CODELCO NORTEChallenges and Opportunities

CRU 7th World Copper Conference, Santiago, Chile

April 2008

Sergio Jarpa, Corporate Vice President Codelco Norte

CODELCO NORTE Challenges and Opportunities

CODELCO NORTEChuqui Norte

Expansión Norte Mina Sur

MM

Toki

Genoveva

Opache

Quetena

Radomiro Tomic

Mina Sur

Chuquicamata

CHUQUICAMATA

CALAMA

Radomiro Tomic MineOpen pit mining,

commisioning in 1995

Chuquicamata MineOpen pit mining, industrial scale

commisioning since 1915

Sur Mine Open pit mining, started in 1970 as

La Exótica,

CODELCO NORTE Challenges and Opportunities

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Ruta 24 Cobija

Bypa ss MM

Circunvalac ionesPe ri urba nas

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B-400

CALAMACALAMA

BAQUEDANOBAQUEDANO

TOCOPILLATOCOPILLA

MEJILLONESMEJILLONES

MARIA ELENAMARIA ELENA

CHUQUICAMATACHUQUICAMATA

SIERRA GORDASIERRA GORDASAN PEDRO DE ATACAMASAN PEDRO DE ATACAMA

ANTOFAGASTAANTOFAGASTA

CODELCO NORTE Challenges and Opportunities

2000 l/s from own sources in the mountain range1. Water :

390 MW from the SING, Electroandina Company.Contracts until 2009 and 2017. Coal and Diesel Generation

2. Electric Power :

Diesel and bunker: via trucks from Antofagasta3. Fuels :

Via truck or railroad from the ports of Antofagasta, Iquique, Mejillones and other places from the country.

4. Materials :

Own production, occasional purchases from Mejillones.5. Acid :

Railroad (Chuqui) and trucks (RT y SBL).6. Transportation :

Roads: Antofagasta – Tocopilla.Railroad: to the ports of Antofagasta and Mejillones.Air: 3 airlines.

7. Logistic routes :

CODELCO NORTE Challenges and Opportunities

• Sustainable Development Policy: Environmental Management – Safety and Social Responsibility.

• ISO 14.001 and 9001 and OHSA 18.001 Certification

• Chuquicamata cease to be an SO2 emission saturated zone and has its own air quality monitoring system.

• Mining Camp relocation to Calama

• Environmental Investment: 1,000 MUS$ in last 10 years

• EIA Puno and MM Proceedings

• Codelco Strong Social Commitment with local community

CODELCO NORTE Challenges and Opportunities

Total in Situ 17.707 Millions of Tons@ 0,52 % Cu - 92,7 Mtons of i.s. Copper

CODELCO NORTE Challenges and Opportunities

-

10

20

30

40

50

60

70

80

90

100

110

120

Division

Mto

n

Recursos 26 39 13 91 102 99

Reservas 10 13 9 34 44 38

RT Chuquicamata MMH DCN Andina Teniente

CODELCO NORTE Challenges and Opportunities

ENMS

HidrosurCathode

Heap Leaching SX-EW

CHUQUI

MM Project

ER

Roaster

Cathode

Calcine

Smelter

Bioleaching

Heap LeachingRT

Anodes

Mill

SX-EW

Hidronorte

Sulphur Line

Cu/MoConcentrateCalcine

CODELCO NORTE Challenges and Opportunities

PREStripping

MMH

20522007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Bioleaching oftailing sands

RT OreBioleaching

Roasting procesFor MMH concentrates

2020 2023

MMHUnderground

ChuquiUnderground

Chuqui Open Pitclosed

MMHOpen Pit

CODELCO NORTE Challenges and Opportunities

KTPD

Ave

rage

Gra

de

(%)

RTS

Chuqui Open Pit RTS Chuqui UG MMH Open Pit MMH UG Average Grade (%)

CODELCO NORTE Challenges and Opportunities

Undevelopedplan

0

20

40

60

80

100

120

140

160

180

200

2008 2010 2012 2014 2016 2018 2020 2022 2024

Chuqui Under. Chuqui Open P. MM Under. RT MM Open P.

RT Plan

60 ktpd

2010 020

40

60

80

100

120

140

160

180

200

2008 2010 2012 2014 2016 2018 2020 2022 2024

VaR95% : MUS$ 2.055

VaR95% : MUS$ 480

ΔVaR95%: MUS$ - 1.575Variation

Chuqui Under. Chuqui Open P. MM Under. RT MM Open P.

Risk Analisys to 95% Reliability

CODELCO NORTE Challenges and Opportunities

4

CHANCADOR4

MINA R.TOMIC

MINA CHUQUI

7,2

Kms7,2

STOCKPILEFINAL

CORREA

PRIMARY CRUSHER STATION

INITIAL STOCKPILE

CONVEYORBELT

FINALSTOCKPILE

StockpileInicial

CODELCO NORTE Challenges and Opportunities

38S

42N

49NW

48N

51W

52W

53W

CODELCO NORTE Challenges and Opportunities

CODELCO NORTE Challenges and Opportunities

Cu

tA

cum

(%)

Kto

nC

u F

ino

Añ

o

CODELCO NORTE Challenges and Opportunities

• Continue to mitigate geotechnical risk by monitoring and unloading.

• Improve “control” of ongoing operations – benchmarking and operational excellence integration.

• Investigate pre-stripping of RT and acceleration of MMH open pit as opportunities to mitigate risk.

• Revisit high arsenic issue - a long term strategic perspective considering market-values of concentrates and environmental restrictions.

• Reassess the mill expansion strategy - requires a rigorous quantitative approach that fully considers associated risks but also the opportunities to expand production capacity based on our significant mineral resources potential.

• Reevaluate Toki and bioleaching of low grade sulphide resources to mitigate exhaustion of MS an RT leacheable ore.

CRU 7th World Copper Conference, Santiago, Chile

April 2008