Delivering the Antapaccay Project Delivering the Antapaccay Project

Max Combes - Project Director4 October 20124 October 2012

Antapaccay project

• Project overview and status

Agenda

• Safety indicators

• Local employment

L l t t & it i t t• Local contracts & community investment

• Project layout

• Project costsj

• Project schedule

• Project metrics

• Project photos

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Antapaccay project overview and statusConcentrate production to start in October

Description• Location: Cusco Region (12km from Tintaya)

Copper in resource5• Location: Cusco Region (12km from Tintaya)

• Elevation: 4,200 metres • Ownership: 100%• Mineral Resource: 1,030Mt @ 0.49% Cu

Mt Cu

2

3

4

5

• Concentrator: 70ktpd, 1 grinding line

• Production: 160ktpa Cu for first five years, average over LOM 143ktpa Cu

0

1

2

2008 2009 2010 2012M d I di t d I f d• Approved capital cost: $1.47 billion

• LOM: 22 years

• First of the Standard Concentrator applications under Xstrata Bechtel Alliance

Measured Indicated Inferred

applications under Xstrata - Bechtel Alliance.

Project Status (as of Sept 28, 2012)

• Construction: 96%

• In Commissioning• In Commissioning

• Overall Project Progress: 94%

Safety Indicators

0,610

Lost Time Injury Performance (LTIFR)

0,48

0,39

0,320,27 0,3

0,4

0,5

56789

LTIF

R

LTI

0 0 0

0,22 0,190,17 0,14

0,12 0,11 0,10 0,09

0 0 0 00,06 0,06 0,06 0,06

0,12

0

0,1

0,2

01234

sep 10 nov 10 ene 11 mar 11 may 11 jul 11 sep 11 nov 11 ene 12 mar 12 may 12 jul 12 sep 12

L

1

Measures taken to minimize safety risks:• Specific induction developed for the Project b h l d

Statistics:

• 16,400 people inducted to the project to date

sep-10 nov-10 ene-11 mar-11 may-11 jul-11 sep-11 nov-11 ene-12 mar-12 may-12 jul-12 sep-12

Contractor LTIFR 12mma

between Bechtel and Xstrata• Experienced Safety personnel • Risk Analysis; Safety Talks; Regular inspections; Contractor audits

• Extensive Safety Observation Program

p p p j

• 350,000 training hours on safety related subjects

• Total project hours to date 26 million.

• The project completed a record period of • Extensive Safety Observation Program• Special attention to Task Analysis and Change Management

• The project completed a record period of 14,000,000 work hours between Dec 2010 and April 2012.

Local Employment Program as a project success factorDeveloping human capacity

Local Employment (Cumulative)• Strong focus on local employment

to maintain social license• During construction peak, 30% of

manual workers belonged to the 1200

1400

1600

communities exceeding the EIA target of 20%

• Local workers are trained and hold necessary skills800

1000

1200

y• 390 local workers have approved

training programs and were promoted to a higher skilled position

400

600

position• Over 1,800 local people have been

employed during the life of the project

0

200

Bechtel-Current Xstrata-Current Total

Local contracts and community investmentSupporting local businesses

• The project has spent over $10M to date in the surrounding communities on Goods in the surrounding communities on Goods and Services

• At least 10 local contractors provided services to the projectC l k h l h l• Currently taking over Bechtel punch list using local contractors

• Main contracts included:– Site fencing services

Overland Conveyor sleepers fabrication– Camp refurbishment

– Water truck rental

– Architectural jobs

Overland Conveyor sleepers fabrication

j

– Office refurbishment

– Conveyor sleeper fabrication

– Miscellaneous buildings– Miscellaneous buildings

Alto Huarca Water Truck hired to the project

Tailings Deposit - Tintaya open pit

Tailing Thickeners

Construction Camp

Concentrator Plant

Truckshop

Overland Conveyor

Primary Crusher

Project costs in line with budgetCost savings offset inflationary pressures

• Definitive estimate completed in March 2011 confirming $1 473M total cost2011 confirming $1,473M total cost

• Project currently on budget

• Xstrata initiatives have saved the project over $60M, offsetting cost inflation and other costs that put pressure on the approved budget.

− Earthworks done by Owner

Water system redesign Primary crusher completed− Water system redesign

− Purchase order renegotiations

− Reduction of small tools rates

− Redesign of truck shop earthworks

Primary crusher completed

− Redesign of truck shop earthworks

− Piping and electrical works done by Owner

− Travel cost reductions

Overland conveyor completed

Project currently in commissioning stageFirst concentrate production on track for October 2012First concentrate production on track for October 2012

Ac t ivity 2H09 1H10 2H10 1H11 2H11 1H12 2H12 1H13 Engineering Engineering

Interim EngineeringDetailed Engineering

Proc urement / Contrac tsMills & CrusherOther EquipmentStructural Steel

Cons truc t ion (*)Site EstablishmentMassive EarthworksMassive EarthworksProcess Plant

Produc t ionPre-StrippingCommissioning / Ramp-Up

Project Progress Planned Value Earned ValueEngineering 100% 100%Procurement & Contracts 100% 100%

g p pFull Production

Procurement & Contracts 100% 100%

Construction 100% 96%

Total (weighted) 99% 94%

Antapaccay Project MetricsLarge scale project delivered on time and budget

Major Bulk Quantities UoM Quantity

Massive Earthworks m³ 3,200,000

Structural Earthworks m³ 1,400,000

Concrete m³ 118,000Concrete m 118,000

Steel Mt 12,180

Piping m 123,887

k hCable & Wire m 1,506,200

Instruments No 1,930

Mechanical Bulks Mt 1,831

Truck shop

Estimated job manhours 28 million

Manhours to date 26 million

Truck shop

Personnel at peak 4,700

Current personnel 3,700

Grinding Area

• Commissioning Stage

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Ball mill #2Cyclone clusters SAG mill

Other Areas

Overland conveyor

12Tailings ThickenersRegrinding area Flotation area

Q ti ?Questions?