Antamina Mining - "Moving Mountains" Case Study Analysis Essay

3407 Words Nov 7th, 2011 14 Pages
Antamina Case Study Analysis

Introduction & Context

The Antamina Mining Company (“CMA”) faced a set of critical decisions related to technical, logistical, political and financial challenges for establishing copper and zinc mining operations in a remote area of the Northern Peruvian Andes in the 1990s. This analysis is based primarily on the SEKN Case Study from March 5, 2007, entitled “Moving Mountains: The Case of the Antamina Mining Company”. Specifically, we considered the following questions that were raised by CMA’s General Manager within the case:

1) In the first Environmental Impact Assessment (”EIA”) that CMA published in 1998, the company laid out a plan to transport concentrate from the mine to a port facility near
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(+)Lower |
| |ROI period; (+)Safer = less |opportunity; |& local sickness |(-)Risks of tectonic |OPEX than road transport; |
| |environmental risk /risk of bad |(-)Increased potential |concerns |activity, terrorism threat; | |
| |press; (+)Net positive operating |for dissident activity | |(-)Requires access for | |
| |cost |& disruption | |maintenance | | The presentation of details under Figure 1 gives a rather negative view of both the ‘central route’ and ‘pipeline’ as stand-alone transport options, respectively. A closer look, however, reveals that building the pipeline was not as negative an option as may have been originally thought, especially when joined with a nearby road option (in this case, the ‘southern route’) for transporting everything other than concentrate / slurry. As we broadened our research on the Antamina case, we found other, differing perspectives on the

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