Glossary and Definitions

Business, Financial and Accounting

ADASA: Aguas de Antofagasta S.A., a wholly-owned subsidiary of the Group incorporated in Chile and operating the water concession in Chile’s Antofagasta Region acquired from ECONSSA.
ADR: American Depositary Receipt.
AIFR: All Injury Frequency Rate.
AMSA: Antofagasta Minerals S.A., a wholly-owned subsidiary of the Group incorporated in Chile which acts as the corporate centre for the mining division.
Antucoya: Copper project located approximately 45 kilometres east of Michilla.
Antomin: Antomin Limited, a wholly-owned subsidiary of the Group incorporated in Jersey (a 51%-owned subsidiary until 25 August 2008).
ATI: Antofagasta Terminal Internacional S.A., a 30%-owned associate of the Group incorporated in Chile and operating the port in the city of Antofagasta.
Annual Report: The Annual Report and Financial Statements 2009 of Antofagasta plc.
Australian Dollars: Australian currency.
Banco de Chile: Banco de Chile, a subsidiary of Quiñenco.
Barrick Gold: Barrick Gold Corporation, the joint venture partner of the Group in Tethyan.
Board: The Directors of Antofagasta plc who collectively have responsibility for the conduct of the Group’s business.
Capex: Capital expenditure(s).
Caracoles: Compañía Contractual Minera Caracoles, a wholly-owned subsidiary of the Group incorporated in Chile (81.5% owned prior to February 2009 – see Note 31).
Cash Costs: A measure of the cost of operational production expressed in terms of cents per pound of payable copper produced. Cash costs are stated net of by-product credits and include tolling charges for concentrates for Los Pelambres. Cash costs exclude depreciation, financial income and expenses, hedging gains and losses, exchange gains and losses and corporation tax.
CCU: Compañía de Cervecerías Unidas S.A., an associate of Quiñenco.
CGU: Cash Generating Unit.
Chilean Peso: Chilean currency.
2008 Combined Code: The revised Combined Code on Corporate Governance published by the Financial Reporting Council in June 2008 and applicable to listed companies for reporting years beginning on or after 29 June 2008.
Companies Act 2006: Principal legislation for United Kingdom company law.
Compañía Minera Milpo: Compañía Minera Milpo S.A.A. of Peru is a former owner of a 18.5% interest in Caracoles, acquired by the Group in February 2009.
Company: Antofagasta plc.
Desalant: Desalant S.A., former owner of a desalination plant located in Antofagasta and acquired by the Group through ADASA.
Directors: The Directors of the Company.
Duluth: Duluth Metals Limited, incorporated in Canada which owns the Nokomis deposit in Minnesota, United States.
EBITDA: Earnings Before Interest, Tax, Depreciation and Amortisation.
ECONSSA: Empresa Concesionaria de Servicios Sanitarios S.A., the Chilean state-owned company which previously operated the regulated and non-regulated water distribution business in Chile’s Antofagasta Region (formerly known as ESSAN).
El Tesoro: Minera El Tesoro, a 70%-owned subsidiary of the Group incorporated in Chile (a wholly-owned subsidiary of the Group until 25 August 2008, before the Marubeni transaction).
ENAP: Empresa Nacional del Petróleo, the 40% joint venture partner of the Group in Energía Andina S.A.
Energía Andina S.A.: Energía Andina S.A., a 60%-owned joint venture entity of the Group incorporated in Chile.
EPS: Earnings per share.
Equatorial: Equatorial Mining Limited, a wholly-owned subsidiary of the Group incorporated in Australia.
Esperanza: Minera Esperanza, a 70%-owned subsidiary of the Group incorporated in Chile (a wholly-owned subsidiary of the Group until 25 August 2008, before the Marubeni transaction).
ESSAN: Empresa de Servicios Sanitarios S.A., former name of ECONSSA.
EU: European Union.
FCA: Empresa Ferroviaria Andina S.A., a 50%-owned subsidiary of the Group incorporated in Bolivia.
FCAB: Ferrocarril de Antofagasta a Bolivia, the Chilean name for the Antofagasta Railway Company plc, a wholly-owned subsidiary of the Group incorporated in the United Kingdom and operating a rail network in Chile's Antofagasta Region.
FSA: Financial Services Authority.
FTSE-100 Index: A market-capitalisation weighted index representing the performance of the 100 largest UK-domiciled blue chip companies.
FTSE All-Share Index: A market-capitalisation weighted index representing the performance of all eligible companies listed on the London Stock Exchange's main market.
GAAP: Generally Accepted Accounting Practice or Generally Accepted Accounting Principles.
Government: The Government of the Republic of Chile.
Group: Antofagasta plc and its subsidiaries' companies.
Hedge Accounting: Accounting treatment for derivatives financial instrument permitted under IAS 39 "Financial Instruments: Recognition and Measurement", which recognises the offsetting effects on profit or loss of changes in the fair values of a hedging instrument and the hedged item.
IAS: International Accounting Standards.
IASB: International Accounting Standards Board.
IFRIC: International Financial Reporting Interpretations Committee.
IFRS: International Financial Reporting Standards.
Inversiones Hornitos: Inversiones Hornitos S.A., a 40%-owned associate of the Group incorporated in Chile which owns the 150MW Hornitos thermoelectric power plant in Mejillones under construction in Chile's Antofagasta Region.
IVA: Impuesto al Valor Agregado, or Chilean Value Added Tax (Chilean VAT).
Key Management Personnel: Persons with authority and responsibility for planning, directing and controlling the activities of the Group.
KPI: Key performance indicator.
LIBOR: London Inter Bank Offer Rate.
LME: London Metal Exchange.
Los Pelambres: Minera Los Pelambres, a 60%-owned subsidiary of the Group incorporated in Chile.
LSE: London Stock Exchange.
LTIFR: Lost Time Injury Frequency Rate.
Madeco: Madeco S.A., a subsidiary of Quiñenco.
Marubeni: Marubeni Corporation, the Group's 30% minority partner in El Tesoro and Esperanza.
Metallica Resources Chile Limitada: Minera Metallica Resources Chile Limitada, a subsidiary of New Gold Inc. (formerly Metallica Resources Inc.), a company with exploration interests in the Río Figueroa Project.
Michilla: Minera Michilla S.A., a 74.2%-owned subsidiary of the Group incorporated in Chile.
Mirador: Copper prospect located in the Sierra Gorda district.
Mulpun: Coal gasification project located near Valdivia in southern Chile.
Provisional Pricing: A sales term in several copper and molybdenum concentrate sale agreements and cathodes sale agreements which provides for provisional pricing of sales at the time of shipment, with final pricing being based on the monthly average LME copper price or monthly average molybdenum price for specific future periods, normally ranging from 30 to 180 days after delivery to the customer. For the purposes of IAS 39, the provisional sale is considered to contain an embedded derivative (i.e. the forward contract for which the provisional sale is subsequently adjusted) which is separated from the host contract (i.e. the sale of metals contained in the concentrate or cathode at the provisional invoice price less tolling charges deducted).
Quiñenco: Quiñenco S.A., a Chilean financial and industrial conglomerate under the control of the Luksic family and listed on the Santiago Stock Exchange.
Realised Prices: Effective sale price achieved comparing revenues (grossed up for tolling charges for concentrate)with sales volumes.
Reko Diq: Reko Diq is a substantial copper-gold porphyry district in south-west Pakistan which is held through Tethyan Copper Company Limited, a 50-50 joint venture with Barrick Gold Corporation of Canada, with the Government of Balochistan holding a 25% interest in the main exploration licence, giving the Group an effective 37.5% interest.
Río Figueroa: Río Figueroa, an exploration project located in Chile's Atacama Region.
Sierra Gorda district: Copper district located in the Antofagasta Region of Chile, where El Tesoro and Esperanza are located.
Sterling: United Kingdom currency.
Sunridge: Sunridge Gold Corp, an 18%-owned associate of the Group which has a base and precious metals project in Eritrea.
SVS: Superintendencia de Valores y Seguros de Chile, the Chilean securities regulator.
TEAL: Teal Exploration & Mining Incorporated, a company listed on the Toronto Stock Exchange with exploration and project interests on the Zambian Copper belt in Africa.
Telégrafo: Copper prospect located in the Sierra Gorda district held through Esperanza.
Tethyan: Tethyan Copper Company Limited, a 50%-owned joint venture entity of the Group incorporated in Australia.
TSR: Total Shareholder Return, being the movement in the Company’s share price plus reinvested dividends.
Turnbull Guidance: The revised guidance on internal control for directors on Combined Code issued by the Turnbull Review Group in October 2005.
UK: United Kingdom.
UKLA: United Kingdom Listing Authority.
US: United States.
US Dollars: United States currency.

Mining Industry

Brownfield Project: A development or exploration project in the vicinity of an existing operation.
By-products (credits in copper concentrates): Products obtained as result of copper processing. The Los Pelambres mine produces molybdenum concentrate and also receives credit for the gold and silver content in the copper concentrate sold.
Copper Cathode: Refined copper produced by electrolytic refining of impure copper by electro-winning.
Concentrate: The product of a physical concentration process, such as flotation or gravity concentration, which involves separating ore minerals from unwanted wasted rock. Concentrates require subsequent processing (such as smelting or leaching) to break down or dissolve the ore minerals and obtain the desired elements, usually metals.
Contained Copper: The proportion or quantity of copper contained in a given quantity of ore or concentrate.
Cut-off Grade: The lowest grade of mineralised material considered economic to process and used in the calculation of ore reserves and mineral resources.
Grade A Copper Cathode: Highest quality copper cathode (LME registered and certificated in the case of Michilla and El Tesoro).
Greenfield Project: The development or exploration of a new project not previously examined.
Flotation: A process by which chemicals are added to materials in a solution which are attracted to bubbles and float, whilst other materials sink, resulting in the production of concentrate.
Heap Leaching: A process for the recovery of copper from ore. The crushed material is laid on a slightly sloping, impermeable pad and leached by uniformly trickling (gravity fed) chemical solution through the beds to ponds. The metal is then recovered from the solution through the SX-EW process.
JORC: Joint Ore Reserves Committee of Australia.
Leaching: The process by which a soluble mineral can be economically recovered by dissolution.
LOM or Life Of Mine: The remaining life of a mine expressed in years, calculated by reference to scheduled production rates (i.e. comparing the rate at which ore is expected to be extracted from the mine to current defined reserves).
Mineral Resources: Material of intrinsic economic interest occurring in such form and quantity that there are reasonable prospects for eventual economic extraction. Mineral resources are stated inclusive of ore reserves, as defined by JORC.
MW: Megawatts (one million watts).
Open Pit: Mine working or excavation which is open to the surface.
Ore: Rock from which metal(s) or mineral(s) can be economically and legally extracted.
Ore Grade: The relative quantity, or the percentage, of metal content in an ore body or quantity of processed ore.
Ore Reserves: Part of Mineral Resources for which appropriate assessments have been carried out to demonstrate at a given date extraction could be reasonably justified and which include consideration of and modification by realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors.
Oxide and Sulphide Ores: Different kinds of ore containing copper. Oxide ore occurs on the weathered surface of ore-rich lodes and normally results in the production of cathode copper through a heap-leaching process. Sulphide ore comes from unweathered parent ores process and normally results in the production of concentrate through a flotation process which then requires smelting and refining to produce cathode copper.
Payable Copper: The proportion or quantity of contained copper for which payment is received after metallurgical deduction.
Porphyry: A large body of rock which contains disseminated chalcopyrite and other sulphide minerals. Such a deposit is mined in bulk on a large scale, generally in open pits, for copper and its by-product molybdenum.
Price Participation: Part of the tolling charges for copper concentrate under a sales agreement, usually in addition to TC/RCs and calculated a percentage of the difference between the copper price at final pricing and an agreed reference copper price, and which may result in an increase or decrease to TC/RCs.
Price Sharing: Tolling charges calculated under a sales agreement as an agreed percentage of the price for the metal contained in copper concentrate, as an alternative to TC/RCs and/or price participation.
Run-Of-Mine (ROM): A process for the recovery of copper from ore, typically used for low-grade ores. The mined, uncrushed ore is leached with a chemical solution. The metal is then recovered from the solution through the SX-EW process.
Stockpile: Material extracted and piled for future use.
SX-EW: Solvent Extraction and Electro Winning. A process for extracting metal from an ore and producing pure metal. First the metal is leached into solution; the resulting solution is then purified in the solvent extraction process; the solution is then treated in an electro chemical process (electro winning) to recover cathode copper.
Tailings Dam: Construction used to deposit the rock waste which remains as a result of the concentrating process after the recoverable minerals have been extracted in concentrate form.
TC/RCS: Treatment and refining charges, being terms used to set the smelting and refining charge or margin for processing copper concentrate and normally set either on an annual basis or on a spot basis.
Tpd: Tonnes per day, normally with reference to the quantity of ore processed over a given period of time expressed as a daily average.
Tolling Charges: Charges or margins for converting concentrate into finished metal. These include TC/RCs, price participation and price sharing for copper concentrate and roasting charges for molybdenum concentrate.
Underground Mine: Natural or man-made excavation under the surface of the Earth.

Currency Abbreviations

US cents – Cents of US Dollars.

US$ – US Dollar.

US$’000 – Thousand US Dollars.

US$m – Million US Dollars.

£ – Pounds Sterling.

£’000 – Thousand Pounds Sterling.

£m – Million Pounds Sterling.

P – Pence.

Ch$ – Chilean Peso.

CH$’000 – Thousand Chilean Pesos.

Ch$m – Million Chilean Pesos.

A$ – Australian Dollars.

A$’000 – Thousand Australian Dollars.

A$m – Million Australian Dollars.

Definitions and Conversion of Weights and Measures

g/t – grammes per tonne.

lb – pound.

Ounce or oz – a troy ounce.

’000 m3 – thousand cubic metres.

’000 tonnes – thousand tonnes.

1 kilogramme = 2.2046 pounds.

1 metric tonnes = 1,000 kilogrammes.

1 kilometre = 0.6214 miles.

1 troy ounce = 31.1 grammes.

Chemical Symbols

Cu – Copper.

Mo – Molybdenum.

Au – Gold.

Ag – Silver.