Drill Programme

Antofagasta PLC
4 December 2000

                                 NEWS RELEASE


                    ANTOFAGASTA PLC ANNOUNCES THAT IT WILL
     PROCEED WITH MAJOR DRILL PROGRAMME IN 2001, FOLLOWING SCOPING STUDY

LONDON: Monday, 04 December 2000 - Antofagasta plc announces that following
the discovery of significant copper and molybdenum mineralization at the
Magistral project in Northern Peru and the completion of an internal scoping
study, Anaconda Peru, its wholly owned subsidiary, has elected to proceed with
a Second Phase exploration programme. As part of the programme, Anaconda Peru
will spend up to US $2,950,000 by December 31 2001, including 14,000 metres of
diamond drilling.

Copper/molybdenum mineralization occurs at Magistral in a setting composed of
well mineralised porphyry and adjacent skarn. In 1999 and 2000 Anaconda Peru
completed 8,500 metres of diamond drilling in 27 holes. The saddle-shaped
mineralised body is some 1,200 metres long, 125 metres in thickness and
extends to a depth of 350 metres. The mineralization remains open at depth.

A new company, Ancash Cobre S.A., has been formed in Peru by Inca Pacific to
hold all the Magistral assets. Anaconda Peru will receive a 30% interest in
this company when it exercises the underlying option between Inca Pacific and
Banco Minero del Peru by paying an additional US $400,000 to Banco Minero del
Peru and delivering the scoping study. Upon completion of the 2001 programme
the project will be at the Pre-Feasibility stage and Anaconda Peru will
acquire a 51% interest in the project.

                                   - Ends -


Enquiries:

Philip Adeane, Managing Director          Email: [e-mail]

Antofagasta plc - London, UK          Telephone: [phone]

Ricardo Muhr, Vice President of New      Email:      [e-mail]
Business Development

Antofagasta Minerals S.A. - Santiago,      Telephone: [phone]
Chile

Issued by:

Keith Irons/Sarah Campbell               Email: [e-mail]

Bankside Consultants Ltd               Telephone: [phone]