Re Joint Venture

Antofagasta PLC
25 July 2002

                 Antofagasta forms new joint venture with CVRD

LONDON: 25 JULY 2002 - Antofagasta plc announces the formation of a joint
venture in Peru with Companhia Vale do Rio Doce ('CVRD'), the world's largest
producer and exporter of iron ore and pellets, based in Rio de Janeiro, Brazil.
The joint venture called Cordillera de las Minas S.A. ('Cordillera') has as its
objective the development of mineral exploration activities near Cuzco in
southern Peru, in an area of approximately 60,000 square kilometres ('Area of
Interest').  The formation of Cordillera consolidates the agreement announced on
June 7, 2002 which envisaged a 50/50 joint venture.

Under the definitive joint venture agreement dated July 18, 2002,  (i) Anaconda
Peru S.A., Antofagasta's subsidiary, transferred its mining rights in the Area
of Interest to Cordillera; (ii) CVRD established a company, called Compania
Minera Andino-Brasilera (CMAB), which became a shareholder of Cordillera with a
nominal interest until the exercise of the option referred to below; and (iii)
CVRD/CMAB has committed to invest US$6.7 million over a period of three years in
mineral exploration in the Area of Interest, and in exchange was granted an
option to acquire a 50% stake in Cordillera.

The agreement significantly complements Antofagasta's existing exploration
activities in Peru, and is another step forward in its strategy of participating
in the development of the mining industry in Latin America.

Enquiries - London                                          Enquiries - Santiago
Antofagasta plc                                        Antofagasta Minerals S.A.
Tel: [phone]                                          Tel [phone]
Philip Adeane                                                       Ricardo Muhr
Email: [e-mail]                    Email: [e-mail]

                                                           Issued by Keith Irons
                                                       Email: [e-mail]
                                                          Tel:  [phone]


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