AGM Statement

Antofagasta PLC
14 June 2005

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                                ANTOFAGASTA PLC


                COMMENTS MADE BY MR. JEAN-PAUL LUKSIC, CHAIRMAN

                         AT THE ANNUAL GENERAL MEETING




London:  14 June 2005:- Copper production overall was slightly up on forecasts
for the first five months at 194,800 tonnes of payable copper and we should meet
the 2005 forecast of 470,000 tonnes.



Los Pelambres saw an increase compared to the same period last year from 129,000
tonnes of payable copper to 132,500 tonnes in the first five months.  I should
also mention that your Board has, as anticipated, now formally ratified the
Pelambres board decision for the expansion of ore throughput from 125,000 tonnes
per day to 140,000 tonnes per day. The cost of this expansion is estimated at
US$180 million and is expected to be completed by mid-2007.  This first step in
our latest expansion plans further enhances the economics of the Los Pelambres
operation and allows further incremental expansions which are currently in the
planning stage.  Work on the US$457 million Mauro tailings dam project is also
now under way and the project is on time although these are early days. You will
recall that provision for this sum has already been made from cash-flow.



El Tesoro continues to do better than expected and crushing plant expansion will
average 10.5 million tonnes per year.  Increased plant capacity will grow as
mentioned after a marginal $7 million investment.



The Michilla mine is facing some difficulties with lower production due to
declining grades and a tunnel landslide: however, this should not have any major
impact on Group results overall. In addition we are widening the exploration
programme at Michilla to expand the mine life beyond 2011.



We take safety matters very seriously indeed and can report one of the highest
safety indices in the industry.  Regrettably, however, I have to report one
fatal accident at Michilla which was obviously of great concern to us.   The
Group has always been very conscious of its social and environmental
responsibilities. It continues and will continue to exert great effort in this
direction and this has been recognised by the Chilean authorities (who set high
standards on this) and other institutions in various awards.



A few words on new projects might be appropriate.  We have started work on
Esperanza, which is near to El Tesoro, and the exploration tunnel is well under
way. This will allow us to complete the pre-feasibility study by the end of
2006.  We continue to look for growth opportunities both inside and outside
Chile.



The Group has benefited from strong commodity prices and the considerable and
valuable commitment of its management and personnel.



Both the transport and water companies continue to do well. Mining sector growth
in the area to date has been of benefit to both our railway and the water
companies with, in addition, some new mining projects in the offing.



Overall the Group's prospects for 2005 are good based on copper and molybdenum
prices.  We believe that copper market conditions will continue firm due to
critically low stock levels; however, the copper price should ease slightly
towards the end of the year when the smelter maintenance shutdowns finish.  The
molybdenum market has also benefited from high steel consumption in China and
the growing demand for catalyst fabrications worldwide.



Before concluding, I should mention the matter of the proposed royalty charges
specific to the mining industry in Chile.  Congress approved in May the
imposition of a 5% mining tax on operational profits. Whilst regrettable, we
estimate the overall impact on the Group as adding 3% on the effective tax rate.
  Nevertheless, the impact has been capped considering that mining property
rights have not been affected and that companies may enter into a contract with
the Chilean State that cannot be modified by a future law and which guarantees
that there will be no further specific taxes for mining for a period of 12
years.



As you will recall, 2004 was an excellent year for Antofagasta, and based on
commodity prices and performance to date, 2005 should be another good year.  Our
financial position remains solid and we have now initiated a key project for the
future development of the Group.  We will continue to focus on developing our
promising opportunities for growth.





                                    - Ends -



For further enquiries:

Desmond O'Conor, Antofagasta plc            Keith Irons,Bankside Consultants

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