Second Quarter Production
Antofagasta PLC
31 July 2001
ANTOFAGASTA PLC
Quarterly Production Report - 2nd Quarter 2001
31 July 2001
Highlights
* Group copper production from current operations in Q2 increased to
101,900 tonnes from 92,000 tonnes in Q1.
* Group average cash costs reduced to 39.0 cents per pound in Q2 from 43.2
cents per pound in Q1.
* The El Tesoro ramp-up is in progress and production of 9,000 tonnes
in Q2 exceeded the plan during the commissioning period.
Group Total Q1 Q2 Q3 Q4 Acc. Acc. Full Year
2001 2001 2001 2001 2001 2001 2000
Total copper production 92.0 101.9 193.9 167.7 351.1
('000 tonnes)
Weighted average 43.2 39.0 41.0 39.2 39.2
cash costs (cents per pound)
Note - El Tesoro remained under development in Q2, producing 9,000 tonnes of
cathodes during this commissioning period. This production has not been
included in the group figures above relating to current operations.
Los Pelambres
Ore processing levels at Los Pelambres during Q2 averaged 102,500 tonnes per
day (tpd), 4.1% above the Q1 average of 98,500 tpd. Performance improved as
the repairs to the lining of the SAG mills in Q1 were completed. During the
first six months of 2001, Los Pelambres produced 170,000 tonnes of payable
copper in concentrates, compared with 141,200 tonnes in the first six months
of 2000 - an increase of 20%.
Cash costs in Q2 were 35.1 cents per pound, compared with 39.2 cents per pound
in Q1 when unscheduled repair work was carried out to the conveyor belt system
and grinding lines. Cash costs in the first six months of this year averaged
37.0 cents per pound, compared with 35.4 cents in the first six months of
2000. The increase reflected higher treatment and refining charges (TC/RCs)
and a higher stripping ratio in accordance with the mine plan, as well as the
repair work incurred in February.
Los Pelambres is currently installing a temporary pebble crusher to optimise
processing levels. This will be in operation in August and should enable
daily throughput of between 100,000 and 110,000tpd to be maintained. As
announced in June, Los Pelambres approved a marginal expansion requiring an
investment of approximately US$24 million to install a permanent pebble
crusher in the grinding lines and also to increase the cyclones capacity. The
crusher is expected to be operational by August 2002 and will increase ore
processing levels to an average of 114,000tpd over the mine plan.
Michilla
Michilla produced 12,300 tonnes of cathodes in Q2 compared with 11,500 tonnes
in the previous quarter. Production in Q1 was affected by a fault in one of
the four transformers at the electro-winning plant.
Cash costs in Q2 were 67.4 cents per pound compared with 71.6 cents in Q1,
following restoration of production to normal levels. Cash costs in the first
six months of 2001 averaged 69.4 cents compared with 59.4 cents in the first
six months of 2000. The increase was due to lower grades and higher stripping
costs expected during this phase of the current mine plan added to the lower
production levels resulting from the transformer fault in Q1.
El Tesoro
El Tesoro produced its first 1,000 tonnes of cathodes by 30 April, three weeks
ahead of schedule. Commissioning continued with the ramp-up of production
through the remainder of the quarter, with 9,000 tonnes of cathodes produced
by the end of June compared with 6,200 tonnes under the production plan. El
Tesoro also made initial shipments of 2,350 tonnes during this period.
Construction is now complete and planned production levels are expected to be
achieved in Q3, when El Tesoro enters its operational phase. El Tesoro will
produce 41,300 tonnes of cathodes in 2001, rising to 85,000 tonnes in 2002.
Exploration
A drilling campaign was completed in May to demonstrate reserves at the
Esperanza project located near the El Tesoro mine. Esperanza is estimated to
have open pit reserves of 70 million tonnes of copper oxides with an average
grade of 0.42% and 268 million tonnes of sulphides with an average copper
grade of 0.70% and 0.33 g/t of gold. This represents a substantial increase
in its reserves. Engineering studies will be carried out over the next two
months to evaluate the potential for a mine at Esperanza.
In April, the Group announced that it had acquired a 51% interest, through
Minprop Ltd., in a number of exploration properties located in Chile's Second
Region. A drilling programme is now underway at Centinela, which is located
35 kilometres south of El Tesoro, and the results are expected in August.
The 14,000 metre drilling programme (Phase 3) at Magistral in Peru is now 80%
complete and is expected to be concluded in August. Results from Magistral to
date support previous estimates of an inferred resource of 190 million tonnes
of 0.83% copper and 0.062% molybdenum.
Transport
Rail tonnages which include both the Chilean and Bolivian operations were
higher in Q2 at 949,000 tons compared with 905,000 tons in Q1. Tonnages for
the first six months of this year were 1,854,000 tons compared with 1,901,000
tons in the first six months of 2000.
Q1 Q2 Q3 Q4 Acc. Acc. Full Year
Los
Pelambres 2001 2001 2001 2001 2001 2000 2000
Daily average ore treated 98.5 102.5 100.5 87.4 93.1
('000 tonnes)
Average ore grade 1.04 1.10 1.07 1.02 0.98
(%)
Average recovery 91.6 91.3 91.5 92.2 92.4
(%)
Concentrate produced 194.6 209.1 403.8 330.1 714.5
('000 tonnes)
Average concentrate grade 42.8 44.3 43.6 44.3 43.3
(%)
Fine copper in concentrate 83.2 92.6 175.9 146.2 309.5
('000 tonnes)
Payable copper in concentrate 80.5 89.6 170.0 141.2 298.9
('000 tonnes)
Cash costs 39.2 35.1 37.0 35.4 35.6
(cents per pound)
Michilla Q1 Q2 Q3 Q4 Acc. Acc. Full Year 2000
2001 2001 2001 2001 2001 2000
Daily average ore treated 11.6 12.2 11.9 11.9 11.8
('000 tonnes)
Average ore grade 1.53 1.48 1.50 1.71 1.67
(%)
Average recovery 72.4 74.4 73.4 73.1 72.6
(%)
Copper cathodes 11.5 12.3 23.8 25.4 51.1
('000 tonnes)
Copper in concentrate - - - 1.1 1.1
('000 tonnes)
Cash costs 71.6 67.4 69.4 59.4 59.8
(cents per pound)
Transport Q1 Q2 Q3 Q4 Acc. Acc. Full Year
2001 2001 2001 2001 2001 2000 2000
Rail tonnage transported 905 949 1,854 1,901 3,856
Enquiries to :
Alejandro Rivera
arivera@aminerals.cl
Santiago (56-2) 3775145
Hussein Barma
hbarma@antofagasta.co.uk
London (44-20) 7382 7862
Distributed by :
Keith Irons
Bankside Consultants Ltd
keith@bankside.com
London (44-20) 7444 4140
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