Contract Awarded

Antofagasta PLC
26 November 2003



                    ANTOFAGASTA WINS ESSAN WATER CONCESSION

                              IN CHILE'S II REGION



London, Wednesday 26 November 2003



Antofagasta plc (ANTO.L) - the UK listed mining group with operations in Chile -
announces that its wholly owned subsidiary the FCAB Railway has been awarded a
30 year concession to operate the water rights and facilities in the Antofagasta
Region previously controlled by ESSAN.



The Concession consists of two businesses, one an unregulated business supplying
mines and other industrial users and the other a regulated water business
supplying domestic customers.



The award followed a competitive tender managed by SEP - (Sistema de Empresas
Publicas), a Chilean Government entity, and the Concession is one of four water
utilities in Northern Chile included in the current privatisation programme.



The Consideration, amounting to US$185 million (including IVA tax) is payable in
cash within a 40 day period and will be satisfied from the Group's existing
resources.  The Concession will begin following that period.



In 2002, ESSAN had a turnover of CH$ 26.8 billion (US$ 39.0 million), profit
before tax of CH$ 14.2 billion (US$ 20.6 million) and net assets at 31 December
2002 of CH$ 77.1 billion (US$ 107.3 million).  The Concession will include all
the necessary assets and facilities for operating the business which will
comprise substantially all of the assets of ESSAN.



Antofagasta considers that the transaction is very positive for the Group and
can also be viewed as being a strategic investment which will ensure reliable
water supplies for the future development of mining operations in the region and
for the expected increased demand in domestic consumption.



The Concession will complement both Antofagasta's transportation and mining
activities in the region and its existing water distribution business already
operated by the FCAB Railway.



Enquiries -

Antofagasta plc                               F.C.A.B. (Chile)
Tel: [phone]                         Tel:  [phone]

Philip Adeane                                 Miguel Sepulveda
Email: [e-mail]           Email: [e-mail]

Hussein Barma                                 Pablo Ribbeck
Email: [e-mail]               Email  [e-mail]




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