EL ABRA

The construction activities associated with the development of a large sulfide deposit at El Abra were resumed. It will extend the mine life by over ten years. Production from the sulfide ore, which will be ramping up to approximately 300 million pounds of copper per year is expected to begin in 2012 and will replace the current oxide copper production that is expected to decline over the next several years. The project will use a portion of the existing facilities to process the additional sulfide ore. Total capital for the project is estimated to approximate $700 million through 2015, of which approximately $500 million is for the initial phase of the project that is expected to be completed in 2012.

Announced a delay in the sulphide project at El Abra due to poor market conditions.

A feasibility study was completed that evaluated the development of the large sulfide deposit on the property. This project would extend the mine life by nine years. Copper production from the sulfides is expected to begin in 2010. In March 2007, an environmental impact study associated with the sulfide project was submitted to Chilean authorities.