annual report and financial statements 2010
antofagasta overview
highlights
a record year for the group achieving revenues 
of us4577 1 million and copper production 
of 521100 tonnes
successful delivery of growth projects the los pelambres 
plant expansion was commissioned in the ﬁrst quarter of 
2010 and commissioning of the esperanza mine 
commenced in november 2010  
total dividends for the year of 116 cents per share 
including special dividends reﬂecting successful 
delivery of the key growth projects and the strong 
ﬁnancial position of the group
signiﬁcant progress in the sierra gorda district 
with mineral resource estimates completed for 
the telégrafo and caracoles deposits and the mirador 
oxides incorporated into the el tesoro mine plan 
deﬁnitive agreement signed with duluth metals limited 
to acquire an initial 40 stake in the nokomis project
the front cover image features minera esperanza
antofagasta is a chileanbased copper mining group with interests in transport and 
water distribution it is listed on the london stock exchange and has been a constituent 
of the ftse 100 index since 2004 antofagasta aims to be a signiﬁcant and proﬁtable 
enterprise by international standards its focus is on highpotential mining deposits and 
it seeks to realise value principally by developing and operating such deposits in order 
to produce copper and related byproducts
to see this report online go to
wwwantofagastacouk
group revenue usm
2009 29626
45771
earnings per share 
us cents
2009 677
1067
yearend net cash usm
2009 15957
13451
total dividends per ordi
nary share
1
 us cents
2009 234
1160
1
  total dividends represent dividends proposed 
in relation to the year 01 antofagasta plc annual report and financial statements 2010
strategic review other information financial statements governance financial review operational review
strategic review 08
strategy for the mining business 10
marketplace 12
key performance indicators 16
risk management 18
overview and highlights 01
antofagasta at a glance  02
chairman’s statement 04
the strategy for growing our mining 
business is based around three pillars
strategic enablers
operational review 22
mining 26
1 securing and strengthening the core business 26
2 organic and sustainable growth of the core business 40
3 growth beyond the core business 42
transport 44
water 45
corporate sustainability 46
financial review 58
governance 68
the board of directors 70
directors’ report 72
corporate governance report  76
remuneration report  81  more information on page 10
 more information on page 11
financial statements 84
statement of directors’ responsibilities  86
independent auditors’ report  87
consolidated income statement 88
consolidated statement of comprehensive income 89
consolidated statement of changes in equity  89
consolidated balance sheet 90
consolidated cash flow statement 91
notes to the financial statements 92
other information 132
five year summary  132
ore reserves and mineral resources estimates 134
mining production and sales transport  
and water statistics 141
glossary and deﬁnitions 144
shareholder information  148
directors and advisors 149
quality of 
existing assets
commitment to 
health and safety
strong ﬁnancial 
position
strong labour 
relations
experienced 
management 
team
community 
relations
extensive mineral 
resource base
efﬁcient 
environmental 
management
3  growth beyond 
the core business
2  organic and 
sustainable growth of  
the core business
1  securing and 
strengthening the  
core business overview
02 antofagasta plc annual report and financial statements 2010
antofagasta at a glance
incorporated in the united kingdom
listed on the london stock exchange antol
ftse100 constituent since march 2004
level one adr in united states anfgy
mining
antofagasta minerals sa amsa is the corporate centre for the mining division based in santiago chile during 2010 its operations produced 
521100 tonnes of copper in concentrate along with gold and silver byproducts and copper cathode as well as 8800 tonnes of molybdenum in 
concentrate production is expected to increase to over 700000 tonnes in 2011 reﬂecting the commissioning of the new esperanza mine   page 34
securing and strengthening the core business current operations
transport
the antofagasta railway company plc founded in 1888 is the main cargo transport system in chile’s 
antofagasta region with a network of over 900 kilometres in chile and a controlling interest in the ferrocarril 
andino network in bolivia it has a 40 interest in inversiones hornitos sa a power plant under construction 
in mejillones  page 44
organic and sustainable growth of the core business 
 page 40
   in the sierra gorda district mineral resource estimates were 
completed in respect of the telégrafo and caracoles deposits
   at los pelambres a scoping study is examining the key factors which 
could allow it to utilise its signiﬁcant resource base in the longer term
   antucoya project feasibility study in progress
esperanza 
esperanza is a sulphide deposit located in chile’s antofagasta region 
1350 km north of santiago over its ﬁrst 10 years of operation it is 
expected to produce an average of approximately 190000 tonnes of 
payable copper in concentrate per year and 230000 ounces of payable 
gold per year through a milling and ﬂotation process  page 34
los pelambres 
los pelambres is a sulphide deposit located in chile’s coquimbo 
region 240 km northeast of santiago it produces over 400000 
tonnes of payable copper in concentrate per year as well as 
molybdenum concentrate through a milling and ﬂotation process 
 page 26
   los pelambres plant expansion completed during q1 2010  
increasing throughput by approximately 30
   esperanza made its ﬁrst shipment of copper concentrate in 
january 2011 following the start of commissioning of the plant 
in november 2010  03 antofagasta plc annual report and financial statements 2010
strategic review other information financial statements governance financial review operational review
market capitalisation at 31 december 2010  
of us245 billion
65 of ordinary share capital controlled by 
luksic family of chile with 35 free ﬂoat
water
aguas de antofagasta sa holds the concession for water distribution in chile’s antofagasta region 
it produces and distributes potable water to domestic customers and untreated water to industrial customers 
 page 45
growth beyond the core business 
 page 42
   reko diq feasibility study and environmental and social impact 
assessment study completed 
   agreement with duluth metals limited to acquire an initial 40 
stake in the nokomis coppernickelplatinum group metal deposit 
   further development of the group’s portfolio of earlystage 
international earnin agreements
michilla 
michilla is a leachable sulphide and oxide deposit located in 
chile’s antofagasta region 1500 km north of santiago it produces 
approximately 40000 tonnes of copper cathodes per year using 
a solventextraction electrowinning process  page 32
   at el tesoro prestripping of the mirador deposit commenced 
in december 2010 
   michilla is continuing with work on the evaluation and recategorisation 
of its resources to allow the extension of its current mine plan  overview
04 antofagasta plc annual report and financial statements 2010
chairman’s statement
2010 was a landmark year for the group with the successful 
completion of the esperanza mine commissioning of the plant 
commenced in november 2010 with the ﬁrst shipment of copper 
concentrate taking place in january 2011 as a result of esperanza 
coming onstream along with the completion of the los pelambres 
plant expansion during the ﬁrst quarter of 2010 group copper 
production is currently expected to increase to approximately  
715000 tonnes in 2011 a 60 increase on the preexpansion 
2009 levels
jeanpaul luksic chairman 05 antofagasta plc annual report and financial statements 2010
strategic review other information financial statements governance financial review operational review
net earnings increased by 57 5 to us10518 million compared with 
us667 7 million in 2009 reﬂecting improved commodity prices and 
increased production volumes cash ﬂows from operations were 
us24339 million compared with us1167 8 million in 2009 mainly 
reﬂecting the increase in proﬁts at the end of 2010 the group had a net 
cash position of us13451 million and total cash cash equivalents and 
liquid investments of us35416 million
group copper production was 521100 tonnes compared with 442500 tonnes 
in 2009 this 17 8 increase was mainly due to increased production at 
los pelambres reﬂecting higher throughput as a result of the plant expansion 
molybdenum production at los pelambres was 8800 tonnes a 128 increase 
on 2009 again due to the plant expansion the transport and water divisions 
both achieved increased volumes
our careful ﬁnancial stewardship during the recent years of development will 
allow a substantial return of capital through the proposed special dividend 
while the signiﬁcant increase in the ordinary dividend underlines our increased 
production base and conﬁdence in our future prospects our ﬁnancial position 
remains strong and we remain well placed to progress with our substantial 
growth opportunities which we have continued to enhance over the past year
during 2010 the chilean government enacted a number of changes to the 
chilean tax system in order to contribute to the reconstruction costs following 
the severe earthquake which affected the country on 27 february 2010 
including changes to both the corporate tax rates and the mining royalty 
the group’s four mining operations los pelambres esperanza el tesoro and 
michilla which have invariability agreements in place with regard to the mining 
tax have voluntarily elected to accept amendments enacted in respect of this 
tax in exchange for waiving protection for a threeyear period from 20102012 
the companies will be granted an additional stability period of six years at the 
end of their existing agreements during which any connected projects will also 
beneﬁt from tax invariability further details of the tax charge for the year and 
the tax structure applicable to the group are set out in the financial review 
on page 63
strategy
the strategy for the group’s mining business continues to be based on three 
key pillars firstly securing and strengthening the core business of the group – 
the los pelambres esperanza el tesoro and michilla mines secondly 
continuing to grow this core business by further developing the areas around its 
existing asset base – the sierra gorda district around esperanza and el tesoro 
the area around los pelambres and areas close to michilla including the 
antucoya deposit and ﬁnally continuing to develop and search for additional 
opportunities including earlystage growth in copper both in chile and abroad 
the successful execution of the esperanza mine and the los pelambres plant 
expansion were major achievements in the group’s growth plans the group has 
also made signiﬁcant progress with its longerterm growth prospects in the 
sierra gorda district mineral resource estimates were completed during 2010 
in respect of the telégrafo and caracoles deposits totalling 39 billion tonnes 
with an average copper grade of 038 and containing additional gold and 
molybdenum credits this gives a total of 61 billion tonnes with an average 
copper grade of 039 in the sierra gorda district at los pelambres a scoping 
study is examining the key enablers which could allow the mine to utilise its 
signiﬁcant resource base in the longer term which could potentially lead to a 
signiﬁcant increase in the scale of the operation later this decade a feasibility 
study is in progress at the antucoya deposit evaluating the potential for a project 
producing approximately 80000 tonnes of copper per year at the reko diq 
joint venture work on the feasibility study and the environmental and social 
impact assessment study are both complete and have been submitted to the 
government of balochistan further progress on this project will be dependent 
on the grant of the mining lease for which an application has been made and 
successful conclusion of litigation which is currently in progress before the 
supreme court of pakistan in july 2010 the group signed a deﬁnitive 
agreement with duluth metals limited to acquire an initial 40 stake in the 
nokomis coppernickelplatinum group metal deposit a potentially worldclass 
base and precious metal deposit located in the highly prospective duluth 
complex in minnesota and work is progressing in respect of the feasibility study 
the group has also expanded its portfolio of earlystage international earnin 
agreements the group is also continuing with its exploration and development 
activities relating to geothermal and coal energy prospects in chile
us cents
175
150
125
75
50
25
2006
1374
earnings per share excluding exceptional items in 2008 and 2010 were 855 cents 
  and 1006 cents respectively
2007
1402
2008
1731855
2009
677
2010
10671006
0
100
earnings per share overview
06 antofagasta plc annual report and financial statements 2010
chairman’s statement continued
sustainable development
sustainable development forms an integral part of the group’s decision
making process and supports achievement of our business strategy the board 
continues to place key importance on a range of considerations including health 
and safety management of human resources environment and community 
relations effective management of social and environmental issues reduces 
costs and risks to our business supports our reputation underpins our 
relationships with key stakeholders including investors regulators 
employees and communities and helps us to maintain our social licence 
to operate and grow 
as a group we have been very proud to be able to play a part in the 
reconstruction efforts in chile following the earthquake and resulting tsunami 
of february 2010 which had a devastating impact on the maule and biobio 
regions five days after the earthquake we had a team and equipment working 
in the severely affected town of curepto in the maule region providing assistance 
and clearing debris we also engaged with the authorities and established a 
us10 million recovery fund which has been mainly used for antofagasta 
minerals sa’s “coastal route” project to support the recovery of artisanal 
ﬁshing which had been severely affected as well as strengthening tourist and 
community infrastructure in addition to this ﬁnancial contribution antofagasta 
minerals is contributing management expertise used in large mining projects 
to help implement the project both for the group as a whole as well as for 
the individuals directly involved the project has been a very positive and 
rewarding experience
health and safety
the board deeply regrets the death of two contractors at los pelambres during 
2010 the board has a clear target of zero fatalities and considers any fatality 
to be unacceptable following these incidents further safety training and 
awareness raising has been provided for workers los pelambres has also 
introduced changes to increase the linkage between safety performance and 
remuneration with 25 of bonuses now based on whether the site’s lost time 
injury frequency target has been met
dividends
in light of the successful completion of the key growth projects and the strong 
ﬁnancial position of the group the board has recommended a ﬁnal dividend of 
112 cents per share comprising an ordinary dividend of 12 cents per share and 
a special dividend of 100 cents per share which if approved will amount to a 
payment in june 2011 of us11042 million taking this payment into account 
the group’s ﬁnancial position remains strong and it remains well placed to take 
advantage of its considerable growth prospects as these continue to progress 
this gives total dividends for the year of 116 cents amounting to us11436 
million and representing a distribution of 109 of 2010 net earnings 
the board’s policy is to establish an ordinary dividend which can be maintained 
or progressively increased at conservative longterm copper prices and through 
the economic cycle in addition the board recommends special dividends when 
it considers these appropriate after taking into account the level of proﬁts earned 
in the period under review the existing cash position of the group and signiﬁcant 
known or expected funding commitments the board’s overall policy remains 
unchanged and the level of distribution in future years including any special or 
additional dividends will depend on the factors set out above
us cents
105
90
75
45
30
15
2006
482
2007
496
2008
600
2009
234
2010
1160
82
including special dividend
86 90 94 160
0
60
excluding special dividend
dividends per share 07 antofagasta plc annual report and financial statements 2010
strategic review other information financial statements governance financial review operational review
board composition
i am very pleased to be able to welcome two new nonexecutive directors to 
the antofagasta plc board who both bring great experience of the international 
mining industry hugo dryland is global head of rothschild’s investment banking 
activities in the mining and metals sector and has 25 years of investment 
banking experience in natural resources tim baker was latterly executive 
vicepresident and chief operating ofﬁcer at kinross gold corporation and 
previously executive general manager of placer dome chile he has previously 
managed mining operations in chile the united states tanzania and venezuela 
and held geological and production roles in kenya and liberia daniel yarur 
retired from the board on 1 march 2011 daniel had been a nonexecutive 
director of antofagasta plc since 2004 and we are very grateful for his 
signiﬁcant contribution to the group over this period and would like to wish 
him every success for the future
outlook
market fundamentals remain positive and while the high level of volatility that 
has characterised commodity prices in recent years is expected to continue 
consensus estimates are for copper prices to remain favourable in 2011 
supply constraints and underlying demand could keep the copper market 
in deﬁcit for a number of years
as previously announced the initial forecast for 2011 group copper production 
is for approximately 715000 tonnes a 37 increase on 2010 levels mainly 
due to the production from esperanza although this will depend on a number 
of factors including the precise timing of the completion of the rampup of 
that operation molybdenum production at los pelambres is expected to be 
approximately 9300 tonnes compared with 8800 tonnes in 2010 due to the 
fullyear impact of increased plant throughput as a result of the plant expansion 
completed in the ﬁrst quarter of 2010 the payable gold content in copper 
concentrate is expected to be approximately 324000 ounces compared with 
35100 ounces in 2010 also as a result of esperanza although again this will 
depend on the precise timing of the completion of the rampup of that operation
the group’s very sizeable resource base within chile provides excellent 
opportunities for longerterm organic expansion and its expanding portfolio 
of exploration and development agreements provides further potential for 
international growth the group’s continued strong ﬁnancial position means 
it is well placed to progress with all of these opportunities
jp luksic 
chairman
7 march 2011
as a group we have been very proud to 
be able to play a part in the reconstruction 
efforts in chile following the earthquake 
of february 2010 strategic review
strategic 
review
08 antofagasta plc annual report and financial statements 2010 strategic review other information financial statements governance financial review operational  review
09 antofagasta plc annual report and financial statements 2010
strategy for the 
mining business
 page 10
marketplace
 page 12
key performance 
indicators
 page 16
risk management
 page 18 strategic review
10 antofagasta plc annual report and financial statements 2010
 
1
 securing and strengthening 
the core business 
  the ﬁrst pillar of our strategy for the mining 
business is to optimise and enhance our 
existing core business – the los pelambres 
esperanza el tesoro and michilla mines
  los pelambres completed its plant expansion during q1 2010 
increasing throughput by approximately 30 
  esperanza made its ﬁrst shipment of copper concentrate in 
january 2011 following the start of commissioning of the plant 
in november 2010 esperanza will signiﬁcantly increase total 
group copper production by approximately 25 
  at el tesoro prestripping of the mirador deposit commenced 
in december 2010 with production from this satellite deposit 
expected to commence in the ﬁnal quarter of 2011 
  michilla is continuing with work on the evaluation and 
recategorisation of its resources to allow the extension of its 
current mine plan as well as additional exploration which could 
further extend the mine life
 
2
 organic and sustainable 
growth of the core business 
   the second pillar of the strategy is to achieve 
sustainable organic growth from further 
developing the areas around our existing 
asset base in chile
  in the sierra gorda district mineral resource estimates were 
completed in respect of the telégrafo and caracoles deposits 
increasing the group’s total mineral resources by 39 billion 
tonnes with an average copper grade of 038 this gives 
a total of 61 billion tonnes with an average copper grade 
of 039 in the sierra gorda district
  at the antucoya deposit a feasibility study is in progress 
evaluating the potential for a project producing approximately 
80000 tonnes of copper per year
  at los pelambres a scoping study is examining the key factors 
which could allow it to utilise its signiﬁcant resource base in 
the longer term
 
3
 growth beyond the 
core business 
  the third pillar of the strategy is to look 
for growth beyond the areas of our existing 
operations – both in chile and internationally 
the primary focus is on potential earlystage 
developments
  at the reko diq joint venture work on the feasibility study and 
the environmental and social impact assessment study are 
both complete and have been submitted to the government 
of balochistan 
  in july 2010 the group signed a deﬁnitive agreement with 
duluth metals limited to acquire an initial 40 stake in the 
nokomis coppernickelplatinum group metal deposit a 
potentially worldclass base and precious metal deposit 
located in the highly prospective duluth complex in minnesota 
and work is progressing in respect of the feasibility study 
  further development of the group’s portfolio of earlystage 
international earnin agreements
strategy for the 
mining business
3  growth beyond 
the core business
2  organic and 
sustainable growth of 
the core business
1  securing and 
strengthening the 
core business 11 antofagasta plc annual report and financial statements 2010
strategic review other information financial statements governance financial review operational review
the group uses the following enablers to support our strategy
quality of existing assets
the group has a highquality lowcost portfolio of operating assets and 
development projects with a weighted average net cash cost of 1040 cents
lb in 2010 this means it is well positioned to perform strongly throughout the 
commodity price cycle the esperanza project will provide additional new 
production also with a low net cash cost  pages 26 to 37
strong ﬁnancial position
the group’s net cash position of us13 billion at the end of 2010 has allowed 
the proposed signiﬁcant capital return to shareholders while still leaving the 
group well placed to progress with its medium and longerterm growth plans 
as well as preserving the ﬂexibility to take advantage of opportunities which 
may arise  page 66
experienced management team
the group’s stable wellestablished management team has an excellent 
track record of delivering on planned production growth and operational 
performance  page 76
extensive mineral resource base
the group has substantial mineral resources well in excess of the ore 
reserves incorporated in existing mine plans which could provide the potential 
for expansions in production volumes or extensions of existing mine lives 
during 2010 the total resource tonnage of the group’s subsidiaries increased 
by 46 from 92 billion tonnes in 2009 to 134 billion tonnes following the 
provingup of the resources relating to the telégrafo and caracoles deposits 
 pages 38 to 43 and pages 134 to 140
commitment to health and safety
management of health and safety is a key priority for the group the group 
aims to work to the highest standards to safeguard its employees contractors 
and communities  pages 49 and 50
strong labour relations
the group values the importance of its workforce the group provides its 
employees with training and opportunities to fulﬁl their potential and with fair 
remuneration which reﬂects their contribution this has been reﬂected in the 
good history of labour relations across the group during 2010 the group 
successfully completed new longterm labour agreements with unions at 
los pelambres and michilla  page 51 
community relations
the group seeks to manage the social impact of its activities and aims to 
make use of its operations as a platform for the social and economic 
development of its local communities  pages 52 to 54
efﬁcient environmental management
the group recognises the importance of the effective management of the 
environmental impacts of its activities from exploration through to closure 
it promotes efﬁcient management of natural resources in particular energy 
efﬁciency and responsible water use  pages 54 to 57 strategic review
12 antofagasta plc annual report and financial statements 2010
marketplace
our products
the principal product of the group’s mining business is copper the los pelambres 
and esperanza mines produce copper concentrate through a milling and 
ﬂotation process the el tesoro and michilla mines produce reﬁned copper 
cathodes using heapleaching processes and in the case of el tesoro also 
a runofmine leaching process and then solventextraction electrowinning 
“sxew” los pelambres and esperanza’s copper concentrate is normally 
sold to smelters for further processing and reﬁning into copper cathodes 
el tesoro and michilla’s copper cathodes are typically sold to copper fabricators 
for processing into applications including copper wiring and tubing for use 
by industrial endusers the principal end markets for reﬁned copper are 
construction and electrical and electronic products which account for more 
than 60 of global copper demand followed by industrial machinery 
transport and consumer products 
sales of copper are typically priced in line with london metal exchange “lme” 
market prices a deduction is made from lme prices in the case of concentrate 
to reﬂect treatment and reﬁning charges “tcrcs” – the smelting and reﬁning 
costs necessary to process the concentrate into copper cathodes cathodes of 
a certain quality or from certain locations may attract a premium above the lme 
price in addition prices realised by the group during a speciﬁc period will differ 
from the average market price for that period because in line with industry 
practice concentrate and cathode sales agreements generally provide for 
provisional pricing at the time of shipment with ﬁnal pricing based on the 
average market price for future periods normally about one month from the 
month of shipment in the case of cathode sales and on average three months 
from the month of shipment in the case of concentrate sales 
the group’s businesses and in particular the mining 
division are heavily dependent on the copper and 
molybdenum markets which in turn are signiﬁcantly 
inﬂuenced by the international economy 
a  constuction 33
b  electrical and electronic products 33
c  industrial machinery 13
d  transport 13
e  consumer products 8
total    100
source wood mackenzie december 2010
global copper consumption by sector market
b
d
c
e
a
a  constructional steel 34
b  stainless steel 26
c  chemicals 13
d  tools and highspeed steel 10
e  mometal 5
f  cast iron 7
g  superalloys 5
total    100
source imoa 2009 data
global molybdenum consumption by sector market
b
d
c
e
f
g
a 13 antofagasta plc annual report and financial statements 2010
strategic review other information financial statements governance financial review operational review
a signiﬁcant proportion of the group’s sales of copper concentrate are made 
under longterm framework agreements these framework contracts will 
typically set out the annual volumes to be supplied with the pricing of the 
contained copper in accordance with market prices as explained above and 
the tcrcs to be determined annually normally in line with industry benchmark 
terms a signiﬁcant proportion of the group’s copper cathode sales are made 
under annual contracts which again specify volumes to be supplied and with 
pricing in line with market prices as explained above 
esperanza and los pelambres also produce gold contained within the main 
concentrate the sales of this gold content is priced in accordance with normal 
market prices in addition los pelambres produces molybdenum a metal which 
is primarily used in the production of highquality steel alloys this is sold in 
separate concentrate form to molybdenum roasters for further processing and 
reﬁning these sales are priced in accordance with market prices and as with 
copper concentrate are subject to ﬁnal pricing adjustments on average one 
month from the month of shipment 
the transport division provides rail and road services with its main business 
being the transportation of copper cathodes from and sulphuric acid to mines 
in chile’s antofagasta region these services are typically provided to customers 
under longterm contracts often with agreed pricing levels which are subject to 
adjustments for inﬂation and movements in fuel prices 
the water division operates a 30year concession for the distribution of water 
in chile’s antofagasta region which it acquired in 2003 it consists of two 
businesses – a regulated business supplying domestic customers and an 
unregulated business serving mines and other industrial users sales to domestic 
customers are priced in accordance with regulated tariff structures while sales 
to industrial customers are generally priced in accordance with contractually 
agreed levels 
reﬁned copper market
the commodity price environment remained very favourable through 2010 
and has continued to perform strongly so far in 2011
the lme copper price averaged 3420 cents per pound over the course of 2010 
a 460 increase on the 2009 average of 2342 cents the price at the start of 
2010 was 3332 cents per pound remaining volatile during the ﬁrst half of the 
year falling to around 280 cents in both february and june 2010 the price then 
rose consistently during most of the second half of 2010 reaching 4418 cents 
per pound at 31 december 2010 which was an alltime high this strong 
performance was principally driven by continued strong demand from china 
and other emerging countries as well as improving demand from western world 
economies the group’s average realised copper price was higher than the 
average market price in 2010 at 3593 cents per pound 2009 – 2706 cents 
with the rising copper prices during the year resulting in positive adjustments 
to provisionally priced sales
the strength of the copper market seen in the second half of 2010 has 
continued in the ﬁrst two months of 2011 during which period the lme copper 
price has averaged 441 cents per pound during february 2011 a record price 
of 460 cents was reached although prices have eased back from this high point 
supply side pressures over the forthcoming years have been increased by the 
project delays and cancellations during the ﬁnancial crisis of 20082009 and 
declining ore grades as existing mines mature a number of physicallybacked 
copper exchange traded funds “etfs” have recently been established and 
while the level of investment in these funds is currently limited they could 
represent a further source of demand for copper this could provide further 
support for the copper price but may also result in increased volatility as 
investment ﬂows play an increasingly important role alongside more traditional 
fundamental drivers of demand current consensus estimates are for the copper 
price to average approximately 435 cents per pound in 2011 with the market 
expected to be in deﬁcit by approximately 440000 tonnes and the market 
balance could remain tight in the medium term
source wood mackenzie december 2010
millions of tonnes
180
160
120
100
80
60
40
20
0
140
2006
174
2002
149
2003
156
2004
170
2005
170
2007
180
2008
180
2009
175
2010
193
world copper consumption
annualized ﬁgure using imoa data until 30 sept 2010 
world molybdenum consumption
’000 tonnes of molybdenum
225
200
150
125
100
75
50
25
0
175
2006
1978
2002
1435
2003
1564
2004
1701
2005
1856
2007
2132
2008
2128
2009
1860
2010
2224 strategic review
14 antofagasta plc annual report and financial statements 2010
marketplace continued
copper concentrate market
the concentrate market continues to be in signiﬁcant deﬁcit with available 
smelting capacity signiﬁcantly in excess of mine supply resulting in low 
treatment and reﬁning charges “tcrcs” which favour mine producers 
the market deﬁcit was approximately 15 million tonnes in 2010 and current 
consensus estimates are that this level of deﬁcit is likely to be maintained or to 
increase slightly in 2011 without fundamental changes to the smelting market 
a deﬁcit is expected to continue for a number of years with resulting favourable 
treatment and reﬁning charges the negotiations for the 2011 annual benchmark 
treatment and reﬁning terms have been predominantly concluded with most 
deals between miners and smelters agreed at us56 per dry metric tonne of 
concentrate for smelting and 56 cents per pound of copper for reﬁning although 
some of los pelambres’ agreements have been settled with a slightly lower 
treatment charge reﬂecting the relatively high copper content of its concentrate 
while this represents an increase from the 2010 annual benchmark terms of 
us465 and 465 cents the impact during 2011 will be reduced by the “brick 
system” in many contracts whereby the terms are often averaged over two years 
molybdenum market
the market molybdenum price averaged us157 per pound in 2010 a 
414 improvement from the average during 2009 of us111 this reﬂected 
signiﬁcantly improved demand from the stainless steel sector the principal use 
of molybdenum particularly from china which since 2009 has been a net 
importer but also increasingly from europe and north america the realised 
molybdenum price in 2010 was marginally above the average market price at 
us162 per pound 2009 – us113 the lme started trading molybdenum 
futures contracts from february 2010 while there is still limited liquidity in this 
market it could provide greater depth and transparency to molybdenum prices 
as it continues to develop
the ﬁrst two months of 2011 have seen an improvement in the molybdenum 
price increasing from us164 per pound at the start of the year to us17 7 
at the end of february 2011 market consensus is for prices to remain at around 
this level during 2011 given the improved demand from the stainless steel 
market and the lack of signiﬁcant supplyside growth in the short term 
key inputs
the group’s mining operations are dependent on a range of key inputs such 
as mining equipment including the supply and maintenance of vehicles and 
replacement parts such as tyres electricity labour and fuel in the case of a 
copper concentrate producer such as los pelambres steel balls used in the 
milling process are also a signiﬁcant input cost with cathode producers using 
the sxew process such as el tesoro and michilla sulphuric acid is a key input 
the availability and cost of these inputs can be key operational issues 
particularly during times of strong demand for commodities 
during 2010 the group has seen sustained market cost pressures and this is 
likely to continue throughout 2011 particularly if the commodity markets remain 
strong weighted average cash costs per pound of copper produced were 
1040 cents per pound in 2010 compared with 963 cents per pound in 2009 
this increase was due to higher onsite and shipping costs at the three mining 
operations partially offset by improved byproduct credits excluding byproduct 
credits cash costs were 137 3 cents per pound compared with 1203 cents in 
2009 this was mainly due to higher input costs in particular energy and the 
effect of the stronger chilean peso across the three mining operations as well 
as the effect of the temporary suspension of the tesoro northeast pit and the 
increased maintenance at los pelambres 
us cents per pound
450
400
300
250
200
150
100
50
0
350
2006
3053
2002
707
2003
807
2004
1300
2005
1671
2007
3233
2008
3153
2009
2341
2010
3420
2011
4405
average lme copper price
represents ﬁrst two months of 2011
us dollars per pound
36
32
24
20
16
12
8
4
0
28
2006
248
2002
37
2003
53
2004
162
2005
320
2007
302
2008
289
2009
111
2010
157
2011
173
average molybdenum market price
represents ﬁrst two months of 2011 15 antofagasta plc annual report and financial statements 2010
strategic review other information financial statements governance financial review operational review
weighted average cash costs excluding byproduct credits are forecast to 
be approximately 140 cents per pound in 2011 broadly in line with 2010 
average costs of 137 3 cents although costs remain susceptible to further 
macroeconomic pressures particularly in a strong commodity pricing 
environment weighted average cash costs net of byproduct credits which 
are subject to ﬂuctuations in the price of gold and molybdenum are currently 
forecast to be approximately 90 cents per pound in 2011 a reduction 
compared with the 1040 cents in 2010 reﬂecting the impact of the additional 
lowcost production from esperanza the estimate for 2011 is based on a 
molybdenum price of approximately us18 per pound and a gold price of 
us1150 per pound
the group enters into medium and longterm contracts for a range of key inputs 
to help ensure continuity of supply and in some cases to guarantee cost levels 
labour agreements are in place at all of the group’s mining operations 
generally covering periods of between three to four years los pelambres 
entered into a new 46month labour agreement with the main union in 
november 2010 in december 2010 michilla concluded negotiations with their 
main labour union for a new 48month labour agreement esperanza currently 
has in place a twoyear labour agreement which runs until may 2011 and 
during the early part of 2011 will be working to put in place a new agreement 
el tesoro’s labour agreement runs until early 2012
the group has longterm electricity supply contracts in place at each of its 
mines in most cases the cost of electricity under these contracts will be linked 
to some degree to the current cost of electricity on the chilean grids or the costs 
of generation of the particular supplier in 2011 los pelambres will enter into a 
twoyear period under its existing energy supply agreement with a lower pricing 
level resulting in a signiﬁcant reduction in its energy cost
the group also normally contracts for the majority of its sulphuric acid 
requirements for future periods of a year or longer at speciﬁed rates 
in most cases contractual prices will be agreed in the latter part of the year to 
be applied to the purchases of acid for the following year in 2010 the average 
cost of acid across el tesoro and michilla including transportation costs was 
approximately us100 per tonne of acid approximately 30 lower than in 
2009 however following a tightening in the acid market during 2010 it is 
expected that the average cost of acid for el tesoro and michilla could rise 
by approximately 30 in 2011
the group was impacted by the increase in oil prices in 2010 the average 
market price for oil during 2010 was us79 per barrel wti compared with 
us62 per barrel in 2009 an increase of 27 clearly oil prices remain 
susceptible to political uncertainty in the larger oil producing countries with 
the wti price trading at over us95 per barrel at the end of february 2011
the group’s costs are also impacted by the chilean peso exchange rate as 
on average across the group’s mining operations approximately 35 of costs 
are denominated in chilean pesos however the economic exposure to 
ﬂuctuations in the chilean peso exchange rate is partly mitigated by a natural 
hedge as the copper industry is a major component of the chilean economy 
and movements in the copper price and chilean peso tend to be correlated 
the average exchange rate during 2010 was ch510us a 9 strengthening 
compared with the average of ch559us during 2009 the peso has 
continued to strengthen during early 2011 reaching ch474us by the end 
of february 2011
a  energy 14
b  equipment rental 8
c  explosives and reagents 3
d  labour 9
e  maintenance 13
f  sulphuric acid 5
g  others 17
h  shipping and tcrc 16
i  steel milling balls 3
j  fuel 4
k  other consumables 4
l  services 4
total 1373 cents per pound    100
2010 weighted average cash cost excluding byproducts by type
b
d
c
e
f
g
h
i
j
k
l
a
weighted average cash cost including byproduct credits 20092010
cents per pound
44
labour
cost
963
2009
66
repairs
and
maintenance
55
energy
45
exchange
rate and
inﬂation
effect
33
processing
of stockpiled
ore held
within
inventory
21
others
17
fuel
cost
91
byproduct
credits and
tolling
charges
113
change in
production
scale
1040
2010 strategic review
16 antofagasta plc annual report and financial statements 2010
financial kpis
 an analysis of financial kpis 
is included within the financial review 
on pages 60 to 67
key performance indicators
the group uses the following kpis to assess 
progress against our strategy
awaiting 
figures
why it is important to us  an indication of the funds 
generated by the business and available for future growth 
and return for shareholders 
performance in 2010  strong operating cash ﬂows offset 
by capital expenditure and dividends paid
net cash us13451m
us million
2625
2250
1500
1125
750
375
2006
14468
2007
19465
2008
29191
2009
15957
2010
13451
0
1875
revenue us45771m
us million
4375
3750
2500
1875
1250
625
2006
38700
2007
38267
2008
33726
2009
29626
2010
45771
0
3125
why it is important to us  revenue represents the income from 
sales principally from the sale of copper as well as the molybdenum 
silver and gold byproduct credits
performance in 2010  revenue increased by 545 as a result 
of higher realised prices as well as increased copper volumes
earnings per share us1067 cents
us cents
175
150
100
75
50
25
2006
1374
2007
1402
2008
1731
2009
677
2010
1067
0
earnings per share excluding exceptional items in 2008 were 855 cents 
and in 2010 were 1006 cents
125
why it is important to us  a measure of the proﬁt attributable 
to equity shareholders
performance in 2010  the increased attributable proﬁt was a result of 
the increased revenue partly offset by increased expenses and taxation
ebitda us27719m
us million
2625
2250
1500
1125
750
375
2006
29573
2007
28240
2008
18998
2009
16807
2010
27719
0
1875
why it is important to us  a measure of the group’s 
underlying proﬁtability
performance in 2010  the increase in turnover was partly offset 
by higher operating costs at the mining division to give an increase 
of 649 in ebitda
capital expenditure us13858m
us million
1225
1050
700
525
350
175
2006
5390
2007
4660
2008
11896
2009
13353
2010
13858
0
875
why it is important to us  a measure of the group’s investment 
in current operations and growth projects
performance in 2010  capital expenditure in 2010 included 
us1343m related to the los pelambres expansion and 
us10586m at esperanza 17 antofagasta plc annual report and financial statements 2010
strategic review other information financial statements governance financial review operational review
operational kpis
 an analysis of the group’s copper and 
molybdenum production are included 
within the review of each operation in the 
operational review on pages 26 to 33 
and within the financial review on page 61
 an analysis of the group’s cash costs are 
included within the review of each operation 
in the operational review on pages 26 to 33 
and within the financial review on page 62
 detailed safety statistics are set out 
within the corporate sustainability section 
on page 50
1
  copper and molybdenum production ﬁgures relating to concentrate 
are expressed in terms of payable metal contained in concentrate
2
  the lost time injury frequency rate is the number of accidents 
with lost time during the year per million hours worked
3
  cash costs are an industry measure of the cost of production 
and are further explained in note c on page 143
chart to be 
redrawn
chart to be 
redrawn
chart to be 
redrawn
copper production
1
 521100 tonnes
’000 tonnes
525
450
300
225
150
75
2006
4655
2007
4281
2008
4777
2009
4425
2010
5211
0
375
why it is important to us  key operational parameter for the group 
as copper is the main product
performance in 2010  increased copper production of 178 mainly 
as a result of the completion of the los pelambres expansion
molybdenum production
1
 8800 tonnes
’000 tonnes
14
12
8
6
4
2
2006
98
2007
102
2008
78
2009
78
2010
88
0
10
why it is important to us  a signiﬁcant byproduct for the group
performance in 2010  higher plant throughput as well as slightly 
improved ore grades increased production
lost time injury frequency rate
2
 ltifr 19
accidents per million hours worked
7
6
4
3
2
1
2006
49
2007
56
2008
44
2009
28
2010
19
0
5
why it is important to us  safety is a key priority for the group 
with the ltifr being one of the principal measures of this
performance in 2010  the ltifr in 2010 was 19
cash costs
3
 us1040 cents per pound
us cents per pound
105
90
60
45
30
15
2006
402
2007
316
2008
873
2009
963
2010
1040
0
75
why it is important to us  a key indicator of operational efﬁciency 
performance in 2010  cash costs beneﬁted from improved 
byproduct credits at los pelambres which partly offset higher costs 
at the three mining operations strategic review
18 antofagasta plc annual report and financial statements 2010
risk management framework
governance 
 vision strategies and objectives
 policies and procedures
 governance structure
 roles and responsibilities
enterprise risk management
 identiﬁcation and evaluation of risks and appropriate controls and mitigations
 monitoring of risks controls and mitigations
 reporting and communication of risks
compliance
 ensuring compliance with policies internal controls laws and regulations
risk management
  effective risk management is an essential element of the group’s operations and strategy the accurate and timely 
identiﬁcation assessment and management of risk is key to the operational and ﬁnancial success of the group
the group’s risk management framework can be divided into three tiers 
  governance – ensuring that the group’s vision strategy and objectives 
are communicated throughout the organisation and that appropriate 
governance structures and policies and procedures are in place to embed 
those key aims and objectives 
  risk management – ensuring that there are appropriate structures and 
processes in place to identify and evaluate risks and that appropriate controls 
and mitigating actions are developed to address those risks ensuring that 
details of the key risks and the performance in managing those risks are 
reported on a timely basis to the relevant individuals 
  compliance – ensuring that the group’s internal policies and procedures 
and control activities as well as all relevant external laws and regulations 
are adhered to
governance
compliance
enterprise risk
management
organisational structure and key processes
board
risk management function
 overall responsibility for risk management activities 
 maintenance of risk register 
 coordination of risk workshops to update risk register 
 oversight of business risk registers 
 review of effectiveness of mitigating actions 
 coordination with internal audit 
audit committee 19 antofagasta plc annual report and financial statements 2010
strategic review other information financial statements governance financial review operational review
the board has overall responsibility for the group’s system of risk management 
this includes both reviewing the effectiveness of the overall risk management 
system and also monitoring major strategic and operational risks monthly 
highlights are presented to the board which include a variance analysis of 
operational and ﬁnancial performance allowing potential key issues to be 
identiﬁed and corrective measures adopted on a timely basis progress on 
key development projects are closely monitored including a trafﬁc light risk 
assessment of progress against key project milestones the audit committee 
assists the board with its review of the group’s risk management process 
including some detailed aspects of the effectiveness of the internal control 
system further details about the role of the audit committee are given in the 
corporate governance report on page 79
the group’s ethics code sets out our commitment to undertaking business 
in a responsible and transparent manner the code demands honesty integrity 
and responsibility from all employees and contractors and includes guidelines 
to identify and manage potential conﬂicts of interest an ethics committee 
comprising members of senior executive management is responsible for 
implementing developing and updating the ethics code and monitoring 
compliance with the code further details are provided in the sustainability 
report on page 46
there is a central risk management function which has overall responsibility 
for risk management activities across the group the risk management function 
reports to the audit committee at least twice a year with updates on the key 
risks and mitigations and summaries of internal audit reviews which have been 
undertaken speciﬁc matters will be reported by the risk management function to 
the audit committee on an immediate basis if necessary the risk management 
function also reports regularly to the antofagasta minerals ceo
the risk management function maintains the group’s risk register which 
includes the strategic risks that cover the most signiﬁcant threats to the group’s 
performance and strategy the risk register is updated on a continuous basis 
but strategic risk workshops are also held at least once a year in which senior 
management from across the business review the group’s key strategic risks 
and related controls and mitigation activities the general managers of each 
of the operations have overall responsibility for risk management within their 
business there are also risk coordinators within each business who have direct 
responsibility for the risk management processes within that business and for 
the ongoing maintenance of the individual business risk registers there are risk 
workshops for each business held at least annually involving the business’s 
management team and the central risk management function in which the 
business unit’s risks and corresponding mitigation activities are reviewed in 
detail to allow a thorough updating of the business risk register
the mitigation activities in relation to the most signiﬁcant strategic and business 
unit risks are reviewed by the risk management function at least annually 
through direct onsite review for the most signiﬁcant risks 
areas of focus during 2010 and development of key risks
particular areas of focus in risk management during 2010 included
 a detailed review and update of the group’s ethics code 
  reviewing the emergency planning in place for low probability high impact 
natural disasters and
  reviewing the risks relating to earlystage exploration and development 
projects including developing an annual process for assessing the countries 
in which the group wishes to engage in exploration work
particular key risks which are considered to be increasing in signiﬁcance include 
  competition for talent and other key resources particularly given the current 
strength of the mining sector and wider economic recovery and 
  ensuring that the group’s organisational structure and talent pool reﬂects 
the group’s developing requirements as the business increasingly expands 
beyond its original chilean base
speciﬁc areas of compliance focus included an assessment of the impact of 
and compliance with the new chilean antibribery law which was enacted in 
december 2009 and an initial assessment of the implications of the uk bribery 
act 2010 pending the issue of ﬁnal statutory guidance and implementation 
which is expected to occur in 2011
further information
further information about the group’s risk management systems are given in 
the corporate governance report on pages 78 and 79 and in the sustainability 
report on page 47  further detailed disclosure in respect of ﬁnancial risks 
relevant to the group are set out in note 25 to the ﬁnancial statements
principal risks and uncertainties
set out below are the principal risks and uncertainties identiﬁed and the steps 
the group has taken to mitigate each of them strategic review
20 antofagasta plc annual report and financial statements 2010
principal risks and uncertainties
risk mit i gat i on
health safety and the environment
the group operates in an industry that is subject to numerous health 
safety and environmental laws and regulations as well as community 
expectations noncompliance could result in harm to the group’s 
workers the environment and the communities in which the group 
operates disruption to the group’s operations as well as ﬁnes and 
penalties and damage to its reputation 
the group attaches a very high priority to health safety and 
environmental matters the group monitors relevant legislation 
and regulations relating to health safety and the environment 
to ensure the safety of its workforce and continued compliance 
potential environmental impacts are key considerations when 
assessing projects including the integration of innovative technology 
in the project design where it can help to mitigate those effects
the group provides for future site closure and remediation costs 
based on analysis produced by external expert advisors
 further information in respect of 
the group’s activities in respect of health 
safety and the environment is set out in 
the corporate sustainability section on 
pages 49 and 50 and 54 to 57
community relations
failure to adequately manage relations with local communities 
could have a direct impact on the group’s reputation and ability 
to operate at existing operations and the progress and viability 
of development projects
the group aims to contribute to the local development of the 
communities in which it operates in particular through education 
training and employment of the local population the group 
endeavours to ensure clear and transparent communication with 
local communities including through the use of local perception 
surveys local media and community meetings
 details of the group’s community relations 
activities are included in the corporate 
sustainability section on pages 52 to 54
political legal and regulatory risks
the group may be affected by political instability and regulatory 
developments in the countries in which it is operating pursuing 
development projects or conducting exploration activities issues 
with the granting of permits or the withdrawal or variation of permits 
already granted and changes to regulations or taxation could 
adversely affect the group’s operations and development projects
the group assesses political risk as part of its evaluation of potential 
projects including the nature of foreign investment agreements in 
place political legal and regulatory developments affecting the 
group’s operations and projects are monitored closely 
 details of any signiﬁcant political legal 
or regulatory developments impacting the 
group’s operations are included within the 
operational review on pages 24 to 45
employees and contractors
the group’s highly skilled workforce is essential to maintain its 
current operations to implement its development projects and to 
achieve longerterm growth the loss of skilled workers and failure 
to recruit new staff may lead to increased costs or delays 
labour disputes may lead to operational interruptions and higher 
costs and could have a negative impact on the group’s earnings
the group’s performance management system is designed 
to provide reward and remuneration structures and personal 
development opportunities appropriate to attract and retain 
a highly skilled workforce the group has in place a talent 
management system to identify and develop internal candidates 
for critical management positions 
there are longterm labour contracts in place at each of the 
group’s mining operations which help to ensure labour stability
contractors’ employees are an important part of the group’s 
workforce and under chilean law are subject to the same duties 
and responsibilities as the group’s own employees the group’s 
approach is to treat contractors as strategic associates 
 details of the group’s relations with 
its employees and contractors are set out 
within the corporate sustainability section 
on pages 51 and 52 and within the 
operational review on pages 24 to 45
strategic resources 
disruption to the supply of any of the group’s key strategic inputs 
such as electricity water sulphuric acid and mining equipment 
could have a negative impact on production volumes longerterm 
restrictions could impact opportunities for the growth of the group
a portion of the group’s input costs are inﬂuenced by external 
market factors and are not entirely within the control of the group
contingency plans are in place to address potential shortterm 
disruptions to strategic resources such as electricity the group 
enters into medium and longterm supply contracts for a range 
of key inputs to help ensure continuity of supply 
technological solutions such as increased use of sea water in the 
group’s mining processes can help address longterm limitations 
on scarce resources such as fresh water
 information on the group’s arrangements 
for the supply of key inputs are included 
within the marketplace section on pages 
14 and 15 and details of signiﬁcant 
operational or cost factors related to key 
inputs are included within the operational 
review on pages 24 to 57 21 antofagasta plc annual report and financial statements 2010
strategic review other information financial statements governance financial review operational review
risk mit i gat i on
operational risks 
mining operations are subject to a number of circumstances not 
wholly within the group’s control including damage to or breakdown 
of equipment or infrastructure unexpected geological variations or 
technical issues extreme weather conditions and natural disasters 
which could adversely affect production volumes and costs 
the key operational risks relating to each operation are identiﬁed as 
part of the regular risk review process undertaken by the individual 
operations this process also identiﬁes appropriate mitigations for 
each of these speciﬁc operational risks 
monthly board reports present an analysis of operational and 
ﬁnancial performance with an analysis of signiﬁcant variances 
allowing potential key issues to be identiﬁed on a timely basis and 
any necessary monitoring or control activities to be established
the group has appropriate insurance to provide protection from 
some but not all of the costs that may arise from such events
 details of the operational performance 
of each of the group’s operations 
are included within the operational review 
on pages 24 to 45
development projects
a failure to effectively manage the group’s development projects 
could result in delays in the commencement of production and cost 
overruns demand for supplies equipment and skilled personnel 
could affect capital and operating costs increasing regulatory and 
environmental approvals and litigation could result in delays in 
construction or increases in project costs
prior to project approval a detailed feasibility process is followed 
to assess the technical and commercial viability of the project 
detailed progress reports on the ongoing development projects 
are regularly reviewed including assessments of the progress of 
the key project milestones and actual performance against budget
 details of the progress of the group’s 
development projects are included within 
the operational review on pages 38 to 43
growth opportunities
the group needs to identify new mineral resources and development 
opportunities in order to ensure continued future growth the group 
seeks to identify new mineral resources through exploration and 
acquisition there is a risk that exploration activities may not identify 
viable mineral resources the group may fail to identify attractive 
acquisition opportunities or may select inappropriate targets 
the longterm commodity price forecasts used when assessing 
potential projects and other investment opportunities are likely to 
have a signiﬁcant inﬂuence on the forecast return on investment
the group has teams conducting active exploration programmes 
both within chile and elsewhere the group has entered into 
earlystage exploration agreements with third parties in a number 
of countries throughout the world and has also acquired interests 
in companies with known geological potential 
the group assesses a wide range of potential growth opportunities 
both from its internal portfolio and external opportunities to 
maximise its growth proﬁle a rigorous assessment process is 
followed to evaluate all potential business acquisitions 
 a review of the group’s exploration 
activities its exploration agreements and 
other growth opportunities are set out in 
the operational review on pages 38 to 43 
commodity prices 
the group’s results are heavily dependent on commodity prices – 
principally copper and to a lesser extent molybdenum the prices 
of these commodities are strongly inﬂuenced by world economic 
growth and may ﬂuctuate widely and have a corresponding impact 
on the group’s revenues 
the group considers exposure to commodity price ﬂuctuations within 
reasonable boundaries to be an integral part of the group’s business 
and its usual policy is to sell its products at prevailing market prices 
the group monitors the commodity markets closely to determine the 
effect of price ﬂuctuations on earnings and cash ﬂows and uses 
derivative instruments to manage its exposure to commodity price 
ﬂuctuations where appropriate 
 the sensitivity of group earnings to 
movements in commodity prices is set out 
in the financial review on page 65
details of hedging arrangements put in 
place by the group are included within the 
financial review on page 65 and in note 25 
to the ﬁnancial statements
ore reserves and mineral  
resources estimates
the group’s ore reserves and mineral resources estimates are 
subject to a number of assumptions and estimations including 
geological metallurgical and technical factors future commodity 
prices and production costs fluctuations in these variables may 
result in lower grade reserves or resources being deemed 
uneconomic and could lead to a reduction in reserves or resources
the group’s reserves and resources estimates are updated annually 
to reﬂect material extracted during the year the results of drilling 
programmes and updated assumptions the group follows the 
jorc code in reporting its ore reserves and mineral resources 
which requires that the reports are based on work undertaken 
by a competent person 
 the ore reserves and mineral 
resources estimates along with 
supporting explanations are set out 
on pages 134 to 140 operational review
operational
review
22 antofagasta plc annual report and financial statements 2010 strategic review other information financial statements governance financial review operational review
23 antofagasta plc annual report and financial statements 2010
mining
securing and 
strengthening  
the core business
 page 26
organic and 
sustainable growth 
of the core business
 page 40
growth beyond 
the core business
 page 42
transport
 page 44
water
 page 45
corporate 
sustainability
 page 46 operational review
24 antofagasta plc annual report and financial statements 2010
operational review
mining  p26
during 2010 the group’s operations produced 521100 
tonnes of copper in concentrate containing a small 
amount of silver and gold and copper cathode as well 
as 8800 tonnes of molybdenum in concentrate
transport  p44
the antofagasta railway company plc is the main cargo 
transport system in chile’s antofagasta region with a 
network of over 900 kilometres in chile and a controlling 
interest in the ferrocarril andino network in bolivia 
water  p45
aguas de antofagasta sa holds the concession 
for water distribution in chile’s antofagasta region 
it produces and distributes potable water to domestic 
customers and untreated water to industrial customers
corporate sustainability  p46
the board continues to place importance on a range of 
considerations including health and safety management 
of human resources environment and community relations 
sustainable development forms an integral part of the 
group’s decision making strategic review other information financial statements governance financial review operational review
25 antofagasta plc annual report and financial statements 2010
antucoya
michilla
el tesoro
los pelambres
esperanza
tocopilla
antofagasta
copiapo
ovalle
chanaral

la serena
combarbala
illapel
los vilos
calama
cochabamba
rio mulato
tupiza
baquedano
viacha
la paz
oruro
augusta 
victoria
socompa
taltal
amincha
ujina
mejillones
prat
laquiaca
ollague
uyuni
atocha
villazon
potosi
sucre
a guaqui
bolivia
argentina
peru
chile
national highway
amsa’s operations projects  
and principal exploration prospects
towns and cities
other mines and projects
plants
other railways
80–90 pound rail
65–75 pound rail
50–60 pound rail
adasa facilities
distribution line for untreated water
distribution line for potable water
el tesoro – espera
tocopilla
antofagasta
taltal
antucoya
el tesoro 
esperanza
sierra gorda 
district
mejillones
chuquicamata
spence
water
catchment
lequena
water 
catchment
quinchamale
water
catchment
toconce
mixer tank
water catchment
puente negro  
filter plant 
cerro topater
blancos
sqm
mantos
salar del 
carmen
filter plant
michilla
desalination plant
desalination plant
agua verde wells
filter plant taltal
 
chile operational review
26 antofagasta plc annual report and financial statements 2010
los pelambres is a sulphide deposit located in chile’s coquimbo region 
240 km northeast of santiago it produces copper concentrate containing 
gold and silver and molybdenum concentrate through a milling and 
ﬂotation process 
the plant expansion initiated in mid2008 was successfully completed on 
schedule and on budget during the ﬁrst quarter of 2010 the additional plant 
infrastructure including a third sag mill and a sixth ball mill has increased 
throughput capacity to a 175000 tonnes per day level being the maximum 
annual average allowed under current environmental permits this results 
in an approximate 30 increase in plant capacity which on average will 
increase annual production in a full year by around 90000 tonnes of 
copper compared with 2009 levels 
in 2010 los pelambres produced 384600 tonnes of payable copper 
234 above 2009 production of 311600 tonnes with the increase due to the 
higher throughput as a result of the plant expansion ore throughput averaged 
159400 tonnes per day during the year 2009 – 129200 tonnes per day 
in the ﬁrst quarter of 2010 while the plant expansion was being commissioned 
throughput averaged 137 900 tonnes per day following the completion of the 
commissioning throughput increased to an average of 172100 tonnes per day 
during q2 and q3 in the ﬁnal quarter of the year throughput temporarily reduced 
to an average of 155400 tonnes per day mainly due to major maintenance work 
performed in december 2010 
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wwwantofagastacouk
los pelambres
los pelambres completed its plant 
expansion during q1 2010 increasing 
throughput by approximately 30 
from the previous 130000 tonnes 
per day level up to a 175000 tonnes 
per day level 
2010
384600 8800 793
payable copper tonnes payable molybdenum 
tonnes
cash costs 
us cents per pound 
1244 excluding  
byproducts
mining
60 owned strategic review other information financial statements governance financial review operational review
27 antofagasta plc annual report and financial statements 2010
this maintenance work which had originally been scheduled for 2011 included 
the partial replacement of the conveyor belt that transports the ore from the mine 
site to the plant the average ore grade during 2010 was marginally higher than 
the prior year at 076 copper 2009 – 074 although this was partly offset 
by slightly lower metallurgical recovery of 900 2009 – 921 
molybdenum production was 8800 tonnes a 128 increase on 2009 
the increase reﬂected the increased plant throughput following the expansion 
partly offset by a slight decrease in the molybdenum grade to 0019 2009 
– 0020 gold production was 35100 ounces 2009 – 23500 ounces
labour negotiations were satisfactorily concluded at los pelambres during 
november 2010 with the main union which covers more than 70 of the mine’s 
employees for a new 46month labour agreement this was concluded in 
advance of the expiry of the existing agreement which ran until february 2011
revenue at los pelambres in 2010 was us33483 million 609 ahead of 
the us20815 million in 2009 the increase reﬂected the increase in copper 
and molybdenum volumes as a result of the plant expansion and increases in 
both copper and molybdenum market prices
realised copper prices at los pelambres were 3717 cents per pound 296 
higher than the 2009 realised price of 2868 cents this largely reﬂected the 
increase in the average lme price which was 3420 cents per pound in 2010 
compared with 2342 cents on average during 2009 the realised copper 
prices during both 2010 and 2009 exceeded the average lme price due 
to signiﬁcant provisional pricing adjustments in both years with positive 
adjustments of us2801 million in 2010 and us3803 million in 2009 
realised molybdenum prices were us162 per pound 2009 – us113 per 
pound which was broadly in line with the average market price of us157 per 
pound 2009 – us111 per pound further details of pricing adjustments for 
both copper and molybdenum are given in the financial review on pages 60 
and 61 and in note 25d to the ﬁnancial statements 
cash costs for 2010 which are stated net of byproduct credits and include 
tolling charges were 793 cents per pound marginally below the 804 cents 
for 2009 this reﬂected an increase in onsite and shipping costs offset by 
improved byproduct credits due to the higher molybdenum market prices and 
production volumes onsite and shipping costs increased from 953 cents per 
pound in 2009 to 1068 cents reﬂecting higher energy prices increased labour 
and maintenance and fuel costs as well as the impact of the stronger chilean 
peso labour costs increased largely as a result of a oneoff signing bonus 
following the early conclusion of the labour agreement in november 2010 
the increased maintenance included the major work performed in december 
2010 described above tolling charges decreased slightly to 17 6 cents per 
pound 2009 – 192 cents resulting in total cash costs before byproduct 
credits of 1244 cents per pound 2009 – 1145 cents 
the increased molybdenum price and improved production volumes resulted 
in an increased byproduct credit of 451 cents per pound 2009 – 341 cents 
the individual components of los pelambres’ cash costs are set out on page 141 
los pelambres achieved an operating proﬁt of us22159 million a 730 
increase compared with the 2009 proﬁt of us12807 million this reﬂected 
the increased production volumes and realised commodity prices partly offset 
by the higher onsite and shipping cash costs as well as a us310 million 
increase in depreciation as the plant expansion is now operational and a oneoff 
us652 million charge relating to an increase in the provision for future mine 
closure costs the closure provision was increased following an updated 
assessment during 2010 by external consultants with the provision increasing 
due to factors including increases in the scale of the operation updated cost 
assumptions and an acceleration of the timing of certain closure activities 
relating to the quillayes tailings dam
total capital expenditure during 2010 was us2159 million of which 
us1343 million related to the ﬁnal expenditure on the completion of the plant 
expansion during the ﬁrst quarter of the year total expenditure on the plant 
expansion was in line with budget at just below us1 billion 
labour negotiations were concluded during 
november 2010 with the main union for a 
new 46month labour agreement operational review
28 antofagasta plc annual report and financial statements 2010
mining continued
as previously announced the initial forecast for 2011 production is for 
approximately 419000 tonnes of payable copper a 9 increase compared 
with 2010 this is based on an average plant throughput of 175000 tonnes per 
day given a full year of operation of the plant at the expanded capacity and an 
expected average ore grade of 076 the initial forecast for 2011 molybdenum 
production is for approximately 9300 tonnes again based on the impact of the 
increased plant throughout and a relatively stable molybdenum grade of 
approximately 0019 the initial gold production forecast is approximately 
38000 ounces copper production during the ﬁrst two months of 2011 is 
slightly behind budgeted levels and the ability to fully achieve the forecast will 
depend on ore grades and plant performance for the remainder of the year 
as normal los pelambres will continue to review actual production levels and 
the fullyear forecast as the year progresses
onsite and shipping costs for 2011 are forecast to be approximately 107 cents 
per pound similar to the 1068 cents achieved in 2010 inﬂationary pressures 
and other general cost increases of approximately 10 cents are expected to be 
fully offset by a number of speciﬁc factors including unit cost decreases resulting 
from the higher production levels lower labour costs in 2011 following the 
recognition of the oneoff labour agreement signing bonus in november 2010 
and reduced energy prices as los pelambres enters into a twoyear period under 
its existing energy supply agreement with a lower pricing level tolling charges 
are also expected to remain largely stable at approximately 17 cents compared 
with 17 6 cents in 2010 while the benchmark terms for 2011 have increased 
slightly from the 2010 level the impact of this is mitigated by the effect of the 
“brick system” in many contracts whereby the benchmark is often averaged over 
two years some of los pelambres’ agreements have also been settled with a 
slightly lower treatment charge compared with the 2011 benchmark reﬂecting 
the relatively high copper content of its concentrate cash costs before 
byproduct credits are expected therefore to remain largely steady at 
approximately 124 cents per pound compared with 1244 cents per pound 
in 2010 based on a molybdenum price of approximately us18 per pound 
byproduct credits are expected to be around 45 cents per pound compared 
with 451 cents in 2010 which would give net cash costs of approximately 
79 cents in 2011 compared with 793 cents in 2010 
los pelambres is continuing to review opportunities for further expansion 
the processing capacity of the plant is currently limited by the existing 
environmental permits to an annual average of 175000 tonnes per day 
it is possible that the engineering capacity of the plant could support operation 
at a higher level than this current limit and los pelambres is evaluating whether 
it is feasible to seek to raise this limit as explained below in the los pelambres 
district section los pelambres is also continuing to review options for the 
longerterm development of the mine strategic review other information financial statements governance financial review operational review
29 antofagasta plc annual report and financial statements 2010
el tesoro is a deposit located in chile’s antofagasta region 1350 km north of 
santiago which produces copper cathodes using a solventextraction electro
winning process it currently comprises two open pits – central and northeast 
– which along with oxide ore from esperanza feed a heapleach operation and 
a runofmine  “rom” leaching operation the new mirador open pit is currently 
undergoing prestripping
revenue at el tesoro was us7397 million in 2010 a 517 increase on the 
2009 revenues of us487 6 million reﬂecting an increased realised copper price 
and improved volumes
copper cathode production was 95300 tonnes in 2010 a 57 increase 
compared with the 90200 tonnes produced in 2009 partly reﬂecting the impact of 
the inclusion of a whole year of production from the rom which contributed 19200 
tonnes of cathode production in 2010 operations at the tesoro northeast open pit 
were temporarily suspended in august 2010 to allow geotechnical studies to be 
undertaken to ensure the safety of certain walls of that pit during this suspension 
of operations the tesoro plant processed ore from lower grade stockpiles in place 
of material from the northeast pit after the completion of geotechnical studies 
mining resumed in some areas of the tesoro northeast pit in november 2010 
the plant throughput relating to the heapleach operation averaged 26400 
tonnes per day during 2010 largely in line with the 2009 throughput of 26200 
tonnes per day the average ore grade decreased to 110 in 2010 compared 
with 125 in 2009 reﬂecting the processing of material from the lower grade 
stockpiles in place of the ore from the northeast pit during the temporary 
suspension of that operation
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el t esoro
prestripping of the mirador deposit 
commenced in december 2010 with 
production from this satellite deposit 
expected to commence in the ﬁnal 
quarter of 201 1  this is expected to 
result in reduced costs at el t esoro 
while the deposit is mined in the  
threeyear period to 201 4 as well as 
extending el t esoro’s mine life to 2022
2010
95300 1692
copper cathode tonnes cash costs us cents per pound
70 owned operational review
30 antofagasta plc annual report and financial statements 2010
the average metallurgical recovery was also slightly lower at 717 2009 – 
730 due to the impact of lower grade feed to the plant production from the 
rom processing of the esperanza oxide cap was 19200 tonnes during 2010 
the rom project entered into production during the second half of 2009 with 
production of 2800 tonnes in that year and reached full design capacity during 
the ﬁrst half of 2010 
realised copper prices at el tesoro increased by 429 to 3519 cents 
per pound compared with 2463 cents per pound in 2009 this increase 
reﬂected the rise in the average lme copper price which increased from 
an average of 2342 cents per pound in 2009 to 3420 cents in 2010 
the increasing market prices during the course of 2010 resulted in positive 
provisional pricing adjustments of us17 4 million during the year el tesoro 
had minimal commodity hedging instruments in place during 2010 resulting in 
realised gains of just us01 million during the year compared with realised 
losses of us200 million in 2009 further details of the effects of commodity 
hedging instruments in place are given in the financial review under “derivative 
ﬁnancial instruments” and in note 25e to the ﬁnancial statements 
cash costs were 1692 cents per pound in 2010 compared with 1234 cents in 
2009 cash costs during the ﬁrst half of 2010 averaged 1466 cents per pound 
but increased to 1915 cents in the second half of the year with the increase 
mainly due to the impact of the processing of lower grade stockpiles following 
the temporary suspension of operations in the tesoro northeast pit in addition 
higher maintenance costs the effect of the stronger chilean peso and higher 
fuel and energy prices also contributed to the increase in costs partly offset 
by lower sulphuric acid prices 2009 also beneﬁted from temporary cost 
deferral measures
operating proﬁt at el tesoro was us3866 million compared with 
us177 9 million in 2009 the current year results include a credit of 
us1094 million from the reversal of the impairment originally recognised 
at el tesoro in 2008 following a review undertaken in light of the current 
commodity environment this amount has been recorded as an exceptional 
credit within operating expenses excluding this oneoff credit operating proﬁt 
was us277 2 million 558 ahead of 2009 this increase in underlying 
operating proﬁt was due to the higher revenue as a result of the increased 
realised copper price and improved volumes partly offset by the increase in 
cash costs and higher depreciation depreciation in 2010 was us751 million 
compared with us523 million in 2009 with the increase mainly reﬂecting 
increased depreciation relating to the tesoro northeast pit 
capital expenditure in the year was us27 7 million including us29 million 
relating to the ﬁrst prestripping costs at the mirador deposit capital expenditure 
is expected to increase during 2011 mainly due to remaining capital expenditure 
on the mirador deposit see page 31 of approximately us42 million and 
us14 million relating to the construction of a solar thermal plant to provide 
heat for the sxew plant in addition to normal sustaining capital expenditure 
for 2011 the initial forecast for cathode production is approximately 
96000 tonnes production from the heapleach operation is expected 
to be approximately 75000 tonnes with the rom operation producing 
approximately 21000 tonnes for the heapleach operation it is expected that 
tesoro northeast pit will contribute approximately 21000 tonnes in 2011 
following the resumption of operations there in november 2010 and that the 
mirador deposit will produce approximately 14000 tonnes in the ﬁnal months of 
the year the balance of production is expected to come predominantly from the 
tesoro central pit with a small amount of highergrade oxide ore from esperanza 
also being processed through the heapleach ore grades for the heapleach 
operation are expected to decrease slightly to 106  on average over the 
course of 2011 2010 – 110 although grades in the ﬁnal quarter of 2011 
are expected to increase as the higher grade production from the mirador 
pit commences 
the initial forecast for cash costs at el tesoro for 2011 is approximately 161 
cents per pound compared with the annual average of 1692 cents during 2010 
the costs during the second half of 2010 were unusually high given the need 
to process the lower grade ore stockpiles in place of the planned ore from the 
tesoro northeast pit and the resumption of normal operations will result in 
a decrease in costs in 2011 along with an expected reduction in the level of 
planned maintenance activity compared with 2010 although these factors 
will be partly offset by higher sulphuric acid prices while costs are expected 
to average 161 cents over the course of 2011 as a whole costs are likely to 
be higher than this average level during the ﬁrst months of the year as normal 
operations rampup again at tesoro northeast and conversely costs are likely 
to be lower than this average in the ﬁnal months of 2011 as the highergrade 
mirador ore begins to be processed 
el tesoro is continuing to work to identify further oxide deposits in the district 
surrounding the mine as explained above the mirador deposit will allow the 
el tesoro plant to run at close to capacity for the threeyear period from 
2012 to 2014 with production of around 98000 tonnes per year in that period 
thereafter production is currently forecast to reduce as lower grade material is 
processed once again from the tesoro central and northeast pits as detailed 
in the sierra gorda district section below el tesoro is conducting exploration 
and evaluation work to identify additional resource which could help to maintain 
production at closer to capacity levels
mining continued strategic review other information financial statements governance financial review operational review
31 antofagasta plc annual report and financial statements 2010
case study
mirador at
el tesoro
during 2010 el tesoro approved the inclusion 
of additional material into its mine plan from the 
mirador oxide deposit the deposit which is located 
approximately six kilometres east of tesoro north
east contains reserves of 251 million tonnes of 
oxide ore at an average grade of 122 compared 
with the average reserve grade of the tesoro central 
and northeast pits of 074 
mirador which also has sulphide potential was identiﬁed by the group in 
2008 through its ongoing exploration programme during 2010 el tesoro 
which is 70 owned by the group paid us350 million to the whollyowned 
antofagasta minerals sa for the right to extract the oxide ores from the 
mirador deposit this intragroup transaction which is eliminated in the 
consolidated group results was based on an independent valuation based 
on the estimated incremental net present value to el tesoro of incorporating 
the oxide ores from mirador into its mine plan during the year el tesoro 
put in place borrowing facilities of us300 million to provide ﬁnancing for 
this payment
prestripping of the mirador deposit commenced in december 2010 there is 
a limited amount of overburden above the deposit and so only a comparatively 
low level of prestripping is required which is expected to be completed during 
the ﬁrst nine months of 2011 with a total capital expenditure of approximately 
us42 million production from mirador is expected to commence in the ﬁnal 
quarter of 2011 with approximately 14000 tonnes expected to be contributed 
to el tesoro’s production in 2011 during the following three years from 2012 
to 2014 el tesoro’s production is expected to come primarily from the mirador 
pit the relatively higher grade ore which will therefore be mined during this 
period should allow the el tesoro plant to operate close to full capacity with 
production of around 98000 tonnes per year during this period the higher 
grade material is also expected to result in decreased costs during this 
threeyear period the incorporation of the mirador reserves into the el tesoro 
mine plan has resulted in an increase of the mine life from 2019 to 2022  
 the mirador deposit will allow the el tesoro 
plant to run at close to capacity for the 
threeyear period from 2012 to 2014 and is 
also expected to result in decreased costs operational review
32 antofagasta plc annual report and financial statements 2010
michilla is a leachable sulphide and oxide deposit located in chile’s antofagasta 
region 1500 km north of santiago it produces copper cathodes using a 
heapleach and solventextraction electrowinning process the ore which 
is processed by the michilla plant comes from a variety of sources – from 
underground and open pit mines which are operated by michilla itself from other 
underground operations which are owned by michilla and leased to thirdparty 
operators and also material which is purchased from enami the chilean state 
organisation which represents small and mediumsized mining companies 
the price paid for material purchased from the thirdparty operators or from 
enami is in some cases linked to the market copper price 
revenue at michilla in 2010 was us2420 million a 419 increase compared 
with 2009 revenue of us1705 million as a result of a higher realised copper 
price and a slight increase in volumes
total annual production in 2010 was 41200 tonnes of copper cathodes an 
increase on the prior year production of 40600 tonnes the increase reﬂected 
higher average ore grades which offset a reduction in the plant throughput 
average ore grades were 103 compared with average grades of 096 
in 2009 average plant throughput decreased slightly to 14100 tonnes per 
day compared with 15100 tonnes per day in the prior year
in december 2010 negotiations with the main labour union representing 90 
of michilla’s workforce were satisfactorily concluded early for a new 48month 
labour agreement commencing in january 2011
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michilla
2010
41200 1838
copper cathode tonnes cash costs us cents per pound
mining continued
michilla is continuing with work on  
the evaluation and recategorisation 
of its resources to allow the extension 
of its current mine plan as well as 
additional exploration which could 
further extend the mine life michilla 
has also agreed a fouryear labour 
agreement with its main labour union 
which runs until january 2015
742 owned strategic review other information financial statements governance financial review operational review
33 antofagasta plc annual report and financial statements 2010
the initial forecast for cash costs in 2011 is approximately 198 cents per pound 
the increase compared with the 2010 costs of 1838 cents is mainly due to 
the higher expected cost of purchasing ore from the third parties who lease 
and operate certain of michilla’s underground mines costs relating to the 
commencement of operations at the new aurora open pit and higher sulphuric 
acid costs the forecast does not include potential purchases of ore from 
enami the cost of which is often linked to the market price of copper 
if such material continues to be purchased this could particularly in a strong 
copper price environment further increase 2011 cash costs through processing 
higher cost but proﬁtable materials
michilla’s mine plan currently runs until the end of 2012 michilla is continuing 
with work to extend the mine plan beyond this point including further drilling 
to allow the recategorisation of existing ore resources into reserves and 
engineering studies to incorporate these reserves into an extended mine plan 
it is likely that the mine plan will initially be extended to approximately 2014 
or 2015 in addition exploration work continues to be undertaken at michilla 
which could identify further resources which could further extend the mine life 
potentially to 2018
the average realised copper price in 2010 was 2638 cents per pound 
348 higher than the 2009 realised price of 1957 cents this reﬂected the 
increase in average lme market prices over this period with the average lme 
price in 2010 of 3420 cents per pound being 460 higher than the 2009 
market average of 2342 cents the realised copper price was lower than the 
average lme price in both 2010 and 2009 mainly due to realised losses on 
copper hedging instruments during 2010 realised losses of us815 million 
were recognised in respect of instruments maturing during the year 2009 – loss 
of us458 million as a high cost operation michilla has over recent years often 
hedged a signiﬁcant proportion of its production in order to ensure a reasonable 
level of return even if market prices were to weaken considerably in the year 
ended 31 december 2010 32000 tonnes of total production were hedged 
which represented slightly under 80 of the total production of 41200 tonnes 
michilla has in place hedging instruments in respect of 2011 and 2012 
production again covering approximately 80 of expected production 
further details of the effects of commodity hedging instruments in place are 
given in the financial review under “derivative ﬁnancial instruments” and in 
note 25e to the ﬁnancial statements 
cash costs averaged 1838 cents per pound during 2010 compared with 
157 6 cents in 2009 the increase reﬂected the impact of the stronger 
chilean peso as well as the higher cost of ore purchased from enami the 
cost of which is often linked to the market price of copper partly offset by 
lower sulphuric acid prices
operating proﬁt at michilla was us504 million compared with us217 million 
in 2009 the improved result reﬂected the increase in the realised copper price 
partly offset by the higher cash costs and increased depreciation 
the initial forecast for cathode production in 2011 is approximately 40000 
tonnes the majority of this production is expected to continue to come from 
the lince open pit and the estefania underground mine but additional sources 
of material will become increasingly signiﬁcant to michilla prestripping of the 
aurora deposit commenced during the ﬁrst quarter of 2011 with production 
from the aurora pit continuing to rampup during the year approximately 
2500 tonnes of copper are expected to be produced from aurora in 2011 
but this is expected to increase to between 6000 to 8000 tonnes from 2012 
there is also a substantial amount of lowgrade spent ore deposited in spent 
ore pads at michilla this is material removed from the dynamic heapleach 
pads after the primary leach cycle is complete preliminary testing has indicated 
that this material is capable of being releached on the dynamic leach pads 
while this material is only likely to contribute approximately 1000 tonnes of 
copper production in 2011 this could become an increasingly important 
source of material for processing through the michilla plant 
 it is likely that the mine plan will initially be 
extended to approximately 2014 or 2015 
and continuing exploration work could 
identify further resources which could further 
extend the mine life potentially to 2018 operational review
34 antofagasta plc annual report and financial statements 2010
over its ﬁrst 10 years of operations esperanza is expected to produce on average 
approximately 190000 tonnes of payable copper in concentrate and 230000 
ounces of payable gold annually signiﬁcantly increasing total group production 
by approximately 25 the operation utilises innovative technology to minimise 
its environmental impact and to optimise efﬁciency 
esperanza is a coppergold sulphide deposit located in chile’s antofagasta 
region approximately ﬁve kilometres south of the group’s el tesoro mine 
it produces copper concentrate containing gold and silver byproduct credits 
through a conventional milling and ﬂotation process with plant capacity 
of approximately 97 000 tonnes per day of ore throughput the esperanza 
deposit includes an oxide resource that is part of the overburden removed 
through prestripping and which as explained in the el tesoro section below 
is processed by el tesoro through both their main heapleach operation and 
also a speciﬁc runofmine  “rom” leaching operation 
construction was substantially completed by the ﬁnal quarter of 2010 
commissioning of the plant commenced in late november 2010 and the 
ﬁrst shipment of copper concentrate took place on 27 january 2011 from the 
port of antofagasta the major earthquake which occurred in chile in february 
2010 had a number of indirect impacts on the esperanza construction during the 
following months impacting both the construction workforce and also a number 
of key supplies partly as a consequence of this commissioning of the plant was 
marginally delayed compared with earlier forecasts which had envisaged the 
process commencing earlier in q4 2010 rampup of the plant will continue 
through the ﬁrst half of 2011 initially with one of the two ball mills in operation 
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esperanza
esperanza made its ﬁrst shipment of 
copper concentrate in january 2011 
following the start of commissioning 
of the plant in november 2010 
forecast average annual production levels
over ﬁrst 10 years of operation
190000 230000
payable copper tonnes payable gold ounces
mining continued
70 owned strategic review other information financial statements governance financial review operational review
35 antofagasta plc annual report and financial statements 2010
the dedicated esperanza port facility is expected to be completed during the 
second quarter of 2011 
as previously announced the initial forecast for 2011 production is for 
approximately 159000 tonnes of payable copper reﬂecting an average ore 
grade of 059 and 286000 ounces of gold based on an average grade 
of 037 grammes per tonne the forecast is based on the assumption that full 
design capacity is reached at the start of the second quarter and ﬁnal production 
levels for the full year will depend on the precise timing of the completion of the 
rampup the current expectation is that processing at the full design capacity 
of 97 000 tonnes per day should be achieved during the second quarter of 2011
also as previously announced the current forecast is for cash costs before 
byproduct credits to average approximately 146 cents per pound over the 
course of 2011 this average cost level reﬂects the high costs expected during 
the rampup process when higher than normal costs are expected to be 
incurred unit cost ﬁgures stated on the basis of cents per pound of payable 
copper production will also depend on the actual copper and gold production 
volumes the current forecast is for cash costs after byproduct credits to 
average approximately 41 cents per pound during 2011 based on a gold price of 
approximately us1150 per ounce with this estimated level of byproduct credit 
reﬂecting the current forecast gold production volumes for 2011 detailed above
costs are expected to fall to a more typical level following the completion of the 
rampup process the average cash costs before byproduct credits over the 
ﬁrst 10 years of production are currently estimated at approximately 136 cents 
per pound cash costs after byproduct credits are expected to average 41 cents 
per pound during 2011 based on a gold price of approximately us1150 per 
ounce with this level of byproduct credit partly reﬂecting the particularly high 
gold production expected in 2011 the gold byproduct is expected to reduce 
cash costs on average during the ﬁrst 10 years of production by just over ﬁve 
cents per pound for every us100 in the gold price
capital expenditure during 2010 was us10586 million taking cumulative 
expenditure at 31 december 2010 to us2276 million including some 
ﬁnal costs expected in the early part of 2011 the total capital cost of the 
development is expected to be us26 billion including ﬁnancing costs 
in addition to the ﬁnal construction expenditure to be incurred in 2011 sustaining 
capital expenditure in 2011 is expected to be in the region of us40 million
esperanza currently has in place a twoyear labour agreement which runs until 
may 2011 and during the early part of 2011 will be working to put in place a 
new agreement which is likely to be of between three to four years’ duration
copper production is expected to increase from 2012 with a full year of operation 
at the maximum plant capacity and on average over the ﬁrst 10 years of the 
mine’s life esperanza is expected to produce approximately 190000 tonnes 
of payable copper annually the gold grade expected for 2011 is relatively high 
compared to the longerterm average and while grades are expected to remain 
at higher levels for the ﬁrst two to three years of operation the average payable 
gold production over the ﬁrst 10 years is expected to be approximately 230000 
ounces annually
the mine is currently evaluating the potential to commence production of 
molybdenum from 2013 which would necessitate the construction of a 
separate molybdenum plant this represents an acceleration on earlier plans 
which envisaged potential production of molybdenum from 2015 as further 
drilling and analysis along with the stronger molybdenum price have indicated 
that the mine should reach economic levels of molybdenum two years earlier 
than previously expected 
the group is continuing to review its signiﬁcant opportunities for longerterm 
growth both from esperanza’s own resource base and also other group 
deposits situated within the surrounding district the esperanza resources have 
increased signiﬁcantly during 2010 to 19226 million tonnes with an average 
copper grade of 039 2009 – 12044 million tonnes with an average 
copper grade of 045 following the updating of the resource block model to 
incorporate additional inﬁll drilling results there is also signiﬁcant potential from 
the telégrafo deposit which is part of esperanza’s existing property the sierra 
gorda district section below provides more detail on the size and quality of this 
and other resources in the district as well as the range of growth options which 
they bring to the group’s operations in the district
the operation utilises innovative technology 
to minimise its environmental impact and to 
optimise efﬁciency operational review
36 antofagasta plc annual report and financial statements 2010
mining continued
case studies
commitment to training and employment for local communities
esperanza has been committed from the outset of its development to providing 
training and employment opportunities for local communities 
almost 1400 local people received training supported by esperanza as part 
of this commitment this included nearly 500 people who participated in 
foundation courses for mine operators and mine and plant maintenance 
more than 270 apprenticeships were created by esperanza of which 
approximately 90 were ﬁlled by local people
in total approximately 60 of the mine’s total workforce is drawn from local 
communities the mine has also focused on developing the employment of 
female workers with women comprising 14 of the mine’s workforce which 
is high by local industry standards esperanza’s achievement in this area was 
recognised by a special presidential award for the development of good labour 
practices in respect of gender equality  
esperanza has been committed to developing the 
skills and work opportunities of its local communities 
and makes full use of technology to maximise its 
environmental and operational efﬁciency
training and 
innovation at  
esperanza  strategic review other information financial statements governance financial review operational review
37 antofagasta plc annual report and financial statements 2010
esperanza has been committed from the 
outset of its development to providing 
training and employment opportunities 
for local communities
automation of the mining process
water
the operation’s complete process from the mine site through the plant to the 
dedicated port facility can be monitored and controlled from one control room 
the primary crusher is fully automated controlled entirely from the central 
control room similarly it is possible to operate the loading at the dedicated 
port facility remotely from the control room at the mine site during the testing 
phase a parallel control room in santiago was available to control and monitor 
the operations remotely this automated process allows both more efﬁcient 
management and control of the operation as well as allowing detailed analysis 
of the efﬁciency of all key processes facilitating continual improvement in the 
efﬁciency of the operation  
esperanza is situated in the atacama desert one of the driest areas in the 
world and water availability is one of the key constraints for the mining industry 
in the region esperanza was designed to use two innovative technologies to 
address this issue – the use of sea water and the use of thickened tailings
esperanza will not consume any fresh water all of its water requirements will 
be met through sea water piped 145 kilometres from the coast to an altitude 
of 2250 metres a small element of the mine’s water will be desalinated at two 
desalination units located by the mine’s dedicated port facility and at the mine 
site to provide the desalinated water required to wash the ﬁnal concentrate 
and also to provide potable water for the mine’s workforce however 90 of 
the mine’s water usage will comprise nondesalinated sea water the relevant 
mine infrastructure such as the pipelines and plant equipment has been 
specially engineered from the outset to be optimised for use with sea water 
this is the largest copper project in the world to be designed for exclusive use 
of sea water 
esperanza will achieve efﬁcient waste management through a highdensity 
thickened tailings deposit this will be a global ﬁrst for a largescale copper 
project the main beneﬁt is that it will recover more water than a comparable 
conventional tailings system once deposited the thickened tailings are more 
stable because they contain less water and the desert conditions also allow 
them to solidify more quickly the saline quality of the water in the tailings 
facilitates the formation of a stable crust that substantially reduces dust 
further reducing the environmental impact 
in recognition of this esperanza was awarded both the avonni prize as one of 
the most innovative mining companies in chile and also received the benjamín 
teplizky prize in chile again for its innovative technology   operational review
38 antofagasta plc annual report and financial statements 2010
the group has a portfolio of growth projects which could provide signiﬁcant 
potential for future growth over the forthcoming years given the earlystage 
nature of these projects their potential and timing is inherently uncertain and 
so the following information is only intended to provide a highlevel indication of 
potential opportunities the antucoya project is currently at feasibility stage and 
given successful completion of that study and project approval could potentially 
commence construction in late 2011 or 2012 which could result in ﬁrst 
production by early 2014 in the sierra gorda district a prefeasibility study is 
under way in respect of the telégrafo and caracoles deposits given the depth 
to see this report online go to
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growth opportunities
mining continued
current evaluation studies
chart to be 
redrawn
the group is focused on developing 
its earlystage growth opportunities 
both around its existing mining 
districts in chile and also 
beyond those areas in chile 
and internationally the group’s 
primary focus is on earlystage 
opportunities with the potential 
for largescale development
of the caracoles deposit there is a signiﬁcant level of prestripping which 
would be required which could potentially take three to four years to complete 
but incremental production from these deposits could be possible from 
approximately 2016 at los pelambres a scoping study is under way to look 
at the longerterm possibilities for utilising its large resource base which could 
potentially lead to a signiﬁcant increase in the scale of the operation later this 
decade the nokomis deposit is very promising although this deposit located 
in the united states will require several years to undergo feasibility work and 
then environmental permitting before construction for a project could begin
scoping study prefeasibility study  feasibility study
permitting  ﬁnancing feasibility study
this chart provides indicative timelines for the groups portfolio of evaluation studies should these be eventually developed as projects the studies are earlystage and therefore remain uncertain
both as to the likelihood of approval and timing of any future potential projects
construction
antucoya
reko diq
sierra gorda district
los pelambres expansion
nokomis
2011 2012 2013 2014 2015 2016 2017 strategic review other information financial statements governance financial review operational review
39 antofagasta plc annual report and financial statements 2010
the group continues to invest strongly in its earlystage exploration activities 
the total exploration and evaluation expenditure in 2010 was us990 million 
which reﬂects a more than fourfold increase over the past ﬁve years
exploration and evaluation expenditure
the group’s commitment to organic exploration has been rewarded over recent 
years through the major increase in the resource base the total resource 
tonnage of the group’s subsidiaries has increased more than fourfold over the 
past ﬁve years from 32 billion tonnes in 2006 to 134 billion tonnes in 2010 
during 2010 the total resource tonnage of the group’s subsidiaries increased 
by 46 from 92 billion tonnes in 2009 to 134 billion tonnes following the 
provingup of the resources relating to the telégrafo and caracoles deposits 
mineral resources including ore reserves
of the 2010 expenditure more than 40 related to the sierra gorda district 
which is the group’s primary area of focus for exploration in chile
2010 exploration and evaluation expenditure
as well as these amounts relating to the group’s subsidiaries the reko diq joint 
venture has total resource tonnage of 59 billion tonnes although as described 
below the exploitation of these resources is dependent upon the granting of a 
mining lease – for which an application has been made – and the successful 
conclusion of litigation further details are set out in the ore reserves and 
mineral resources estimates on pages 134 to 140 
2010 mineral resources including ore reserves of subsidiaries
exploration and evaluation
reserves and resources
billions of tonnes
21 
18
15
9
6
3
2006
32
2007
44
2008
64
2009
92
2010
134
–
subsidiaries
41 41 59 59
0
12
joint ventures
a  los pelambres  5818 mt  053 cu
b  telégrafo  2728 mt  035 cu
c  esperanza sulphides  1923 mt  039 cu
d  caracoles  1129 mt  045 cu
e  antucoya  1509 mt  027 cu
f  el tesoro  276 mt  059 cu
g  michilla  56 mt  178 cu 
subsidiaries total    134 bn tonnes  044 cu
a
b
c
d
e
f
g
us million
60
70
80
90
100
50
30
20
10
2006
215
2007
381
2008
549
2009
671
2010
990
0
40
a  telégrafo 146
b  caracoles 165
c  mirador 21
d  other chile 269
e  reko diq 161
f  nokomis 109
g  other rest of the world 119 
total    990
b
d
c
e
f
g
a operational review
40 antofagasta plc annual report and financial statements 2010
in may 2010 antofagasta minerals approved further expenditure of approximately 
us70 million on growth options in the sierra gorda district for the period to the 
end of 2011 covering further exploration the preparation of a prefeasibility 
study for the district and for inﬁll drilling geotechnical and metallurgical studies 
to support eventual feasibility studies at telégrafo and caracoles during the 
second half of 2010 work has commenced on the prefeasibility studies for these 
two deposits which is expected to continue throughout 2011 potentially then to 
be followed by feasibility study work 
the telégrafo deposit is part of esperanza’s existing property and could be 
used to extend that mine’s life or increase the size of the operation the telégrafo 
deposit is owned through minera esperanza and hence the group’s interest in 
the deposit is 70 during 2010 us146 million of exploration work was 
carried out at the deposit the mineral resource at the telégrafo deposit is 2728 
million tonnes at an average copper grade of 035 of which the sulphide 
deposit represents 2677 million tonnes at 036 copper plus 0010 
molybdenum and 010 gtonne gold and the oxide deposit represents 51 million 
tonnes at 021 copper 
sierra gorda district 
the group’s primary focus for exploration in chile remains the sierra gorda 
district the group owns or controls a number of properties in the district 
containing both sulphide and oxide resource the existing esperanza 
concentrator plant and the el tesoro sxew operation mean that the group 
is well placed to develop this area as a wider mining district
during 2010 a total of us413 million of exploration and evaluation 
expenditure was incurred in respect of this district 2009 – us204 million 
predominantly in respect of the telégrafo and caracoles deposits mineral 
resource estimates were completed during the year in respect of these two 
deposits increasing the group’s total mineral resources by 39 billion tonnes 
with an average copper grade of 038 along with additional gold and 
molybdenum credits these deposits represent nearly 30 of the total mineral 
resources of the group’s subsidiaries the resources in the district could 
potentially extend the life or scale of the existing esperanza and el tesoro 
plants or allow additional standalone operations
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mining continued
organic and 
sustainable growth 
of the core business
the second aspect of the strategy 
is to achieve sustainable organic 
growth from further developing  
the areas around our existing  
asset base in chile strategic review other information financial statements governance financial review operational review
41 antofagasta plc annual report and financial statements 2010
the caracoles deposit is situated approximately 10 kilometres southeast of 
esperanza and is 100 owned by the group during 2010 us165 million 
of further exploration work was undertaken at the deposit the mineral resource 
at caracoles is 1129 million tonnes at an average copper grade of 045 of 
which the sulphide deposit represents 997 million tonnes at 045 copper plus 
0015 molybdenum and 018 gtonne gold and the oxide deposit represents 
132 million tonnes at 050 copper depending on the results of the ongoing 
prefeasibility study it will be possible to evaluate whether the deposit could 
provide additional feed for the esperanza plant or support a standalone project 
given the depth of the deposit there is a signiﬁcant level of prestripping which 
would be required which could potentially take three to four years to complete 
this prestripping could provide oxide ore for processing by the el tesoro plant
during the second half of 2010 drilling work has continued around these 
deposits in particular to ensure that areas which potentially could be used to site 
waste dumps or plant contain no economic mineralisation
as discussed above in the el tesoro section in december 2010 el tesoro 
commenced prestripping of the mirador oxide deposit exploration work is also 
continuing on the mirador sulphide deposit with us21 million of exploration 
expenditure incurred during 2010
in addition to the above properties a further us81 million of exploration work 
was performed in the sierra gorda district during 2010 in respect of a number 
of other properties which the group owns in the area in particular the llano
palaeocanal centinela and polo sur deposits these deposits contain both 
sulphide and oxide mineralisation and exploration work suggests that these 
deposits have the potential to contain between 450 to 690 million tonnes 
with a corresponding average grade of between 054 and 044
los pelambres
los pelambres is continuing to review options for the longerterm development 
of the mine especially given the size of the resource base which at 58 billion 
tonnes is more than four times the ore reserve of 14 billion tonnes 
a scoping study is in progress looking at the opportunities to utilise this large 
resource base focusing particularly on the key enablers of water supply 
community engagement and environmental impact the analysis is considering 
ﬁrstly opportunities to extend the mine life as well as the potential for expanding 
the scale of the operation over recent years los pelambres has undertaken a 
number of incremental expansions to plant capacity however given both the size 
of the resource base now in place and also the number of potential bottlenecks 
with existing mine plant and related infrastructure which would need to be 
addressed in the case of further expansion it is possible that the studies 
currently in process may indicate the rationale for a substantial increase in the 
scale of the operation it is expected that work on the scoping study will continue 
through much of 2011 potentially to be followed by the commencement of a 
prefeasibility study
michillaantucoya
michilla
as detailed in the michilla operations section above michilla is continuing with 
work in respect of its core resource base to extend its current mine plan beyond 
2012 during 2010 a major drilling campaign progressed with 493 drill holes 
completed with a total of more than 86000 metres of drilling
in addition to the various deposits which are included within michilla’s resource 
estimate the rencoret deposit has potential to eventually further supplement that 
resource base in the longer term exploration work suggests that this deposit has 
the potential to contain between 15 to 25 million tonnes with a corresponding 
average grade of between 122 and 100
antucoya
antucoya is an oxide deposit located approximately 45 kilometres east of 
michilla the deposit is a large but low grade resource with 15 billion tonnes 
of mineral resource at an average copper grade of 027 at a cutoff grade 
of 010 
a feasibility study is under way evaluating the potential for a project producing 
approximately 80000 tonnes of copper per year with a 19year mine life the 
study envisages the operation would combine heapleaching of ore on dynamic 
pads as well as runofmine  “rom” leaching on permanent pads while the 
deposit is low grade by historical standards for a greenﬁeld project there are 
a number of compensatory factors there is a relatively low level of prestripping 
required at the deposit reducing the potential construction time and cost 
the waste to ore ratio is also very favourable at approximately 04 tonnes of 
waste to every tonne of ore reducing the mine site costs of material extraction 
and movement the nature of the mineralogy also results in a relatively short 
leaching cycle partly as a result of these factors preliminary estimations are 
that the capital cost of the project could be approximately us950 million and 
that operating cash costs could be in the region of between 135 to 150 cents 
per pound
detailed work on the feasibility study was undertaken in the second half of 2010 
with us17 8 million capitalised during the year in respect of the feasibility study 
a test pit has been constructed allowing detailed metallurgical analysis to be 
performed including test leaching of extracted ore on specially constructed leach 
pads at michilla the environmental impact assessment was submitted to the 
authorities in november 2010 it is expected that the feasibility study should 
be complete by mid2011 depending on the results of the study and project 
approval it is possible that construction could commence by the end of 2011 
given the low level of prestripping required at the deposit it is possible that 
construction could be completed within a twoyear period which could result 
in ﬁrst production by early 2014 operational review
42 antofagasta plc annual report and financial statements 2010
per day plant which would be capable of future expansions the study indicates 
average annual production for the ﬁrst ﬁve full years of operation of approximately 
190000 tonnes of copper and 270000 ounces of gold again on a 100 basis 
cash costs before byproduct credits are estimated at approximately 140 cents 
per pound with the gold credit reducing net cash costs by approximately 
65 cents for every us100 in the gold price 
further progress on this project will be dependent on the grant of the mining 
lease for which an application has been ﬁled on 15 february 2011 and 
successful conclusion of litigation which is currently in progress before the 
supreme court of pakistan the supreme court is currently hearing several 
constitutional petitions which among other things challenge the validity of the 
chagai hills exploration joint venture agreement from 1993 with the 
government of balochistan and tethyan’s mining rights on 3 february 2011 
the supreme court issued an interim order providing among other things that 
the government of balochistan may not take any decision in respect of the grant 
or otherwise of a mining lease to the project company until the matters before 
the supreme court are decided 
united states – twin metals – nokomis deposit
on 21 july 2010 the group signed a deﬁnitive participation and limited liability 
company agreement pursuant to the legally binding heads of agreement “hoa” 
signed on 14 january 2010 with duluth metals limited “duluth” to acquire a 
40 interest in the project company twin metals minnesota llc “twin metals” 
which holds the nokomis coppernickelplatinum group metal “pgm” deposit 
reko diq 
the group holds a 50 interest in tethyan copper company limited 
“tethyan” its joint venture with barrick gold corporation “barrick” 
tethyan’s principal assets are a 75 interest in the exploration licence 
encompassing the reko diq prospects in the chagai hills region of southwest 
pakistan including the western porphyries and a 100 interest in certain 
other licences in the region 
the mineral resource at reko diq is estimated at 59 billion tonnes with an 
average copper grade of 041 and an average gold grade of 022 gtonne 
the group’s attributable share of this joint venture interest amounts to 
22 billion tonnes
the group’s 50 share of exploration and evaluation expenditure which has 
been expensed during 2010 was us161 million 2009 – us325 million 
a total of us1207 million has been capitalised within intangible assets in 
respect of the value of the licences acquired in respect of the project and 
us202 million has been capitalised within property plant and equipment 
predominantly in respect of the costs of the feasibility study
work on the feasibility study and the environmental and social impact 
assessment study are both complete a copy of the feasibility study has 
been delivered to the government of balochistan in accordance with the 
terms of the joint venture agreement between tethyan and the government 
the feasibility study indicates potential capital costs for the project of 
approximately us33 billion on a 100 basis based on a 110000 tonne 
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growth beyond 
the core business
the third aspect of the group’s 
strategy is to look for growth beyond 
the areas of its existing operations 
– both in chile and internationally 
the primary focus is on earlystage 
opportunities with the potential for 
largescale development
mining continued strategic review other information financial statements governance financial review operational review
43 antofagasta plc annual report and financial statements 2010
“nokomis” located in the highly prospective duluth complex in northeast 
minnesota usa the group will fund a total of us1300 million of further 
exploration and feasibility study expenditure over a threeyear period and has 
the option to acquire an additional 25 interest in nokomis under certain 
conditions including the completion of the feasibility study 
the deposit is situated in an established mining district with signiﬁcant existing 
infrastructure in place duluth has published an ni 43101 compliant resource 
estimate for the deposit consisting of 550 and 274 million tonnes of indicated 
and inferred resource respectively with a combined copper grade of 
approximately 06 and a combined copper equivalent grade of approximately 
15 taking into account the nickel platinum palladium and gold content 
us109 million of exploration and evaluation expenditure was incurred by the 
group during 2010 in respect of the project including acquisitionrelated costs 
exploration drilling work is concentrated during the winter months to minimise 
potential environmental impact and so it is anticipated that further drilling will 
take place from the latter part of 2011 and early 2012 work to date has also 
focused on initial stakeholder engagement with local authorities and 
communities the forecast expenditure for the project in 2011 is currently 
estimated at approximately us50 million
on 20 december 2010 the group entered into arrangements with duluth in 
connection with duluth’s proposed acquisition of 100 of franconia minerals 
corporation “franconia” following approval of the acquisition by franconia’s 
shareholders and by the court of queen’s bench of alberta duluth completed 
the acquisition on 7 march 2011 franconia’s principal assets are a 70 interest 
in the birch lake joint venture “bljv” which holds the birch lake maturi and 
spruce road coppernickelplatinum and palladium deposits that are contiguous 
to the nokomis deposit held through twin metals franconia announced in 
november 2010 its intention to increase its ownership at the birch lake project 
to 82 under the terms of the bljv agreement the offer valued franconia at 
approximately c77 million approximately us77 million duluth and 
antofagasta agreed that following the proposed acquisition franconia’s assets 
will be transferred to twin metals subsequent to the year end antofagasta has 
contributed approximately c30 million approximately us30 million in cash to 
duluth’s acquisition of franconia in order to in part maintain the 40 and 60 
interests of antofagasta and duluth respectively in twin metals following the 
completion of duluth’s acquisition it is expected that franconia’s assets will be 
transferred to twin metals during the ﬁrst half of 2011
other exploration and evaluation activities
the group has continued with its extensive earlystage exploration activities 
beyond its existing core districts both in chile and internationally in general 
this is undertaken by the group’s internal exploration team in those areas where 
the group has historically had its deepest experience namely chile and peru 
typically when the group wishes to engage in earlystage exploration work 
outside of those areas it does so through partnerships with other companies 
already established in those locations during 2010 the group established an 
ofﬁce in toronto canada to support its continuing search for such opportunities
during 2010 the group’s internal exploration team continued to perform 
exploration work in chile in areas beyond the existing core locations of the sierra 
gorda los pelambres and michillaantucoya districts as well as this internal 
exploration work in chile the group also continued to fund work at rio figueroa 
the exploration project located in the atacama region in which the group holds 
a 30 stake the combined expenditure on these exploration and evaluation 
activities in chile during 2010 was us98 million in august 2010 the group 
also entered into an earnin agreement with a subsidiary of codelco in respect 
of a prospect close to the group’s own properties in the sierra gorda district
the group has continued to expand its portfolio of earlystage international 
exploration interests through a number of earnin agreements during 2010 
the group incurred us119 million of exploration and evaluation expenditure in 
respect of its international earlystage exploration activities during the year the 
group entered into agreements in alaska in the united states and in australia 
subsequent to the year end the group entered into a further agreement in 
sweden further details of these agreements are set out in notes 32 and 39 
to the ﬁnancial statements the group’s portfolio of international earnin 
agreements also includes projects in spain and eritrea after evaluation of the 
results of the exploration activities to date the group decided during 2010 not 
to proceed further with its earnin agreements in zambia namibia and peru
opportunities in geothermal and coal 
exploration and generation
the group is also continuing with its exploration and development activities 
relating to geothermal and coal energy prospects 
energía andina sa the joint venture between the group and the chilean 
stateowned empresa nacional del petróleo “enap” is continuing with its 
activities for the exploration and development of geothermal energy prospects 
in chile energía andina has been granted 13 concessions to date grouped into 
six projects and is engaged in the bidding process to acquire a number of 
further concessions 
exploration activity to date has focused on surface exploration with the group’s 
share of energía andina’s exploration and evaluation expenditure during 2010 
being us39 million exploration drilling is expected to commence in 2011 
depending on the results of this work it is anticipated that drilling of the ﬁrst 
geothermal well could commence in late 2011 allowing feasibility work to be 
undertaken during 2012 
work is continuing on the potential underground coal gasiﬁcation “ucg” 
project at the mulpun coalﬁeld situated near valdivia in southern chile along 
with the group’s partner in the project carbon energy limited “carbon energy” 
of australia in august 2010 the group received environmental approvals for 
the ﬁrst stage of the project which allows construction and operation of a pilot 
scheme including the ﬁrst ucg panel and onsite facilities and engineering 
studies in relation to the trial project were undertaken in the second half of 
the year  operational review
44 antofagasta plc annual report and financial statements 2010
during 2010 a capital restructuring of inversiones hornitos took place with 
the fcab’s previous capital contributions being reduced by us57 2 million 
and replaced with loan ﬁnancing from the fcab with the fcab contributing 
us786 million of further loan ﬁnancing to inversiones hornitos during the year 
the fcab’s cumulative total investment in inversiones hornitos in both equity 
and loans was us1542 million at 31 december 2010
the antofagasta port which is managed by the group’s 30 associate 
investment antofagasta terminal internacional sa “ati” contributed 
us19 million to group results 2009 – us15 million ati is a strategic 
investment for fcab and complements its principal business as the main 
transporter of cargo within chile’s antofagasta region 
fcab also owns forestal sa which manages the group’s forestry assets 
forestal’s two properties relecopuñir and huilohuilo comprise 26295 
hectares of native forest near the panguipulli and neltume lakes in chile’s 
region de los lagos during 2010 forestal continued with its ongoing 
forestation fertilisation and thinning programme to maintain these assets 
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in chile the antofagasta railway 
company’s “fcab” main business 
continues to be the transport of 
copper cathodes from and sulphuric 
acid to mines in the antofagasta 
region fcab’s trucking service 
train ltda is a key part of fcab’s 
bimodal transport service in bolivia 
fcab has a 50 controlling interest 
in the ferrocarril andino which 
connects to the chilean network 
at ollague 
2010
6184 1919
rail tonnage
transported ’000 tons
road tonnage
transported ’000 tons
the transport division had a solid operational performance during 2010 
with total volumes increasing by 34 to 81 million tons rail volumes 
decreased marginally to 62 million tons and road volumes increased 
by 27 5 to 19 million tons 
combined turnover at the transport division was us1547 million an 110 
increase compared to the us1394 million achieved in 2009 this increase 
reﬂected tariff adjustments partly due to rates indexed to inﬂation and fuel 
costs as well as the higher volumes as a result operating proﬁt also 
increased by 61 from us413 million to us438 million
the fcab holds a 40 interest in inversiones hornitos sa “inversiones 
hornitos” a company which is constructing the 150 mw hornitos 
thermoelectric power plant in mejillones in chile’s antofagasta region 
the plant will provide energy to esperanza under a longterm supply 
agreement construction of the plant is substantially complete with 
commissioning having commenced and the plant is expected to begin 
operations on schedule during q2 2011 
transport strategic review other information financial statements governance financial review operational review
45 antofagasta plc annual report and financial statements 2010
in early 2011 an environmental application was submitted for the construction 
of a second desalination plant in the city of antofagasta under the terms of the 
existing concession to provide additional capacity for future growth in domestic 
and industrial demand a decision to proceed with this project if environmental 
permits are approved could be taken later in 2011 the plant which would have 
an estimated capacity of 1000 litres per second has an estimated cost of 
us120 million and could come into operation by 2014
adasa is forecasting a slight increase in volumes in 2011 the company’s 
revenues and proﬁts are predominantly in chilean pesos and will be impacted 
by the relative strength or weakness of that currency against the us dollar the 
currency in which the group reports its results the regulated water business is 
subject to a tariff review every ﬁve years with the next review due in mid2011
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aguas de antofagasta “ adasa ” 
operates a 30year concession for 
the  distribution of water in chile’s 
antofagasta region which it acquired 
from the stateowned empresa 
concesionaria de servicios sanitarios 
sa “econssa ” in 2003 adasa ’s 
operation consists of two main 
businesses a regulated water business 
supplying domestic customers and an 
unregulated business serving mines 
and other industrial users
2010
463
water volume sold 
million cubic metres
combined domestic and industrial water sales in 2010 amounted to 
463 million cubic metres an increase of 59 compared with the 2009 
volumes of 437 million cubic metres this was principally due to a 63 
increase in demand from domestic clients and a 48 increase in demand 
from industrial customers water volumes are mainly sourced by surface rights 
as well as the desalination plant in the city of antofagasta which was acquired 
during 2009 and which is now operating at capacity
turnover in 2010 was us924 million a 105 increase compared with 
2009 this improvement largely reﬂected the increase in volumes outlined 
above and the stronger chilean peso being the currency in which the 
revenues are invoiced this increase in revenues was largely reﬂected in 
the increase in operating proﬁt which rose by 115 to us505 million 
2009 – us453 million
water operational review
46 antofagasta plc annual report and financial statements 2010
effective management of social and environmental issues reduces costs and 
risks to our business supports our reputation underpins our relationships with 
key stakeholders including investors regulators employees and communities 
and helps us to maintain our social licence to operate and grow 
principles and strategy
the board has 10 sustainable development principles to guide the decision
making and actions of its employees and contractors and to help embed 
sustainability into the business the principles and a number of social and 
environmental policies are included in “the way we think the way we act” 
which is available on the group’s website wwwantofagastacoukpdf
social2008principlesenpdf 
in support of its strategic plan the group has also approved a social and 
environmental strategy for the mining division the strategy deﬁnes how the 
group intends to generate economic social and environmental value and has 
two core elements
to see this report online go to
wwwantofagastacouk
sustainable development
corporate sustainability
sustainable development forms an 
integral part of the group’s decision
making process and supports 
achievement of our business strategy 
the board continues to place importance 
on a range of considerations including 
health and safety management of 
human resources environment and 
community relations  strategic review other information financial statements governance financial review operational review
47 antofagasta plc annual report and financial statements 2010
1 social responsibility to build relationships of trust and mutual beneﬁt 
with stakeholders by taking action in three areas
  responsible behaviour – the group will prioritise the health and safety of 
employees and contractors maintain a beneﬁcial work environment minimise 
negative impacts on society engage with key stakeholders and monitor 
progress against commitments
  risk management – the group will seek to identify minimise and manage 
sociopolitical risks and be prepared to professionally manage any crises 
or incidents that occur
  developing local human capital – the group will seek to contribute to local 
development in the communities near its sites through job creation and local 
sourcing and by supporting local education the group will seek to implement 
initiatives to improve local quality of life and support the development and 
growth of other economic activities 
2 environmental responsibility to protect the environment and natural 
resources by taking action in three areas
  o p erational ef ﬁ c iency – including managing tailings and other waste 
water electricity fuel consumption and land use
  controlling environmental impacts – including air and water quality 
water availability biodiversity greenhouse gas emissions and 
environmental incidents
  environmental beneﬁts – including providing environmental education 
using renewable energy enhancing biodiversity protecting cultural heritage 
and developing beneﬁcial new technologies
the group is working to embed sustainability issues into management systems 
and decision making to ensure delivery of its strategy see management systems 
and stakeholder engagement on page 48
material issues 
risks and opportunities
the group’s strategy focuses on the risks and opportunities that are most 
material to its business and its stakeholders these are identiﬁed through its risk 
management and engagement processes see below the sustainability issues 
currently considered to be most material to the group are
social environmental
 safety 
  talent attraction development 
and retention
  labour relations
 community relations
 community development
  resource use efﬁciency including 
energy fresh water fuel land use and 
waste recycling
  minimising environmental impacts including 
air quality water quality and availability 
greenhouse gas emissions biodiversity 
and heritage
risk management 
risks to each operating company including social and environmental risks are 
identiﬁed and monitored through the group’s central risk management system 
this is informed by the ﬁndings of stakeholder engagement activity see page 
48 the key risks for each division are mapped and processes are put in place 
to manage and mitigate these the current main sustainability risks and 
mitigating measures are
risk mitigation
an operational incident which damages 
the environment could affect the group’s 
relationships with local stakeholders and 
our reputation and ultimately undermine 
its social licence to operate and to grow
a comprehensive approach to incident 
prevention has been put in place 
relevant risks have been mapped and 
are monitored the group approach includes 
raising awareness among employees and 
providing training to promote operational 
excellence
water is a strategic resource for the group’s 
mining operations and water scarcity is a 
particular risk to projects located in dry 
areas such as the atacama desert
the group has pioneered the use of sea water 
in chile and strives to ensure maximum 
efﬁciency in the use of it achieving high rates 
of reuse and recovery esperanza is the ﬁrst 
major operation in chile to use untreated sea 
water on a large scale
lack of compliance with newly introduced 
environmental regulations
new and proposed legislation is monitored 
to enable the group to anticipate mitigate 
or reduce negative impacts to our operations
failure to identify social and environmental 
risks that can impact the viability of 
new ventures 
new investments are now subject to a social 
due diligence process as well as economic 
and environmental analysis
effective management of social and 
environmental issues reduces costs and 
risks to our business supports our 
reputation underpins our reputation with 
key stakeholders and helps us to maintain 
our social licence to operate and grow operational review
48 antofagasta plc annual report and financial statements 2010
corporate sustainability governance 
the board has put in place procedures and management structures including 
risk management procedures at group and business unit level to ensure the 
implementation of its sustainable development principles and amsa’s social 
and environmental strategy these arrangements are part of the overall group 
governance arrangements described in the corporate governance report
the directors’ responsibilities including those relating to risk management 
and control are described in the statement of directors’ responsibilities
the corporate sustainability committee was established in 2008 and has 
three members mr jp luksic the group chairman and nonexecutive 
directors mr g s menéndez and mr r f jara see directors’ biographies 
on page 70 the committee met once in 2010 
reporting
the group reports its sustainability performance through a number of channels 
including this annual report and the group’s sustainability report the group’s 
two largest mines los pelambres and el tesoro also publish annual site reports 
antofagasta minerals provides information for the mining social and 
environmental report published by the chilean mining council a national 
industry organisation
a new task force was established in 2010 to oversee reporting of the group’s 
sustainability performance its members include deputy managers from the 
business units as well as key functions such as human resources environment 
external affairs operations ﬁnance and audit the taskforce will help to improve 
the quality and consistency of reporting among different business units and 
functions and raise sustainability awareness across the group 
stakeholder engagement
the group recognises the importance of stakeholder engagement at the local 
national and international levels regular dialogue helps to identify and address 
sustainability risks and opportunities and to build strong relationships with key 
stakeholders based on trust and mutual beneﬁt it helps us to avoid conﬂict 
and contributes to the longterm success of the business 
the group has identiﬁed its key stakeholders as investors employees and 
contractors communities local and national governments and regulators 
and the media 
in 2010 regular meetings with key investors were held as well as a series 
of interviews with responsible investors to get feedback on the group’s 
approach to sustainability issues the group also participated in the carbon 
disclosure project 
the group interacts with communities near its sites at all stages of project 
development and operation the mining division also conducts an annual 
employee perception survey the results are reviewed by senior management 
who develop action plans to respond to key ﬁndings an annual reputation 
survey was conducted where the views of social and political leaders local 
communities employees and contractors were noted the 2010 results will 
be summarised in its sustainability report 2010
adasa the water business was included in the annual customer surveys 
conducted by siss the regulator of the sanitary services industry this assessed 
issues such as water quality customer service billings and service continuity 
management systems
amsa uses an assessment of environmental performance “aep” tool to 
monitor progress against its performance indicators these cover operational 
efﬁciency impact control and environmental beneﬁts the group will further 
strengthen the aep this year and add more information on how environmental 
beneﬁts can be generated the group is also developing an assessment of 
social performance tool that includes performance indicators on issues such 
as health and safety employee development and diversity stakeholder 
relationships grievance procedures and community investment
each operation uses these frameworks to set its own goals reﬂecting local 
priorities key environmental indicators are now included in the monthly 
performance reports submitted by the mining businesses and are reviewed 
by amsa’s environmental manager the group plans to integrate key social 
indicators into these reports during 2011
corporate sustainability continued strategic review other information financial statements governance financial review operational review
49 antofagasta plc annual report and financial statements 2010
the group produced a corporate environmental best practices handbook that 
contains the key frameworks and standards including those of the international 
finance corporation and international council on mining and minerals 
relevant to the exploration construction operation and closure stages of 
mining operations it aims to ensure a consistent approach to environmental 
management and decision making across the business the handbook will be 
rolled out in 2011 
the group has achieved accreditation to the international management 
standards iso 14001 iso 9001 and ohsas 18001 at a number of our sites 
see table below during 2011 it plans to achieve accreditation to iso 14001 
at esperanza’s port facility located in michilla with a view to extending it to 
the rest of esperanza in future
certiﬁcation iso 14001 iso 9001 ohsas 18001
los pelambres
el tesoro
michilla –
antofagasta railway company –
aguas de antofagasta ––
audit and performance assessment
regular internal and external audits are used to assess performance and 
implementation of our management systems and our compliance with the law 
in regard to labour social security and occupational health issues as well as 
employment standards 
external auditors are commissioned to assess contractor compliance with our 
safety human rights and labour standards this includes group policies on fair 
wages collective bargaining paid overtime and vacations and those prohibiting 
child labour and forced labour
during 2010 independent external auditors assessed environmental 
performance at each of the operations they identiﬁed and classiﬁed a number 
of risks and made recommendations for improvement the operations have 
developed action plans to implement these recommendations improvements 
have included the introduction of additional safety measures to prevent water 
pollution at the port in punta chungo and new measures to reduce dust 
emissions and protect worker safety at tesoro and michilla
activity in 2010
safety
protecting the safety of employees contractors and local communities is a 
priority for the group the group focuses on identifying mitigating and managing 
the safety risks inherent in its different operations and development projects 
the group requires all contractors to comply with its occupational health 
and safety plan 
the group’s goal is to create a safety culture through regular training and 
awareness campaigns for employees and contractors it also aims to reach 
workers’ families and local communities particularly on issues of road safety 
antofagasta minerals has a team of safety experts that train and supervise 
workers and contractors all new workers contractors and visitors must 
complete a health and safety induction course before entering one of the 
group’s mining operations employees and contractors must also attend 
refresher workshops on our safety policies and procedures at least every other 
year the group operates personal identiﬁcation systems for machinery so 
that it can only be operated by authorised and appropriately trained personnel 
all facilities have been constructed to withstand the impact of earthquakes 
and evacuation plans have been put in place
contractor safety practices are monitored through monthly audit processes 
contractors are required by law to establish workeremployer accident 
prevention committees
as well as operational safety antofagasta minerals focuses on road safety 
training and awareness to prevent transport accidents road transportation 
contracts include strict requirements on safety compliance with standards 
is monitored through speed controls and random breathalyser tests 
all incidents are investigated and action plans put in place to prevent recurrence 
this may include redesigning procedures andor maintenance programmes 
revising equipment control protection and blockage systems and providing 
increased training for workers 
safety and health management systems are established across the group 
and the majority of its mining operations and the railway are certiﬁed to ohsas 
18001 los pelambres is also making certiﬁcation to ohsas 18001 a 
requirement for contractors and is helping them to achieve this 
the board has a clear target of zero fatalities and considers any fatality to 
be unacceptable in response to the four fatalities at los pelambres in 2009 
los pelambres introduced changes that link workers’ remuneration to safety 
performance 25 of the workers’ bonus is now awarded based on whether 
the site’s lost time injury frequency target has been met operational review
50 antofagasta plc annual report and financial statements 2010
lost time injury frequency rate 
ltifr 
all injury frequency rate 
aifr number of fatalities
2010 2009  2008 2007 2006 2010 2009 2008 2007 2006 2010 2009 2008 2007 2006
chilean mining industry na 40 58 59 58 na na na na na na 35 43 40 31
mining council na 23 32 34 na na na na na na na 86 10 na
los pelambres 09 13 13 17 23 26 36 66 53 75 2 4–––
el tesoro 05 17 20 12 22 46 60 66 131 194 – 1–––
michilla 42 32 44 26 13 88 99 121 128 127 – – –11
esperanza 16 15 16 na na 147 150 82 na na – ––––
amsa including exploration 32 60 54 na na 136 230 131 na na – – 1––
mining 16 17 22 18 20 101 85 82 90 116 2 5111
fcab 74 120 139 192 153 264 339 357 443 375 – ––– 3
adasa 56 70 115 86 91 224 168 216 287 299 – ––––
group 19 28 44 56 49 110 110 129 171 175 2 5114
deﬁnitions
ltifr – number of accidents with lost time during the year per million hours worked
aifr – number of accidents with and without lost time during the year per million hours worked
 chilean mining industry source – servicio nacional de geología y minería 2010 fullyear ﬁgures have not yet been released by servicio nacional de geología y minería and therefore 
are not shown above
 data from the chilean mining council consejo minero an industry association which represents a number of large mining companies in chile 
na figures for chilean mining industry and mining council 2010 are not currently available
 
the management systems put in place by the operations have allowed the 
group’s indicators to remain stable and with a tendency to decrease despite 
the operations’ sustained growth and growing complexity of processes that have 
augmented the demand on structures systems and people this effort has been 
recognised by the mining ministry who in 2010 granted minera esperanza the 
“benjamín teplizky” annual prize on excellency in environmental health and 
safety management it must be noted that through 2009 and most of 2010 
this site was under construction a stage normally associated with an increase 
in safety risks
nevertheless the two fatal accidents in 2010 emphasise the need to continually 
improve the system despite improvements in standards to date in order to 
achieve this the mining operations plan to introduce global operational excellency 
programmes combined with risk management models that help make 
preventive actions more effective
the board deeply regrets the death of two contractors at los pelambres during 
2010 following these incidents further safety training and awareness raising 
has  been provided for workers the group audited relevant systems at 
los pelambres and inspected all other facilities using similar systems 
protecting workers’ and contractors’ health is also a priority as well as 
implementing high standards on issues such as dust control and the use of 
protective equipment the group provides a yearly preventative health check 
for workers and runs programmes on issues such as healthy eating combating 
stress and smoking cessation many of its operations provide gyms and other 
sporting facilities for workers and offers healthy eating options in cafeterias 
the group’s lost time injury frequency rate ltifr was an average of 
19 injuries per million hours worked in 2010 compared with 28 the 
previous year see above 
corporate sustainability continued strategic review other information financial statements governance financial review operational review
51 antofagasta plc annual report and financial statements 2010
employment
training and development
there is a growing talent shortage in chile making it more difﬁcult and 
expensive to recruit and retain skilled employees this particularly affects 
the mining industry which may soon experience a shortfall in the number 
of qualiﬁed mining professionals available for new projects the group is 
participating in a survey commissioned by the mining council to obtain more 
detailed data on this issue 
the group increased its focus on training and development during 2010 to 
ensure it continues to develop the skills and expertise the business needs 
this included
  the launch of the antofagasta minerals management diploma in partnership 
with the adolfo ibanez university school of business this is designed to help 
trainees ﬁrsttime managers middle managers and senior managers develop 
their leadership capabilities and was completed by 120 employees
  a graduate trainee programme was completed by 15 graduates most of 
whom have been offered fulltime positions with the business we will expand 
the programme to 30 graduates in 2011
  the new leaders for change twoday workshop completed by 30 leaders 
and potential leaders in 2010 
labour relations
the group aims to build constructive relationships with employees and the 
13 labour unions that represent them and to resolve any issues that arise 
through regular dialogue this contributes to the productivity and efﬁciency of 
our business and helps us to avoid the disputes and strikes that have affected 
much of the chilean mining industry in recent years 
collective agreements are in place at all mining operations covering 
remuneration as well as terms and conditions of employment there were 
two collective bargaining processes in 2010 with unions at los pelambres 
and michilla the negotiations were successful and new contracts were agreed 
for the maximum period allowed under chilean law well ahead of the expiration 
of the previous agreements 
contractors made up a signiﬁcant proportion of the workforce of the group’s 
mining division in 2010 the group requires its contractors to meet high 
employment standards in line with our own this includes offering a minimum 
wage that exceeds legal requirements and passing on a portion of any bonuses 
they receive from antofagasta to their employees their approach is monitored 
through the group’s annual performance agreement system and regular audits 
there were no labour disputes and no strikes among our employees or 
contractors during 2010 the operations received a positive rating in the 
compliance audits conducted by the government agency responsible for 
monitoring compliance with chile’s labour laws audits cover issues such as 
health and safety and remuneration 
the group complies with legal requirements relating to employment in chile 
including those concerning child labour discrimination and equal opportunity 
as in previous years no cases of human rights breaches were identiﬁed in 2010
diversity
the group is committed to equal opportunities in all areas of employment 
including recruitment employee development and remuneration data on gender 
diversity will be available in the group’s sustainability report the group has 
introduced a number of initiatives to increase representation of women including 
a training plan for local women near to the el tesoro and esperanza mines 
women account for 14 of the workforce at esperanza compared with the 
national average for the mining industry of 6 
internal communication
the group aims to keep employees informed about the business through a range 
of channels including the intranet newsletters bulletin boards and social events 
the group seeks feedback from employees in our mining division through regular 
employee surveys in response to the ﬁndings of our 2010 survey we will be 
focusing on training team leaders to give feedback to employees and introducing 
new systems for recognising employee achievements 
the group has introduced a number 
of initiatives to increase representation 
of women including a training plan for 
local women near to the el tesoro and 
esperanza mines operational review
52 antofagasta plc annual report and financial statements 2010
engaging with indigenous communities
our mulpun coal gasiﬁcation project is located adjacent to a mapuche community 
this is the ﬁrst time a group project has been located next to an indigenous 
community we have taken a proactive approach to engagement and to date 
this has proved successful the mapuche community has not opposed 
development of the site and have become willing to engage with us 
our approach at mulpun has included demonstrating our goodwill by providing 
information on the project from its earliest stages before applying for 
environmental approval
we have also launched a number of projects to bring sustained beneﬁts to local 
people this has included bringing electricity to the community for the ﬁrst time 
we have ﬁnanced and overseen the installation and also educated local families 
on how to use energy efﬁciently and how to budget for their electricity bills 
we are using our experiences at mulpun to inform our approach to engagement 
with native communities in other locations
community relations 
and engagement
the group’s businesses make a signiﬁcant contribution to economic 
development but it recognises that mining operations can also negatively 
impact local communities it seeks to maximise our positive contribution 
and to minimise negative impacts as well as fostering good relations with 
the communities near its sites through regular dialogue this helps to avoid 
conﬂict contributes to the efﬁcient running of operations and helps protect 
the group social licence to operate and to grow 
the group engages with local stakeholders at our sites and development 
projects in a variety of ways including through facetoface meetings 
newsletters and radio broadcasts it often establishes joint community
company committees to address speciﬁc issues such as air quality 
water availability or site closures 
the group respects the culture customs and values of indigenous groups 
for details of our approach to engagement with indigenous communities 
see case study 
the group conducts regular surveys to get feedback from local people and 
to help us better understand their views more details are available in the 
sustainability reports of los pelambres and tesoro operations 
ethical conduct 
the group is committed to meeting high ethical standards in its work the 
ethics committee oversees approach monitors compliance with the group’s 
policies and investigates any reports of suspected unethical conduct the 
committee is made up of the vicepresidents of risk human resources and 
corporate affairs and its work is overseen by the audit committee on issues 
relating to the mining division it reports to the chief executive ofﬁcer of 
antofagasta minerals 
the group has an ethics code which applies to all its operations and projects 
in chile and abroad it emphasises the board’s commitment to carry out 
business in a responsible and transparent manner it sets standards on a 
range of issues including respect for human rights local customs and values 
and the rights of neighbouring communities as well as the group’s procedure 
for identifying and managing potential conﬂicts of interest it demands honesty 
integrity and responsibility from all employees and contractors 
employees may report any unethical behaviour anonymously if necessary 
via the group’s intranet site there were no reported cases of suspected 
misconduct that required investigation by the ethics committee during 2010 
during 2010 further revisions were made to the code and other internal 
control procedures to ensure compliance with chile’s new relevant legislation 
an updated code is expected to be rolled out in 2011
corporate sustainability continued strategic review other information financial statements governance financial review operational review
53 antofagasta plc annual report and financial statements 2010
supporting communities affected by the chilean earthquake
the earthquake and tsunami which shook the centralsouth zone of chile in 
february 2010 devastated the coast of the regions of maule and biobio 
five days after the earthquake antofagasta minerals had a debris clearing team 
and equipment working in the severely affected town of curepto in maule region 
simultaneously it engaged with the authorities to offer support for the 
reconstruction and established a us10 million recovery fund and the 
management expertise and standards used in its large mining projects 
to implement and run the scheme
the joint decision was to invest the fund in the recovery of the infrastructure used 
by local artisanal ﬁshing in maule an important source of revenue for the area 
antofagasta minerals’ coastal route project is supporting the recovery of artisanal 
ﬁshing and using the redevelopment as an opportunity to further develop local 
tourist infrastructure as well as a us10 million donation we are applying our 
projectmanagement expertise and the standards and practices used in our large 
mining projects to implement and run the scheme this has included working in 
partnership with key stakeholders and promoting the involvement of local people 
as well as integrating sustainable solutions for energy use and waste management 
into the project design
both the public national local and regional authorities and the private sectors 
were involved in the design and implementation of this initiative the chilean 
architects’ association and world wildlife fund wwf advised on the 
reconstruction of coastline ﬁshing coves to ensure their sustainability and to 
incorporate improvements that will add environmental value local communities 
and organisations were given opportunities to review the project plans
after nearly one year of work 190 ﬁshermen have received new boats andor 
engines through a support programme implemented jointly with government 
agencies along the 160 km coastline six small ports have been rebuilt including 
community centres warehouses and restrooms new restaurant infrastructure has 
been developed to support the tourist industry capable of servicing 1000 tourists 
per day and 141 people trained to work in them 
during 2010 11 members of the caimanes community initiated a hunger strike 
in the context of this litigation demanding a number of measures including 
ﬁnancial demands the strike ended without incident in december 2010 
without ﬁnancial settlements or impact to the health of the strikers 
los pelambres maintained open dialogue with the community and authorities 
throughout the incident the group strongly believes it has taken all appropriate 
steps at the mauro tailings dam both in terms of environmental and community 
measures both during construction and operation the construction of the dam 
was developed in accordance with all legal and administrative requirements 
and complies with international standards of design and operation
el mauro tailings dam
the mauro tailings dam for which environmental permission was received 
in 2004 is located 12 kilometres from the town of caimanes which has a 
population of 700 people in 2008 when the construction of the dam was 
in its ﬁnal stages los pelambres entered into binding settlements in respect 
of litigation relating to the tailings dam which had been initiated after the 
environmental impact study had been approved and which enabled 
construction to be completed in december 2008 after operation of the dam 
had commenced los pelambres became aware of further legal proceedings 
that had been initiated by further members of the caimanes community which 
seek to prevent the operation of the dam a number of these proceedings have 
since been rejected by the relevant courts 
 five days after the earthquake antofagasta 
minerals had a team working in the severely 
affected town of curepto simultaneously it 
established a recovery fund and provided 
management expertise to implement and 
run the scheme operational review
54 antofagasta plc annual report and financial statements 2010
environment
the group recognises the environmental impacts of its mining operations and 
aims to reduce these as far as possible during the development operation and 
closure of its sites when impacts are unavoidable it strives to mitigate and 
compensate them this supports relationships with local communities and 
contributes to operational efﬁciency reduces costs and ensures compliance 
with legislation 
the group’s key environmental impacts include water use water quality 
air quality waste biodiversity and greenhouse gas emissions antofagasta 
minerals uses an assessment of environmental performance “aep” tool to 
monitor progress against its performance measures see page 48
the group aims to raise the environmental awareness of employees through 
training and communication during 2010 it held a series of events around 
world water day and chile’s environment month and distributed a bimonthly 
newsletter with updates on its progress and tips to help employees protect 
the environment 
energy and climate change
climate impact
the group recognises the need to conserve energy and develop a strategic 
response to climate change this will protect the business from future cost 
increases associated with energy supply and carbon emissions reduction 
the group intends to play its part in helping chile achieve its target to reduce 
national greenhouse gas emissions by 20 by 2020 
operations are already implementing energy efﬁciency projects and 
investigating opportunities to use renewable energy where possible 
during 2011 antofagasta minerals will undertake a study of the potential 
effects of climate change on its operations and develop a climate change 
policy that will be presented to the board 
in line with the agreements reached at the un climate change conferences 
chilean law demands that the proportion of energy generation from renewable 
sources should rise from 5 in 2010 to 10 in 2024 antofagasta minerals is 
exploring a number of new renewable energy alternatives to increase the 
proportion of renewable energy in its total energy supply currently renewable 
energy accounts for around 10 at the los pelambres site data is not 
currently available for other sites at the end of 2010 el tesoro issued a tender 
for a major solar thermal plant to provide heat to the electrowinning plant and 
reduce dependence on diesel a decision on whether to progress with the 
project is expected early in 2011 
the group measures and manages its co2 emissions according to the ghg 
protocol of the carbon disclosure project “cdp” in the latest year for which 
cdp data is available 2009 group total co2 emissions were 112 million 
tonnes further data will be published in the group’s sustainability report
contribution to socioeconomic development
the group makes a positive contribution to socioeconomic development 
through the taxes paid the employment created the products and services 
purchased and through the social investments made to enhance the 
development of local human capital 
the group’s social strategy aims to provide training and other support to help 
local people access employment opportunities at our sites for example 
esperanza has committed to hire at least 30 of construction and operation 
workers from the antofagasta region its approach includes training to give 
800 residents the skills they need in areas such as safety quality environment 
and community relations to work at the mine 
antofagasta mineral’s mining companies voluntarily elected to accept 
amendments to the chilean mining tax introduced in 2010 these were 
established to contribute to the ﬁnancing of reconstruction costs following the 
severe earthquake which affected the country in 2010 in exchange for waiving 
protection under existing invariability agreements for a threeyear period from 
2010–2012 the companies will be granted an additional stability period of six 
years at the end of their existing stability agreements during which any 
connected projects will also beneﬁt from tax invariability further details are 
given in the financial review on page 63 
community investment
the los pelambres mining foundation continued to support initiatives in the 
areas of education water resources and productive development during 2010 
see wwwfundacionmlpcl for more information
corporate sustainability continued strategic review other information financial statements governance financial review operational review
55 antofagasta plc annual report and financial statements 2010
the group monitors water consumption and efﬁciency at each operation 
water use levels remained steady this year except at los pelambres where 
levels went up due to an increase in production data on water consumption 
by source and water use efﬁciency will be published in the sustainability 
report 2010 
adasa is seeking to increase the supply of desalinated water for domestic 
consumption in the antofagasta region to 50 
environmental incidents and ﬁnes
the group aims to prevent environmental incidents at our sites chilean 
environmental law provides a wide deﬁnition of environmental impacts so 
in 2010 the group developed a corporate protocol for identifying classifying 
and reporting incidents at its mining sites to help address these and 
prevent recurrences 
the following environmental incidents were reported in 2010 
there was an oil leak from a tank at el tesoro the contaminated soil was 
removed and disposed of according to regulations an improvement plan was 
developed which included building a containment platform improving loading 
and unloading procedures and reviewing the leak control system
at los pelambres there was a tailings spill in the polcura ravine due to a 
drainage gutter becoming blocked the ravine has been thoroughly cleaned 
and the gutter has been strengthened to prevent a recurrence 
also at los pelambres there was a water discharge from the mine tunnel 
evacuation system into the borrega ravine the operation informed the local 
authorities the neighbouring cuncumen community and the local channel 
irrigation association a community organisation which ensures the fair 
distribution of water resources who investigated the incident the local 
water courses were monitored and water quality was found not to have been 
affected the affected area has been thoroughly cleaned and the water 
evacuation system was reviewed
the group was ﬁned us35240 in 2010 in relation to a tailings spill at 
los pelambres in february 2009 which affected the polcura ravine 
energy security
antofagasta minerals continues to work towards securing alternative 
energy supplies and establishing longerterm agreements and contracts 
with energy suppliers
the possibility of new regulations applying to emissions from coal ﬁred power 
stations from 2012 might result in a shortage of supply in the antofagasta 
region if older plants are closed which could impact market prices for energy
energía andina sa the joint venture between the group and the chilean 
stateowned empresa nacional del petróleo “enap” is continuing with its 
activities for the exploration and development of geothermal energy prospects 
in chile energía andina has been granted 13 concessions to date grouped 
into six projects and is engaged in the bidding process to acquire a number 
of further concessions exploration activity to date has focused on surface 
exploration and drilling is expected to commence in 2011 depending on the 
results of this work it is anticipated that drilling of the ﬁrst geothermal well 
could commence in late 2011 allowing feasibility work to be undertaken 
during 2012 
work is continuing on the potential underground coal gasiﬁcation project 
“ucg” at the mulpun coalﬁeld situated near valdivia in southern chile 
along with the group’s partner in the project carbon energy limited 
“carbon energy” of australia in august 2010 the group received 
environmental approvals for the ﬁrst stage of the project which allows 
construction and operation of a pilot scheme including the ﬁrst ucg panel 
and onsite facilities and engineering studies in relation to the trial project 
were undertaken in the second half of the year 
water resources
the group’s mining operations use signiﬁcant volumes of water water use is 
a particularly important issue for the group due to its location in areas of water 
scarcity the group needs to use water efﬁciently and recycle it where possible 
to ensure its continued availability for our operations and local communities 
the group must also protect the quality of fresh water sources near its sites 
all mines have water management plans in place to reduce and monitor water 
use and ensure that emissions of wastewater meet relevant quality standards 
to reduce demand on fresh water sources michilla has pioneered the use 
of nondesalinated sea water in its operations and a similar system will be 
implemented at esperanza where use of thickened tailings also increases 
water recovery see page 37  los pelambres uses a system of industrial water 
recirculation which recycles a high proportion of water used in its processes 
el tesoro operates a similar system 
the group is reviewing whether implementation of the water accounting 
framework developed by the sustainable minerals institute at the university 
of queensland would help to better audit group water consumption  operational review
56 antofagasta plc annual report and financial statements 2010
a sustainable approach to the site closure
when closing group facilities we aim to work closely with local people to ﬁnd 
safe and sustainable solutions for example in 2010 los pelambres began the 
process of closing a tailings dam at los quillayes 
the group has worked closely with local people since 2008 to jointly develop 
a closure plan for the site this includes an innovative remediation programme 
known as phytostabilisation the 400 hectare site is being covered with a thick 
layer of topsoil and planted with native species this will reduce the risk of 
pollution and leaching due to wind or water erosion over the life of the project 
estimated to be 10–15 years it will also create employment opportunities for 
local people in planting irrigation and cultivation
waste
mining operations produce signiﬁcant amounts of hazardous and non
hazardous waste including waste rock spent ore and tailings waste from 
processing ore and concentrates hazardous waste consists mainly of 
used oils rags and containers with the remains of oil leadcontaminated 
sediment and used batteries waste is also an issue for the transport and 
water businesses 
the group aims to reduce the amount of waste it produces to reuse resources 
where possible and to dispose of waste according to legal requirements 
tailings
it is particularly important that tailings are managed safely to prevent leakages 
which could impact water quality the failure of a tailings dam could have a 
major impact on local communities the environment and the group’s workers 
all dams are designed to resist extreme weather and highmagnitude 
earthquakes they are carefully maintained and monitored during use 
taking advantage of its geographical location at our esperanza mine we have 
introduced “thickened tailings” technology this will reduce water consumption 
and the risk of soil contamination and mean that the tailings are more stable 
during operations and after the mine has closed it will also reduce dust levels 
at the los pelambres mine the mauro tailings dam is now operational 
which will provide enough waste disposal capacity for the remaining 
26 years’ mine life 
biodiversity 
the group recognises the importance of protecting local ecosystems and 
biodiversity biodiversity protection plans are developed for every mine in 
compliance with regulations and take into account the interests of different 
stakeholders including farmers and landowners local communities and 
nongovernmental organisations 
the group’s efforts to promote biodiversity focus in particular on the choapa 
valley where our los pelambres mine is located los pelambres restored and 
manages a nature sanctuary at the laguna conchalí wetlands which has 
signiﬁcant biological diversity it has also put in place programmes to protect 
peat lands and one of the few remaining chilean palm forests all these sites 
provide habitats for endangered species
in the antofagasta region operations are located in the atacama desert the 
driest desert in the world where there are very few animal and plant species 
in 2010 el tesoro ﬁnanced a survey of biodiversity around its fresh water 
source at ojos de opache this found that the area is home to one vulnerable 
species the atacama runner a type of lizard 
there were also two incidents one at esperanza and one at el tesoro involving 
foxes found drowned in evaporation pools the operations have improved 
fencing round the sites to prevent other animals getting in and reminded 
workers of the importance of taking steps to avoid attracting foxes to the area 
the group monitors marine and bird biodiversity at michilla bay and contributes 
to the protection of marine biodiversity and the development of sustainable 
ﬁshing through the fundación minera los pelambres charitable foundation
corporate sustainability continued strategic review other information financial statements governance financial review operational review
57 antofagasta plc annual report and financial statements 2010
assessing social and environmental impacts at reko diq
reko diq is a copper and gold deposit located in the state of balochistan in 
pakistan the group has been a joint venture partner in the project since 2006 
an environmental and social impact assessment “esia” has been undertaken 
for the site and will be presented to the balochi and pakistani environmental 
authorities in 2011 stakeholder engagement was a key part of this process 
and feedback covered issues such as water use employment and economic 
growth transportation air quality biodiversity and the impact of the pipeline 
on local agriculture
a social investment plan has been developed for the site which will form part 
of the social management process for the project and reﬂects the commitment 
of the joint venture partners to provide lasting beneﬁts to local communities 
see wwwtethyancom for more information
the group meets all ghs requirements its concentrates were evaluated 
under ghs and found not to be classiﬁable as they do not contain impurities 
clients and traders are provided with safety data sheets
other
the group reviewed its processes and updated them where necessary 
to ensure compliance with updates to chile’s environmental law 19300 
group companies are also preparing to meet proposed new standards 
on air quality 
making mining projects sustainable
since 2009 the group has been deﬁning the social and environmental 
criteria it uses when deciding whether to proceed with a new project and 
when developing the terms of reference and design criteria for new ventures 
this process was completed in 2010 and the criteria will be incorporated 
into amsa’s due diligence and project design processes in chile and abroad 
the criteria reﬂect current best practice and relevant international standards 
such as those of the international finance corporation and international 
council on mining and minerals
it also has a social and environmental best practices handbook for 
exploration and projects that includes guidance on stakeholder engagement 
the group focuses on stakeholder engagement from the start of new projects 
this enables understanding in local concerns and expectations and this is 
considered in the project design even before undertaking the ofﬁcial social 
and environmental assessment process
closure provisions
the group aims to close and decommission our facilities safely and in ways 
that protect the environment and the interests of local people it has closure 
plans and provisions in place for all its operations in accordance with 
regulations these are regularly updated often in consultation with local 
people the group includes closure plans within the environmental impact 
assessment reports submitted to authorities for all new projects it is 
contributing to development of the new law on mining closure being 
discussed by the chilean congress and will comply with its requirements
developments in environmental law
reach
the european union’s reach directive requires companies to collect or 
generate toxicity data on chemicals manufactured in or imported into the eu
antofagasta’s molybdenum and copper products are covered by reach 
the group met the november 2010 registration deadline for its michilla and 
tesoro sites copper concentrates do not need to be registered under reach 
but must undergo a toxicity and danger evaluation the ﬁndings of this 
evaluation showed that no special measures are needed to ensure the 
compliance of copper concentrates from los pelambres 
global harmonising system
the global harmonising system “ghs” is intended to create an internationally 
consistent system of chemical hazard management and reporting through 
standard product labelling and safety data sheets financial review
financial 
review
58 antofagasta plc annual report and financial statements 2010 strategic review other information financial statements governance financial review operational review
59 antofagasta plc annual report and financial statements 2010
review of 
performance
 page 60
cash flows
 page 65
balance sheet
 page 66 financial review
60 antofagasta plc annual report and financial statements 2010
financial review
basis of preparation
the group’s ﬁnancial statements on pages 88 to 128 have been prepared 
in accordance with international financial reporting standards “ifrs” 
the accounting policies followed are set out in note 2 to the ﬁnancial statements 
the presentation currency of the group and the functional currency of the 
company is the us dollar the principal currency in which the group operates 
and in which assets and liabilities are denominated
review of performance
a detailed segmental analysis of the components of the income statement is 
contained in note 6 to the ﬁnancial statements
turnover
year ended 
311210 
usm
year ended 
311209 
usm
turnover 45771 29626 
group turnover in 2010 was us4577 1 million 545 above the 
us29626 million achieved in 2009 this mainly reﬂected increased sales 
at the mining division in respect of both copper and molybdenum and to a 
lesser extent also at the transport and water divisions
turnover from the mining division
turnover from copper concentrate and copper cathodes
turnover from copper concentrate and copper cathode sales from the 
group’s three mines which were operational in 2010 increased by 57 1 
to us39538 million compared with us25161 million in 2009 
the increase mainly reﬂected the impact of higher realised prices as 
well as higher copper volumes 
i realised copper prices
the group’s average realised copper price increased by 328 to 3593 cents 
per pound 2009 – 2706 cents reﬂecting the higher average lme copper 
price which increased by 460 to 3420 cents per pound 2009 – 
2342 cents as well as positive adjustments to provisionally priced sales 
which were partially offset by the impact of realised hedging losses 
realised copper prices are determined by comparing turnover gross of tolling 
charges for concentrate sales with sales volumes in the year realised copper 
prices differ from market prices mainly because in line with industry practice 
concentrate and cathode sales agreements generally provide for provisional 
pricing at the time of shipment with ﬁnal pricing based on the average market 
price for future periods normally about 30 days after delivery to the customer 
in the case of cathode sales and up to 120 days after delivery to the customer 
in the case of concentrate sales realised copper prices also reﬂect the impact 
of realised losses or gains of commodity derivative instruments hedge 
accounted for in accordance with ias 39 “financial instruments recognition 
and measurements”
in 2010 there were signiﬁcant positive marktomarket adjustments to 
provisionally invoiced sales as a result of the signiﬁcant increase in the lme 
copper price during the year in the case of los pelambres pricing adjustments 
increased initially invoiced sales before adjusting for tolling charges by 
us2801 million in 2010 compared with a us3803 million increase of sales 
in 2009 the adjustments in 2010 comprised a deduction of us64 million 
in respect of sales invoiced in 2009 net of the reversal of marktomarket 
adjustments made at the end of 2009 which were ﬁnally priced in 2010 and 
an uplift of us2865 million in respect of sales invoiced in 2010 including 
a positive marktomarket provision for open sales at the end of the year of 
us1243 million pricing adjustments in 2010 at el tesoro and michilla 
increased revenues by us17 4 million 2009 – increased revenues by 
us311 million and us60 million 2009 – increased revenues by 
us118 million respectively further details of provisional pricing 
adjustments are given in note 25d to the ﬁnancial statements
in 2010 turnover also included a net loss of us814 million 2009 – loss 
of us658 million on commodity derivatives at el tesoro and michilla which 
matured during the year further details of hedging activity in the year are 
given in note 25e to the ﬁnancial statements
realised prices are analysed by mine in the operational review on pages 
26 to 33 the movement in the lme copper price during the year is described 
in the marketplace section on page 13 strategic review other information financial statements governance financial review operational review
61 antofagasta plc annual report and financial statements 2010
ii copper volumes
copper sales volumes increased by 165 from 442900 tonnes in 2009 to 
516000 tonnes this year sales volumes differed slightly from production each 
year mainly due to differences in shipping and loading schedules
production volumes are analysed by mine in the operational review on pages 
26 to 33 the increased production volumes in the year were mainly due to 
increased production at los pelambres reﬂecting higher throughput as a 
result of the plant expansion
iii tolling charges
tolling charges for copper concentrate at los pelambres increased marginally 
from us1251 million in 2009 to us1340 million in 2010 reﬂecting the 
increased production the decreased level of annual treatment and reﬁning 
charges in 2010 compared with 2009 have been largely offset by the “brick 
system” under which terms are often averaged over two years tolling charges 
are deducted from concentrate sales in reporting turnover and hence the 
increase in these charges has had a negative impact on turnover
turnover from molybdenum and other byproducts
turnover from byproducts at los pelambres which relate mainly to 
molybdenum increased by 683 to us3762 million in 2010 compared with 
us2235 million in 2009 mainly due to increased molybdenum realised and 
prices molybdenum revenues net of roasting charges were us3035 million 
2009 – us1801 million
i realised molybdenum prices
the realised molybdenum price increased by 434 to us162 per pound 
in 2010 2009 – us113 per pound compared to a 414 increase in the 
average market price to us157 per pound 2009 – us111 per pound 
molybdenum concentrate sales are also subject to provisional pricing with 
an average open period of up to approximately 90 days 
ii molybdenum volumes
molybdenum sales volumes increased by 156 to 8900 tonnes compared 
with 7 700 tonnes in 2009 small differences with production in each year 
reﬂected shipping and loading schedules
production volumes for los pelambres are analysed in the operational review 
on page 27 
iii gold and silver credits in copper concentrate sales
credits received from gold and silver contained in copper concentrate sold 
increased to us727 million 2009 – us434 million this was mainly due 
to the increase in gold content from 23500 ounces in 2009 to 35100 ounces 
in 2010 
turnover from the transport and water divisions
turnover from the transport division “fcab” increased by us153 million or 
110 to us1547 million mainly due to a 27 5 increase in road tonnages 
partly offset by a slight decrease in rail tonnages and normal tariff adjustments 
in line with contractual terms
turnover at aguas de antofagasta which operates the group’s water business 
increased by us88 million or 105 to us924 million in 2010 this was 
mainly due to increased demand from domestic clients and to a lesser extent 
to increased demand from industrial customers financial review
62 antofagasta plc annual report and financial statements 2010
financial review continued
ebitda and operating proﬁt from subsidiaries and joint ventures
year ended 
311210 
usm
year ended 
311209 
usm
ebitda 27719 16807 
depreciation and amortisation 2770 2175
loss on disposals 98 42
operating proﬁt from subsidiaries and joint ventures 
excluding exceptional items 24851 14590 
impairment reversal exceptional item 1094 – 
operating proﬁt from subsidiaries and joint ventures 
including exceptional items 25945 14590 
ebitda
ebitda earnings before interest tax depreciation and amortisation from 
subsidiaries and joint ventures increased by 649 to us27719 million 
2009 – us16807 million
ebitda at the mining division increased by 691 from us15639 million to 
us26451 million due to the increase in turnover as explained above partly 
offset by higher operating costs at los pelambres ebitda increased from 
us14089 million in 2009 to us23750 million this year ebitda at 
el tesoro increased by us1232 million to us3549 million at michilla 
ebitda increased by us327 million to us606 million 
excluding byproduct credits which are reported as part of turnover and tolling 
charges for concentrates which are deducted from turnover weighted average 
cash costs for the group comprising onsite and shipping costs in the case of 
los pelambres and cash costs in the case of the other two operations increased 
from 1068 cents per pound in 2009 to 1243 cents per pound this increase 
was mainly due to increased onsite and shipping costs as a result of higher 
input costs in particular energy and the effect of the stronger chilean peso 
across the three mining operations as well as the effect of the temporary 
suspension of the tesoro northeast pit and increased maintenance at 
los pelambres cash costs are analysed by mine in the operational review 
on pages 24 to 57 
operating costs at los pelambres include a oneoff us652 million charge 
relating to the increase in the closure provision following an updated assessment 
during 2010 by external consultants with the provision increasing due to factors 
including increases in the scale of the operation updated cost assumptions 
and an acceleration of the timing of certain closure activities relating to the 
quillayes tailings dam
exploration costs increased from us67 1 million in 2009 to us990 million 
reﬂecting the increased level of exploration activity across the group net costs 
in respect of corporate and other items were higher at us464 million 2009 
– us37 5 million mainly as a result of the increased level of costs associated 
with supporting the group’s longerterm growth plans at the corporate centre 
ebitda at the transport division increased by us32 million to us598 million 
with the increased revenue as explained above partly offset by increased 
operating costs aguas de antofagasta contributed us67 0 million compared to 
us602 million last year mainly reﬂecting the increased volumes and revenue 
as explained above which were partly offset by increased operating costs 
depreciation amortisation and impairments
depreciation and amortisation increased by us595 million to us277 0 million 
in 2010 mainly due to higher charges at los pelambres as a result of 
depreciation relating to the expansion and el tesoro as a result of depreciation 
relating to tesoro northeast and amortisation of the related mining licences 
the loss on disposal of property plant and equipment in 2010 was 
us98 million compared with us42 million in the prior year 
during 2010 the reversal of the remaining us1094 million impairment 
originally recognised at el tesoro in the year ended 31 december 2008 
has been recorded as an exceptional credit within total operating costs 
following a review undertaken in light of the current commodity environment 
the recoverable amounts in the review were determined by a value in use 
calculation prepared using management’s forecasts as to future commodity 
prices operating costs and production volumes the present value of the 
forecast future cash ﬂows was calculated using a discount rate of 7 6
operating proﬁt from subsidiaries and joint ventures
as a result of the above factors operating proﬁt from subsidiaries and 
joint ventures excluding the 2010 exceptional item increased by 703 to 
us24851 million including the 2010 exceptional item operating proﬁt from 
subsidiaries and joint ventures increased by 77 8 to us25945 million
share of net lossincome from associates
year ended 
311210 
usm
year ended 
311209 
usm
share of net lossincome from associate 26 45 
the group’s share of net loss from its associates was us26 million 2009 – 
net income of us45 million comprised of a net loss of us20 million 2009 
– net proﬁt of us32 million from its 40 interest in inversiones hornitos 
a net proﬁt of us19 million 2009 – net proﬁt of us15 million from its 
30 interest in ati and a net loss of us25 million 2009 – net loss of 
us02 million from its 17 8 interest in sunridge which was sold at the 
end of the year strategic review other information financial statements governance financial review operational review
63 antofagasta plc annual report and financial statements 2010
net ﬁnance expense
year ended 
311210 
usm
year ended 
311209 
usm
investment income 165 132 
interest expense 183 240
other ﬁnance items 169 151
net ﬁnance expense 187 259
net ﬁnance expense in 2010 was us187 million compared with a net ﬁnance 
expense of us259 million in 2009
interest receivable increased from us132 million in 2009 to us165 million 
in 2010 reﬂecting the higher cash and liquid investment balances held during 
the year
interest expense decreased from us240 million in 2009 to us183 million 
in 2010 mainly due to a reduction in borrowings at los pelambres in 2010 
compared to 2009 
other ﬁnance items comprised a loss of us169 million 2009 – loss of 
us151 million a loss of us161 million 2009 – loss of us11 million has 
been recognised in respect of the time value element of changes in the fair value 
of commodity derivative options which is excluded from the designated hedging 
relationship and is therefore recognised directly in the income statement 
foreign exchange gains included in ﬁnance items were us96 million in 2010 
compared with a gain of us12 million in the previous year a loss on foreign 
exchange derivatives of us61 million 2009 – loss of us124 million is also 
included in other ﬁnance items an expense of us43 million 2009 – 
us28 million has been recognised in relation to the unwinding of the 
discount on provisions 
proﬁt before tax
the resulting proﬁt before tax for the period was us25732 million compared 
to us1437 6 million in 2009 reﬂecting the increase in turnover explained 
above partly offset by the increase in operating costs
income tax expense
year ended 
311210 
usm
year ended 
311209 
usm
total tax charge income tax expense 7525 3177
the rate of ﬁrst category ie corporation tax in chile was 17 for both 2010 
and 2009 
los pelambres el tesoro michilla and esperanza are also subject to a mining 
tax royalty which is tax deductible ie an allowable expense in determining 
liability to ﬁrst category tax on 12 january 2011 these four companies which 
have tax invariability agreements to the mining tax voluntarily elected to accept 
amendments as permitted pursuant to a law enacted in chile on 21 october 
2010 between 2010 and 2012 production from los pelambres el tesoro 
michilla and esperanza mines is subject to a mining tax at a rate of between 
4–9 of taxadjusted operating proﬁt based on a sliding scale with the 
minimum rate of 4 applying to operations with a taxadjusted operating proﬁt 
margin of below 40 and a maximum rate of 9 applying to operations with a 
taxadjusted operating proﬁt margin of above 75 production from the tesoro 
northeast deposit and the runofmine  processing at el tesoro is subject to a 
mining tax at a rate of between 5–14 of taxadjusted operating proﬁt based 
on a sliding scale with the minimum rate of 5 applying to operations with a 
taxadjusted operating proﬁt margin of below 35 and a maximum rate of 14 
applying to operations with a taxadjusted operating proﬁt margin of above 85 
in addition to ﬁrst category tax and the mining tax the group incurs withholding 
taxes on the remittance of proﬁts from chilean operations and deferred tax is 
provided on undistributed earnings to the extent that remittance is probable in 
the foreseeable future withholding tax is levied on remittances of proﬁts from 
chile at 35 less ﬁrst category tax already paid accordingly during the year 
ended 31 december 2010 the effective tax rate of withholding tax is 
approximately 18 of the amount remitted or expected to be remitted
the tax charge for the year was us7525 million and the effective tax rate was 
292 this rate varies from the standard rate principally due to the provision 
of withholding tax of us1609 million and the effect of the mining tax which 
resulted in a charge of us157 7 million in 2009 the total tax charge was 
us317 7 million and the effective tax rate was 221 this rate varied from 
the standard rate principally due to the provision of withholding tax of 
us281 million the effect of the mining tax which resulted in a charge 
of us551 million exchange gains of us183 million on chilean peso 
denominated tax prepayments due to the strengthening of the chilean 
peso during the year
noncontrolling interests
year ended 
311210 
usm
year ended 
311209 
usm
noncontrolling interests 7689 4522 
proﬁt for the ﬁnancial year attributable to noncontrolling interest shareholders 
was us7689 million compared with us4522 million in 2009 the increase 
is mainly due to the effect of the increased group proﬁt in 2010 in comparison 
to 2009 financial review
64 antofagasta plc annual report and financial statements 2010
financial review continued
earnings per share
year ended 
311210 
usm
year ended 
311209 
usm
earnings per share including exceptional items 1067 677 
earnings per share excluding exceptional items 1006 677 
earnings per share calculations are based on 985856695 ordinary shares 
as a result of the factors set out above proﬁt for the 2010 ﬁnancial year 
attributable to equity shareholders of the company was us10518 million 
compared with us667 7 million in 2009 accordingly basic earnings per share 
were 1067 cents in 2010 compared with 67 7 cents for 2009 basic earnings 
per share excluding exceptional items detailed in note 5 of the ﬁnancial 
statements were 1006 cents for 2010 during 2009 there were no 
exceptional items 
dividends
the board has recommended a ﬁnal dividend for 2010 of 112 cents per ordinary 
share which amounts to us11042 million and if approved at the annual 
general meeting will be paid on 9 june 2011 to shareholders on the register 
at the close of business on 6 may 2011 this ﬁnal dividend comprises an 
ordinary dividend of 12 cents and a special dividend of 100 cents 
this gives total dividends for the year of 116 cents including the interim dividend 
of 4 cents which was paid in october amounting to us11436 million and 
representing a distribution of 109 of 2010 net earnings 
the board’s policy is to establish an ordinary dividend which can be maintained 
or progressively increased at conservative longterm copper prices and through 
the economic cycle in addition the board recommends special dividends when 
it considers these appropriate after taking into account the level of proﬁts earned 
in the period under review the existing cash position of the group and signiﬁcant 
known or expected funding commitments
as explained above in determining the appropriate level of the special 
dividend of 100 cents per share for 2010 the board has taken into account 
the successful completion of the key growth projects the strong ﬁnancial 
position of the group and its continued ability to fund future growth 
accordingly the 2010 distribution level is signiﬁcantly in excess of the 
typical distribution level in recent years 
the board’s overall policy remains unchanged and the level of distribution in 
future years including any special or additional dividends will depend on the 
factors set out above
2010 
us cents
2009 
us cents
2008  
us cents
2007  
us cents
10 v 09 
change
09 v 08 
change
08 v 07 
change
ordinary
interim
final
40
120
34
60
34
56
32
54
160 94 90 86 702 44 47
special
interim
final
–
1000
–
140
30
480
30
380
1000 140 510 410
total dividends to ordinary shareholders 1160 234 600 496 3957 610 210
dividends as a percentage of proﬁt attributable 
to equity shareholders 109 35 35 35
dividends represent dividends proposed in relation to the year 
capital expenditure
details of capital expenditure during the year are set out in the cash ﬂow summary on pages 65 and 66 strategic review other information financial statements governance financial review operational review
65 antofagasta plc annual report and financial statements 2010
derivative ﬁnancial instruments
the group periodically uses derivative ﬁnancial instruments to reduce exposure 
to commodity price movements the group does not use such derivative 
instruments for speculative trading purposes the impact of derivative 
instruments on the group’s results for the period is set out on pages 60 and 61 
in the sections on turnover operating proﬁt from subsidiaries and net ﬁnance 
income and in note 25e to these ﬁnancial statements 
the group has applied the hedge accounting provisions of ias 39 “financial 
instruments recognition and measurement” to its commodity derivatives 
changes in the fair value of derivative ﬁnancial instruments that are designated 
and effective as hedges of future cash ﬂows have been recognised directly in 
equity with such amounts subsequently recognised in the income statement in 
the period when the hedged item affects proﬁt or loss any ineffective portion is 
recognised immediately in the income statement realised gains and losses on 
commodity derivatives recognised in the income statement have been recorded 
within turnover the time value element of changes in the fair value of derivative 
options is excluded from the designated hedging relationship and is therefore 
recognised directly in the income statement within other ﬁnance items
at 31 december 2010 the group had minmax instruments for 58575 tonnes 
of copper production at michilla covering a total period up to 31 december 2012 
the weighted average remaining period covered by the minmax hedges 
calculated with effect from 1 january 2010 was 127 months the instruments 
had a weighted average ﬂoor of 3111 cents per pound and a weighted average 
cap of 3922 cents per pound this represents approximately 80 of michilla’s 
forecast production for 2011 and 2012 respectively and the group’s exposure 
to the copper price will be limited by the extent of these instruments 
details of the marktomarket position of these instruments at 31 december 
2010 together with details of any interest and exchange derivatives held by 
the group are given in note 25e to the ﬁnancial statements 
the group periodically uses foreign exchange derivatives to reduce its exposure 
to ﬂuctuations in the fair value of nonus dollar denominated assets or liabilities 
at 31 december 2010 the group had crosscurrency swaps with a principal 
value of us100 million relating to esperanza to swap chilean pesos for us 
dollars at an average rate of ch5503us1 covering a total period up to 
6 january 2011 the weighted average remaining period covered by these 
hedges calculated with effect from 1 january 2011 is 10 months between 
31 december 2010 and 31 january 2011 us100 million of crosscurrency 
swaps matured 
the group also periodically uses interest rate swaps to swap the ﬂoating rate 
interest for ﬁxed rate interest at 31 december 2010 the group had entered into 
contracts in relation to the esperanza ﬁnancing for a maximum notional amount 
of us787 8 million at a weighted average ﬁxed rate of 1353 maturing in 
february 2011 and a maximum notional amount of us8400 million at a 
weighted average ﬁxed rate of 3372 maturing in february 2018 
commodity price sensitivities
based on 2010 production volumes and without taking into account the effects 
of provisional pricing and any hedging activity a 10 cent change in the average 
copper price would affect turnover and proﬁt before tax by us1149 million and 
earnings per share by 56 cents similarly a onedollar change in the average 
molybdenum price would affect turnover and proﬁt before tax by us194 million 
and earnings per share by 09 cents
cash ﬂows
the group cash ﬂow statement is presented on page 91 the key features are 
summarised in the following table 
year ended 
311210 
usm
year ended 
311209 
usm
cash ﬂows from operations 24339 11678 
income tax paid 4279 1352
net interest paid 162 112
acquisition of noncontrolling interest in subsidiary  – 250
acquisition of associates and  
subsequent capital contributions – 1145
acquisition of available forsaleinvestments 129 – 
purchases of property plant and equipment 13018 13236
purchases of intangible assets – 525
dividends paid to equity holders of the company 2366 5619
dividends paid to noncontrolling interests 7027 3100
other items 41 05 
changes in net cash relating to cash ﬂows 2601 13656
exchange and other noncash movements 95 422 
movement in net cash in the year 2506 13234
net cash at the beginning of the year 15957 29191 
net cash at the end of the year  
analysed on page 66 13451 15957 
cash ﬂows from operations were us24339 million in 2010 compared with 
us1167 8 million last year reﬂecting the operating results adjusted for 
depreciation amortisation impairments and gains and losses on disposals of 
us2868 million 2009 – us2217 million and a net working capital increase 
of us3380 million 2009 – increase of us5129 million the signiﬁcant 
working capital movements relate mainly to an increase in trade debtors as a 
result of copper prices and provisional pricing marktomarket adjustments at 
the end of each year and to a lesser extent increased inventory levels with the 
startup of esperanza partly offset by an increase in closure provisions as well 
as creditors mainly as a result of increased tax liabilities financial review
66 antofagasta plc annual report and financial statements 2010
financial review continued
cash tax payments in the year were us427 9 million 2009 – us1352 
million comprising corporation tax of us3060 million 2009 – us950 
million mining tax of us747 million 2009 – us401 million and withholding 
tax of us47 2 million 2009 – us01 million these amounts differ from the 
current tax charge in the consolidated income statement of us6315 million 
2009 – us1851 million because cash tax payments partly comprise lower 
monthly payments on account in respect of current year proﬁts and partly 
comprise the settlement of the outstanding balance for the previous year
the purchase of availableforsale investments of us129 million relates to 
the purchase of shares in duluth metals limited 
cash disbursements relating to capital expenditure in 2010 were us13018 
million compared with us13236 million in 2009 this included expenditure of 
us10586 million relating to the esperanza project 2009 – us7164 million 
and us1343 million 2009 – us3994 million relating to the plant expansion 
at los pelambres 
dividends including special dividends paid to ordinary shareholders of the 
company this year were us2366 million 2009 – us5619 million which 
related to the ﬁnal dividend declared in respect of the previous year and the 
interim dividend in respect of the current year and reﬂected the decreased 
dividend per share paid out during 2010 compared with 2009 dividends paid 
by subsidiaries to noncontrolling shareholders were us7027 million 2009 – 
us3100 million principally due to increased distributions by los pelambres
details of other cash inﬂows and outﬂows in the year are contained in the 
consolidated cash flow statement
financial position
year ended 
311210 
usm
year ended 
311209 
usm
cash cash equivalents and liquid investments 35416 32223 
total borrowings 21965 16266
net cash at the end of the year 13451 15957 
at 31 december 2010 the group had combined cash cash equivalents and 
liquid investments of us35416 million 2009 – us32223 million 
excluding the noncontrolling interest share in each partlyowned operation 
the group’s attributable share of cash cash equivalents and liquid investments 
was us33938 million 2009 – us29343 million 
new borrowings in the year amounted to us10220 million 2009 – 
us20516 million mainly due to drawdowns from the esperanza project 
ﬁnance facility and new corporate loans at los pelambres and el tesoro and an 
increase of subordinated debt provided to esperanza by marubeni repayments 
of borrowings and ﬁnance leasing obligations in the year were us4598 million 
relating mainly to repayment of the los pelambres shortterm borrowings and to 
a lesser extent regular repayments on existing loans 2009 – us8745 million 
mainly relating to repayment of shortterm borrowings
total group borrowings at 31 december 2010 were us21965 million 2009 
– us16266 million of this us14868 million 2009 – us1067 6 million 
is proportionally attributable to the group after excluding the noncontrolling 
interest shareholdings in partlyowned operations 
balance sheet
net equity ie equity attributable to ordinary shareholders of the company 
increased from us53386 million at 1 january 2010 to us61706 million 
at 31 december 2010 relating mainly to proﬁt after tax and noncontrolling 
interests for the period less ordinary dividends declared and paid in the year 
other changes relate mainly to movements in the fair value of hedges and 
availableforsale investments and the currency translation adjustment 
these are set out in the consolidated statement of changes in equity 
noncontrolling interests increased from us12788 million at 1 january 2010 
to us13552 million at 31 december 2010 this principally reﬂected the 
noncontrolling interest’s share of proﬁt after tax less the noncontrolling 
interest’s share of the dividends paid by subsidiaries in the year other 
movements affecting noncontrolling interest are also set out in the 
consolidated statement of changes in equity
longterm provisions increased from us127 9 million at 31 december 2009 to 
us2444 million at 31 december 2010 during the year ended 31 december 
2010 there has been a oneoff charge of us652 million to operating proﬁt 
in relation to increases to the rehabilitation provision and us444 million 
capitalised in relation to the decommissioning provision at los pelambres 
following an updated independent review and which reﬂects changes to 
the assumptions relating to the provision strategic review other information financial statements governance financial review operational review
67 antofagasta plc annual report and financial statements 2010
foreign currency exchange differences
the principal subsidiaries with a functional currency other than the us dollar 
are chilean peso denominated of which the most signiﬁcant is aguas de 
antofagasta sa exchange rates used to translate the results of such 
subsidiaries are given in note 36 to the ﬁnancial statements 
in 2010 the currency translation gain recognised in net equity of us27 1 million 
resulted mainly from the strengthening in the chilean peso during the year from 
ch507  us1 at the start of 2010 to ch468  us1 at the end of 2010 
in 2009 the currency translation gain recognised in net equity of us461 million 
resulted mainly from the strengthening in the chilean peso during the year from 
ch636  us1 at the start of 2009 to ch507  us1 at the end of 2009
going concern
the group’s business activities together with those factors likely to affect its 
future performance are set out in the operational review on pages 24 to 45 
details of the cash ﬂows of the group during the year along with its ﬁnancial 
position at the year end are set out in this financial review the ﬁnancial 
statements include details of the group’s cash cash equivalent and liquid 
investment balances in note 22 and details of borrowings are set out in 
note 23 details of the group’s ﬁnancial risk management including details 
of the management of liquidity and counterparty risk are set out in note 25c 
to the ﬁnancial statements
in assessing the group’s going concern status the directors have taken into 
account the above factors including the ﬁnancial position of the group and in 
particular its signiﬁcant balance of cash cash equivalents and liquid investments 
the borrowing facilities in place and their terms the current copper price and 
market expectations in the medium term the group’s expected operating cost 
proﬁle and its capital expenditure and ﬁnancing plans 
after making appropriate enquiries the directors consider that the company 
and the group have adequate resources to continue in operational existence for 
the foreseeable future and that it is appropriate to adopt the going concern basis 
in preparing the ﬁnancial statements 
cautionary statement about forwardlooking statements
the financial statements contain certain forwardlooking statements with 
respect to the ﬁnancial position results of operations and business of the group 
examples of forwardlooking statements include those regarding ore reserve 
and mineral resource estimates anticipated production or construction 
commencement dates costs outputs demand trends in commodity prices 
growth opportunities and productive lives of assets or similar factors the words 
“intend” “aim” “project” “anticipate” “estimate” “plan” “believe” “expect” 
“may” “should” “will” “continue” or similar expressions commonly identify 
such forwardlooking statements 
forwardlooking statements involve known and unknown risks uncertainties 
assumptions and other factors that are beyond the group’s control for example 
future ore reserves will be based in part on longterm price assumptions that 
may vary signiﬁcantly from current levels these may materially affect the timing 
and feasibility of particular developments other factors include the ability to 
produce and transport products proﬁtably demand for products the effect of 
foreign currency exchange rates on market prices and operating costs activities 
by governmental authorities such as changes in taxation or regulation and 
political uncertainty 
given these risks uncertainties and assumptions actual results could be 
materially different from any future results expressed or implied by these 
forwardlooking statements which speak only as at the date of this report 
except as required by applicable regulations or by law the group does not 
undertake any obligation to publicly update or revise any forwardlooking 
statements whether as a result of new information or future events the group 
cannot guarantee that its forwardlooking statements will not differ materially 
from actual results  governance
governance
68 antofagasta plc annual report and financial statements 2010 strategic review other information financial statements governance financial review operational review
69 antofagasta plc annual report and financial statements 2010
board of directors
 page 70
directors’ report
 page 72
corporate 
governance report
 page 76
remuneration  
report
 page 81 governance
70 antofagasta plc annual report and financial statements 2010
jp luksic chairman
mr jp luksic is executive chairman he was appointed a director in 1990 and deputy 
chairman in 2000 he holds a bsc degree in management and science from the london 
school of economics he was also chief executive ofﬁcer of antofagasta minerals sa 
until his appointment as chairman of the group in 2004 he is a nonexecutive director of 
quiñenco sa he is vicechairman of the consejo minero the industry body representing 
the largest international mining companies operating in chile mr jp luksic will be 47 
at the date of the 2011 annual general meeting
c h bailey nonexecutive
mr c h bailey was appointed a nonexecutive director in 1987 and is the senior 
independent nonexecutive director mr bailey is a chartered accountant and 
a director of general oriental investment limited mr bailey will be 77 at the date 
of the 2011 annual general meeting
g s menéndez nonexecutive
mr g s menéndez was appointed a nonexecutive director in 1985 he holds a degree 
in business administration from the universidad de chile and is a public accountant 
he is a director of quiñenco sa and banco de chile and is chairman of the board of 
directors of banco latinoamericano de comercio exterior sa bladex he is also the 
vicechairman of fundación andrónico luksic a and fundación pascual baburizza both 
of which are charitable foundations in chile mr menéndez will be 62 at the date of the 
2011 annual general meeting
r f jara nonexecutive
mr r f jara was appointed a nonexecutive director in 2003 he is a lawyer and a director 
of empresa nacional del petróleo he is chairman of the fundación minera los pelambres 
and a director of fundación andrónico luksic a and fundación pascual baburizza all 
of which are charitable foundations in chile mr jara will be 58 at the date of the 2011 
annual general meeting
g a luksic nonexecutive
mr g a luksic was appointed a nonexecutive director in 2005 mr luksic is a director of 
several companies including nexans sa and banco de chile and chairman of quiñenco sa 
compañía cervecerías unidas sa vina san pedro tarapaca sa and madeco sa 
mr g a luksic will be 55 at the date of the 2011 annual general meeting
j g claro nonexecutive
mr j g claro was appointed a nonexecutive director in 2005 he is currently chairman of 
embotelladora andina sa and energia coyanco sa he is a director of several other companies 
in chile including entel chile sa and empresas cmpc sa he is also a member of the governing 
boards of universidad adolfo ibáñez and centro de estudios públicos a nonproﬁt academic 
foundation in chile he is a former chairman of the sociedad de fomento fabril chilean society 
of industrialists the confederación de la producción y del comercio confederation of chilean 
business and the consejo binacional de negocios chilechina council for bilateral business 
chilechina mr claro will be 60 at the date of the 2011 annual general meeting
w m hayes nonexecutive
mr w m hayes was appointed a nonexecutive director in 2006 he is a director of royal 
gold inc he was previously a senior executive with placer dome inc from 1988 to 2006 
mr hayes is a former president of the consejo minero the industry body representing the 
largest international mining companies operating in chile and former president of the gold 
institute in washington dc he holds an ma degree in international management from 
the thunderbird school of global management mr hayes will be 66 at the date of the 2011 
annual general meeting
h dryland nonexecutive
mr h dryland was appointed a nonexecutive director subsequent to the year end on 
20 january 2011 he is a senior managing director at rothschild based in the united states and 
is global head of rothschild’s investment banking activities in the mining and metals sector 
he has 25 years of investment banking experience in natural resources advising on numerous 
mergers and acquisitions restructurings and ﬁnancings during his career prior to joining 
rothschild in 1986 he practised law in the united states specialising in corporate ma joint 
ventures and ﬁnancings in the natural resources and infrastructure sectors and prior to that 
worked in the energy division of the world bank he holds masters degrees in business and 
comparative law from the university of warwick uk and the george washington university 
us respectively mr dryland will be 55 at the date of the 2011 annual general meeting
t c baker nonexecutive
mr t c baker was appointed a nonexecutive director subsequent to the year end on 1 march 
2011 he was previously executive vicepresident and chief operating ofﬁcer at kinross 
gold corporation and is a member of the board of augusta resource corporation he has a 
bsc in geology from edinburgh university prior to joining kinross gold corporation in 2006 
mr baker was executive general manager of placer dome chile he has previously managed 
mining operations in chile the united states tanzania and venezuela and held geological 
and production roles in kenya and liberia mr baker will be 59 at the date of the 2011 
annual general meeting
the board of directors strategic review other information financial statements governance financial review operational review
71 antofagasta plc annual report and financial statements 2010 governance
72 antofagasta plc annual report and financial statements 2010
directors’ report
the directors present their annual report together with the audited ﬁnancial 
statements for the year ended 31 december 2010
principal group activities
the principal activities of the group are copper mining including exploration and 
development the transportation of freight by rail and road and the distribution 
of water these activities are mainly based in chile the company’s principal 
activity is to act as a holding company group operations are carried out through 
subsidiaries associates and joint ventures the principal subsidiaries associates 
and joint ventures that make up the group are set out in notes 16 to 18 to the 
ﬁnancial statements one subsidiary the antofagasta railway company plc 
has a branch in chile known as the fcab which provides rail freight services
business review
the company is required by section 417 of the companies act 2006 to provide 
a business review in this report the requirements of the business review are 
fulﬁlled in the disclosures contained within the chairman’s statement on pages 
4 to 7  the marketplace section on pages 12 to 15 the operational review 
including information on expected future developments on pages 24 to 57  the 
financial review on pages 60 to 67 and the corporate governance report on 
pages 76 to 80 a summary of the key performance indicators considered most 
relevant to the group is on pages 16 and 17  information on environmental 
employee and social and community matters is included within the corporate 
sustainability section on pages 46 to 57  information on signiﬁcant contractual 
and other arrangements which are essential to the business of the group is 
included within this directors’ report on pages 72 and 73 a description of the 
ﬁnancial risk management objectives and policies of the group together with 
the principal risks and uncertainties facing the group is contained in the risk 
management section on pages 18 to 21 and in note 25c to the ﬁnancial 
statements signiﬁcant events since the balance sheet date requiring disclosure 
are set out in note 39 to the ﬁnancial statements all the above matters are 
incorporated into this report by reference
value of land
land included within property plant and equipment in the ﬁnancial statements 
is mainly held at cost it is not practicable to estimate the value of such land and 
mineral rights since these principally depend on product prices over the long 
term and will vary with market conditions land included in investment properties 
relates to forestry properties which the group maintains but does not use in any 
of its existing operations this land is held for longterm real estate development 
and recreational potential and is held in the ﬁnancial statements at cost the fair 
value of such land is disclosed in note 15 to the ﬁnancial statements
results and dividends
the consolidated proﬁt before tax has increased from us1437 6 million in 
2009 to us25732 million in 2010 
the board has recommended a ﬁnal dividend of us 1120 cents 2009 – us 
200 cents per ordinary share comprising an ordinary dividend of us 120 cents 
2009 – us 60 cents and a special dividend of us 1000 cents 2009 – us 
140 cents an ordinary interim dividend of us 40 cents was paid on 7 october 
2010 2009 ordinary dividend – us 34 cents this gives total dividends per 
share proposed in relation to 2010 of us 1160 cents 2009 – us 234 cents 
including the special dividend the total amount of dividends paid to ordinary 
shareholders including special dividends proposed in relation to 2010 will be 
us11436 million compared with us2307 million in 2009 
preference shares carry the right to a ﬁxed cumulative dividend of 5 per 
annum the preference shares are classiﬁed within borrowings and preference 
dividends are included within ﬁnance costs the total cost of dividends paid 
on preference shares and recognised as an expense in the income statement 
was us02 million 2009 – us02 million further information relating to 
dividends is set out in the financial review on page 64 and in note 12 to the 
ﬁnancial statements
directors
the directors who served during the year are set out on page 149 no director 
has a service contract with the company which cannot be terminated within 
12 months mr h dryland and mr t c baker were appointed nonexecutive 
directors subsequent to the year end on 20 january 2011 and 1 march 2011 
respectively mr d e yarur served as a nonexecutive director throughout 2010 
and resigned from the board subsequent to the year end on 1 march 2011
as recommended by the uk corporate governance code all directors are 
seeking reelection at the forthcoming annual general meeting biographical 
details of the directors are set out on page 70 the reasons why the board 
considers that these directors should be reelected are set out in the corporate 
governance report on pages 76 to 80 and in particular in the sections headed 
“performance evaluation” and “reelection”
directors’ interests
the interests of the persons including the interests of their families who were 
directors at the end of the year in the preference and ordinary share capital 
of the company are shown on page 82 strategic review other information financial statements governance financial review operational review
73 antofagasta plc annual report and financial statements 2010
directors’ indemnities and insurance
in accordance with the company’s articles of association and to the extent 
permitted by the laws of england and wales directors are granted an indemnity 
from the company in respect of liabilities personally incurred as a result of their 
ofﬁce in respect of those matters for which the directors may or may not be 
indemniﬁed the company maintained a directors’ and ofﬁcers’ liability 
insurance policy throughout the ﬁnancial year this policy has been renewed 
for the current ﬁnancial year 
conﬂicts of interest
the companies act 2006 requires that a director must avoid a situation where 
he has or can have a direct or indirect interest that conﬂicts or possibly may 
conﬂict with the company’s interests the company has undertaken a process 
to identify and where appropriate authorise and manage potential and actual 
conﬂicts each director of the company has identiﬁed his interests which may 
constitute conﬂicts including for example directorships in other companies 
the board has considered the potential and actual conﬂict situations of each of 
the directors and decided in relation to each situation whether to authorise it and 
the steps if any that need to be taken to manage it the authorisation process 
is not regarded as a substitute for managing an actual conﬂict of interest if one 
arises the monitoring and if appropriate authorisation of actual and potential 
conﬂicts of interest is an ongoing process directors are required to notify the 
company of any material changes in those positions or situations that have 
already been considered as well as to notify the company of any other new 
positions or situations that may arise in addition to considering any new 
situations as they arise the board considers the conﬂict position of all 
directors formally each year 
signiﬁcant relationships
the group has a number of signiﬁcant contractual or other arrangements which 
are essential to its operations and projects
–  the group holds a number of mining and exploration rights in chile and other 
countries in which it has exploration or development activities normally granted 
by the relevant national government
–  a signiﬁcant proportion of the group’s sales of copper concentrate and other 
payable elements and molybdenum concentrate are made under longterm 
framework agreements with a number of customers these framework 
contracts will typically set out the minimum annual volumes to be supplied 
with the processing charges determined annually and the pricing of contained 
material to be in accordance with market prices a signiﬁcant proportion 
of the group’s copper cathode sales are made under annual contracts with 
a number of customers these contracts will typically specify the volumes 
to be supplied with the pricing to be in accordance with market prices 
further details of such arrangements are given in note 25d to the 
ﬁnancial statements
–  there are collective labour agreements with each of the labour unions at the 
group’s mining operations these agreements are typically of between three 
and four years’ duration several of these labour unions are afﬁliated with the 
federación minera de chile
–  the group has contracts with a number of suppliers to subcontract 
certain services at each of its mine sites including vehicle and equipment 
maintenance and other logistical services in addition the group has a number 
of medium and longterm contracts for the supply of key inputs such as 
electricity sulphuric acid oil and explosives with a number of suppliers
–  tax invariability agreements are in place in respect of the group’s four 
mining operations – los pelambres esperanza el tesoro and michilla – 
which provide that set rates will apply in respect of the mining royalty for 
speciﬁed periods
–  in 2003 the group was awarded a 30year concession to operate the water 
rights and facilities in the antofagasta region of chile supplying domestic 
and industrial users the domestic tariffs are controlled by the chilean water 
regulator further details are given in note 35 to the ﬁnancial statements
–  the transport division has longterm contracts with a number of customers 
which typically govern volumes and pricing structures and
–  the group has shareholder agreements in place governing its relationship 
with its partners at its operations and development and exploration projects 
the group also has a number of “earnin” agreements in respect of exploration 
and development projects governance
74 antofagasta plc annual report and financial statements 2010
directors’ report continued
capital structure
details of the authorised and issued ordinary share capital including details of 
any movements in the issued share capital during the year are shown in note 29 
to the ﬁnancial statements the company has one class of ordinary shares 
which carry no right to ﬁxed income each ordinary share carries one vote at 
any general meeting of the company details of the preference share capital 
are shown in note 23 to the ﬁnancial statements the preference shares are 
nonredeemable and are entitled to a ﬁxed cumulative dividend of 5 per 
annum each preference share carries 100 votes on a poll at any general 
meeting of the company the nominal value of the issued ordinary share capital 
is 961 of the total sterling nominal value of all issued share capital and the 
nominal value of the issued preference share capital is 39 of the total sterling 
nominal value of all issued share capital
there are no speciﬁc restrictions on the transfer of shares or on their voting 
rights beyond those standard provisions set out in the company’s articles of 
association and other provisions of applicable law and regulation including 
in particular following a failure to provide the company with information about 
interests in shares as required by the companies act 2006 the company is 
not aware of any agreements between holders of the company’s shares that 
may result in restrictions on the transfer of securities or on voting rights 
details of signiﬁcant holdings in the company’s shares are set out in the 
“substantial shareholdings” section on page 75
the company has the authority to purchase up to 98585669 of its own 
ordinary shares representing 10 of the issued ordinary share capital 
with regard to the appointment and replacement of directors the company 
is governed by its articles of association the uk corporate governance code 
2010 the companies act 2006 and related legislation the articles of 
association may be amended by special resolution of the shareholders 
there are no signiﬁcant agreements in place which take effect alter or 
terminate upon a change of control of the company there are no agreements 
in place between the company and its directors or employees which provide 
for compensation for loss of ofﬁce resulting from a change of control of 
the company
donations
the group made charitable donations of us137 million during the year ended 
31 december 2010 2009 – us22 million the donations include amounts 
paid during 2010 from the us10 million recovery fund established by 
antofagasta minerals sa to support the earthquake reconstruction efforts 
in chile as described in more detail in the corporate sustainability section 
this also includes us53000 2009 – us32000 of charitable donations 
in the united kingdom principally related to educational studies with a focus on 
chile the group made political donations of us49000 during the year ended 
31 december 2010 in relation to presidential elections 2009 – us22 million 
in relation to chilean presidential and parliamentary elections these donations 
were made in accordance with the chilean legislation which governs the 
ﬁnancing of political parties and candidates in order to facilitate the democratic 
process of the country the donations were made via the chilean electoral 
management body which transfers funds to political parties and candidates
supplier payment policy and creditor days
the company acts as a holding company and does not trade in the united 
kingdom or elsewhere creditor days for the group have been calculated at 
32 days 2009 – 40 days each operating company is responsible for agreeing 
terms of payment with each of their suppliers it is group policy that payments 
to suppliers are made in accordance with agreed terms
environment
the group seeks to ensure that its operations and products cause minimal harm 
to the environment care is taken to limit discharges of environmentally harmful 
substances and to dispose of waste material in a safe manner contingency 
arrangements and plans exist to reduce the risk and limit the effect of any 
accidental spillage the group’s policy is that all its operations should comply 
fully with or exceed applicable chilean regulations further information regarding 
the group’s environmental performance and activities is given in the corporate 
sustainability section on pages 46 to 57  strategic review other information financial statements governance financial review operational review
75 antofagasta plc annual report and financial statements 2010
auditors
in the case of each of the persons who is a director at the date of approval 
of this annual report
–  so far as he is aware there is no relevant audit information of which the 
company’s auditors are unaware and
–  he has taken all steps that he ought to have taken as a director in order to 
make himself aware of any relevant audit information and to establish that 
the company’s auditors are aware of that information 
for these purposes “relevant audit information” means information needed by 
the company’s auditors in connection with preparing their report this statement 
is made and should be interpreted in accordance with the provisions of section 
418 of the companies act 2006
a resolution to reappoint deloitte llp as the company’s auditor will be 
proposed at the forthcoming annual general meeting
substantial shareholdings
as at the date of this report the following signiﬁcant holdings of voting rights 
in the share capital of the company have been disclosed to the company under 
disclosure and transparency rule 5
table of substantial  
shareholdings
ordinary share 
capital 

preference share 
capital 

total share 
capital  

metalinvest establishment 5072 9412 5804
kupferberg establishment 994 – 827
blackrock inc 510 – 424
aureberg establishment 426 – 354
metalinvest establishment and kupferberg establishment are both controlled by 
the e abaroa foundation in which members of the luksic family are interested 
as explained on page 128 metalinvest establishment is the immediate parent 
company of the group and the e abaroa foundation is the ultimate parent 
company aureberg establishment is controlled by mr jp luksic the chairman 
of the company 
annual general meeting
the annual general meeting of the company will be held from 1030 am on 
8 june 2011 at church house conference centre dean’s yard westminster 
london sw1p 3nz the notice of the meeting together with an explanation 
of the business to be dealt with at the meeting is included in a separate 
document sent to shareholders with this annual report
by order of the board
for and on behalf of 
petershill secretaries limited 
company secretary
7 march 2011 governance
76 antofagasta plc annual report and financial statements 2010
corporate governance report
introduction
the company is incorporated in england and listed on the london stock 
exchange with the group’s businesses which comprise mining transport 
and water distribution principally located in chile the largest copper producing 
country in the world the e abaroa foundation an entity in which members of 
the luksic family are interested controls 6066 of the ordinary share capital 
and 9412 of the preference share capital of the company through two 
investment vehicles metalinvest establishment and kupferberg establishment 
aureberg establishment which is controlled by antofagasta’s chairman 
mr jp luksic holds 426 of the ordinary share capital of the company as 
at the date of this report antofagasta’s board is committed to managing the 
operations of the group with a view to maximising value for all shareholders 
during 2010 the board had eight members comprising an executive chairman 
and seven nonexecutive directors two of these eight directors including the 
chairman are members of the luksic family six of these directors including 
the chairman are based in chile where the group’s operations are principally 
located one of these directors is based in england where the company is 
incorporated and listed on the london stock exchange and one of these 
directors is based in the united states 
subsequent to the year end two further directors were appointed to the board 
one of whom is based in the united states and one of whom is based in canada 
the daytoday operations of the group are carried on through the boards of 
each division of the group antofagasta minerals sa mining antofagasta 
railway company plc fcab – railway and other transport services and aguas 
de antofagasta sa water distribution the antofagasta board oversees these 
divisional boards and provides strategic direction each division is headed by a 
chief executive ofﬁcer who reports to his divisional board and the chairman of 
the group – marcelo awad for the mining division miguel sepúlveda at the 
transport business and marco kútulas in the water division antofagasta minerals 
sa has a team of senior executives who report to marcelo awad focusing on 
areas including operations strategy risk management human resources 
ﬁnance and business development exploration and mineral resources 
corporate affairs and project development
during the 2010 ﬁnancial year the combined code on corporate governance 
issued by the financial reporting council in june 2008 “the combined code” 
applied to the company the board describes below how it applied the corporate 
governance principles contained in the combined code during that year 
two areas where the company did not comply with the detailed combined code 
provisions are set out at the end of this report under the heading “statement 
of compliance with the detailed provisions of the combined code” the uk 
corporate governance code issued by the financial reporting council in june 
2010 will apply to the company from the 2011 ﬁnancial year and will be 
reported upon in the 2011 annual report and financial statements
directors
the board
the directors collectively have responsibility for the conduct of the group’s 
business the board which met eight times during 2010 was comprised of 
an executive chairman and seven nonexecutive directors ﬁve of whom are 
considered by the board to be independent subsequent to the year end two 
further directors were appointed to the board one is not considered by the 
board to be independent for the purposes of the uk corporate governance code 
while the other is considered by the board to be independent one director 
based in chile who was considered independent resigned after the end of 
the year
there is a schedule of matters speciﬁcally reserved for the board the board 
is responsible for
– providing leadership
– setting the group’s strategic objectives and key policies
–  ensuring that appropriate resources are in place to enable the group to 
meet its objectives
– reviewing the group’s performance and
– overseeing the group’s internal control systems
the chairman will always attempt to persuade the board to act as a single team 
by obtaining consensus at board meetings but in exceptional circumstances 
decisions may be taken by majority the agenda for board meetings are set 
by the chairman in consultation with the other directors
responsibility for developing and implementing the group’s strategic and 
ﬁnancial objectives is delegated to the senior management of the group 
accordingly the boards of antofagasta minerals sa mining the antofagasta 
railway company plc railway and other transport services and aguas de 
antofagasta sa water distribution meet regularly to consider strategic 
operational and risk management issues in more detail there is substantial 
overlap between membership of the board of antofagasta plc and these three 
divisional boards the chief executive ofﬁcer of each division reports to his 
divisional board and to the chairman of the group the board oversees these 
divisional boards and provides strategic direction the board is also responsible 
for reviewing the performance of management the nonexecutive directors 
scrutinise the performance of management in meeting goals and objectives 
and also monitor the reporting of performance through the activities of the 
remuneration committee and the audit committee
the directors of the company as at 7 march 2011 are set out on page 70 
mr d e yarur served as a nonexecutive director throughout 2010 and resigned 
from the board subsequent to the year end on 1 march 2011
the recognised senior independent nonexecutive director is mr c h bailey 
who is also chairman of the audit committee mr g s menéndez is chairman 
of the remuneration and nomination committees the board does not have 
a director formally designated as chief executive strategic review other information financial statements governance financial review operational review
77 antofagasta plc annual report and financial statements 2010
the role of the chairman
mr jp luksic is chairman of the board his role is that of a fulltime executive 
chairman and he has no other signiﬁcant commitments that prevent him from 
devoting sufﬁcient time to this role 
as explained above the group does not have a board member who is 
designated as chief executive mr marcelo awad is chief executive ofﬁcer of 
antofagasta minerals sa mr miguel sepúlveda is chief executive ofﬁcer of the 
antofagasta railway company plc and mr marco kútulas is the chief executive 
ofﬁcer of aguas de antofagasta sa the board believes that the company is 
not at risk from a concentration of power by mr jp luksic having executive 
responsibilities as chairman in reaching this conclusion it has taken into 
consideration the strong presence of nonexecutive directors on the board the 
structure of the audit remuneration nomination and sustainability committees 
designed to devolve away from the chairman responsibility and control of certain 
key areas of board responsibility and the delegation of management 
responsibility to the chief executive ofﬁcer of each division
board balance and independence
the board considers ﬁve of its seven nonexecutive directors who served during 
2010 to be independent – mr c h bailey mr g s menéndez mr d e yarur 
mr j g claro and mr w m hayes mr t c baker who was also appointed 
subsequent to the year end is considered independent the board is satisﬁed 
that this balance limits the scope for an individual or small group of individuals 
to dominate the board’s decisionmaking all directors will be standing for 
reelection at the forthcoming annual general meeting and biographical details 
of each director can be found on page 70 
mr claro mr hayes and mr baker meet the independence criteria set out 
in combined code provision a31 and the board is satisﬁed as to their 
independence the board is satisﬁed that mr bailey remains independent in 
character and judgement notwithstanding that he has served on the board for 
more than nine years since he does not receive any remuneration from the 
company other than nonexecutive directors’ fees nor does he have any other 
relationships with the company or its majority shareholder 
the board is also satisﬁed that mr menéndez remains independent in character 
and judgement notwithstanding that he has also served on the board for more 
than nine years and notwithstanding that he is a nonexecutive director of 
quiñenco sa a chileanlisted company also controlled by the luksic family 
and some of its subsidiaries including banco de chile this is because he does 
not receive any remuneration from the group other than in a nonexecutive 
capacity his position in the quiñenco group is also solely as a nonexecutive 
director the board considers that mr bailey’s and mr menéndez’s length of 
service is of considerable beneﬁt to the board given their wealth of knowledge 
and experience of the group and of latin america and of the mining industry 
and therefore proposes both for reelection 
the board does not consider mr r f jara or mr g a luksic who served during 
the year nor mr dryland who was appointed subsequent to the year end to be 
independent mr r f jara provides advisory services to the group as explained 
in the remuneration report on page 82 mr g a luksic is the brother of 
mr jp luksic the chairman of antofagasta plc mr g a luksic is chairman of 
quiñenco sa and chairman or a director of quiñenco’s other listed subsidiaries 
mr jp luksic and mr g s menéndez are also nonexecutive directors of 
quiñenco and some of its listed subsidiaries like antofagasta plc quiñenco 
is also controlled by the luksic family mr h dryland was appointed a non
executive director subsequent to the year end on 20 january 2011 the board 
does not consider mr h dryland to be independent as mr dryland has provided 
advisory services to the group in his capacity as a senior managing director at 
rothschild which remains a ﬁnancial advisor to the group 
appointments to the board
the nomination committee currently comprises mr g s menéndez chairman 
mr c h bailey and mr r f jara as explained above mr c h bailey and 
mr g s menéndez are considered by the board to be independent  
nonexecutive directors 
the nomination committee periodically reviews the composition of the board 
including the balance between executive and nonexecutive directors and 
considers succession planning for both executive and nonexecutive directors 
and the group’s senior management it is also responsible for the process for 
new board appointments and makes recommendations to the board on the 
appointment of new directors and is responsible for ensuring that appointments 
are made on merit and against objective criteria in fulﬁlling these responsibilities 
the nomination committee consults the chairman mr jp luksic 
the nomination committee meets as necessary and in any case at least once a 
year its terms of reference are available from the company’s registered ofﬁce 
and may be viewed on the company’s website – wwwantofagastacouk 
in making appointments to the board the nomination committee considers the 
skills experience and knowledge of the existing directors and assesses which of 
the potential candidates would most beneﬁt the board it considers the potential 
candidate’s knowledge and experience of chile the mining industry latin 
america capital markets and the regulatory environment and that they have 
sufﬁcient time to devote to the role the chairman ensures that any new 
directors are provided with a full induction on joining the board 
all nonexecutive directors have letters of appointment with the company for 
an initial period of three years from the date of their appointment subject to 
reappointment at the annual general meeting these letters require the 
nonexecutive directors to undertake that they will have sufﬁcient time to 
discharge their responsibilities the letters of appointment are available for 
inspection at the company’s registered ofﬁce during normal business hours and 
at the annual general meeting for 15 minutes prior to and during the meeting 
the company intends to comply with provision b7 of the uk corporate 
governance code from the 2011 ﬁnancial year and submit each director for 
annual reelection
information and professional development
the directors receive information for review ahead of each board or committee 
meeting in addition they receive regular reports and forecasts for the group and  governance
78 antofagasta plc annual report and financial statements 2010
corporate governance report continued
directors’ attendance at meetings in 2010
the number of board and committee meetings held during 2010 together with details of each director’s attendance is set out below
board audit committee nomination committee remuneration committee sustainability committee
number 
attended
maximum 
possible
number 
attended
maximum 
possible
number 
attended
maximum 
possible
number 
attended
maximum 
possible
number 
attended
maximum 
possible
jp luksic 8 8 –––––– 1 1
c h bailey 7 8 3 3 2 2 2 2 – –
g s menéndez 8 8 3 3 2 2 2 2 1 1
r f jara 8 8 – – 2 2 – – 1 1
d e yarur
1
 8823 – – 12 – –
g a luksic 2 8 – – – – – – – –
j g claro 8 8––––––––
w m hayes
1
7 8 ––––––––
1
 0n 29 november mr d e yarur retired from the remuneration committee and was replaced by mr w m hayes no meetings were held in 2010 since mr w m hayes joined the committee
all directors in ofﬁce at the time of the annual general meeting in june 2010 attended that meeting
each director withdrew from any meeting when his own position was being considered
reelection
all directors at the date of this report will stand for reelection at this year’s 
annual general meeting biographical details of all the directors are set out 
on page 70 the chairman conﬁrms that the board is satisﬁed that each of the 
directors continues to be effective and continues to demonstrate commitment 
to his role
remuneration
the membership of the remuneration committee a statement of the company’s 
policy on remuneration and the remuneration details and shareholding interests 
of each director are contained in the remuneration report on pages 81 to 83
accountability and audit
internal control
the board has applied principle c2 of the combined code by establishing a 
continuous process for identifying evaluating and managing the signiﬁcant risks 
the group faces the board regularly reviews the process which is an ongoing 
activity from the start of each ﬁnancial year to the date of approval of this report 
and which is in accordance with revised guidance on internal control published 
in october 2005 “the turnbull guidance” the board is responsible for the 
group’s system of internal control and for reviewing its effectiveness such a 
system is designed to manage rather than eliminate the risk of failure to achieve 
business objectives and can only provide reasonable and not absolute assurance 
against material misstatement or loss
in compliance with provision c21 of the combined code the board regularly 
reviews the effectiveness of the group’s system of internal control the board’s 
monitoring covers all controls including ﬁnancial operational and compliance 
controls and risk management it is based principally on reviewing reports from 
management to consider whether signiﬁcant risks are identiﬁed evaluated 
each signiﬁcant operation to ensure that they remain properly briefed about the 
performance and ﬁnancial position of the group throughout the year all directors 
have access to management and to such further information as is needed to 
carry out their duties and responsibilities fully and effectively furthermore all 
directors are entitled to seek independent professional advice concerning the 
affairs of the group at the company’s expense 
the company also provides directors with the necessary resources to develop 
and update their knowledge and capabilities in particular the directors are 
regularly updated on the group’s business the competitive and regulatory 
environment in which it operates and other changes affecting the group as a 
whole the directors based outside chile visit the country regularly and at least 
once a year and the directors based outside the united kingdom also regularly 
visit this country again normally at least once a year and normally attend the 
company’s annual general meeting held in london
group management in the united kingdom and chile is responsible for ensuring 
that board procedures and applicable rules and regulations are complied 
with and for advising the board through the chairman on all governance 
matters company secretarial services and advice are provided by petershill 
secretaries limited
performance evaluation
the board periodically considers its performance and effectiveness 
a performance evaluation of the board its committees and its individual 
members was conducted during 2010 by mr g s menéndez with the assistance 
of senior management mr c h bailey as the senior independent nonexecutive 
director was responsible for the evaluation of the chairman the results were 
discussed with the chairman and considered by the board and were taken into 
account in the decision to recommend for reelection all of the directors at the 
forthcoming annual general meeting the board is satisﬁed that each director 
continues to contribute effectively and to demonstrate commitment to his role strategic review other information financial statements governance financial review operational review
79 antofagasta plc annual report and financial statements 2010
managed and controlled and whether any signiﬁcant weaknesses are promptly 
remedied and indicate a need for more extensive monitoring the board has 
also performed a speciﬁc assessment for the purpose of this annual report 
this assessment considers all signiﬁcant aspects of internal control arising 
during the period covered by the report including the work of internal audit 
the audit committee assists the board in discharging its review responsibilities 
during the course of its review of the system of internal control the board has 
not identiﬁed nor been advised of any failings or weaknesses which it has 
determined to be signiﬁcant therefore a conﬁrmation in respect of necessary 
actions is not required further information relating to the group’s risk and 
management systems is given on pages 18 to 21
going concern
the board’s statement on going concern is included in the financial review 
on page 67 
corporate sustainability
the board takes into account the community social environmental and ethical 
impact of its decisions and is responsible for the relevant policies of the group 
a corporate sustainability committee comprising mr jp luksic mr g s 
menéndez and mr r f jara assists the board in its responsibilities with respect 
to the group’s social responsibility the committee met once in 2010 with all 
three members in attendance key issues of social responsibility are identiﬁed 
and assessed through the group’s risk management processes described 
under “internal control” above the group also published a separate annual 
sustainability report to provide further information on its social and 
environmental performance more information on corporate sustainability 
is given on pages 46 to 57 
“whistleblowing” procedures
the audit committee whose other functions are described below is 
responsible for reviewing arrangements by which employees of the group 
may in conﬁdence raise concerns about possible improprieties in matters of 
ﬁnancial reporting or other matters an ethics code is in place across the group 
which includes a procedure to enable employees to raise concerns anonymously 
if necessary an ethics committee comprising members of senior management 
is responsible for implementing developing and updating the ethics code and 
investigating any allegations of impropriety the ethics committee reports 
directly to the chief executive of antofagasta minerals sa the audit committee 
considers the results of this work and the operation of the ethics code as part 
of its annual review of the effectiveness of internal control
audit committee and auditors
during the year the audit committee comprised mr c h bailey chairman 
mr g s menéndez and mr d e yarur 0n 1 march 2011 mr d e yarur retired 
from the board and was replaced on the audit committee by mr w m hayes 
the audit committee members during the year and to the date of this report are 
considered by the board to be independent nonexecutive directors all three 
members are considered to have recent and relevant ﬁnancial experience 
the audit committee meets at least twice a year with the external auditors in 
attendance the audit committee’s purpose is to assist the board in meeting 
its responsibilities relating to ﬁnancial reporting and control matters in particular 
it reviews the scope and nature of the audit and issues arising from it and is 
responsible for ensuring the independence of the external auditors including 
their objectivity and effectiveness monitoring the provision of any nonaudit 
services and for making recommendations to the board for the appointment 
reappointment or removal of the external auditors the audit committee 
periodically reviews if it is necessary to retender the audit engagement 
it reviews the internal control and risk assessment procedures adopted by the 
group described in the section under the heading “internal control” above 
including a review of the effectiveness of the internal audit function the internal 
audit function is responsible for reviewing the adequacy of the internal control 
environment across the group and for reporting the ﬁndings of the internal audit 
work to the audit committee on a regular basis the audit committee also 
monitors the integrity of the ﬁnancial statements and directors’ statements on 
internal controls and reviews the going concern basis prior to its endorsement 
by the board the committee also reviews the preliminary announcement and 
the half yearly ﬁnancial report the terms of reference of the audit committee 
are available from the company’s registered ofﬁce and may be viewed on the 
company’s website – wwwantofagastacouk 
the audit committee is authorised by the board to investigate any activity within 
its terms of reference it is authorised to seek any information it requires from any 
employees and all employees are directed to cooperate with any request made 
by the audit committee 
the company’s external auditors deloitte llp  have provided nonaudit services 
to the company which amounted to us609000 this comprised the provision 
of services relating to corporate ﬁnance advisory services tax compliance and 
other consultancy services the audit committee has reviewed the level of these 
services in the course of the year and is conﬁdent that the objectivity and 
independence of the auditors are not impaired by reason of such nonaudit work 
the audit committee has also considered the effectiveness of the external audit 
function through the year through meetings with deloitte llp  a review of their 
audit plan and a consideration of the results of work performed by the external 
auditors prior to release of the half year and full year results governance
80 antofagasta plc annual report and financial statements 2010
corporate governance report continued
relations with shareholders
directors and senior management regularly meet with institutional shareholders 
and analysts in the united kingdom europe chile north america asia and 
australia the senior independent nonexecutive director mr c h bailey also 
attends meetings with major shareholders when required other nonexecutive 
directors are given the opportunity to meet with major shareholders and attend 
meetings if requested to do so by shareholders these meetings ensure that the 
board is able to develop and maintain an understanding of the views of several of 
the company’s major investors the company carries out a formal programme of 
presentations to update institutional shareholders and analysts on developments 
in the group after the announcement of the half year and full year results 
in addition quarterly production ﬁgures and ﬁnancial results are published for 
the mining transport and water divisions copies of these results and production 
announcements presentations and other press releases issued by the company 
are available on its website as noted above the group also publishes a separate 
sustainability report to provide further information on its social and 
environmental performance the company’s annual general meeting “agm” 
is also used as an opportunity to communicate with both institutional and private 
shareholders the board of directors encourages all shareholders to attend 
the notice of the agm is sent to shareholders at least 20 working days in 
advance of the meeting at the meeting the company complies with the 
combined code as it relates to voting including votes withheld the separation 
of the resolutions and the attendance of committee chairmen
statement of compliance with the detailed provisions 
of the combined code
as explained above the company complied with the detailed code provisions 
contained in the combined code throughout 2010 except as follows
–  the board did not have a separately identiﬁed chief executive and hence at 
board level there is no formal separation of the functions of chairman and 
chief executive provision a21 as explained above the group has separate 
chief executives for its mining transport and water distribution divisions who 
report to their respective divisional boards and to the chairman of the group 
the board considers that its predominantly nonexecutive composition 
combined with the delegation of management responsibility to the chief 
executive ofﬁcer of each division achieves an appropriate balance and 
prevents a concentration of power in its executive chairman and
–  performancerelated pay measures did not apply to board members 
provision b11 the board considers this appropriate given its predominantly  
nonexecutive composition and the role of the only executive director 
who is a member of the controlling family as chairman of the board 
performancerelated bonuses are paid to senior management in the group 
based on a combination of personal divisional and group performance 
assessed against targets set at the start of each year strategic review other information financial statements governance financial review operational review
81 antofagasta plc annual report and financial statements 2010
this report has been prepared in accordance with schedule 8 of the large and 
mediumsized companies and groups accounts and reports regulations 
2008 it also meets the relevant requirements of the listing rules of the 
financial services authority and describes how the board has applied the 
principles of good governance as set out in the combined code on corporate 
governance issued by the financial reporting council in june 2008 “the 
combined code” relating to directors’ remuneration which applied to the 
company during the 2010 ﬁnancial year the uk corporate governance 
code issued by the financial reporting council in june 2010 will apply to the 
company from the 2011 ﬁnancial year and will be reported upon in the 2011 
annual report and financial statements
during the year under review the company complied with the detailed code 
provisions set out in section b of the combined code except as explained on 
page 80 performancerelated pay measures did not apply to the chairman 
who was the only executive director provision b11 
the companies act 2006 requires the auditors to report to the company’s 
members on certain parts of this report and to state whether in their opinion 
those parts have been properly prepared in accordance with the companies 
act 2006 the report has therefore been divided into separate sections for 
unaudited and audited information
unaudited information
remuneration committee
membership
the remuneration committee currently comprises mr g s menéndez 
chairman mr c h bailey and mr w m hayes all of whom are considered 
by the board to be independent nonexecutive directors mr w m hayes 
replaced mr d e yarur who retired from the remuneration committee 
on 29 november 2010
responsibilities
the responsibilities of the remuneration committee are fully set out in its 
terms of reference which are available from the company’s registered ofﬁce 
and may be viewed on the company’s website – wwwantofagastacouk 
the committee is responsible for setting remuneration policy and for reviewing 
the remuneration of any executive directors and where appropriate it consults 
the chairman mr jp luksic the committee used benchmarking data from 
various sources but did not appoint external consultants to advise on directors’ 
remuneration during the year the remuneration committee is also responsible 
for monitoring the level and structure of remuneration of group senior 
management and evaluating management performance the remuneration 
of nonexecutive directors is determined by the board as a whole no director 
participates in the determination of his own remuneration
company policy on directors’ pay and bonuses
the company’s policy is to ensure that directors are fairly rewarded with 
regard to responsibilities undertaken and considers comparable pay levels in 
the united kingdom in chile and in the international mining industry corporate 
and individual performance is taken into account in setting the pay level for the 
chairman as an executive director and this is reviewed on an annual basis to 
ensure it remains in line with companies of a similar nature size and complexity 
remuneration levels for nonexecutive directors are based on comparable levels 
for companies of a similar nature size and complexity and take into account 
speciﬁc responsibilities undertaken remuneration includes fees paid for 
nonexecutive directorships of subsidiary companies and joint ventures 
within the group the board does not consider it appropriate to make regular 
performancerelated pay awards such as bonuses to the only executive director 
mr jp luksic given his role as chairman of the board and his interest in 
the company’s shares both directly and as a member of the luksic family 
the group has paid mr r f jara for advisory services to the group during the 
year exceptional bonuses were paid in respect of mr jara and to a number of 
longserving senior executives recognising their contribution to longterm value 
creation of the group over the years from the development of the los pelambres 
mine in the late 1990s to the commissioning of the esperanza mine towards 
the end of 2010 the aggregate amount of the bonuses was us88 million 
no director currently receives pension contributions
nonexecutive directors’ fees
the fees payable to nonexecutive directors in respect of antofagasta plc 
were as follows
2010 
us000
2009 
us000
base fee 100 100
audit committee chairman 20 20
audit committee member 10 10
remuneration committee chairman 16 16
remuneration committee member 10 10
nomination committee chairman 10 10
nomination committee member 4 4
in addition to the above amounts nonexecutive directors also receive fees in 
their capacity as nonexecutive directors of the principal operating subsidiary 
companies and joint ventures within the group as some of these fees are set 
in chilean pesos the us dollar payments made in respect of such fees may vary 
depending on the applicable exchange rate from time to time these additional 
fees are included within the amounts attributable to the directors within the table 
of directors’ remuneration on page 83 
remuneration report governance
82 antofagasta plc annual report and financial statements 2010
remuneration report continued
service contracts and letters of appointment
mr jp luksic has a contract for services with both the antofagasta railway 
company plc and antofagasta minerals sa both contracts for services can 
be terminated by either party on one month’s notice there is also a contract 
between antofagasta minerals sa and asesorías ramón f jara ltda for the 
provision of advisory services by mr r f jara which can also be terminated on 
one month’s notice the amounts payable under these contracts for services 
are denominated in chilean pesos and as is typical for employment contracts or 
contracts for services in chile are adjusted in line with chilean inﬂation and are 
also reviewed periodically in line with the company’s policy on directors’ pay 
although no changes were made in 2010 amounts paid during 2009 and 
2010 have been included in the table of directors’ remuneration on page 83 
all nonexecutive directors other than mr menéndez mr bailey mr baker and 
mr dryland have letters of appointment with the company for an initial period 
of three years from the date of their appointment subject to reappointment 
at each annual general meeting “agm” during their period of appointment 
mr menéndez mr bailey mr baker and mr dryland are each appointed for a 
oneyear period from the date of their appointment subject to reappointment 
at the agm following their appointment the company intends to comply with 
provision b7 of the uk corporate governance code from the 2011 ﬁnancial 
year and submit each director for annual reelection these letters require 
the nonexecutive directors to undertake that they will have sufﬁcient time 
to discharge their responsibilities the appointments may be terminated by 
either party on one month’s notice the letters of appointment are available for 
inspection at the company’s registered ofﬁce during normal business hours 
and at the agm for 15 minutes prior to and during the meeting the service 
contracts and letters of appointment do not provide for any compensation for loss 
of ofﬁce beyond payments in lieu of notice and therefore the maximum amount 
payable upon termination of these contracts is limited to one month’s payment
share options and longterm incentive schemes
no arrangements exist to enable directors to acquire beneﬁts through the 
acquisition of shares in the company or any of its subsidiary undertakings 
to beneﬁt through proﬁtrelated pay or share option schemes or to participate 
in any longterm incentive schemes
directors’ interests
the directors’ interests in the shares of the company at the beginning and end 
of the year were as follows
ordinary shares of 5p each
31 december 
2010
1 january 
2010
jp luksic
1
41963110 41963110
c h bailey 32000 32000
r f jara
2
1260 –
1
  mr jp luksic’s interest relates to shares held by aureberg establishment an entity which 
he controls
2
 mr r f jara’s interest relates to shares held by a close family member
there have been no changes to the directors’ interests in the shares of the 
company between 31 december 2010 and the date of this report 
the directors had no interests in the shares of the company during the year 
other than the interests in the table set out above no director had any material 
interest in any other contract with the company or its subsidiary undertakings 
during the year other than in the ordinary course of business 
performance graph
the following graph shows the company’s performance compared to the 
performance of the ftse allshare index over a ﬁveyear period measured by 
total shareholder return as deﬁned below the ftse allshare index has been 
selected as an appropriate benchmark as it is the most broadly based index to 
which the company belongs and which relates to the london stock exchange 
the market where the company’s ordinary shares are traded total shareholder 
return is calculated to show a theoretical growth in the value of a shareholding 
over a speciﬁed period assuming that dividends are reinvested to purchase 
additional shares at the closing price applicable on the exdividend date 
total shareholder return for the ftse allshare index is calculated by 
aggregating the returns of all individual constituents of the ftse at the end 
of the ﬁveyear period
source datastream
total shareholder return represents share price growth plus dividends reinvested over the period
total return basis index – 1 january 2006  100

500
400
300
200
100
0
dec 2006 dec 2005
antofagasta ftse all shares
dec 2007 dec 2008 dec 2009 dec 2010
total shareholder return – antofagasta plc vs ftse allshare index strategic review other information financial statements governance financial review operational review
83 antofagasta plc annual report and financial statements 2010
audited information
directors’ remuneration
the remuneration of the directors in the year is set out below in us dollars amounts paid in chilean pesos have been translated at average rates for the relevant 
year which are set out in note 36 to the ﬁnancial statements 
base salary and fees bonus beneﬁts total remuneration
2010 
us000
2009 
us000 
2010 
us000
2009 
us000 
2010 
us000
2009 
us000 
2010 
us000
2009 
us000 
jp luksic
1
 3232  3116  –  –  98  67  3330  3183 
c h bailey 146 134  –  –  –  –  146  134 
g s menéndez 320  320  –  –  –  –  320  320 
r f jara
2
 821  770  1000  –  4  –  1825  770 
d e yarur 143  144  –  –  –  –  143  144 
g a luksic 124  124  –  –  –  –  124  124 
j w ambrus
3
 –  123  –  –  –  –  –  123 
j g claro 196  196  –  –  –  –  196  196 
w m hayes 207  178  –  –  –  –  207  178 
5189  5105  1000  –  102  67  6291  5172 
1
  during 2010 remuneration of us1000000 for the provision of services by mr jp luksic was paid to goldbeam finance limited 2009 – remuneration of us1000000 was paid 
to goldstream finance limited this amount is included in the amounts attributable to mr jp luksic of us3232000 2009 – us3116000 the beneﬁts expense represents the 
provision of car usage and life accident and health insurance for mr jp luksic
2
  during 2010 remuneration of us509000 2009 – us462000 for the provision of services by mr r f jara was paid to asesorías ramón f jara ltda this amount is included in the 
amounts attributable to mr r f jara of us821000 2009 – us770000 the beneﬁts expense represents the provision of accident insurance to mr jara as explained in relation to 
company policy on page 81 during 2010 an exceptional bonus was paid to riverwood services inc in respect of mr ramon jara reﬂecting his contribution to the group over a long period 
of time 
3
  mr j w ambrus resigned from the board on 14 october 2009 and the amounts shown above for 2009 represent fees payable up to this date 
4
  mr p j adeane retired from the board in 2006 following retirement mr p j adeane has continued to serve the board as a senior advisor under a contract for services at the rate of £10000 
per annum until 30 june 2010 mr adeane was paid £5000 approximately us7720 under this contract for services during 2010 2009 – £10000 approximately us15590 
approved on behalf of the board
g s menéndez
chairman of the remuneration committee
7 march 2011 financial statements
financial 
statements
84 antofagasta plc annual report and financial statements 2010 strategic review other information financial statements governance financial review operational review
85 antofagasta plc annual report and financial statements 2010
directors’ 
responsibilities
 page 86
independent 
auditors’ report
 page 87
income statement
 page 88
statement of 
comprehensive 
income
 page 89
balance sheet
 page 90
cash flow 
statement
 page 91
notes
 page 92 financial statements
86 antofagasta plc annual report and financial statements 2010
statement of directors’ responsibilities
the directors are responsible for preparing the annual report and the ﬁnancial 
statements company law requires the directors to prepare ﬁnancial statements 
for each ﬁnancial year the directors are required to prepare ﬁnancial statements 
for the group in accordance with international financial reporting standards 
“ifrs” as adopted by the european union and article 4 of the ias regulation 
and have chosen to prepare company ﬁnancial statements in accordance with 
united kingdom generally accepted accounting principles “uk gaap” 
in the case of the group’s ifrs ﬁnancial statements international accounting 
standard 1 requires that ﬁnancial statements present fairly for each ﬁnancial year 
the group’s ﬁnancial position ﬁnancial performance and cash ﬂows this requires 
the faithful representation of the effects of transactions other events and 
conditions in accordance with the deﬁnitions and recognition criteria for assets 
liabilities income and expenses set out in the international accounting standards 
board’s “framework for the preparation and presentation of financial 
statements” in virtually all circumstances a fair presentation will be achieved 
by compliance with all applicable ifrs directors are also required to
–  properly select and apply accounting policies
–  present information including accounting policies in a manner that provides 
relevant reliable comparable and understandable information 
–  provide additional disclosures when compliance with the speciﬁc requirements 
in ifrs are insufﬁcient to enable users to understand the impact of particular 
transactions other events and conditions on the entity’s ﬁnancial position and 
ﬁnancial performance and
–  make an assessment of the company’s ability to continue as a going concern
in the case of the company’s uk gaap ﬁnancial statements the directors are 
required to prepare ﬁnancial statements for each ﬁnancial year which give a true 
and fair view of the state of affairs of the company and of the proﬁt and loss 
of the company for that period in preparing these ﬁnancial statements the 
directors are required to
–  select suitable accounting policies and then apply them consistently
–  make judgements and accounting estimates that are reasonable and prudent
–  state whether applicable uk accounting standards have been followed subject 
to any material departures disclosed and explained in the ﬁnancial statements 
and
–  prepare the ﬁnancial statements on the going concern basis unless it is 
inappropriate to presume that the company will continue in business
the directors are responsible for keeping adequate accounting records that 
are sufﬁcient to show and explain the company’s transactions and disclose 
with reasonable accuracy at any time the ﬁnancial position of the company and 
enable them to ensure that the ﬁnancial statements comply with the companies 
act 2006 they are also responsible for safeguarding the assets of the company 
and hence for taking reasonable steps for the prevention and detection of fraud 
and other irregularities 
the directors are responsible for the maintenance and integrity of the corporate 
and ﬁnancial information included on the company’s website legislation in the 
united kingdom governing the preparation and dissemination of ﬁnancial 
statements may differ from legislation in other jurisdictions
directors’ responsibility statement
we conﬁrm to the best of our knowledge
a  the group ﬁnancial statements have been prepared in accordance with 
international financial reporting standards as adopted by the european union 
and give a true and fair view of the assets liabilities ﬁnancial position and 
proﬁt of the company and the undertakings included in the consolidation 
taken as a whole
b  the company ﬁnancial statements have been prepared in accordance with uk 
gaap  and give a true and fair view of the assets liabilities ﬁnancial position 
and proﬁt of the company and
c  the directors’ report including those sections incorporated therein by 
reference includes a fair review of the development and performance of the 
business and the position of the company and the undertakings included in 
the consolidation taken as a whole together with a description of the principal 
risks and uncertainties that they face
by order of the board 
jp luksic    c h bailey 
chairman     director
7 march 2011 strategic review other information financial statements governance financial review operational review
87 antofagasta plc annual report and financial statements 2010
independent auditors’ report to the members of antofagasta plc
we have audited the ﬁnancial statements of antofagasta plc for the year 
ended 31 december 2010 which comprise the consolidated income statement 
the consolidated statement of comprehensive income the consolidated and 
parent company balance sheets the consolidated cash flow statement the 
consolidated statement of changes in equity and the related notes 1 to 41 
the ﬁnancial reporting framework that has been applied in the preparation of the 
group ﬁnancial statements is applicable law and international financial reporting 
standards “ifrss” as adopted by the european union the ﬁnancial reporting 
framework that has been applied in the preparation of the parent company 
ﬁnancial statements is applicable law and united kingdom accounting 
standards united kingdom generally accepted accounting practice
this report is made solely to the company’s members as a body in accordance 
with chapter 3 part 16 of the companies act 2006 our audit work has been 
undertaken so that we might state to the company’s members those matters 
we are required to state to them in an auditors’ report and for no other purpose 
to the fullest extent permitted by law we do not accept or assume responsibility 
to anyone other than the company and the company’s members as a body for 
our audit work for this report or for the opinions we have formed
respective responsibilities of directors and auditor
as explained more fully in the directors’ responsibilities statement the directors 
are responsible for the preparation of the ﬁnancial statements and for being 
satisﬁed that they give a true and fair view our responsibility is to audit and 
express an opinion on the ﬁnancial statements in accordance with applicable law 
and international standards on auditing uk and ireland those standards require 
us to comply with the auditing practices board’s ethical standards for auditors
scope of the audit of the ﬁnancial statements
an audit involves obtaining evidence about the amounts and disclosures in the 
ﬁnancial statements sufﬁcient to give reasonable assurance that the ﬁnancial 
statements are free from material misstatement whether caused by fraud or 
error this includes an assessment of whether the accounting policies are 
appropriate to the group’s and the parent company’s circumstances and have 
been consistently applied and adequately disclosed the reasonableness of 
signiﬁcant accounting estimates made by the directors and the overall 
presentation of the ﬁnancial statements
opinion on ﬁnancial statements
in our opinion
–  the ﬁnancial statements give a true and fair view of the state of the group’s 
and of the parent company’s affairs as at 31 december 2010 and of the 
group’s proﬁt for the year then ended
–  the group ﬁnancial statements have been properly prepared in accordance 
with ifrss as adopted by the european union
–  the parent company ﬁnancial statements have been properly prepared in 
accordance with united kingdom generally accepted accounting practice and
–  the ﬁnancial statements have been prepared in accordance with the 
requirements of the companies act 2006 and as regards the group 
ﬁnancial statements article 4 of the ias regulation
opinion on other matters prescribed by the 
companies act 2006
in our opinion
–  the part of the directors’ remuneration report to be audited has been properly 
prepared in accordance with the companies act 2006 and 
–  the information given in the directors’ report for the ﬁnancial year for which the 
ﬁnancial statements are prepared is consistent with the ﬁnancial statements
matters on which we are required to report by exception
we have nothing to report in respect of the following
under the companies act 2006 we are required to report to you if in our opinion 
–  adequate accounting records have not been kept by the parent company 
or returns adequate for our audit have not been received from branches not 
visited by us or
–  the parent company ﬁnancial statements and the part of the directors’ 
remuneration report to be audited are not in agreement with the accounting 
records and returns or
–  certain disclosures of directors’ remuneration speciﬁed by law are not made or
–  we have not received all the information and explanations we require for 
our audit
under the listing rules we are required to review 
–  the directors’ statement contained within the financial review in relation 
to going concern 
–  the part of the corporate governance statement relating to the company’s 
compliance with the nine provisions of the june 2008 combined code 
speciﬁed for our review and
–  certain elements of the report to shareholders by the board on directors’ 
remuneration
james leigh senior statutory auditor
for and on behalf of deloitte llp 
chartered accountants and statutory auditors  
london united kingdom 
7 march 2011 financial statements
88 antofagasta plc annual report and financial statements 2010
consolidated income statement 
for year ended 31 december 2010
notes
2010 
usm
2009 
usm
group revenue 46 45771 29626 
total operating costs including exceptional item 19826 15036
operating proﬁt from subsidiaries and joint ventures 46 25945 14590 
share of net lossproﬁt from associates 4617 26 45 
total proﬁt from operations and associates 46 25919 14635 
investment income 165 132 
interest expense 183 240
other ﬁnance items 169 151
net ﬁnance expense 9 187 259
proﬁt before tax 6 25732 14376 
income tax expense 10 7525 3177
proﬁt for the ﬁnancial year 6 18207 11199 
attributable to
noncontrolling interests 30 7689 4522 
equity holders of the company net earnings 11 10518 6677 
 
us cents us cents
basic earnings per share 11 1067 677 
 
dividends to ordinary shareholders of the company
per share 12 us cents us cents
dividends per share proposed in relation to the year
– ordinary dividend interim 40 34 
– ordinary dividend ﬁnal 120 60 
– special dividend ﬁnal 1000 140 
1160 234 
dividends per share paid in the year and deducted from net equity
– ordinary dividend interim 40 34 
– ordinary dividend ﬁnal 60 56 
– special dividend ﬁnal 140 480 
240 570 
 
in aggregate 12 usm usm
dividends proposed in relation to the year 11436 2307 
dividends paid in the year and deducted from net equity 2366 5619 
revenue and operating proﬁt are derived from continuing operations
  the exceptional item included within “total operating costs” in respect of the year ended 31 december 2010 is the us1094 million reversal of an impairment charge relating to property 
plant and equipment at el tesoro excluding this exceptional item operating proﬁt from subsidiaries and joint ventures was us24851 million and proﬁt before tax was us24638 million 
there were no exceptional items in the year ended 31 december 2009 further details of this exceptional item are set out in note 5 strategic review other information financial statements governance financial review operational review
89 antofagasta plc annual report and financial statements 2010
notes
2010 
usm
2009 
usm
proﬁt for the ﬁnancial year 6 18207 11199 
losses in fair value of cash ﬂow hedges deferred in reserves 25 937 1779
gains in fair value of available for sale investment 19 68 05 
currency translation adjustment 29 271 462 
deferred tax effects arising on cash ﬂow hedges deferred in reserves 25 178 340 
total expense recognised in equity 420 972
gains in fair value of cash ﬂow hedges transferred to the balance sheet 25 – 220
losses in fair value of cash ﬂow hedges transferred to the income statement 25 814 658 
deferred tax effects arising on cash ﬂow hedges transferred to the income statement 25 138 112
total transferred to the income statement 676 326 
total comprehensive income for the year 18463 10553 
 
attributable to
noncontrolling interests 30 7658 4216 
equity holders of the company 10805 6337 
 
consolidated statement of changes in equity 
for the year ended 31 december 2010
share 
 capital 
 usm
share 
 premium 
 usm
hedging 
 reserves 
 usm
fair value 
 reserves 
 usm
translation 
 reserves 
 usm
retained 
 earnings 
 usm
net 
equity 
 usm
non
controlling 
interests 
 usm
total 
 usm
at 1 january 2009 898 1992 305 31 160 49664 52668 11658 64326
total comprehensive income for the year – – 806 05 461 6677 6337 4216 10553
acquisition of noncontrolling interests – – –––– – 14 14
dividends – – – – – 5619 5619 3100 8719
at 31 december 2009
   and 1 january 2010 898 1992 501 26 301 50722 53386 12788 66174
total comprehensive income for the year – – 52 68 271 10518 10805 7658 18463
acquisition of subsidiary – – – – – 06 06 08 14
capital increase of noncontrolling interests – – – – – 125 125 125 – 
dividends – – – – – 2366 2366 7027 9393
at 31 december 2010 898 1992 553 42 572 58755 61706 13552 75258
consolidated statement of comprehensive income 
for year ended 31 december 2010 financial statements
90 antofagasta plc annual report and financial statements 2010
consolidated balance sheet 
at 31 december 2010
notes
2010 
usm
2009 
usm
noncurrent assets
intangible assets 13 3115 3112 
property plant and equipment 14 60934 48732 
investment property 15 37 34 
investment in associate 17 580 1213 
trade and other receivables 21 429 366 
availableforsale investments 19 218 12 
deferred tax assets 27 1100 311 
66413 53780 
current assets
inventories 20 3850 2401 
trade and other receivables 21 9737 6086 
current tax assets 444 598 
derivative ﬁnancial instruments 25 18 17 
liquid investments restated – see note 1 22 8069 6318 
cash and cash equivalents restated – see note 1 22 27347 25905 
49465 41325 
total assets 115878 95105 
current liabilities
shortterm borrowings 23 1376 4318
derivative ﬁnancial instruments 25 547 812
trade and other payables 24 5048 4376
current tax liabilities 2336 450
 9307 9956
noncurrent liabilities
medium and longterm borrowings 23 20589 11948
derivative ﬁnancial instruments 25 590 45
trade and other payables 24 47 123
postemployment beneﬁt obligations 26 680 482
longterm provisions 28 2444 1279
deferred tax liabilities 27 6963 5098
31313 18975
total liabilities 40620 28931
net assets 75258 66174 
equity
share capital 29 898 898 
share premium 29 1992 1992 
hedging translation and fair value reserves 29 61 226
retained earnings 29 58755 50722 
equity attributable to equity holders of the company 61706 53386 
noncontrolling interests 30 13552 12788
total equity 75258 66174
approved by the board and signed on its behalf on 7 march 2011
jp luksic  c h bailey 
chairman  director strategic review other information financial statements governance financial review operational review
91 antofagasta plc annual report and financial statements 2010
notes
2010 
usm
2009 
usm
cash ﬂows from operations 33 24339 11678 
interest paid 424 270
dividends from associate 17 08 07 
income tax paid 4279 1352
net cash from operating activities 19644 10063 
investing activities
acquisition of and capital contributions to associates – 1145
acquisition of availableforsale investments 19 129 – 
acquisition of noncontrolling interest in subsidiary – 250
net increase in liquid investments restated – see note 1 33 1751 869
purchases of property plant and equipment 13018 13236
purchases of intangible assets – 525
disposal of intangible assets 13 35 – 
interest received 262 158 
net cash used in investing activities 14601 15867
financing activities
dividends paid to equity holders of the company 12 2366 5619
dividends paid to preference shareholders of the company 12 02 02
dividends paid to noncontrolling interests 30 7027 3100
net proceeds from issue of new borrowings 33 10220 20516 
repayments of borrowings 33 4470 8636
repayments of obligations under ﬁnance leases 33 128 109
net cash used inreceived from in ﬁnancing activities 3773 3050 
net increasedecrease in cash and cash equivalents 1270 2754
cash and cash equivalents at beginning of the year 25905 28131 
net increasedecrease in cash and cash equivalents 33 1270 2754
effect of foreign exchange rate changes 33 172 528 
cash and cash equivalents at end of the year restated – see note 1 2233 27347 25905 
consolidated cash flow statement 
for year ended 31 december 2010 financial statements
92 antofagasta plc annual report and financial statements 2010
notes to the financial statements
1 basis of preparation
a accounting standards applied
the ﬁnancial statements have been prepared in accordance with international financial 
reporting standards “ifrs” and with those parts of the companies act 2006 applicable to 
companies reporting under ifrs for these purposes ifrs comprise the standards issued by the 
international accounting standards board “iasb” and interpretations issued by the international 
financial reporting interpretations committee “ifric” that have been endorsed by the european 
union “eu”
the ﬁnancial statements have been prepared on the going concern basis details of the factors 
which have been taken into account in assessing the group’s going concern status are set out 
on page 67 of the financial review
the prior year balance sheet reﬂects a reclassiﬁcation of certain balances between cash and 
cash equivalents and liquid investments to better reﬂect the maturity terms of the underlying 
instruments at 31 december 2009 this results in a cash and cash equivalents balance of 
us25905 million and a new liquid investments balance of us6318 million 31 december 
2008 – us28131 million and us5449 million this has resulted in certain reclassiﬁcations 
within the cash ﬂow statement
at the date of authorisation of these ﬁnancial statements the following standards and 
interpretations which have not been applied in these ﬁnancial statements were in issue but not 
yet effective
– ifrs 9 financial instruments
– ias 24 amended related party disclosures
– ias 32 amended classiﬁcation of rights issue
– ifric 19 extinguishing financial liabilities with equity instruments
– ifric 14 amended prepayments of a minimum funding requirement 
– improvements to ifrss may 2010
the adoption of ifrs 9 will have an effect on the classiﬁcation and measurement of the group’s 
ﬁnancial assets the group does not expect that the adoption of the other standards listed above 
will have a material impact on the ﬁnancial statements of the group in future periods
b adoption of new accounting standards
in the current ﬁnancial year the group has adopted the following standards that have affected 
the presentation and disclosure in these ﬁnancial statements
ifrs 3 business combinations 2008 in the current year the group has adopted ifrs 3 
business combinations 2008 for accounting for business combinations the change in 
accounting policy has been applied prospectively for acquisitions on or after 1 january 2010 
the group measures goodwill as the fair value of the consideration transferred and the 
recognised amount of any noncontrolling interests in the acquiree less the net recognised 
amount of the identiﬁable assets acquired and liabilities assumed all measured as of the 
acquisition date transaction costs other than those associated with the issue of debt or equity 
securities that the group incurs in connection with a business combination are expensed as 
incurred the revised standard was applied to the acquisition of the 40 controlling interest in 
twin metals minnesota llc see note 31 for further details of this business combination which 
occurred in 2010
ias 27 consolidated and separate financial statements 2008 in the current year the group 
has adopted ias 27 consolidated and separate financial statements 2008 for accounting 
for acquisitions of noncontrolling interests the change in accounting policy has been applied 
prospectively and there was no impact on the group’s results in the current year from 1 january 
2010 a change in the ownership interest of a subsidiary without loss of control is accounted for 
as an equity transaction
the following standards and interpretations are effective but have not had any signiﬁcant impact 
on the ﬁnancial statements
– ifrs 2 amended group cashsettled sharebased payment transactions
– ifric 17 distributions of noncash assets to owners
2 principal accounting policies
a accounting convention
these ﬁnancial statements have been prepared under the historical cost convention as modiﬁed 
by the use of fair values to measure certain ﬁnancial instruments principally provisionally priced 
sales as explained in note 2d and ﬁnancial derivative contracts as explained in note 2t
b basis of consolidation
the ﬁnancial statements comprise the consolidated ﬁnancial statements of antofagasta plc 
“the company” and its subsidiaries collectively “the group”
i  subsidiaries – a subsidiary is an entity over which the group has power to govern the 
operating and ﬁnancial policies in order to obtain beneﬁts from its activities the consolidated 
ﬁnancial statements include all the assets liabilities revenues expenses and cash ﬂows of 
the company and its subsidiaries after eliminating intercompany balances and transactions 
for partlyowned subsidiaries the net assets and net earnings attributable to noncontrolling 
shareholders are presented as “noncontrolling interests” in the consolidated balance sheet 
and consolidated income statement
ii  associates – an associate is an entity over which the group is in a position to exercise 
signiﬁcant inﬂuence but not control or joint control through the power to participate in the 
ﬁnancial and operating policy decisions of that entity the group’s share of the net assets 
the results posttax and postacquisition reserves of associates are included in the ﬁnancial 
statements this requires recording the investment initially at cost to the group and then in 
subsequent periods adjusting the carrying amount of the investment to reﬂect the group’s 
share of the associate’s results less any impairment of goodwill and any other changes to 
the associate’s net assets such as dividends
iii  jointly controlled entities – a jointly controlled entity is an entity in which the group holds 
a longterm interest and shares joint control over the operating and ﬁnancial decisions with 
one or more other venturers under a contractual arrangement jointly controlled entities are 
accounted for using proportionate consolidation which combines the group’s share of the 
results of the jointly controlled entity on a linebyline basis with similar items in the group’s 
ﬁnancial statements
iv  other investments – the accounting treatment of investments which are not 
subsidiaries associates or jointly controlled entities is set out in note 2t relating to 
other ﬁnancial instruments
v  acquisitions and disposals – acquisitions and disposals are treated as explained in 
note 2e relating to business combinations and goodwill
c currency translation
the functional currency for each entity in the group is determined as the currency of the primary 
economic environment in which it operates transactions other than those in the functional 
currency of the entity are translated at the exchange rate ruling at the date of the transaction 
monetary assets and liabilities denominated in currencies other than the functional currency are 
retranslated at year end exchange rates gains and losses on retranslation are included in net 
proﬁt or loss for the period within other ﬁnance items
the presentational currency of the group and the functional currency of the company is the 
us dollar on consolidation income statement items for entities with a functional currency other 
than the us dollar are translated into us dollars at average rates of exchange balance sheet 
items are translated at periodend exchange rates exchange differences on translation of the 
net assets of such entities are taken to equity and recorded in a separate currency translation 
reserve cumulative translation differences arising after the transition date to ifrs are 
recognised as income or as expenses in the income statement in the period in which an 
operation is disposed
on consolidation exchange gains and losses which arise on balances between group entities 
are taken to reserves where that balance is in substance part of the net investment in a foreign 
operation ie where settlement is neither planned nor likely to occur in the foreseeable future 
all other exchange gains and losses on group balances are dealt with in the income statement
fair value adjustments and any goodwill arising on the acquisition of a foreign entity are treated 
as assets of the foreign entity and translated at the periodend rate
d revenue recognition
revenue represents the value of goods and services supplied to third parties during the year 
revenue is measured at the fair value of consideration received or receivable and excludes 
any applicable sales tax strategic review other information financial statements governance financial review operational review
93 antofagasta plc annual report and financial statements 2010
a sale is recognised when the signiﬁcant risks and rewards of ownership have passed this is 
generally when title and any insurance risk has passed to the customer and the goods have 
been delivered to a contractually agreed location or when any services have been provided
revenue from mining activities is recorded at the invoiced amounts with an adjustment for 
provisional pricing at each reporting date as explained below for copper and molybdenum 
concentrates which are sold to smelters and roasting plants for further processing the invoiced 
amount is the market value of the metal payable by the customer net of deductions for tolling 
charges revenue includes amounts from the sale of byproducts
copper and molybdenum concentrate sale agreements and copper cathode sale agreements 
generally provide for provisional pricing of sales at the time of shipment with ﬁnal pricing based 
on the monthly average london metal exchange “lme” copper price or the monthly average 
market molybdenum price for speciﬁed future periods this normally ranges from 30 to 120 days 
after delivery to the customer such a provisional sale contains an embedded derivative which is 
required to be separated from the host contract the host contract is the sale of metals contained 
in the concentrate or cathode at the provisional invoice price less tolling charges deducted and 
the embedded derivative is the forward contract for which the provisional sale is subsequently 
adjusted at each reporting date the provisionally priced metal sales together with any related 
tolling charges are markedtomarket with adjustments both gains and losses being recorded 
in revenue in the consolidated income statement and in trade debtors in the balance sheet 
forward prices at the period end are used for copper concentrate and cathode sales while 
periodend average prices are used for molybdenum concentrate sales due to the absence 
of a futures market
interest income is accrued on a time basis by reference to the principal outstanding and the 
effective interest rate applicable which is the rate that exactly discounts estimated future cash 
receipts through the expected life of the ﬁnancial asset to that asset’s net carrying amount
dividend income from investments is recognised when the shareholders’ right to receive 
payment has been established
e business combinations and goodwill
i  acquisitions – the results of businesses acquired during the year are brought into the 
consolidated ﬁnancial statements from the effective date of acquisition the identiﬁable 
assets liabilities and contingent liabilities of a subsidiary joint venture entity or an associate 
which can be measured reliably are recorded at their provisional fair values at the date 
of acquisition provisional fair values are ﬁnalised within 12 months of the acquisition date 
acquisitionrelated costs are expensed as incurred on an acquisitionbyacquisition basis 
the group recognises any noncontrolling interest in the acquiree either at fair value 
or at noncontrolling interest’s proportionate share of the acquirer’s net assets
ii  goodwill – goodwill arising in a business combination is recognised as the excess of the 
sum of the consideration transferred the amount of any noncontrolling interest in the 
acquiree and the fair value of the acquirer’s previously held equity interest in the acquiree 
if any over the next identiﬁable assets acquired and liabilities assumed any goodwill on the 
acquisition of subsidiaries is separately disclosed while any goodwill on the acquisition of 
associates is included within investments in equity accounted entities internally generated 
goodwill is not recognised where the fair values of the identiﬁable net assets acquired 
exceed the sum of the consideration transferred the surplus which represents the discount 
on the acquisition is credited to the income statement in the period of acquisition
iii  transactions with noncontrolling interests – the group treats transactions with 
noncontrolling interests as transactions with equity owners of the group for purchases 
from noncontrolling interests the difference between any consideration paid and the 
relevant share acquired of the carrying value of net assets of the subsidiary is recorded in 
equity when the group ceases to have control or signiﬁcant inﬂuence any retained interest 
in the entity is remeasured to its fair value with the change in carrying amount recognised 
in proﬁt or loss the fair value is the initial carrying amount for the purposes of subsequent 
accounting for the retained interest as an associate joint venture or ﬁnancial asset 
any amounts previously recognised in other comprehensive income in respect of that 
entity are reclassiﬁed to proﬁt and loss
iv  disposals – the results of businesses sold during the year are included in the consolidated 
ﬁnancial statements for the period up to the effective date of disposal gains or losses on 
disposal are calculated as the difference between the sales proceeds net of expenses 
and the net assets attributable to the interest which has been sold where a disposal 
represents a separate major line of business or geographical area of operations the net 
results attributable to the disposed entity are shown separately in the income statement
f intangible assets
i  concession rights – in 2003 the group’s wholly owned subsidiary aguas de antofagasta 
sa was awarded a 30year concession to operate the water rights and facilities in the 
antofagasta region of chile previously controlled by empresa concesionaria de servicios 
sanitarios sa “econssa” all infrastructure assets relating to the water concession 
are recorded within intangible assets as part of the “concession rights” the concession 
rights also includes an amount recognised in respect of the right to use those assets 
not recognised as their lives extend substantially beyond the period of the concession 
the concession rights is measured as the difference between the cost of the concession 
and the fair values of the assets and liabilities recognised on acquisition plus the fair value of 
any further assets transferred to the group by way of concession subsequent to acquisition
ii  exploration licences – in 2006 the group acquired tethyan copper company limited 
“tethyan” a company with coppergold interests in pakistan and entered into a joint 
venture over tethyan’s mineral interests with barrick gold corporation through the disposal 
of a 50 interest in tethyan an intangible asset has been recognised for the group’s 
proportionate share of the full unencumbered value attributed to the interest in the 
exploration licences held by tethyan in pakistan along with related rights acquired 
subsequently in addition the intangible asset balance also includes amounts relating 
to interests in other prospecting licences
g exploration and evaluation expenditure
exploration and evaluation are expensed in the year in which it is incurred when a decision 
is taken that a mining project is commercially viable normally when the project has reached 
the feasibility stage all further directly attributable preproduction expenditure is capitalised 
capitalisation of preproduction expenditure ceases when commercial levels of production 
are achieved
h property plant and equipment
the costs of mining properties and leases which include the costs of acquiring and developing 
mining properties and mineral rights are capitalised as property plant and equipment in the year 
in which they are incurred when a decision has been taken that a mining project is commercially 
viable normally when the project has reached the feasibility stage
the cost of plant property and equipment comprises the purchase price and any costs directly 
attributable to bringing the asset to the location and condition necessary for it to be capable of 
operating in the manner intended once a project has been established as commercially viable 
related development expenditure is capitalised this includes costs incurred in preparing the site 
for mining operations including prestripping costs capitalisation ceases when the mine is 
capable of commercial production with the exception of development costs which give rise 
to a future beneﬁt
interest on borrowings directly related to construction or development of projects is capitalised 
until such time as the assets are substantially ready for their intended use or sale which in the 
case of mining properties is when they are capable of commercial production
i depreciation of property plant and equipment and amortisation of intangible assets 
property plant and equipment is depreciated over its useful life or over the remaining life of the 
operation if shorter to residual value the major categories of property plant and equipment are 
depreciated as follows
i  land – freehold land is not depreciated any leasehold land is depreciated on a straightline 
basis over the life of the lease
ii  mining properties – mining properties including capitalised ﬁnancing costs are 
depreciated on a unit of production basis in proportion to the volume of ore extracted in 
the year compared with total proven and probable reserves at the beginning of the year
iii buildings and infrastructure – straightline basis over 10 to 25 years
iv railway track including trackside equipment – straightline basis over 20 to 25 years
v wagons and rolling stock – straightline basis over 10 to 20 years
vi machinery equipment and other assets – straightline basis over 5 to 10 years
vii assets under construction – no depreciation until asset is available for use
viii  assets held under ﬁnance lease – are depreciated over the shorter of the lease term 
and their useful life financial statements
94 antofagasta plc annual report and financial statements 2010
notes to the financial statements continued
2 principal accounting policies continued
residual values and useful lives are reviewed and adjusted if appropriate at least annually 
and changes to residual values and useful lives are accounted for prospectively
the concession right is amortised on a straightline basis over the life of the concession 
or the useful life of any component part if less
j impairment of property plant and equipment and intangible assets 
excluding goodwill
property plant and equipment and ﬁnite life intangible assets are reviewed for impairment if 
there is any indication that the carrying amount may not be recoverable if any such indication 
exists the recoverable amount of the asset is estimated in order to determine the extent of the 
impairment if any where the asset does not generate cash ﬂows that are independent from 
other assets the group estimates the recoverable amount of the cashgenerating unit to which 
the asset belongs any intangible asset with an indeﬁnite useful life is tested for impairment 
annually and whenever there is an indication that the asset may be impaired
recoverable amount is the higher of fair value less costs to sell and value in use in assessing 
value in use the estimated future cash ﬂows are discounted to their present value using a 
pretax discount rate that reﬂects current market assessments of the time value of money and 
the risks speciﬁc to the asset for which estimates of future cash ﬂows have not been adjusted
for mining properties estimates of future cash ﬂows are based on assumptions as to expected 
production levels commodity prices cash costs of production and capital expenditure 
ias 36 “impairment of assets” includes a number of restrictions on the future cash ﬂows that 
can be recognised in respect of future restructurings and improvementrelated expenditure 
when calculating value in use it also requires that calculations should be based on exchange 
rates current at the time of assessment for operations with a functional currency other than 
the us dollar the impairment review is conducted in the relevant functional currency
if the recoverable amount of an asset or cashgenerating unit is estimated to be less than its 
carrying amount the carrying amount is reduced to the recoverable amount an impairment 
charge is recognised in the income statement immediately where an impairment subsequently 
reverses the carrying amount is increased to the revised estimate of recoverable amount but so 
that the increased carrying amount does not exceed the carrying value that would have been 
determined if no impairment had previously been recognised a reversal is recognised in the 
income statement immediately
k investment property
investment property is property held to earn rentals andor for capital appreciation and includes 
land held for a currently undetermined future use the group has elected to adopt the cost model 
in ias 40 “investment property” accordingly investment property is measured initially at cost 
which includes transaction costs for the acquisition of the property and as detailed in note 2i 
relating to property plant and equipment is not depreciated
l inventory
inventory and workinprogress are valued at the lower of cost and net realisable value 
net realisable value represents estimated selling price less all estimated costs of completion 
and costs to be incurred in marketing selling and distribution the production cost of inventory 
includes an appropriate proportion of depreciation and production overheads raw materials 
and consumables are valued at cost on a weighted average basis finished products are 
valued at raw material cost plus labour cost and a proportion of production overhead 
expenses including depreciation
m taxation
tax expense comprises the charges or credits for the period relating to both current and 
deferred tax
current tax is based on taxable proﬁt for the year taxable proﬁt may differ from net proﬁt as 
reported in the income statement because it excludes items of income or expense that are 
taxable and deductible in different years and also excludes items that are not taxable or 
deductible the liability for current tax is calculated using tax rates for each entity in the 
consolidated ﬁnancial statements which have been enacted or substantively enacted at the 
balance sheet date
deferred tax is the tax expected to be payable or recoverable on temporary differences 
ie differences between the carrying amount of assets and liabilities in the ﬁnancial statements 
and the corresponding tax basis used in the computation of taxable proﬁt deferred tax is 
accounted for using the balance sheet liability method and is provided on all temporary 
differences with certain limited exceptions as follows
i  tax payable on undistributed earnings of subsidiaries associates and joint ventures is 
provided except where the group is able to control the remittance of proﬁts and it is probable 
that there will be no remittance of past proﬁts earned in the foreseeable future
ii  deferred tax is not provided on the initial recognition of an asset or liability in a transaction 
that does not affect accounting proﬁt or taxable proﬁt and is not a business combination nor 
is deferred tax provided on subsequent changes in the carrying value of such assets and 
liabilities for example where they are depreciated and
iii the initial recognition of any goodwill
deferred tax assets are recognised only to the extent that it is probable that they will be 
recovered through sufﬁcient future taxable proﬁt the carrying amount of deferred tax assets 
is reviewed at each balance sheet date
deferred tax is calculated at the tax rates that are expected to apply in the period when the 
liability is settled or the asset is realised deferred tax is charged or credited in the income 
statement except when it relates to items charged or credited directly to equity in which 
case the deferred tax is also taken directly to equity
n provisions for decommissioning and restoration costs
an obligation to incur decommissioning and restoration costs occurs when environmental 
disturbance is caused by the development or ongoing production of a mining property costs are 
estimated on the basis of a formal closure plan and are subject to regular formal review
such costs arising from the installation of plant and other site preparation work discounted to 
their net present value are provided and capitalised at the start of each project as soon as the 
obligation to incur such costs arises these decommissioning costs are charged against proﬁts 
over the life of the mine through depreciation of the asset and unwinding or amortisation of the 
discount on the provision depreciation is included in operating costs while the unwinding of the 
discount is included as ﬁnancing costs changes in the measurement of a liability relating to the 
decommissioning of plant or other site preparation work are added to or deducted from the cost 
of the related asset in the current period
the costs for restoration of site damage which is created on an ongoing basis during production 
are provided for at their net present values and charged against operating proﬁts as extraction 
progresses changes in the measurement of a liability relating to site damage created during 
production is charged against operating proﬁt
o provision for termination of water concession
under the terms of the water concession from econssa certain items of working capital 
recognised by aguas de antofagasta as described in note 2f above are to be transferred to 
the stateowned operator econssa at the end of the concession period for nil consideration 
provision is made for the estimated net present value of these assets and liabilities which are 
expected to be in existence when the concession comes to an end the unwinding of the 
discount is charged within ﬁnancing costs strategic review other information financial statements governance financial review operational review
95 antofagasta plc annual report and financial statements 2010
p postemployment beneﬁts
the group operates deﬁned contribution schemes for a limited number of employees for such 
schemes the amount charged to the income statement is the contributions paid or payable 
in the year
employment terms may also provide for payment of a severance indemnity when an employment 
contract comes to an end this is typically at the rate of one month for each year of service 
subject in most cases to a cap as to the number of qualifying years of service and based on 
ﬁnal salary level the severance indemnity obligation is treated as an unfunded deﬁned beneﬁt 
plan and the calculation is based on valuations performed by an independent actuary using the 
projected unit credit method which are regularly updated the obligation recognised in the 
balance sheet represents the present value of the severance indemnity obligation actuarial gains 
and losses are immediately recognised in the income statement within operating cost
q cash and cash equivalents
cash and cash equivalents comprise cash on hand deposits held on call with banks highly liquid 
investments that are readily convertible into known amounts of cash and which are subject to 
insigniﬁcant risk of changes in value net of bank overdrafts which are repayable on demand 
cash and cash equivalents normally have a maturity period of 90 days or less
r liquid investments
liquid investments represent highly liquid current asset investments that do not meet the ias 7 
deﬁnition of cash and cash equivalents normally because even if readily accessible the 
underlying investments have an average maturity proﬁle greater than 90 days these assets 
are designated as fair value through proﬁt or loss
s leases
rental costs under operating leases are charged to the income statement account in equal 
annual amounts over the term of the lease
assets under ﬁnance leases are recognised as assets of the group at inception of the lease 
at the lower of fair value or the present value of the minimum lease payments derived by 
discounting at the interest rate implicit in the lease the interest element is charged within 
ﬁnancing costs so as to produce a constant periodic rate of interest on the remaining balance 
of the liability
t other ﬁnancial instruments
financial assets and ﬁnancial liabilities are recognised on the group’s balance sheet when the 
group becomes a party to the contractual provisions of the instrument
i  investments – investments which are not subsidiaries associates or joint ventures are 
initially measured at cost including transaction costs
  investments are classiﬁed as either held for trading or availableforsale and are normally 
measured at subsequent reporting dates at fair value fair value is determined in the manner 
described in note 25b investments in equity instruments that do not have a quoted market 
price in an active market and whose fair value cannot be reliably measured are measured at 
cost securities are classiﬁed as “heldfortrading” when they are acquired principally for the 
purpose of sale in the shortterm and gains and losses arising from changes in fair value 
are included in the income statement for the period other investments are classiﬁed as 
“availableforsale” and gains and losses arising from changes in fair value are recognised 
directly in equity within the “fair value reserve” until the security is disposed of or is 
determined to be impaired at which time the cumulative gain or loss previously recognised 
in equity is included in the income statement for the period dividends on availableforsale 
equity investments are recognised in the income statement when the right to receive 
payment is established
ii  trade and other receivables – trade and other receivables do not generally carry any 
interest and are normally stated at their nominal value less any impairment impairment 
losses on trade receivables are recognised within an allowance account unless the group 
considers that no recovery of the amount is possible in which case the carrying value of the 
asset is reduced directly
iii  trade and other payables – trade and other payables are generally not interestbearing 
and are normally stated at their nominal value
iv  borrowings loans and preference shares – interestbearing loans and bank overdrafts 
are initially recorded at the proceeds received net of direct issue costs they are 
subsequently measured at amortised cost using the effective interest method with interest 
expense recognised on an effective yield basis the effective interest method is a method of 
calculating the amortised cost of a ﬁnancial liability and of allocating interest expense over 
the relevant period the effective interest rate is the rate that exactly discounts estimated 
future cash payments through the expected life of the ﬁnancial liability or where appropriate 
a shorter period finance charges including premiums payable on settlement or redemption 
and direct issue costs are accounted for on an accruals basis using the effective interest 
rate method amounts are either recorded as ﬁnancing costs in the income statement or 
capitalised in accordance with the accounting policy set out in note 2h finance charges 
are added to the carrying amount of the instrument to the extent that they are not settled in 
the period in which they arise the sterlingdenominated preference shares issued by the 
company carry a ﬁxed rate of return without the right to participate in any surplus they are 
accordingly classiﬁed within borrowings and translated into us dollars at periodend rates 
of exchange preference share dividends are included within ﬁnance costs
v  equity instruments – equity instruments issued are recorded at the proceeds received net 
of direct issue costs equity instruments of the company comprise its sterling denominated 
issued ordinary share capital and related share premium as explained in note 2c 
the presentational currency of the group and the functional currency of the company 
is us dollars and ordinary share capital and share premium are translated into us dollars 
at historical rates of exchange based on dates of issue
vi  derivative ﬁnancial instruments – as explained in note 25e the group uses derivative 
ﬁnancial instruments to reduce exposure to foreign exchange interest rate and commodity 
price movements the group does not use such derivative instruments for trading purposes 
the group applies the hedge accounting provisions and changes in the fair value of 
derivative ﬁnancial instruments that are designated and effective as hedges of future cash 
ﬂows are recognised directly in equity with such amounts subsequently recognised in the 
income statement in the period when the hedged item affects proﬁt or loss any ineffective 
portion is recognised immediately in the income statement realised gains and losses on 
commodity derivatives recognised in the income statement are recorded within revenue 
the time value element of changes in the fair value of derivative options is excluded from 
the designated hedging relationship and is therefore recognised directly in the income 
statement within other ﬁnance items derivatives embedded in other ﬁnancial instruments 
or other host contracts are treated as separate derivatives when their risks and 
characteristics are not closely related to those of host contracts and the host contracts are 
not carried at fair value changes in fair value are reported in the income statement for the 
period the treatment of embedded derivatives arising from provisionallypriced commodity 
sales contracts is set out in further detail in note 2d relating to revenue
vii  impairment of ﬁnancial assets – financial assets other than those at fair value through 
proﬁt or loss are assessed for indicators of impairment at each balance sheet date financial 
assets are impaired where there is objective evidence that as a result of one or more events 
that occurred after the initial recognition of the ﬁnancial asset the estimated future cash 
ﬂows of the investment have been impacted for loans and receivables the amount of the 
impairment is the difference between the asset’s carrying value and the present value of 
estimated future cash ﬂows discounted at the original effective interest rate any impairment 
loss is recognised in the income statement immediately
  the carrying amount of the ﬁnancial asset is reduced by the impairment loss directly for all 
ﬁnancial assets with the exception of trade receivables
  with the exception of availableforsale equity instruments if in a subsequent period the 
amount of the impairment loss decreases and the decrease can be related objectively to an 
event occurring after the impairment was recognised the previously recognised impairment 
loss is reversed through the income statement immediately to the extent that the carrying 
amount of the investment at the date the impairment is reversed does not exceed what the 
amortised cost would have been had the impairment not been recognised in respect of 
availableforsale equity instruments any increase in fair value subsequent to an impairment 
loss is recognised directly in equity financial statements
96 antofagasta plc annual report and financial statements 2010
notes to the financial statements continued
3 critical accounting judgements and key sources of estimation 
uncertainty
determining many of the amounts included in the ﬁnancial statements involves the use of 
judgement andor estimation these judgements and estimates are based on management’s 
best knowledge of the relevant facts and circumstances having regard to prior experience but 
actual results may differ from the amounts included in the ﬁnancial statements information 
about such judgements and estimates is included in the principal accounting policies in note 2 
or the other notes to the ﬁnancial statements and the key areas are set out below
a useful economic lives of property plant and equipment and ore reserves estimates
as explained in note 2i mining properties including capitalised ﬁnancing costs are depreciated 
in proportion to the volume of ore extracted in the year compared with total proven and probable 
reserves at the beginning of the year
there are numerous uncertainties inherent in estimating ore reserves and assumptions that 
were valid at the time of estimation may change when new information becomes available 
these include assumptions as to grade estimates and cutoff grades recovery rates commodity 
prices exchange rates production costs capital costs processing and reclamation costs and 
discount rates the actual volume of ore extracted and any changes in these assumptions could 
affect prospective depreciation rates and carrying values
the majority of other items of property plant and equipment are depreciated on a straightline 
basis over their useful economic lives management reviews the appropriateness of useful 
economic lives at least annually and again any changes could affect prospective depreciation 
rates and asset carrying values
b impairment of assets
as explained in note 2j the group reviews the carrying value of its intangible assets and 
property plant and equipment to determine whether there is any indication that those assets are 
impaired in making assessments for impairment assets that do not generate independent cash 
ﬂows are allocated to an appropriate cashgenerating unit “cgu” the recoverable amount 
of those assets or cgu is measured at the higher of their fair value less costs to sell and 
value in use
management necessarily applies its judgement in allocating assets to cgus in estimating the 
probability timing and value of underlying cash ﬂows and in selecting appropriate discount rates 
to be applied within the value in use calculation the key assumptions are set out in note 2j and 
note 5 subsequent changes to cgu allocation or estimates and assumptions in the value in use 
calculation could impact the carrying value of the respective assets
c provisions for decommissioning and site restoration costs
as explained in note 2n provision is made based on net present values for decommissioning 
and site rehabilitation costs as soon as the obligation arises following the development or 
ongoing production of a mining property the provision is based on a closure plan prepared with 
the assistance of external consultants
management uses its judgement and experience to provide for and in the case of capitalised 
decommissioning costs amortise these estimated costs over the life of the mine the ultimate 
cost of decommissioning and site rehabilitation cost is uncertain and cost estimates can vary in 
response to many factors including changes to relevant legal requirements the emergence of 
new restoration techniques or experience at other mine sites
the expected timing and extent of expenditure can also change for example in response to 
changes in ore reserves or processing levels as a result there could be signiﬁcant adjustments 
to the provisions established which would affect future ﬁnancial results
d postemployment beneﬁts
as explained in note 2p the expected costs of severance indemnities relating to employee 
service during the period are charged to the income statement any actuarial gains or losses 
which can arise from differences between expected and actual outcomes or changes in actuarial 
assumptions are recognised immediately within operating costs in the income statement
assumptions in respect of the expected costs are set in consultation with an independent 
actuary these include the selection of the discount rate used service lives and expected rates 
of salary increases while management believes the assumptions used are appropriate a change 
in the assumptions used would impact the earnings of the group
e deferred taxation
as explained in note 2m deferred tax is not provided for future tax payable on undistributed 
earnings where the group is able to control the remittance of proﬁts and it is probable that there 
will be no remittance of past proﬁts earned in the foreseeable future
management uses its judgement in estimating the probability of such remittances these are 
based on group forecasts and include assumptions as to future proﬁts and cash ﬂows 
which depend on several factors including commodity prices operating costs production levels 
capital expenditures interest costs debt repayment and tax rates and cash requirements 
which may also depend on several factors including future dividend levels a change in the 
assumptions used or in the estimate as to the probability that past proﬁts will be remitted would 
impact the deferred tax charge and balance sheet provision strategic review other information financial statements governance financial review operational review
97 antofagasta plc annual report and financial statements 2010
4 revenue and total proﬁt from operations and associates
an analysis of the group’s total revenue is as follows
2010 
usm
2009 
usm
sales of goods 44186  28278 
rendering of services 1585  1348 
group revenue 45771  29626 
other operating income 276  100 
investment income 165  132 
total revenue 46212  29858 
operating proﬁt from subsidiaries and joint ventures and total proﬁt from operations and associates is derived from group revenue by deducting operating costs as follows
2010 
usm
2009 
usm
group revenue 45771  29626 
cost of sales including exceptional item 14756 11668
gross proﬁt 31015  17958 
administrative and distribution expenses 3223 2442
closure provision 696 22
severance charges 161 133
exploration and evaluation expenditure 990 671
other operating income 276  100 
other operating expenses 276 200
operating proﬁt from subsidiaries and joint ventures 25945  14590 
share of income from associates 26 45 
total proﬁt from operations and associates 25919  14635 
in the year ended 31 december 2010 cost of sales includes the reversal of an impairment of us1094 million relating to property plant and equipment at el tesoro see note 5
5 exceptional item
the exceptional item in the year ended 31 december 2010 and its impact on the results are set out below
there were no exceptional items in the year ended 31 december 2009
operating proﬁt proﬁt before tax earnings per share
2010 
usm
2009 
usm
2010 
usm
2009 
usm
2010 
usm
2009 
usm
before exceptional item 24851  14590 24638  14376 1006  677 
reversal of impairment 1094 – 1094 – 61 – 
after exceptional item 25945  14590  25732  14376  1067  677 
reversal of impairment
in the year ended 31 december 2010 the reversal of the remaining us1094 million impairment originally recognised at el tesoro in the year ended 31 december 2008 has been recorded as a 
credit within total operating costs following a review undertaken in light of the current commodity environment the recoverable amounts in the review were determined by a value in use calculation 
prepared using management’s forecasts as to future commodity prices operating costs and production volumes the present value of the forecast future cash ﬂows was calculated using a discount 
rate of 76 initial impairment review – 99 financial statements
98 antofagasta plc annual report and financial statements 2010
notes to the financial statements continued
6 segment information
the group’s reportable segments are as follows
– los pelambres
– el tesoro
– michilla
– esperanza
– exploration and evaluation
– railway and other transport services
– water concession
– corporate and other items
for management purposes the group is organised into three business divisions based on their products – mining railway and other transport services and the water concession the mining 
division is split further for management reporting purposes to show results by mine and exploration and evaluation activity los pelambres el tesoro and michilla are all operating mines and 
esperanza is a mine which was under construction during 2010 los pelambres produces primarily copper concentrate and molybdenum as a byproduct el tesoro and michilla both produce 
copper cathodes the transport division provides rail cargo based in chile and bolivia and road cargo based in chile together with a number of ancillary services based in chile the water division 
produces and distributes potable water to domestic customers and untreated water to industrial customers in chile’s antofagasta region the exploration and evaluation segment incurs exploration 
and evaluation expenses exploration costs relating to tethyan copper company limited “tethyan” are included within the exploration and evaluation segment and all other tethyanrelated costs 
are included within “corporate and other items” corporate and other items also comprise costs incurred by the company and antofagasta minerals sa the group’s mining corporate centre that 
are not allocated to any individual business segment consistent with its internal management reporting the group’s corporate and other items are included within the mining division
management monitors the operating results of business segments separately for the purpose of making decisions about resources to be allocated and of assessing performance 
segment performance is evaluated based on the operating proﬁt of each of the segments
a segment revenues and results
for the year ended 31 december 2010
los 
pelambres 
usm
el tesoro 
usm
michilla 
usm
esperanza 
usm
exploration 
and 
evaluation 
usm
corporate 
and other 
items 
usm
mining 
usm
railway and 
other transport 
services 
usm
water 
concession 
usm
total 
usm
revenue 33483 7397 2420 – – – 43300 1547 924 45771 
ebitda 23750 3549 606 – 990 464 26451 598 670 27719 
depreciation and amortisation 1591 751 89 – – 19 2450 155 165 2770
loss on disposals – 26 13 – – 54 93 05 – 98
impairment reversal – 1094 – – – – 1094 – – 1094 
operating proﬁt 22159 3866 504 – 990 537 25002 438 505 25945 
share of income from associates – – – – – 25 25 01 – 26
investment income 23 18 04 – – 85 130 33 02 165 
interest expense 140 14 – – – 26 180 03 – 183
other ﬁnance items 37 – 151 – – 31 157 13 01 169
proﬁt before tax 22005 3870 357 – 990 472 24770 454 508 25732 
tax 5147 790 88 – – 1336 7361 80 84 7525
noncontrolling interests 6750 949 64 – – 80 7683 06 – 7689
net earnings 10108 2131 205 – 990 1728 9726 368 424 10518 
additions to noncurrent assets
capital expenditure 2159 277 215 10586 – 313 13550 185 123 13858 
segment assets and liabilities
segment assets 36804 9554 1489 25928 – 31443 105218 7978 2682 115878 
segment liabilities 14685 4472 1448 14878 – 4066 39549 498 573 40620 strategic review other information financial statements governance financial review operational review
99 antofagasta plc annual report and financial statements 2010
for the year ended 31 december 2009
los 
pelambres 
usm
el tesoro 
usm
michilla 
usm
esperanza 
usm
exploration 
and 
evaluation 
usm
corporate 
and other 
items 
usm
mining 
usm
railway and 
other transport 
services 
usm
water 
concession 
usm
total 
usm
revenue 20815 4876 1705 – – –27396 1394 836 29626 
ebitda 14089 2317 279 – 671 375 15639 566 602 16807 
depreciation and amortisation 1281 523 55 – – 22 1881 148 146 2175
loss on disposals 01 15 07 – – 11 34 05 03 42
operating proﬁt 12807 1779 217 – 671 408 13724 413 453 14590 
share of income from associate – – – – – 02 02 47 – 45 
investment income 19 27 02 – – 66 114 16 02 132 
interest expense 191 02 – – – 41 234 06 – 240
other ﬁnance items 156 111 41 – – 26 112 50 11 151
proﬁt before tax 12479 1915 178 – 671 411 13490 420 466 14376 
tax 2493 408 61 – – 168 3008 98 71 3177
noncontrolling interests 3995 465 60 – – – 4520 02 – 4522
net earnings 5991 1042 179 – 671 579 5962 320 395 6677 
additions to noncurrent assets
capital expenditure 4754 652 122 7164 – 389 13081 211 61 13353 
additions to intangibles – – – – – – – – 525 525 
segment assets and liabilities
segment assets 34949 7595 1300 18158 – 23646 85648 7034 2423 95105 
segment liabilities 13505 1094 1302 9662 – 2474 28037 417 477 28931
notes to segment revenues and results
i  the accounting policies of the reportable segments are the same as the group’s accounting policies operating proﬁt excludes the share of net loss from associates of us26 million 
year ended 31 december 2009 – income of us45 million operating proﬁt is shown after exceptional items see note 5
ii  intersegment revenues are eliminated on consolidation revenue from the railway and other transport services is stated after eliminating intersegmental sales to the mining division 
of us135 million year ended 31 december 2009 – us116 million revenue from the water concession is stated after eliminating intersegmental sales to the mining division of 
us105 million year ended 31 december 2009 – us86 million and after eliminating sales to the railway and other transport services of us02 million year ended 31 december 
2009 – us02 million the payment of us350 million by el tesoro to antofagasta minerals sa for the right to extract the oxide ores from the mirador deposit has been eliminated on 
consolidation and so does not form part of the above ﬁgures
iii  revenue includes the effect of both ﬁnal pricing and marktomarket adjustments to provisionally priced sales of copper and molybdenum concentrates and copper cathodes further details 
of such adjustments are given in note 25d
iv  revenue includes a realised gain on commodity derivatives at el tesoro of us01 million year ended 31 december 2009 – loss of us200 million and a realised loss at michilla of 
us815 million year ended 31 december 2009 – loss of us458 million further details of such gains or losses are given in note 25e
v the copper and molybdenum concentrate sales are stated net of deductions for tolling charges tolling charges for copper and molybdenum concentrates are detailed in note 25d
vi exceptional items affecting operating proﬁt in 2010 relate to a reversal of the impairment at el tesoro see note 5
vii  capital expenditure represents purchases of property plant and equipment stated on an accruals basis see note 14 and may therefore differ from the amount included in the cash 
ﬂow statement
viii  the assets of the railway and transport services segment includes us531 million relating to the group’s 40 interest in inversiones hornitos sa “inversiones hornitos” which owns the 
150mw hornitos thermoelectric power plant in mejillones under construction in chile’s antofagasta region and us49 million relating to the group’s 30 interest in antofagasta terminal 
internacional sa“ati” which operates a concession to manage installations in the port of antofagasta financial statements
100 antofagasta plc annual report and financial statements 2010
notes to the financial statements continued
6 segment information continued
b entity wide disclosures
revenue by product
2010 
usm
2009 
usm
copper
– los pelambres 29721 18580 
– el tesoro 7397 4876 
– michilla 2420 1705 
molybdenum
– los pelambres 3035 1801 
silver
– los pelambres 293 198 
gold
– los pelambres 434 236 
total mining 43300 27396 
railway and transport services 1547 1394 
water concession 924 836 
45771 29626 
revenue by location of customer
2010 
usm
2009 
usm
europe
– united kingdom – 1481
– switzerland 1065 3481
– rest of europe 6653 3775
latin america
– chile 3223 2782
– rest of latin america 2296 1661
north america
– united states 1766 1518
– rest of north america 39 117
asia paciﬁc
– japan 15831 7849
– china 8781 3928
– rest of asia 6117 3034
45771 29626 
information about major customers
included in revenues arising from los pelambres for the year ended 31 december 2010 are revenues of us7922 million year ended 31 december 2009 – us4382 million and us5691 
million year ended 31 december 2009 – us2823 million which arose from sales to the group’s two largest customers which are the only customers that individually account for more than 10 
of the group’s revenues strategic review other information financial statements governance financial review operational review
101 antofagasta plc annual report and financial statements 2010
noncurrent assets by location of assets
2010 
usm
2009 
usm
chile 63348 51597 
bolivia 325 337 
pakistan 1409 1413 
other 13 110 
65095 53457 
noncurrent assets balance disclosed by location of asset excludes ﬁnancial instruments and deferred tax assets
7 proﬁt for the year
proﬁt for the year is stated after chargingcrediting
2010 
usm
2009 
usm
foreign exchange gains
– included in net ﬁnance costs 96  04 
– included in income tax expense 06  183 
amortisation of intangible asset included in cost of sales 147 124
depreciation of property plant and equipment
– owned assets 2756 2030
– assets held under ﬁnance leases 14 21
property and equipment writtenoff 98 42
reversal of impairments of property plant and equipment exceptional item 1094 – 
cost of inventories recognised as expense 12279 9063
employee beneﬁt expense 2087 1818
auditors’ remuneration
– audit services 08 06
– nonaudit services 06 01
a more detailed analysis of auditors’ remuneration on a worldwide basis is provided below
2010 
us000
2009 
us000
audit and related fees
fees payable to the company’s auditors for the audit of the company’s annual accounts 103 103
fees payable to the company’s auditors and their associates for other services to the group
– the audit of the company’s subsidiaries pursuant to legislation 241 201
– the audit of the company’s subsidiaries as part of the audit of the consolidated ﬁnancial statements 151 126
– the review of the company’s half yearly ﬁnancial report pursuant to legislation 247 215
total audit and related fees 742 645
nonaudit and related services
– tax services 116 44
– other consultancy services 493 62
 1351 751
other consulting services of us493000 includes fees paid in respect of corporate ﬁnance advisory services financial statements
102 antofagasta plc annual report and financial statements 2010
notes to the financial statements continued
8 employee beneﬁt expense
a average number of employees
2010 
number
2009 
number
los pelambres 723  715 
el tesoro 527  475 
michilla 566  491 
esperanza 582  379 
exploration and evaluation 31  31 
corporate and other employees
– chile 188  149 
– united kingdom 8  8 
– other 134  132 
mining 2759  2380 
railway and other transport services 1558  1562 
water concession 280  276 
 4597  4218 
i  the average number of employees for the year includes all the employees of subsidiaries and the group’s share of employees of jointly controlled entities the average number of employees 
does not include contractors who are not directly employed by the group
ii the average number of employees does not include employees from associates
iii the average number of employees includes the executive director but does not include nonexecutive directors
b aggregated remuneration
the aggregated remuneration of the employees included in the table above was as follows
2010 
usm
2009 
usm
wages and salaries 2379 1933
social security costs 77 70
postemployment beneﬁts – severance charge in the year 161 133
 2617 2136
the amounts above relating to esperanza of us530 million 2009 – us318 million have been capitalised strategic review other information financial statements governance financial review operational review
103 antofagasta plc annual report and financial statements 2010
c key management personnel
in accordance with ias 24 key management personnel are those persons having authority and responsibility for planning directing and controlling the activities of the group directly or indirectly 
including any directors executive and nonexecutive of the company from 2010 key management personnel who are not directors have been treated as those responsible for the running of the 
key business divisions of the group and prior year amounts have been restated accordingly
compensation for key management personnel including directors was as follows
2010 
usm
2009 
usm
salaries and shortterm employee beneﬁts 98 70
postemployment beneﬁts – severance charge in the year 01 01
 99 71
disclosures on directors’ remuneration required by schedule 8 of the large and mediumsized companies and group accounts and reports regulations 2008 including those speciﬁed for audit 
by that schedule are included in the remuneration report on pages 81 to 83
9 net finance expense
2010 
usm
2009 
usm
investment revenue
interest receivable  165 132 
interest expense
interest payable 164 234
amortisation of deferred ﬁnance costs 17 04
preference dividends 02 02
 183 240
other ﬁnance items
time value effect of derivatives 161 11
foreign exchange derivatives 61 124
unwinding of discount on provisions 43 28
foreign exchange 96 12 
 169 151
net ﬁnance expense 187 259
an expense of us324 million 2009 – income of us87 million relating to net interest expense and other ﬁnance items at esperanza was capitalised within the development expenditure of that 
project during the year and is consequently not included within the above table financial statements
104 antofagasta plc annual report and financial statements 2010
notes to the financial statements continued
10 taxation
the tax charge for the year comprised the following
2010 
usm
2009 
usm
current tax charge
– corporate tax principally ﬁrst category tax in chile  4374 1616
– mining tax royalty 1473 414
– withholding tax provision 474 04
– exchange gains on corporate tax balances 06  183 
 6315 1851
deferred tax charge
– corporate tax principally ﬁrst category tax in chile  29  912
– mining tax royalty 104 137
– withholding tax provision 1135 277
 1210 1326
total tax charge income tax expense 7525 3177
the rate of ﬁrst category ie corporation tax in chile was 17 for both 2010 and 2009 a temporary increase in the corporate income tax rate for the 2011 and 2012 calendar years to 200 
and 185 respectively was enacted into law in chile on 31 july 2010 
los pelambres el tesoro michilla and esperanza are also subject to a mining tax royalty which is tax deductible ie an allowable expense in determining liability to ﬁrst category tax 
on 12 january 2011 the group voluntarily elected to accept amendments to the mining tax as permitted pursuant to a law enacted in chile on 21 october 2010 between 2010–2012 production 
from los pelambres el tesoro michilla and esperanza mines is subject to a mining tax at a rate of between 4–9 of taxadjusted operating proﬁt based on a sliding scale with the minimum rate 
of 4 applying to operations with a taxadjusted operating proﬁt margin of below 40 and a maximum rate of 9 applying to operations with a taxadjusted operating proﬁt margin of above 75 
production from the tesoro northeast deposit and the runofmine processing at el tesoro is subject to a mining tax at a rate of between 5–14 of taxadjusted operating proﬁt based on a 
sliding scale with the minimum rate of 5 applying to operations with a taxadjusted operating proﬁt margin of below 35 and a maximum rate of 14 applying to operations with a taxadjusted 
operating proﬁt margin of above 85 
in addition to ﬁrst category tax and the mining tax the group incurs withholding taxes on the remittance of proﬁts from chile and deferred tax is provided on undistributed earnings to the extent that 
remittance is probable in the foreseeable future withholding tax is levied on remittances of proﬁts from chile at 35 less ﬁrst category tax already paid accordingly during the year ended 
31 december 2010 the effective tax rate of withholding tax is approximately 18 of the amount remitted or expected to be remitted
2010 2009
usm  usm 
proﬁt before tax 25732 14376
tax at the chilean corporation tax rate of 17 4374 170  2444 170 
tax effect of share of results of associate 07 – 10 01 
effect of items not subject to or deductible from ﬁrst category tax 36  01 74 05 
royalty  1577 61  551 38 
withholding taxes provided in year 1609 63  281 20 
exchange differences 06 –  183  13
tax expense and effective tax rate for the year 7525 292  3177 221 
the tax charge for the year was us7525 million and the effective tax rate was 292 this rate varies from the standard rate principally due to the provision of withholding tax of us1609 million 
and the effect of the mining tax which resulted in a charge of us1577 million in 2009 the total tax charge was us3177 million and the effective tax rate was 221 this rate varies from the 
standard rate principally due to the provision of withholding tax of us281 million the effect of the mining tax which resulted in a charge of us551 million and exchange gains of us183 million 
on chilean peso denominated tax prepayments due to the strengthening of the chilean peso during the year  strategic review other information financial statements governance financial review operational review
105 antofagasta plc annual report and financial statements 2010
11 earnings per share
2010 
usm
2009 
usm
proﬁt for the year attributable to equity holders of the company net earnings 10518 6677
proﬁt for the year attributable to equity holders of the company net earnings – excluding exceptional items 9913 6677
2010 
number
2009 
number
ordinary shares in issue throughout each year 985856695 985856695
2010 
cents
2009 
cents
basic earnings per share 1067 677
basic earnings per share – excluding exceptional items 1006 677
basic earnings per share is calculated as proﬁt after tax and noncontrolling interests based on 985856695 ordinary shares 
there was no potential dilution of earnings per share in either year set out above and therefore diluted earnings per share did not differ from basic earnings per share as disclosed above
basic earnings per share excluding exceptional items is calculated on proﬁt after tax and noncontrolling interest giving net earnings excluding exceptional items and related tax and noncontrolling 
interest of us9913 million
12 dividends
amounts recognised as distributions to equity holders in the year
2010 
usm
2009 
usm
2010 
us cents 
per share
2009 
us cents 
per share
final dividend paid in june proposed in relation to the previous year
– ordinary 592  552  60  56 
– special 1380  4732  140  480 
 1972  5284  200  536 
interim dividend paid in october
– ordinary 394  335  40  34 
 394  335  40  34 
 2366  5619  240  570 
the proposed ﬁnal dividend for each year which is subject to approval by shareholders at the annual general meeting and has therefore not been included as a liability in these ﬁnancial statements 
is as follows
2010 
usm
2009 
usm
2010 
us cents 
per share
2009 
us cents 
per share
final dividend proposed in relation to the year
– ordinary 1183  592  120  60 
– special 9859  1380  1000  140 
 11042  1972  1120  200 
this gives total dividends proposed in relation to 2010 including the interim dividend of 1160 cents per share or us11042 million 2009 – 234 cents per share or us2307 million
in accordance with ias 32 preference dividends have been included within interest expense see note 9 and amounted to us02 million 2009 – us02 million
further details relating to dividends for each year are given in the directors’ report on page 72 financial statements
106 antofagasta plc annual report and financial statements 2010
notes to the financial statements continued
13 intangible assets
concession 
rights  
usm
exploration 
licences 
usm
total 
intangible 
assets
usm
cost
at 1 january 2009 1443  1257  2700 
additions 525 –  525 
foreign currency exchange difference 483 –  483 
at 31 december 2009 and 1 january 2010 2451  1257  3708 
reclassiﬁcation 53 –  53 
disposal see note 32 –  50 50
foreign currency exchange difference 209 – 209 
at 31 december 2010 2713  1207  3920 
amortisation
at 1 january 2009 364 –  364
charge for the year 124 –  124
foreign currency exchange difference 108 –  108
at 31 december 2009 and 1 january 2010 596 –  596
charge for the year 147 –  147
foreign currency exchange difference 62 –  62
at 31 december 2010 805 –  805
net book value
at 31 december 2010 1908  1207  3115 
at 31 december 2009 1855  1257  3112 
the concession rights relates to the 30year concession to operate the water rights and facilities in the antofagasta region of chile which the group’s whollyowned subsidiary aguas de antofagasta sa 
acquired in december 2003 and any other subsequent additions or acquisitions subject to the terms of the concession this intangible asset is being amortised on a straightline basis over the life of the 
concession or the useful life of any component part if less
the exploration licences relate to the us1207 million value attributed to the exploration licences in the reko diq area of southwest pakistan this asset is subject to the grant of a mining lease for which 
an application has been made and the successful conclusion of litigation as set out in note 38 this intangible asset will be amortised in accordance with the group’s policy for mining properties when the 
related mining properties enter into production 
after evaluation of the results of the exploration activities to date the group has decided not to proceed further with the partnership with teal exploration  mining incorporated “teal ” and accordingly 
has withdrawn from the agreement the us50 million disposal relates to the group’s interests in the mining licences relating to the project with teal further details are disclosed in note 32  strategic review other information financial statements governance financial review operational review
107 antofagasta plc annual report and financial statements 2010
14 property plant and equipment
land and 
mining 
properties 
usm
buildings and 
infrastructure 
usm
railway 
track 
usm
wagons and 
rolling stock 
usm
machinery 
equipment and 
others 
usm
assets under 
construction 
usm
total 
usm
cost
at 1 january 2009 8752  17997  482  1103  15749  6616  50699 
additions 301  59  –  36  833  12124  13353 
provisions capitalised –  –  –  –  1051  –  1051 
reclassiﬁcations –  2416  –  71  1210  3697 – 
asset disposals 10 98 –  20 –  65 193
foreign currency exchange difference 09  52  –  32  106  15  214 
at 31 december 2009 and 1 january 2010 9052  20426  482  1222  18949  14993  65124 
additions 51  01  –  53  1481  12231  13817 
acquisition of subsidiary 41  –  –  –  –  –  41 
provisions capitalised –  –  –  –  444  –  444 
reclassiﬁcations 32 3837  152  51  6486  10707 213
asset disposals –  18 –  19 68 16 121
foreign currency exchange difference 02  32  –  15  43  13  105 
at 31 december 2010 9114  24278  634  1322  27335  16514  79197 
accumulated depreciation and impairment
at 1 january 2009 2805 4272 92 498 6195 40 13902
charge for the year 768 873 17 92 301 –  2051
depreciation capitalised –  07 –  –  476 –  483
asset disposals –  24  –  15  112  –  151 
foreign currency exchange difference –  81 –  16 10 –  107
at 31 december 2009 and 1 january 2010 3573 5209 109 591 6870 40 16392
charge for the year 709 1074 17 97 726 –  2623
depreciation capitalised –  67 –  –  292 –  359
impairments reverse 472  332  –  –  290  –  1094 
asset disposals –  08  –  16  49  –  73 
foreign currency exchange difference –  41 –  09 06 –  56
at 31 december 2010 3810 6051 126 681 7555 40 18263
net book value
at 31 december 2010 5304  18227  508  641  19780  16474  60934 
at 31 december 2009 5479  15217  373  631  12079  14953  48732 
assets under ﬁnance leases included in the totals above
net book value
at 31 december 2010 –  390  –  –  38  –  428 
at 31 december 2009 –  406  –  –  69  –  475 
the group has pledged assets with a carrying value of us5852 million 2009 – us4036 million as security against bank loans provided to the group
at 31 december 2010 the group had entered into contractual commitments for the acquisition of property plant and equipment amounting to us606 million 2009 – us4951 million 
commitments at 31 december 2010 included us269 million 2009 – us4285 million relating to the esperanza project and us215 million 2009 – us492 million relating to the plant 
expansion project at los pelambres
compensation from insurance companies related to property plant and equipment included in the consolidated income statement was us05 million in 2010 2009 – us69 million
during 2010 depreciation capitalised includes us232 million 2009 – us242 million in respect of assets relating to the esperanza project which have been capitalised within the development 
expenditure of that project us60 million 2009 – us241 million of depreciation in respect of assets relating to the rom and tesoro northeast projects which have been capitalised within 
inventories and us67 million 2009 – nil of depreciation in respect of assets relating to los pelambres which have been capitalised within inventories and accordingly is excluded from 
the depreciation charge recorded in the income statement as shown in note 6a financial statements
108 antofagasta plc annual report and financial statements 2010
notes to the financial statements continued
15 investment property
cost
2010 
usm
2009 
usm
balance at the beginning of the year 34 27 
foreign currency exchange difference 03 07 
balance at the end of the year 37 34 
investment property represents the group’s forestry properties which are held for longterm potential and accordingly classiﬁed as investment property and held at cost as permitted by ias 40 
the fair value of the group’s investment property at 31 december 2010 was us110 million 2009 – us110 million based on an independent valuation carried out during 2008 by gabriel 
durán who is not connected with the group mr durán is a forestry engineer valuer and assessor of forestry properties for banco itau in chile with extensive experience of valuation in the region 
where the assets are located the valuation was based on market evidence of transaction prices for similar properties
direct operating expenses principally ongoing maintenance costs arising on these properties amounted to us03 million 2009 – us02 million
16 investments in subsidiaries
the principal subsidiaries of the group the percentage of equity owned and the main country of operation are set out below these interests are consolidated within these ﬁnancial statements 
the group has restricted the information to its principal subsidiaries as full compliance with section 409 of the companies act 2006 would result in a statement of excessive length a full list 
of subsidiaries joint ventures and associates will be annexed to the next annual return of antofagasta plc to be ﬁled with the registrar of companies
country of incorporation country of nature of business economic interest
direct subsidiaries of the parent company
antofagasta railway company plc great britain chile railway 100
minera anaconda perú sa peru peru mining 100
chilean northem mines limited great britain chile investment 100
sierra gorda investment company limited jersey jersey investment 100
indirect subsidiaries of the parent company
antofagasta minerals sa chile chile mining 100
minera los pelambres chile chile mining 60
minera el tesoro chile chile mining 70
minera michilla sa chile chile mining 742
minera esperanza chile chile mining 70
equatorial mining limited australia chile mining 100
antofagasta services limited great britain great britain group services 100
los pelambres investment company limited jersey jersey investment 100
inversiones los pelambres chile limitada chile chile investment 100
aguas de antofagasta sa chile chile water distribution 100
atacama aguas y tecnología limitada chile chile water distribution 100
servicios de transportes integrados limitada chile chile road transport 100
empresa ferroviaria andina sa bolivia bolivia railway 50
minera mulpún limitada chile chile mining 100
minera antucoya limitada chile chile mining 100
twin metals minnesota llc usa usa mining 40
forestal sa chile chile forestry 100
the group exercises management control over the boards of empresa ferroviaria andina sa and twin metals minnesota llc accordingly these investments are treated as subsidiaries and are 
consolidated in these group ﬁnancial statements strategic review other information financial statements governance financial review operational review
109 antofagasta plc annual report and financial statements 2010
17 investment in associates
inversiones 
hornitos 
2010 
usm
ati 
2010 
usm
sunridge 
2010 
usm
total 
associates 
2010 
usm
total 
associates 
2009 
usm
balance at the beginning of the year 1127 38 48 1213 30 
acquisitions – – – – 859 
disposals – – 23 23 – 
capital reductionscontributions 572 – – 572 286 
interest expense capitalised by associate payable to subsidiary 04 – – 04 – 
share of net lossproﬁt before tax 18 24 25 19 55 
share of tax 02 05 – 07 10
share of lossincome from associates 20 19 25 26 45 
dividends received – 08 – 08 07
balance at the end of the year 531 49 – 580 1213
the investments which are included in the us580 million balance at 31 december 2010 are set out below 
i the group’s 40 interest in inversiones hornitos sa which owns the 150mw hornitos thermoelectric power plant in mejillones in chile’s antofagasta region 
ii the group’s 30 interest in ati which operates a concession to manage installations in the port of antofagasta
during december 2010 the group sold its 178 interest in sunridge gold corp “sunridge” for us175 million resulting in a gain of us151 million although the group held less than a 20 
interest in sunridge the group’s representation on the board of directors of sunridge gave it signiﬁcant inﬂuence over the entity and it was therefore accounted for as an associate 
during 2010 a capital restructuring of inversiones hornitos took place with the fcab’s previous capital contributions being reduced by us572 million and replaced with loan ﬁnancing from the 
fcab with the fcab contributing us786 million of further loan ﬁnancing to inversiones hornitos during the year the balance due from inversiones hornitos to the group at 31 december 2010 
was us1011 million year ended 31 december 2009 – us225 million
the group’s share of the summarised ﬁnancial information of investment in associates is as follows
inversiones 
hornitos 
2010 
usm
ati 
2010 
usm
total 
associates 
2010 
usm
total 
associates 
2009 
usm
total assets net of fair value adjustments 3862 614 4476 1459 
total liabilities 2580 432 3012 246
revenue – 115 115 86 
proﬁt after tax and minorities 50 63 13 45  financial statements
110 antofagasta plc annual report and financial statements 2010
notes to the financial statements continued
18 joint venture agreements
a tethyan copper company limited
in 2006 the group acquired 100 of the issued share capital of tethyan copper company limited “tethyan” for cash consideration including transaction costs of us1704 million 
in the same year the group subsequently entered into a joint venture agreement with barrick gold corporation “barrick gold” to establish a 5050 joint venture in relation to tethyan’s mineral 
interests in pakistan
from the date of incorporation to 2010 tethyan was wholly engaged in mineral exploration and evaluation activities and did not generate any revenue tethyan’s operating loss resulting during 
the year was us255 million 2009 – us596 million which relates mainly to exploration and evaluation costs expensed in accordance with the group’s accounting policy and of which 50 
is attributable to the group further progress in this project is subject to the grant of a mining lease for which an application has been made and the successful conclusion of litigation as set out 
in note 38
the following amounts represent the group’s 50 share of the assets and liabilities and results of the jointly controlled entity and are included in the consolidated balance sheet and in the 
consolidated income statement of the group under the proportionate consolidation method
2010 
usm
2009 
usm
total noncurrent assets 1372 1377 
total current assets 32 46 
total current liabilities 39 52
total noncurrent liabilities 03 02
group’s share of jointly controlled entity’s net assets 1362 1369 
operating loss 128 298
net ﬁnance income 01 – 
tax – – 
group’s share of jointly controlled entity’s results 127 298
in addition to these amounts the group incurred us40 million 2009 – us35 million relating to tethyan which is included in corporate and other items
b energía andina sa
in october 2008 energía andina sa was formed as a vehicle for the exploration and exploitation of potential sources of geothermal energy the company is 60 owned by the group and 40 
owned by empresa nacional del petróleo “enap” of chile control over the key operational and ﬁnancial decisions in respect of the company are jointly exercised by the group and enap  
and accordingly the company is accounted for as a jointly controlled entity with results included in the consolidated balance sheet and in the consolidated income statement of the group under 
the proportionate consolidation method
in 2010 and 2009 energía andina sa was wholly engaged in geothermal exploration and evaluation activities and did not generate any revenue in the period after its incorporation the operating 
loss resulting from energía andina sa for the year was us67 million 2009 – us24 million which relates mainly to exploration and evaluation costs expensed in accordance with the group’s 
accounting policy and of which 60 is attributable to the group
the following amounts represent the group’s 60 share of the assets and liabilities and results of the jointly controlled entity and are included in the consolidated balance sheet and in the 
consolidated income statement of the group under proportional consolidated method
2010 
usm
2009 
usm
total current assets 41 73 
group’s share of jointly controlled entity’s net assets 41 73 
operating loss 40 15
group’s share of jointly controlled entity’s results 40 15 strategic review other information financial statements governance financial review operational review
111 antofagasta plc annual report and financial statements 2010
19 availableforsale investments
2010 
usm
2009 
usm
balance at the beginning of the year 12  07 
additions 129  – 
movements in fair value 68  05 
foreign currency exchange difference 09  – 
balance at the end of the year 218  12 
availableforsale investments represent those investments which are not subsidiaries associates or joint ventures and are not held for trading purposes 
the investments which are included in the us218 million balance at 31 december 2010 are set out below 
i  us193 million relating to the market value of shares in duluth metals limited which were acquired as part of the nokomis transaction detailed in note 31 the fair value of these shares 
increased by us55 million during the year 
ii  us25 million relating to the market value of shares in panoro minerals limited which were acquired as part consideration for the disposal in 2008 of the group’s share of the joint venture entity 
cordillera de las minas sa the fair value of these shares increased by us13 million during the year 2009 – an increase of us05 million
20 inventories
2010 
usm
2009 
usm
raw materials and consumables 1064  575 
workinprogress 2340  1660 
finished goods 446  166 
 3850  2401 
workinprogress includes the following balances which are expected to be processed more than 12 months after the balance sheet date
i us294 million 2009 – us300 million relating to longterm inventories at los pelambres
ii us45 million 2009 – us52 million relating to high carbonate ore inventories at el tesoro  financial statements
112 antofagasta plc annual report and financial statements 2010
notes to the financial statements continued
21 trade and other receivables
due in one year due after one year total
2010 
usm
2009 
usm
2010 
usm
2009 
usm
2010 
usm
2009 
usm
trade debtors 7041  4010 05  09  7046  4019 
other debtors 2696  2076 424  357  3120  2433 
 9737  6086  429  366  10166  6452 
there is no signiﬁcant concentration of credit risk with respect to trade receivables as the exposure is spread over a large number of customers the average credit period given on sale of goods 
and rendering of service is 55 days 2009 – 49 days there is no material element which is interestbearing trade debtors include marktomarket adjustments in respect of provisionally priced 
sales of copper and molybdenum concentrates which remain open as to ﬁnal pricing where these have resulted in credit balances these have been reclassiﬁed to trade creditors 
movements in the provision for doubtful debts were as follows
2010 
usm
2009 
usm
balance at the beginning of the year 30 23
charge for the year 03 06
unused amounts reversed 01  01 
foreign currency exchange difference 02 02
balance at the end of the year 34 30
the ageing analysis of the trade receivables balance is as follows
past due but not impaired
neither past due nor 
impaired 
usm
up to 3 months  
past due 
usm
3–6 months 
past due 
usm
more than  
6 months past due  
usm
total 
usm
2010 10056 98 05 07 10166
2009 6357 68 26 01 6452
with respect to the trade receivables that are neither past due nor impaired there are no indications that the debtors will not meet their payment obligations the carrying value of the trade receivables 
recorded in the ﬁnancial statements represents their maximum exposure to credit risk the group does not hold any collateral as security
other debtors include us185 million 2009 – us529 million relating to prepayments for the purchase of property plant and equipment
22 cash cash equivalents and liquid investments
the fair value of cash cash equivalents and liquid investments are not materially different from the carrying values presented the credit risk on cash and cash equivalents is limited because 
the counterparties are banks with high credit ratings assigned by international creditrating agencies
cash cash equivalents and liquid investments was comprised of
2010 
usm
2009 
usm
cash and cash equivalents restated – see note 1 27347  25905 
liquid investments restated – see note 1 8069  6318 
 35416  32223 
us509 million 2009 – nil of cash is held in escrow accounts and is subject to certain legal restrictions
the currency exposure of cash cash equivalents and liquid investments was as follows
2010 
usm
2009 
 usm
us dollars 34455  30064 
chilean pesos 662  1908 
australian dollars 287  232 
sterling 05  12 
other 07  07 
 35416  32223 
details of crosscurrency swaps in place at the end of the year end are given in note 25eiii strategic review other information financial statements governance financial review operational review
113 antofagasta plc annual report and financial statements 2010
23 borrowings
a analysis by type of borrowing
borrowings may be analysed by business segment and type as follows
notes
2010 
usm
2009 
usm
los pelambres 
corporate loans i 6252 5769
shortterm loans ii –  2450
el tesoro 
corporate loan iii 2964 – 
finance leases iv 02 03
michilla 
finance leases v –  15
esperanza 
project ﬁnancing vi 10087 6776
subordinated debt vii 2124 661
finance leases viii 43 118
corporate and other items 
finance leases ix 395 376
railway and other transport services 
loans x 63 66
water concession 
finance leases xi 04 – 
other 
preference shares xii 31 32
total  21965 16266
i  corporate loans at los pelambres are unsecured and us dollar denominated the balance of us6252 million represents syndicated loans of us6315 million less deferred ﬁnancing costs 
of us63 million these loans have a remaining term between ﬁve and seven years and have an interest rate of libor sixmonth plus margins between 09 – 16 
ii   shortterm loans at los pelambres outstanding at 31 december 2009 were repaid during the year ended 31 december 2010
iii   the corporate loan at el tesoro are us dollar denominated the balance of us2964 million represents the us3000 million drawn down net of deferred ﬁnancing costs of us36 million 
this loan has approximately ﬁve years remaining with an interest rate over the life of the loan of libor sixmonth plus 12
iv   finance leases at el tesoro are us dollar denominated and are ﬁxed rate with an average interest rate of 109
v   finance leases at michilla were repaid during the year
vi   the project ﬁnancing at esperanza is us dollar denominated the balance of us10087 million represents the us10500 million drawn down net of deferred ﬁnancing costs of 
us413 million this loan has approximately 12 years remaining with an interest rate over the life of the loan of libor sixmonth rate plus margins of between 1375 – 3000 
  the group has used interest rate swaps to swap the ﬂoating rate interest for ﬁxed rate interest at 31 december 2010 the group had entered into contracts for a maximum notional amount 
of us7878 million at a weighted average ﬁxed rate of 1353 maturing in february 2011 and a maximum notional amount of us8400 million at a weighted average ﬁxed rate of 3372 
maturing in february 2018
vii   this balance includes longterm subordinated debt provided to esperanza by marubeni corporation with a duration of eight years and weighted average interest rate of libor sixmonths plus 
375 longterm subordinated debt provided by group companies to esperanza has been eliminated on consolidation
viii  finance leases at esperanza are denominated in us dollars chilean pesos and unidades de fomento ie inﬂationlinked chilean pesos with a maximum remaining duration of four years and 
ﬁxed rate with an average interest rate at approximately libor threemonth rate plus 28 
ix  finance leases at corporate and other items are denominated in unidades de fomento ie inﬂationlinked chilean pesos and have a remaining duration of 19 years and a ﬁxed rate of 529
x  railway and other transport services includes a balance of us60 million related with bonds issued in the bolivian stock market to reﬁnance shortterm loans with a ﬁxed interest rate of 55 
and duration of ﬁve years the balance at 31 december 2010 also includes customer advances of us02 million 
xi  finance leases at the water concession are denominated in unidades de fomento ie inﬂationlinked chilean pesos and have a remaining duration of 25 years and a ﬁxed rate of 70 
xii  the preference shares are sterlingdenominated and issued by the company there were 2000000 shares of £1 each authorised issued and fully paid at 31 december 2010 the preference 
shares are nonredeemable and are entitled to a ﬁxed cumulative dividend of 5 per annum on windingup they are entitled to repayment and any arrears of dividend in priority to ordinary 
shareholders but are not entitled to participate further in any surplus each preference share carries 100 votes in any general meeting of the company financial statements
114 antofagasta plc annual report and financial statements 2010
notes to the financial statements continued
23 borrowings continued
b analysis of borrowings by currency
the exposure of the group’s borrowings to currency risk is as follows
at 31 december 2010
pesos 
usm
sterling 
usm
us dollars 
usm
2010 
total 
usm
corporate loans – – 19303 19303
other loans including shortterm loans – – 2187 2187
finance leases 444 – –  444
preference shares – 31 –  31
 444 31 21490 21965
at 31 december 2009
pesos 
usm
sterling 
usm
us dollars 
usm
2009 
total 
usm
corporate loans –  –  12545 12545
other loans including shortterm loans –  –  3177 3177
finance leases 433 –  79 512
preference shares –  32 –  32
 433 32 15801 16266
c analysis of borrowings by type of interest rate
the exposure of the group’s borrowings to interest rate risk is as follows
at 31 december 2010
fixed  
usm
floating 
usm
2010 
total 
usm
corporate loans – 19303 19303
other loans including shortterm loans 63 2124 2187
finance leases 444 –  444
preference shares 31 –  31
 538 21427 21965
at 31 december 2009
fixed  
usm
floating 
usm
2009 
total 
usm
corporate loans –  12545 12545
other loans including shortterm loans –  3177 3177
finance leases 512 –  512
preference shares 32 –  32
 544 15722 16266
the above ﬂoating rate corporate loans include the project ﬁnancing at esperanza where the group has used interest rate swaps to swap the ﬂoating rate interest for ﬁxed rate interest 
at 31 december 2010 the group had entered into contracts for a maximum notional amount of us7878 million at a weighted average ﬁxed rate of 1353 maturing in february 2011 
and a maximum notional amount of us8400 million at a weighted average ﬁxed rate of 3372 maturing in february 2018
d maturity proﬁle
the maturity proﬁle of the group’s borrowings is as follows
at 31 december 2010
within  
1 year 
usm
between  
1–2 years 
usm
between  
2–5 years 
usm
after  
5 years 
usm
2010 
total 
usm
corporate loans 1346 3293 8539 6125 19303
other loans 02 15 46 2124 2187
finance leases 28 37 65 314 444
preference shares – – – 31 31
 1376 3345 8650 8594 21965 strategic review other information financial statements governance financial review operational review
115 antofagasta plc annual report and financial statements 2010
at 31 december 2009
within  
1 year 
usm
between  
1–2 years 
usm
between  
2–5 years 
usm
after  
5 years 
usm
2009 
total 
usm
corporate loans 1765 1001 8273 1506 12545
other loans including shortterm loans 2500 16 –  661 3177
finance leases 53 85 75 299 512
preference shares –  –  –  32 32
 4318 1102 8348 2498 16266
the amounts included above for ﬁnance leases are based on the present value of minimum lease payments
the total minimum lease payments for these ﬁnance leases may be analysed as follows
2010 
usm
2009 
usm
within 1 year 50 74
between 1–2 years 57 119
between 2–5 years 118 105
after 5 years 431 420
total minimum lease payment 656 718
less amounts representing ﬁnance charges 212  206 
present value of minimum lease payment 444 512
all leases are on a ﬁxed payment basis and no arrangements have been entered into for contingent rental payments
e borrowings facilities
the undrawn committed borrowing facilities available at the end of each year in respect of which all conditions precedent had been met at those dates were as follows
2010 
usm
2009 
usm
expiring in 1 year or less 9891 11394 
expiring in more than 1 but not more than 2 years 1034 20 
expiring in more than 2 years – – 
10925 11414 
the available facilities comprise general working capital facilities at the group’s operating subsidiaries all of which were undrawn at the end of each year of these facilities us9554 million 
2009 – us6889 million are denominated in us dollars us688 million 2009 – us206 million in unidades de fomento ie inﬂationlinked chilean pesos nil 2009 – us30 million 
in euro and us683 million 2009 – us930 million in chilean pesos
in 2009 the balance of us11414 million included the undrawn element of esperanza project ﬁnance facility
24 trade and other payables
due in one year due after one year total
2010 
usm
2009 
usm
2010 
usm
2009 
usm
2010 
usm
2009 
usm
trade creditors 2785 2544 – – 2785 2544
other creditors and accruals 2263 1832 47 123 2310 1955
 5048 4376 47 123 5095 4499
trade creditors and accruals principally comprise amounts outstanding for trade purchases and ongoing costs
the average credit period taken for trade purchases is 32 days 2009 – 40 days financial statements
116 antofagasta plc annual report and financial statements 2010
notes to the financial statements continued
25 financial instruments and financial risk management
a categories of ﬁnancial instruments
the group’s ﬁnancial instruments grouped according to the categories deﬁned in ias 39 
“financial instruments recognition and measurement” were as follows
2010 
usm
2009 
usm
financial assets
derivatives in designated hedge accounting relationships 18  17 
availableforsale investments 218  12 
loans and receivables including cash and cash equivalents 37513  32357 
fair value through proﬁt and loss restated 8069  6318 
financial liabilities
derivatives in designated hedge accounting relationships 1137 857
financial liabilities measured at amortised cost 27060 20765
 17621  17082 
b fair value of ﬁnancial instruments
the fair values of ﬁnancial assets and ﬁnancial liabilities are determined as follows
–  the fair values of ﬁnancial assets and ﬁnancial liabilities with standard terms and conditions 
and traded on active liquid markets are determined with reference to quoted market prices
–  the fair values of other ﬁnancial assets and ﬁnancial liabilities excluding derivative instruments 
are determined in accordance with generally accepted pricing models based on discounted 
cash ﬂow analysis using prices from observable current market transactions and
–  the fair values of derivative instruments are calculated using quoted prices where such prices 
are not available use is made of discounted cash ﬂow analysis based on the applicable yield 
curve for the duration of the instruments for nonoptional derivatives and option pricing 
models for optional derivatives
the fair value of each category of ﬁnancial asset and liability is not materially different from 
the carrying values presented for either 2010 or 2009
the following table provides an analysis of the ﬁnancial instruments that are measured 
subsequent to initial recognition at fair value grouped into levels 1 to 3 based on the degree 
to which the fair value is observable
–  level 1 fair value measurements are those derived from quoted prices unadjusted in active 
markets for identical assets or liabilities
–  level 2 fair value measurements are those derived from inputs other than quoted prices 
included within level 1 that are observable for the asset or liability either directly ie as 
prices or indirectly ie derived from prices and
–  level 3 fair value measurements are those derived from valuation techniques that 
include inputs for the asset or liability that are not based on observable market data 
unobservable inputs
level 1 
usm
level 2 
usm
level 3 
usm
total  
2010 
usm
total  
2009 
usm
financial assets
derivatives in designated hedge accounting relationships –  18  –  18  17 
availableforsale investments 218  –  –  218  12 
debtors marktomarket –  1301  –  1301  628 
fair value through proﬁt and loss restated 8069  –  –  8069  6318 
financial liabilities
derivatives in designated hedge accounting relationships –  1137 –  1137 857
creditors marktomarket –  06 –  06 – 
 8287  176  –  8463  6118 
there were no transfers between level 1 and 2 during the year
c financial risk management
the group’s activities expose it to a variety of ﬁnancial risks market risk including commodity 
price risk currency risk interest rate risk and other price risk credit risk and liquidity risk 
the group uses derivative ﬁnancial instruments to reduce exposure to commodity price foreign 
exchange and interest rate movements the group does not use such derivative instruments 
for speculative trading purposes 
the board of directors is responsible for overseeing the group’s risk management framework 
the board has established the risk management committee which is responsible for developing 
and monitoring the group’s risk management policies internal audit undertakes both regular and 
ad hoc reviews of risk management controls and procedures the results of which are reported 
to the risk management committee
i commodity price risk
the group generally sells its copper and molybdenum concentrate and copper cathodes output 
at prevailing market prices subject to ﬁnal pricing adjustments which may be 30 to 120 days 
after delivery to the customer and it is therefore exposed to changes in market prices for copper 
and molybdenum both in respect of future sales and previous sales which remain open as to 
ﬁnal pricing in 2010 sales of copper and molybdenum concentrate and copper cathodes 
represented 930 of group turnover and therefore revenues and earnings depend 
signiﬁcantly on lme and realised copper prices
the group uses futures minmax instruments and options to manage its exposure to copper 
prices these instruments may give rise to accounting volatility due to ﬂuctuations in their 
fair value prior to the maturity of the instruments details of those copper and molybdenum 
concentrate sales and copper cathode sales which remain open as to ﬁnal pricing are given 
in note 25d details of commodity rate derivatives entered into by the group are given 
in note 25e 
commodity price sensitivity
the sensitivity analysis below shows the impact of a movement in the copper price on the 
ﬁnancial instruments held as at the reporting date a movement in the copper forward price as at 
the reporting date will affect the ﬁnal pricing adjustment to sales which remain open at that date 
impacting the trade receivables balance and consequently the income statement a movement 
in the copper forward price will also affect the valuation of commodity derivatives impacting the 
hedging reserve in equity if the fair value movement relates to an effective designated cash ﬂow 
hedge and impacting the income statement if it does not the calculation assumes that all other 
variables such as currency rates remain constant
–  if the copper forward price as at the reporting date had increased by 10 cents net earnings 
would have increased by us61 million 2009 – us02 million and hedging reserves in 
equity would have decreased by us349 million 2009 – us138 million
–  if the copper forward price as at the reporting date had decreased by 10 cents net earnings 
would have decreased by us54 million 2009 – us04 million and hedging reserves in 
equity would have increased by us292 million 2009 – us130 million
in addition a movement in the average copper price during the year would impact revenue 
and earnings a 10 cents change in the average copper price during the year would affect net 
earnings by us557 million 2009 – us488 million and earnings per share by 56 cents 
2009 – 50 cents based on production volumes in 2010 without taking into account the 
effects of provisional pricing and hedging activity a us1 change in the average molybdenum 
price for the year would affect net earnings by us89 million 2009 – us82 million and 
earnings per share by 09 cents 2009 – 08 cents based on production volumes in 2010 
and without taking into account the effects of provisional pricing strategic review other information financial statements governance financial review operational review
117 antofagasta plc annual report and financial statements 2010
ii currency risk
the group is exposed to a variety of currencies the us dollar however is the currency in 
which the majority of the group’s sales are denominated operating costs are inﬂuenced by 
the countries in which the group’s operations are based principally in chile as well as those 
currencies in which the costs of imported equipment and services are determined after the 
us dollar the chilean peso is the most important currency inﬂuencing costs and to a lesser 
extent sales 
given the signiﬁcance of the us dollar to the group’s operations this is the presentational 
currency of the group for internal and external reporting the us dollar is also the currency for 
borrowing and holding surplus cash although a portion of this may be held in other currencies 
notably chilean pesos and sterling to meet shortterm operational and capital commitments 
and dividend payments 
when considered appropriate the group uses forward exchange contracts and currency 
swaps to limit the effects of movements in exchange rates in foreign currency denominated 
assets and liabilities the group may also use these instruments to reduce currency exposure 
on future transactions and cash ﬂows details of any exchange rate derivatives entered by the 
group in the year are given in note 25e
the currency exposure of the group’s cash cash equivalents and liquid investments is 
given in note 22 and the currency exposure of the group’s borrowings is given in note 23 
the effect of exchange gains and losses included in the income statement are given in note 7 
exchange differences on translation of the net assets of entities with a functional currency other 
than the us dollar the most material of which is aguas de antofagasta sa are taken to the 
currency translation reserve and are disclosed in the consolidated statement of changes in 
equity on page 89 
currency sensitivity
the sensitivity analysis below shows the impact of a movement in the us dollarchilean peso 
exchange rate on the ﬁnancial instruments held as at the reporting date 
the impact on proﬁt or loss is as a result of the retranslation of monetary ﬁnancial instruments 
including cash trade receivables trade payables current tax balances and borrowings 
the impact on equity is as a result of changes in the fair value of derivative instruments which 
are effective designated cash ﬂow hedges and changes in the fair value of availableforsale 
equity investments the calculation assumes that all other variables such as interest rates 
remain constant
if the us dollar had strengthened by 10 against the chilean peso as at the reporting date 
net earnings would have decreased by us21 million 2009 – us40 million there would 
have been no additional impact on equity if the us dollar had weakened by 10 against the 
chilean peso as at the reporting date net earnings would have increased by us26 million 
2009 – us49 million increase there would have been no additional impact on equity
iii interest rate risk
the group’s policy is generally to borrow and invest cash at ﬂoating rates fluctuations in interest 
rates may impact the group’s net ﬁnance income or cost and to a lesser extent on the value 
of ﬁnancial assets and liabilities the group occasionally uses interest rate swaps and collars to 
manage interest rate exposures on a portion of its existing borrowings details of any interest 
rate derivatives entered into by the group are given in note 25e
interest rate exposure of the group’s borrowings is given in note 23 
interest rate sensitivity
the sensitivity analysis below shows the impact of a movement in interest rates in relation to 
the ﬁnancial instruments held as at the reporting date the impact on proﬁt or loss is as a result 
of the effect on interest expense in respect of ﬂoating rate borrowings and interest income in 
respect of cash and cash equivalents the impact on equity is as a result of changes in the fair 
value of derivative instruments which are effective designated cash ﬂow hedges the calculation 
assumes that all other variables such as currency rates remain constant
if the interest rate increased by 1 based on the ﬁnancial instruments held as at the reporting 
date net earnings would have increased by us199 million 2009 – us123 million and 
hedging reserves in equity would have increased by us105 million 2009 – us136 million 
this does not include the effect on the income statement of changes in the fair value of the 
group’s liquid investments relating to the underlying investments in ﬁxed income instruments
iv other price risk
the group is exposed to equity price risk on its availableforsale equity investments 
equity price sensitivity
the sensitivity analysis below shows the impact of a movement in the equity values of the 
availableforsale ﬁnancial assets held as at the reporting date
if the value of the availableforsale investments had increased by 10 as at the reporting date 
equity would have increased by us22 million 2009 – us01 million there would have been 
no impact on the income statement
v cash ﬂow risk
the group’s future cash ﬂows depend on a number of factors including commodity prices 
production and sales levels operating costs capital expenditure levels and ﬁnancial income 
and costs its cash ﬂows are therefore subject to the exchange interest rate and commodity 
price risks described above as well as operational factors and input costs further information 
on production and sales levels and operating costs are given in the operational review on 
pages 26 to 45
vi credit risk
credit risk arises from trade and other receivables cash cash equivalents liquid investments 
and derivative ﬁnancial instruments the group’s credit risk is primarily to trade receivables 
the credit risk on cash cash equivalents and liquid investments and on derivative ﬁnancial 
instruments is limited as the counterparties are banks with high credit ratings assigned by 
international credit agencies 
all customers are subject to credit review procedures including the use of external credit ratings 
where available credit is provided only within set limits which are regularly reviewed 
outstanding receivable balances are monitored on an ongoing basis
the carrying value of ﬁnancial assets recorded in the ﬁnancial statements represents the 
maximum exposure to credit risk the amounts presented in the balance sheet are net of 
allowances for any doubtful receivables
vii liquidity risk
the group manages liquidity risk by maintaining adequate cash reserves and ﬁnancing facilities 
through the review of forecast and actual cash ﬂows
the group typically holds surplus cash in demand or term deposits or highly liquid investments 
which typically can be accessed or liquidated within 24 hours and in all cases not more than ﬁve 
days while the majority of borrowings comprise corporate loans at los pelambres repayable 
over periods of up to ﬁve years corporate loans at el tesoro repayable over approximately four 
years and corporate loans at esperanza repayable over approximately 12 years 
at the end of both 2010 and 2009 the group was in a net cash position as disclosed in note 
33 details of cash cash equivalents and liquid investments are given in note 22 while details 
of borrowings including the maturity proﬁle are given in note 23 details of undrawn committed 
borrowing facilities are also given in note 23
the following table analyses the maturity of the group’s contractual commitments in respect of 
its ﬁnancial liabilities and derivative ﬁnancial instruments the table has been drawn up based 
on the undiscounted cash ﬂows on the earliest date on which the group can be required to pay 
the table includes both interest and principal cash ﬂows  financial statements
118 antofagasta plc annual report and financial statements 2010
notes to the financial statements continued
25 financial instruments and financial risk management continued
at 31 december 2010
less than 
6 months 
usm
between  
6 months  
to 1 year 
usm
between  
1–2 years 
usm
after 
2 years 
usm
2010  
total 
usm
corporate loans 906 903 6070 16309 24188
other loans including shortterm loans 02 02 35 33 72
finance leases 23 23 90 502 638
preference shares 01 01 02   04
trade and other payables 4905 143 16 31 5095
derivative ﬁnancial instruments 204 342 600 09  1137
 6041 1414 6813 16866 31134
at 31 december 2009
less than 
6 months 
usm
between  
6 months  
to 1 year 
usm
between  
1–2 years 
usm
after  
2 years 
usm
2009  
total 
usm
corporate loans 2529 1998 1429 12297 18253
other loans including shortterm loans 15 15 28 13 71
finance leases 54 38 101 544 737
preference shares 01 01 02   04
trade and other payables 4311 65 76 47 4499
derivative ﬁnancial instruments 410 411 57 21  857
 7320 2528 1693 12880 24421
 the preference shares pay an annual dividend of £100000 us154420 in perpetuity and accordingly it is not possible to determine total amounts payable for periods without a ﬁxed end date 
viii capital risk management
the group’s objectives are to return capital to shareholders whilst leaving the group with 
sufﬁcient funds to progress its short medium and longterm growth plans as well as preserving 
the ﬁnancial ﬂexibility to take advantage of opportunities as they may arise this policy remains 
unchanged the group monitors capital on the basis of net cash deﬁned as cash cash 
equivalents and liquid investments less borrowings which was us13451 million at 
31 december 2010 2009 us15957 million as well as gross cash deﬁned as cash cash 
equivalents and liquid investments which was us35416 million at 31 december 2010 
2009 us32223 million the group’s total cash is held in a combination of demand and 
term deposits and managed funds investing in high quality ﬁxed income instruments some of 
the managed funds have been instructed to invest in instruments with average maturities greater 
than 90 days these amounts are presented as liquid investments but are included in net cash 
for monitoring and decisionmaking purposes the group has a risk averse investment strategy 
the group’s borrowings are detailed in note 23 additional project ﬁnance or shareholder loans 
are taken out by the operating subsidiaries to fund projects on a casebycase basis
balance sheet 
net marktomarket  
effect on debtors
2010 
usm
2009 
usm
los pelambres – copper concentrate 1243 621 
los pelambres – tolling charges for copper concentrates 06 06
los pelambres – molybdenum concentrate 03 11
el tesoro – copper cathodes 41 20 
michilla – copper cathodes 14 04 
1295 628 
 
d embedded derivatives – provisionally priced sales
copper and molybdenum concentrate sale agreements and copper cathode sale agreements 
generally provide for provisional pricing of sales at the time or month of shipment with ﬁnal 
pricing being based on the monthly average london metal exchange copper price or monthly 
average molybdenum price for speciﬁed future periods this normally ranges from 30 to 120 
days after delivery to the customer
under ifrs both gains and losses from the markingtomarket of open sales are recognised 
through adjustments to revenue in the income statement and to trade debtors in the balance 
sheet the group determines marktomarket prices using forward prices at each period end for 
copper concentrate and cathode sales and periodend monthly average prices for molybdenum 
concentrate sales due to the absence of a futures market for that commodity 
the marktomarket adjustments to the balance sheet at the end of each period are as follows strategic review other information financial statements governance financial review operational review
119 antofagasta plc annual report and financial statements 2010
i copper sales
los 
pelambres 
copper 
concentrate 
2010 
usm
el tesoro 
copper 
cathodes 
2010 
usm
michilla 
copper 
cathodes 
2010 
usm
los 
pelambres 
copper 
concentrate 
2009
usm
el tesoro 
copper 
cathodes 
2009 
usm
michilla 
copper 
cathodes 
2009 
usm
provisionally invoiced gross sales 28260 7222 3175 16028 4765 2045
effects of pricing adjustments to previous year invoices
reversal of marktomarket adjustments at the end of the previous year 621 20 04 2576 08 02
settlement of copper sales invoiced in the previous year 557 26 04 1796 06 13 
total effect of adjustments to previous year invoices in the current year 64 06 – 780 14 11 
effects of pricing adjustments to current year invoices
settlement of copper sales invoiced in the current year 1622 127 46 2402 277 103
marktomarket adjustments at the end of the current year 1243 41 14 621 20 04 
total effects of adjustments to current year invoices 2865 168 60 3023 297 107 
total pricing adjustments 2801 174 60 3803 311 118 
realised gainslosses on commodity derivatives – 01 815 – 200 458
revenue before deducting tolling charges 31061 7397 2420 19831 4876 1705 
tolling charges 1340 – – 1251 – – 
revenue net of tolling charges 29721 7397 2420 18580 4876 1705 
i copper concentrate
at 31 december 2010 and 31 december 2009 copper concentrate sales at los pelambres had an average settlement period of approximately three months after shipment date 
at 31 december 2010 sales totalling 101900 tonnes remained open as to price with an average marktomarket price of 4367 cents per pound compared with an average provisional invoice 
price of 3813 cents per pound at 31 december 2009 sales totalling 73700 tonnes remained open as to price with an average marktomarket price of 3340 cents per pound compared with 
an average provisional invoice price of 2958 cents per pound
tolling charges include a marktomarket gain for copper concentrate sales open as to price at 31 december 2010 of less than us01 million 2009 – marktomarket loss of us51 million
ii copper cathodes
at 31 december 2010 and 31 december 2009 copper cathode sales at el tesoro and michilla had an average settlement period of approximately one month after shipment date 
at 31 december 2010 sales totalling 12700 tonnes remained open as to price with an average marktomarket price of 4373 cents per pound compared with an average provisional invoice price 
of 4179 cents per pound at 31 december 2009 sales totalling 10400 tonnes remained open as to price with an average marktomarket price of 3335 cents per pound compared with an 
average provisional invoice price of 3229 cents per pound 
ii molybdenum sales
los 
pelambres 
molybdenum 
concentrate 
2010 
usm
los 
pelambres 
molybdenum 
concentrate 
2009 
usm
provisionally invoiced gross sales 3180 1892 
effects of pricing adjustments to previous year invoices
reversal of marktomarket adjustments at the end of the previous year 11 133 
settlement of molybdenum sales invoiced in the previous year 81 155
total effect of adjustments to previous year invoices in the current year 92 22
effects of pricing adjustments to current year invoices
settlement of molybdenum sales invoiced in the current year 109 64 
marktomarket adjustments at the end of the current year 03 11
total effects of adjustments to current year invoices 106 53 
total pricing adjustments 14 31 
revenue before deducting tolling charges 3166 1923 
tolling charges 131 122
revenue net of tolling charges 3035 1801 
at 31 december 2010 molybdenum concentrate sales at los pelambres had an average settlement period of approximately two months after shipment date sales totalling 1300 tonnes remained 
open as to price with an average marktomarket price of us161 per pound compared with an average provisional invoice price of us160 per pound 
at 31 december 2009 molybdenum concentrate sales at los pelambres had an average settlement period of approximately two months after shipment date sales totalling 1400 tonnes remained 
open as to price with an average marktomarket price of us113 per pound compared with an average provisional invoice price of us116 per pound financial statements
120 antofagasta plc annual report and financial statements 2010
notes to the financial statements continued
25 financial instruments and financial risk management continued
e derivative ﬁnancial instruments
the group periodically uses derivative ﬁnancial instruments to reduce its exposure to commodity price foreign exchange and interest rate movements the group does not use such derivative 
instruments for speculative trading purposes 
the group has applied the hedge accounting provisions of ias 39 “financial instruments recognition and measurement” changes in the fair value of derivative ﬁnancial instruments that are 
designated and effective as hedges of future cash ﬂows have been recognised directly in equity with such amounts subsequently recognised in the income statement in the period when the hedged 
item affects proﬁt or loss any ineffective portion is recognised immediately in the income statement realised gains and losses on commodity derivatives recognised in the income statement have 
been recorded within revenue the time value element of changes in the fair value of derivative options is excluded from the designated hedging relationship and is therefore recognised directly 
in the income statement within other ﬁnance items realised gains and losses and changes in the fair value of exchange and interest derivatives are recognised within other ﬁnance items for those 
derivatives where hedge accounting has not been applied when hedge accounting has been applied the realised gains and losses on exchange and interest derivatives are recognised within other 
ﬁnance items and interest expense respectively 
i marktomarket adjustments and income statement impact
the balance sheet marktomarket adjustments in respect of derivatives at the end of each year and the total effect on the income statement for each year are as follows
for the year ended 31 december 2010
impact on income statement impact on reserves
total balance sheet 
impact of markto
market adjustments
realised  
losses  
2010 
usm
gainslosses resulting 
from marktomarket 
adjustments  
on hedging  
instruments 2010 
usm
total  
net loss  
2010 
usm
gainslosses resulting 
from marktomarket 
adjustments  
on hedging  
instruments 2010 
usm
net ﬁnancial  
assetliability 
2010 
usm
commodity derivatives
el tesoro 01 – 01 14 13
michilla 815 161 976 171 769
exchange derivatives
los pelambres 02 – 02 – – 
michilla 15 – 15 – – 
esperanza – – – 18 18 
corporate and other items – 02 02 – – 
railway and other transport services 47 16 63 – – 
water concession 17 19 02 – – 
interest derivatives
esperanza – – – 298 355
865 156 1021 123 1119
us15 million of the net realised losses on exchange derivatives relates to a net gain on hedging instruments at michilla where hedge accounting has been applied and is recognised in “foreign 
exchange” within net ﬁnance expense see note 9 the remaining us61 million net losses on exchange derivatives where hedge accounting has not been applied have been recognised in 
“foreign exchange derivatives” within net ﬁnance expense see note 9  strategic review other information financial statements governance financial review operational review
121 antofagasta plc annual report and financial statements 2010
for the year ended 31 december 2009
impact on income statement impact on reserves
total balance sheet impact 
of marktomarket 
adjustments
realised  
losses 
2009 
usm
gainslosses resulting 
from marktomarket 
adjustments on  
hedging instruments 
2009 
usm
total  
net loss 
2009 
usm
gainslosses resulting 
from marktomarket 
adjustments on  
hedging instruments 
2009 
usm
net ﬁnancial  
assetliability 
2009 
usm
commodity derivatives
el tesoro 200 09 191 525 01 
michilla 45820478759779
exchange derivatives
corporate and other items 08 02 10 – 02
railway and other transport services 84 16 68 – 16 
water concession 27 19 46 – 19
interest derivatives
esperanza – – – 57 57
777 16 793 1341 840
the losses recognised in reserves are disclosed before noncontrolling interests and tax 
the net ﬁnancial liability resulting from the balance sheet marktomarket adjustments are analysed as follows
2010 
usm
2009 
usm
analysed between
current assets 18 17 
current liabilities 547 812
noncurrent liabilities 590 45
1119 840
ii outstanding derivative ﬁnancial instruments
commodity derivatives
the group periodically uses commodity derivatives to reduce its exposure to ﬂuctuation in the copper price
a minmax instruments
at 311210 for instruments held at 311210
copper 
production 
hedged  
’000 tonnes
weighted 
average 
remaining 
period from  
1 january 
2011  
months
covering a 
period up to
weighted 
average 
ﬂoor  
us cents
weighted 
average cap 
us cents
michilla 58575 127 311212 3111 3922 
between 1 january 2011 and 31 january 2011 nil tonnes of additional minmax instruments were entered into and minmax instruments for 2900 tonnes of copper production matured 
as a result up to 31 january 2011
i  32775 tonnes of 2011 group copper production had been hedged with minmax options of which 2900 tonnes matured by 31 january 2011 and 29875 tonnes remain outstanding and will 
mature by the end of the year
ii  25800 tonnes of 2012 group copper production has been hedged with minmax options
b futures – arbitrage
the group also has futures for copper production to buy and sell copper production with the effect of swapping comex prices for lme prices without eliminating underlying market price exposure
at 311210 for instruments held at 311210
copper 
production 
hedged  
’000 tonnes
weighted 
average 
remaining 
period from  
1 january 
2011  
months
covering a 
period up to
weighted 
average 
price 
us cents
el tesoro 8500 49 310112 3503  financial statements
122 antofagasta plc annual report and financial statements 2010
notes to the financial statements continued
25 financial instruments and financial risk management continued
exchange derivatives
the group periodically uses foreign exchange derivatives to reduce its exposure to ﬂuctuations in the exchange rates inﬂuencing operating costs and the fair value of nonus dollar denominated 
assets or liabilities
crosscurrency swaps
the group has used crosscurrency swaps to swap chilean pesos for us dollars 
at 311210 for instruments held at 311210
principal 
value of 
cross 
currency 
swaps held  
usm
weighted 
average 
remaining 
period from  
1 january 
2011  
months
covering a 
period up to
weighted 
average rate
chus
esperanza 100 10 060111 5503 
between 1 january 2011 and 31 january 2011 us100 million of crosscurrency swaps relating to esperanza matured and us566 million new crosscurrency swaps relating to railway and 
other transport services were entered into 
interest derivatives
the group periodically uses interest derivatives to reduce its exposure to interest rate movements
interest rate swaps
the group has used interest rate swaps to swap the ﬂoating rate interest relating to the esperanza ﬁnancing for ﬁxed rate interest at 31 december 2010 the group had entered into the contracts 
outlined below 
phase start date
maturity 
 date
maximum 
notional 
amount
usm
weighted 
average 
ﬁxed rate 

esperanza 1 1522010 1522011 7878 1353 
2 1522011 1522018 8400 3372 
26 postemployment beneﬁt obligations
a deﬁned contribution schemes
the group operates deﬁned contribution schemes for a limited number of employees the amount charged to the income statement in 2010 was us01 million 2009 – less than us01 million 
representing the amount paid in the year there were no outstanding amounts which remain payable at the end of either year
b severance provisions
employment terms at some of the group’s operations provide for payment of a severance indemnity when an employment contract comes to an end this is typically at the rate of one month for 
each year of service subject in most cases to a cap as to the number of qualifying years of service and based on ﬁnal salary level the severance indemnity obligation is treated as an unfunded 
deﬁned beneﬁt plan and the obligation recognised is based on valuations performed by an independent actuary using the projected unit credit method which are regularly updated the obligation 
recognised in the balance sheet represents the present value of the severance indemnity obligation actuarial gains and losses are immediately recognised in the income statement within 
operating cost
the most recent valuation was carried out in 2010 by ernst  young a qualiﬁed actuary in santiagochile who is not connected with the group 2009 – raúl benavente a qualiﬁed actuary in 
santiagochile who was not connected with the group 
the main assumptions used to determine the actuarial present value of beneﬁt obligations were as follows
2010 2009
average nominal discount rate 66 55
average rate of increase in salaries 28 15
average staff turnover 35 35 strategic review other information financial statements governance financial review operational review
123 antofagasta plc annual report and financial statements 2010
amounts included in the income statement in respect of severance provisions are as follows
2010 
usm
2009 
usm
current service cost charge to operating proﬁt 111 38
actuarial losses charge to operating costs 50 95
interest cost charge to interest expenses 16 13
foreign exchange charge to other ﬁnance items 43 84
total charge to income statement 220 230
movement in the present value of severance provisions were as follows
2010 
usm
2009 
usm
balance at the beginning of the year 482 290
current service cost 111 38
actuarial gains and losses 50 95
charge capitalised 37 04
reclassiﬁcation – 04
interest cost 16 13
paid in the year 59 46 
foreign currency exchange difference 43 84
balance at the end of the year 680 482
27 deferred tax
the following are the major deferred tax liabilities and assets recognised by the group and movements thereon during 2010 and 2009
accelerated 
capital 
allowances 
usm
timing 
differences 
on provisions 
usm
withholding 
tax 
usm
shortterm 
differences 
usm
mining tax 
royalty 
usm
tax losses 
usm
total 
usm
at 1 january 2009 3143 590 1072 39 40 70 3554
chargecredit to income 373 372 277 225 129 01 1377
charge capitalised 84 – – – – – 84
charge deferred in equity – – 228 – – 228 
at 1 january 2010 3600 218 1349 36 89 69 4787
chargecredit to income 442 195 1135 181 128 460 1231
charge capitalised 115 ––––– 115 
credit deferred in equity – – – 40 – – 40 
at 31 december 2010 3927 413 2484 177 217 529 5863
the charge to the income statement of us1231 million 2009 – us1377 million charge includes a charge for foreign exchange differences of us21 million 2009 – includes a charge of 
us51 million 
certain deferred tax assets and liabilities have been offset the following is the analysis of the deferred tax balance after offset
2010 
usm
2009 
usm
deferred tax assets 1100 311 
deferred tax liabilities 6963 5098
net deferred tax balances 5863 4787
at 31 december 2010 the group had unused tax losses of us3111 million 2009 – us408 million available for offset against future proﬁts a deferred tax asset has been recognised in respect 
of the full us3111 million in 2010 2009 – us408 million these losses may be carried forward indeﬁnitely
at 31 december 2010 and 31 december 2009 there were no other deductible temporary differences for which no deferred tax assets were recognised in the balance sheet 
at 31 december 2010 the aggregate amount of temporary differences associated with undistributed earnings of subsidiaries for which deferred tax liabilities have not been recognised was 
us36499 million 2009 – us40473 million no liability has been recognised in respect of these differences because the group is in a position to control the timing of the reversal of the 
temporary differences and it is likely that such differences will not reverse in the foreseeable future
temporary differences arising in connection with interests in associates are insigniﬁcant financial statements
124 antofagasta plc annual report and financial statements 2010
notes to the financial statements continued
28 longterm provisions
2010 
usm
2009 
usm
balance at the beginning of the year 1279 180
charge to operating proﬁt in the year 696 22
release of discount to net interest in the year 27 15
charge capitalised 14 13
capitalised adjustment to provision 444 1051
reclassiﬁcation – 04 
utilised in year 17 –
foreign currency exchange difference 01 02
balance at the end of the year 2444 1279
analysed as follows
decommissioning and restoration 2434 1271
termination of water concession 10 08
balance at the end of the year 2444 1279
a decommissioning and restoration
decommissioning and restoration costs relate to the group’s mining operations costs are estimated on the basis of a formal closure plan and are subject to regular independent formal review 
it is estimated that the provision will be utilised over a period of up to 26 years based on current mine plans 
during the year ended 31 december 2010 there has been a us652 million charge to operating proﬁt in relation to increases to the restoration provision and us444 million capitalised in relation 
to increases in the decommissioning provision at los pelambres following an updated independent review which reﬂects changes to the timing cost and other assumptions relating to the provision 
the capitalised provision balances are depreciated over the life of the corresponding asset or mine life if shorter 
b termination of water concession
the provision for the termination of the water concession relates to the provision for items of plant property and equipment and working capital items under aguas de antofagasta’s ownership 
to be transferred to the previous stateowned operator econssa formerly known as essan at the end of the concession period and is based on the net present value of the estimated value 
of those assets and liabilities in existence at the end of the concession
29 share capital and other reserves
i share capital
the ordinary share capital of the company is as follows
2010 
number
2009 
number
2010 
usm
2009 
usm
authorised
ordinary shares of 5p each 1300000000 1300000000 1189 1189 
2010 
number
2009 
number
2010 
usm
2009 
usm
issued and fully paid
ordinary shares of 5p each 985856695 985856695 898 898 
the company has one class of ordinary shares which carry no right to ﬁxed income each ordinary share carries one vote at any general meeting
there were no changes in the authorised or issued share capital of the company in either 2009 or 2010 details of the company’s preference share capital which is included within borrowings 
in accordance with ias 32 are given in note 23axii
ii other reserves
details of the share premium account hedging fair value and translation reserves and retained earnings for both 2009 and 2010 are included within the consolidated statement of changes 
in equity on page 89 strategic review other information financial statements governance financial review operational review
125 antofagasta plc annual report and financial statements 2010
30 noncontrolling interests
the noncontrolling interests of the group are as follows
at 010110 
usm
share of 
proﬁt for the 
ﬁnancial year 
usm
acquisition of 
non
controlling 
interests 
usm
capital 
increase 
usm
share of 
dividends 
usm
hedging 
reserves 
usm
at 311210 
usm
los pelambres 8629 6750 – – 6480 – 8899 
el tesoro 2329 949 – – 450 03 2825 
michilla – 64 – – 97 40 07 
esperanza 1683 39 – – – 68 1576 
twin metals – 41 08 125 – – 92 
railway and other transport services 147 06 –––– 153 
total 12788 7689 08 125 7027 31 13552 
31 business combinations
a twin metals minnesota llc
on 21 july 2010 the group signed a deﬁnitive participation and limited liability company agreement pursuant to the legally binding heads of agreement “hoa” signed on 14 january 2010 with 
duluth metals limited “duluth” a company listed on the toronto stock exchange “tsx” to acquire a 40 controlling interest in the project company twin metals minnesota llc “twin metals” 
which holds the nokomis coppernickelplatinum group metal “pgm” deposit “nokomis” located in the highly prospective duluth complex in northeastern minnesota usa
the agreement includes no transfer of consideration from antofagasta to duluth for the participation in twin metals llc no goodwill was generated in this transaction the us08 million 
attributable to the noncontrolling interest is 60 of the identiﬁable net assets in order to maintain its interest antofagasta will fund us130 million of exploration and feasibility study expenditure 
over a threeyear period and has the option to acquire an additional 25 of the project company to own in aggregate 65 upon completion of a bankable feasibility study although the group only 
has a 40 shareholding in twin metals the nature of the agreement is such that the group has management control over the entity
usm
property plant and equipment 41 
cash and cash equivalents 04 
trade and other payables 31
total identiﬁable net assets 14 
antofagasta incurred acquisitionrelated costs of us41 million which is included in exploration and evaluation cost in the year to 31 december 2010 in line with the exploration and evaluation 
expense being incurred by this company
since the acquisition date twin metals has incurred exploration and evaluation expenditure of us68 million had twin metals been consolidated from 1 january 2010 the impact on the 
consolidated statement of comprehensive income for the year to 31 december 2010 would have been an additional net loss of us81 million
32 other transactions
a full metal minerals limited
on 10 august 2010 the group entered into an agreement with full metal minerals limited “full metal” of canada in respect of its pyramid coppergoldmolybdenum porphyry project in 
southwest alaska the group has the right to earn up to a 51 interest in the project over a fouryear period by funding up to us60 million of exploration activities and making cash payments 
totalling us02 million antofagasta will have the right to further increase its interest in the project to 65 by funding a scoping study and can then earn an additional 15 interest by funding 
a feasibility study
b minera picacho codelco
on 20 august 2010 the group entered into an agreement with minera picacho a whollyowned subsidiary of corporacion nacional del cobre chile “codelco” in respect of the cumbres prospect 
in chile’s antofagasta region the group has the right to earn a 60 interest over a fouryear period by funding us25 million in exploration with a minimum commitment of us03 million in the 
ﬁrst year and delivering a feasibility study within a further two years
c monax mining limited
in september 2010 the group entered into an agreement with monax mining limited “monax” in respect of its punt hill coppergold project in south australia the group has the right to earn 
a 51 interest in the deposit over a fouryear period by funding us40 million of exploration activities with a minimum commitment of us15 million antofagasta will have the right to increase 
further its interest in the punt hill project to 70 by funding a further us50 million of exploration and development activities
d teal exploration  mining incorporated
during 2008 the group entered into an agreement with teal exploration  mining incorporated “teal ” to acquire an initial 30 interest in two of teal ’s exploration licences on the zambian 
copperbelt for a consideration of us50 million after evaluation of the results of the exploration activities to date the group has decided not to proceed further with the partnership with teal and 
accordingly has withdrawn from the agreement the group received us35 million from teal for assigning its interests in the mining licences relating to the project 
e international base metals limited
after evaluation of the results of the exploration activities to date the group decided in october 2010 not to proceed further with its agreement with international base metals limited of australia 
in respect of its kopermyn mining property in northern namibia  financial statements
126 antofagasta plc annual report and financial statements 2010
notes to the financial statements continued
33 notes to the consolidated cash flow statement
a reconciliation of proﬁt before tax to net cash inﬂow from operating activities
2010 
usm
2009 
usm
proﬁt before tax 25732 14376 
depreciation and amortisation 2770 2175 
loss on disposal of property plant and equipment 98 42 
asset impairments – reversal 1094 –
net ﬁnance expense 187 259 
share of proﬁt of associate 26 45
increase in inventories 1088 598
increase in debtors 3367 2662
increasedecrease in creditors and provisions 1075 1869
cash ﬂows from operations 24339 11678 
b analysis of changes in net cash restated
at 1110 
usm
cash ﬂows 
usm
other 
usm
exchange 
usm
at 311210 
usm
cash and cash equivalents 25905 1270 – 172 27347 
liquid investments 6318 1751 – – 8069 
total cash cash equivalents and liquid investments 32223 3021 – 172 35416 
bank borrowings due within one year 4265 4465 1548 – 1348
bank borrowings due after one year 1145710215 1531 0120142
finance leases due within one year 53 128 101 02 28
finance leases due after one year 459 – 79 36 416
preference shares 32 – – 01 31
total borrowings 16266 5622 39 38 21965
net cash 15957 2601 39 134 13451 
at 1109 
usm
cash ﬂows 
usm
other 
usm
exchange 
usm
at 311209 
usm
cash and cash equivalents restated 28131 2754 – 528 25905 
liquid investments restated 5449 869 – – 6318 
total cash cash equivalents and liquid investments 33580 1885 – 528 32223 
bank borrowings due within one year 3060 433 771 01 4265
bank borrowings due after one year 776 11447 766 – 11457
finance leases due within one year 130 109 35 03 53
finance leases due after one year 394 – 01 66 459
preference shares 29 – – 03 32
total borrowings 4389 11771 39 67 16266
net cash 29191 13656 39 461 15957 
c net cash
2010 
usm
2009 
usm
cash cash equivalents and liquid investments 35416 32223 
total borrowings 21965 16266
13451 15957  strategic review other information financial statements governance financial review operational review
127 antofagasta plc annual report and financial statements 2010
34 operating lease arrangements
2010 
usm
2009 
usm
minimum lease payments under operating leases recognised in 
income for the year 124  148 
at the balance sheet date the group had outstanding commitments for future minimum lease 
payments under noncancellable operating leases which fall due as follows
2010 
usm
2009 
usm
within one year 102  108 
in the second to ﬁfth years inclusive 309  181 
after ﬁve years 105  54 
 516  343 
operating lease payments relate mainly to rental of plant and equipment by operating 
subsidiaries of the group
35 concession arrangements
in 2003 the group was awarded a 30year concession to operate the water rights and facilities 
in the antofagasta region of chile previously controlled by the stateowned operator econssa 
formerly known as essan the concession consists of two businesses one an unregulated 
business supplying mines and other industrial users and the other a regulated water business 
supplying domestic customers the concession contract was signed and control of the assets 
and operation assumed on 29 december 2003 by aguas de antofagasta sa a whollyowned 
subsidiary of the group
under the concession contract certain assets and liabilities mainly certain speciﬁc tangible 
ﬁxed assets and working capital items were transferred to aguas de antofagasta by way 
of sale other assets mainly water rights and infrastructure were transferred by way of 
concession and will devolve to essan at the end of the 30year period 
aguas de antofagasta will also be required to transfer to essan any tangible ﬁxed assets 
and working capital items under its ownership at the end of the 30year concession period 
a provision for the termination of the water concession has been created for the ﬁxed assets 
and working capital items under aguas de antofagasta’s ownership to be transferred to essan 
at the end of the concession period the provision is based on the net present value of the 
estimated value of these assets and liabilities in existence at the end of the concession 
the release of the discount applied in establishing the net present value of future costs is 
charged to the income statement in each accounting period and is disclosed as a ﬁnancing 
cost further details of this provision are given in note 28b
the chilean water regulator superintendencia de servicios sanitarios sets domestic tariffs 
every ﬁve years following a regulatory review including representations from the operator of the 
concession the last regulatory review was completed during 2006 which resulted in an average 
reduction in tariffs compared with previous levels of approximately 5 from july 2006
36 exchange rates in us dollars
the principal exchange rates expressed in us dollars used in the preparation of the 2010 
ﬁnancial statements are as follows
2010 2009
year end rates
us15406  £1 
us1  ch468
us16062  £1 
us1  ch507
average rates
us15442  £1 
us1  ch510
us15591  £1 
us1  ch559
37 related party transactions
transactions between the company and its subsidiaries which are related parties have been 
eliminated on consolidation and are not disclosed in this note transactions between the group 
and its associates are disclosed below
the transactions which group companies entered into with related parties who are not members 
of the group are set out below
a quiñenco sa
quiñenco sa “quiñenco” is a chilean ﬁnancial and industrial conglomerate the shares of 
which are traded on the santiago stock exchange the group and quiñenco are both under the 
control of the luksic family and three directors of the company mr jp luksic mr g a luksic 
and mr g s menéndez are also directors of quiñenco
the following material transactions took place between the group and the quiñenco group 
of companies all of which were on normal commercial terms
–  the group sold copper cathodes during the year for us50 million 2009 – us23 million 
to madeco sa a subsidiary of quiñenco the balance due from madeco at the end of the 
year was nil 2009 – was nil
–  the group bought copper wire from madeco for less than us01 million 2009 – less than 
us01 million
–  the group earned interest income of us05 million 2009 – us01 million during the year 
on deposits with banco de chile sa a subsidiary of quiñenco deposit balances at the end 
of the year were us19 million 2009 – us317 million 
b compañía de inversiones adriático sa
in 2010 the group leased ofﬁce space on normal commercial terms from compañía de 
inversiones adriático sa a company controlled by the luksic family at a cost of us06 million 
2009 – us07 million
c compañía antofagasta terminal internacional sa
as explained in note 17 the group acquired a 30 interest in antofagasta terminal internacional 
sa “ati” on 16 december 2004 which has been treated in these ﬁnancial statements 
as an associate during 2010 the group received a dividend of us08 million from ati 
2009 – us07 million
d antomin limited antomin 2 limited and antomin investors limited
the group holds a 51 interest in antomin 2 limited “antomin 2” and antomin investors 
limited “antomin investors” which own a number of copper exploration properties the group 
originally acquired its 51 interest in these properties for a nominal consideration from 
mineralinvest establishment a company controlled by the luksic family which continues to hold 
the remaining 49 of antomin 2 and antomin investors antofagasta has the exclusive right to 
acquire at fair value under certain conditions the shareholding of mineralinvest in antomin 2 
and antomin investors or the underlying properties for a period of ﬁve years from august 2008 
the group has also committed to meet in full any exploration costs relating to the properties 
held by these entities 
e tethyan copper company limited
as explained in note 18a during 2006 the group entered into a joint venture agreement 
with barrick gold corporation “barrick gold” to establish a 5050 joint venture over tethyan’s 
mineral interests in pakistan 
during the year the group contributed us121 million 2009 – us311 million to tethyan 
to provide funds for tethyan’s ongoing exploration and evaluation programme the balance 
due from tethyan to group companies at the end of the year was us03 million 2009 – 
us05 million details of amounts relating to tethyan included in the consolidated ﬁnancial 
statements of the group under the proportionate consolidation method are set out in note 18a 
f energía andina sa
in october 2008 energía andina sa was formed as a vehicle for the exploration and 
exploitation of potential sources of geothermal energy the company is 60 owned by the 
group and 40 owned by empresa nacional del petróleo “enap” of chile the balance 
due from energía andina sa to the group at 31 december 2010 was us03 million 
31 december 2009 – us02 million financial statements
128 antofagasta plc annual report and financial statements 2010
notes to the financial statements continued
37 related party transactions continued
g minera cerro centinela sa
minera cerro centinela sa “centinela” an entity ultimately controlled by the luksic family 
has an interest of 7973 in minera michilla sa “michilla” a shareholding it has held since 
michilla was created through the merger of two predecessor companies on 31 december 1993 
during 2010 michilla paid dividends of us30 million to centinela
h directors and other key management personnel
information relating to directors’ remuneration and interests are given in the remuneration 
report on pages 81 to 83 information relating to the remuneration of key management 
personnel including the directors is given in note 8 
i inversiones hornitos sa
in july 2009 the group acquired a 40 interest in inversiones hornitos sa from gdf suez 
this interest is accounted for as an associate the group made an initial payment on 15 july 
2009 of us809 million to gdf suez representing the group’s share of costs already incurred 
plus interest to date of acquisition during 2010 a capital restructuring of inversiones hornitos 
took place with the fcab’s previous capital contributions being reduced by us572 million 
and replaced with loan ﬁnancing from the fcab with the fcab contributing us786 million of 
further loan ﬁnancing to inversiones hornitos during the year the balance due from inversiones 
hornitos to the group at 31 december 2010 was us1011 million year ended 31 december 
2009 – us225 million
j sunridge gold corp
in october 2009 the group acquired 178 of the issued share capital of sunridge under a 
private placement on 23 december 2010 the group sold its 178 shareholding in sunridge 
for us175 million prior to this sale the interest was accounted for as an associate further 
details are provided in note 17
k franconia minerals corporation
on 20 december 2010 the group entered into arrangements with duluth metals limited in 
connection with duluth’s proposed acquisition of 100 of franconia minerals corporation 
“franconia” duluth and antofagasta have agreed that following the proposed acquisition 
franconia’s assets will be transferred to twin metals and that antofagasta will contribute 
approximately c300 million in cash to duluth’s acquisition of franconia in order to in part 
maintain the 40 and 60 interests of antofagasta and duluth respectively in twin metals 
the group has also subscribed for an aggregate of 7604563 subscription receipts of duluth 
by way of private placement for a price of c263 per subscription to become an approximately 
128 shareholder in duluth further details of the acquisition are given in note 39 duluth is a 
related party of the group for the purpose of the listing rules of the united kingdom listing 
authority as it holds a substantial interest in twin metals
38 contingent liabilities 
there are a number of claims currently outstanding to which antofagasta plc or its 
subsidiaries “the group” is a party for which no provision has been made in the ﬁnancial 
statements and are currently not expected to result in any material loss to the group 
details of the principal claims at the end of the year and their current status are set out below
a los pelambres – mauro tailings dam
as previously announced during 2008 los pelambres entered into binding settlements in 
respect of litigation relating to the mauro tailings dam in december 2008 los pelambres 
became aware of further legal proceedings which had been initiated in ﬁrst instance courts in 
santiago and los vilos by certain members of the caimanes community located near the mauro 
valley these claims some of which have already been rejected by the relevant courts sought to 
prevent the operation of the mauro tailings dam los pelambres is continuing to take necessary 
steps to protect its position 
b tethyan copper company limited – chagai hills exploration joint venture
on 26 june 2007 the high court of balochistan at quetta dismissed a petition which had sought 
to declare that the chagai hills exploration joint venture of 1993 and the exploration licences 
granted to tethyan were null and void and overturned an injunction passed earlier by the court 
the petition had been ﬁled in november 2006 and was directed at several parties including the 
group the government of pakistan and the government of balochistan
the petitioners have ﬁled a civil petition for leave to appeal “cpla” against the judgment 
the cpla has now been allowed by the supreme court converting it into an appeal and is 
hearing it on its merits together with new constitutional petitions ﬁled before the supreme court 
the new petitions primarily relate to whether it is in the public interest for tethyan to receive a 
mining lease on 3 february 2011 the supreme court issued an interim order providing among 
other things that the government of balochistan may not take any decision in respect of the 
grant or otherwise of a mining lease to tethyan until matters before the supreme court are 
decided further progress on this project will be dependent on the grant of the mining lease for 
which an application has been made and successful conclusion of litigation which is currently 
in progress before the supreme court of pakistan 
39 events after the balance sheet date
a eurasian minerals inc
on 18 february 2011 the group has entered into an agreement in principle for a strategic 
alliance and earnin agreement with eurasian minerals inc focused primarily on copper 
exploration in sweden including the kiruan south copper project the group will contribute 
funding of at least us250000 million annually for a twoyear period
the group may earn a 51 interest in any designated property other than the kiruna south 
designated property by spending an aggregate of us50 million over ﬁve years and making 
a onetime cash payment on or before the ﬁfth anniversary equal to the product obtained 
by multiplying 225000lbs of copper times the average of the price of copper for the previous 
30 trading days in the case of the kiruna south designated project the above conditions also 
apply except that the earnin commitment is us100 million over ﬁve years
the group will also purchase 1540000 units from eurasian minerals inc at a price of 
c325 per unit each unit will consist of one common share and one half of one common share 
purchase warrant each full warrant will entitle amsa to purchase one additional common share 
of eurasian minerals inc stock for a period of two years at a purchase price of c400 per unit 
the placement will be subject to tsx venture exchange approval
b franconia minerals corporation
on 20 december 2010 the group entered into arrangements with duluth metals limited 
“duluth” in connection with duluth’s proposed acquisition of 100 of franconia minerals 
corporation “franconia” following approval of the acquisition by franconia’s shareholders and 
by the court of queen’s bench of alberta duluth completed the acquisition on 7 march 2011 
franconia’s principal assets are a 70 interest in the birch lake joint venture “bljv” which 
holds the birch lake maturi and spruce road coppernickelplatinum and palladium deposits 
that are contiguous to the nokomis deposit held through twin metals franconia announced in 
november 2010 its intention to increase its ownership at the birch lake project to 82 under 
the terms of the bljv agreement the offer valued franconia at approximately c77 million 
approximately us77 million duluth and antofagasta agreed that following the proposed 
acquisition franconia’s assets will be transferred to twin metals subsequent to the year end 
antofagasta has contributed approximately c30 million approximately us30 million in cash 
to duluth’s acquisition of franconia in order to in part maintain the 40 and 60 interests 
of antofagasta and duluth respectively in twin metals following the completion of duluth’s 
acquisition it is expected that franconia’s assets will be transferred to twin metals during the 
ﬁrst half of 2011
40 ultimate parent company
the immediate parent of the group is metalinvest establishment which is controlled by e abaroa 
foundation in which members of the luksic family are interested
both metalinvest establishment and the e abaroa foundation are domiciled in liechtenstein 
information relating to the interest of metalinvest establishment and the e abaroa foundation 
are given in the report of the directors on page 72 strategic review other information financial statements governance financial review operational review
129 antofagasta plc annual report and financial statements 2010
parent company financial statements
41 antofagasta plc – balance sheet of the parent company and related notes
parent company balance sheet
at 31 december 2010
notes
2010 
usm
2009 
usm
fixed assets
investment in subsidiaries 41d 6663 6662 
current assets
debtors – amounts falling due within one year
             – other debtors 05 05 
             – amounts owed by subsidiaries 41d 12039 7601 
current asset investments term deposits 71 96 
cash at bank and in hand 10 16 
12125 7718 
creditors – amounts falling due within one year
other creditors 19 12
amounts owed to subsidiaries 2995 2995
3014 3007
net current assets 9111 4711 
total assets less current liabilities 15774 11373 
creditors – amounts falling due after more than one year
preference shares 41e 31 32
total assets less total liabilities 15743 11341 
capital and reserves
called up shares capital  
– ordinary shares – equity 41f 898 898 
reserves
– share premium account 41f 1992 1992 
– proﬁt and loss account 41f 12853 8451 
shareholders’ funds including nonequity interests 15743 11341 
approved by the board and signed on its behalf on 7 march 2011
jp luksic  c h bailey 
chairman  director financial statements
130 antofagasta plc annual report and financial statements 2010
parent company financial statements continued
41a basis of preparation of the balance sheet and related notes 
of the parent company
the antofagasta plc parent company balance sheet and related notes have been prepared 
in accordance with united kingdom generally accepted accounting principles “uk gaap” 
and in accordance with uk company law the ﬁnancial information has been prepared on a 
historical cost basis the ﬁnancial statements have been prepared on a going concern basis 
the functional currency of the company and the presentational currency adopted is us dollars
a summary of the principal accounting policies is set out below there were no changes 
in accounting policies in 2010
the preparation of ﬁnancial statements in conformity with uk gaap requires the use of 
estimates and assumptions that affect the reported amounts of assets and liabilities at the 
date of the ﬁnancial statements and the reported amounts of revenues and expenses during 
the period although these estimates are based on management’s best knowledge of the 
amount event or actions following implementation of these standards actual results may 
differ from those estimates
as permitted by section 408 of the companies act 2006 the proﬁt and loss account of the 
parent company is not presented as part of these ﬁnancial statements the proﬁt after tax for 
the year of the parent company amounted to us6768 million 2009 – us3303 million
41b principal accounting policies of the parent company
a currency translation
the company’s functional currency is the us dollar transactions denominated in other 
currencies including the issue of shares are translated at the rate of exchange ruling on the 
date of the transaction monetary assets and liabilities including amounts due from or to 
subsidiaries are translated at the rate of exchange ruling at the end of the ﬁnancial year 
exchange differences are charged or credited to the proﬁt and loss account in the year 
in which they arise
b revenue recognition
interest is accounted for on an accruals basis dividends proposed by subsidiaries are recognised 
as income by the company when they represent a present obligation of the subsidiaries ie in 
the period in which they are formally approved for payment
c dividends payable
dividends proposed are recognised when they represent a present obligation ie in the period 
in which they are formally approved for payment accordingly an interim dividend is recognised 
when paid and a ﬁnal dividend is recognised when approved by shareholders
d investments in subsidiaries
investments in subsidiaries represent equity holdings in subsidiaries and longterm amounts 
owed by subsidiaries such investments are valued at cost less any impairment provisions 
investments are reviewed for impairment if events or changes in circumstances indicate that 
the carrying amount may not be recoverable when a review for impairment is conducted 
the recoverable amount is assessed by reference to the net present value of expected future 
cash ﬂows of the relevant income generating unit or disposal value if higher
as explained in note 41d amounts owed by subsidiaries due in foreign currencies are 
translated at year end rates of exchange with any exchange differences taken to the proﬁt 
and loss account
e current asset investments and cash at bank and in hand
current asset investments comprise highly liquid investments that are readily convertible into 
known amounts of cash and which are subject to insigniﬁcant risk of changes in value typically 
maturing within 12 months
cash at bank and in hand comprise cash in hand and deposits repayable on demand
f borrowings – preference shares
the sterlingdenominated preference shares issued by the company carry a ﬁxed rate of return 
without the right to participate in any surplus they are accordingly classiﬁed as borrowings and 
translated into us dollars at period end rates of exchange preference share dividends are 
included within ﬁnance costs
g equity instruments – ordinary share capital and share premium
equity instruments issued are recorded at the proceeds received net of direct issue costs equity 
instruments of the company comprise its sterlingdenominated issued ordinary share capital and 
related share premium
as explained above the presentational and the functional currency of the company is us dollars 
and ordinary share capital and share premium are translated into us dollars at historical rates of 
exchange based on dates of issue
h cash ﬂow statement
the company’s individual ﬁnancial statements are outside the scope of frs 1 “cash flow 
statements” because the company prepares publicly available consolidated ﬁnancial statements 
which include a consolidated cash ﬂow statement accordingly the company does not present 
an individual company cash ﬂow statement
i related party disclosures
the company’s individual ﬁnancial statements are exempt from the requirements of frs 8 
“related party disclosures” because its individual ﬁnancial statements are presented together 
with its consolidated ﬁnancial statements accordingly the individual ﬁnancial statements do not 
include related party disclosures strategic review other information financial statements governance financial review operational review
131 antofagasta plc annual report and financial statements 2010
41c employee beneﬁt expense
a average number of employees
the average number of employees was 8 2009 – 8
b aggregate remuneration
the aggregate remuneration of the employees mentioned above was as follows
2010 
usm
2009 
usm
wages and salaries 16  16 
social security costs 02  02 
postemployment beneﬁts – severance charge in the year 01  01 
 19  19 
the above employee ﬁgures exclude directors who receive directors’ fees from antofagasta plc 
details of fees payable to directors are set out in the remuneration report
41d subsidiaries
a investment in subsidiaries
2010 
usm
2009 
usm
shares in subsidiaries at cost 576  576 
amounts owed by subsidiaries due after more than one year 6087  6086 
 6663  6662 
shares 
usm
loans 
usm
total 
usm
1 january 2010 576  6086  6662 
loans made –  01  01 
31 december 2010 576  6087  6663 
b amounts owed by subsidiaries due within one year
at 31 december 2010 amounts owed by subsidiaries due within one year were 
us12039 million 2009 – us7601 million
41e borrowings – preference shares
the authorised issued and fully paid preference share capital of the company comprised 
2000000 5 cumulative preference shares of £1 each at both 31 december 2010 and 
31 december 2009 as explained in note 41bf the preference shares are measured in the 
balance sheet in us dollars at period end rates of exchange
the preference shares are nonredeemable and are entitled to a ﬁxed 5 cumulative dividend 
payable in equal instalments in june and december of each year on a windingup the 
preference shares are entitled to repayment and any arrears of dividend in priority to ordinary 
shareholders but are not entitled to participate further in any surplus each preference share 
carries 100 votes see note 23axii at any general meeting
41f reconciliation of movement in shareholders’ funds
called up 
ordinary 
share capital 
usm
share 
premium 
account 
usm
proﬁt 
and loss 
account 
usm
total 
usm
at 1 january 2009 equity 898  1992  10767  13657 
proﬁt for the ﬁnancial year –  –  3303 3303
dividends paid –  –  5619 5619
at 31 december 2009 
and 1 january 2010 898 1992 8451 11341
proﬁt for the ﬁnancial year –  –  6768  6768 
dividends paid –  –  2366 2366
31 december 2010 equity 898 1992 12853 15743
the ordinary shares rank after the preference shares in entitlement to dividend and on a 
windingup each ordinary share carries one vote at any general meeting other information
132 antofagasta plc annual report and financial statements 2010
five year summary
2010 
 usm
2009 
 usm
2008 
 usm
2007 
 usm
2006 
 usm
consolidated balance sheet
intangible asset
1
 3115  3112  2336  2636  2053 
property plant and equipment
1
 60934  48732  36797  26239  23737 
investment property 37  34  27  35  32 
investment in associate 580  1213  30  25  35 
trade and other receivables 429  366  341  320  393 
derivative ﬁnancial instruments – – – 14 –
availableforsale investments 218  12  07  33  62 
deferred tax assets 1100  311  127  147  31 
noncurrent assets 66413  53780  39665  29449  26343 
current assets 49465  41325  39884  29106  24507 
current liabilities 9307 9956 9747 3666 5139
noncurrent liabilities  31313 18975 5476 5824 6230
 75258  66174  64326  49065  39481 
share capital  898  898  898  898  898 
share premium 1992  1992  1992  1992  1992 
reserves retained earnings and hedging translation and fair value reserves 58816  50496  49778  37760  28661 
equity attributable to equity holders of the company 61706  53386  52668  40650  31551 
noncontrolling interests 13552  12788  11658  8415  7930 
 75258  66174  64326  49065  39481 
2010 
 usm
2009 
 usm
2008 
 usm
2007 
usm
2006 
 usm
consolidated income statement
group revenue 45771  29626  33726  38267  38700 
total proﬁt from operations and associates 25919  14635  25532  26548  28052 
proﬁt before tax
2
 25732  14376  26095  27502  28590 
income tax expense 7525 3177 5197 6384 6649
noncontrolling interests 7689 4522 3833 7297 8398
net earnings proﬁt attributable to equity holders of the company 10518  6677  17065  13821  13543 
ebitda
3
 27719  16807  18998  28240  29573 
see footnotes on page 133
2010 
 cents
2009 
 cents
2008 
 cents
2007 
cents
2006 
 cents
earnings per share
4
basic earnings per share 1067  677  1731  1402  1374 
dividends to ordinary shareholders of the company
5
2010 
 cents
2009 
 cents
2008 
 cents
2007 
cents
2006 
 cents
dividends per share proposed in relation to the year
ordinary dividends interim and ﬁnal 160  94  90  86  82 
special dividends 1000  140  510  410  400 
 1160  234  600  496  482 
dividends per share paid in the year and deducted from equity 240  570  498  492  240  strategic review other information financial statements governance financial review operational review
133 antofagasta plc annual report and financial statements 2010
2010 
 usm
2009 
 usm
2008 
 usm
2007 
usm
2006 
 usm
consolidated cash flow statement
cash ﬂow from operations 24339  11678  24543  28177  28101 
interest paid 424 270 125 202 246
dividends from associates 08  07  18  24  04 
income tax paid 4279 1352 5614 8060 4982
net cash from operating activities 19644  10063  18822  19939  22877 
investing activities
acquisition and disposal of subsidiaries joint venture associates 
availableforsale investments investing activities and recovery of vat restated 1880 2264 6185  363  3945
purchases and disposals of intangible assets property plant and equipment  12983 13761 11457 4817 5066
interest received 262  158  788  1113  776 
net cash used in investing activities 14601 15867 4484 3341 8235
financing activities
dividends paid to equity holders of the company 2366 5619 4910 4850 2366
dividends paid to preference holders and noncontrolling interests 7029 3102 4958 6814 6308
new borrowings less repayment of borrowings and ﬁnance leases 5622  11771  1777  932 1076
net cash used in ﬁnancing activities 3773 3050  8091 12596 9750
net increasedecrease in cash and cash equivalents restated
6
 1270  2754 6247  4002  4892 
2010 
 usm
2009 
 usm
2008 
 usm
2007 
usm
2006 
 usm
consolidated net cash
cash cash equivalents and liquid investments
6
 35416  32223  33580  22125  18055 
shortterm borrowings
4
 1376 4318 3190 1018 976
medium and longterm borrowings
4
 20589 11948 1199 1642 2611
 21965 16266 4389 2660 3587
net cash at the year end 13451  15957  29191  19465  14468 
1  ifric 12 service concession arrangements was adopted in 2008 which required that all infrastructure assets relating to the water concession to be recorded within intangible assets 
previously certain infrastructure assets were recorded within property plant and equipment accordingly the 2008 ﬁgures have been prepared on this basis and the comparatives for 2007 
have been restated to reclassify these assets the comparatives for 2006 have not been restated
2  in 2010 the consolidated income statement included a us1094 million reversal of an impairment charge relating to property plant and equipment at el tesoro which has been recorded as an 
exceptional item within “total operating costs” excluding this exceptional item proﬁt before tax was us24638 million in 2008 exceptional items included in the consolidated income statement 
comprise i an impairment charge of us1883 million relating to property plant and equipment at el tesoro and michilla which has been recorded within “total operating costs” and ii a proﬁt 
of us10249 million relating to the sale of a 30 interest in esperanza and el tesoro to marubeni corporation which has been recorded within “proﬁt on partdisposal of subsidiaries” 
excluding these items proﬁt before tax is us17729 million further details of these exceptional items are set out in note 5
3  ebitda refers to earnings before interest tax depreciation and amortisation ebitda is calculated by adding back depreciation amortisation and proﬁt or loss on disposals of property plant 
and equipment and impairment charges to operating proﬁt from subsidiaries and joint ventures ebitda for 2010 and 2009 is reconciled to operating proﬁt in the financial review on page 62
4 earnings per share and dividends per share have been restated for the effects of the 4for1 bonus issue on 19 june 2006
5 borrowings under ifrs include amounts due under ﬁnance leases and preference shares 
6 certain 2008 and 2009 cash cash equivalents and liquid investment balances have been reclassiﬁed as detailed in note 1 to the ﬁnancial statements other information
134 antofagasta plc annual report and financial statements 2010
ore reserves and mineral resources estimates
at 31 december 2010
introduction
the ore reserves and mineral resources estimates presented in this report comply with the 
requirements of the australasian code for reporting of exploration results mineral resources 
and ore reserves 2004 edition the jorc code which has been used by the group as minimum 
standard for the preparation and disclosure of the information contained herein the deﬁnitions 
and categories of ore reserves and mineral resources are set out below
the information on ore reserves and mineral resources was prepared by or under the supervision 
of competent persons as deﬁned in the jorc code the competent persons have sufﬁcient 
experience relevant to the style of mineralisation and type of deposit under consideration and 
to the activity which they are undertaking the competent persons consent to the inclusion in 
this report of the matters based on their information in the form and context in which it appears 
the competent person for exploration results and mineral resources is orlando rojas 
mausimm assistant manager of mineral resource evaluation for antofagasta minerals sa 
the competent person for ore reserves is murray canﬁeld p eng ontario technical manager 
operations for antofagasta minerals sa
the group’s operations and projects are subject to a comprehensive programme of audits 
aimed at providing assurance in respect of ore reserves and mineral resources estimates 
the audits are conducted by suitably qualiﬁed competent persons from within a particular 
division another division of the company or from independent consultants
the ore reserves and mineral resources estimates represent full reserves and resources 
with the group’s attributable share for each mine shown in the ‘attributable tonnage’ column 
the group’s economic interest in each mine is disclosed in the notes following the estimates 
on pages 138 to 140 the totals in the table may include some small apparent differences 
as the speciﬁc individual ﬁgures have not been rounded
deﬁnitions and categories of ore reserves and mineral resources 
a ‘mineral resource’ is a concentration or occurrence of material of intrinsic economic interest 
in or on the earth’s crust in such form quality and quantity that there are reasonable prospects 
for eventual economic extraction the location quantity grade geological characteristics and 
continuity of a mineral resource are known estimated or interpreted from speciﬁc geological 
evidence and knowledge mineral resources are subdivided in order of increasing geological 
conﬁdence into inferred indicated and measured categories
an ‘inferred mineral resource’ is that part of a mineral resource for which tonnage grade and 
mineral content can be estimated with a low level of conﬁdence it is inferred from geological 
evidence and assumed but not veriﬁed geological andor grade continuity it is based on 
information gathered through appropriate techniques from locations such as outcrops trenches 
pits workings and drill holes which may be limited or of uncertain quality and reliability
an ‘indicated mineral resource’ is that part of a mineral resource for which tonnage densities 
shape physical characteristics grade and mineral content can be estimated with a reasonable 
level of conﬁdence it is based on exploration sampling and testing information gathered through 
appropriate techniques from locations such as outcrops trenches pits workings and drill holes 
the locations are too widely or inappropriately spaced to conﬁrm geological andor grade 
continuity but are spaced closely enough for continuity to be assumed
a ‘measured mineral resource’ is that part of a mineral resource for which tonnage densities 
shape physical characteristics grade and mineral content can be estimated with a high level 
of conﬁdence it is based on detailed and reliable exploration sampling and testing information 
gathered through appropriate techniques from locations such as outcrops trenches pits 
workings and drill holes the locations are spaced closely enough to conﬁrm geological 
and grade continuity 
an ‘ore reserve’ is the economically mineable part of a measured andor indicated mineral 
resource it includes diluting materials and allowances for losses which may occur when the 
material is mined appropriate assessments and studies have been carried out and include 
consideration of and modiﬁcation by realistically assumed mining metallurgical economic 
marketing legal environmental social and governmental factors these assessments 
demonstrate at the time of reporting that extraction could reasonably be justiﬁed 
ore reserves are subdivided in order of increasing conﬁdence into probable ore reserves 
and proved ore reserves 
a ‘probable ore reserve’ is the economically mineable part of an indicated and in some 
circumstances a measured mineral resource it includes diluting materials and allowances for 
losses which may occur when the material is mined appropriate assessments and studies have 
been carried out and include consideration of and modiﬁcation by realistically assumed mining 
metallurgical economic marketing legal environmental social and governmental factors these 
assessments demonstrate at the time of reporting that extraction could reasonably be justiﬁed 
a ‘proved ore reserve’ is the economically mineable part of a measured mineral resource 
it includes diluting materials and allowances for losses which may occur when the material is 
mined appropriate assessments and studies have been carried out and include consideration 
of and modiﬁcation by realistically assumed mining metallurgical economic marketing legal 
environmental social and governmental factors these assessments demonstrate at the time 
of reporting that extraction could reasonably be justiﬁed  strategic review other information financial statements governance financial review operational review
135 antofagasta plc annual report and financial statements 2010
ore reserves
tonnage
millions of tonnes
copper

molybdenum

gold
gtonne
attributable tonnage
millions of tonnes
2010 2009 2010 2009 2010 2009 2010 2009 2010 2009
group subsidiaries
los pelambres see note a
proved 5484 6136 067 066 0021 0022 003 003  3291  3682 
probable 8846 8890 063 063 0015 0016 003 003  5308  5334 
total 14330 15026 064 064 0018 0018 003 003  8598  9016 
esperanza sulphides see note b
proved 2076 2072 052 052 0010 0010 021 021  1454  1450 
probable 3794 3761 056 056 0010 0010 023 023  2656  2633 
total 5870 5833 055 054 0010 0010 022 022  4109  4083 
el tesoro see note c
open pit tesoro northeast and mirador
proved 764 990 094 076 – – – – 535  693 
probable 538 65 067 094 – – – – 377  46 
subtotal 1302 1055 083 077 – – – – 912  739 
el tesoro rom esperanza oxides
proved 51 496 038 037 – – – – 36  347 
probable 973 564 035 036 – – – – 681  395 
subtotal 1024 1060 035 036 – – – – 717  742 
total 2327 2116 062 057 – – – – 1629  1481 
michilla see note d
proved 18 34 156 127 – – – – 13  25 
probable 40 61 152 140 – – – – 30  45 
total 58 95 153 135 – – – – 43  70 
group total 22585 23070 062 061  14379  14650  other information
136 antofagasta plc annual report and financial statements 2010
ore reserves and mineral resources estimates continued
at 31 december 2010
mineral resources  
including ore reserves 
tonnage
millions of tonnes
copper

molybdenum

gold
gtonne
attributable tonnage
millions of tonnes
2010 2009 2010 2009 2010 2009 2010 2009 2010 2009
group subsidiaries
los pelambres see note a
measured 6134 6870 066 065  0021 0021 003 003  3680  4122 
indicated 12470 12250 061 060  0014 0015 003 003 7482 7350 
measured  indicated 18604 19120 063 062  0016 0017 003 003  11163  11472 
inferred 39579 42529 048 048  0006 0008 004 004  23748  25517 
total 58184 61649 053 052  0010 0011 004 004  34910  36989 
esperanza sulphides see note b
measured 2567 2338 048 051  0010 0011 018 020  1797  1637 
indicated 6340 5658 047 050  0011 0012 017 018 4438 3961 
measured  indicated 8907 7996 047 050  0011 0012 017 019  6235  5597 
inferred 10319 4048 031 035  0008 0012 006 007  7223  2834 
total 19226 12044 039 045  0010 0012 011 015  13458  8431 
el tesoro see note c
open pit tesoro northeast and mirador
measured 865 1100 091 089  – – – – 605  787 
indicated 625 531 066 069  – – – – 438 447 
measured  indicated 1490 1631 081 082  – – – – 1043  1234 
inferred 60 70 062 048  – – – – 42  53 
subtotal 1550 1701 080 081  – – – – 1085  1287 
el tesoro rom esperanza oxides
measured 53 496 043 037 – – – – 37  347 
indicated 979 564 032 036 – – – – 685 395 
measured  indicated 1031 1060 033 036  – – – – 722  742 
inferred 181 260 030 030 – – – – 127  182 
subtotal 1213 1320 033 035  – – – – 849  924 
total 2763 3021 059 061  – – – – 1934  2211 
michilla see note d
measured 227 113 186 230 – – – – 168  84 
indicated 200 214 169 243 – – – – 148 159 
measured  indicated 427 327 178 239  – – – – 317  243 
inferred 136 101 176 187 – – – – 101  75 
total 562 428 178 227  – – – – 417  318 
antucoya see note e
measured 4973 4973 031 031 – – – – 4973  4973 
indicated 6560 6560 026 026 – – – – 6560 6560 
measured  indicated 11534 11534 028 028  – – – – 11534  11534 
inferred 3557 3557 024 024 – – – – 3557  3557 
total 15091 15091 027 027  – – – – 15091  15091  strategic review other information financial statements governance financial review operational review
137 antofagasta plc annual report and financial statements 2010
mineral resources  
including ore reserves 
tonnage
millions of tonnes
copper

molybdenum

gold
gtonne
attributable tonnage
millions of tonnes
2010 2009 2010 2009 2010 2009 2010 2009 2010 2009
group subsidiaries
telégrafo see note f
oxides
measured – – – – – – – – – –
indicated 143 – 019 – – – – – 100 –
measured  indicated 143 – 019 – – – – – 100  –
inferred 366 – 022 – – – – – 256  –
subtotal 508 – 021 – – – – – 356  –
sulphides
measured – – – – – – – – – –
indicated 11377 – 040 – 0015 – 013 – 7964 –
measured  indicated 11377 – 040 – 0015 – 013 – 7964  –
inferred 15393 – 032 – 0007 – 008 – 10775  –
subtotal 26770 – 036 – 0010 – 010 – 18739  –
total 27279 – 035 – – – – – 19095  –
caracoles see note g
oxides
measured – – – – – – – – – –
indicated – – – – – – – – – –
measured  indicated – – – – – – – – – –
inferred 1324 – 050 – – – – – 1324  –
subtotal 1324 – 050 – – – – – 1324  –
sulphides
measured 78 – 068 – 0017 – 035 – 78  –
indicated 6760 – 047 – 0016 – 018 – 6760 –
measured  indicated 6838 – 048 – 0016 – 018 – 6838 –
inferred 3127 – 038 – 0014 – 018 – 3127  –
subtotal 9965 – 045 – 0015 – 018 – 9965  –
total 11289 – 045 – – – – – 11289  –
measured  indicated 60351 41668 048 052 – – – – 45914  30821 
inferred 74042 50565 041 045 – – – – 50280  32218 
group subsidiaries total 134393 92233 044 048 – – – – 96194  63040 
group joint ventures
reko diq see note h
measured 17382 17382 054 054 – – 031 031  6518  6518 
indicated 12446 12446 039 039 – – 020 020 4667 4667 
measured  indicated 29828 29828 048 048  – – 026 026  11186  11186 
inferred 28850 28850 035 035 – – 018 018  10819  10819 
group joint ventures total 58678 58678 041 041 – – 022 022  22004  22004 
group total
measured  indicated 90179 71497 048 050  57100  42007 
inferred 102892 79416 039 042  61098  43037 
total 193071 150913 043 046  118198  85044 
continued other information
138 antofagasta plc annual report and financial statements 2010
ore reserves and mineral resources estimates continued
at 31 december 2010
notes to ore reserves and mineral resources estimates
the ore reserves mentioned in this report were determined considering speciﬁc cutoff grades 
for each mine and using a longterm copper price of 220 cents per pound 170 cents per pound 
in 2009 us1200 per pound molybdenum us800 per pound in 2009 and us850 per 
gold ounce us650 per gold ounce in 2009 unless otherwise noted these same values 
have been used for copper equivalent cueq estimates where appropriate
in order to ensure that the stated resources represent mineralisation that has “reasonable 
prospects for eventual economic extraction” jorc code the resources are enclosed within pit 
shells that were optimised based on measured indicated and inferred resources and considering 
a copper price of 250 cents per pound mineralisation estimated outside these pit shells is not 
included in the resource ﬁgures unless they can expect to be exploited by underground methods
a los pelambres 
los pelambres is 60 owned by the group the cutoff grade applied to the determination of 
ore reserves and mineral resources is 035 copper for 2010 the mineral resource model 
has been updated with 79 inﬁll drill holes for a total of 14439 metres in this model more 
restrictive criteria for estimation have been used incorporating recommendations included in 
a preaudit report conducted by amec october 2009 density and metallurgical models have 
also been updated 
the decrease in ore reserves is mainly related to depletion corresponding to mine production in 
2010 other factors are related to the updated resource model that considered more restrictive 
estimation criteria the ﬁnal pit design has not been modiﬁed for the 2010 ore reserve estimate
the decrease in mineral resources is related to ore depletion reﬁnement of the resource block 
model with more restrictive estimation criteria and the methodology applied in 2010 to limit the 
resource estimation to those resources contained within an unsmoothed optimised pit shell 
using all resource categories and a copper price of 250 cents per pound additionally there 
is a decrease resulting from the elimination of the resources falling within the las tigresas 
concessions which are 100 owned by the group not directly by los pelambres which 
are adjacent to the concessions owned by los pelambres
b esperanza sulphides 
esperanza is 70 owned by the group the cutoff grade applied to the determination of ore 
reserves is 020 equivalent copper with 015 copper used as a cutoff grade for mineral 
resources which is a change from 020 copper used in 2009
during 2010 a small part of ore reserves were depleted to feed the concentrator plant 
the small increase in ore reserves is related to mixed oxide and sulphide material that was 
considered as a rom oxide resource in the original block model but has now been redeﬁned 
as mill feed for the esperanza concentrator plant the ﬁnal pit design has not been modiﬁed 
for the 2010 ore reserve estimate
during 2010 the esperanza block model was updated with the incorporation of 15 inﬁll drill 
holes for a total of 2914 metres the focus of this programme was to better identify the oxide
sulphide interface included in the updated block model is a reinterpretation of the estimation 
parameters to deﬁne inferred resources this resulted in a signiﬁcant increase in this category 
of resources in the estimate
mineral resources have been limited to those contained within an unsmoothed optimised pit 
shell using a copper price of 250 cents per pound the optimised pit shell used to limit mineral 
resources is based on an integrated block model that joins the esperanza and telégrafo 
orebodies into one model
c el tesoro 
el tesoro is 70 owned by the group the ore reserves and mineral resources are made up 
of the el tesoro tesoro northeast and mirador deposits which are processed by heap leaching 
and the runofmine rom oxide ore reserves and mineral resources from the esperanza mine 
located ﬁve kilometres southeast of el tesoro an agreement was entered into in 2008 whereby 
the esperanza oxide mineral resources were purchased by el tesoro for a onetime payment 
esperanza delivers the rom ore released during the prestripping and operating phases of the 
esperanza operation to a permanent leach pad constructed and operated by the el tesoro mine 
at the request of el tesoro some of the higher grade esperanza oxide ore is sent directly to the 
el tesoro heap leach pads
the cutoff grade used for estimation of ore reserves and mineral resources for the el tesoro 
and tesoro northeast deposits is 041 copper the cutoff grade used for estimation of ore 
reserves and mineral resources for the mirador deposit is 030 copper reﬂecting higher 
projected recoveries and lower acid consumption for the mirador deposit in the 2010 midyear 
update the cutoff grade used for the mirador deposit was 035 copper ore reserves for 
mirador increased from 222 million tonnes as reported in the 2010 midyear update to 
251 million tonnes in this report
proved and probable ore reserves for the el tesoro open pits were depleted by 56 million tonnes 
as plant feed the remainder of plant feed came from higher grade esperanza oxides for 2010 
the signiﬁcant increase in ore reserves is related to the incorporation of the mirador deposit into 
ore reserve ﬁgures 
two principal factors are responsible for the decrease in mineral resources compared to 2009 
the 2009 ﬁgures have been modiﬁed to incorporate the mirador deposit mineral resources into 
the el tesoro portion of the table with the attributable tonnage values for 2009 reﬂecting the 
100 ownership interest in mirador at that time an increase in mineral resources related to the 
inclusion of stockpiled ore which was omitted from the 2009 report has been more than offset 
by a reduction in mineral resources as a result of the methodology applied in 2010 to limit the 
resource estimation to those resources contained within an unsmoothed optimised pit shell 
using all resource categories and a copper price of 250 cents per pound
the cutoff grade used for estimation of both ore reserves and mineral resources for the 
el tesoro rom esperanza oxides is 020 copper during the year 284 million tonnes of oxide 
ore reserves were extracted from the esperanza pit of which 41 million tonnes of higher grade 
oxide ore were delivered directly to the el tesoro heap leach pads and subsequently depleted 
a total of 371 million tonnes are in the rom leach pads and have been partially leached 
and another 254 million tonnes have been delivered to the rom leach pads or stockpiles 
and have not yet been put under leach
this year the esperanza resource model has been updated see note “b” which results in a 
small portion of the original rom oxide resource higher grade mixed oxides and sulphides 
being redeﬁned as mill feed for the esperanza concentrator plant
d michilla 
michilla is 742 owned by the group and its operations comprise an open pit mine an 
underground mine and other workings the cutoff grade applied to the determination of ore 
reserves and mineral resources is 040 copper for open pits 12 copper for the estefanía 
underground mine and 10 copper for other workings
during 2010 ore reserves were depleted by a net 37 million tonnes plant feed was 52 million 
tonnes with the difference coming from additional ore not considered in the mine plan the ore 
reserve estimate for 2010 is still based on a mine plan developed in 2009 that extends to 2012 
mine staff have been working on inﬁll drilling and evaluation studies to extend the mine plan to 
2015 and potentially beyond during 2010 inﬁll and exploration drilling was carried out on the 
estefaníalince deposits and on several other satellite deposits for a total of 86650 metres in 
493 drill holes
the 2010 mineral resources estimate includes several changes from 2009 the most 
substantive change is the incorporation of the aurora deposit into the michilla mineral resources 
the aurora deposit was previously accounted for in the ‘other mineral inventory’ section of the 
notes another relevant change is a reversion of the 2009 decision to include the lince mineral 
resources not included in the existing open pit mine plan as underground resources with a 
cutoff grade of 10 copper upon further review there is a potential for one or two more 
pushbacks in the lince open pit  strategic review other information financial statements governance financial review operational review
139 antofagasta plc annual report and financial statements 2010
as a result as in other projects the open pit mineral resource estimate includes those resources contained within an unsmoothed optimised pit shell using all resource categories and a copper 
price of 250 cents per pound and applying a cutoff grade of 040 copper within the pit shell this same methodology was applied to two other areas that have potential for open pit exploitation 
the aurora and nucleo deposits the mineral resources estimate for michilla includes several resource block models incorporating the multiple deposits on the property a portion of the extensive 
drilling programme carried out in 2009 and continuing in 2010 has been included in resource block model updates for the 2010 mineral resources estimates the ore reserve estimate has not 
yet fully incorporated these changes in the resource block models
not included in the mineral resources estimate is the spent ore deposited on site this is material that is removed from the dynamic heap leach pads after the primary leach cycle is completed 
since the beginning of the lince project in 1994 between 65 and 70 million tonnes of spent ore has been deposited in a spent ore dump adjacent to the dynamic leach pads the grade of this 
material is expected to be in the range of 020 to 030 copper during 2010 testwork was done on an industrial scale to determine the potential viability of releaching this material by removing 
it from the spent ore dump and placing it under leach on the dynamic pads testwork will continue in 2011 and it is expected that spent ore will contribute an increasing amount to copper 
production through this releaching process
e antucoya
antucoya is 100 owned by the group a feasibility study on the project which started in 2009 will be complete in 2011 the concept for processing is a combination of heap leaching on 
dynamic pads and runofmine rom leaching on permanent pads 
there have been no changes to mineral resources estimated for antucoya the cutoff grade applied to the mineral resources estimate is 010 copper and include those mineral resources 
contained within an unsmoothed optimised pit shell using a copper price of 250 cents per pound
f telégrafo
telégrafo is owned 70 by the group and is adjacent to the esperanza deposit this is a project which was reported in ‘other mineral inventory’ in 2009 and was included into resource ﬁgures 
in the “2010 midyear update to ore reserves and mineral resources estimates” 
during the second half of 2010 an upgrade of the resource block model was carried out incorporating the results from 98 inﬁll drill holes for a total of 44389 metres and also an update to the 
geological and grade models the cutoff grade applied to the mineral resources estimate is 015 copper for both oxides and sulphides and include those mineral resources contained within 
an unsmoothed optimised pit shell using a copper price of 250 cents per pound this is a change from the cutoff grade used in the midyear update which was 020 copper the optimised 
pit shell used to limit mineral resources is based on an integrated block model that joins the esperanza and telégrafo orebodies into one model
g caracoles
caracoles is owned 100 by the group this is a project which was reported in “other mineral inventory” in 2009 and was included into resource ﬁgures in the “2010 midyear update to ore 
reserves and mineral resources estimates” there have been no changes to the mineral resources estimate during the second half of 2010 the cutoff grade is 020 copper for both oxides 
and sulphides and include those mineral resources contained within an unsmoothed optimised pit shell using a copper price of 250 cents per pound
h reko diq
the group holds a 50 interest in tethyan copper company limited “tethyan” its joint venture with barrick gold corporation established in 2006 tethyan’s principal assets are a 75 interest 
in the exploration licence encompassing the reko diq prospects in the chagai hills region of southwest pakistan in which the government of balochistan holds the remaining 25 including 
the western porphyries and a 100 interest in certain other licences in the region
there have been no changes to the mineral resources estimate for reko diq the cutoff grade applied to the determination of mineral resources is 020 copper equivalent for reko diq copper 
equivalent values are calculated based on a copper price of 190 cents per pound and a gold price of 725 dollars per ounce the mineral resources are those contained within unsmoothed optimised 
pit shell using the same prices
i other mineral inventory
in addition to the mineral resources noted above the group has interests in other deposits located in the antofagasta region of chile some of them containing gold andor molybdenum 
at the moment they are in exploration or in the process of resource estimation the potential quantity and grade of each of the deposits is conceptual in nature there has been insufﬁcient 
exploration to deﬁne these deposits as mineral resources and it is uncertain if further exploration will result in the determination of a mineral resource these include
i in the sierra gorda district 
in the sierra gorda district the group has two operations el tesoro and esperanza and others in exploration or under study such as llanopaleocanal 70 owned by the group centinela 
51 owned by the group and polo sur 100 owned by the group the mineral inventory of these deposits incorporating both oxide and sulphide mineralisation is estimated to be in 
the range of 450 to 690 million tonnes with grades in the range of 054 to 044 copper the table below lists each of the mineral deposits with its associated tonnage and grade ranges 
the number of drill holes and associated metres drilled as well as the group’s ownership interest
mineral deposit
tonnes range  
million tonnes
grade range  
 cu
number 
drill holes
total 
metres
ownership 
interest  

llano – paleocanal 90 140 051 041 79 17100 700 
centinela 60 100 076 063 36 9900 510 
polo sur 300 450 050 041 200 50500 1000 
total 450 690 054 044 315 77500  other information
140 antofagasta plc annual report and financial statements 2010
ore reserves and mineral resources estimates continued
at 31 december 2010
notes to ore reserves and mineral resources estimates continued
ii in the michilla district
in the michilla district there are several satellite deposits to the main michilla orebody that have been included in the mineral resources table however there is at least one other deposit within a 
potentially economic radius of the michilla mine rencoret owned 100 by the group
mineral deposit
tonnes range  
million tonnes
grade range  
 cu
number 
drill holes
total 
metres
ownership 
interest  

rencoret 15 25 122 100 31 8300 1000 
total 15 25 122 100 31 8300 
iii in the el abra district 
the group has two mineral deposits within a few kilometres of the el abra orebody located near calama in the antofagasta region of chile conchi is a porphyry copper mineral deposit with oxide 
and sulphide mineralisation while brujulina is an exoticstyle mineral deposit oxide mineralisation only the mineral inventory of these deposits is estimated to be in the range of 05 to 07 billion 
tonnes with grades in the range of 07 to 05 copper 
the table below lists each of the mineral deposits with its associated tonnage and grade ranges as well as the group’s ownership interest
mineral deposit
tonnes range  
million tonnes
grade range  
 cu
number 
drill holes
total 
metres
ownership 
interest  

conchi 440 660 067 055 123 30950 510 
brujulina 50 80 065 053 159 15300 510 
total 490 740 067 055 282 46250 
j antomin 2 and antomin investors 
the group has an approximately 51 interest in two indirect subsidiaries antomin 2 limited “antomin 2” and antomin investors limited “antomin investors limited” which own a number of 
copper exploration properties in chile’s antofagasta region and coquimbo region these include but are not limited to centinela see note ii above and conchi and brujulina see note iiii above 
the remaining approximately 49 of antomin 2 and antomin investors is owned by mineralinvest establishment “mineralinvest” a company controlled by the luksic family 
the group has the exclusive right to acquire at fair value under certain conditions the shareholding of mineralinvest in antomin 2 limited and antomin investors or the underlying properties 
for a period of ﬁve years from august 2008 the group also has committed to meet in full any exploration costs relating to the properties held by these two entities
further details are set out in note 37d to the ﬁnancial statements
k twin metals minnesota llc nokomis project and franconia minerals corporation birch lake project
in january 2010 the group announced an agreement to acquire 40 of the nokomis project owned 100 by duluth metals limited “duluth” the deal closed in july 2010 and the joint venture 
twin metals minnesota llc “twin metals” was created as the operating company for the nokomis project a coppernickelplatinum group metal “pgm” deposit located in northeast minnesota 
usa see press releases of 14 january and 21 july 2010 for more information
in december 2010 the group announced an agreement to indirectly acquire the franconia minerals corporation “franconia” 70 participation in the birch lake project located adjacent to the 
nokomis project in minnesota through the twin metals joint venture owned 40 by the group franconia announced in november 2010 its intention to increase its participation in the birch lake 
project to 82 see press release of 20 december 2010 for more information as explained in note 39 following approval of the acquisition by franconia’s shareholders and by the court of 
queen’s bench of alberta duluth completed the acquisition on 7 march 2011
nokomis project
duluth the group’s partner published an ni 43101 compliant resource estimate consisting of 550 and 274 million tonnes of indicated and inferred resource respectively with a combined copper 
grade of approximately 06 and a combined copper equivalent grade of approximately 15 taking into account the nickel platinum palladium and gold content at the time of reporting the group 
is in the process of reviewing the existing mineral resource estimate with a view to incorporating information from the signiﬁcant drilling campaign and testwork that was undertaken during 2010 
into an updated resource model to support further studies
birch lake project
franconia has published ni 43101 compliant resource estimates for the birch lake deposit the maturi deposit and the spruce road deposit the birch lake deposit is reported to consist of 
177 and 40 million tonnes of indicated and inferred resource respectively with a combined copper grade of approximately 05 and a combined copper equivalent grade of approximately 12 
the maturi deposit is reported to consist of 120 million tonnes of inferred resource with a copper grade of 067 and with additional values for nickel cobalt and pgms the spruce road deposit 
is reported to consist of inferred resources of 124 million tonnes with a copper grade of 059 and a nickel grade of 021 strategic review other information financial statements governance financial review operational review
141 antofagasta plc annual report and financial statements 2010
mining production and sales transport and water statistics
production sales cash costs realised prices
production and sales volumes  
realised prices and cash cost by mine
2010  
’000  
tonnes
2009 
’000 
tonnes
2010 
’000 
tonnes
2009 
’000 
tonnes
2010 
us cents
2009 
us cents
2010 
us cents
2009 
us cents
copper
los pelambres 3846 3116 3791 3136 793 804 3717 2868 
el tesoro 953 902 953 898 1692 1234 3519 2463 
michilla 412 406 416 395 1838 1576 2638 1957 
group total 5211 4425 5160 4429 
group weighted average net of byproducts 1040 963 3593 2706 
cash cost at los pelambres comprise
onsite and shipping costs 1068 953 
tolling charges for concentrates 176 192 
cash cost before deducting byproduct credits 1244 1145 
byproduct credits principally molybdenum 451 341
cash cost net of byproduct credits 793 804 
lme average 3420 2342 
molybdenum
los pelambres 88 78 89 77 162 113 
market average price 157 111 
quarterly information q1 q2 q3 q4
2010 
year
2009 
year
group total
total copper production volume ’000 tonnes 1177 1352 1407 1275 5211 4425 
total copper sales volume ’000 tonnes 1170 1123 1591 1276 5160 4429 
total molybdenum production volume ’000 tonnes 18 27 22 21 88 78 
total molybdenum sales volume ’000 tonnes 16 25 22 26 89 77 
weighted average realised copper price cents per pound 3381 2643 3702 4490 3593 2706 
realised molybdenum price dollars per pound 199 148 154 159 162 113 
weighted average cash costs cents per pound
– excluding byproduct credits and tolling charges 1159 1118 1242 1454 1243 1068 
– excluding byproduct credits 1288 1245 1383 1577 1373 1203 
– net of byproduct credits 947 887 1090 1234 1040 963  other information
142 antofagasta plc annual report and financial statements 2010
mining production and sales transport and water statistics continued
quarterly information q1 q2 q3 q4
2010 
year
2009 
year
los pelambres 60 owned
daily average ore treated ’000 tonnes 1379 1743 1699 1554 1594 1292 
average ore grade  078 076 077 074 076  074 
average recovery  895 902 898 904 900 921 
concentrate produced ’000 tonnes 2446 3220 3171 2770 11607 9511 
average concentrate grade  353 338 341 344 344 339 
fine copper in concentrate ’000 tonnes 864 1061 1100 955 3980 3226 
payable copper in concentrate – production volume ’000 tonnes 835 1025 1062 923 3846 3116 
payable copper in concentrate – sales volume ’000 tonnes 839 785 1238 929 3791 3136 
average moly ore grade  0019 0021 0017 0019 0019  0020 
average moly recovery  767 843 812 815 813 811 
payable moly in concentrate – production volume ’000 tonnes 18 27 22 21 88 78 
payable moly in concentrate – sales volume ’000 tonnes 16 25 22 26 89 77 
copper realised price cents per pound 3486 2565 3831 4749 3717 2868 
onsite and shipment costs cents per pound 1039 938 1029 1283 1068 953 
tolling charges for concentrates cents per pound 182 167 186 170 176 192 
cash costs before byproduct cents per pound 1221 1105 1215 1453 1244 1145 
byproduct credits cents per pound 481 472 388 473 451 341
cash costs cents per pound 741 633 827 980 793 804 
el tesoro 70 owned
daily average ore treated ’000 tonnes 242 259 269 287 264 262 
average ore grade  124 115 104 098 110 125 
average recovery  788 697 667 715 717 730 
copper cathodes – production volume ’000 tonnes 244 229 241 238 953 902 
copper cathodes – sales volume ’000 tonnes 225 241 248 239 953 898 
copper realised price cents per pound 3365 3040 3477 4199 3519 2463 
cash costs cents per pound 1343 1598 1902 1928 1692 1234  strategic review other information financial statements governance financial review operational review
143 antofagasta plc annual report and financial statements 2010
quarterly information q1 q2 q3 q4
2010 
year
2009 
year
michilla 742 owned
daily average ore treated ’000 tonnes 133 150 140 140 141 151 
average ore grade  104 094 106 109 103 096 
average recovery  779 756 789 779 776 775 
copper cathodes – production volume ’000 tonnes 98 97 104 113 412 406 
copper cathodes – sales volume ’000 tonnes 106 97 105 108 416 395 
copper realised price cents per pound 2585 2287 2722 2926 2638 1957 
cash costs cents per pound 1723 1886 1894 1843 1838 1576 
transport 100 owned
rail tonnage transported ’000 tons 1502 1537 1526 1619 6184  6335 
road tonnage transported ’000 tons 492 490 431 506 1919  1505 
water 100 owned
water volume sold – potable and untreated ’000m
3
 11349 11397 11164 12392 46302  43736 
notes
a the production ﬁgures represent the total amounts produced for each mine not the group’s attributable share for each mine
b  los pelambres produces copper and molybdenum concentrates and the ﬁgures for los pelambres are expressed in terms of payable metal contained in concentrate the copper 
concentrate also contains gold and silver for which los pelambres is credited when the concentrate is sold el tesoro and michilla produce copper cathodes with no byproducts
c  cash costs are a measure of the cost of operational production expressed in terms of cents per pound of payable copper produced cash costs are stated net of byproduct credits and 
include tolling charges for concentrate for los pelambres cash costs exclude depreciation ﬁnancial income and expenses hedging gains and losses exchange gains and losses and 
corporation tax for all three operations byproduct calculations do not take into account unrealised marktomarket gains for molybdenum at the beginning or end of each period
d  water volumes include water transportation of 185000 m
3
 in q1 253000 m
3
 in q2 318000 m
3
 in q3 299000 m
3
 in q4 and total for 2010 of 1055000 m
3
 343000 m
3
 in q1 2009 
302000 m
3
 in q2 2009 242000 m
3
 in q3 2009 240000 m
3
 in q4 and total for 2009 of 1128000 m
3

e the totals in the table may include some small apparent differences as the speciﬁc individual ﬁgures have not been rounded other information
144 antofagasta plc annual report and financial statements 2010
glossary and deﬁnitions
business financial and accounting
adasa aguas de antofagasta sa a whollyowned subsidiary of the group 
incorporated in chile and operating the water concession in chile’s 
antofagasta region acquired from econssa
adr american depositary receipt
aifr all injury frequency rate
amsa antofagasta minerals sa a whollyowned subsidiary of the group 
incorporated in chile which acts as the corporate centre for the mining division
annual report the annual report and financial statements 2010 of antofagasta plc
antomin antomin limited a whollyowned subsidiary of the group incorporated in 
jersey a 51owned subsidiary until 25 august 2008
antucoya copper project located approximately 45 kilometres east of michilla
ati antofagasta terminal internacional sa a 30owned associate of the 
group incorporated in chile and operating the port in the city of antofagasta
australian dollars australian currency
banco de chile banco de chile a subsidiary of quiñenco
barrick gold barrick gold corporation the joint venture partner of the group in tethyan
board the directors of antofagasta plc who collectively have responsibility for the 
conduct of the group’s business
capex capital expenditures
caracoles compañía contractual minera caracoles a whollyowned subsidiary of 
the group incorporated in chile 815 owned prior to february 2009 – 
see note 31
cash costs a measure of the cost of operational production expressed in terms of 
cents per pound of payable copper produced cash costs are stated net 
of byproduct credits and include tolling charges for concentrates for 
los pelambres cash costs exclude depreciation ﬁnancial income and 
expenses hedging gains and losses exchange gains and losses and 
corporation tax
ccu compañía de cervecerías unidas sa an associate of quiñenco
cgu cashgenerating unit
chilean peso chilean currency
2008  
combined  
code
the revised combined code on corporate governance published by the 
financial reporting council in june 2008 and applicable to listed companies 
for reporting years beginning on or after 29 june 2008
compañía  
minera milpo
compañía minera milpo saa of peru is a former owner of a 185 
interest in caracoles acquired by the group in february 2009
companies  
act 2006
principal legislation for united kingdom company law
company antofagasta plc
desalant desalant sa former owner of a desalination plant located in antofagasta 
and acquired by the group through adasa
directors the directors of the company
duluth duluth metals limited incorporated in canada which owns the nokomis 
deposit in minnesota united states
ebitda earnings before interest tax depreciation and amortisation
econssa empresa concesionaria de servicios sanitarios sa the chilean  
stateowned company which previously operated the regulated and 
nonregulated water distribution business in chile’s antofagasta region 
formerly known as essan
el tesoro minera el tesoro a 70owned subsidiary of the group incorporated in chile 
a whollyowned subsidiary of the group until 25 august 2008 before the 
marubeni transaction
enap empresa nacional del petróleo the 40 joint venture partner of the group 
in energía andina sa
energía andina  
sa
energía andina sa a 60owned joint venture entity of the group 
incorporated in chile
eps earnings per share
equatorial equatorial mining limited a whollyowned subsidiary of the group 
incorporated in australia
esperanza minera esperanza a 70owned subsidiary of the group incorporated 
in chile a whollyowned subsidiary of the group until 25 august 2008 
before the marubeni transaction
essan empresa de servicios sanitarios sa former name of econssa
eu european union
fca empresa ferroviaria andina sa a 50owned subsidiary of the group 
incorporated in bolivia
fcab ferrocarril de antofagasta a bolivia the chilean name for the antofagasta 
railway company plc a whollyowned subsidiary of the group 
incorporated in the united kingdom and operating a rail network in chile’s 
antofagasta region
franconia franconia minerals corporation incorporated in the united states which has 
a 70 interest in the birch lake joint venture
fsa financial services authority
ftse 100 index a marketcapitalisation weighted index representing the performance of the 
100 largest ukdomiciled blue chip companies
ftse allshare 
index
a marketcapitalisation weighted index representing the performance of all 
eligible companies listed on the london stock exchange’s main market
gaap generally accepted accounting practice or generally accepted 
accounting principles
government the government of the republic of chile
group antofagasta plc and its subsidiaries’ companies
hedge  
accounting
accounting treatment for derivatives ﬁnancial instrument permitted under  
ias 39 “financial instruments recognition and measurement” which 
recognises the offsetting effects on proﬁt or loss of changes in the fair 
values of a hedging instrument and the hedged item
ias international accounting standards strategic review other information financial statements governance financial review operational review
145 antofagasta plc annual report and financial statements 2010
iasb international accounting standards board
ifric international financial reporting interpretations committee
ifrs international financial reporting standards
inversiones 
hornitos
inversiones hornitos sa a 40owned associate of the group incorporated 
in chile which owns the 150mw hornitos thermoelectric power plant in 
mejillones under construction in chile’s antofagasta region
iva impuesto al valor agregado or chilean value added t ax chilean vat
key management 
personnel
persons with authority and responsibility for planning directing and 
controlling the activities of the group
kpi key performance indicator
libor london inter bank offer rate
lme london metal exchange
los pelambres minera los pelambres a 60owned subsidiary of the group incorporated  
in chile
lse london stock exchange
ltifr lost time injury frequency rate
madeco madeco sa a subsidiary of quiñenco
marubeni marubeni corporation the group’s 30 minority partner in el tesoro 
and esperanza
metallica 
resources  
chile limitada
minera metallica resources chile limitada a subsidiary of new gold inc 
formerly metallica resources inc a company with exploration interests 
in the río figueroa project
michilla minera michilla sa a 742owned subsidiary of the group incorporated  
in chile
mirador copper prospect located in the sierra gorda district
mulpun coal gasiﬁcation project located near valdivia in southern chile
provisional  
pricing
a sales term in several copper and molybdenum concentrate sale 
agreements and cathodes sale agreements which provides for provisional 
pricing of sales at the time of shipment with ﬁnal pricing being based on the 
monthly average lme copper price or monthly average molybdenum price  
for speciﬁc future periods normally ranging from 30 to 180 days after 
delivery to the customer for the purposes of ias 39 the provisional sale is 
considered to contain an embedded derivative ie the forward contract for 
which the provisional sale is subsequently adjusted which is separated from 
the host contract ie the sale of metals contained in the concentrate or 
cathode at the provisional invoice price less tolling charges deducted
quiñenco quiñenco sa a chilean ﬁnancial and industrial conglomerate under the 
control of the luksic family and listed on the santiago stock exchange
realised prices effective sale price achieved comparing revenues grossed up for tolling 
charges for concentrate with sales volumes
reko diq reko diq is a substantial coppergold porphyry district in southwest pakistan 
which is held through tethyan copper company limited a 5050 joint 
venture with barrick gold corporation of canada with the government of 
balochistan holding a 25 interest in the main exploration licence giving 
the group an effective 375 interest
río figueroa río figueroa an exploration project located in chile’s atacama region
sierra gorda 
district
copper district located in the antofagasta region of chile where el tesoro 
and esperanza are located
sterling united kingdom currency
sunridge sunridge gold corp an 18owned associate of the group which has  
a base and precious metals project in eritrea
svs superintendencia de valores y seguros de chile the chilean securities 
regulator
teal teal exploration  mining incorporated a company listed on the toronto  
stock exchange with exploration and project interests on the zambian  
copper belt in africa
telégrafo copper prospect located in the sierra gorda district held through esperanza
tethyan tethyan copper company limited a 50owned joint venture entity of the 
group incorporated in australia
tsr total shareholder return being the movement in the company’s share price 
plus reinvested dividends
t urnbull  
guidance
the revised guidance on internal control for directors on combined code 
issued by the turnbull review group in october 2005
twin metals twin metals minnnesota llc a 40owned subsidiary of the group 
incorporated in the united states
uk united kingdom
ukla united kingdom listing authority
us united states
us dollars united states currency other information
146 antofagasta plc annual report and financial statements 2010
glossary and deﬁnitions continued
mining industry
brownﬁeld  
project
a development or exploration project in the vicinity of an  
existing operation
byproducts 
credits in copper 
concentrates
products obtained as result of copper processing the los pelambres  
mine produces molybdenum concentrate and also receives credit for 
the gold and silver content in the copper concentrate sold
concentrate the product of a physical concentration process such as ﬂotation 
or gravity concentration which involves separating ore minerals from 
unwanted wasted rock concentrates require subsequent processing  
such as smelting or leaching to break down or dissolve the ore 
minerals and obtain the desired elements usually metals
contained  
copper
the proportion or quantity of copper contained in a given quantity 
of ore or concentrate
copper cathode reﬁned copper produced by electrolytic reﬁning of impure copper 
by electrowinning
cutoff grade the lowest grade of mineralised material considered economic to process 
and used in the calculation of ore reserves and mineral resources
flotation a process by which chemicals are added to materials in a solution which 
are attracted to bubbles and ﬂoat whilst other materials sink resulting in 
the production of concentrate
grade a copper 
cathode
highest quality copper cathode lme registered and certiﬁcated in the  
case of michilla and el tesoro
greenﬁeld  
project
the development or exploration of a new project not previously examined
heap leaching a process for the recovery of copper from ore the crushed material is  
laid on a slightly sloping impermeable pad and leached by uniformly 
trickling gravity fed chemical solution through the beds to ponds 
the metal is then recovered from the solution through the sxew process
jorc joint ore reserves committee of australia
leaching the process by which a soluble mineral can be economically recovered  
by dissolution
lom or 
life of mine
the remaining life of a mine expressed in years calculated by reference  
to scheduled production rates ie comparing the rate at which ore is 
expected to be extracted from the mine to current deﬁned reserves
mineral  
resources
material of intrinsic economic interest occurring in such form and quantity 
that there are reasonable prospects for eventual economic extraction 
mineral resources are stated inclusive of ore reserves as deﬁned by jorc
mw megawatts one million watts
open pit mine working or excavation which is open to the surface
ore rock from which metals or minerals can be economically and  
legally extracted
ore grade the relative quantity or the percentage of metal content in an ore body  
or quantity of processed ore
ore reserves part of mineral resources for which appropriate assessments have been 
carried out to demonstrate at a given date extraction could be reasonably 
justiﬁed and which include consideration of and modiﬁcation by realistically 
assumed mining metallurgical economic marketing legal environmental 
social and governmental factors
oxide and  
sulphide ores
different kinds of ore containing copper oxide ore occurs on the 
weathered surface of orerich lodes and normally results in the production 
of cathode copper through a heapleaching process sulphide ore comes 
from an unweathered parent ores process and normally results in 
the production of concentrate through a ﬂotation process which then 
requires smelting and reﬁning to produce cathode copper
payable copper the proportion or quantity of contained copper for which payment is 
received after metallurgical deduction
porphyry a large body of rock which contains disseminated chalcopyrite and other 
sulphide minerals such a deposit is mined in bulk on a large scale 
generally in open pits for copper and its byproduct molybdenum
price  
participation
part of the tolling charges for copper concentrate under a sales agreement 
usually in addition to tcrcs and calculated as a percentage of the 
difference between the copper price at ﬁnal pricing and an agreed 
reference copper price and which may result in an increase or decrease  
to tcrcs
price sharing tolling charges calculated under a sales agreement as an agreed 
percentage of the price for the metal contained in copper concentrate 
as an alternative to tcrcs andor price participation
runofmine 
rom
a process for the recovery of copper from ore typically used for lowgrade 
ores the mined uncrushed ore is leached with a chemical solution 
the metal is then recovered from the solution through the sxew process
stockpile material extracted and piled for future use
sxew solventextraction and electrowinning a process for extracting metal 
from an ore and producing pure metal first the metal is leached into 
solution the resulting solution is then puriﬁed in the solventextraction 
process the solution is then treated in an electro chemical process 
electrowinning to recover cathode copper
tailings dam construction used to deposit the rock waste which remains as a result 
of the concentrating process after the recoverable minerals have been 
extracted in concentrate form
tcrcs treatment and reﬁning charges being terms used to set the smelting and 
reﬁning charge or margin for processing copper concentrate and normally 
set either on an annual basis or on a spot basis
tolling charges charges or margins for converting concentrate into ﬁnished metal 
these include tcrcs price participation and price sharing for copper 
concentrate and roasting charges for molybdenum concentrate
tpd tonnes per day normally with reference to the quantity of ore processed 
over a given period of time expressed as a daily average
underground mine natural or manmade excavation under the surface of the earth strategic review other information financial statements governance financial review operational review
147 antofagasta plc annual report and financial statements 2010
currency abbreviations
us cents – cents of us dollars
us – us dollar
us’000 – thousand us dollars
usm – million us dollars
£ – pounds sterling
£’000 – thousand pounds sterling
£m – million pounds sterling
p – pence
cm – million canadian dollars
ch – chilean peso
ch’000 – thousand chilean pesos
chm – million chilean pesos
a – australian dollars
a’000 – thousand australian dollars
am – million australian dollars
deﬁnitions and conversion of weights and measures
gt – grammes per tonne
lb – pound
ounce or oz – a troy ounce
’000 m
3
 – thousand cubic metres
’000 tonnes – thousand tonnes
1 kilogramme  22046 pounds
1 metric tonne  1000 kilogrammes
1 kilometre  06214 miles
1 troy ounce  311 grammes
chemical symbols
cu – copper
mo – molybdenum
au – gold
ag – silver other information
148 antofagasta plc annual report and financial statements 2010
shareholder information
annual general meeting and class meetings 
the annual general meeting will be held at church house conference centre dean’s yard 
westminster london sw1p 3nz from 1030 am on wednesday 8 june 2011 
shareholder calendar 2011
4 may 2011  quarterly production report – q1 2011
4 may 2011  exdividend date for 2010 final dividend
6 may 2011  record date for 2010 final dividend
11 may 2011  sterling rate for 2010 final dividend
26 may 2011  quarterly financial report – q1 2011
8 june 2011  annual general meeting
9 june 2011  payment date for 2010 final dividend
3 august 2011  quarterly production report – q2 2011
23 august 2011  interim results announcement – half year 2011
14 september 2011  exdividend date for 2011 interim dividend 
16 september 2011  record date for 2011 interim dividend
21 september 2011  sterling rate for 2011 interim dividend
6 october 2011  payment date for 2011 interim dividend
2 november 2011  quarterly production report – q3 2011
24 november 2011  quarterly financial report – q3 2011
these dates are provisional and subject to change
dividends
details of dividends proposed in relation to the year are given in the directors’ report on 
page 72 and in note 12 to the ﬁnancial statements
dividends are declared in us dollars but may be paid in either dollars or sterling shareholders 
on the register of members with an address in the united kingdom receive dividend payments 
in sterling unless they elect to be paid in dollars all other shareholders are paid by cheque 
in dollars unless they have previously instructed the company’s registrar to pay dividends 
by bank transfer to a sterling bank account or they elect for payment by cheque in sterling 
the company’s registrar must receive any such election before the close of business on 
the record date of 6 may 2011
dividends are paid gross without deduction of united kingdom income tax antofagasta plc is not 
resident in the united kingdom for tax purposes and dividends paid by antofagasta are treated 
the same way as dividends received from any other foreign company
if approved at the annual general meeting the ﬁnal dividend of us 1120 cents per ordinary 
share will be paid on 9 june 2011 to shareholders on the register at the close of business 
on 6 may 2011
the conversion rate for ﬁnal dividends to be paid in sterling will be set on 11 may 2011
share capital
details of the company’s share capital are given in note 29 to the ﬁnancial statements
london stock exchange listing
the company’s ordinary shares are listed on the london stock exchange lse company code 
anto the company is a constituent of the ftse 100 share index the company’s american 
depositary receipts adrs also trade on the overthecounter market in the united states 
each adr represents the right to receive two ordinary shares
registrars and transfer ofﬁce
computershare investor services plc 
the pavilions bridgwater road 
bristol bs13 8ae 
tel 440 870 703 0084 
wwwcomputersharecom
registered ofﬁce
5 princes gate knightsbridge 
london sw7 1qj united kingdom 
tel 440 207 808 0988 
fax 440 207 808 0986
santiago ofﬁce
antofagasta minerals sa 
av apoquindo 4001 – piso 18 
santiago chile 
tel 562 02 798 7000 
fax 562 02 798 7445
registered number
1627889
website
wwwantofagastacouk
additional information can be found in the shareholder information section of the 
notice of annual general meeting and on the group’s website design and production 
radley yeldar wwwrycom
printing 
royle print
royle print is fsc and iso 14001 certiﬁed 
with strict procedures in place to safeguard 
the environment through all processes
this report has been printed on satimat which  
is a wood free coated paper and fsc certiﬁed
fsc – forest stewardship council this ensures  
that there is an audited chain of custody from the  
tree in the wellmanaged forest through to the 
ﬁnished document in the printing factory
iso 14001 – a pattern of control for an environmental 
management system against which an organisation 
can be credited by a third party
directors
jp luksic   chairman
c h bailey   nonexecutive
g s menéndez  nonexecutive
r f jara   nonexecutive
d e yarur   nonexecutive resigned 132011
g a luksic   nonexecutive
j g claro   nonexecutive
w m hayes   nonexecutive
h dryland   nonexecutive appointed 2012011
t c baker   nonexecutive appointed 132011
company secretary
petershill secretaries ltd 
plumtree court london ec4a 4ht
auditors
deloitte llp
solicitors
clifford chance llp
financial advisors
n m rothschild  sons
hsbc investment bank
stockbrokers
merrill lynch international
jp  morgan cazenove
banker
the royal bank of scotland plc
directors and advisors
149 antofagasta plc annual report and financial statements 2010 antofagasta plc
5 princes gate 
london 
sw7 1qj 
united kingdom
visit wwwantofagastacouk 
for uptodate investor information including  
our past ﬁnancial results


Summary:
 01 antofagasta plc annual report and financial statements 2010
strategic review other information financial statements governance financial review operational review
strategic review 08
strategy for the mining business 10
marketplace 12
key performance indicators 16
risk management 18
overview and highlights 01
antofagasta at a glance  02
chairman’s statement 04
the strategy for growing our mining 
business is based around three pillars
strategic enablers
operational review 22
mining 26
1 securing and strengthening the core business 26
2 organic and sustainable growth of the core business 40
3 growth beyond the core business 42
transport 44
water 45
corporate sustainability 46
financial review 58
governance 68
the board of directors 70
directors’ report 72
corporate governance report  76
remuneration report  81  more information on page 10
 more information on page 11
financial statements 84
statement of directors’ responsibilities  86
independent auditors’ report  87
consolidated income statement 88
consolidated statement of comprehensive income 89
consolidated statement of changes in equity  89
consolidated balance sheet 90
consolidated cash flow statement 91
notes to the financial statements 92
other information 132
five year summary  132
ore reserves and mineral resources estimates 134
mining production and sales transport  
and water statistics 141
glossary and deﬁnitions 144
shareholder information  148
directors and advisors 149
quality of 
existing assets
commitment to 
health and safety
strong ﬁnancial 
position
strong labour 
relations
experienced 
management 
team
community 
relations
extensive mineral 
resource base
efﬁcient 
environmental 
management
3  growth beyond 
the core business
2  organic and 
sustainable growth of  
the core business
1  securing and 
strengthening the  
core business