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Market Survey on Copper - Indian Bureau of Mines

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Ministro Alejandro Hales (formerly Mansa Mina)<br />

This is a major discovery that was made between Chuquicamata and Calama. It<br />

was initially estimated to have reserves <strong>of</strong> over 500 milli<strong>on</strong> t<strong>on</strong>nes grading over 1%<br />

copper but was found to be geologically complex and have a high arsenic c<strong>on</strong>tent and<br />

work was stopped <strong>on</strong> it for some years. Work resumed in 2000, as a result <strong>of</strong> the<br />

development <strong>of</strong> a process to treat high arsenic ores, the need for sulphide ore feed to<br />

the mill when Chuquicamata's mining goes underground and to test bioleaching<br />

technology. It is also possible that it may enable an expansi<strong>on</strong> <strong>of</strong> the sulphide mill's<br />

capacity.<br />

Polluti<strong>on</strong><br />

For many years Chuquicamata, particularly its smelter, was a byword for<br />

polluti<strong>on</strong> and the inhabitants <strong>of</strong> the Chuquicamata camp and Calama had serious<br />

amounts <strong>of</strong> arsenic in their blood. This has changed drastically. The camp at<br />

Chuquicamata has been closed and the inhabitants moved to Calama, away from the<br />

dust and general polluti<strong>on</strong> close to the mine.<br />

The <strong>of</strong>f gasses from the flash smelter, Teniente c<strong>on</strong>verter and Pierce-Smith<br />

c<strong>on</strong>verters have a high enough sulphur dioxide c<strong>on</strong>tent to allow sulphuric acid<br />

producti<strong>on</strong> in a single absorpti<strong>on</strong> sulphuric acid plant which has improved sulphur<br />

capture to 98%. The Corporati<strong>on</strong> also planned some years ago to reduce arsenic<br />

emissi<strong>on</strong>s by 97% but there have been no recent reports. Polluti<strong>on</strong> <strong>of</strong> the River Loa,<br />

which flows through Calama is a problem which is being addressed but little has been<br />

reported.<br />

3. Grasberg Open Pit, Ind<strong>on</strong>esia<br />

Located some 60 miles north <strong>of</strong> Timika, at Tembagapura in Irian Jaya – the<br />

most easterly <strong>of</strong> Ind<strong>on</strong>esia's provinces – <strong>on</strong> the western half <strong>of</strong> the island <strong>of</strong> New<br />

Guinea, the Grasberg mine has the world's single largest known gold reserve and the<br />

sec<strong>on</strong>d largest copper reserves.<br />

<strong>Copper</strong> is the primary commodity, with a proven and provable reserve <strong>of</strong> 2.8<br />

billi<strong>on</strong> t<strong>on</strong>nes <strong>of</strong> 1.09%. The reserve also c<strong>on</strong>tains 0.98g/t gold and 3.87g/t silver.<br />

Ownership bel<strong>on</strong>gs to Freeport McMoran <strong>Copper</strong> & Gold (67.3%), Rio Tinto<br />

(13%), Government <strong>of</strong> Ind<strong>on</strong>esia (9.3%) and PT Indocopper Investama Corporati<strong>on</strong><br />

(9.3%). Around 18,000 people work at the mine, which is operated by PT Freeport<br />

Ind<strong>on</strong>esia, a subsidiary <strong>of</strong> Freeport McMoran <strong>Copper</strong> & Gold.<br />

The mine stands at the collisi<strong>on</strong> <strong>of</strong> the Indo-Australian and the Pacific tect<strong>on</strong>ic<br />

plates. Two distinct phases <strong>of</strong> intrusi<strong>on</strong> have led to the producti<strong>on</strong> <strong>of</strong> nested coaxial<br />

porphyry ore bodies and sulphide rich skarn at the margins, while sedimentary strata<br />

includes Eocene clastic carb<strong>on</strong>ate limest<strong>on</strong>e with siltst<strong>on</strong>es and sandst<strong>on</strong>es near the<br />

base.<br />

175<br />

C<strong>on</strong>td…..

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