Cerro Verde Copper-Molybdenum Mine

Cerro Verde Copper-Molybdenum Mine

Cerro Verde is an open-pit copper and molybdenum mining complex located Approximately 20 miles southwest of Arequipa, Peru.

The Cerro Verde mine is a porphyry copper deposit that has oxide and secondary sulfide mineralization, and primary sulfide mineralization. The Cerro Verde operation includes a 120,000 mtd concentrator and solution extraction/electrowinning leaching facilities. Leach copper production is derived from a 39,000 mtd crushed leach facility and a run-of-mine leach system.

Cerro Verde is engaged in a large-scale expansion which is expected to expand the concentrator facilities to 360,000 metric tons-per-day (mtd) and provide incremental annual production of approximately 600 million pounds of copper and 15 million pounds of molybdenum beginning in 2016.

Cerro Verde Concentrator Process DiagramCerro Verde Mine Map with major SuppliersCerro Verde Mine Map

Milestones

  • 2014

    EIA approval for 181.3 MW Recka power station and 220 ​​kV transmission line

  • 2014

    Large-scale expansion at Cerro Verde

  • 2013

    Construction Management (CM) services for expansion

  • 2013

    Expansion to 174500 t/d

  • 2012

    EIA approval to increase installed processing ore capacity of concentrate from 120,000 to 360,000 tonnes per day (tpd)

  • 2012

    Construction of water treatment plant to produce potable water

  • 2007

    Expansion to 147000 t/d

  • 2002

    Expansion to 39000 t/d

  • Construction at 31000 t/d

Conveyor belt protection system

Ingenimm

Manufacture of protection system for the corresponding CV26, CV27, CV50-CV57, CV60-CV71 conveyors belts.

Works executed for Cosapi Ingeniería y Construcción.

Source: Ingenimm
cosapi-pic-2cosapi-pic-1
Ingenimm
2015
US$ 73.2K

Engineering and Design

Ingenimm

Engineering design of the conveyor belts protection system for the entire project executed by Cosapi Ingeniería y Construcción related to conveyor belts 16, 17, 25, 26, 27, 31, 41, 50-57 and 60-71 and K 161 pulleys at Cerro Verde expansion.

Works executed for Cosapi Ingeniería y Construcción.

Source: Ingenimm
Ingenimm
2015
US$ 73.2K

Engineering and Design

Ingenimm

Engineering design for protection system associated with the primary crusher expansion as well as the conveyor belt to feed the secondary and tertiary crushing of Cerro Verde expansion project K171.

Works executed for GyM SA.

Source: Ingenimm

Conveyor belt protection system

Ingenimm

Manufacture of protection system for conveyors CV12 - CV22 associated with the primary crusher and conveyor CV13 - CV23 associated to secondary and tertiary crushing to feeding system.

Works executed for GyM SA.

Source: Ingenimm
gym-pic-2gym-pic-1

Engineering and Design

GMI Ingenieros Consultores

Truck workshop pre-engineering.

Source: GMI S.A. Ingenieros Consultores

Basic Engineering Design (BED)

GMI Ingenieros Consultores

Conceptual and basic engineering of La China access road.

Source: GMI S.A. Ingenieros Consultores

Detailed engineering

GMI Ingenieros Consultores

Detailed engineering for the relocation of the seepage pumping station.

Source: GMI S.A. Ingenieros Consultores

Detailed engineering

GMI Ingenieros Consultores

Industrial waste water treatment plant detailed engineering.

Source: GMI S.A. Ingenieros Consultores
Ulma Construction
2014

Formwork and Scaffolding for construction sites

Ulma Construction

Cerro Verde Mine, mainly extracting copper, is currently being expanded to significantly increase its production.

ORMA modular formwork was used for the 2.50 m thick reinforced concrete slab of the new mill. Wind forces had to be included as horizontal loads in the calculation of the structure which increased its weight. ULMA erected high load-bearing capacity T-60 SHORING consisting of towers reinforced with frames and diagonal braces capable of withstanding high loads at height.

Source: Ulma Construcción

Detailed engineering

GMI Ingenieros Consultores

Detailed engineering for the second relocation of cyclones and associated installations.

Source: GMI S.A. Ingenieros Consultores

Engineering and Design

GMI Ingenieros Consultores

Design of the main collector pre-design structures.

Works executed for Fluor.

Source: GMI S.A. Ingenieros Consultores

Engineering and Design

Anddes Asociados

Optimization of coating type 1 on Pad 1 Phase 3. Determination of densities in the stack of Pad 4B. Updating and development of geotechnical manuals, monitoring plans and plans continence of Pad 4B.

Engineering for improvements to the Pad 4B collection system.

Source: Anddes Asociados

Topographic survey

GMI Ingenieros Consultores

Topographic control for the Phase III - PAD 1 construction at Cerro Verde mine.

Works executed for GyM.

Source: GMI S.A. Ingenieros Consultores

Earthworks

GyM

Contract award for the project "1814 -PAD 1 Phase III - Cerro Verde" of Sociedad Minera Cerro Verde SAA. The project has a deadline of 12 months and consists of earthmoving and placement of geosynthetics PAD 1 Phase III, located in the Cerro Verde mine in the province of Arequipa.

Source: GyM
The Bank of Tokyo-Mitsubishi UFJ, Ltd
2014
US$ 5.6M

Medium Term Financing Facilities

The Bank of Tokyo-Mitsubishi UFJ, Ltd

Five-year $1.8 billion senior unsecured term loan credit agreement with The Bank of Tokyo-Mitsubishi UFJ, Ltd., BNP Paribas, Citigroup Global Markets Inc., and HSBC Securities (USA) Inc., as joint lead arrangers and joint bookrunners, and Citibank, N.A., as administrative agent, and other lenders.

Amounts are expected to be drawn over a two year period to fund a portion of Cerro Verde’s USD 4.6 billion mining expansion project and for Cerro Verde’s general corporate purposes.

The loan is not guaranteed, is subject to amortization, matures in March 2019 and will bear interest at LIBOR + 190 basis points, subject to adjustments based on Cerro Verde’s leverage ratio.

Source: SEC & Freeport-McMoRan Copper & Gold Inc.
1800Amount Loan (USD Million)5Tenor (years)190Variable interest at LIBOR + (bps)
Davis Polk
2014

Credit practice

Davis Polk

Davis Polk advised Sociedad Minera Cerro Verde in connection with a USD 1.8 billion five year senior unsecured term loan credit facility with the Bank of Tokyo-Mitsubishi UFJ Ltd., BNP Paribas, Citigroup Global Markets Inc. and HSBC Securities (USA) Inc., as joint lead arrangers and joint bookrunners, Citibank N.A., as administrative agent, and the other lenders parties thereto.

Amounts are expected to be drawn over a two year period to fund a portion of Cerro Verde’s $4.6 billion mining expansion project and for Cerro Verde’s general corporate purposes.

Source: Davis Polk
Cosapi Ingeniería y Construcción
2014
US$ 1.1M

Civil, structural and mechanical frameworks

Cosapi Ingeniería y Construcción

Execution of civil and mechanical works on the corresponding areas of secondary and tertiary crushers as well as setting up a vibrating screeners building for Expansion Project Cerro Verde.

It is estimated to consume 3.8 million man-hours using approximately 35,000 m3 of concrete and 44,000 tons of equipment among structures, pipes as well as 14,000 meters of deep grounding.

Source: Cosapi Ingeniería y Construcción
3.8Man-Hours (Million)35000Concrete poured (m3)44000Equipment Used (Tons)

Engineering and Design

GMI Ingenieros Consultores

Field engineering for fresh and waste water systems construction.

Source: GMI S.A. Ingenieros Consultores
Cinyde
2013
US$ 160.7K

Environmental Impact Assessment (EIA)

Cinyde

Execution of the 181.3 MW Recka power station project and 220 ​​kV transmission line project EIA. The project is located in the district of Reque, province of Chiclayo, state of Lambayeque, Peru.

Sociedad Minera Cerro Verde (SMCV) plans to build a power plant consisting of a turbine in open or simple cycle with its own 181.3 MW generator, 220/18kV 230MVA power transformer and auxiliary equipment. The interconnection of the power transformer to the National Interconnected System grid will be through a 220 kV transmission line from 220kV Reque Substation at Red de Energia del Peru, making a distance of about 3 km in a straight line from the power plant.

According to directorial resolution Nº382-2014-MEM/DGAAM given on December 25th 2014, the Recka Power Plant and Transmission Line project EIA was approved meeting the technical requirements for the Peruvian Ministry of Energy and Mines and the environmental local regulations.

Source: Peruvian Ministry of Energy and Mines

Geotechnical studies

ZER Geosystem Perú

Geophysical evaluation of the project "Study of Mechanical Rocks - Cyclone Relocation Project Phase II", which is within the mining operation SM Cerro Verde.

Geophysical exploration were conducted of the ground by Seismic Refraction, Multichannel Analysis of Surface Waves (MASW) and Microtremor Array Measurement (MAM) methods, by which the power of the layers was determined along with the interpretation of speeds P waves (Vs) and S waves (Vs) of materials and evaluation of dynamic parameters that form the soil foundation.

Geophysical exploration was carried out in order to determine the velocity of propagation of Vp and Vs in areas of study by testing surface seismic refraction with measurement of P waves. MASW and MAM tests were executed to obtain S-wave profiles, values ​​that will determine the thicknesses of the layers within the areas under evaluation.

Source: ZER Geosystem Perú S.A.C
Fluor Corporation
2013
US$ 2.9B

Construction Management (CM)

Fluor Corporation

Fluor Corporation was awarded a contract to provide construction management (CM) services for the expansion of the Cerro Verde mine in Peru. Fluor previously provided engineering and procurement services on the project beginning in early 2012.

Under the contract, Fluor will provide CM services for the new 240,000 metric tons per day concentrator, associated infrastructure including a new 220 kilovolt transmission line, a new waste water treatment plant for the city of Arequipa, upgraded fresh water pumping system, new tailing storage facility and ancillary buildings and facilities.

Source: Flour Corporation

Civil, structural and mechanical frameworks

GyM

Contract to be delivered for the expansion of the Cerro Verde mining project. Includes civil and electromechanical works of two primary crushers and the copper concentrator plant.

Source: GyM

Basic Engineering Design (BED)

GMI Ingenieros Consultores

Conceptual and basic engineering of the industrial water treatment plants.

Source: GMI S.A. Ingenieros Consultores
Trinity Steel Fabricators
2013

Assembly of steel structures

Trinity Steel Fabricators

Trinity Steel Fabricators, Inc. announced the award of project for the structural steel portion of the Cerro Verde Mine Expansion that is owned by Freeport-McMoRan. Fluor Corporation issued the award as the acting contractor for the project.

The structural steel project will start in March of 2013 in Trinity’s shop. Optimization of equipment and processes for the project have already commenced for fabrication of this massive structure.

Source: Trinity Steel Fabricators
C2 Mining
2012
US$ 2.5M

Wireless Network

C2 Mining

Development of engineering, procurement, construction , and commissioning support system of trunked radio communications system for the expansion of Cerro Verde project.

Commissioning of integrated telecommunications and energy, the solution included: Motorola trunked radio system TETRA infrastructure closet communications towers, power system and lightning protection system Solar Panels, wireless point to point links .

Source: C2 Mining

Detailed engineering

GMI Ingenieros Consultores

Detailed engineering of heavy and light weight equipment gas stations 2 and 3.

Source: GMI S.A. Ingenieros Consultores
MWH
2012

Integrated engineering and construction management

MWH

MWH provided construction supervision and quality assurance for the construction of a water treatment plant that will produce potable water for residents of Arequipa.

La Tomilla II water treatment plant will provide water supply to the community of Arequipa and supports operations at the Cerro Verde mine.

Source: Montgomery Watson y Harza

Detailed engineering

Anddes Asociados

Study of 3 alternatives for Pad 1 Phase 3 location of mineral ROM. Geotechnical design for Pad 1 Phase 3. Basic Engineering for Pad 1 Phase 3 of mineral ROM including the leach pad, processes pond and surplus material reservoir. Study of alternative for construction in 2 stages of Phase 3 Pad 1.

Detailed engineering of Pad 1 Phase 3 of mineral ROM. The study includes hydrology studies uodate, geotechnical stability and infiltration analysis, civil design, hydraulic design, water balance, technical specifications, estimation of Capex and Opex, preparation of construction plans and preparation of construction file.

Source: Anddes Asociados
ABB
2012

High Pressure Grinding Roll (HPGR) Drive System

ABB

Multinational electrical specialist ABB has recently been contracted to supply gearless mill drives (GMDs) for six ball mills and twin-drive systems for eight high pressure grinding rolls (HPGRs) at Cerro Verde copper/molybdenum mine in Peru.

ABB's scope of supply includes 2 x 2,500 kW twin-drive systems for HPGRs that include squirrel cage induction motors, transformers and ACS1000 frequency converters.

source: ABB
2500Mill rated power (KW)

Detailed engineering

GMI Ingenieros Consultores

Detailed engineering to increase by 3% the recuperation capacity of the molybdenum plant. Detailed engineering studies were developed and concluded on August 2012 according to the established schedule and work plan. By that date all the construction drawings and documents were delivered.

Similar to other projects in the mining division, this project included the use of 3D technology in order to integrate the new and existing installations, and assure the appropriate construction according to the engineering design.

Source: GMI S.A. Ingenieros Consultores
20Engineering man hours (K)

Basic Engineering Design (BED)

GMI Ingenieros Consultores

Basic and detailed engineering to increase by 3% the recuperation capacity of the molybdenum plant. The basic engineering started in March 2012 and was successfully completed with the modifications of the existing plant, the investment estimate (CAPEX) and the documents required for the procurement of the main equipment.

Similar to other projects in the mining division, this project included the use of 3D technology in order to integrate the new and existing installations, and assure the appropriate construction according to the engineering design.

Source: GMI S.A. Ingenieros Consultores
Knight Piésold
2011
US$ 160.7K

Environmental Impact Assessment (EIA)

Knight Piésold

The main purpose of the project is to increase the installed processing ore capacity of concentrate from 120,000 to 360,000 tonnes per day (tpd).

The EIA considers main activities as widening and deepening of pits Santa Rosa and Cerro Verde, building new copper concentrator plant with a capacity of 240,000 tpd, building two new mine stripping deposits, a new private road from production unit Cerro Verde to the transfer station La Joya, internal electrical distribution lines and sub​​-stations, new tailings dam in Linga, phase III of the leach pad.

According to directorial resolution Nº403-2012-MEM/AAM given on December 3th 2012, the Cerro Verde expansion EIA was approved meeting the technical requirements for the Peruvian Ministry of Energy and Mines and the environmental local regulations.

Source: Peruvian Ministry of Energy and Mines

Detailed engineering

GMI Ingenieros Consultores

Detailed engineering of the new treatment plant, fresh water supply and corresponding pumping stations for Arequipa residual water interception and conduction systems.

Within the Cerro Verde mining complex, the design included the tailing conduction and distribution from the new concentrator plant towards the tailing dam, the reclaim tailing water system, and the reclaim dam seepage water system, as part of the water supply for the new concentrator plant.

Source: GMI S.A. Ingenieros Consultores
278.69Engineering man hours (K)

Community uniforms

Industrial Textil Runa

Supply of advertising clothes and uniforms for neighborhood councils. Services also included training on road safety awareness and participatory environmental monitoring.

Garments include drill caps, polinan divers and drill vests.

Source: Industrial Textil Runa
Community uniforms for Cerro Verde Mine made by RUNA, ArequipaCommunity uniforms for Cerro Verde Mine made by RUNA, Arequipa
Alto Cayma consortium
2010
US$ 65M

Construction of drinking water plant

Alto Cayma consortium

The company Sociedad Minera Cerro Verde has awarded the Alto Cayma consortium, comprised of Abengoa Perú, Befesa Agua, Graña y Montero and Empresa Metropolitana de Abastecimiento y Saneamiento de Aguas de Sevilla (EMASESA), the contract to construct the La Tomilla II drinking water plant in the Peruvian city of Arequipa, worth EUR 55 million.

The awarded project includes the extension and improvement of the drinking water system in the metropolitan area of Arequipa, the second most populous city in Peru after Lima. It will involve extracting water from the River Chili and approximately 11 kilometres of pipeline to the drinking water treatment plant.

The project included engineering design, construction and commissioning of the plant, and its subsequent operation.

Source: Befesa & Abengoa
Ausenco Limited
2010
US$ 213.3K

Basic Engineering Design (BED)

Ausenco Limited

Under direct contract with Sociedad Minera Cerro Verde, Ausenco provided basic engineering for the installation of new first stage cyclones and the relocation of second stage cyclones (including associated civil, mechanical, electrical and instrumentation scopes) as well as the design of a new pumped water dilution and cyclowash system.

Source: Ausenco

Detailed engineering

GMI Ingenieros Consultores

The second stage was developed between September 2009 and February 2010, Construction commenced in March 2010 and was successfully completed in October 2010.

In this project, the use of 3D technology was the key to develop a quality product since interferences were detected on time and appropiate actions for constructability were defined.

Source: GMI S.A. Ingenieros Consultores
29Engineering man hours (K)

Geotechnical studies

ZER Geosystem Perú

Testing and measuring refraction seismic shear waves (MASW) within the premises of the Cerro Verde mine.

The aim of the study was to determine the seismic profiles of the materials that make up the study area and to determine the wave velocities. This information allowed us to determine the strength of the surface layers of materials, the depth to which find bedrock and dynamic parameters of these materials.

Source: ZER Geosystem Perú S.A.C

Detailed engineering

GMI Ingenieros Consultores

Sociedad Minera Cerro Verde S.A.A., planned to increase the nominal production of the process of its Concentrator Plant from 108K MTPD to 120K MTPD.

Fluor Daniel evaluated the different processes of the plant and identified the critical points that turned into “bottlenecks” for an increase in production. Within the framework of the “Debottlenecking ” Project, GMI S.A. was asked to develop the detailed engineering.

The service was developed in two stages: The first was mainly carried out at the facilities of Cerro Verde in Arequipa from May 2008 to February 2009.

Source: GMI S.A. Ingenieros Consultores
42Engineering man hours (K)

Concentration and processing plant construction

GyM

Construction of copper concentrator plant with a capacity of 108,000 t/day. Included a primary, secondary and tertiary crusher, grinding, copper flotation, molybdenum plant, thickeners, tailings transport systems, energy supply, HGPR installation and erection of four ball mills 7.3 m diameter.

Access Roads and Platforms: Access roads, pipeline rights-of-way and platforms, totaling more than 930,000 m3 of earthworks.

Tailings Distribution System: Civil works, assembly of structures and installation of pipelines (approx. 10 km). Electromechanical Assemblies: Assembly of equipment (conveyors, chutes, etc.).

Source: GyM
108000Output Tonnes per day6560Engineering man hours (K)23.95Ball Mill diameter (ft)61000Concrete poured (m3)9500Equipment assembly (Tonnes)12700Structural assembly (Tonnes)513000Cables (m)4Number of Ball Mill installed
Metso Corporation

Cone Crusher

Metso Corporation

US$ 97.8M

Thermal Power

181.3Generation Capacity (MW)
US$ 2.8M

Power Transmission Line

2.4Length (km)220Power Line Capacity (KV)

Fuel Storage Tank

6250Tank Capacity (m3)

Water tank

9900Storage Capacity (m3)

Water tank

9900Storage Capacity (m3)

Water treatment plant operation

US$ 2.8M

Power Transmission Line

2.4Length (km)15Contract period (years)220Power Line Capacity (KV)
Cobra Peru
US$ 97.8M

Thermal Power

Cobra Peru

181.3Generation Capacity (MW)
Cesel Ingenieros
US$ 139.5K

Detailed engineering

Cesel Ingenieros

Definitive design and detail engineering of 10 km transmission line comprising steel towers, AAAC 500 mm2 conductor, two OPGW optical fiber earth wires, ceramic insulators.

Design and engineering also covered Socabaya 220 kV substation, the expansion of two line bays, main bus bar system and transfer bus bar, Cerro Verde 220 kV substation, composed of a ring bus bar system with three line bays.

Source: Cesel Ingenieros
US$ 97.8M

Thermal Power

181.3Generation Capacity (MW)66108Diesel Consuption (m3/year)

Belt Rip Detection

Kingdom Solutions

After an arduous 02-year selection process and technical evaluation, Fluor decided to chose Coal Control GmbH through its exclusive representative in Peru Kingdom Solutions.

Kingdom Solutions is commissioning 02 equipments Master BPS-A1-M1G-MV and 07 equipment Master BPS-A1-M2G-MV to protect a total of 16 conveyor belts.

Source: Kingdom Solutions
Equipos de Detección de Corte Coal Control de Kingdom Solutions – Ventajas y características-20_4

Belt Rip Detection

Kingdom Solutions

After a catastrophic event of 800 meters slit in the CV-002 belt, Compañía Minera Cerro Verde decided to choose, between 4 brands, Coal Control GmbH through its exclusive representative in Peru Kingdom Solutions.

Kingdom Solutions commissioning of 05 equipments Master BPS-A2-M2G and 01 equipment Master BPS-A2-M3G was performed over a 6-hours period. The equipments were installed on the CV-002 belt conveyor to protect the CV1 plant belts.

Source: Kingdom Solutions
Equipos de Detección de Corte Coal Control de Kingdom Solutions – Ventajas y características-16_4
Confidential
US$ 302.8K

Conveyor Belt System

Confidential

0.173Length (km)6500Transport Capacity (t/h)2.133Belt Width (mm)2186Rated power (KW)2Belt wide (m)

More contracts, contractors and photos are included in the PDF.

Snapshot

Capital Expenditure
US$ 4.4B
Project Status
Expansión
Production starting date
January 1976
Mine Type
Open Pit
Metals mined
Copper, Molybdenum
Type of Ore Body
Porphyry system
Copper Annual Output (Tonnes)
253,105
Molybdenum Annual Output (Tonnes)
5,897
Concentrator facilities (tpd)
120,000
legal.unidad
CERRO VERDE 1,2,3
Electricity Requirement (MW)
400

Top Contractors

Fluor Corporation
Cobra Peru
Alto Cayma consortium
GyM
ABB

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