Suspension and Review of the Antucoya Project

RNS Number : 2074U

Antofagasta PLC

21 December 2012

 



For immediate release

Cleveland House                                                                                    Telephone:         + 44 20 7808 0988

33 King Street                                                                                         Fax:                     + 44 20 7930 7578

St James's, London                                                                               

SW1Y 6RJ, United Kingdom

SUSPENSION AND REVIEW OF THE ANTUCOYA PROJECT

London, 21 December 2012

Antofagasta plc ("Antofagasta") announces that Minera Antucoya ("Antucoya") has today decided to temporarily suspend development of the Antucoya copper project (the "project" or "Antucoya project") so as to enable Antucoya to undertake a full review of the project given existing and potential levels of cost escalation. Accordingly, Antucoya has also decided to immediately issue notices of termination under the principal construction contracts for the project.

Antucoya is a heap-leach solvent-extraction electro-winning copper project located in the Antofagasta Region of Chile.  It is 70% owned by Antofagasta and 30% owned by Marubeni Corporation ("Marubeni"). Decisions relating to temporary suspension and review have been made by Antucoya's shareholder council, which functions as the board of Antucoya and comprises representatives from both Antofagasta and Marubeni.

Diego Hernandez, Chief Executive Officer of Antofagasta Minerals S.A., commented: 

"We remain concerned about the level of capital and operating costs in the industry.  We believe Antucoya's decision to temporarily suspend and review the project reflects an appropriate and measured approach to addressing these concerns."

"Notwithstanding this decision, we remain committed to our strategy of organic growth in our existing areas of operation as well as continuing to identify and invest in new opportunities both in Chile and abroad."

Enquiries
London Investor relations - Antofagasta plc Tel: [phone] www.antofagasta.co.uk Hussein Barma - [e-mail]  (Mobile: [phone]) Philip Holden - [e-mail]  (Mobile: [phone]) Clare Wood - [e-mail] (Mobile:[phone]) Media enquiries - Bankside Consultants Tel: [phone] Simon Rothschild - [e-mail] (Mobile: [phone])	Santiago Antofagasta Minerals S.A. Tel: [phone] Alejandro Rivera - [e-mail] Sebastian Gil - [e-mail]

 

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