Los Pelambres - Site Visit December 6 th , 2016 Robert Mayne Nicholls General Manager
Cautionary statement This presentation has been prepared by Antofagasta plc. By reviewing and/or attending this presentation you agree to the following conditions: This presentation contains forward-looking statements. All statements other than historical facts are forward-looking statements. Examples of forward-looking statements include those regarding the Group's strategy, plans, objectives or future operating or financial performance; reserve and resource estimates; commodity demand and trends in commodity prices; growth opportunities; and any assumptions underlying or relating to any of the foregoing. Words such as “intend”, “aim”, “project”, “anticipate”, “estimate”, “plan”, “believe”, “expect”, “may”, “should”, “will”, “continue” and similar expressions identify forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that are beyond the Group’s control. Given these risks, uncertainties and assumptions, actual results could differ materially from any future results expressed or implied by these forward-looking statements, which speak only as of the date of this presentation. Important factors that could cause actual results to differ from those in the forward-looking statements include: global economic conditions; demand, supply and prices for copper; long-term commodity price assumptions, as they materially affect the timing and feasibility of future projects and developments; trends in the copper mining industry and conditions of the international copper markets; the effect of currency exchange rates on commodity prices and operating costs; the availability and costs associated with mining inputs and labour; operating or technical difficulties in connection with mining or development activities; employee relations; litigation; and actions and activities of governmental authorities, including changes in laws, regulations or taxation. Except as required by applicable law, rule or regulation, the Group does not undertake any obligation to publicly update or revise any forward-looking statements, whether as aresult of new information, future events or otherwise. Certain statistical and other information about Antofagasta plc included in this presentation is sourced from publicly available third party sources. Such information presents the views of those third parties and may not necessarily correspond to the views held by Antofagasta plc. This presentation is for information purposes only and does not constitute an offer to sell or the solicitation of an offer to buy shares in Antofagasta plc or any other securities in any jurisdiction. Further it does not constitute a recommendation by Antofagasta plc or any other person to buy or sell shares in Antofagasta plc or anyother securities. Past performancecannot be reliedon as a guide to futureperformance. 2
Key Messages Focus on Creating long Emphasis on cost and Positioned term value Leaders in profitable operational for growth through innovation tonnes reliability Sustainability • • • • • Only profitable Rebase costs Advance New History of production organic growth community innovation • Protect margins projects for engagement • • Every tonne Enables • Planning and approval model must make an sustainability forecasting • • earnings Robust balance Social licence to and lower costs contribution sheet operate or grow • Embedded practice 3
Agenda Operations Growth Overview Sustainability Review Opportunities 4
Safety first -24 months with zero fatalities Safety Performance Focus on: Identify and assess key fatality and o 1.4 1.8 serious injury risks. 1.3 1.0 Preventative reporting and o 0.7 investigation of high-potential near 1 1 misses. 0 0 0 On-the-ground executive safety o 2012 2013 2014 2015 YTD 2016 leadership. (1) Fatalities LTIFR 1. Lost Time Injury Frequency Rate Development of verification tools o High Potential Accident vs Near Miss (Leading Indicators) for the implementation of critical 100 50 controls of the transversal fatality 44.6 90 45 risks for each Company. 80 40 70 35 HP Near- Miss Index # HP Incidents 60 30 Progress in communications and o 64 79 50 25 40 20 culture. 58 53 33 30 15 31 40 19 20 10 15 10 19 5 16 14 13 10 11 9 8 8 0 0 High Potential (HP) Incidents: Total number of HP accidents and HP Near misses Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 *Near -miss index : Represents total number of high potential near misses for every HP Accidents HP Near Miss million hours worked. Target HP Near Miss Index 2016 HP Near Miss Index 2016 (Q3) *Near -miss index Target 2016: 17 5
Overview 6
Los Pelambres overview • Ownership structure 2016 Guidance – 60% Antofagasta – 15% MM LP Holding Cu – 25% Nippon LP Investment C1 • History Los Pelambres Conc. – Part of Antofagasta since 1985 – Large scale mining commenced in 1999 Santiago • Location YTD Q3 016 YTD Q3 2016 Production (t) ($/lb) – 240km north-east of Santiago • Facilities overview 259,300 1.04 – Concentrator with 175ktpd throughput capacity Guidance 2016 Guidance 2016 • Production Production (t) ($/lb) – 5th largest copper producer in Chile 355,000 - 1.25 • Life of Mine 365,000 – 23 years (Reserves ) 7
MineraLos Pelambres(MLP) Team Robert Denotes presence at presentation Mayne-Nicholls Chief Executive Officer Jorge Araneda Head of Sustainability Ivo Fadic Sebastián Trejos Head of Head of Safety and Maintenance Occupational Health Julio Cesar Rodrigo Juan Andrés Jose Miguel Pierino Castillo Catalán Morel Labbe Venturini Head of Resource Head of Chief Operations Chief Financial Head of Planning and Human Resources Officer Officer Projects Development Pablo Sergio Fernando Hernan Hernández Valdebenito Garay Delaigue Operational Plants and Port Excellence Mine Manager Tailings Manager Manager Manager 8
Mine site visit Hualtatasviewpoint Mine Operations Center 9 To be visited
Concentrator plant site visit Moly plant SAG and Ball Mills Flotation Stockpile Tailings Thickeners 1.600 m.a.s.l Throughput: 175 ktpd. 10 To be visited
Background: a story of sustained growth 1914 William Braden first explored in the area of the Los Pelambres deposit 1969 – 71 ENAMI carries out exploration to define the deposit’s potential 1978 Anaconda Minerals buys the Los Pelambres deposit rights that had been tendered by ENAMI 1985 Antofagasta Holdings buys Anaconda Chile and its right over the Los Pelambres deposit 1992 Minera El Chacay starts its small – scale underground operations (5 ktpd) 1997 EIA approved and construction starts. Japanese partners take 40% interest. Bank financing obtained 1999 Successful Ramp – up completed in 84 days with a capacity of 85 ktpd 2004 – 09 Several expansion projects take the processing capacity to 175 ktpd 2016 + Desalination plant and water pipeline EIA submission (enabling LT expansions) Throughput (nominal capacity) 190 ktpd 200 175 ktpd 180 159 ktpd 160 126 ktpd 140 120 85 ktpd 100 80 60 40 5 ktpd 20 0 < 1999 1999 - 2000 2000 - 2004 2004 - 2008 2008 - 2012 2012 - 2016 2020 + 11
Los Pelambres, a world – class asset • Los Pelambres’s ownership Chile’s 5 th largest copper producer Ktpa in 2015 – Antofagasta Group 60% – MM LP Holding BV 15% 363 – Nippon LP Investment 25% • Chile’s 5 th largest copper producer Peer 1 Peer 2 Peer 3 Peer 4 Los Pelambres Peer 5 Peer 6 Peer 7 Peer 8 Centinela – ~ 140 Mt/year total material movement with competitive stripping ratio Source: Cochilco – ~ 175 ktpd throughput capacity Los Pelambres C1 cash cost position • Total manpower of 4,709 c/lb (906 employees + 3,803 contractors) 103 c/lb 129c/lb 151c/lb • Focus on optimise our processes and lowering our cost base to strengthen margins • Chile’s 7 th largest deposit (reserves & MLP* resources) – Incremental Expansion project will allow 0 25 50 75 100 MLP to maximise the value of its resources Source: Woodmackenzie. Cash cost curve as per Q3 2016 update 12
One of our main operating challenges: ore hardness ktpa 500 100% 90% 400 80% 70% 300 60% 50% 200 40% 30% 100 20% 10% 0 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Guidance Cu production Hardness (%) of ore fed to plant 13
Reserves and Resources Reserves: Tonnage Los Pelambres Copper (%) Molybdenum (%) Gold (g/t) (millions of tonnes) Proven 704 0,61 0,022 0,05 Probable 604 0,60 0,015 0,04 Total (1) 1.309 0,61 0,019 0,05 Resources: Tonnage Los Pelambres Copper (%) Molybdenum (%) Gold (g/t) (millions of tonnes) Measured 1.151 0,59 0,022 0,05 Indicated 2.263 0,53 0,015 0,05 Inferred 2.690 0,46 0,015 0,06 Total (1) 6.104 0,51 0,016 0,06 Note: Information as of 31 Dec 2015 14
Operations Review 15
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