Financing Agreement Signed

ANTOFAGASTA HOLDINGS PLC
2 August 1999


FINANCING FOR THE US$300 MILLION EL TESORO COPPER PROJECT
FINALISED

London and Sydney - Antofagasta Holdings P.L.C. and
Equatorial Mining Ltd. today announced that their joint
venture company, Compania Contractual Minera El Tesoro (CCMET)
has signed definitive agreements for a US$300 million
financing for the El Tesoro copper project in Chile, of which
US$205million will be provided by project finance.

The US$205 million facility is being provided by a consortium
of senior lenders of which the Lead Arrangers are The Royal
Bank of Scotland p.l.c., Dresdner Bank AG, London Branch,
Banco Santander Central Hispano S.A., New York Branch and
Kreditanstalt fur Wiederaufbau of Germany. Co-arrangers are
Standard Bank London Limited and Bayerische Hypo-und
Vereinsbank AG with Mees Pierson N.V. as Lead Manager. The
balance of the funding will come from the sponsors. N M
Rothschild & Sons acted as financial advisor to the sponsors
and El Tesoro, Sullivan & Cromwell acted as project counsel
and Jara del Favero as local counsel.

The financing of this project, during a long period of low
copper prices, has been made possible by the quality of the
sponsors and the reduction of the construction and operating
risk through the use of proven technology. The project
benefits from experience gained in Antofagasta's similar
project at Minera Michilla and from international demand for
Michilla's LME Grade A cathodes. Kvaerner, the Anglo-Norwegian
engineering and construction group has been awarded a
US$170 million turn-key contract which comprises the major
part of the construction of the project. In addition, the
project includes the construction of power, water lines and
access roads. The project has completed the Environmental
Impact Study process, administered by the Chilean state and is
consistent with applicable World Bank environmental
guidelines.

The El Tesoro mine is located approximately 200km north-east
of Antofagasta in Chile. Estimated in-pit reserves total 153
million tonnes with a grade of 0.96% copper. The project is
expected to produce 75,000 tonnes per annum of high grade
copper cathodes over an 18-year mine life.  Operating cash
costs will be low, at between 39 c/lb (cents per pound) and 41
c/lb during the first five years of operation, placing the
mine in the lowest quartile of world-wide copper production
costs. The project will use the solvent extraction electro-
winning (SX-EW) process, to produce cathodes without the need
for smelting, thus giving Tesoro direct access to terminal
markets.

Antofagasta Holdings through its mining subsidiaries, Anaconda
Chile S.A. and Minera Michilla S.A., is the majority partner,
with 61% of El Tesoro; the remaining 39% is held by Equatorial
Mining Ltd., a company controlled by AMP Group, the largest
institutional investor in Australia.

Jean-Paul Luksic, President of the Board of El Tesoro stated
that 'the project's robust economics and long life should
ensure its profitable progress through future cycles of the
copper market, especially with the support of such a strong
group of sponsors and financing banks.' Mr Luksic added that
'total copper capacity for the Antofagasta group will exceed
400,000 tpa during 2001, placing it amongst the largest copper
producers in the world.'

Gavin Thomas, CEO of Equatorial Mining Ltd., expressed his
satisfaction at 'the excellent relationship that exists
between partners' and stated that 'El Tesoro is a major step
in the development of the company'.

Financial closing and satisfaction of conditions to borrowing
are expected to occur in October 1999. Following an eighteen-
month construction period, initial commercial production of
cathodes is projected for the first quarter of 2001. The
signing of the financing for this project shows the confidence
of both the partners and financing banks in the future of
Chile and in the copper business.

For further information, please contact :

Antofagasta Holdings P.L.C.     Neos S.A.
Philip Adeane                   Alexander Newman
Neil Herbert                    Tel:[phone]
Tel : [phone]          Fax : [phone]
Fax : [phone]          email: [e-mail]
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