

16



The availability and quality of water, particularly in remote locations, is critical

to mining operations. The mining industry's strategy for using this natural

resource will include finding ways to meet its needs with alternative water

resources such as salt water and recycled water. The ability to adapt to

different types of water sources in the future will require a deeper

understanding of the impact of water quality on mining processes and on materials of construction.Understanding the operational envelope within which current processes operate with respect to water,

including any limitations imposed by current water sources, will establish a basis for comparison with the use

of alternative water sources. In addition to examining water sources, the industry must ensure the efficiency

of water use in each process, examining dry alternatives where feasible, minimising evaporation and other

losses, and maximising water recovery. Numerous water conservation studies and related activities have

been undertaken by governments and other technical bodies around the world, presenting opportunities for

collaboration and knowledge transfer.

TECHNICAL ELEMENTSECHNICAL ELEMENTS KEY MILESTONESEY M ILESTONES

NEXT STEPSEXT STEPS

Sustainable development processes: United

Nations, World Bank, CRC, government water

boards

Sustainable development processes: Dry processing techniquesRheology pumping efficiency

Water sources

recycle water

makeup water (treated or un-treated; if untreated, fresh or

saline)

Impact of water quality on process

chemistry and materials of

construction

Process water use

Water recovery processes

Water losses

Quality of released water

Technical and economic review

of water treatment processes

(desalination and other)

Understanding of the

operational envelope with

respect to varying water quality

Integrated site water model

balance

Review of unit operation water

requirements

Process alternatives

Efficient dewatering

equipment

Characterisation of waterlosses

Loss (e.g., evaporation)

minimisation

Compliance with global

standards


Review water management and use

Review capabilities in evaporation minimisation


TOP PRIORITYOP PRIORITYMORE

EFFICIENT USEOF WATER

MOREEFFICIENT USEOF WATER

Cubic meter of

make-up

water per tonne

of copper

Cubic meter ofmake-upwater per tonneof copper


29/50

17


The complexity of mine closure issues such as liability, restoration costs and

risks, and the sustainability of the community beyond the active life of the mine

are best addressed through a holistic approach to designing for closure. Water

quality, slope stability, land use, and other environmental and societal

sustainability issues must all be considered. Ensuring long-term water quality

will require the ability to accurately predict water quality. To accomplish this,geochemical, mineralogical, and hydrological modeling of waste rock heaps, non-ore stockpiles, and tailings

facilities must be scaled up and validated with real data sets. Mechanisms for pyrite oxidation based on

climate and location must be better understood. Current understanding of the long-term geotechnical

stability of waste non-ore stockpile dumps and tailings facilities is very limited and must be expanded.

Possible options for beneficially using the mined land and infrastructure post-closure must be identified and

evaluated.

The industry needs a general performance metric with which to compare itself rather than detailed criteria.

The goal is a sustained or enhanced biophysical and socio-economic environment so that the surrounding

community can continue to be sustained without the presence of or input from the mining company.

Further, post-mining community issues should be considered and addressed with appropriate

stakeholders throughout the exploration, development and operating stages of a mine. The industr y can

contribute to the creation of sustainable communities by ensuring that the mineral capital is transformed into

infrastructure and human capital in the most appropriate way.


Review current work and initiatives related to design for closure

Identify research experts in pyrite oxidation and coordinate development of a scope of work


NEXT STEPSEXT STEPS

Post-closure issues: International Council of Minesost-closure issues:and Metals (ICMM)

Open cut mines: World Coal Institutepen cut mines :Acid rock drainage: International Network for Acidcid rock drainage:Prevention, Acid Drainage Technology Initiative, Mine

Environment Neutral Drainage, Australian Council for

Mine Environmental Research

Long-term reliability of impervious liners

Heap and non-ore stockpile leaching

Knowledge sharing

OPPORTUNITIES FOR COLLABORATIONPPORTUNITIES FOR COLLABORATION LINKAGES TO OTHER DEVELOPMENTSINKAGES TO OTHER D EVELOPMENTS

HIGH PRIORITYIGH PRIORITY

DESIGN FOR

CLOSURE

DESIGN FORCLOSURE

Prediction of water quality from

waste rock heaps and stockpiles

understanding of pyrite oxidation

based on climate and location

geochemical and mineralogical

modeling

hydrology modeling and

hydrogeology

Mine site remediation and

rehabilitation

pit lake geochemistry/hydrology

phytoremediation

Long-term geotechnical stability

Delineation of mechanisms for

pyrite oxidation

Validation/scale-up of existing

geochemical models

Backward-looking geochemical

and mineralogical models for

water quality

Ways to use mine and

associated infrastructure post-

closure

best practices guidelines

resource materials

Sustained orenhancedbiophysical andsocioeconomicenvironment

Sustained orenhancedbiophysical andsocioeconomicenvironment


30/50

18



Conduct baseline study to

gather existing knowledge about

in-situ mining from other

industries (6-12 months)

Conduct gap analysis

Conduct fundamental

understanding and analysis

work to adapt or developtechnologies to address most

significant challenges (e.g.,

containment, activation, etc.)

Identify target ore system with

key characteristics that are a

driver for in-situ mining

Develop test concept for target

ore system that aims to provide

technical challenges can be

overcome (3-5 years)

In-situ mining is essentially an underground leaching system in which solvents

are pumped into the ground and copper-rich solutions are extracted and sent to

subsequent processing. This approach conceptually combines several of the

steps in the traditional copper value chain: extraction, comminution, and

separation. In-situ mining also avoids large open-pit mines, thereby minimising the corresponding public

perception issues and the disruption to the surrounding environment. The technique is used to mine otherminerals (e.g. uranium), but several challenges make in situ copper mining difficult: ore body characterisation,

rock fracturing and penetration with solution, selectivity, chemistry, and containment.

While reducing the footprint of copper mining is a benefit of in-situ mining, the real driver is economic in

nature. In situ mining could allow copper producers to mine ore bodies that are not economically feasible

using conventional methods because of their physical or chemical characteristics. he main

opportunity for in-situ mining may lie with deep ores (~1500 m) at relatively high temperatures (80C). In-situ

mining in three-phase environments is particularly challenging; however, it is highly important and valuable to

the industry because chalcopyrite occurs naturally in three-phase systems. An important objective of this

effort is to understand the characteristics that make ore bodies more amenable to in-situ mining so it can be

applied to those that are best suited to the technique.

In-situ mining is ripe for collaboration because it is an area of high risk but high potential return. Further,

knowledge gained through R&D aimed at in-situ mining will likely be applicable to traditional heap leaching

and control of ground water contamination, increasing the value companies are likely to receive by pursuingthe technology and thereby somewhat lessening the risk.

In the long term, t


NEXT STEPSEXT STEPS

Identification of types of ore bodies

that are particularly viable

Key issues include containment and

delivering reactants to minerals (for

two- and three-phase systems)

Plume mapping (sub-surface water)

Hydro-geological mapping

Techniques to manage liquid

chemistry to achieve reasonable

yields

Improved corrosion resistance of

materials

Investigate ways to avoid or handle

undesirable materials (e.g., arsenic)

Properly manage public perception

of in-situ mining


Administration:

Geological modeling, fluid

modeling, hydro-geochemist, bio-chemist

Project Champion who can lead

the effort


Administration:

Fracturing, sealing, and fluid recovery (petroleum

extraction)

Activation technologies (coal mining)

Containment technologies (environmental

remediation)

Copper heap leach chemistry and models

Hydro-geological models

Bioleaching containment models

Ore system intelligence priority feeds in-situ mining

Write two-page concept paper to assess industry (AMIRA)

Circulate among companies for project participation decisionsIndividual companies will independently study competitive consequences of success



IN-SITUMININGIN-SITUMINING

Economics

(recovery and yield)

Environmentalimpact

Scale and size of

operation that is

feasible

Economics(recovery and yield)

EnvironmentalimpactSca le and s ize o foperation that isfeasible


31/50

19



The theme of sharing information is one that resonates throughout the copper

industry. Copper companies can learn from each other as well as from other

industries using similar processing steps and facing analogous environmental

and waste handling issues. Web-based technology for sharing information is

readily available and should be exploited for the benefit of the entire industry.

Environmental and health/safety case studies, best practices, and relatedpublications/data would be a good star ting point that would be unlikely to arouse any controversy within the

industry. Eventually the database could cover a wider spectrum of topics, possibly even common

specifications and standards. The involvement of vendors and equipment suppliers would make the database

more comprehensive and may represent a source of revenue for its maintenance. The ability of the industry

as a whole to make substantial progress both technologically and in social and environmental acceptance

will depend on the willingness of copper producers to share knowledge and work together toward common

goals.

TECHNICAL ELEMENTSECHNICAL ELEMENTS KEY MILESTONESEY MILESTONES

NEXT STEPSEXT STEPS

Funding sources:

Administration:

Sponsors, vendors and equipmentsuppliers (in the longer term)

Host, software programmers

Funding sources:Administration:

Tracking/reporting on collaborative R&D projects

Technology scanning activities

Identification of administrator/host

Identification of information toshare

environment/safety

technical

successes/failure

best practices

expert advice and vendors

equipment specifications

Identification of potential fundingsources

Investigation of existing models(e.g., Seeker Saver, DataMetallogenica, Quadrem)

Use of a staged approach

start with top priorities

add environmental information

Development of a proposaldetailing approach, scope, andcost

Project initiation

Completion of prototypesystem

Active knowledge-sharingsystem

Collaborative R&D projecttracking system component

Feedback mechanisms

AMIRA to prepare proposal for industry reviewCopper Technology Working Group to determine interest in project initiation and oversee project if initiated


HIGH PRIORITYIGH PRIORITYKNOWLEDGE-

SHARINGDATABASE

KNOWLEDGE-SHARINGDATABASE

Hits/week

News items/month

Sponsor excitement

Value of information

Interactions amongusers

Hits/weekNews items/monthSponsor excitementValue of informationInteractions amongusers


32/50

20



ORE SYSTEMINTELLIGENCEORE SYSTEMINTELLIGENCE


Documents

Copper Technology Roadmap