A new chapter has begun in the relationship between FLSmidth and Chilean copper producer Minera Doña Inés de Collahuasi (CMDIC). October 20, 2015 marked the official signing of the service agreement contract that ensures continuity for transversal plant maintenance services.
The Collahuasi plant is located in the Andes mountains, 4,400 meters above sea level and close to the Chile-Bolivia border. The plant sits on one of the largest deposits of copper in the world with a production average of 450,000 tons of fine copper and 4,500 tons of molybdenum in a year. The plant has a capacity to process more than 140,000 tonnes of rock per day.
Since Collahuasi began operations in 1999, FLSmidth has been a key partner—both in the sale of major physical assets and in providing technical assistance and full maintenance services for the plant.
The new contract became effective April 1, 2015 with a service extension of five years. The contract covers supply of maintenance services of three production lines of the concentrator plant as well as for the tailings and pipeline areas. The staff required for the maintenance services includes more than 150 permanent employees, as well as specific temporary personnel to assist during major shutdowns.
"Service is a strategic growth driver for FLSmidth," said Brian Day, President—Customer Services Division of FLSmidth. "We develop collaborative relationships with key long-term customers by bringing best-in-class knowhow and world-leading expertise to maximize their productivity and return on assets—while maintaining the highest safety standards."
Transversal maintenance services for the Collahuasi concentrator plant consist of maintaining and servicing three lines of SAG milling, flotation, thickening, and the water and tailings transportation systems. FLSmidth will also provide specialized services and implement mining and metallurgical process optimization services, as well as supply spare parts for the installed OEM equipment (which currently amounts to about 80 percent of the assets within the plant).
This contract comes in addition to other successful partnerships FLSmidth has developed with key long-term customers in the area, including Minera Los Pelambres from Antofagasta Minerals Group; Lumina Copper Caserones; and Codelco's Ministro Hales Division.
In May 2015, FLSmidth was awarded four prizes by the Chilean National Safety Council for outstanding safety achievements in several contracts. The most spectacular award is the one for 15 years without lost time due to injuries, which was achieved in the Puerto Punta Chungo contract with Minera Los Pelambres.
The confidence shown by Collahuasi is a result of a long-term and successful partnership with FLSmidth and reaffirms the value of the services being delivered. This is extremely important, especially during times when the expectation of future values of commodities is extremely high.
"This agreement demonstrates the convergence between our vision and FLSmidth's vision," said Luis Ávalos, CMDIC Process Maintenance Manager. "It translates into opportunities for mutual benefit, increased service levels, and operational efficiency through strategies shared across processes and methods—things that only an equipment manufacturer could deliver for us. Here, the values of safety, reliability and productivity are indicators of professionalism in our joint operations."
CONTACT: Palle Hansen