Spotlight: Codelco’s Ventanas smelter

To calm the nerves of around 8,000 workers linked to Chile's Ventanas smelter, mining minister Baldo Prokurica told the senate’s mining and energy committee on Wednesday that assets of a state company cannot be disposed of via a board decision.

His remarks are a response to the board of state miner Codelco, which two months ago said it was considering closing the smelter-refinery in Valparaíso region because of falling profitability due to “growing environmental and economic requirements."

Ventanas processes copper concentrates to produce anodes and cathodes. Half the concentrates come from small and medium-scale miners and the other half from Anglo American and Codelco’s El Teniente and Andina mines. 

Annual production is set at 420,000t for the smelter and 400,000t for the refinery. The facilities also produce 360,000t of sulfuric acid. 

Codelco assumed control of Ventanas in 2005 from state minerals company Enami and over the last five years has invested US$160mn to reduce sulfur, arsenic and particulate matter emissions. The smelter achieved 95% of emissions capture, making it number one in the country. 

In 2017, Ventanas reduced sulfur emissions by 32%, arsenic by 43% and particulate matter by 82% compared to 2010, according to Codelco. But to achieve the global standard of 99% capture a US$500mn investment is needed.

By 2022, Codelco would have to invest US$30mn to fulfill requirements of a decontamination plan, but Ventanas registers losses of US$50mn every year. And if Codelco shuts it down, the company must pay US$150mn to guarantee the surrounding communities’ safety.

Sonami mining association president Diego Hernández mentioned numbers from state copper commission Cochilco, saying that Ventanas is only number 52 on a list of the 57 most efficient smelters in the world. And three other Codelco smelters also rank badly. “Chuquicamata is number 56, Potrerillos is number 53 and Caletones is 42,” he said. And Codelco operates four of the most expensive smelters globally. 

“If Codelco closes Ventanas, the whole community will be affected. In the last eight years, 4bn pesos [US$5.11mn] were invested in surrounding communities,” Andrea Cruces from Codelco union No. 1 told the senate commission. 

Cruces added that if the smelter closes, the refinery won’t have the amount of mineral needed to operate. 

Senators from Metropolitan and O’Higgins regions, Guido Girardi and Alejandro García Huidobro, have proposed Codelco invest the required US$30mn by 2022 and unite scientists, miners and government to propose ideas on how Chile could get 21st century smelters. 

Minister Prokurica, meanwhile, called on Codelco’s board to tell the senate commission more details about Ventanas’ operations.