At PERUMIN 35, the London-based company will show the world how smart mining should be done. Of course, it is not easy and it costs a lot, but the benefits go beyond returns and revenues; they translate into shared value, where both the company and the community win and harmony is possible. Adolfo Heeren, CEO of Anglo American Peru, explains the concept of futuristic mine with which Quellaveco will be born and the mark it will leave on the people of Moquegua.
Why does Anglo American consider the PERUMIN mining convention an opportunity?
PERUMIN is the most important space for disseminating and showcasing what the mining sector does in our country. Considering that the start of operations at Quellaveco coincides with the first in-person post-pandemic convention, participating actively in it is a relevant opportunity so that, we, as Quellaveco, can share with attendees to the event our innovation and sustainability approach, along with what the first 100% digital mine in Peru represents, all of this framed in our purpose of reimagining mining to improve people’s lives.
What information or news will the company share with the visitors to the event?
We aspire to share how we are materializing our FutureSmart Mining strategy (smart mining of the future), which is a combination of digitalization, technology, and sustainability; for example, we have autonomous trucks that enable us to improve the safety of our staff, as well as the efficiency and productivity of our operation. Another example is the digitalization of all our processes to centralize them in the mine’s Integrated Operations Center, which will function as the brain of the operation. An additional example is that Quellaveco will be the first large-scale mining operation run on energy from 100% renewable sources.
Parallelly, we would also like to share some examples of how we are contributing to the development of the Moquegua region through initiatives that are promoting local agriculture and livestock, education and training of new professionals, support to make public investment projects that will make the closing of gaps viable, and our approach of dialogue and close communication with the communities that we feel part of.
What are the prospects for Quellaveco for the following 5 years?
Quellaveco will increase copper production by 10% in Peru. During the first 5 years of operation, our annual production will amount to 330,000 tons of copper.
Beyond the positive impact this will have on the resources of the State, as well as in terms of fiscal redistribution (canon) and royalties for the region where we operate, we aspire to be a catalyst for development in Moquegua, not just through specific projects, but also through multistakeholder efforts that will allow for the diversification of the region’s sources of economic growth.
At the operation level, in 2023 we expect to reach our maximum ore processing capacity, with 127,500 tons a day.
How are you promoting the sustainable development of your areas of influence in Moquegua?
For Anglo American Quellaveco, building, maintaining, and growing trust with our stakeholders is key to realize our purpose of reimagining mining to improve people’s lives.
This implies being able to listen to and understand them. A successful example of this is the 2011-2012 Dialogue Table, which laid the foundations of what Moquegua expected from the mining activity in its region in terms of environmental, water, and sustainable development management. And Anglo American showed that it was able to adjust its business case to align with Moquegua’s expectations. This dialogue space concluded with 26 commitments made by the company, which are being implemented and which are monitored by local representatives of the Dialogue Table through a monitoring committee. This committee has made it possible to channel concerns, interests, and doubts, always within the framework of this institutionalized dialogue space.
Which projects in particular is Anglo American working on with the communities?
We are working hand in hand with Moquegua, since we aspire to contribute to its vision of regional development and to support it from our Sustainable Mining approach. To do so, we have goals to foster prosperous communities, thus helping reduce gaps in education and health, and improve the livelihoods of the population. An example of this is the Moquegua Crece program, an alliance between private companies and the public sector that seeks to galvanize the regional economy in order to offer more opportunities to the population, as well as to help provide better public infrastructure services and promote the sustainable management of renewable natural resources.
Moreover, the Development Fund of Moquegua, born from the commitment taken on by the company at the Dialogue Table, has PEN 1 billion for infrastructure, water, sanitation, and education projects, among others. We also have the Quellaveco Fund, which has financed 30 projects for sustainable development, where around 30,000 people from the Moquegua regions have participated. A special effort was directed towards agricultural and livestock producers with the Agro Quellaveco initiative, which grants micro-credits to those who did not have other sources of financing before. In addition, we have implemented programs for building up capacities, in which some 10,000 people have taken part, including businesspeople and entrepreneurs from Moquegua.
In what way is Quellaveco contributing to the efficient use of energy and water?
As Anglo American group, we aspire to reduce our water and energy consumption. To do it, we have concrete goals to achieve by 2030 and 2040. Furthermore, all of the Group’s operations, including Quellaveco, will have to be carbon neutral by 2040.
Quellaveco was designed to be operated with 100% renewable energy. Another important thing is that we will have the “coarse particle recovery” technology, which will enable us to reduce our water consumption. Additionally, we will use water not suitable for human or agricultural consumption, and we will share water from our Vizcachas dam with Moquegua’s population. This shared value approach is complemented by other infrastructure initiatives which will make it possible for Moquegua’s population and agriculture to be optimized and strengthened.