AGM Statement

Antofagasta PLC
13 June 2007


For immediate release

5 Princes Gate                               Telephone: + 44 20 7808 0988
London                                       Fax: + 44 20 7808 0986
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United Kingdom

                COMMENTS MADE BY MR. JEAN-PAUL LUKSIC, CHAIRMAN,
                       AT THE 2007 ANNUAL GENERAL MEETING

London, 13 June 2007

We have had a year of record copper prices and strong molybdenum prices and this
has enabled us to show record results for 2006. This is clearly reflected in the
turnover and EBITDA figures of the Group where, in the former case, turnover
nearly quadrupled from US$978 million in 2003 to almost US$3.9 billion in 2006.
In the case of EBITDA, growth was some four and a half times over the same years
- US$524 million in 2003 rising to US$2.9 billion in 2006.

The current strength in the copper price has continued into 2007 with an average
price to date of 303.0 US cents per pound versus an average 305.3 US cents per
pound in 2006. Similarly the average price of molybdenum has moved higher and
has averaged US$27.9 per pound to date against an average US$24.8 last year.

Antofagasta has benefited enormously during this period and in each of the last
three years we have felt it appropriate to pass this on to shareholders in the
form of special dividends. I would reiterate what I mentioned last year - your
Board, when considering the level of dividend to be paid, considers that the
ordinary dividends (both interim and final) should be a reflection of how the
company is doing but at a sustainable long term level. Any special dividend that
we recommend would reflect favourable market conditions after taking into
account expected future capital expenditure and potential acquisition activity.

Later in this meeting we hope, therefore, that you will approve the final
ordinary dividend of 5.0 US cents and the special dividend of 38.0 US cents
which makes a total dividend for 2006, including the interim, of 48.2 US cents -
which is a historical high. This compares with total dividends paid of 22.0 US
cents relating to 2005, 15.8 US cents to 2004 and 7.0 US cents to 2003 before
the commodity price surge.

During 2006, Philip Adeane retired from the Board having served as Managing
Director from 1982 to 2005 and as Non-Executive Director thereafter. On your
behalf, I would like to thank him for his enormous contribution over a long
period of time. He continues to act as a senior advisor to the Board and we are
glad to be able to continue to draw on his experience. I am also pleased to
welcome Bill Hayes, who joined the Board as an independent Non-Executive
Director last September. Bill was previously a senior executive with Placer Dome
and a former president of the Chilean Mining Council. He has extensive
experience of the mining industry both in Chile and globally which will benefit
the Group in its future development. I believe your Company now has a strong and
well balanced Board to support the management team led by Marcelo Awad since
2004.

It would be appropriate, therefore, for me to give you a brief update of where
we are as a Group today. The current strength in the copper and molybdenum
markets is that there has been no visible decline in demand worldwide for
commodities even after some lower construction indicators in the United States
towards the end of last year, something that rather surprised the market which
had expected a consequential downward adjustment in the copper price. Growth in
Chinese demand has, for example, comfortably exceeded the drop in US demand,
while Japan and Europe have also performed well. We are not aware of any
significant stock building and neither are we aware of any substantial growth in
production, hence our belief that the copper price will remain firm in the
foreseeable future.

We continue to look cautiously at these exceptionally strong prices but there
does seem now to be a consensus these should remain high compared to historical
levels well into next year. We also believe these are partly supported by higher
production costs and that historical cost levels are no longer a fair measure of
where these may eventually return. One result of these high prices and
consequent high profits is a rise in the prices of mining assets.

For this reason we tend to focus on earlier stage acquisitions which inevitably
have long production gestation periods but where we know we can add value even
when the copper market settles below where it is today. It is in this light that
we entered into prospective mine projects in Pakistan, Colombia and Ecuador
during 2006 and are continuing to look at many other similar opportunities. We
are progressing with our exploration programmes in these areas and in
particular, expect to complete a new resource estimate by the end of this year
at Reko Diq in Pakistan, where we have a joint venture with Barrick Gold
Corporation. A pre-feasibility study is expected to be completed next year. It
is perhaps worth mentioning here that I recently took the Board to visit
Pakistan and the mine site in Baluchistan and we were all very encouraged by
what we saw and our progress to date.

Our focus on Chile continues and we are seeking to expand existing operations
and develop new opportunities. We are now reviewing the feasibility study for
the Esperanza copper-gold project about which you are already aware and the
Board is expected to decide on the outcome of the feasibility study in the next
few weeks. We are also progressing with the feasibility study for a possible
expansion of Los Pelambres by 25% from the current 140,000 tonnes per day
throughput capacity. In addition, the technical studies at Antucoya and the
exploration programme in the Sierra Gorda district could extend or enhance
operations at Michilla and El Tesoro respectively. Growth prospects for the
transport and water divisions also remain good with the start-up of new mining
projects in Northern Chile.

We believe it makes sense to conserve some of our earnings for the potential
investment this all implies, and I might mention here that over the next five
years this could amount to approximately US$3 billion.

I should also perhaps touch here on the El Mauro tailings dam project at Los
Pelambres where the construction stage is now nearly complete. As previously
reported, we have faced a series of court cases - not directly against Los
Pelambres - but which could have a possible impact on us. We remain confident
that these will all in the end be satisfactorily resolved because we have
complied with all the required processes and permits needed.

Another area of concern affecting our business is energy supply. We, along with
others in the Chilean mining industry, have made all the necessary arrangements
to support the generators and are confident that the Government is taking the
necessary steps to assure the general integrity of the power grids.

The Group's projects and opportunities I referred to earlier should be seen
against a background of solid performances by the Group's existing operations.
As indicated by our production and financial results for the first quarter of
2007 released during May, we expect to meet our full year production target of
456,000 tonnes of copper with costs in line with expectations.

I want to emphasise again that we are extremely conscious of our environmental
and community responsibilities throughout the Group and in the countries in
which we are working. We are certain that in the long run this has to be of
great benefit to the Group both for our existing operations and new projects.

Similarly and most importantly we take safety very seriously indeed. The Group's
record has been well earned and awards have been made by various authorities
over several years recognising this. We are always looking for improvement and
we shall always strive for this, both by procedures but also by training. We do
not believe in financial results coming at the expense of safety.

Finally, labour relations across the Group remain excellent. I am pleased to
report that Los Pelambres and Michilla, both of which had labour contracts
expiring in the last quarter of this year, were able to conclude new agreements
with their respective unions well ahead of time by the end of May. Los Pelambres
has entered into a new 45 month agreement with its mine-port union while
Michilla has concluded a 48 month agreement with its labour union. The next
negotiations in the Group are not due until 2008.

In conclusion, we expect 2007 to be another good year for the Group with good
operational performances supported by favourable market conditions and a sound
balance sheet. We will also continue to progress with the opportunities we have
assembled over the years with the help of this strong financial position. I
think you will agree that we have a lot to be getting on with and I believe
these projects could substantially enhance the current production profile in the
medium to longer term.


--------------------------------       ----------------------------------
Enquiries                              Issued by
Antofagasta plc                        Bankside Consultants
Tel: [phone]                  Tel: [phone]
www.antofagasta.co.uk                  Keith Irons
Desmond O'Conor                        Email: [e-mail]
Email: [e-mail]       Oliver Winters
Hussein Barma                          Email: [e-mail]
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