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CODELCO: CORPORACIÓN NACIONAL DEL COBRE DE CHILE By: Maddy Betlach, Grace Owens, Alex Cantarera, Lisa Volpatti, Abby Stein.

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Presentation on theme: "CODELCO: CORPORACIÓN NACIONAL DEL COBRE DE CHILE By: Maddy Betlach, Grace Owens, Alex Cantarera, Lisa Volpatti, Abby Stein."— Presentation transcript:

1 CODELCO: CORPORACIÓN NACIONAL DEL COBRE DE CHILE By: Maddy Betlach, Grace Owens, Alex Cantarera, Lisa Volpatti, Abby Stein

2 Chilean Culture Music Folklore to modern to classical Cuisine Assortment of seafood, beef, fruits, and vegetables Sports Soccer Tennis

3 Industry Analysis: Overview Governmentally-owned copper company Formalized in 1976 President – Minister of Mining Board of Directors (7 members) – elected by President Headquartered in Santiago Five primary divisions: Codelco Norte, Salvador, Andina, Ventanas, and El Teniente Largest copper producing company in the world

4 Ventanas Division - smelter Transferred from ENAMI in May 2005 Products: cathode copper; gold, silver, and selenium from anode slime left over Industry: Copper, lead, and zinc refining Major competitors: Freeport-McMoRan Copper & Gold Inc., Rio Tinto Plc, Grupo Mexico S.A., BHP Billiton, Xstrata Plc

5 Ventanas, Cont. Challenges: Revenue growth volatile from year to year (due to supply and demand uncertainty), dependence on natural resource Opportunities: High barriers to entry – start-up costs, many established companies dominate market, dependence on natural resource Interest to Engineering – actual copper smelting process, copper use in other industries (construction, electrical, etc.) Interest to Business – Effects of nationalization of copper/being governmentally owned; truly global competition

6 Social and Political Impact Hires over 18,000 people Government owned Nationalized under Salvador Allende Interference during a crisis 10% tax on foreign currency sales Receives all excess spending Peoples Reform Benefits for minimum wage Strong government control remained

7 Environmental Impact Pollution Chuquicamata arsenic River Loa Initiatives to reduce arsenic emissions by 97% Ventanas Division in 2007 375,000 metric tons of copper 141,000 kilograms of silver 3500 kilograms of gold 329,000 tons of sulfuric acid Depletion

8 Copper Smelting Extract copper ore from Earth El Teniente Chuquicamata Transportation Leach heaps Crushing mills

9 Copper Smelting Oxide minerals Leaching Electrowinning Sulfide minerals Crushing Froth flotation Smelting Electrorefining

10 Products Shipped to Customers Shipped 1.94 million tons of copper in 2007 Products: refined copper cathodes (99.99% pure) copper concentrates blister or anode copper molybdenum anodic slime sulphuric acid How are products shipped? from major ports: - Chilean port of San Antonio

11 Environmental Factors Sustainable Development Policy of Codelco, 2003 Spent $733 million on environmental projects: Reduction of smelter emissions Improve efficiency of water and energy use Management of solid and liquid wastes Certified under the International Standard ISO-14001 in all its Divisions in 2003 Codelco Good neighbor program A green cover for Chañaral Teniente Voluntary Environmental Agreement The mission of Codelco is to develop in a responsible and agile way, all of its capacity for the mining and related businesses, in order to maximize its economic value and its contribution to the Chilean State in the long-term.

12 Safety Concerns Smelting Poisonous fumes and dust Excessive heat and noise Electrical hazards during electrolytic processes Open Pit Mining Blasting Fear of slopes caving in

13 Skills and Engineering Jobs Skills vary from hard manual labor to using engineering techniques to improve output. Most employees have no secondary education and control certain aspects of the smelter Engineers are predominantly used checking the reliability of the equipment and also the copper product itself.

14 Questions How long does the actual process of turning the copper ore into copper sheets take? Why is Codelco involved in the production of sulfuric acid as well as copper? Codelco is striving produce 50% of the Chilean copper exports, how will this be reached? What is the rate of injury in the plant?

15 Questions What effects do you think being governmentally owned has had on the company overall? How do you handle competing in a truly global market? Has the volcano in Iceland affected shipping? How much does public opinion affect your operations?

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