Our vision: to be an international mining company based in Chile, focused on copper and related by-products and recognised for operating efficiency, value creation and as a preferred partner in the global mining industry.

Our strategy for growing our mining business is based around three pillars:

  1. 1THE EXISTING CORE BUSINESS
    • Continue deploying the Safety Model across all operations to achieve zero fatalities.
    • Identify and capture further cost savings through the Cost and Competitiveness Programme (CCP) to improve performance and competitive position.
    • Implement a New Operating Model to enhance the operations’ performance.
    • Cultivate a proactive and inclusive approach to communities and other stakeholders to strengthen sustainable development.
  2. 2ORGANIC AND SUSTAINABLE GROWTH OF THE CORE BUSINESS
    • Finalise and commission projects under construction: Encuentro Oxides and the Molybdenum Plant.
    • Advance the feasibility studies and permitting processes of the Group’s main brownfield projects: Los Pelambres Incremental Expansion and Centinela Second Concentrator.
  3. 3GROWTH BEYOND THE CORE BUSINESS
    • Work to develop the long-term growth pipeline beyond the Group’s existing operations.
    • Continue the exploration programme focused on the Americas to identify long-term growth options.
    • Monitor the current market to assess the potential value of accretive acquisitions or joint ventures.

 

The first pillar of the strategy is to optimise and enhance the existing core business: Los Pelambres, Centinela, Antucoya and Zaldívar.

CURRENT STRATEGIC FOCUS:

  • Continue deploying the Safety Model across all operations to achieve zero fatalities.
  • Identify and capture further cost savings through the Cost and Competitiveness Programme (CCP) to improve performance and competitive position.
  • Implement a New Operating Model to enhance the operations’ performance.
  • Cultivate a proactive and inclusive approach to communities and other stakeholders to strengthen sustainable development.

2016 in Review

  • Antofagasta regrets that there have been two fatalities this year. The Group will continue embedding its Safety Model and is certain that the zero fatalities target will be achieved.
  • Copper production of 709,400 tonnes, representing a 12.5% increase compared to 2015.
  • Group net cash costs of $1.20/lb were lower than the initial guidance for the year. This was due to the successful implementation of the CCP, which achieved $176 million of mine cost savings, exceeding its target of $160 million.
  • The highest-cost operation, Michilla, was sold.
  • Los Pelambres reached an agreement with the Caimanes community regarding El Mauro tailings dam and resolved the outstanding court cases.

Objectives for 2017

  • Zero fatalities. Improve safety standards through strengthened application of the Safety Model. Focus on cultural change within the organisation.
  • Copper production of 685-720,0001 tonnes. Work on the implementation of the New Operating Model to improve operations’ reliability and release latent capacity.
  • Maintain cash costs before by-product credits at $1.55/lb, similar to 2016. Capture an additional $140 million of cost reductions under the CCP, focusing on structural cost savings and productivity.
  • Cultivate strong relationships with communities and local stakeholders.

The second pillar of the strategy is to achieve sustainable, organic growth from further developing the areas around the Group’s existing asset base in Chile: Encuentro Oxides, Centinela Molybdenum Plant, Los Pelambres Incremental Expansion and Centinela Second Concentrator.

CURRENT STRATEGIC FOCUS:

  • Finalise and commission projects under construction: Encuentro Oxides and the Molybdenum Plant.
  • Advance the feasibility studies and permitting processes of the Group’s main brownfield projects: Los Pelambres Incremental Expansion and Centinela Second Concentrator.

2016 in Review

  • Antucoya reached design capacity during the year. Zaldívar successfully integrated into the Group.
  • Construction of Encuentro Oxides and Molybdenum Plant slowed during 2016, to focus on cash preservation.
  • Environmental approval obtained for Centinela Second Concentrator project. Environmental Impact Assessment (EIA) submitted for Los Pelambres Incremental Expansion project (Phase I).
  • Feasibility studies progressed for both brownfield growth projects.
  • Centinela Concentrator plant reached design capacity of 105,000 tpd.

Objectives for 2017

  • Continue working on capturing synergies, especially in operations in the north of Chile.
  • Commission Encuentro Oxides and Molybdenum Plant projects.
  • Construction decision on Los Pelambres Incremental Expansion by the end of the year (Phase I). Advance Centinela Second Concentrator feasibility study. Continue innovation programme to assess value-capturing technologies at the Group’s operations.
  • Complete Centinela Second Concentrator feasibility study.
  • Complete the ramp up of tailings thickeners and stabilise throughput at Centinela.

The third pillar of the strategy is to seek growth beyond the Group’s existing operations – both in Chile and internationally. The focus is on potential acquisitions of both high-quality operating assets and high-potential early-stage developments.

CURRENT STRATEGIC FOCUS:

  • Work to develop the long-term growth pipeline beyond the Group’s existing operations.
  • Continue the exploration programme focused on the Americas to identify long-term growth options.
  • Monitor the current market to assess the potential value of accretive acquisitions or joint ventures.

2016 in Review

  • Rationalised international exploration programme.
  • Advanced studies relating to the Twin Metals project in preparation for permit applications.

Objectives for 2017

  • Continue monitoring the market to identify potential opportunities.
  • Refocus exploration programme on the Americas, allocating more resources to high-prospect targets.
  • Seek confirmation of the mining properties and advance permitting process.