3rd Quarter Production Report
Antofagasta PLC
26 October 2000
26 October 2000
Antofagasta plc
Quarterly Production Report
3rd Quarter 2000
Highlights
* Los Pelambres increases daily ore throughput to over 100,000 tonnes per
day following plant optimisation.
* El Tesoro construction progress of 64%.
Group Total Q1 Q2 Q3 Accum Full Year
2000 2000 2000 2000 1999
Total copper production 82.3 85.4 87.0 254.7 60.5
('000 tonnes)
Weighted average cash costs 38.7 39.6 37.7 38.8 55.4
(cents per pound)
Commentary
Los Pelambres
During the third quarter, an average of 90,500 tonnes per day of ore was
processed, producing 74,300 tonnes of payable copper in concentrates in the
period, with no significant disruption despite an unusually severe winter in
Chile.
Further improvements on the two grinding lines were introduced during August
and September which resulted in average daily throughput during September
increasing to 100,200 tonnes. This represents 18% over the original design
capacity of the concentrator, and this rate of throughput of ore is expected
to be maintained for the remainder of the year.
Michilla
Michilla continued with its programme for the expansion of the open pit and
plant upgrade under its new mine plan. Treatment by leaching of both sulphide
and oxide ores continues to result in favourable recoveries. As a result,
production of copper cathodes in the third quarter was maintained at 12,700
tonnes.
El Tesoro
The El Tesoro project remains on schedule and within budget, with start up
expected in May 2001. Construction progress of the project was 64% by 30
September, including all of the engineering stage of the engineering,
procurement and management (EPC) contract with Kvaerner Metals. El Tesoro is
expected to produce 75,000 tonnes of copper in cathodes per year.
Exploration
The Phase II drilling programme at the Magistral copper skarn prospect in Peru
has been completed. Should the Group decide to go to the next stage, it would
involve further exploration at a cost of US$ 2.95 million in 2001 which
includes an infill drilling campaign of 12,000 metres and several
metallurgical, geotechnical and engineering studies to improve knowledge of
the deposit. The Group will earn a 51% joint venture interest in this prospect
under the terms of its option agreement with Inca Pacific Resources Inc. on
completion of this stage.
The Group's exploration programme in Chile has demonstrated the existence of a
copper-gold porphyry resource at Esperanza, located south of the Tesoro-NE
deposit. This contains 10 million tonnes of copper oxides with an average
copper grade of 0.62 per cent and 150 million tonnes of copper sulphides, with
an average copper grade of 0.81 per cent and 0.46 grammes of gold per ton.
Transport (FCAB)
The Railway maintained its increased tonnages over 1999 in the third quarter.
Total freight in the first nine months has increased 6% compared with the same
period last year.
Los Pelambres Q1 Q2 Q3 Accum Full Year
2000 2000 2000 2000 1999
Daily average ore treated 84.7 90.0 90.5 88.8 -
('000 tonnes)
Average ore grade 1.04 1.01 0.95 1.00 -
(%)
Average recovery 91.4 93.0 93.2 92.5 -
(%)
Concentrates produced 158.5 171.6 179.1 509.2 -
('000 tonnes)
Average concentrate grade 44.8 43.8 42.9 43.8 -
(%)
Copper in concentrates 68.6 72.6 74.3 215.5 -
('000 tonnes)
Cash costs 34.9 35.9 33.8 35.0 -
(cents per pound)
Michilla Q1 Q2 Q3 Accum Full Year
2000 2000 2000 2000 1999
Daily average ore treated 12.1 11.7 11.7 11.8 12.1
('000 tonnes)
Average ore grade 1.72 1.70 1.65 1.69 1.77
(%)
Average recovery 74.5 71.6 72.0 72.8 77.3
(%)
Copper cathodes 12.6 12.8 12.7 38.1 51.3
('000 tonnes)
Copper in concentrates 1.1 - - 1.1 9.2
('000 tonnes)
Cash costs 58.8 60.2 60.2 59.7 55.4
(cents per pound)
Transport (FCAB) Q1 Q2 Q3 Accum Full Year
2000 2000 2000 2000 1999
Rail tonnage transported 767 838 834 2,439 3,118
('000 tons)
Enquires:
Alejandro Rivera
arivera@anaconda.cl
Santiago: (56-2) 2405145
Hussein Barma
hbarma@antofagasta.co.uk
London: (44-20) 73748091
Issued by:
Keith Irons
Bankside Consultants Ltd
keith@bankside.com
London (44-20) 72207477
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