Antofagasta at a Glance
Antofagasta Minerals S.A. (AMSA) is the corporate centre for the mining division, based in Santiago, Chile. During 2009 its operations produced 442,500 tonnes of copper in concentrate (containing a small amount of gold and silver) and copper cathode as well as 7,800 tonnes of molybdenum in concentrate. Production is expected to increase to 543,000 tonnes in 2010 and exceed 700,000 tonnes in 2011.
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1. Securing and strengthening the Core Business
Current operations:
Los Pelambres El Tesoro Michilla Shareholders: 60% Antofagasta plc,
40% Japanese consortia70% Antofagasta plc,
30% Marubeni Corporation74% Antofagasta plc,
26% other Chilean investors2009 copper production: 311,600 tonnes payable copper 90,200 tonnes 40,600 tonnes Forecast for 2010: 407,000 tonnes payable copper 96,000 tonnes 40,000 tonnes 2009 molybdenum production: 7,800 tonnes – – Forecast for 2010: 9,500 tonnes – – 2009 cash costs: 80.4 cents per pound (114.5 cents per pound excluding by-products) 123.4 cents per pound 157.6 cents per pound Forecast for 2010: 81 cents per pound (114 cents per pound excluding by-products) 156 cents per pound 162 cents per pound 2009 EBITDA: US$1,408.9 million US$231.7 million US$27.9 million Proved and probable reserves: 1.5 billion tonnes @ 0.64% copper with molybdenum 211.6 million tonnes @ 0.57% copper 9.5 million tonnes @ 1.35% copper Development projects:
Los Pelambres expansion
The US$1.0 billion plant expansion is now being commissioned and will increase plant throughput by approximately 30%, from the current 130,000 tonnes per day level to a 175,000 tonnes per day level in 2010, increasing payable copper production by approximately 90,000 tonnes per year from 2010.
Esperanza
The US$2.3 billion, 70% owned project located in Chile's Antofagasta Region which will produce on average approximately 191,000 tonnes of payable copper and 215,000 ounces of payable gold per year. The project is 65% complete at 31 December 2009 with commissioning expected to begin by the end of 2010.
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2. Organic and sustainable growth of the Core Business
Sierra Gorda District
- Promising results from drilling programmes at Caracoles, Mirador and Telégrafo deposits.
- Mineral inventory is estimated to be in the range of 2.6 to 4.1 billion tonnes with grades in the range of 0.50% to 0.41% copper.
Los Pelambres District
- Successful exploration programme conducted between 2006-2008.
- Total mineral resources of 6.2 billion tonnes with an average copper grade of 0.52%.
Michilla/Antucoya
- Examining the potential to further extend the life of Michilla through to 2018.
- Antucoya feasibility study for a stand-alone heap leach SX-EW project to be completed by mid-2011.
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3. Growth beyond the Core Business
Reko Diq
- 37.5% effective interest in exploration licences in Baluchistan, Pakistan.
- Feasibility study and environmental and social impact study in final stages. Negotiations continuing for agreements with relevant authorities.
Other exploration and evaluation activities
- Exploration and evaluation activities both in Chile and internationally, through own exploration efforts and partnerships with other companies.
- Early-stage exploration agreements in place for prospects in the Americas, Europe and Africa.
- Heads of agreement signed with Duluth Metals Limited in January 2010 to acquire an interest in the Nokomis deposit in the United States.
Transport
The Antofagasta Railway Company plc, founded in 1888, is the main cargo transport system in Chile's Antofagasta Region, with a network of over 900 kilometres in Chile and a controlling interest in the Ferrocarril Andino network in Bolivia. It has a 40% interest in Inversiones Hornitos S.A., a power plant under construction in Mejillones.
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Shareholders:
100% Antofagasta plc -
2009 volume transported:
6.3 million tons by rail in Chile and Bolivia and 1.5 million tons by road in Chile -
2009 EBITDA:
US$56.6 million
Water
Aguas de Antofagasta S.A. holds the concession for water distribution in Chile's Antofagasta Region. It produces and distributes potable water to customers and untreated water to industrial customers.
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Shareholders:
100% Antofagasta plc -
2009 volume sold:
43.7 million cubic metres (including 1.1 million cubic metres of water transported) -
2009 EBITDA:
US$60.2 million
Antofagasta around the world
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Key:
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Operations and development projects
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Exploration and evaluation activities
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Registered office
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- Incorporated in the United Kingdom
- Listed on the London Stock Exchange (ANTO.L)
- FTSE-100 constituent since March 2004
- Level One ADR in United States (ANFGY)
- Market capitalisation at 31 December 2009 of US$15.7 billion
- 65% of ordinary share capital controlled by Luksic family of Chile with 35% free float