Q1 Production Report

Antofagasta PLC
03 May 2007


Antofagasta plc

3 May 2007

Quarterly Production Report - Q1 2007

Highlights

  • Group copper production in Q1 was 105,900 tonnes, in line with forecast
    but 9.0% below the quarterly average for 2006.

  • Molybdenum production at Los Pelambres in Q1 was 2,100 tonnes compared
    with the quarterly average of 2,500 tonnes in 2006, mainly due to inventory
    movements and lower recoveries in the quarter.

  • Group cash costs for Q1 were 35.8 cents per pound compared with 40.2
    cents per pound in the 2006 full year, due to improved by-product credits
    and lower tolling charges.


Group Total                        Q1    Q2    Q3    Q4    Acc    Acc  Full Year
                                 2007  2007  2007  2007   2007   2006       2006

Total production of             105.9                    105.9  107.0      465.5
payable copper ('000 tonnes)

Total production of               2.1                      2.1    2.0        9.8
payable moly ('000 tonnes)

Weighted average cash            35.8                     35.8   49.7       40.2
costs (cents per pound)


Los Pelambres

Los Pelambres produced 70,700 tonnes of payable copper in the first quarter of
the year, a decrease of 12.8% over the quarterly average for 2006. This
reduction was mainly due to the expected decrease in grades and also to the
lower plant throughput resulting from the higher proportion of hard ore this
quarter. This was partly offset by the improved recoveries due to the increase
in plant capacity.

Molybdenum production in the first quarter was 2,100 tonnes, compared with the
quarterly average in 2006 of 2,500 tonnes. The decrease resulted mainly from
inventory movements. Lower recoveries and the lower plant throughput were offset
by higher molybdenum grades.

Cash costs during the first quarter of the year decreased to 4.2 cents per
pound, compared with 16.4 cents per pound in the 2006 full year. This resulted
from a combination of lower tolling charges and higher by-product credits,
partly offset by higher on-site costs. Tolling charges decreased by 14.0 cents
per pound, due to improved annual terms and lower price participation.
By-product credits (expressed in cents per pound of copper produced) improved by
6.6 cents as a result of lower copper production in the quarter and higher
molybdenum prices. On-site costs increased by 8.3 cents mainly due to the impact
of lower ore grades and plant throughput.

As explained in the Group's 2006 preliminary results announcement of 13 March
2007, there are 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 Mauro tailings dam project. The Group is confident that these claims
will not have any material impact on the project. Construction of the dam is
continuing in accordance with the original schedule and the project is expected
to be completed as planned by the end of 2007.


El Tesoro

Cathode production at El Tesoro in the first quarter was 23,600 tonnes,
marginally above the quarterly average for 2006. This reflected the increase in
ore grades, partly offset by the decrease in plant throughput and slightly lower
recoveries.

Cash costs in the first quarter were 87.4 cents per pound, 8.8 cents above the
previous full year but below forecast levels. The increase resulted from the
higher waste to ore ratio, and also from the higher prices and consumption of
sulphuric acid.


Michilla

Michilla produced 11,600 tonnes of copper cathodes in the first quarter of the
year, in line with forecast but slightly below the quarterly average of 2006.
This was due to minor reductions in throughput and ore grades, offset by
improved recoveries due to the higher proportion of sulphide ore processed.

Cash costs in Q1 were 123.1 cents per pound, 2.6% lower than the 2006 full year.
This was mainly due to lower transportation costs.


Transport

The transport division continued to perform strongly. Rail tonnages in the first
quarter were 1,253,000 tons, 11.7% higher than the quarterly average for 2006.
This compensated for a reduction in road tonnages.


Water

The water division also performed well with volumes up by 6.6% over the
quarterly average for 2006 mainly due to increased sales to industrial
customers.



Los Pelambres                   Q1    Q2   Q3   Q4      Acc      Acc  Full Year
                              2007  2007 2007 2007     2007     2006       2006
Production statistics

Daily average ore treated    125.0                    125.0    120.9      127.4
('000 tonnes)

Average ore grade             0.71                     0.71     0.81       0.81
(%)

Average recovery              92.5                     92.5     88.1       88.7
(%)

Concentrate produced         186.5                    186.5    194.8      842.6
('000 tonnes)

Average concentrate grade     39.6                     39.6     39.6       39.9
(%)

Fine copper in concentrate    73.1                     73.1     76.6      335.2
('000 tonnes)

Payable copper in             70.7                     70.7     74.1      324.2
concentrate ('000 tonnes)

Average moly ore grade       0.033                    0.033    0.026      0.028
(%)

Average moly recovery         66.7                     66.7     74.4       76.1
(%)

Payable moly                   2.1                      2.1      2.0        9.8
('000 tonnes)

Cash costs statistics

On-site and shipment costs    64.7                     64.7     54.5       56.4
(cents per pound)

Tolling charges for           25.7                     25.7     34.8       39.7
concentrates (cents per pound)

By - product credits         (86.3)                   (86.3)   (59.5)     (79.7)
(cents per pound) *

Cash costs                     4.2                      4.2     29.8       16.4
(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
                        2007   2007   2007   2007     2007     2006     2006

Daily average ore       27.8                          27.8     29.7     28.7
treated ('000 tonnes)

Average ore grade       1.21                          1.21     0.99     1.16
(%)

Average recovery        77.4                          77.4     77.9     78.1
(%)

Copper cathodes         23.6                          23.6     20.8     94.0
('000 tonnes)

Cash costs              87.4                          87.4     79.6     78.6
(cents per pound)



Michilla                  Q1     Q2    Q3    Q4       Acc       Acc     Full
                                                                        Year
                        2007   2007  2007  2007      2007      2006     2006

Daily average ore       15.2                         15.2      14.6     15.2
treated ('000 tonnes)

Average ore grade       1.04                         1.04      1.13     1.05
(%)

Average recovery        81.2                         81.2      76.2     78.2
(%)

Copper cathodes         11.6                         11.6      12.1     47.3
('000 tonnes)

Cash costs             123.1                        123.1     120.2    126.4
(cents per pound)


Transport                 Q1     Q2     Q3     Q4     Acc      Acc      Full
                                                                        Year
                        2007   2007   2007   2007    2007     2006      2006

Rail tonnage           1,253                        1,253    1,122     4,486
transported ('000 tons)

Road tonnage             321                          321      383     1,456
transported ('000 tons)


Water                     Q1     Q2     Q3     Q4     Acc       Acc     Full
                                                                        Year
                        2007   2007   2007   2007    2007      2006     2006

Water volume sold -   10,069                       10,069     9,304   37,798
potable and untreated 
('000 m3) **


(**) Note: Water volumes include water transportation of 300,000 m3 in Q1
(270,000 m3 in Q1 2006 and total for 2006 of 1,604,000 m3).

For further enquiries:

Alejandro Rivera
[e-mail]                     Santiago: (56-2) 377 5145


Desmond O'Conor
[e-mail]                London: (44) 20 7808 0988

Hussein Barma                            London: (44) 20 7808 0988
[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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