The QB2 project is one of the world’s largest undeveloped copper resources. QB2 is expected to have low operating costs, an initial mine life of 28 years and significant potential for further growth.

On March 29, 2019, we closed a transaction where SMM/SC subscribed for a 30% indirect interest in QBSA, which owns the QB2 copper development. SMM/SC contributed $1.3 billion (US$966 million) to QBSA on closing of the transaction and a further $444 million (US$336 million) over the remainder of 2019, including $38 million for interest on the loan advances during 2019.

In the fourth quarter of 2019, we closed the US$2.5 billion limited recourse project financing to fund the development of QB2. With funding from the project financing and the partnering transaction with SMM/SC, our first contributions to the project are not expected until early 2021

The project is comprised of a mine area with a concentrator plant and tailings facility, utilities and port facilities.

The supergene orebody (near-surface deposit) was mined during the initial phase of Quebrada Blanca. QB2 will develop the deeper sulphide resource underlying the existing operation. As a result, QB2 is effectively pre-stripped, which greatly reduces project costs.

• Initial 28-year mine life will use only 25% of total reserves and resources
• Maximum pit depth of 720 meters

Concentrator

Processing of copper ore, including crushing, milling, bulk flotation, thickening and filtering will occur in a new concentrator plant with a production capacity of 140,000 tonnes-per-day.

Tailings Facility

Mine tailings will be transported from the concentrator plant to the tailings facility. The facility will be built to industry-leading standards for safety and security to ensure safe management and storage.

Utilities

Utilities constructed to service QB2 will include the concentrate and desalinated water transport systems, high-voltage power lines and access roads.

Port Facilities and Desalination Plant

QB2 will include the first large-scale use of desalinated seawater at a mining operation in the Tarapacá Region of Chile, in place of freshwater use. In addition, port facilities for loading mineral concentrate onto ships for transport to markets will be constructed.

QB2 Environmental Impact Study