Q2 2004 Production Report

Antofagasta PLC
27 July 2004


The following report has been released by Antofagasta plc and is distributed in
London by Bankside Consultants Ltd on behalf of the Company.  Contact:  Keith
Irons, 020 7444 4155.

27 July 2004


Antofagasta plc
Quarterly Production Report - Q2 2004


Highlights



• Group copper production reached 126,400 tonnes in Q2, an increase of
  16% over the previous quarter.


• Group cash costs decreased to a record low of 21.9 cents per pound
  compared with 41.9 cents in Q1, due to molybdenum sales by Los Pelambres at
  stronger prices.

                                           Q1       Q2        Q3        Q4        Acc        Acc     Full Year
Group Total                              2004     2004      2004      2004       2004       2003          2003

Total copper production
('000 tonnes)                           109.0    126.4                          235.4      225.1         471.8

Weighted average
cash costs (cents per pound)             41.9     21.9                           31.2       37.6          36.4


Los Pelambres


Copper production increased by 27% from 72,400 tonnes in Q1 to 92,600 tonnes in
Q2.  This was due mainly to the higher ore processing level which reached a
record 127,300 tonnes per day in the current quarter.  This improvement
reflected softer ore processed, optimisation of the grinding lines and the lower
requirement for maintenance in the period.  Los Pelambres also benefited from
higher ore grades.


Cash costs fell sharply from 33.3 cents per pound in Q1 to 6.2 cents in Q2,
which was a record low.  The reduction in cash costs was principally due to
significantly higher by-product credits, as molybdenum prices improved from
US$8.20 per pound in Q1 to US$14.70 per pound in Q2, which increased credits
from 25.8 cents per pound of copper produced in Q1 to 42.3 cents per pound in
Q2.  Cash costs also reduced due to the impact of higher production levels on
fixed costs.


Timing of shipments and loading schedules caused significant tonnages to be
delayed until July.  Total shipments of payable copper in the first six months
of the year were 139,800 tonnes, compared with production of 165,000 tonnes.


El Tesoro


Cathode production in Q2 was 22,900 tonnes, 5% lower than the previous quarter.
The decrease was due to lower metallurgical recoveries which resulted from a
higher level of carbonates encountered in the ore processed and which are
expected to improve.


Cash costs increased by 15% from 47.2 cents per pound in Q1 to 53.9 cents in Q2.
The increase was due to several factors including the lower production level,
an increase in the consumption of sulphuric acid due to the presence of
carbonates and a higher waste to ore ratio which increased mine costs.


Michilla


Q2 cathode production was 14% lower than Q1 at 10,900 tonnes, due mainly to
changes in the sequence of ore extraction to avoid old mine workings in the
vicinity of Michilla's main open pit.  This resulted in a lower volume of ore
processed, but ore extraction is expected to increase in the second half and
annual production should reach 50,000 tonnes.


Cash costs in Q2 were 88.7 cents per pound, 9% above the previous quarter, due
to the lower production level achieved. Costs in the second half are expected to
decrease with higher production volumes.


Transport (FCAB)


Transport volumes remained strong, with tonnages increasing marginally over the
previous quarter.



                                        Q1        Q2           Q3        Q4       Acc       Acc     Full Year
Los Pelambres                         2004      2004         2004      2004      2004      2003          2003

Daily average ore treated
('000 tonnes)                        115.4     127.3                            121.4     111.3         113.3

Average ore grade
(%)                                   0.84      0.93                             0.88      0.90          0.91

Average recovery
(%)                                   87.4      88.7                             88.1      89.7          89.9

Concentrate produced
('000 tonnes)                        186.9     266.6                            453.5     392.0         826.5

Average concentrate grade
(%)                                   40.0      36.0                             37.6      40.9          40.9

Fine copper in concentrate
('000 tonnes)                         74.8      95.9                            170.7     160.4         337.8

Payable copper in concentrate
('000 tonnes)                         72.4      92.6                            165.0     155.2         326.7

Payable moly in concentrate
('000 tonnes)                          1.8       1.9                              3.7       3.8           8.7

Cash costs
(cents per pound)                     33.3       6.2                             18.0      31.5          29.3



                                        Q1        Q2           Q3        Q4       Acc       Acc     Full Year
El Tesoro                             2004      2004         2004      2004      2004      2003          2003

Daily average ore treated
('000 tonnes)                         24.2      24.2                             24.2      21.2          22.1

Average ore grade
(%)                                   1.35      1.33                             1.34      1.54          1.46

Average recovery
(%)                                   81.0      75.4                             78.2      77.2          78.2

Copper cathodes
('000 tonnes)                         24.0      22.9                             46.9      45.5          92.4

Cash costs
(cents per pound)                     47.2      53.9                             50.5      41.0          42.4



                                        Q1        Q2           Q3        Q4       Acc       Acc     Full Year
Michilla                              2004      2004         2004      2004      2004      2003          2003

Daily average ore treated
('000 tonnes)                         16.8      15.1                             15.9      14.4          15.6

Average ore grade
(%)                                   1.09      1.06                             1.08      1.29          1.25

Average recovery
(%)                                   75.2      74.9                             75.1      74.8          75.0

Copper cathodes
('000 tonnes)                         12.6      10.9                             23.5      24.4          52.7

Cash costs
(cents per pound)                     81.2      88.7                             84.7      69.9          69.8


                                        Q1        Q2           Q3        Q4       Acc       Acc     Full Year
Transport                             2004      2004         2004      2004      2004      2003          2003

Rail tonnage transported
('000 tons)                          1,056     1,076                            2,132     2,077         4,388


For further enquiries:

Philip Adeane, Antofagasta plc

[e-mail]                           (44) 20 7808 0988

Hussein Barma, Antofagasta plc

[e-mail]                               (44) 20 7808 0988

Alejandro Rivera, Antofagasta Minerals

[e-mail]                                   (56-2) 377 5145


Issued by:


Keith Irons, Bankside Consultants

[e-mail]                                     (44) 20 7444 4155


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