Sustainability Report - Antofagasta PLC

What is the issue?
Energy
Energy consumption is increasing in
Chile by around 7% annually and
production is struggling to meet this
growing demand. The energy-intensive
mining sector accounts for
approximately 50% of the country’s
total energy consumption. The amount
of energy used to extract a tonne of
copper will rise as older operations
typically produce lower grade ore and
the ore will tend be in less accessible
areas. Rising energy needs, reliability of
supplies of fossil fuels, decreasing
precipitation affecting hydropower
projects and climate change legislation
keep energy security and energy
efficiency high on the Group’s agenda.
Chile’s energy system is divided into
two regional grids with distinct energy
compositions. The SING grid supplies
the north, including the Atacama desert
where three of the Group’s mining
operations are located. It is powered
mostly by imported coal and natural
gas. Its emission factor is double that of
the SIC grid, powered mainly by
hydropower, which supplies the centre
and south of Chile where our biggest
operation, Los Pelambres, is located.
In 2011 Antofagasta Minerals undertook a study to
understand the potential effects of climate change on the
business and identify future energy needs and potential CO 2
emissions. We identified a baseline for greenhouse gas
(GHG) emissions from 2011 and projected future emissions
up to 2020. According to the study, we can expect our
greenhouse gas emissions to increase by 3% from 2012 to
2017 as the grade of mineral ore that we extract decreases.
The study enabled us to identify and analyse plans to
mitigate our climate change impact and we are developing
‘Climate Change Guidelines’ for the division. These will help
us manage the risks and realise the opportunities related to
climate change.
Energy efficiency and alternative
sources
In 2011 energy consumption increased compared to 2010,
due to increased production at Los Pelambres following the
completion of the mine expansion in 2010. Energy
consumption also increased with Esperanza’s first full year
of operation. Decreasing ore grade, which requires more
energy to extract, was also a factor at some mines.
Reducing energy consumption is a challenge as ore grades
decrease and we respond to this challenge by striving for
maximum efficiency and finding alternative energy sources.
We monitor energy efficiency in terms of energy intensity,
which we measure as kilowatt hours per tonne of fine
copper produced.
KWh per tonne of fine copper produced
Los Pelambres
Esperanza
El Tesoro
Michilla
n/a: not applicable.
2011
3,270
7,151
3,015
3,634
2010
3,124
n/a
2,993
3,664
2009
3,048
n/a
2,775
3,659
Antofagasta Minerals 51
Overview
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