AGM Statement

Antofagasta PLC
13 June 2002

                                ANTOFAGASTA PLC


             Comments made by Mr Jean-Paul Luksic, Deputy Chairman
                  at the Annual General Meeting - 13 June 2002


I would like to give an update on the Group's activities since the beginning of
the year and in particular since the Annual Report was issued last month. I am
pleased to report that the Group is on track to achieve the production forecasts
we made in the Preliminary Results Announcement in March this year.

As you may have read in the papers recently, on June 4 the central region of
Chile, including Santiago, experienced the heaviest rains, storms, and flooding
for over 100 years. The meteorologists say that El Nino was the culprit but
regardless of the causes, the operations at Los Pelambres were seriously
affected for three days.  The main damage was caused by mudslides which ruptured
a 30 metre section of the concentrates pipeline, which runs 120 kilometres from
the concentrator at the mine down to the coast.  At the same time high winds and
torrential rain brought down power lines and supply to the mine site was
interrupted for three days and approximately 2500 tonnes of copper production
was lost during this period.  However, normal operations were resumed on June 8.

It might be relevant to mention that we had always anticipated that Los
Pelambres could be affected, from time to time, by extreme weather conditions
due to its high altitude location.  However, we are pleased that the
construction layout and overall planning of the mine complex has proved itself
to be robust under extreme weather conditions.

Los Pelambres is still on course to produce about 330,000 tonnes of payable
copper in concentrates in 2002 and although cash costs will increase in the
following months due to lower ore grades, these are still expected to be under
40.0 cents per pound.  During the past year, Los Pelambres has continued to
optimise its operations and ore throughput in 2002 is expected to increase to an
average of 112,000 tonnes per day, rising to 120,000 in 2003.  The mining
division is developing the basic engineering studies to evaluate a future large
scale expansion to 175,000 tonnes per day and an environmental impact study will
be submitted to the relevant authorities in the second half of this year.

A recent positive development for Los Pelambres has been the sharp increase,
since the beginning of the month, in the price of molybdenum which is an
important by-product for the mine.  The price of molybdenum oxide has increased
by over 300% since the beginning of the year and if the 'spike' continues the
additional revenues will have a favourable impact on cash costs at Los
Pelambres.   The latest weekly price at which Los Pelambres has sold its
production of molybdenum has been at the level of US$8.00 per pound compared
with average prices of around US$2.30 last year.  With luck, the present price
levels could hold for two or three months, which has happened in the past,
before reverting to previous much lower levels.

Production at El Tesoro has increased steadly to the rate of 85,000 tonnes of
copper cathodes per year which will be maintained until at least 2005.  Cash
costs remain under 40.0 cents per pound and are within the expected costs levels
for 2002 and confirm its position as one of the lowest cost producers in the
industry.  El Tesoro is currently involved in a re-financing of its Senior Debt,
which will have cost savings and less restrictive covenants.

Michilla's cost reduction programme which started in October last year has been
successful and is continuing.  Cash costs have been contained at under 60.0
cents per pound.  Increased crushing capacity and improved recoveries should
enable Michilla to reach its target of 52,000 tonnes of copper cathodes during
the year.

Turning to exploration which remains an important element of our mining
strategy, we announced last week that Antofagasta and CVRD had agreed an
exploration joint-venture in Peru.  To give a little background, CVRD which is
based in Rio de Janeiro, is the world's largest producer and exporter of iron
ore.  The agreement with them covers mining exploration in an extended area of
60,000 square kilometres near Cusco and will enable CVRD to acquire 50% of the
joint venture company after spending US$6.7 million over the next three years.
The effect will be to boost Antofagasta's exploration efforts in Peru at no cost
and will give CVRD greater exposure to copper mining in Latin America and we are
pleased to have them as partners in this venture.  In the meantime our
exploration programmes have continued both in Chile - in particular the area
surrounding El Tesoro mine concentrating on the Esperanza project - and also in
Peru where an independent valuation is being obtained for our 51% interest in
the Magistral copper project, which although an excellent project suitable for
development as a medium size copper-molybdenum mine, did not meet Antofagasta's
minimum size criteria.

Finally, I would like to mention the Railway, which was the origin of the Group
and which continues to provide efficient and reliable transportation services to
the mining sector in the Antofagasta region.  Over the years, the Railway has
expanded its operations and now provides integrated rail and road transportation
services as well as warehousing, stevedoring and distribution of diverse
products ranging from cement to beer to sulphuric acid to our mining and
industrial customers.  Once again, The FCAB and its road transport subsidiary
TRAIN set new tonnage records in 2001 for the eighth consecutive year. Rail
shipments are presently about 10% up and road shipments up 20% so far this year.
  We anticipate 2002 will be another record year.

Looking to the future the Railway is cautiously optimistic about several new
mining projects and expansions which are moving forward in Chile and Bolivia and
may come on stream in the next 2 or 3 years.  Due to its excellent service
record and extensive rail network the FCAB can hold its position as the service
provider of choice in the region.  The new port at Mejillones, which is expected
to be in operation in October or November next year will present new challenges
for the FCAB as some of its customers will probably opt to use the new
facilities at Mejillones in preference to Antofagasta.  However, there will be
new business opportunities such as CODELCO's 800,000 tonnes capacity smelter and
copper refinery facility at Mejillones as it begins to take shape over the next
three years.  The possibility of exporting Bolivian gas to the Pacific Coast of
the United States through a Chilean port, probably Mejillones, will be another
important business opportunity in the near future as more than 700 kilometres of
pipe will have to be transported from the ports of Antofagasta and Mejillones,
to connect with Tarija in Bolivia which is located southeast of Potosi near the
border with Argentina.

Copper prices have improved from 70 cents per pound at the beginning of May to
almost 76 cents to-date in June.  As we stated in the Annual Report we expect
copper prices to fluctuate in the range of 70 to 80 cents per pound, this year.
However, the recent strength supports a slightly more optimistic outlook for the
second half which is in line with some industry analysts. Overall, the Group's
prospects for 2002 are very sound.

                                    - Ends -



For further enquiries:



Philip Adeane, Antofagasta plc                        [phone]
[e-mail]


Keith Irons, Bankside Consultants                     [phone]
[e-mail]


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