Q2 Production Report

Antofagasta PLC
31 July 2007


Antofagasta plc

31 July 2007

Quarterly Production Report - Q2 2007

Highlights

   • Group copper production in Q2 was 106,100 tonnes, marginally above Q1.

   • Molybdenum production at Los Pelambres in Q2 was 2,800 tonnes compared
     with 2,100 tonnes in Q1.

   • Group cash costs in Q2 were 24.8 cents per pound compared with 35.8
     cents per pound in Q1, due to improved by-product credits which offset
     higher on-site costs and tolling charges.


Group Total                    Q1      Q2     Q3     Q4    Acc    Acc  Full Year
                             2007    2007   2007   2007   2007   2006       2006
                      
Total production of         105.9   106.1                212.1  207.9      465.5
payable copper ('000 tonnes)
Total production of           2.1     2.8                  4.9    4.1        9.8
payable moly ('000 tonnes)
Weighted average             35.8    24.8                 30.3   46.9       40.2
cash costs (cents per pound)


Los Pelambres

Los Pelambres produced 71,100 tonnes of payable copper in Q2 and 141,800 tonnes
in the first six months of 2007, marginally above the first six months of last
year. The increase was mainly due to higher plant throughput as a result of the
increased plant capacity completed in the previous year and higher recoveries,
partly offset by the expected lower ore grade.

Molybdenum production was 2,800 tonnes in Q2, and 4,900 tonnes in the first six
months of 2007, 19.5% above the first half of 2006. The increase was mainly due
to the higher grade and to a lesser extent the higher plant throughput, offset
by lower recoveries.

Cash costs in Q2 were negative 21.3 cents per pound compared to 4.2 cents per
pound in Q1, a decrease of 25.5 cents per pound, mainly due to improved
by-product credits. Cash costs during the first half of 2007 were negative 8.6
cents per pound compared with 24.4 cents per pound for the same period last
year. This decrease in costs was mainly due to higher by-product credits and
lower tolling charges, partly offset by higher on-site costs. The improved
by-product credits reflect higher molybdenum production and market prices (which
averaged US$28.4 per pound in 2007 H1 compared with US$23.7 per pound in 2006
H1). Tolling charges were lower this half year mainly due to reduced price
participation. The increase in on-site and shipping costs during the first half
of the year compared with the same period last year was partly due to lower ore
grades and increased energy, fuel, lubricants and machinery hire costs. In
addition, costs were also higher due to a significant level of programmed plant
maintenance in Q2 and the costs of the one-off bonus payment on the early
conclusion of the labour negotiation with the mine-port union in May.


El Tesoro

Cathode production at El Tesoro was 23,200 tonnes in Q2 and 46,800 tonnes during
the first half of the year, which represents a 10% increase compared with 2006
H1. This increase reflected better ore grades and higher metallurgical
recoveries, partly offset by a lower level of ore treated.

Cash costs in Q2 were 106.5 cents per pound, an increase of 19.1 cents per pound
over the previous quarter, mainly due to higher energy costs following the
re-negotiation of the power supply contract (including one-off back
settlements). Cash costs during the first half of the year were 96.9 cents per
pound, higher than the same period last year but below budget. The increase
compared with 2006 H1 is mainly explained by the higher waste-to-ore ratio, as
well as higher energy costs and acid consumption and prices.


Michilla

Michilla produced 11,800 tonnes of copper cathodes in the second quarter of the
year making a total of 23,400 tonnes during the first half, marginally below the
first six months of 2006. The higher ore throughput and the higher metallurgical
recovery in 2007 H1 compensated for the decline in grades.

Cash costs were 141.4 cents per pound in Q2 and 132.3 cents per pound in the
first half of the year. The costs for 2007 H1 were below budget but higher than
the first six months of 2006, reflecting the one-off costs of the labour
negotiation completed during Q2, as well as higher costs of energy, fuel and
third party services.


Exploration - Colombia and Ecuador

During July, the Group decided not to continue with the exploration agreements
with Ascendent Copper Corporation in respect of the Chaucha deposit in Ecuador
and with AngloGold Ashanti in the area of interest in southern Colombia,
following a review of drilling results achieved to date.  The Group nevertheless
remains committed to its disciplined strategy of growth and will continue to
seek opportunities in mining both in Latin America and worldwide.


Transport

The transport division had a strong first half. Combined rail and road volumes
transported during the first half of 2007 were 11.6% higher than the same period
of 2006. The increase was mainly attributable to the impact of the Spence
project (which commenced shipments in the second half of 2006), along with
increased volumes from other clients.


Water

The water business continued to perform well. Volumes sold during the first half
increased to 19.8 million cubic metres, a 6.7% increase compared with 2006 H1,
mainly due to improved sales to industrial customers.




Los Pelambres                Q1      Q2     Q3    Q4     Acc     Acc   Full Year
                           2007    2007   2007  2007    2007    2006        2006
Production statistics

Daily average ore treated 125.0   126.0                125.5   120.2       127.4
('000 tonnes)
Average ore grade          0.71    0.70                 0.71    0.82        0.81
(%)
Average recovery           92.5    91.9                 92.2    88.1        88.7
(%)
Concentrate produced      186.5   202.6                389.0   395.0       842.6
('000 tonnes)
Average concentrate grade  39.6    36.5                 38.0    39.8        39.9
(%)
Fine copper in             73.1    73.6                146.7   146.4       335.2
concentrate ('000 tonnes)
Payable copper in          70.7    71.1                141.8   141.6       324.2
concentrate ('000 tonnes)
Average moly ore grade    0.033   0.030                0.031   0.026       0.028
(%)
Average moly recovery      66.7    75.6                 71.0    75.2        76.1
(%)
Payable moly                2.1     2.8                  4.9     4.1         9.8
('000 tonnes)

Cash costs statistics

On-site and shipping       64.7    82.0                 73.4    55.6        56.4
costs (cents per pound)
Tolling charges for        25.7    31.9                 28.8    39.8        39.7
concentrates
(cents per pound)
By - product credits      (86.3) (135.2)              (110.8)  (71.0)      (79.7)
(cents per pound) *
Cash costs                  4.2   (21.3)                (8.6)   24.4        16.4
(cents per pound)

(*) Note: By-products credits do not include any costs attributable to the
production of molybdenum concentrate. By-product calculations also do not take
into account unrealised mark-to-market gains at the beginning or end of each
period.

El Tesoro                 Q1      Q2      Q3     Q4     Acc    Acc    Full Year
                        2007    2007    2007   2007    2007   2006         2006
                        
Daily average ore       27.8    26.3                  27.1    29.1         28.7
treated ('000 tonnes)
Average ore grade       1.21    1.25                  1.23    1.08         1.16
(%)
Average recovery        77.4    77.3                  77.4    75.7         78.1
(%)
Copper cathodes         23.6    23.2                  46.8    42.5         94.0
('000 tonnes)
Cash costs              87.4   106.5                  96.9    79.7         78.6
(cents per pound)


Michilla                  Q1      Q2      Q3    Q4     Acc     Acc    Full Year
                        2007    2007    2007  2007    2007    2006         2006
                      

Daily average ore       15.2    15.4                  15.3    15.0         15.2
treated ('000 tonnes)
Average ore grade       1.04    1.04                  1.04    1.10         1.05
(%)
Average recovery        81.2    78.3                  79.7    76.3         78.2
(%)
Copper cathodes         11.6    11.8                  23.4    23.8         47.3
('000 tonnes)
Cash costs             123.1   141.4                 132.3   122.0        126.4
(cents per pound)


Transport                 Q1      Q2      Q3    Q4     Acc     Acc    Full Year
                        2007    2007    2007  2007    2007    2006         2006
                       
Rail tonnage           1,253   1,301                 2,554   2,133        4,486
transported ('000 tons)
Road tonnage             321     342                   663     750        1,456
transported ('000 tons)


Water                     Q1      Q2      Q3    Q4     Acc     Acc    Full Year
                        2007    2007    2007  2007    2007    2006         2006
                      
Water volume sold -   10,069   9,740                19,809  18,536       37,798
potable and untreated
('000 m3) **

(**) Note: Water volumes include water transportation of 300,000 m3 in Q1 and
266,000 in Q2 (270,000 m3 in Q1 2006 and 740,000 m3 in Q2 2006).


Enquiries - investor relations:

Alejandro Rivera
[e-mail]                          Santiago: (56-2) 377 5145


Desmond O'Conor
[e-mail]                     London:(44) 20 7808 0988

Hussein Barma
[e-mail]                      London:(44) 20 7808 0988


Enquiries - media:

Keith Irons, Bankside Consultants                     44) 20 7367 8873
[e-mail]

Oliver Winters, Bankside Consultants                 (44) 20 7367 8874
[e-mail]




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