Mining

2. Organic and sustainable growth of the Core Business

Los Pelambres District

Los Pelambres has total mineral resources of 6.2 billion tonnes with an average copper grade of 0.52%. This includes mineral resources at the existing open pit, and neighbouring deposits including the Frontera deposit, which were identified following an exploration programme between 2006 and 2008. The increase in mineral resources from the amounts reported in 2008 (4.9 billion tonnes with an average copper grade of 0.56%) is principally due to a reduction in the cut-off grade from 0.40% to 0.35%, as well as the incorporation of low grade stockpiles (42 million tonnes) and updates to the block model. These mineral resources are significantly greater than the 1.5 billion tonnes of ore reserves currently incorporated in Los Pelambres’ mine plan.

While the scale of the mineral resource has no immediate impact on the existing mine plan for Los Pelambres, it presents opportunities for longer term planning either by providing additional material in future years to extend the existing mine life, or by enabling Los Pelambres in the longer term to consider possibilities for future growth.