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Message: Chile copper mines, oil refineries at risk from quake

Chile copper mines, oil refineries at risk from quake

posted on Feb 27, 2010 02:21PM

FACTBOX-Chile copper mines, oil refineries at risk from quake

Sat Feb 27, 2010 1:45pm EST

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  (Adds comments from mining minister, list of smelters)
 SANTIAGO, Feb 27 (Reuters) - Chile, the world's biggest copper producer,
was rocked by a huge magnitude-8.8 earthquake on Saturday, putting at risk
operations at several of the country's mid-sized mines near the capital and oil
refineries, but sparing the massive deposits in the north.
 The quake affected the 116,000 barrel pre day (bpd) Bio Bio oil refinery
run by state energy firm ENAP, the country's largest, said Mining Minister
Santiago Gonzalez. Bio Bio is located just north of the city of Concepcion,
near the epicentre. [ID:nN27202760]
 ENAP said the quake had also affected its roughly 100,000 bpd Aconcagua
refinery near the capital, and that it would need to increase diesel imports to
meet demand. It said it had sufficient gasoline stocks to last two weeks and
diesel stocks for 10 days. [ID:nN27176503]
 The U.S. Geological Survey said the earthquake struck 56 miles (90 km)
northeast of Concepcion -- which is south of Santiago -- at a depth of 22 miles
(35 km) at 3:34 a.m. (0634 GMT).
 For a map showing the epicenter, click here
 As of 1800 GMT, operations at mines producing over 1 million tonnes a year
-- near one-fifth of the country's total 5.4 million tonnes last year -- had
been suspended by the quake, but they appeared undamaged.
 State-run Codelco said all of its operations were unaffected except for its
El Teniente and Andina mines, which were suspended because of electricity cuts
after the quake but were otherwise undamaged. Garcia it could take two days for
the mines to resume production.
 Freeport McMoRan Copper & Gold Inc (FCX.N) said the quake did not damage
its two mines in the country, but it is facing a power outage at its Candelaria
mine, which will result in a temporary shutdown. [ID:nWEN0976]
 Smaller miners reported little impact. Barrick Gold Corp (ABX.TO) and
Breakwater (BWR.TO) said its mines had not been affected. Teck Resources Ltd
(TCKb.TO) said the quake had not impacted its Andacollo and Quebrada mines,
though they could still be hit by power supply restrictions.
 Here are some facts on key mines in Chile's south-central
region:
 * Anglo-American's (AAL.L) Los Bronces and El Soldado mines
are the closest to the earthquake epicenter. Together they produce around
280,000 tonnes of copper annually. The company is moving ahead with plans to
expand its 238,400 tonnes of copper-per-year Los Bronces, one of the world's
biggest copper mines.
 * Codelco's El Teniente had an output of 404,000 tonnes in 2009. That
marked the end of four consecutive years of dwindling output as lower grades at
aging mines and labor strikes hit output.
 Here is an overview of major mines and smelters in Chile:
 Mine          Location            Operator       Output  Status  KM Dist from
                                                         Concepcion
 El Teniente   75km S of Santiago  Codelco        404,000  ops suspend  240
 Andina        50km NE of Santiago Codelco        210,000  ops suspend  320
 Los Bronces   65km NE of Santiago Anglo-American 235,000  shut         335
 El Soldado    132km N of Santiago Anglo-American  50,000  shut         400
 Los Pelambres 200km NE of SantiagoAntofagasta    310,000  n/a          480
 Candelaria                        FreeportMcMoRan185,000  power outage 650
 Escondida     far north           BHP Billiton   780,000  ops normal   750
 Collahuasi    far north           Xstrata/Anglo  435,000  n/a        1,000
 Chuquicamata  far north           Codelco        565,000  ops normal 1,140
 Top smelters   Near               Operator       Capacity Status KM Dist from
                                                         Concepcion
 Caletones       El Teniente       Codelco        435,000  ops normal   250
 Potrerillos                       Codelco        195,000  ops normal   750
 Altonorte       Antofagasta Port  Xstrata        268,014  n/a          926
 Chuquicamata    Chuquicamata      Codelco        590,130  ops normal 1,140
 * Status as of 1700 GMT on Saturday from Reuters reports.
 * Output as of 2009 from Metals Production Database;
Teniente/Andina output as of 2009 from company; Bronces/Soldado
output as of 2008 from company Website.
 * Location is based on company information, public data
 * Distance best estimate using company data, Google Maps
 (Reporting by Alonso Soto and Eduardo Garcia; Additional reporting by Euan

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