Mining in Chile Interregional IAEA-CYTED-UNECE Workshop on

UNFC 2009 Applications in Uranium and Thorium

Alberto Salas President & CEO

Chilean Mining Association Santiago, July 10th 2013

SUBJECTS

SONAMI represents the Chilean private mining

The Chilean Mining Association (SONAMI) Chilean Mining: Worldwide and National

Leadership Challenges & Opportunities

Represents large, medium and small-scale mining companies

SONAMI : Chilean Mining Association

SONAMI is a trade organization that brings together and represents large, medium and small-scale metallic and non-metallic mining companies. SONAMI was founded on September 26th, 1883 and since its inception, has made significant contributions to the development of private mining institutions and mining legislation.

SONAMI: Chilean Mining Association

Promote the development of private mining

Promote the development of private mining.

Be a referent in mining and represent our associates interests face to Chilean authorities.

Provide information and support services to our members in technical, legal, labor, environment, tax and economic aspects.

Represent Chilean private mining among international institutions (ICMM, SIM, IWCC, OLAMI-International).

We have worked to reach the following objectives:

SONAMI: Chilean Mining Association

Fundada hace 130 años, en septiembre de 1883

75 mining companies, large and medium-scale, and exploration companies.

38 mining associations, gathering more than 2.000 small mining companies

MINING COMPANIES

Large-scale mining (Chile)

MINING COMPANIES

Medium-scale mining (Chile)

SMALL MINING ASSOCIATIONS

2.000 SMALL MINERS

Chilean Mining

Worldwide and National Leadership

The Chilean Mining Association (SONAMI) Chilean Mining: Worldwide & National

Leadership Challenges & Opportunities

CHILE: A SMALL COUNTRY

However, in mining ….

We represent the 0,6% of the

world surface and 0,25% of

population and income

CHILE: LEADER IN MINING

World Production

Ranking

Product Production

Chile 2012

% of world

production

1° Copper 5.450 MTMF 32%

1° Natural nitrates 930 MTM 100%

1° Iodine 16.000 TM 58%

1° Lithium 70.000 TM 45%

1° Rhenium 27.000 TMF 52%

3° Molybdenum 35.000 TMF 15 %

The first world copper producer

WORLD COPPER RESERVES

We have the biggest copper reserves of the world

Chile 28,0% Australia 12,6% Perú 11,2% EEUU 5,7% México 5,6%

Fuente: U.S. Geological Survey, January 2013

MINING CONTRIBUTION GDP (%)

20.7 20.5

14.0 13.1 16.0 14.9 13.0

15,7%

0

5

10

15

20

25

2006 2007 2008 2009 2010 2011 2012

LEADER IN EXPORTS Average 2006-2012: 64,4 %

66 66.9 59.8 61.6 66.4 64.4 64.8

64,4%

0

10

20

30

40

50

60

70

80

2006 2007 2008 2009 2010 2011 2012

Source: SONAMI, based on Central Bank database.

MINING IN TOTAL FISCAL REVENUE

34.2 31.4

22.9

13.1

20.6

18.4 13.9

21,7%

0

10

20

30

40

2006 2007 2008 2009 2010 2011 2012

%

Source: SONAMI, based on DIPRES database.

MINING IN TOTAL FISCAL REVENUE 2006-2012 ( US$ millions)

70000

5400

41500

18900

4100 1300

Aporte Minería Presupuestos

OtrosDesarrollo SocialObras PúblicasSaludCongreso,PoderJudicial y Contraloría

330

520

280

160

Minería

Energía

Medio Ambiente

Secr. General dela Presidencia

Source: SONAMI, based on DIPRES database.

HIGHEST SALARIES (US$/month March 2013)

Source: Superintendencia de Pensiones

7061.0581.060

1.1381.250

1.9502.0062.344

1.116

AGRICULTURECOMMERCE

CONSTRUCTIONTRANSPORT

INDUSTRYFINANCE

ELECTRICITYMINING

COUNTRY

ACCIDENT RATE PER ECONOMIC ACTIVITITY (each 100 workers) 2009 - 2012

Tpte. Ind.(1) Agric. (2) Comer. Constr. Serv. Electr.(3) Minería Pais2009 7.7 7.4 7.2 5.7 5.7 3.8 3.6 2.2 5.32010 7.7 7.8 6.9 5.9 5.5 4.0 3.8 2.0 5.42011 7.9 7.8 6.8 6.2 5.8 4.0 4.1 1.8 5.52012 6.9 7.0 5.9 5.8 5.3 3.5 2.1 1.6 4.9

1.6

4.9

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

Mining: Lowest accident rate

In other words …

Mining is the most solid pillar that sustains economic and social development of Chile and is the most competitive industry available in the country.

2022: COPPER PRODUCTION WILL REACH 9.000.000 TONS

5,450,000 5,450,000

3,550,000

3,000,000

5,000,000

7,000,000

9,000,000

2012 2022

2022: GOLD PRDUCTION WILL REACH 150 TONS

2022: SILVER PRODUCTION WILL REACH 2.800 TONS

2022: IRON PRODUCTION WILL REACH 40.000.000 TONS

2022: LITHIUM PRODUCTION WILL REACH 110.000 TONS

2022: IODINE PRODUCTION WILL REACH 25.000 TONS

2022: POTASSIUM PRODUCTION WILL REACH 2.500.000 TONS

Origin Identified Resources (RAR + IR) (Ton U)

Surface Deposits 68.0

Metasomatic Deposits 1,762.8

Cenozoic Volcanic Deposits 100.0

Unconventional Deposits 1,798.0

Total

3,728.8

Identified Chilean resources (RAR + IR) are small, relative to identified resources worldwide. Is equivalent to only 0.07%.

Identified Resources of Uranium in Chile

Uranium Production in Chile

The nearest possibility of uranium production in Chile, is as a byproduct of copper mining.

In 2008 – 2009, CODELCO and CCHEN sign cooperation agreements for performing uranium extraction activities.

In 2011, CODELCO agreed a collaborative alliance with France, in connection with its strategy to ensure the future supply of uranium.

Radomiro Tomic facilities has a pilot plant to assess the feasibility of installing an industrial plant. The pilot plant produces uranium concentrate (yellow cake) from copper treatment leach solutions (15 to 20 ppm of uranium).

The pilot plant accumulated production (20 to 30 kilos of yellow cake) has been available to the CCHEN.

Challenges & Opportunities

SONAMI represents the Chilean private mining

The Chilean Mining Association (SONAMI) Chilean Mining: Worldwide and National

Leadership Challenges & Opportunities

STRATEGIES CHALLENGES

Muchas Gracias...

The mining industry increasingly faces a complex scenario:

Social: increased participation of stakeholders;

Political: mining remains an important issue on the political agenda. Focus on benefits distribution and taxation.

Environment: increasingly stringent regulations.

Technical: declining ore grades.

Competitiveness (energy costs; labor costs, capex, etc.)

CHALLENGES TO MINING (CHILE)

Muchas Gracias...

Acceptance and industry recognition;

Water resources;

Energy;

Innovation and technology transfer;

Human Capital

Sociedad Nacional de Minería

Muchas Gracias...

Chile and its mining: a world of opportunities.

Thank you