Hidden away beneath the dry earth of Chile’s Atacama Desert, there is treasure waiting to be found by those with the know-how and dogged determination to find it. Situated within the Andes and the eastern portion of the Ring of Fire—a geological fault line encircling the Pacific Ocean that contains large and varied deposits of all kinds—the Atacama is as renowned for its mineral wealth as for the breathtaking natural beauty of its foothills, deep canyons, and salt flats.
Rich as it is with gold, silver, iron, lithium, and most notably, copper, the province has drawn a lot of investment interest from the big beasts of the mining world, amongst them the Swiss mining giant, Glencore – owner of the Collahuasi and Compañía Minera Lomas Bayas projects.
Located in the Cristobal mountains, 120km northeast of Antofagasta, the Lomas Bayas site is one of a number of world-class copper projects that are to be found in Chile’s stark and splendid northern wilderness. Comprised of the primary mine site, Lomas Bayas I, and the adjacent Fortuna de Cobre open pit, known as Lomas II, which lies 3km from the original mine and infrastructure, the project’s operations are expansive if not vast, producing approximately 75,000 tons of copper per annum and employing up to 460 people at peak production.
The presence of deposits such as that of Lomas Bayas in a copper-porphyry rich environment like the Atacama is to be expected; however, certain geological quirks have combined to create an orebody that is somewhat out of the ordinary:
“Lomas Bayas’ copper reserves are hosted by upper Cretaceous volcanic-arc rocks and associated back-arc sediments, which are intruded by an upper Cretaceous-Paleocene composite granodiorite batholith – a geological cocktail which has created an orebody that is oxidized with zones of mixed oxide-sulphide, resulting in copper mineralization that occurs in an irregular concentric zone around a low-grade centre.”
Due to this, Lomas Bayas I proven reserves totaled 72.7mt grading 0.36% copper and 0.21% soluble copper, whilst measured resources added up to 98mt at 0.22% copper and 0.15% soluble copper. Inferred resources were 2.6mt at 0.23% copper and 0.12% soluble copper. At Lomas II, there is a proven reserve base of 256mt at 0.3% copper and 0.22% soluble copper, with measured resources standing at 273mt at 0.31% copper and 0.22% soluble copper.
Owing to the area’s unique geology, Lomas Bayas holds the curious distinction of being one of the world’s lowest grade mining operations – certainly below the 0.62% global average copper ore grade.
Such low-grade deposits might at first glance appear less profitable and undesirable, but this is a misconception; projects such as Lomas Bayas are hugely important sources of copper in a world where mines with higher ore grades are becoming exhausted and demand for copper is outstripping supply.
Copper has long been a vital metal that man has harnessed since prehistory, and it continues to be an indispensable ingredient of the global economy, today. As an example of the importance of the copper value chain to the modern world, consider this: one ton of copper can be used to manufacture 40 cars, build 400 computers, power 60,000 mobile phones or supply electricity to 30 homes. No matter where we are or what we do, copper materials are all around us to the extent it helps form the backbone of the modern world, and our reliance on it is set to grow substantially as the world increasingly transitions to a new EV and renewables-centric green economy.
Against this backdrop of rising demand, falling copper production – a dilemma made worse by the COVID-19 outbreak – is threatening to create a significant copper supply gap by the mid-2020s of up to 5.9 million mt. Granted, new projects are already being developed to plug the hole, but it is clear to the smart miners that copper prices are set to soar in the short to medium-term – for Glencore, regardless of its grade, ownership of Lomas Bayas means the company is sitting on top of a metaphorical gold mine.
Naturally, the strategic value of Lomas Bayas means that Glencore is continuing to invest in new technologies and equipment at the site, in line with its objectives to reduce operational costs and increase productivity, as well as expand further on safety and sustainability schemes.
As such, Lomas Bayas’ leadership team recently implemented its new Ultra Class Project; an initiative centred around updating the mine’s loading and transportation process through the acquisition of a new fleet of Komatsu 930E-5 304T class haul trucks, which are set to be used alongside its existing Komatsu P&H 4100XPC shovels.
Following the delivery of the first two new high-tonnage trucks, numbers 58 and 59 in the fleet, which arrived at the mine in 2020, a further 25 trucks are due to arrive onsite by the end of 2021:
“The arrival of this new fleet implies a profound change in the safety and productivity of the operation. Going from small-scale equipment to about KMS 930E-5, which has a nominal capacity of 304 t, is a challenge and an excellent opportunity for Lomas Bayas and Glencore,” explains Marcelo Zuniga, Mine Operations Superintendent at Lomas Bayas, who points out that the goal of 262,000 t/d movement is being achieved through good mining practices on the part of all Lomas Bayas operators.
Measuring 9.6 m wide from mirror to mirror, the truck’s greater size than those currently in use is projected to have a transformative effect on the site’s transport and loading capability. Already, site upgrades, such as new 38 m wide ramps, have been made to accommodate the larger dimensions and characteristics of this new equipment, ensuring that the new trucks can be deployed seamlessly.
Zuniga further comments on the impact the new fleet will have at Lomas Bayas, stating: “The integration and change of the transport fleet intrinsically brings a different way of mining in Compañía Minera Lomas Bayas. The arrival of the 930E-5 trucks has started an operational transformation, which includes Komatsu 4100 shovels, with 77 cubic yard buckets and trucks with the capacity to transport up to 313 t on average.”
How have we prepared for this challenge? The process begins with training oriented in good practices and operational standards according to the new technologies that these teams bring. Our goal is to work based on the sustainability of the business, always prioritising safety and also productivity. With this innovation, we will undoubtedly contribute to better performance, to the fulfilment of the goals set at the Mine Operations level, of our company, and of all of Glencore.