Peru has long been a premier mining nation, with mining operations spanning the country producing vital copper, silver and zinc resources. For this reason, mining is a pillar of the Peruvian economy, with its mined metal products accounting for a significant portion of the country’s total exports and so a crucial aspect of the country’s total Gross Domestic Product (GDP). At present, there are multiple large-scale mining operations in Peru, one of which is the Antamina mine, which is one of the largest copper and zinc mines in the world. The mine delivers significant vital resources for Peru, and in the process, is focused on supporting the local community and delivering local economic growth.
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The Antamina Mine is located in the Andes Mountain Range of Peru and is around 4500 metres above sea level. The mine is a large, low-cost copper and zinc mine that commenced commercial production in 2001, producing molybdenum and silver as byproducts. The mine is one of the largest copper concentrate producers in Peru, and is the world’s second largest producer of zinc. In the production of molybdenum as a byproduct, Peru is now the world’s fourth largest producer of the metal, thanks to the Antamina mine. Thus, the Antamina Mine is a polymetallic skarn deposit, delivering a range of metals vital for Peru.
Operations at the Antamina Mine are carried out by Compañía Minera Antamina S.A., who are the independent operator of the mine. Compañía Minera Antamina S.A. is jointly owned by Teck Resources (22.55), BHP (33.75%), Glencore (33.75%) and Mitsubishi Corporation (10%). Collectively, these mining giants work to develop the Antamina Mine under Compañía Minera Antamina S.A, to establish it as a key producer of high-quality concentrates, underpinned by the company’s focus on supporting the local community in which the mine operates. Compañía Minera Antamina S.A.’s operations are split into three central committees, which help organise the operations of the mine, as well as the local development alongside this. These committees include the Business Planning and Strategy Committee, Finance Committee, and Audit Committee. Alongside these committees is the Advisory Committee, which is made up of representatives from all four shareholders, and is designed to help oversee the identification and management of Antamina’s economic, environmental and social performance.
Mining is carried out using open-pit, truck and shovel techniques. Once ore is mined, it is crushed in-pit and then conveyed to a stockpile mill via a 2.7 kilometre (km) tunnel. The mill is then responsible for separating the copper, zinc, molybdenum and lead-bismuth concentrates (containing silver), before they are pumped through a 302km pipeline to the Huarmey Port for shipment to smelters. In terms of production capacity, the mine is ranked among the top 10 worldwide for production, delivering a diversified mineral portfolio producing copper, zinc, molybdenum and silver. This multi-metal delivery is vital to the Antamina mine as it gives it a distinct advantage in multiple markets, creating multiple lines of revenue from a single mining operation. This brings steady and reliable economic development for Peru, which, in the process, supports the local community.
However, with the demand for copper globally increasing, the mine has been undergoing a vital expansion project to increase its copper production. The current expansion of the mine is part of a $2 billion project designed to expand the open pit of the mine, whilst also implementing measures to optimise the mine’s dumps and tailings dam. These expansions and developments hope to increase copper production as much as 20%, increasing the mine’s total copper production to 450,000 tonnes by 2026. Then, once in full operation, the capacity is expected to stabilise around 400,000 tonnes annually, delivering significant copper resources from the mine for Peru.
As the mine’s production continues to expand, vital investments into its operations have been undertaken. In January, we saw the introduction of a new piece of equipment for the mine: a Komatsu P&H 4800XPC electric shovel. The electric shovel is the largest of its kind in the world, and one of the most advanced electric shovels globally. The shovel has a lifting capacity of up to 135 tons per pass, which is a 30-35% increase compared to the current shovel operations at the mine. Thus, the new Komatsu P&H 4800XPC will significantly strengthen the mine’s production capacity, whilst being fitted with an advanced system for enhanced safety during operation. The introduction of the shovel is a key milestone for Antamina on the global stage, as the mine is the first and only mine in the country to operate with this world-class piece of equipment.
Reflecting on the introduction of the Komatsu P&H 4800XPC electric shovel, Carlos Cotera, Vice President of Operations at Compañía Minera Antamina S.A., outlined, “The commissioning of the world’s largest shovel is a milestone for Antamina and for the country’s mining industry. This advancement reflects our commitment to innovation and safety, and reaffirms our vision of operations with world-class standards”. Cotera’s comments here highlight the vital development and investment that Compañía Minera Antamina S.A, are making into the mine in order to support the production of the Antamina Mine, and in the process support Peru’s economy through its mining operations. In fact, the delivery of the shovel is part of a progressive rollout of advanced equipment to the mine over the coming years to increase safety and meet the needs of large-scale mining at the Antamina Mine.
As we have discussed, every aspect of the Antamina Mine has been delivered with the local community in mind, and so across Antamina’s operations, the well-being and improvement of the quality of life of its neighbours and communities remain paramount. Thus, the Antamina Mine works closely with local communities and civil society organisations, as well as local and central government, to achieve sustainable development in Peru. These operations are designed to extend beyond the end of the mine’s life. Currently, Compañía Minera Antamina S.A work across territorial management units, which help identify the needs of the local population, and then they can channel them to the relevant departments within the company for projects to be developed.
One current vital community development program is in education, where Antamina has built and renovated educational facilities. Alongside this, Antamina has provided training programs to teachers designed to improve the quality and innovation of education in the local community. Plus, Antamina actually provides opportunities for students to pursue university and technical studies through scholarships, which help students develop skills to improve employability. Thus, all operations of Compañía Minera Antamina S.A, and the Antamina Mine are constantly working to give back to the local economy not just through economic growth from the mine’s resources, but through vital programs such as education, to support health, community and local development.
Overall, the Antamina Mine is a vital mining development for Peru that delivers a plethora of vital metal resources, including copper, zinc, molybdenum and silver, which are utilised across industries all over the world. With such a diverse metal offering, the Antamina mine is vital for the Peruvian economy and supports the country’s export growth. However, throughout all of these operations, the Antamina Mine’s complex is focused on supporting the local economy through programs and infrastructure developments to ensure that the benefits of the mine extend long beyond the end of the mine’s life.
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