LOS PELAMBRES

Announced that Minera Los Pelambres has completed all remaining construction works relating to the Mauro tailings dam, and is in the process of commencing operation. The Mauro tailings dam will provide sufficient capacity to ensure Minera Los Pelambres' mine life of 28 years based on a throughput rate of 175,000 tonnes per day of ore following the completion of the US$1 billion plant expansion at the end of 2009. During 2007, Los Pelambres mine produced 289,900 tonnes of payable copper which was 10.6% less than in 2006 due to lower ore grades as expected and a higher percentage of primary ore which reduced throughput at the crusher.

Antofagasta provided highlights of its Q2/2007 production report. Los Pelambres produced 71,100 tonnes of payable copper in Q2 and 141,800 tonnes in the first six months of 2007, marginally above the first six months of last year, while molybdenum production was 2,800 tonnes in Q2, and 4,900 tonnes in the first six months of 2007, 19.5% above the first half of 2006. At El Tesoro, cathode production was 23,200 tonnes in Q2 and 46,800 tonnes during the first half of the year, which represents a 10% increase compared with the first six months of 2006. Michilla produced 11,800 tonnes of copper cathode in Q2 for a total of 23,400 tonnes during the first half of 2007, marginally below the first six months of last year.

As previously announced, there a number of claims currently at first instance or on appeal in the chilean courts against third parties (either governmental authorities or former owners of land in the El Mauro area) which relate to the Mauro tailings dam project. None of these cases are directly against Los Pelambres, but in some cases the company has participated in proceedings in case an eventual judgement affects the tailings dam project.