AGM Statement

Antofagasta PLC
09 June 2004



             Comments made by Mr Jean-Paul Luksic, Deputy Chairman
                  at the Annual General Meeting - 9 June 2004

I would like to give you a brief update on the Group's activities since the
Annual Report was issued in early May. First of all, our copper production
increased slightly by 5.3% to 193,100 tonnes for the first five months compared
to the same period last year.

Cash costs at Los Pelambres have continued to decrease mainly because of strong
molybdenum prices which have averaged US$10.50 per pound this year, compared to
US$4.40 last year. The Moly price has stayed firm and is today at around
US$14.25 per pound - as demand continues for stainless steel - particularly from
China.

Following the approval of the Environmental Impact Assessment for Los Pelambres
in March we now expect construction of the El Mauro Tailings Dam to begin by the
end of the year. We are continuing to evaluate the size of an eventual expansion
of the Concentrator Plant and expect to finalize the process during the second
half of the year.

Although 2003 was a year of uncertainty dominated by the Iraq war and the
faltering peace - a strong demand for metals developed towards the end of the
year which has had a major impact on commodity markets and followed the economic
upturn in the United States and some Asian countries, together with the
continued strength of China's economic performance. This trend has continued
into 2004 and copper prices should, in our opinion, remain around these levels
for the remainder of the year and could continue into 2005, sustained by
incredibly low copper stocks worldwide and limited new supply.

I would now like to comment on two issues which could affect the mining sector
in Chile. As mentioned in the Annual Report, the Government is proposing a
Royalty on the mining industry, which - in our opinion and in the opinion of the
mining sector - is inappropriate. It is a serious matter for the competitiveness
of the mining industry in Chile, as well as for the business reputation of the
country. We believe that the mining industry has a strong legal case based on
the strength of the mining concessions as well as the investment agreements
entered into with the Republic of Chile.

A second issue which has been widely reported in the Press is a potential energy
crisis in Chile caused by the shortage of gas flows from Argentina. After
talking to the Power Generators, we feel confident that mine production should
not be affected in the near future, but prices could rise as alternative fuels,
such as oil and coal, are imported as substitutes for the reduced supplies of
gas.

Regarding our Railway, it is now about 90% related to mining and continues to do
well with freight carried up 11% on the same period last year.

Aguas de Antofagasta which took over the water business in the Second Region at
the beginning of the year, is performing well and has growth potential in the
mining and industrial activities in its areas of operations.

Overall, the Group's prospects for 2004 are good - based on our production costs
and the outlook for strong copper prices in the near to medium term.

                                    - Ends -
For further enquiries:

Philip Adeane, Antofagasta plc Keith Irons, Bankside Consultants
[phone] [phone]
[e-mail] [e-mail]



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