Can you provide an update on SCM Minera Lumina Copper Chile’s (MLCC) operations in 2023?

Lundin Mining acquired 51% of MLCC. After the closure of the agreement, which is now under the review of the Chilean anti-trust authority, we will be controlled by Lundin. We are waiting for the approval to start the integration process, but we are already planning that integration process with representatives of Lundin and JX in contact. The integration should take approximately three months, and then we will be working on synergies between Caserones and Candelaria mines and optimizing our processes incorporating the experience of Lundin Mining.

How has the Caserones mine reduced its carbon footprint?

In 2021, we signed a PPA with Enel to ensure that all our energy comes from renewable sources. In addition, we are currently conducting a study with a Swiss company, RTZ, in which we are determining if switching from diesel-powered to electric trucks in the mine is feasible. That preliminary study will end in July 2023, and we will move forward from there.

Additionally, we received a recommendation for certification of ISO 50,0001, aligned with the energy efficiency law. We also recently added four electric buses for internal transportation, and we expect to add two more electric buses for transportation between the airport and the site.

Can you describe MLCC’s approach to water management?

Water has always been one of the most critical issues for Caserones, as we are located in the Atacama desert where water is scarce, and in an area with significant agricultural activity due to vineyards. Therefore, we must prevent any water contamination. We are lucky that our mineral has excellent characteristics from the rheological point of view, allowing us to design our tailings deposits in a way that separates course and fine fractions. These characteristics mean that the fine fraction settle and retain very little water, while the coarse fraction drains well, allowing us to obtain high water recovery rates. We use our water very efficiently. We have a hovercraft that moves on top of the tailings, allowing us to reduce the tailings ponds and evaporation. This is critical for us because our main bottleneck in terms of production today is water availability.

The future of water in the industry is 100% desalinated.

What is your perspective on the regulatory landscape?

The mining industry is operating under higher standards in Chile and globally. The ICMM, for example, is promoting a series of policies and compliance criteria. The most well-known one is the GISTM for tailings. We intend to achieve that standard this year. It requires significant effort, not only financially but also in establishing criteria for handling emergencies.

There are higher standards in terms of transparency. For example, all the information we collect about water quality is available on our website, and anyone can look and see the current state of the water.

How does MLCC incorporate digital technologies?

Caserones already utilizes many technologies oriented towards optimized operations, and we will continue investing heavily in that over the next several years.

When incorporating new technology, decisions must be made carefully. New machinery comes with risks, not just of making mistakes but also cybersecurity risks and training challenges.

What is your strategy for the coming year?

Our priority is always safety, and we will continue focusing on maintaining our good record of preventing any serious injuries. Second, we aim to achieve our production targets. We were low in the first three months, but we have plans to catch up and expect that by December, we will be aligned with our expectations of 150,000 t/y of copper. We are above targets in molybdenum production, which was excellent news because prices were very high for molybdenum in Q1 2023. In terms of development, we will complete our stabilization process and achieve design capacity.

The other significant activity will be the integration process, which will bring many opportunities to optimize synergies and exchange best practices. One of the considerable advantages of this transaction is that we can integrate and learn from other mines that Lundin has, and from our site, we can provide our own know-how to them.