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ESPACIO FOTOGRAFIA

(Opcional)

Presentation
Analysts / Investors
Visit to South America
March 2007
Disclaimer

The views expressed here contain information derived from publicly


available sources that have not been independently verified.
No representation or warranty is made as to the accuracy, completeness
or reliability of the information. Any forward looking information in this
presentation has been prepared on the basis of a number of
assumptions which may prove to be incorrect. This presentation should
not be relied upon as a recommendation or forecast by BHP Billiton or
Minera Escondida Limitada.
Nothing in this release should be construed as either an offer to sell or a
solicitation of an offer to buy or sell shares in any jurisdiction.

2
Presentation Content

General Overview
Production
Water & Energy
Key Financials

3
Escondidas Strategy Builds on its Strengths to Maximize Long
Term Value

World
Worlds
Worlds
Largest
Largest
Strong
Strong Copper
Copper Mine
Mine Strong
Strong Cash
Cash
Credit
Credit Flow
Flow
Ratings
Ratings

Strong Low
Low Cost
Cost
Strong
Sponsors Producer
Producer
Sponsors

Diversified
Diversified Stable
Stable
Sales
Sales Base
Base Country
Country

Ability
Ability to
to Unequalled
Unequalled
Manage
Manage Resource
Resource
Expansions
Expansions High
High Quality
Quality
Concentrate
Concentrate

4
Escondida Vision
Be the leading copper mine in the world, creating value and
sustainability through superior performance in the industry in
safety, production, and unit costs.

Achievement reached by:

Working as a team to create a business of excellence


Consistently meeting our operating commitments in a planned, stable
and sustainable way, with Zero Harm to people, the environment, and
the community
Being an excellent business partner for our communities, contractors,
suppliers, and other interested parties
Becoming the prefered mining employer in Chile with employees
who enjoy their work and are recognized for their efforts
Successfully developing new projects and discovering new deposits

5
Key Strategic Objectives FY08 F12

Improving and strengthening sustainable


development (Zero Harm): Health, Safety,
Environment and Community
Develop a High-Performance Organization with
competent, highly productive, innovative
employees committed to obtaining outstanding
results
Manage the Company through Business
Excellence, with operational discipline and with
focus on costs and quality.
Optimize usage of resources, aggressively develop
new projects and discover new ore bodies.

6
Worlds Premium Copper Region

BOLIVIA
Tocopilla Chuquicamata
Northern Chiles Atacama Desert,
160 km south east of Antofagasta. Calam a

CHILE
Mejillones
Spence

Antofagasta

Cerro Colorado Coloso Zaldivar

Quebrada Blanca Monturaqui


Collahuasi
El Abra Escondida
Radomiro Tomic

ARGENTINA
Chuquica mata
Michilla Lince Spence Taltal
Mantos Blancos Escondida
Lomas Bayas
El Tesoro Zaldivar El Salvador

Manto Verde El Sa lvador Chaaral


Potrerillo s
La Candelaria
Inca d e Oro

Andacollo El Indio
Los Pela mbres

El Soldado Andina

Los Bronces El Teniente

7
Zaldivar Leach
Pads
Escondida
Norte Pit

Zaldivar
Pit ESPACIO FOTOGRAFIA
Los Colorados
(Opcional) Concentrator

Escondida
Pit

Oxide Sulphide Leach


Leach Pads Pads

Hamburgo
Tailings Dam
N
Laguna Seca 2 km
Concentrator
Coloso Filter & Port Facilities

9
Development since the beginning

Sulphide
Leach

MEL MEL MEL MEL MEL MEL

ESCONDIDA
NORTE

Start-up Phase I Phase II Phase III Phase 3.5 Phase IV


FY1990 FY1992 FY1993 FY1996 Oxide FY2002 FY2005 FY2006

FY1998

Prod.Payable (kt) 316 370 636 831 741 1159 1283

10
Capital Investments

6,000
5,379

5,000 4,723

4,083
3,877
4,000
US$ (000s)

3,703

3,090
3,000 2,574
2,681

2,142

2,000 1,640
1,479
1,165

1,000 710 721 726 730

0
91

92

93

94

95

96

97

98

99

00

01

02

03

04

05

06
19

19

19

19

19

19

19

19

19

20

20

20

20

20

20

20
Fiscal Years

11
Worlds Largest Copper Mine

Leading Copper Minesites


Escondida

Chuquicamata

KGHM Polish
Copper
PT Freeport
Indonesia

Collahuas i

Morenci

El Teniente

Norilsk

A ntamina

Los Pelambres

Cerro Verde

Radomiro Tomic

0.0 250.0 500.0 750.0 1000.0 1250.0 1500.0

MEL Copper Production CY 2006: 1,255,559 Contained Cu tonnes

Copper production (Contained Cu 000 tonnes) Source: Brook H unt, Copper Costs: Mines & Proj ects 2006 editi on

12
2007 Production League Ranked on C1 Cash Cost by Minesite (Pro Rata Costing)

200.0

Escondida Minesite
150.0
US c/lb

100.0

50.0

0.0
0 5000 10000 15000 20000 25000 30000
Cumulative Product ion (Mlbs)

Source: Brook H unt, Copper Costs: Mines & Proj ects 2006 editi on
Pro-rata Costing i n which cost at each s tage are allocated to each metal pro-rata to its contribution to net rev enue ( e.g a metal that c ontributes 30% of
net revenue is alloc ated 30% of shared cost)

13
Diversified Customer Base
Sales by Destination - 2006
Copper Cathode 11%

Othe rs 10% USA 13%


Japan 4%
It aly 5 %
Kore a 5% Trade rs 16%

Canada 6%
Net herlands 7%

Chile 11 % Me xico 6 %
China 7% Franc e 9%

Copper Concentrate 89%


Ge rmany 5%
South Ko rea 9% Jap an 21%

Oth ers 15%

India 18%
Chile 15%
China 16%

14
Sponsored By Worlds Premier Metals & Mining
Houses
Mitsubishi Corporation 70%
BHP Billiton Limited International Finance
Rio Tinto Plc Mitsubishi Materials Corp 10%
Corporation
100% 100% Nippon Mining & Metals Co Ltd 20%
2.5%

Rio Tinto Japan Escondida


BHP Escondida Inc Escondida Limited Corporation
57.5% 30% 10%

Owners Council

Minera Escondida
Limitada

15
MEL Organization
Presidente
Bert Nacken

Manager Legal
Alejandro Canut de Bon

Manager AACC Manager Business Excellence


Pedro Correa Luis Kessra

Vicepresidencia Vicepresidencia Vicepresidencia Vicepresidencia SS Vicepresidencia Vicepresidencia Vicepresidencia

HSE Minera Procesos Operacionales RRHH Finanzas Desarrollo

Hugo Rojas Patricio Barros Marcelo Villouta Pedro Damjanic Jorge Muoz Alfredo Atucha Andres Hevia

Sub-Committee Name Leader

Sub-committee Water VP Desarrollo


Sub-committee Energy VP SS.OO.

Sub-committee Air Quality VP Mina


Sub-committee Social Responsibility President
Sub-committee Human Resources VP RR.HH.
Sub-committee Maintenance VP Process
Sub-com Contracts &Contractors VP Finance
Sub-committee Capital Expenditure President
Sub-committee Operations President

16
Human Resources

Antofagasta Coloso Mina Santiago Total MEL

Expatriates 2 2

Operators 68 1.996 2.064


Technical &
17 4 131 152
Admin.
Professional /
63 27 589 5 684
Mgrs.
Total MEL 80 99 2.718 5 2.902

Permanent Contractors 3.317


Capital Projects 1.618

Total Contractors 4.935

Note: As of January, 2007

17
Total Recordable Injuries Frequency Rate (TRIFR)
Escondida & Contractors (3 & 12 month rolling)
9 4,5

8 4

7 3,5
Number of injuries by category .

3
6 3

5 2,5
1 3
4 2

3 2 2 2 1,5
5 1 1 3 1
2 2 1
1 3 3 1 1 3 3
1 2 2 2 2 2 2 2 2 2 2 0,5
1 1 1 1 1 1 1 1
0 0
05

06

06
5

06

06

07
5

6
-0

l- 0

-0

-0

-0

-0

-0

-0

l- 0

-0

-0

-0
-0

-0

-0

-0

-0

-0

v-
n-

r-

n-

c-

b-
ov
ar

pr

ar
go

ep

ne

eb

go

ep

ne
ay

ic

ay
ct

ct
Ju

Ju
Ab
Ju

Ju

No

Fe
Di
D
M

M
A

O
N
M

M
A

E
F

Number of Fatalities Number of LTI Number of Medical Treatment TRIFR 12 Month Rolling TRIFR 3 Month Rolling

18
Community Engagement Approach

Priorities (1,2) Approach


Social Capital Development Reputation
Area
Minera 1 2 Long term, politically neutral,
Education, Health, Social Execution of social projects with beyond the operation's life
Escondida
development, Indigenous high and sustainable community time. Antofagasta and II
Foundation Region
Affairs, and youth. impact
(Antofagasta II Region)
Corporate 1 Short and M edium term,
Affairs 2 Partnership, neighborhood regional development
Social project with high and relationships and cooperation with strategy, specific community
Antofagasta support in Coloso& Peine.
sustainable impact in the II stakeholders
Region. Support to company
(Antofagasta, Coloso, Peine)
employees on voluntary social
initiatives
Corporate 1 Open and constructive
Affairs 2 Art and Culture initiatives for low relationships with stakeholders
Santiago income groups, partnerships, and including NGO's and local and
dialogue with authorities. national authorities

19
Main Community Projects - FY07
Corporate Affairs

2010 No Slums; Antofagasta Region.


Alliance with Ministry of Housing and A Roof for Chile NGO, with the purpose to provide
a permanent housing for 1048 families currently living in slums in cities of the Antofagasta
II Region.
Programme for Professionals Towards a Globalized Chile.
Scholarship program to provide international postgraduates studies for 150 Chilean young
professionals, with working experience and who come mainly from lower and middle-
income sectors, and accomplish academic merits and personal profiles.
Santiago a Mil, Street Theater Festival at Santiago and Antofagasta.
Leverage at the national level the company commitment with low income groups access to
high level art and culture expressions.

Escondida Ladies Committee


Scholarships Program for lower income students, financed with different collecting fund
initiatives.

Voluntary Initiatives of Escondidas Employees


14 social projects presented by Escondida's employees in areas of training and equipment
for social organizations were selected by the Social Responsibility Fund for the year 2007.
More than 1500 workers involve in voluntary work.

20
Main Community Projects - FY07

Minera Escondida Foundation

Playgrounds (3) and Nursery Houses (12) construction at Antofagasta and Calama.
Alliance with National and Local Government and National Council of Playground Facilities for 528
Childs from lower income families. This project is being supported by the President Mrs. Bachelet.

Fund For Indigenous Organizations


12 projects were financed for indigenous communities from the villages of Ro Grande, Camar,
Toconao, Taira, Ayllu de Cucuter, Calama, and San Pedro de Atacama. These initiatives are oriented
to capacity development in project management, associatively and community relations.

Industrial and Mining Training Center

School For Industrial Duties


Program oriented to improve the qualification levels of the labor force under a development skills
methodology in order to accomplish the mining industry labor force requirements.

21
Escondida Mine Pit

22
FINAL (Main Pit) Dimensions

DIMENSIONES PIT FINAL (KMS)


EW 3.5
NS 4.8
H 0.84 Distance EW 3.5 km

Distance NS 4.8 km

Deep 840 m (Initial Bench 3255, Final Bench 2415)


23
FINAL (Escondida Norte) Dimensions

DIMENSIONES PIT FINAL (KMS)


EW 2.7
NS 2.6
Distance EW 2.7 km
H 0.795

Distance NS 2.6 km

Deep 795 m (Initial Bench 3410, Final Bench 2615)


24
Resources as at end June 2006

Resources as at end June 2006


Escondida Measured (A) Indicated (B) Inferred (C) Total (A+B+C)
Ore Type Cut-off Tonnes TCu Tonnes TCu Tonnes TCu Tonnes TCu
millions % millions % millions % millions %
Sulphide Variable 556 1.18 987 0.97 575 0.82 2,119 0.98
Sulphide leach Variable 635 0.51 1,435 0.48 2,731 0.47 4,801 0.48
Oxide 0.2 69 0.67 15 0.55 9 0.56 93 0.64

Total 1,261 0.81 2,437 0.68 3,315 0.53 7,013 0.63


Escondida Norte
Ore Type Cut-off Tonnes TCu Tonnes TCu Tonnes TCu Tonnes TCu
millions % millions % millions % millions %
Sulphide Variable 149 1.55 330 1.33 139 1.05 619 1.32
Sulphide leach Variable 70 0.61 702 0.57 1,431 0.51 2,203 0.53
Oxide 0.2 5 1.20 20 1.14 7 1.17 32 1.16

Total 224 1.25 1,052 0.82 1,577 0.56 2,853 0.71


Total Resources
Ore Type Cut-off Tonnes TCu Tonnes TCu Tonnes TCu Tonnes TCu
millions % millions % millions % millions %
Sulphide Variable 705 1.26 1,318 1.06 715 0.86 2,738 1.06
Sulphide leach Variable 705 0.52 2,136 0.51 4,162 0.48 7,004 0.50
Oxide 0.2 74 0.71 35 0.88 16 0.82 125 0.77

Total 1,485 0.88 3,489 0.72 4,893 0.54 9,866 0.65


Resources are based on information c ompiled by J C amacho(CP), who is a member of the Aus tralian Ins titute of Mining and Metallurgy. Mr Camac ho was
(*)Sol. Cu employed by Minera Esc ondida Limitada. He has s ufficient experienc e with the estimation, assess ment, evaluation and economic extraction of large sc ale c opper
mining oper ations and projec ts. T his experience is r elevant to the style of mineralizati on and type of deposit under consider ation and to the acti vity which he is
undertaki ng, and as s uch he qualifies as a Competent Pers on as defi ned in the 1999 Edition of the 'Australasi an C ode for Reporting of Exploration Res ults, Mineral
Resources and Ore Res erves'.'

25
Reserves as at end June 2006
Ore Reserves As at June 2006
Escondida Proved (G) Probable (H) Total (G+H)
Ore Type Cut-off Tonnes TCu Tonnes TCu Tonnes TCu
m illions % millions % m illions %
Su lphide Variable 555 1,18 846 1,00 1.401 1,07
Sulphide leach Variable 592 0,51 994 0,51 1.586 0,51
Oxide 0.2 69 0,67 (*) 15 0,55 (*) 85 0,65 (*)
Total 1.217 0,82 1.856 0,73 3.072 0,77
Escondida Norte
Ore Type Cut-off Tonnes TCu Tonnes TCu Tonnes TCu
m illions % millions % m illions %
Su lphide Variable 149 1,55 321 1,34 470 1,41
Sulphide leach Variable 59 0,55 549 0,61 608 0,60
Oxide 0.2 5 1,20 (*) 20 1,14 (*) 25 1,15 (*)
Total 213 1,27 890 0,89 1.103 0,96
Total Reserves
Ore Type Cut-off Tonnes TCu Tonnes TCu Tonnes TCu
m illions % millions % m illions %
Su lphide Variable 704 1,26 1.167 1,09 1.872 1,16
Sulphide leach Variable 651 0,51 1.543 0,55 2.194 0,53
Oxide 0.2 74 0,71 (*) 35 0,88 (*) 109 0,76 (*)
Total 1.430 0,89 2.745 0,78 4.175 0,82
Ore reser ves ar e based on i nfor mati on c ompiled by P Fehlandt (CP), who is a member of the Aus tralian Institute of Mining and Metallurg y. Mr
Fehlandt is empl oyed by Minera Escondida Limitada. H e has s ufficient experience with the esti mation, ass essment, evaluation and ec onomic
(*) Sol. Cu extraction of large sc ale c opper mining operations and proj ects. This experience is relevant to the style of mi neralizati on and t ype of deposit
under consideration and to the acti vity whic h he is undertaki ng, and as s uch he qualifies as a Competent Pers on as defi ned in the 1999 Edition of
the 'Austral asian Code for Reporting of Explorati on R esults, Mineral Res ources and Ore Res erves'.'

26
Escondida Mining Fleet - Dec 2006

Electric Rope Shovels Total 17


- Shovel (73 yd Dipper) 5
- Shovel (67 yd Dipper) 2
- Shovel (55 yd Dipper) 9
- Shovel (30 yd Dipper) 1

Haul Trucks Total 122


- Trucks (240 mt) 73
- Trucks (380 mt) 49

Front End Loaders Total 5


- (23 yd Bucket)

Drills Total 18
- 49R R2 R3s (10), DMM2s (2), D M45 (3), C M780 (1) & 250XPs (2)

Auxiliary Equipment Total 70

27
MEL Future Growth Options

MEL is developing studies in three areas:

Improve the performance of actual facilities through optimization and small


expansions such as pre-crushing and additional grinding capacity,
Increase throughput by adding new facilities, such as a new/additional
concentrator to the two existing ones.
Increase/maintain throughput over time by bringing in new potential ore
sources by exploration.

Exploration:

MEL initiated a brown fields exploration program in 2005 with the objective of
investigation the ore potential of its current tenements (4,000 sq. kms
approx) around its operations.

28
Presentation Content

General Overview
Production
Key Financial Numbers
Water & Energy

29
General Diagram

Concentrator Plants
Crusher
Main Pit Pit Escondida
Norte
Copper Concentrate Puerto Coloso

Waste Oxide Mix Ore Sulphide


Crusher

Stock
Sulphide

Dumping

Stock Mix Ore

SX Sulphide

Copper
Stock Cathodes
xide
Crusher Oxide
Puerto Antofagasta

30
Copper Production 000s of tons of copper Payable
1400
1,283

1,159 116
1200
'000s Tonnes of Production of Cu Payable

1,047
152
967
1000
866 867 151
831 847
151
56 741
800 145 137

151 592
600 1,167
87
1,008
831 896
400 810 817
702 730
591
505
200

0
1998 1999 2000 2001 2002 2003 2004 2005 2006 YTD Dec
06
Fiscal Years Concentrate Cathodes Total

31
Mine earth movement 000s TPD (ex-Pit)

1200
1026 1009
1000 901 906
835 814 834
800 725
'000s Tonnes per Day

678 681

600

400

200

0
1998 1999 2000 2001 2002 2003 2004 2005 2006 YTD Dec
06
Fiscal Years

32
Copper Production in Concentrate
& Head Grade

Material Milled, Headgrade and Copper Production


1. 400 3,50%

Tonnes milled (00 000t) Production (Cu Contained) (kt) Headgrade (%)
1. 200 3,00%

1. 000 2,50%

800 2,00%

600 1,50%

400 1,00%

200 0,50%

0 0,00%
FY91 FY 92 FY93 FY94 FY95 FY96 FY 97 FY98 FY99 FY 00 FY01 FY02 FY03 FY04 FY 05 FY06 YTD
Dec-06

33
Los Colorados Concentrator
Plant

34
Concentrator Plants

Water
SAG Mills
Ore Water
Pebbles

Ball Mills

Flotation Rougher

Tailings Recovery
Water

Agua

Thickener
Tailings
Remill

Flotacin Cleaner
Scavenger Thickener

Tailings

2 Cleaner Flotation
Concentrator
Thickener Recovery Water
Concentrator
to Coloso
35
Los Colorados Production 000s TPD milled

140

120

100
'000s Tonnes per Day

80

60 125 125 118 119 122


116 115 108
103 107
40

20

0
1998 1999 2000 2001 2002 2003 2004 2005 2006 YTD
Dec06
Fiscal Years

36
Laguna Seca Concentrator Plant

37
Laguna Seca Production 000s TPD milled

140

120

100
'000s Tonnes per Day

80

60 118
109 114
97,7
40

51,5
20

0
2002 2003 2004 2005 2006 YTD Dec06
Fiscal Years

38
ESPACIO FOTOGRAFIA
(Opcional)

Coloso Filter and Port Facilities


Coloso Port Concentrate Shipped (000s of tons)

4000

3500

3000
'000s Tonnes Shipped

2500

2000
3,425
1500 2,994
2,617
1000 2,073 2,145 2,105 2,056
1,813 1,682
1,465
500

0
1998 1999 2000 2001 2002 2003 2004 2005 2006 YTD Dec
06
Fiscal Years

40
Escondida SX-EW Oxide Plant

41
Flowsheet (Oxide & Sulphide Leach)

Mine
Raffina te
Mine

Ac id
Primar y Stock pile

Crusher Lea ching


Water Air

PLS
Se cundar y Tertiar y
Crushing Cr us hing

Acid Wa te r
Silo
Ra ffinate PLS

E
Agglome ration
Ra ffinate
ILS Loaded Solv ent Str ippe d
A cid Extra ction
Lea ching Or ga nic Organic

Wate r

S
PLS ILS

Raffina te

PLS Inte rPlant

E
Pipeline
1 7 km

Loade d Solve nt Strippe d


Or ga nic Extr action (SX) Or ga nic

S
E.R E.P E.P E.R
Power
Power

Caopper C opper Ca thode s


Electr owining Ele ctrowining
Ca thodes

42
Production 000s Tonnes of Cathodes

160

140

120
100
'000s Tonnes

80 151 151 152


145 151 36
137
60 116
40
56 51
20

0
1999 2000 2001 2002 2003 2004 2005 2006 YTD
Dec06
Oxide S.Leach

43
Sulphide Leach Cu production in FY07

Sulphide Leach Cu Production in Tonnes


40000

35000
Copper Production cummulative

30000

25000

20000

15000

10000

5000

0
Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06
Month

44
Key Challenges

Safety (MEL and Contractors),


Labor Relationship
Increase the availability of mine equipment (trucks)
Productivity ( increase productivity, contractor management)
Supply of new Tyres
Supply of new mine equipment
Water
Energy

45
Presentation Content

General Overview
Production
Water & Energy
Key Financial Numbers

46
WATER STRATEGY

Five focus areas

1. Base Case: desalination expansion.


2. Water Market as supply option.
3. Optimization of current water resources
4. Water Recovery Projects & Studies.
5. Water Exploration

47
SING Generation in the near future (2006 - 2010)

Power MW

Installed
3000 --
Generation
GAS
3,600 MW GAS 2,100 MW
2,100 MW
Gas or
Diesel
2000 -- generation Dual-Diesel
needs
800 MWmax
D-F.O.
Diesel-F.O. 300 MW
300 MW
BHPBilliton
1 1 1 2100
2,120 MW New Coal
1000 -- SING 7 8 9
Without MW Plant
Demand 5 5 5 COAL
Gas
0 0 0
1,650 MW COAL 1,550 MW
M M M
1,200 MW W W W

48
2006 2007 2008 2009 2010
Natural Gas Restriction (2004 2007).
N AT URA L GAS R EST RI CT ION S

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
04

06

06

7
-0

-0

-0

-0

-0

-0
-

b-

o-

v-
go

go

eb

eb
ay

ov

ay

ov

ay

o
Fe

Ag
N

N
A

A
M

M
F

F
%DEMAND % RESTRICT IONS

Natural Gas Price (Aver.): Mar. 04: 2.32 USD/MMBTU


Feb. 07: 5.55 USD/MMBTU
Source: CDEC SING
49
BHP Billitons Strategy Short & Long
Term.

Considering the gas fired power generation installed in the SING and the uncertainty in the
natural gas supply, BHP Billiton defined a strategy to ensure electricity supply at the lowest
possible cost:

Interim Solution (2007-2010):


Running pre-feasibility studies for different alternatives:
Self generation (Local Diesel Generators)
On Shore LNG Terminal (Regasification On Shore & Floating Storage)
Off Shore LNG Terminal (FSRU - Floating Storage Regasification Unit)

Long-term Power Supply (2010-2026):


Subscribe Power Purchase Agreements with power generation companies based in coal
fired generation.

The agreements involve the construction and operation of a coal fired thermoelectric plant of
at least 400 MW connected to the SING.

50
Presentation Content

General Overview
Production
Water & Energy
Key Financial Numbers

51
Net Profit $Million

7,000 3.5

1400 1283
1159
1200 1047 3.09
6,000 3.0
1000

800 2. 80
592
600
5,000 2.5
400 4,560
200

0
4,000 FY 2004 FY 2005 FY 2006 Dec 06 YTD 2.0
Payabl e Pro duction

3,000 1. 51 1.5
2,456

1. 15
1, 896
2,000 1.0

1,111
1,000 0.5

0 0.0
FY 04 FY05 FY06 YTD Dec 06

Net P rofit Copper Price

52
Profit & Loss
FY 04 FY 05 FY 06 YTD Dec 06

Gross Revenue 2.726 3.935 8.069 4.150

Refining / Treatment / Shipping (378) (508) (912) (418)

Net Return on Sales 2.349 3.427 7.158 3.732

Cost of Sales (691) (809) (947) (555)

Gross Profit 1.657 2.618 6.211 3.177

EBITDA 1.610 2.546 5.903 3.193

Depreciation & Amortization (206) (194) (252) (120)

EBIT 1.404 2.352 5.651 3.074

Interest (66) (63) (47) (52)

Tax (227) (392) (1.045) (565)

NPAT 1.111 1.896 4.560 2.456

53
C1, C2 & C3 Cost Components
Cost C1
+ Cash Cost
- Deferred Stripping inventor y increase
+ Inventor y movements (Concentrate + Cathodes)
+ Treatment & Refining Charges
+ Concentrate Shipment Charges
+ Cathode Shipment Charges
- Gold and Silver revenue

Cost C2
+ Total C1 Costs
+ Depreciation
+ Deferred Stripping amortization.
+ Amortizations

Cost C3
+ Total C2 Costs
+ Interest Expenses
+ Interest Income
+ Exploration Costs
+ Other Expenses / Income

54
C1 Costs

0.80

0.70
0.609
0.60 0.565

0.50
cUS$/lb Cu

0.40
0.680
0.30 0.592
0.479
0.20 0.425

0.10

0.00
FY04 FY05 FY06 YTD Dec 06

C1

55
Business Excellence Benefit

000' US$

150,000

119,272
120,000

45,633
90,000
74,951

60,000 32,442 51,847


41,116
73,639 25,200
30,000 19,726
42,905
21,490 26,647
0
FY04 FY05 FY06 YTD Dec 06

Revenue Cost

56
Cash Flow before Funding & Dividends $m

US$Millions
4,000

3,447
3,500

2,982
3,000

2,500

Cash Flow
2,000 Capex

1,500
1,280
1,080
1,000
713
652

500
206 173

0
FY04 FY05 FY06 YTD Dec 06

57
Taxes Paid

2,500

2,000
US$5.676m.
Million US$

Taxes paid since Escondida


1,500 start up

1,000

500

0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
TOTAL 0 3 129 71 138 155 253 331 119 165 182 84 39 118 617 861 2,411
Royalty 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 266
WHT Dividends 0 0 82 35 48 44 141 188 87 115 114 66 20 30 303 329 1,148
First Category 0 3 46 36 91 111 112 143 32 50 68 17 19 88 314 532 997

First Category W HT Dividends Royalty TOTAL

58
Debt Maturity Profile

Maturity Profile as at 31 Dec 2006 ($Millions)


$ 400 Capital Markets
$ 350 ECA Debt
$ 300 Bank Debt
$ 250
$ 200
$ 150
$ 100
$ 50
$0
FY06 FY07 FY08 FY09 FY10

External Debt Instruments 31 Dec 06

Chile Bond $40m Outstanding


Syndicated Bank Debt $440m Outstanding
Export Credit Agency Debt $455m & $125m

59
THANKS

60