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Update of Strategic Vision of CODELCO.
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DIGITAL CODELCO
CIO Office,CODELCO
Germany, Walldorf.
Sep, 2011
Copyrights © 2011 CODELCO-CHILE. Todos los Derechos Reservados. Copyrights © 2011 by CODELCO-CHILE. All Rights Reserved.
CODELCO
http://www.codelco.com
CODELCO DIGITAL
3Copyrights © 2011 CODELCO-CHILE. Todos los Derechos Reservados.Copyrights © 2011 by CODELCO-CHILE. All Rights Reserved.
CODELCOA Global Company
Distribución Ventas de Cobre de Codelco
MICOMOCODELCO/NTT
BIOSIGMACODELCO/NMM Co. Ltd.
KAIROS MININGCODELCO/HONEYWELL
MinesHeadquarters
SubsidiariesAgents
Joint Ventures
CODELCO DIGITAL
DIVISIÓN CHUQUICAMATA
DIVISIÓN MINISTRO HALES
DIVISIÓN RADOMIRO TOMIC
DIVISIÓN SALVADOR
DIVISIÓN ANDINA
DIVISIÓN VENTANAS
CASA MATRIZ
DIVISIÓN EL TENIENTE
4Copyrights © 2011 CODELCO-CHILE. Todos los Derechos Reservados.Copyrights © 2011 by CODELCO-CHILE. All Rights Reserved.
World Copper Reserves
Note: Other countries: 13%.Source: U.S. Geological Survey, January 2010.
20%
6%
6%
12%
5%
7%5%
4%
4%
3%
3%
1%
13%
Chile
Perú
México
USA
CanadáPolonia
Rusia
Kazajstán
China
Indonesia
Australia
Zambia
5Copyrights © 2011 CODELCO-CHILE. Todos los Derechos Reservados.Copyrights © 2011 by CODELCO-CHILE. All Rights Reserved.
Codelco
Largest copper producer in the world, app 11% of world production.
2010 Production: 1,9 millions ton.
2010 Sales: US$13.459 millions
Control of 10% of proven reserves of copper in the world.
100% ownership: Chilean State.
Largest exporter of Chile.
CODELCO DIGITAL
DIGITAL CODELCO
CODELCO DIGITAL
7Copyrights © 2011 CODELCO-CHILE. Todos los Derechos Reservados.Copyrights © 2011 by CODELCO-CHILE. All Rights Reserved.
CODELCO Challenges
• Make the most of increasingly complex minerals.
• Continuous search for improvements and productivity increases.
• Progress in the automation of production processes.
• Sustainability, develop clean mining (medium-environmentally "friendly").
• Increase the security of operations and improve the quality of life of workers.
• Develop a corporate culture that manage knowledge and promotes continuous innovation
• Check early design of structural projects the TICAR potential.
For all of this challenges ITC&A is strategic.
Source: Internal documents and interviews to executives of the divisions of the Corporation.
CODELCO DIGITAL
8Copyrights © 2011 CODELCO-CHILE. Todos los Derechos Reservados.Copyrights © 2011 by CODELCO-CHILE. All Rights Reserved.
CODELCO’s Main Short Term & Structural Mining Projects
CODELCO DIGITAL
9Copyrights © 2011 CODELCO-CHILE. Todos los Derechos Reservados.Copyrights © 2011 by CODELCO-CHILE. All Rights Reserved.
Years ago our business was based on the physical work, and mining became synonymous of Sacrifice
In those days ...
Workers coming from the field
High grade ores
Almost non-existent regulations
10Copyrights © 2011 CODELCO-CHILE. Todos los Derechos Reservados.Copyrights © 2011 by CODELCO-CHILE. All Rights Reserved.
Today...Our main partners are the knowledge, innovation
and technology
The business .... Every day is a different business
What to us yesterday was successfulNo longer a guarantee for the future ...
11Copyrights © 2011 CODELCO-CHILE. Todos los Derechos Reservados.Copyrights © 2011 by CODELCO-CHILE. All Rights Reserved.
Yesterday Today Tomorrow
Physical Labor
Technology
Knowledge
Developments in the mining industry does not stop with imagination, knowledge and technology reach produce from the air...
The challenge is to think today at: processes we tomorrow together with people and technologies that bear them view the company that we have
CODELCO DIGITAL
12Copyrights © 2011 CODELCO-CHILE. Todos los Derechos Reservados.Copyrights © 2011 by CODELCO-CHILE. All Rights Reserved.
Future VisionHypothesis
“ Over the years the Mining Business from a Business will focus on physical actions to be one primarily
focused on knowledge and technology.
Companies that anticipate this change will be able to establish early leadership strategies to position itself in
the mining of the future, and thus attract and / or convert timely talent required for their new processes ”
“ Over the years the Mining Business from a Business will focus on physical actions to be one primarily
focused on knowledge and technology.
Companies that anticipate this change will be able to establish early leadership strategies to position itself in
the mining of the future, and thus attract and / or convert timely talent required for their new processes ”
13Copyrights © 2011 CODELCO-CHILE. Todos los Derechos Reservados.Copyrights © 2011 by CODELCO-CHILE. All Rights Reserved.
Our Vision: “DIGITAL CODELCO”Our Vision: “DIGITAL CODELCO”
Digital CODELCO is the way to see the CODELCO in the future through the prism of the ITC&A, this vision feeds, and is inherent in the company business plans. A Codelco:
With Mining:
• Automated
• Robotic
• Teleoperated
• Distance Integrated Operation
• Online & Real-Time Information
• With Collaborative Processes and Knowledge Management
We do not see a truck... we see always connected digital system, equipped with autonomy, in an intelligent mine, in a digital world ...
The ITC&A CODELCO's team and its partners work to make certain this dream.
15Copyrights © 2011 CODELCO-CHILE. Todos los Derechos Reservados.Copyrights © 2011 by CODELCO-CHILE. All Rights Reserved.
ITC&A Infrastructure: Integration to the Operation
Integrated Control Room Mining ProcessesIntegrated Control Room Mining ProcessesRemote telecommand, LHD &
hammersRemote telecommand, LHD & hammers
Autonomous TrucksAutonomous Trucks
Corporate Fleet Control System Mining
Corporate Fleet Control System Mining
Automation ProgramAutomation Program
Support & Monitoring Corporative Centre for Concentrator Plants (Kairos)Operation Integration for Divisions: Codelco Norte, Andina y El Teniente
Support & Monitoring Corporative Centre for Concentrator Plants (Kairos)Operation Integration for Divisions: Codelco Norte, Andina y El Teniente
Robot that replaces CathodesRobot that replaces Cathodes
16Copyrights © 2011 CODELCO-CHILE. Todos los Derechos Reservados.Copyrights © 2011 by CODELCO-CHILE. All Rights Reserved.
Organizational Development and ITC&A Environment
Business Prio
Support
Cross
Strategic Objective Cat.:
OE8: Level and systemically incorporate ITC&A technologies value chain to improve efficiency and integration
OE8: Level and systemically incorporate ITC&A technologies value chain to improve efficiency and integration
OE9: Implement a model for the continuous incorporation of ITC&A's facilitating integrated working between Divisions and Corporate
OE9: Implement a model for the continuous incorporation of ITC&A's facilitating integrated working between Divisions and Corporate
OE2: ITC&A incorporate focused on reducing costs, increasing productivity and safety of persons
Strategic Map for ITC&A in CODELCO
OE1: Optimize and leverage the installed base ITC&A
OE3: ITC&A incorporate to structural projects from their earliest conception
OE4: Fully manage the mining operations
Phase IConsolidation and profitability of TICA in Business
Phase IIIncorporating ITC&A Transformational to the Business Processes
2010 2012 2016NNM, PDA-F2, CHS, MMH, otros
OE5: Integrate systems and processes for making decisions, focusing on the existing and short-term
OE6: Automated, robotic and incorporate telework in production processes
OE7: Manage the necessary changes to existing working practices as a result of the incorporation of technology and upgrade the knowledge and skills of ITC&A people
MMH
Copyrights © 2011 CODELCO-CHILE.. Todos los Derechos Reservados.Copyrights © 2011 by CODELCO-CHILE. All Rights Reserved.
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Cross ITC&A Programs
TICA -> AN ENABLER FOR THE PROPOSED CODELCO TRANSFORMATION TICA -> AN ENABLER FOR THE PROPOSED CODELCO TRANSFORMATION
Integrated Management for real-time decisions
Planning and Knowledge Management
Equipment Teleoperationand Robotization
Operational Process Automation
Logistics for the Input & Output
Human Development ITC&A Program Associate
Integrated Maintenance Management (Symptomatic / Preventive / Corrective)
Energy Efficiency and effectiveness in the use of natural resources
Fase IConsolidation and profitability of TICA in Business Fase II
Incorporating ITC&A Transformational to the Business Processes
2010 2012 2016
STRATEGIC ALLIANCES FOR DIGITAL CODELCO
CODELCO DIGITAL
19Copyrights © 2011 CODELCO-CHILE. Todos los Derechos Reservados.Copyrights © 2011 by CODELCO-CHILE. All Rights Reserved.
Creation of technology-based companies with scientific and technical capacity
The Working Model: We need partnerships that generate technology for the Future of Mining from Chile
CODELCO DIGITAL
THE FUTURE VISION
CODELCO DIGITAL
21Copyrights © 2011 CODELCO-CHILE. Todos los Derechos Reservados.Copyrights © 2011 by CODELCO-CHILE. All Rights Reserved.
"The first step has already been made " - in the way of mine automation and control processes in real time
LEV
EL O
F A
UTO
MA
TIO
N INTELLIGENT MININGINTELLIGENT MINING
REAL-TIME MININGREAL-TIME MINING
BASE MININGBASE MINING
Oral Communication Network Highly mechanized equipment Some automated processes
Computer in the mining process
Partial Information Network Automated Processes Locator System Automatic Controlled Machine - Remote
Wide Information Network Mining All autonomous machines Nonhuman Production & Processes Remote Production
TIME
5 years5 years
10 years10 years
Trends
22Copyrights © 2011 CODELCO-CHILE. Todos los Derechos Reservados.Copyrights © 2011 by CODELCO-CHILE. All Rights Reserved.
Towards a continuous mining
Future Vision
Transportation
Concentration ProcessSmelter Process
Energy
Quality Control
Environmental
Management
23Copyrights © 2011 CODELCO-CHILE. Todos los Derechos Reservados.Copyrights © 2011 by CODELCO-CHILE. All Rights Reserved.
CHUQUICAMATACHUQUICAMATAsitesite
ANDINAANDINAsitesite
EL TENIENTEEL TENIENTEsitesite
WAN CODELCO
Monitoring/Support/Control Centers
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24
The future is inventing with and for the People
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Desired Future Position of ITC&A Aligned to Business
Fase I Consolidation & profitability of ITC&A in the Business
• Efficiency in the use of ITC&A
• Update competences.
• Proper integration of information system.
• Supported technology:
• Integrated Operation Centers.
• Robotics and autonomous equipment in relevant processes.
• Assisted by remote processes.
• Resource management.
• An organization that has internalized work practices in line with higher levels of incorporation of ITC&A.
2010 2012
CODELCO DIGITAL
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Desired Future Position of ITC&A Aligned to Business
Fase II The impact of new ITC&A in the evolution of the business process
2016
• Automated & remote operations, robotics.
• Real time collaborative decision making system.
• Use of standard technologies.
• Update working practices and competences.
2010
Transport
Concentration
Process
Smelter
ProcessEnergy
Quality Control
EnvironmentalManagement
Remote
Operation
CODELCO DIGITAL
27Copyrights © 2011 CODELCO-CHILE. Todos los Derechos Reservados.Copyrights © 2011 by CODELCO-CHILE. All Rights Reserved.
Thanks …