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Strategic partnership agreement

Tailored services and solutions to improve operational performance at new mine in Chile

A mine in a very remote location like a desert in the far north of Chile needs special attention to operate efficiently over the years. Sierra Gorda SCM knows that best and therefore signed a service partnership agreement with ABB for its cooper mine located in Atacama desert.

The service agreement covers a customized service approach for the entire ABB’s electrical and automation deliveries from 2011 to 2014. The major equipment supplied by ABB includes three gearless mill drives and four high-pressure grinding rolls for breaking up the copper bearing rock. Furthermore, ABB’s scope of supply included gas-insulated switchgears, low voltage and medium voltage control centers, medium- and low voltage drives, a distributed control system and a range of automation equipment.

The services offered include advice on start-up, operations and maintenance, as well as getting the most out of the advanced features of its control system. These features include the ability to monitor and optimize the performance of the electrical equipment, remotely diagnose any problems that arise and optimize Sierra Gorda’s maintenance schedules to minimize the possibility of breakdowns.

A key area of the service agreement is asset optimization capabilities that improve the availability, performance and lifetime of equipment by using condition monitoring, advanced diagnostic data and predictive intelligence to plan maintenance activities and detect equipment problems before they occur. High up-time and reliability is an important consideration, especially given the extreme hostility and remoteness of the Atacama desert.

ABB will also offer the Sierra Gorda’s staff professional training courses to help them run the mine as efficiently and safely as possible. This provision of skills development was an important criterion in the award of the contract.

Joseph Tis, Vice President Development at Sierra Gorda SCM, said: “A highly tailored service concept and expert support means we can count on ABB as our strategic service partner. We are confident that ABB’s team expertise in mining processes and equipment will help us to improve our production performance in the coming years.”

The tailored service approach is aimed at long-term value creation for the customer. Thanks to the continuous support and optimization offered by ABB, Sierra Gorda will be able to maximize system availability and keep its operating costs as low as possible.

The Sierra Gorda copper mine is located in the Antofagasta region in the far north of Chile, at an altitude of 1,626 meters. The estimated output in the first phase of the development is 120,000 metric tons (MT) of fine copper and 21,000 MT of molybdenum a year. Excavation is due to begin in 2014. The Sierra Gorda Project is a joint venture between KGHM International, Sumitomo Metal Mining and Sumitomo Corporation.


Main data

 Customer:  Sierra Gorda SCM
 Site:  Atacama desert, Chile
Customer need:  - Reliable and efficient operations in remote location
- Demand for improved return on assets (ROA)
- Extend life of equipment
Scope:  Customized strategic service partnership agreement covering ABB's entire installed base.
Features:  − Preventive, predictive and corrective maintenance for each equipment class
− Remote support and diagnostics
− Asset optimization services
− Engineering and consulting services
Customer benefits: − Access to a wide range of  technical and process experts
− Optimized throughput and automated work process
− Planned and predictable maintenance costs
- Proactive maintenance solutions tailored to site requirements
Contract awarded in: 2014

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