Business opportunities in relation to the use of sea water by the Mining Industry in Chile

Recent studies published by Chiles Mining Council and the Ministry of Mines demonstrate that the cost of
sea water is U.S. $ 5.1 per cubic meter (m3), versus $ 1.6 / m3 for fresh water. Despite the higher cost,
miners are opting towards the use of sea water because of the scarcity of this resource in northern Chile
where most of mining operations are located. According to the Ministry of Mines, if scheduled investments
take place, companies will invest as much as U.S. $ 10 billion by 2022 to source sea water (desalinated
and non-desalinated) for their operations.

Currently, the Mining industry consumes approximately 12 m3/sec. According to figures compiled by the
Ministry of Mines of this total, 1.2 m3 / s consists of desalinated water and 0.9 to 1.6 m3 / s of seawater,
totaling an amount between 2.1 and 2, 8 m3 / s from ocean source. Looking towards 2022, if all projects
materialize, mining will require an additional 10.4 to 10.9 m3 / s of desalinated water and 3.5 m3 / s of sea
water (pumping up sea water to their operations, mostly high altitude in the Andes). In short, in ten years
the mining industry we will raise its total water consumption by about 35%, totaling approximately 17
m3/sec.

As outlined in the following table, 16 seawater initiatives totaling at least U.S. $ 10 billion in investment
are in the pipeline.
Region Plant name Company
www
Mine Stage of
plant
Flow
desalinated
water l/s
Flow
seawater
pumping
Estimated
Cost
US$
II
Coloso BHP Biliton

Escondida In operation 525 0
II
Coloso II BHP Biliton Escondida Permit
approved in
2009
3200 0 $3.5B
III
Abastecimiento de
agua Mantoverde
Anglo American Mantoverde In
construction
120 0 $62M
III
Planta
Desalinizadora
Minera Candelera
Freeport
McMoRan
Candelara and
Ojos del Salado
In operation 500 0
II
Planta
Desalinizacin RT
Sulfuros
Codelco Radomiro
Tomic
Sulfuros Phase
II
In study
(2017)
1630 0 $1.2B
III
Planta Desaladora Goldcorp El Morro Permit
pending
(2015)
640-740 0 $900M
III
Planta Desaladora
Santo Domingo
SCM Santo
Domingo
Proyecto Santo
Domingo
Feasibility
study
(2016)
260-290 400
I
Planta Desaladora
Quebrada Blanca
Fase II
Teck Quebrada
Blanca Phase II
Feasibility
study
(2017)
1300 0



III
Planta Desaladora
Proyecto Relincho
Relincho Copper
(Teck)
Proyecto
Relincho
Feasibility
study
(2017)
700 0
II
Planta Desaladora
Michilla
Antofagasta
Minerals
Michilla In operation 75 23
II
Agua de mar
Esperanza
Antofagasta
Minerals
Esperanza In operation 50 780-1500
II
Agua de Mar
Cenizas Taltal
SLM Las Cenizas Las Cenizas
Taltal
In operation 9,3 12
II
Agua de Mar
Mantos de la Luna
Compaa Minera
Tocopilla
Mantos de la
luna
In operation 0 78
II
Agua de Mar Sierra KGHMI Sierra Gorda In 63 1315
Gorda construction
(2014)
II
Agua de Mar Lomas
Bayas III
Glencore-Xstrata Lomas Bayas III Pre
feasibility
(2017)
0 500
II
Agua de Mar
Encuentro Sulfuros
Antofagasta
Minerals
Encuentro
Sulfuros
Feasibility
(2021)
No info No info
II
Agua de Mar
Antucoya
Antofagasta
Minerals
Antucoya In
construction
(2014)
280 0
II
Planta
Desalinizadora El
Abra Mill
Freeport
McMoRan and
Codelco
El Abra Mill
(sulphurs)
Pre-
feasibility
(2017)
No info No info $4B
II
Planta
Desalinizadora para
Mediana Minera
RyQ Ingeniera Mediana
Minera
In study 1000 0
III
Planta
Desalinizadora for
mining, farming and
sanitary use
Aqualogy (Aguas
Barcelona)
various Study
reactivation
1000 0
III
Planta Desaladora
Cerro Negro Norte
Cerro Negro Norte CAP (Hierro) In
construction
200-600 0 $360M
II
Impulsin de agua
de mar
Algorta Norte Algorta (iodine) Permitting in
process
0 400 $30M

Total m3/s in
operation
1,1593 0,893-
1,613


Total m3/s
projects in
pipeline
10,393-
10,923
2,615

Total m3/s 11,6-12,1 3,5-4,2

The El Abra Mill/Freeport McMoRan spearheads projected investments (US$4 billion) followed by the
Coloso II plant/BHP Billiton (US$ 3,5 billion). Coldelco, the State owned copper company, will inject
approximately US$ 1.2 billion in a desalination plant for its Radomiro Tomic operation, the El Morro gold
mine/Goldcorp future desalination plant is estimated at US$ 900 million.
The closest to start operation, according to their announced dates, are Mantoverde/Anglo American and
Cerro Negro/CAP.
Opportunities may arise for Canadian engineering companies and desalination experts for those plants
scheduled at a later date. Some of these projects could also by supported by Export Development
Canada.

For more information contact:
Margot Edwards
Trade Commissioner
Canadian Embassy in Chile
margot.edwards@international.gc.ca