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BOLIVIA
TOCOPILLA CHUQUICAMATA
CHILE
MEJILLONES
ANTOFAGASTA
COLOSO ZALDIVAR
Cerro Colorado MONTURAQUI
ARGENTINA
Radomiro Tomic
Chuquicamata
Michilla Lince Spence TATAL
Mantos Blancos
Lomas Bayas Escondida
EL SALVADOR
El Tesoro Zaldivar
CHAARAL
Manto Verde El Salvador POTRERILLOS
La Candelaria INCA DE ORO
Andacollo El Indio
Los Pelambres
El Soldado Andina
Zaldivar
Pit
Concentrator
Main
Pit
Oxide Hamburgo
Leach Pads Tails
N
Phase IV
Base Metals CSG - Escondida - Merrill Lynch Analysts Andean Adventure
5 km
Plant site
Page 4 18 Nov 2002
Coloso Filter & Port
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
Escondida Ph IV Codelco
Freeport Indonesia
Escondida Ph IV
Chuquicamata
Morenci
Copper Mines
BHP Billiton
El Teniente
Grupo Mexico
Los Pelambres
Bingham Canyon Rio Tinto
Andina F-McMoran
Rudna
KGHM
Dzhezkazgan
Oktyabryski Anglo
0 400 800 1200 0 500 1000 1500
Copper Production ('000 tonnes) Copper Production ('000 tonnes)
Source: Brook Hunt & Associates, Note: BHP and Rio Tinto production shares include
Calendar year 2000, plus shares of Escondida production. Brook Hunt do not rate
Escondida Ph IV 2004 projection. Escondida as a stand alone company.
Owners Council
variability
1991-1997 1998-2010
Cu - Fe Oxides
cc
cc+cv+cp+py
cp + py
>2010
py >> cp
2,500
Ore Grade 2.5%
450 ktpa
Oxide
2,000 Ph. 3.5 Phase 4 at 110,000 tpd 2.0%
P
h
a 3
1,500 s 1.5%
e 300 ktpa
Ph. 2
1,000 1.0%
Ph. 1
0 0.0%
1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014
fine copper production fine copper production fine copper production sulphide ore grade
1988 Project Approval through Phase 3.5 Phase 4 Expansion Phase 4 Expansion
Philippines
5%
England
10% Italy
Brazil 16%
5%
China
6% Chile Holland
14% 10% Brazil
Germany
10% 12%
140
120
C1 Cash Operating Cost
Escondida Minesite
100
(US c/lb)
80
60
40
20
0
0 5,000 10,000 15,000 20,000 25,000
Cumulative Production (Mlbs)
t
Escondida Real Cost and Cooper Industry estimate
140
100
(US c/lb)
80
60
40
20
0
0 5,000 10,000 15,000 20,000 25,000
Cumulative Production (Mlbs)
Escondida Real Cost and Cooper Industry estimated Cost
16
14
12
# of Incidents
10
10
8 7
6
2 1
0
2000 2001 2002 2003
Fiscal Years
900
800
700
'000s Tonnes per Day
600
500
901 928 930
400 835 841 863 863
678 681 725
300
200
100
0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Fiscal Years History Forecast Budget
0.80
0.70
0.60
US$ / t Mined
0.50
0.20
0.10
0.00
1998 1999 2000 2001 2002 2003
Fiscal Years History Forecast Budget
Escondia FY99 14
Escondida FY00 15
1
0.90
Escondida FY01 16 22
Escondida YTD FY02 17 0.80 8 34
Escondida Budget FY02 18 13 27 20
Escondida Budget FY03 19 25 4
0.70 28
20
14 24 15 3 19 FY03
29 2 18
21 12 32 16
0.60 33 17
22 23 30
26 9 LQ:0.60
23 31 5
24 0.50
25
0.40 21
26
27
28 0.30
29
30 0.20
31 20 30 40 50 60 70 80 90 100 110 120 130
32
33
Productivity (ton Mined/Hour)
34
120
100
'000s Tonnes per Day
80
20
0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Fiscal Years History Forecast Budget
4.00
3.50
3.00
US$ / t Milled
2.50
1.00
0.50
0.00
1998 1999 2000 2001 2002 2003
Fiscal Years History Forecast Budget
0.8% 0.8%
80 0.7% 0.8%
60 0.6%
40 0.4%
20 0.2%
0 0.0%
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Fiscal Years History Forecast Budget Ore Grade (%)
0.25
0.20
US$ / lb Cathode
0.15
0.262 0.250 0.249 0.256
0.244
0.10
0.05
0.00
1998 1999 2000 2001 2002 2003
Fiscal Years History Forecast Budget
17
10.0
18
19 5.0
20 -
21 0 20 40 60 80 100 120 140 160 180 200 220 240
22 Productivity (Kg-Cu/Hours)
23
2.5%
2.0%
Head Grade % Cu
1.5%
2.75%
2.22%
1.0% 1.95% 1.89%
1.69% 1.57% 1.65% 1.56% 1.61%
1.53%
0.5%
0.0%
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Fiscal Years History Forecast Budget
1,800
1,600
1,400
1,200
Copper - 000's t
1,000
800
600
400
200
-
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Fiscal Period
1,400 1,400
1,200 1,200
1,000 1,000
Copper - kt
Copper - kt
800 800
600 600
400 400
200 200
- -
2003
2005
2007
2009
2011
2013
2015
2017
2019
2021
2023
2025
2027
2029
2031
2033
2035
2003
2005
2007
2009
2011
2013
2015
2017
2019
2021
2023
2025
2027
2029
2031
2033
2035
Fiscal Period Fiscal Period
1,400 1,400
1,200 1,200
1,000 1,000
Copper - kt
Copper - kt
800 800
600 600
400 400
200 200
- -
2003
2005
2007
2009
2011
2013
2015
2017
2019
2021
2023
2025
2027
2029
2031
2033
2035
2003
2005
2007
2009
2011
2013
2015
2017
2019
2021
2023
2025
2027
2029
2031
2033
2035
bad as the
Stock/Consumo (Semanas de
(USc/lb)
10
80
8
60
6
4 40 Stocks
20 pass over
2 Stock Demand critical
0 0 levels and
rising
1980
1985
1990
1995
2000
Base Metals CSG - Escondida - Merrill Lynch Analysts Andean Adventure
Page 38 18 Nov 2002
Resistance to Closure and Consolidation
Persistent optimism of imminent return of higher prices
Most operations making cash at $0.65/lb
Higher cost assets have already closed or improved cost competitiveness
Cross subsidization of asset portfolio
Re-financing opportunities at historically low rates
Country priorities: foreign exchange, employment, basic
services, etc
Lack of feed for integrated smelters
Excessive environmental liabilities associated with many
take-over targets
Escondida FY01 16 3 33
65 19 26
Escondida FY02 17 28
Escondida Budget FY03 18 9
55 1 12
19 20 24
20 8 31 21 13 FY98
45
14 FY99
21 2 22 15 FY00
22 30
25 11 29
23 35 17 FY02 16 FY01
24
25
25 4 18 BFY03
26
27
28 15
29 32
30 5
31
0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 2.2 2.4 2.6 2.8
32
Grade Ore (% )
33
Escondida FY01 16
1
Escondida FY02 17 70 25
21 2
Escondida Budget FY02 18 8 11
9
Escondida Budget FY03 19 32 14 FY99
31 26 18 BFY02 22
20 60 30
21
22 4
17 FY02 15 FY00
23 50 13 FY98
16 FY01
24 19 BFY03
25 33
40
26
27
28 30
29
30
31 20
32 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 2.2 2.4 2.6 2.8
33
Grade Ore (% )
34
Escondida Norte
Waste Dump Open Pit
Facilities Premine 250 MT
Sulphide Ore
Laguna 584 MT @ 1.3 % TCu
Seca Conc
Crusher
Oxide Ore
97 MT @ 0.82 % SCu
Sulphide Low grade
Norte Pit Los Colorados 442 MT @ 0.6 % TCu
Concentrator
5 Electric Shovel
Escondida Pit 39 Haul Trucks
1 Semi Mobil Crusher
CMZ 6 Km Land Conveyors
Maintenance Shop
Capital
Order of magnitude
US$400m (100%)
including US$170 pre-
strip
Base Metals CSG - Escondida - Merrill Lynch Analysts Andean Adventure
Page 52 18 Nov 2002
Escondida Sulphide Leach Outline
Sulphide Leach Circuit 2.3 Billion tonnes sulphide ore at 0.55%TCu
Approx 50 Mtpa @0.5% TCu
Current stockpile 86Mt
Acid solution
Solvent Extraction
Solvent extraction
Rich Electrolyte
Electrowinning
Expected recovery 30-35%
Lean Electrolyte
Electrowinning 84,000
84,000tpa
tpaCathodes
Cathode
Approx 50% of Cu is chalcopyrite
Tonnage & mineralogy highly variable
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