IFRS Adoption

Antofagasta PLC
13 September 2005

                                ANTOFAGASTA PLC

              Adoption of International Financial Reporting Standards
                            and Restatements for 2004

London, 13 September 2005

Introduction

For 2004 and previous years, Antofagasta plc has prepared its consolidated
financial statements under UK generally accepted accounting principles ('UK GAAP
').  In accordance with EU Regulations, Antofagasta is required to adopt
International Financial Reporting Standards ('IFRS') for accounting periods
beginning on or after 1 January 2005 and prepare its consolidated financial
statements on an IFRS basis.

Antofagasta will report under IFRS, for the first time, in its interim results
for the six months to 30 June 2005 (due for release on 13 September 2005).  Its
first full financial statements under IFRS will be in its 2005 Annual Report.
The IFRS results for the 2005 half year and the 2005 full year will include
comparative IFRS information for the relevant corresponding periods in 2004.

This statement is a brief summary of how Antofagasta's 2004 consolidated
results, both for the half year and full year, are affected by the change to
IFRS.  The introduction of IFRS does not affect the cash flow generation of
Antofagasta's businesses or its borrowing arrangements and therefore will not
affect any commercial decisions taken by the Group.

Headline impacts

The impact of the transition from UK GAAP to IFRS on headline numbers is as
follows:
                                                 2004 Half Year                         2004 Full Year
                                          UK GAAP  Adjustments    IFRS           UK GAAP  Adjustments    IFRS

                                           US$'m      US$'m      US$'m            US$'m      US$'m      US$'m
Turnover                                   767.7      (14.3)     753.4           1,908.7      33.4     1,942.1
EBITDA                                     524.6      (18.9)     505.7           1,328.8      27.9     1,356.7
Profit before tax                          438.9      (23.5)     415.4           1,162.7      35.8     1,198.5
Net earnings                               222.3      (14.8)     207.5            558.3       21.2      579.5

                                           US$'m      US$'m      US$'m            US$'m      US$'m      US$'m
Net assets                                1,539.4      27.8     1,567.2          1,911.6     158.4     2,070.0
Net equity                                1,079.5      29.1     1,108.6          1,322.7     142.8     1,465.5

                                           cents      cents      cents            cents      cents      cents
Earnings per share                         112.7      (7.5)      105.2            283.1       10.8      293.9



Principal adjustments to net earnings and net equity

The principal adjustments to net earnings (profit after tax and minorities) and
net equity (excluding minority interests) are as follows:

                                                     2004 Half Year                         2004 Full Year
                                                     Net       Net                          Net       Net
                                                  earnings    equity                     earnings    equity

                                                    US$'m     US$'m                        US$'m     US$'m
UK GAAP                                             222.3    1,079.5                       558.3    1,322.7
Mark-to-market of provisionally priced             (11.7)      2.0                         12.0       25.7
sales
Mark-to-market of financial                          4.3      (3.1)                         6.2      (1.2)
derivatives
Exchange differences on                             (7.7)       -                           0.5        -
intra-group items
Reversal of proposed ordinary                        -         29.6                         -        126.2
dividends
Other items                                          0.3       0.6                          2.5      (7.9)
IFRS                                                207.5    1,108.6                       579.5    1,465.5


The principal adjustments to the Group's reported financial information from the
adoption of IFRS are:

•          Mark-to-market of provisionally priced sales

Under IFRS, copper and molybdenum sales, which remain open as to pricing at a
period end, are marked-to-market at each balance sheet date.  Under UK GAAP, the
Group's accounting treatment was to value sales, which remain open as to final
pricing at the period end, in aggregate at the lower of provisional invoice
prices and mark-to-market prices at the balance sheet date.  Such sales may
remain open for up to six months from initial invoicing and this change in
accounting treatment mainly results in short-term timing differences in profit
recognition.

•          Mark-to-market of financial derivatives

The Group uses derivative financial instruments to reduce exposure to foreign
exchange, interest rate and commodity price movements, and does not use such
instruments for trading or speculative purposes.  The Group has not adopted the
hedge accounting provisions of IAS 39 'Financial Instruments: Recognition and
Measurement'; therefore under IFRS, the Group marks-to-market all financial
derivatives at each balance sheet date with gains and losses included in net
profit.  Under UK GAAP, derivatives were held off the balance sheet, and gains
and losses were matched in the income statement against items intended to be
hedged.  This change also affects the timing of profit recognition, depending on
the maturity period of any derivative instruments held.

•          Exchange differences taken to the income statement

Under IFRS, certain exchange gains or losses previously taken to reserves are
now required to be taken to the income statement.  These include exchange
differences on intra-group financing balances (subject to certain limited
exceptions), retranslation of preference share capital and settlement of those
ordinary dividends which are paid in sterling.  Under UK GAAP, the Group took
such differences to reserves.  This change has no effect on the balance sheet or
net equity, as such gains or losses are offset by corresponding exchange
differences on the translation of any foreign currency balance sheets of Group
entities included in the consolidated financial statements.

•          Reversal of proposed ordinary dividends

Under IFRS, ordinary dividends are recognised only when they are legally
payable.  Therefore proposed dividends previously included in the balance sheet
under UK GAAP have been reversed and are accounted for in the period in which
they are formally approved.  This change has no effect on net earnings in any
period.

•          Other adjustments

Further explanations of other adjustments are given in the detailed IFRS
Restatement.  These include:

-        use of historical rates rather than period end closing rates to
         translate non-US dollar denominated ordinary share capital and share 
         premium;
-        reclassification of preference shares to borrowings and of preference
         dividends to finance costs;
-        use of actuarial valuations to measure severance indemnity provisions;
-        change of functional currency of the Group's Chilean railway operation
         to the US dollar;
-        recording acquisition fair value adjustments in the functional currency
         of the subsidiary acquired;
-        inclusion of translation differences after the transition date for net
         assets of foreign currency subsidiaries in a separate translation 
         reserve and recycling cumulative differences on any eventual disposals 
         through the income statement;
-        provision of deferred tax on items for which provision was not required
         under UK GAAP; principally on acquisition fair value adjustments and
         inflation-based adjustments;
-        reporting income from associates in the income statement as a single
         line net of financing items, tax and underlying minorities;
-        reclassification of the Group's forestry assets as investment property
         held at cost;
-        treating previous revaluations of the Chilean Railway network as deemed
         cost;
-        reclassification of short-term cash investments as cash equivalents in
         the balance sheet and cash flow statement.

The Group does not operate any funded defined benefit schemes, nor does it have
any share option schemes in operation.  It also did not have any goodwill at any
balance sheet date in 2004.  The adoption of IFRS therefore has no impact on the
Group in any of these areas.

The full restatement document 'Adoption of International Financial Reporting
Standards and Restatements for 2004' will be available on the Company's website
from 13 September 2005, or from the Company's registered office, 5 Princes Gate,
London SW7 1QJ.


Enquiries - London                                        Enquiries - Santiago
Antofagasta plc                                      Antofagasta Minerals S.A.
Tel: [phone]                                        Tel [phone]

Desmond O'Conor                                               Alejandro Rivera
Email: [e-mail]                       Chief Financial Officer
                                                   Email: [e-mail]

Hussein Barma
Chief Financial Officer (UK)                                       Jorge Marin
Email: [e-mail]                 Corporate Financial Controller
                                                    Email: [e-mail]

www.antofagasta.co.uk                                                Issued by
                                                                   Keith Irons
                                                     Email: [e-mail]
                                                        Tel:  [phone]



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