"We will increase our total capacity by 50% to reach 1.8 million tons. This is key to meeting the future demand of mining projects that, by the end of this decade, will shift from processing oxide minerals to sulfide, thereby increasing the use of lime in their processes."

Ulises Poirrier

GENERAL MANAGER, CBB CALES

August 07, 2024

Can you summarize CBB Cales’ history and its role in the Chilean mining sector?

CBB Cales, part of the CBB group, was established over 65 years ago in southern Chile, initially focusing on cement production using local blast furnace slag. In the 1990s, as mining investments increased and mining companies began outsourcing supplies, we adapted our Antofagasta plant to produce lime. Lime production was initially seasonal, alternating with cement due to fluctuating demand. We expanded our infrastructure, and today, we operate a large plant in Antofagasta with three kilns, another two kiln in Copiapó plant, and a smaller plant in Argentina that serves both the mining sector and other industries. We also import lime from our Argentinean plant to supply to our mining customers in central Chile.

What have been the company's main milestones in recent years?

Over five years ago, we established a development center in the region, capable of replicating flotation processes and other operations of our clients. This center is unique in our region due to the specialized knowledge and technology in lime usage for copper flotation.

In terms of infrastructure, we have expanded our storage capacities with warehouses in central Chile and soon we will start new warehouse in San Felipe, in addition to our existing facilities in Copiapó and Antofagasta. We are about to inaugurate a new warehouse with a capacity of 4,500 tons in Pozo Almonte, in Tarapacá region, to be close our customers in the northern part of the country.

How is the demand for lime evolving?

The mining industry has progressively become more aware of the need to optimize lime use to reduce carbon emissions and the use of other reagents. Our contracts with clients often involve auditing services and evaluation of lime efficiency at plants, which contributes to improving its performance in flotation processes. It is crucial to keep in mind that mining conditions are dynamic, with periodic changes in work fronts that require adjustments in the reagents used, including adjustments in pH or timing to properly adapt to the specific deposit.

What are the company's plans to increase lime production?

We plan to start the construction of a new kiln in Argentina in the second half of 2024, which will reach a total production over 220,000 t/y of lime annually. This kiln is expected to be operational by mid-2026, and it is intended to supply both the Chilean mining market and the lithium market in northern Argentina. The local limestone in Argentina is of very high quality, which allows us to produce high-quality lime, essential for processes that require low levels of impurities.

In Chile, we are in the process of obtaining environmental permits for the construction of a new plant. We hope to start construction in 2025 and have it operational by QI 2027.

Through this expansion, we will increase our total capacity by 50% to reach 1.8 million tons. This is key to meeting the future demand of mining projects that, by the end of this decade, will shift from processing oxide minerals to sulfide, thereby increasing the use of lime in their processes.

What efforts is the company making to become more sustainable?

We have been improving the efficiency of our kilns for many years. We implemented vertical kilns, which are over 25% more efficient than the traditional horizontal kilns in Chile, significantly reducing our carbon footprint. We are replacing fossil fuels with gas. In the long term, we are exploring carbon capture, an emerging technology that would allow us to capture CO2 from our pipes and transform it into reusable or marketable fuels.

What is the company's commitment to safety?

We identified a risk in transport operations, especially in the process of loading and unloading lime. To mitigate this risk, we have established a scheduling system for trucks to reduce waiting times, and we have introduced an online test that assesses driver fatigue and drowsiness before allowing them to drive. This system, created in collaboration with our transport company, also includes random alcohol and drug tests. All our routes are georeferenced, allowing us to monitor speeds in real time and ensure transport safety. We also have safety personnel at each plant who supervise and assist in transport and unloading according to standardized processes.

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