Brazil's Vale launches copper operations in Chile

Coquimbo, Agencias
Brazilian mining giant Vale began operations in Chile Thursday with the inauguration of a copper project in the north-central region of Coquimbo.

The Tres Valles project, which includes two mines and a processing plant with annual production capacity of 18,500 tons of copper cathodes, required investment of $140 million in the construction phase, the company said in a press release.

It also will serve as a launching pad for Vale's investments in Chile because all the revenue generated from the venture will be reinvested in mineral exploration in that country's Andean region.

"This marks the start of a fruitful relationship with one of the world's largest mining companies," Chilean Mining Minister Laurence Golborne said at Thursday's inauguration of the plant in the northern city of Salamanca, located 315 kilometers (about 200 miles) north of Santiago.

The project, which began in 2005 with exploration work that led to the discovery of the underground Papomono mine and the Don Gabriel open-pit deposit, will use cutting-edge, environmentally friendly technologies that enable reduced water consumption.

The plant will use a bioleaching system in its hydrometallurgical process, a technology developed in Chile to make copper soluble from some types of sulfate using bacteria, the press release said.

Vale's copper production in Chile will mainly be exported to markets in Brazil, North America and Asia.

The Tres Valles operation will be run by local employees as part of Vale's global policy of generating wealth and sustainable development in regions where it operates, the miner said in the release.

According to Vale, close to 1,800 direct and indirect jobs were created during construction of the plant, while another 560 jobs will be created during the operational phase.

Vale's head of metal operations, Tito Martins, said that along with environmental preservation and respect for the local community the company also is placing a high priority on worker safety.

"We want to be the largest and best miner and to do so we must protect people's safety and preserve the environment," Martins said.

Golborne said for his part that the mining sector is forecast to grow by close to 3 percent in 2010 and 4 percent in 2011.

He said the value of mineral exports, which represent close to 60 percent of Chile's total exports, will grow by 45 percent this year to $38 billion, while copper exports will total 5.56 million tons.

Vale, which is present in 38 countries, is the second-largest diversified mining company in terms of market capitalization; the world's largest producer of iron ore and pellets, key raw materials for the steel industry; and the second-largest producer of nickel.

The company said it also produces copper concentrate in the northern Brazilian state of Para, as well as anode and cathode copper concentrate associated with its nickel operations in Sudbury and Voisey Bay, Canada.