Update on Mauro tailings dam

Antofagasta PLC
07 May 2008



For immediate release


                                Antofagasta plc

                    Update on Mauro tailings dam litigation


London, 7 May 2008

Antofagasta plc announces that, in accordance with a conciliation procedure of
the Chilean Supreme Court, Minera Los Pelambres and the claimants to the
litigation concerning the validity of a sectoral permit issued in 2005 by the
Chilean Water Authority (Direccion General de Aguas) for the construction of the
Mauro tailings dam have reached a binding settlement concerning that and other
related cases relating to water rights. The Chilean Water Authority is expected
to agree to the settlement which is also expected to be approved by the Supreme
Court shortly. As explained below resolution of a separate case concerning land
ownership remains outstanding.

Under the terms of this settlement, which was signed today before the Supreme
Court, the claimants have agreed to withdraw their claims in this and other
related cases concerning water rights which have been brought against various
governmental authorities and (in one case) directly against Minera Los
Pelambres. The claimants have also acknowledged that the Chilean Water Authority
is the competent authority to issue the relevant sectoral permit. The Chilean
Water Authority is expected to consent in this settlement to the withdrawal of
the cases to which it is a party and the governmental authorities involved in
the other cases are also expected to consent shortly. As part of the settlement,
Minera Los Pelambres will pay an amount of US$23 million to the claimants in
order to acquire an area of land of approximately 8,000 hectares and related
water rights adjacent to the Mauro tailings dam belonging to one of the
claimants and for the settlement of the various cases. Payment will be made to
the claimants when all these cases have been formally withdrawn and ownership of
the land and water rights has been acquired.

The settlement of these claims, which also includes the lifting of the
injunction of 24 August 2007 in which Minera Los Pelambres was ordered to
suspend certain works which would directly affect the Pupio stream at El Mauro,
will enable Minera Los Pelambres to complete construction of the Mauro tailings
dam, which is currently over 98 per cent complete. The Mauro tailings dam will
replace the existing Quillayes tailings dam which is expected to reach capacity
in early 2009.

This settlement does not include the case concerning land ownership involving
different claimants heard by a first instance court in Santiago in April 2007
and in which the court held that operation of the tailings dam cannot for the
moment commence. Minera Los Pelambres participated in this trial to protect its
interest and has appealed against this decision to the Court of Appeals in
Santiago. The Group remains confident that Minera Los Pelambres' legal title to
the land in question will be upheld on appeal.

Enquiries - London                              Enquiries - Santiago

Antofagasta plc                                 Antofagasta Minerals S.A.
Tel: [phone]                           Tel: + 56 2 798 7000
www.antofagasta.co.uk                           
                                                Francisco Veloso
Desmond O'Conor                                 Tel: [phone]
Email: [e-mail]                Email: [e-mail]

Hussein Barma
Email: [e-mail]

Press Enquiries - London

Bankside Consultants
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Keith Irons
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Oliver Winters
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