OHL Industrial

OHL wins USD 91.2 Million EPC and O&M Contracts from Codelco

12/06/2012 | Editor: Marcel Dröttboom

OHL Industrial has won a contract from Codelco for the development of an integrated system for the grinding, transportation, acid curing and stacking of copper oxide at Codelco Division Ministro Hales (DMH).
OHL Industrial has won a contract from Codelco for the development of an integrated system for the grinding, transportation, acid curing and stacking of copper oxide at Codelco Division Ministro Hales (DMH). (Picture: Codelco)

OHL Industrial has been awarded its first contract in Chile from Codelco. The USD 91.2 million contract covers the development of an integrated system for grinding, transportation, acid curing and stacking of copper oxide at Codelco División Ministro Hales (DMH).

Madrid, Spain – The contract includes an engineering, procurement and construction (EPC) contract valued at USD 47.7 million, for the turnkey installation of Sandvik-based grinding systems, and transportation and stockpiling systems using Sthim technology (an OHL Industrial subsidiary), including a 0.7 kilometre. long overland belt conveyor.

Furthermore, the contract also includes the system’s operation and maintenance (O&M) over 36 months, for a total of USD 43.5 million. During this time, OHL Industrial Chile will process 22 million tonnes of oxide extracted by DMH, in northern Chile, close to the town of Calama and the Chuquicamata mine, which is the world’s largest copper field.

OHL Industrial’s Solids Management division is currently focusing its strategy on the mining and cement sectors and this important contract comes in addition to other turnkey or EPC projects procured by the company in Peru and Mexico. In the first of these two countries, it has been awarded a contract together with Sociedad Minera El Brocal for an overland conveyer system measuring 5.5 kilometres, with a budget of USD 18.5 million, to be installed at an altitude of more than 4200 metres in the Andes mountain range. In Mexico, it will execute a project for the cement company Cruz Azul involving a system for the grinding, stacking and transportation of limestone, worth USD 15 million.

With a total investment of USD 2.3 billion – Codelco’s largest ever – and involving a world class deposit containing raw materials in excess of 1.3 billion tonnes with an average copper content of 0.96 percent, from 2013 División Ministro Hales will generate an average annual production of 163,000 metric tonnes of refined copper and 264 tonnes of silver. The investment phase of the project began in September 2010 and will be brought to a close within 36 months, to give way to the next stage, its operational start-up.

Although 14-year strip mining is expected, the business model applied by the Ministro Hales Division includes an estimated useful life exceeding 50 years if, after this period, underground mining is performed.

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