Q1 Production Report

Antofagasta PLC
30 April 2008


30 April, 2008

                                Antofagasta plc

                      Quarterly Production Report - Q1 2008

Highlights


  • Group copper production in Q1 was 114,600 tonnes, 7.1% above the
    quarterly average for 2007.

  • Molybdenum production at Los Pelambres in the first quarter was 1,800
    tonnes, below the quarterly average for 2007 but in line with year-to-date
    forecast.

  • Group cash costs in Q1 were 72.2 cents per pound compared with 31.6
    cents per pound in the 2007 full year, due to lower by-product credits
    (reflecting lower molybdenum production) and higher on-site costs, partly
    offset by lower tolling charges.

  • In addition to the sale of a 30% interest in the Esperanza project and
    the El Tesoro mine as announced on 24 April as part of the Group's plan for
    the development of those properties, the Group has also acquired interests
    in two exploration licences in Zambia and has entered into an agreement to
    explore for thermal energy resources in Chile.


Group Total                Q1     Q2     Q3    Q4   Acc     Acc    Full
                         2008   2008   2008  2008  2008    2007    Year
                                                                   2007
                       
Total production of
payable copper          114.6                     114.6   105.9   428.1
 ('000 tonnes)

Total production of
payable moly              1.8                       1.8     2.1    10.2
('000 tonnes)

Weighted average cash
costs                    72.2                      72.2    35.8    31.6
(cents per pound)


Los Pelambres


Los Pelambres produced 79,100 tonnes of payable copper in the first quarter of
the year, in line with expectations and an increase of 9.2% over the quarterly
average for 2007. This was the result of increased plant throughput due to a
higher proportion of softer secondary ore treated, marginally offset by a slight
decrease in the average recovery obtained during the period. Shipments of
payable copper in Q1 were 65,800 tonnes, 13,300 tonnes lower than production due
to differences in shipping and loading schedules, which were subsequently
shipped in April.


Molybdenum production was 1,800 tonnes in the first quarter of the year, an
expected decrease of 800 tonnes compared with the quarterly average for 2007.
This reduction is mainly explained by the lower molybdenum ore grade in the
quarter, partly offset by the higher plant throughput. The decrease in ore grade
is in accordance with the mine plan, under which areas with a lower molybdenum
grade are now being mined.


Cash costs in Q1 2008 were 37.4 cents per pound, an increase of 48.2 cents per
pound compared with negative 10.8 cents per pound in the 2007 full year. This
resulted from a combination of lower by-product credits and higher on-site and
shipping costs, offset by lower tolling charges.


By-product credits decreased by 33.5 cents per pound, due to the lower
molybdenum volumes and the impact of the higher copper production on the credits
expressed in cents per pound of copper produced, partly compensated for by the
higher molybdenum market prices. On-site and shipping costs increased as
forecast by 24.1 cents per pound, mainly explained by higher energy costs due to
the new electricity supply contract that took effect from January 2008 and which
reflects the current tight market conditions. Shipping costs have also risen as
a consequence of higher fuel prices.


El Tesoro


Cathode production at El Tesoro in the first quarter of the year was 23,900
tonnes, 2.8% above the quarterly average for 2007, and in line with forecast.
This increased production was achieved mainly due to the higher level of ore
treated, offset by the lower average ore grade.


Pre-stripping works have continued in line with plan at the Tesoro North-East
deposit, which now forms part of the El Tesoro mine plan.


Cash costs in Q1 2008 were 129.4 cents per pound, below year-to-date forecast
but 19.6 cents above the 2007 full year mainly as a result of higher acid and
energy costs.


Michilla


Michilla produced 11,500 tonnes of copper cathodes in the first quarter of the
year, marginally above the quarterly average for 2007. The higher ore throughput
and the higher metallurgical recovery in the quarter more than compensated for
the decline in the ore grade.


Cash costs were 191.4 cents per pound in the first quarter of the year, below
the forecast for the quarter but 47.9 cents above the 2007 full year, reflecting
higher acid and energy costs, as well as higher costs of third party services.


Projects


The Esperanza project continues to progress on schedule, with first production
expected by the fourth quarter of 2010. Pre-stripping was initiated in early
February and the construction of early works (such as camps, access roads and
other facilities) has also started with more than 1,000 workers now on site. The
full environmental approval is expected to be obtained by the third quarter of
this year, after which the construction of the plant will commence. As announced
on 24 April 2008, project costs (before working capital and any financing costs)
are currently estimated at US$1.9 billion, mainly as a result of cost escalation
expected to the completion of the project.


On 24 April Antofagasta announced that it had entered into an agreement with
Marubeni Corporation under which Marubeni will acquire a 30% interest in the
Esperanza project (including the Telegrafo deposit) and the El Tesoro mine
(including the Tesoro North-East deposit). At closing Marubeni will pay a cash
consideration of US$1.31 billion plus interest to completion and other closing
adjustments and will be responsible for its share of development cost of the
Esperanza project. Closing of the transaction is subject to a number of
conditions including receipt of necessary environmental approvals at Esperanza.
To facilitate this transaction certain mining properties were acquired through
Antomin Limited.


During Q1, feasibility studies were initiated for the Reko Diq project in
Pakistan and the Antucoya project in Chile's II Region; the purchase of the
Antomin properties mentioned above completes the ownership of property necessary
for the Antucoya project. The Reko Diq project is advancing on schedule to
finish its feasibility study in early 2009. The feasibility contract has been
assigned to SNC Lavanin from Toronto and, following the increase in the resource
estimate at the end of 2007, the company is now carrying out infill drilling.

Exploration


The Group progressed with its exploration programme both in Chile and in the
rest of the world in accordance with its plan for the year.

As part of its long-term strategy for growth, during April the Group entered
into an agreement with TEAL Exploration & Mining Incorporated ('TEAL') to
acquire an initial 30% interest in two of TEAL's exploration licences on the
Zambian Copperbelt covering an area of approximately 2,067 sq. km. for a
consideration of US$5 million. The agreement gives the Group the right to earn
an additional 20% interest by incurring US$4.5 million of exploration
expenditure (of which US$2 million is committed expenditure) over a period of 4
years. TEAL is a company listed on the Toronto Stock Exchange and the JSE
Limited with exploration and project interests in Africa.

As part of the Group's decision to enter the energy exploration business as
explained in its Preliminary Results Announcement of 13 March, during April the
Group signed a memorandum of understanding with Empresa Nacional del Petroleo
('ENAP') of Chile for the exploration and exploitation of potential sources of
geothermal energy. The memorandum of understanding envisages that these
activities will be carried out through a newly-created entity in which the Group
will hold a 60% interest and ENAP will hold 40% interest.

Commodity prices

The LME copper price in 2008 Q1 averaged 352.1 cents per pound, compared with
269.5 cents per pound in 2007 Q1 and 323.3 cents per pound in the 2007 full
year.

The market molybdenum price in 2008 Q1 averaged US$33.2 per pound, compared with
US$26.1 in 2007 Q1 and US$30.2 per pound in the 2007 full year.


Transport

Combined rail and road volumes for the quarter were 5.2% below the average for
2007. The outlook for the year remains positive, with volumes for the full year
expected to be above those achieved in 2007.


Water

The water business performed strongly in the first quarter of the year. Volumes
sold increased to 10.7 million cubic metres, a 7.8% increase compared with
quarterly average for 2007, due to improved sales to both industrial and
regulated clients.



Interim Management Statement

This report represents the Interim Management Statement for the purposes of the
UK Listing Authority's Disclosure and Transparency Rules. Other than as set out
above, there have been no significant changes in the financial position of the
Group in the quarter ended 31 March 2008.



Los Pelambres                 Q1     Q2    Q3     Q4   Acc     Acc    Full
                            2008   2008  2008   2008  2008    2007    Year
                                                                      2007
Production statistics

Daily average ore treated  138.8                     138.8   125.0   126.3
('000 tonnes)

Average ore grade           0.71                      0.71    0.71    0.71
(%)

Average recovery            91.1                      91.1    92.5    92.3
(%)

Concentrate produced       272.0                     272.0   186.5   872.1
('000 tonnes)

Average concentrate grade   30.2                      30.2    39.6    34.5
(%)

Fine copper in concentrate  82.0                      82.0    73.1   300.1
('000 tonnes)

Payable copper in           79.1                      79.1    70.7   289.9
concentrate ('000 tonnes)

Average moly ore grade     0.019                     0.019   0.033   0.030
(%)

Average moly recovery       73.5                      73.5    66.7    74.2
(%)

Payable moly                 1.8                       1.8     2.1    10.2
('000 tonnes)

Cash costs statistics

On-site and shipping costs 100.4                     100.4    64.7    76.3
(cents per pound)

Tolling charges for
concentrates                20.3                      20.3    25.7    29.6
(cents per pound)

By - product credits       (83.2)                    (83.2)  (86.3) (116.7)
(cents per pound) *

Cash costs                  37.4                      37.4    4.2    (10.8)
(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
                       2008   2008   2008   2008   2008    2007     Year
                                                                    2007
                        
Daily average ore      29.8                        29.8    27.8     26.8
treated
('000 tonnes)

Average ore grade      1.16                        1.16    1.21     1.23
(%)

Average recovery       76.8                        76.8    77.4     77.8
(%)

Copper cathodes        23.9                        23.9    23.6     93.0
('000 tonnes)

Cash costs            129.4                       129.4    87.4    109.8
(cents per pound)


Michilla                  Q1     Q2     Q3     Q4    Acc     Acc    Full
                        2008   2008   2008   2008   2008    2007    Year
                                                                    2007
                        
Daily average ore       16.2                        16.2    15.2    14.8
treated
('000 tonnes)

Average ore grade       0.98                        0.98    1.04    1.03
(%)

Average recovery        80.6                        80.6    81.2    79.1
(%)

Copper cathodes         11.5                        11.5    11.6    45.1
('000 tonnes)

Cash costs             191.4                       191.4   123.1   143.5
(cents per pound)


Transport                 Q1     Q2     Q3     Q4     Acc     Acc   Full
                        2008   2008   2008   2008    2008    2007   Year
                                                                    2007

Rail tonnage           1,224                        1,224   1,253  5,008
transported
('000 tons)

Road tonnage             273                         273     321   1,313
transported
('000 tons)



Water                      Q1     Q2     Q3     Q4    Acc     Acc   Full
                         2008   2008   2008   2008   2008    2007   Year
                                                                    2007
                        
Water volume sold -
potable                10,743                      10,743  10,069 39,858
and untreated ('000 m3)
**

(**) Note: Water volumes include water transportation of 353,000 m3 in Q1 (
300,000 m3 in Q1 2007 and total for 2007 of 1,258,000 m3 ).



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