Page 88 - Annual Report 2020

1.9.3 Minerals Americas continued

PERU
Chile

BOLIVIA
Cerro
Colorado
Iquique
Pica
Pacific Ocean
CHILE
Tocopilla
Calama
Spence
Mejillones
ARGENTINA
Antofagasta
Minera Escondida
Mine

s1006_v1
Copper

Pampa Norte (Chile)
Overview Looking ahead
Pampa Norte consists of two wholly owned assets in the Atacama Production for FY2021 is expected to be between 240 and 270 kt,
Desert in northern Chile – Spence and Cerro Colorado. Spence and reflecting the reduced operational workforce due to COVID-19, the
Cerro Colorado produce high-quality copper cathodes through start-up of the SGO project and expected grade decline of
leaching, solvent extraction and electrowinning processes. approximately 7 per cent.
Key developments during FY2020 SGO will produce first copper between December 2020 and
Pampa Norte copper production for FY2020 decreased by March 2021 and plans are on track to redesign the approach
2 per cent to 243 kt, mainly due to a 14 per cent decline in stacked to operations at Spence to optimally balance the requirements
ore grade. of the concentrate and cathodes processes. The first batch
of the ultra-class truck fleet arrived at Spence in FY2020 and
The Spence Growth Option (SGO) to construct a 95 ktpd ore the remaining units are expected to arrive in the next two years.
concentrator and the outsourcing of a 1,000 litre per second The BHP Operating System deployment at Spence started in
desalination plant is 93 per cent complete. As a result of measures January 2020 and is expected to continue during FY2021. Similar to
put in place to reduce the spread of COVID-19, first production Escondida, Spence will be undertaking studies on various material
is now expected between December 2020 and March 2021. The handling technologies, such as automated trucks, trolley assistance
commissioning of the desalination plant and capitalisation of the and in-pit crushers and conveyors to increase mine productivity
associated US$600 million lease (approximate) will now occur and improve cost competitiveness.
in the first half of FY2021.
On 1 July 2020, Cerro Colorado announced it had started a
For more information about SGO, four-month process to adjust its mine plan to reduce throughput
refer to section 6.5. and costs to achieve improved cash returns and ensure viable
mining operations for the remaining period of its current
environmental licence, which expires at the end of CY2023.

86 BHP Annual Report 2020