Q1 Production Report

Antofagasta PLC
03 May 2006


3 May 2006


Antofagasta plc

Quarterly Production Report - Q1 2006



Highlights

  • Group copper production in Q1 of 107,000 tonnes is in line with forecast
    but 8.4% below the quarterly average for 2005.

  • Molybdenum production at Los Pelambres in Q1 was 2,000 tonnes, compared
    with 8,700 tonnes for the 2005 full year.

  • Group cash costs for Q1 were 49.7 c/lb compared with 13.9 c/lb in 2005,
    mainly due to lower molybdenum prices in Q1 compared with 2005.



Group                                             Q1      Q2      Q3      Q4      Acc     Acc    Full Year
Total                                           2006    2006    2006    2006     2006    2005       2005 


Total production of payable copper ('000
tonnes)                                        107.0                            107.0   118.9      467.3

Total production of payable moly ('000           
tonnes)                                          2.0                              2.0     2.2        8.7

Weighted average cash costs (cents per         
pound)                                          49.7                             49.7    (7.9)      13.9



Los Pelambres


Los Pelambres produced 74,100 tonnes of payable copper in the first quarter, in
line with forecast but 8.1% below the quarterly average for 2005. The decrease
was mainly due to lower throughput which resulted from a higher proportion of
harder primary ore under the current phase of the mine plan. The decrease in
production was also due to lower recoveries, partly compensated by the higher
ore grade.


Molybdenum production in the first quarter was 2,000 tonnes, 7.7% below the
quarterly average for 2005. The decrease was mainly due to the lower throughput
of ore and lower recoveries, offset by the higher molybdenum grade.


Cash costs in the quarter increased to 29.8 c/lb, compared with negative 17.1 c/
lb for 2005. The increase was mainly due to the lower by-product credit which
decreased by 32.3 c/lb, resulting from lower market molybdenum prices (which
averaged US$23.0/lb in the first quarter against US$32.0/lb in 2005). Molybdenum
production was also lower this quarter. Treatment and refining charges increased
by 7.2 c/lb, mainly due to price participation by smelters as the LME copper
price increased in the first quarter of 2006. On site and shipping costs rose by
7.4 c/lb compared with 2005 but remained in line with the fourth quarter of last
year. The increase was due mainly to the lower production level, together with
higher shipping costs, fuel prices and a stronger Chilean peso.


El Tesoro

Cathode production at El Tesoro was 20,800 tonnes in the first quarter, 3,800
tonnes below the quarterly average for 2005. This was mainly due to the expected
lower ore grade combined with lower recoveries, compensated in part by the
higher processing level following the completion of the 10.5 million tonnes per
year throughput expansion at the beginning of this year.


Cash costs at El Tesoro were 79.6 c/lb this quarter, 13.5 cents higher than the
average for 2005, due to the lower production level and higher movement of
material at the mine (which increased 19.3% compared with 2005). Higher input
costs included fuel and explosives prices and copper price-linked payments.


Michilla

Michilla produced 12,100 tonnes of copper cathodes in the first quarter, an
increase of 4.5% over the quarterly average for 2005. This was due to higher ore
grades and improved recoveries, partly offset by the lower expected treatment
level.


Cash costs were 120.2 c/lb, marginally above the average for 2005 but lower than
the current forecast for the year. The cash costs at Michilla mainly reflect
transport and loading costs, as well as higher input costs and the stronger
Chilean peso. These factors were mostly offset by the higher production level.


Transport


The transport division continued to perform strongly, with total rail tonnages
up 5.3% and road tonnages up 0.6% over the quarterly average for 2005.


Water

The water division had a strong first quarter, with volumes rising to 9.3
million cubic metres. This represented an increase of 12.5% compared with the
quarterly average of 2005 and 11.9% with the first quarter of 2005. This
reflected both higher domestic consumption and increased sales to mining
customers.





Los Pelambres                     Q1        Q2       Q3     Q4     Acc      Acc   Full Year
                                 2006      2006     2006   2006    2006     2005       2005    

Production statistics

Daily average ore               120.9                             120.9    129.0      128.1
treated ('000 tonnes)
Average ore grade                0.81                              0.81     0.79       0.80
(%)
Average recovery                 88.1                              88.1     91.0       89.2
(%)
Concentrate produced            194.8                             194.8    222.0      865.1
('000 tonnes)
Average concentrate              39.6                              39.6     37.5       38.5
grade (%)
Fine copper in                   76.6                              76.6     83.3      333.8
concentrate ('000 tonnes)
Payable copper in                74.1                              74.1     80.6      322.8
concentrate ('000 tonnes)

Average moly ore                0.026                             0.026    0.024      0.022
grade (%)
Average moly                     74.4                              74.4     78.1       79.9
recovery (%)
Payable moly                      2.0                               2.0      2.2        8.7
('000 tonnes)

Cash costs statistics

On-site and shipment             54.5                              54.5     41.8       47.1
costs (cents per pound)
Tolling charges for concentrates 34.8                              34.8     22.2       27.6
(cents per pound)
By - product credits            (59.5)                            (59.5)  (109.9)     (91.8)
(cents per pound) *
Cash costs                       29.8                              29.8    (45.9)     (17.1)
(cents per pound)

(*) Note: By-products credits do not include any costs attributable to the
production of molybdenum concentrate. By-product calculations also do not take
into account unrealised mark-to-market gains at the beginning or end of each
period.


El Tesoro                          Q1      Q2      Q3      Q4       Acc      Acc    Full Year
                                  2006    2006    2006    2006     2006     2005        2005
                      
Daily average ore                 29.7                             29.7     26.3        27.2
treated ('000 tonnes)
Average ore grade                 0.99                             0.99     1.34        1.23
(%)
Average recovery                  77.9                             77.9     82.4        80.2
(%)
Copper cathodes                   20.8                             20.8     26.3        98.1
('000 tonnes)
Cash costs                        79.6                             79.6     57.8        66.1
(cents per pound)



Michilla                           Q1      Q2      Q3      Q4       Acc      Acc   Full Year
                                  2006    2006    2006    2006     2006     2005       2005
                     
Daily average ore                 14.6                             14.6     15.3       14.9
treated
('000 tonnes)
Average ore grade                 1.13                             1.13     1.09       1.10
(%)
Average recovery                  76.2                             76.2     76.1       75.4
(%)
Copper cathodes                   12.1                             12.1     12.0       46.4
('000 tonnes)
Cash costs                       120.2                            120.2    102.4      118.8
(cents per pound)



Transport                          Q1       Q2      Q3      Q4      Acc      Acc   Full Year
                                  2006    2006    2006    2006     2006     2005       2005
                     
Rail tonnage transported         1,141                            1,141    1,126      4,336
('000 tons)
Road tonnage transported           383                              383      348      1,522
('000 tons)



Water                              Q1      Q2      Q3      Q4       Acc      Acc   Full Year
                                  2006    2006    2006    2006     2006     2005       2005
                     
Water volume sold - potable      9,304                            9,304    8,315     33,074
and untreated ('000 m3) **

(**) Note: Water volumes include water transportation of 270,000 m3 in Q1.


For further enquiries:

Desmond O'Conor, Antofagasta plc
[e-mail]                             (44) 20 7808 0988

Hussein Barma, Antofagasta plc                        (44) 20 7808 0988
[e-mail]

Alejandro Rivera, Antofagasta Minerals                (56-2) 377 5145
[e-mail]

Issued by:

Keith Irons, Bankside Consultants                      (44) 20 7367 8873
[e-mail]

Oliver Winters, Bankside Consultants                   (44) 20 7367 8874
[e-mail]



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