Antofagast Reported On Chilean Operations

 

SANTIAGO - Los Pelambres produced 77,300 tonnes of payable copper in Q2 and 157,500 tonnes in the first half of 2009, 3.8% below the first half of last year, but ahead of budget. This decrease in production compared with H1 2008 was mainly due to lower plant throughput due to the higher level of harder primary ore, partly offset by slightly higher ore grades and improved metallurgical recoveries. The decreased production in Q2 compared to the 80,200 tonnes in Q1 reflected lower copper grades and recoveries, partially offset by higher throughput.

Molybdenum production was 2,000 tonnes in Q2 and 3,700 tonnes in the first half of 2009, in line with budget and comparable with the first half of last year. The increased production in Q2 compared to the 1,700 tonnes produced in Q1 reflected increased metallurgical recoveries and slightly improved ore grades.

Copper cathode production at El Tesoro was 19,700 tonnes in Q2 2009 and 40,100 tonnes during the first half of the year, below the first six months of 2008 and 5.6% below H1 2009 budget. The lower production in H1 2009, compared to H1 2008, was mainly due to lower ore grades and reduced metallurgical recoveries. Q2 production includes material processed from the Tesoro North-East deposit which started production in April 2009. Start-up of the Run-of-Mine (ROM) leaching of low-grade oxides from Esperanza has been delayed from Q2 to Q3, which also explains the lower production in Q2 compared to budget.Ê

Michilla produced 9,300 tonnes of copper cathodes in Q2 2009, achieving a total of 20,600 tonnes during the first half of the year, which was slightly ahead of budget. The H1 2009 production was 10.8% below the 23,100 tonnes produced in H1 2008 with this expected reduction partly due to the decision in early 2009 to close the high cost Lince open pit in Q1. Q2 production was 18.4% lower than Q1 production of 11,400 tonnes mainly due to a reduction in ore grades reflecting a higher proportion of low-grade stockpile feed.

The plant expansion at Los Pelambres and the Esperanza project both remain on schedule. The Los Pelambres expansion is expected to be completed by the end of 2009 and the Esperanza project is expected to start production in late 2010. As announced in May, the Group has signed an agreement for US$1,050 million of project financing for Esperanza. Financial closing and satisfaction of conditions to borrowing for this facility were achieved in June 2009 and the first drawdown was made in July 2009.