Q2 Production Report

Antofagasta PLC
01 August 2006


1 August 2006

                                 Antofagasta plc

                      Quarterly Production Report - Q2 2006

Highlights

  • Group copper production in Q2 was 100,900 tonnes, compared with 107,000
    tonnes in Q1.

  • Molybdenum production at Los Pelambres in Q2 was 2,100 tonnes,
    marginally above Q1.

  • Group cash costs for Q2 were 43.9 cents per pound, 11.7% lower than Q1
    mainly due to improved by-product credits.


Group                              Q1       Q2      Q3      Q4      Acc      Acc   Full Year
Total                            2006     2006    2006    2006     2006     2005     2005

Total production of payable 
copper ('000 tonnes)            107.0    100.9                    207.9    227.4    467.3

Total production of payable 
moly('000 tonnes)                 2.0      2.1                      4.1      4.7      8.7

Weighted average cash costs 
(cents per pound)                49.7     43.9                     46.9    (8.7)     13.9


Los Pelambres

Los Pelambres produced 67,500 tonnes of payable copper in Q2 and 141,600 tonnes
in the first six months of 2006, 8.6% below the first six months of last year.
The decrease was mainly due to a build-up of unfiltered copper concentrate at
the concentrator plant in May when repairs were carried out to the slurry
pipeline, reducing the volume available for filtration at the port in that
month. This concentrate was partly processed at the port in June with the
remainder processed in July, and is not expected to have any overall effect on
production volumes for the full year. The reduced production in the first half
was also partly due to lower daily ore throughput at the concentrator plant
(resulting from a higher proportion of harder primary ore compared with 2005 as
well as programmed downtime to enable the construction of the 140,000 tonnes per
day plant expansion) and lower recoveries, offset by the higher ore grade.
Volumes shipped in the first six months of 2006 were 145,400 tonnes.

Molybdenum production in Q2 increased to 2,100 tonnes and production in the
first six months was 4,100 tonnes, in line with the year-to-date forecast but
12.5% below the first half of 2005. The decrease was due to a combination of
changes in levels of partly-processed molybdenum concentrate, the lower ore
throughput level and lower recoveries (resulting from the characteristics of the
ore processed in the period), partly offset by the higher ore grade.

Cash costs in Q2 were 18.5 cents per pound, compared with 29.8 cents per pound
in Q1 due to improved by-product credits this quarter. Cash costs averaged 24.4
cents per pound in the first six months of 2006 compared with negative 48.1
cents in the first half of 2005. The increase compared with 2005 H1 was mainly
due to lower by-product credits (which decreased by 47.0 cents) and higher
treatment and refining charges (which increased by 13.8 cents). Lower by-product
credits resulted mainly from lower molybdenum market prices (which averaged
US$23.7 per pound in 2006 H1 compared with US$33.4 per pound in 2005 H1) as well
as lower production. Treatment and refining charges increased through price
participation by smelters as the average LME copper price increased to 275.3
cents per pound in 2006 H1 (compared with 151.1 cents per pound in 2005 H1).

On-site and shipping costs for Q2 remained in line with Q1. Costs for the first
six months of the year remain in line with forecast, but were 11.7 cents per
pound above 2005 H1, due to lower production as well as higher costs for fuel,
energy, explosives and services.


El Tesoro

Cathode production at El Tesoro in Q2 was 21,800 tonnes, an increase of 4.8%
compared with Q1, as better ore grades compensated for lower recoveries.
Production in the first six months of 2006 was 42,500 tonnes, in line with
forecast but 14.7% lower than 2005 H1, as higher processing levels (following
completion of the 10.5 million tonnes per year throughput expansion at the
beginning of the year) were offset by expected lower grades and recoveries.

Cash costs in Q1 were 79.8 cents per pound, in line with the previous quarter.
Cash costs in the first six months of 2006 were 79.7 cents per pound compared
with 58.9 cents per pound in 2005 H1, due to the lower production level and
higher waste-to-ore ratio, increased consumption of sulphuric acid and higher
input costs including fuel prices and copper price-linked payments.


Michilla

Michilla produced 11,600 tonnes of copper cathodes in Q2, reaching 23,800 tonnes
in the first six months of 2006. The increase of 1,200 tonnes compared with 2005
H1 was mainly due to higher grades, together with higher processing levels and
better recoveries.

Cash costs in Q2 were 123.9 cents per pound, 3.8 cents above the previous
quarter. Cash costs averaged 122.0 cents per pound in the first six months of
2006, below forecast but 8.8% above 2005 H1, reflecting higher costs at the
underground mine and higher prices for fuel and explosives.

Transport

Rail tonnages in the first half of 2006 were 3.8% lower than 2005 H1, mainly due
to lower tonnages from Codelco. However, road tonnages were 3.1% higher than the
first half of 2005.

Water

The water division continued to perform strongly, with volumes reaching 9.2
million cubic metres in Q2 and 18.5 million cubic metres in the first half of
2006. This represented an increase of 11.9% over 2005 H1 as a result of
increased consumption by both domestic and mining customers as well as higher
volumes of water transported.



Los Pelambres                   Q1       Q2       Q3      Q4       Acc       Acc   Full Year
                              2006     2006     2006    2006      2006      2005      2005

Production statistics

Daily average ore  
treated ('000 tonnes)        120.9    119.5                      120.2     126.5     128.1

Average ore grade            
(%)                           0.81     0.84                       0.82      0.78      0.80

Average recovery              
(%)                           88.1     88.2                       88.1      90.6      89.2

Concentrate produced 
('000 tonnes)                194.8    200.2                      395.0     424.6     865.1

Average concentrate             
grade (%)                     39.6     40.0                       39.8      38.0      38.5

Fine copper in             
concentrate ('000 tonnes)     76.6     69.8                      146.4     160.3     333.8

Payable copper in
concentrate ('000 tonnes)     74.1     67.5                      141.6     154.9     322.8


Average moly ore grade (%)   0.026    0.027                      0.026     0.025     0.022

Average moly recovery (%)     74.4     76.0                       75.2      80.0      79.9

Payable moly ('000 tonnes)     2.0      2.1                        4.1       4.7       8.7


Cash costs statistics

On-site and shipment costs   
(cents per pound)             54.5     56.8                       55.6      43.8      47.1

Tolling charges
for concentrates              
(cents per pound)             34.8     45.4                       39.8      26.0      27.6

By - product credits         
(cents per pound)*           (59.5)   (83.7)                    (71.0)   (118.0)    (91.8)

Cash costs                    
(cents per pound)             29.8     18.5                      24.4     (48.1)    (17.1)

(*) 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
                              2006    2006     2006    2006       2006      2005      2005


Daily average ore            
treated ('000 tonnes)         29.7    28.6                        29.1      24.6      27.2

Average ore grade             
(%)                           0.99    1.18                        1.08      1.37      1.23

Average recovery              
(%)                           77.9    73.9                        75.7      82.1      80.2

Copper cathodes              
('000 tonnes)                 20.8    21.8                        42.5      49.9      98.1

Cash costs                    
(cents per pound)             79.6    79.8                        79.7      58.9      66.1



Michilla                        Q1      Q2      Q3      Q4         Acc       Acc   Full Year
                              2006    2006    2006    2006        2006      2005      2005

Daily average ore             
treated ('000 tonnes)         14.6    15.4                        15.0      14.9      14.9

Average ore grade            
(%)                           1.13    1.07                        1.10      1.04      1.10

Average recovery             
(%)                           76.2    76.4                        76.3      75.9      75.4

Copper cathodes              
('000 tonnes)                 12.1    11.6                        23.8      22.6      46.4

Cash costs                  
(cents per pound)            120.2   123.9                       122.0     112.2     118.8



Transport                       Q1      Q2     Q3      Q4          Acc       Acc   Full Year
                              2006    2006   2006    2006         2006      2005      2005

Rail tonnage                
transported ('000 tons) **   1,122   1,011                       2,133     2,216     4,336

Road tonnage                  
transported ('000 tons)       383      367                         750       728     1,522


(**) Note: A minor adjustment has been made to the comparative figure for Q1
from the previously reported amount of 1,141,000 tons.



Water                            Q1       Q2     Q3      Q4        Acc       Acc   Full Year
                               2006     2006   2006    2006       2006      2005      2005

Water volume sold - potable  
and untreated ('000 m3) ***   9,304    9,231                    18,536    16,557    33,074


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


For further enquiries:


Santiago

Alejandro Rivera, Antofagasta Minerals                 (56-2) 377 5145
[e-mail]


London

Desmond O'Conor, Antofagasta plc
[e-mail]                             (44) 20 7808 0988

Hussein Barma, Antofagasta plc                        (44) 20 7808 0988
[e-mail]

Issued by:

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

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




                      This information is provided by RNS
            The company news service from the London Stock Exchange