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06/11/2012

OHL Industrial achieves an important contract in Chile for 91.2 million USD

In Chile, OHL Industrial has been awarded the most relevant contract obtained by its Solid Management Division until now, both in terms of amount and type of project, and in terms of country and awardee company.

The contract relates to Chile's important mining sector, for a total of 91.2 Million USD, awarded by the public company Corporación Nacional del Cobre (usually referred to as Codelco), the world's leading copper producer.

The project consists of developing a comprehensive grinding, transportation, acid treatment and copper oxide piling system in Codelco División Ministro Hales (DMH). It includes an EPC (Engineering, Procurement and Construction) contract valued at 47.7 Million USD, for the turnkey installation of Sandvik-based grinding systems, and transportation and piling systems using Sthim technology (an OHL Industrial subsidiary), including a 0.7-km. long overland carrier.

Furthermore, the contract also includes the system's operation and maintenance (O&M) over 36 months, for a total of 43.5 Million USD. During this time, OHL Industrial Chile will process 22 million tons 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.

Solid Management Division of OHL Industrial


OHL Industrial's Solid Management Division is currently focusing its strategy on the mining and cement sectors. In this large-scale contract it is joining other important turnkey or EPC projects awarded in Peru and Mexico. In Peru, it has entered into a contract with Sociedad Minera El Brocal for a 5.5-km. long overland carrier system, with a budget of 18.5 Million USD, which will be installed more than 4,200 high along the Andes. In Mexico, it is executing a limestone grinding, piling and transportation system for 15 Million USD.

In addition to these projects, and also under an EPC contract system, it is developing in Spain two ash transportation installations for Endesa: one in Carboneras (Almería) and another in Compostilla (León). Furthermore, as regards the supply of transportation equipment, it is developing projects in Morocco, Jordan, Brazil, Ivory Coast, Guinea, Cameroon, Tunisia and France.

Ministro Hales Division (Codelco)


In September 2010, Codelco created the Ministro Hales Division; its field is currently at a pre-stripping stage. In this context and amongst other interesting project matters, part of the leachable resources will represent a profit.

The field is located five kilometers north of the town of Calama, in the Second Region of Antofagasta.


With a total investment of 2,300 Million USD- the largest in Codelco's history- and a world-ranking field, with deposits exceeding 1,300 million tons and an average grade of 0.96% copper, the Ministro Hales Division will start contributing in 2013 an annual average production of 163,000 metric tons of fine copper and 264 tons of silver. In September 2010 the project began its investment execution stage, to be completed in 36 months, in order to embark on the next commissioning stage.


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. The relevant studies will be conducted in due course.


This structural project will allow Codelco to maintain its production levels in the medium term and to improve its value and competitiveness through mineral exploitation and processing.