COLLAHUASI MINE

Approvals were secured to commit $183 million, the total cost for the construction of an enlarged primary crusher/conveyor system to increase the ore delivery rate from the main Rosario pit to the concentrator to 170,000 tonnes per day, as part of Collahuasi's Phase 1 expansion strategy to increase annual copper production capacity to 650,000 tonnes from 2010. A large pilot plant for the high rate thickener was commissioned at site in the first half and, subject to successful trials, a decision to install a full scale plant is expected by the end of 2008, thus completing the main fixed plant capital commitments for the Phase 1 expansion.

Reported a 28% increase in the total estimated Mineral Resource was announced. Additional resources have been defined as a result of a successful drilling program in 2007 and represent the equivalent of an additional 11 million tonnes of contained copper metal. The upgraded Mineral Resource of 5.19 billion tonnes at an average grade of 0.83% copper includes for the first time 746 million tonnes at a grade of 1.06% from the Rosario Oeste deposit. This compares to the previous Mineral Resource of 4.05 billion tonnes at an average grade of 0.80% copper as of Dec 31/06. The Mineral Resource includes Ore Reserves of 2.20 billion tonnes at a grade of 0.82% copper, a 25% increase in tonnage from Ore Reserves of 1.76 billion tonnes at 0.89% copper at Dec 31/06.

Reproted that feasibility studies into the first expansion to approximately 650,000 tonnes per annum of copper in 2010 are scheduled for completion in the second half of 2008. This initial stage would involve a concentrator throughput increase to 170,000 tonnes a day and an increase to current cathode production levels. A scoping study has also been initiated into a second expansion to one million tonnes per annum of copper from 2013 that would increase concentrator throughput to 260,000 tonnes a day and involve the construction of a major SX-EW oxide operation to service the proposed development of the Rosario Oeste deposit.