EXECUTIVE SUMMARY

this month ’ s series :

Antofagasta Plc
The Luksic group-owned miner saw
a drop in production in 2009, but
output levels are due to recover in
2010 thanks to the expansion of Los
Pelambres and treatment of oxide
ore from Esperanza.
Southern Copper
The Mexican-owned company registered
better than expected operational results
last year and expects to reach production
of 500,000t of copper in 2010.
Codelco
The Chilean state miner posted a
significant production increase in
2009 thanks largely to the Gabriela
Mistral mine, which contributed its
first full year of output at capacity.
Anglo American
The company´s copper unit showed
good results in 2009, reinforcing plans
to expand capacity by 33% by 2013.
Copper producers:
Batteries recharged
The recovery in raw material prices in the
second half of last year is clearly visible in
the results of mining companies. After a
depressing start to 2009, when the global
economy was deep in uncertainty and fear
of a major depression was set loose across
the map, markets began to show signs
of recovery in the second quarter of the
year, thanks mostly to China and India.
The recovery gathered force in the second
half of the year, reflected unmistakably in
metals prices.
The brief drop in prices and their relatively
rapid recovery is clearly reflected in the
February 2010
results of the major miners. Although end-
2009 balances show a general drop in profits
compared to 2008, the results are still
strong. And now, despite the cautiousness
that dominates the sector, miners have
already started to dust off their projects.
Investment is back and, most importantly,
companies are financially strong enough
to move forward with expansion plans. In
this report we will analyze the results of
the principal copper producing companies
in Latin America and their plans for the
coming years.

Xstrata Copper
The copper arm of this Swiss multinational
reported a dip in red metal production in
2009 to a total of 906,898t, of which
665,800t correspond to its South
American operations. However, the
company has reactivated a significant
package of growth projects. Antofagasta, results 2009-2008
Freeport-McMoRan (millons of US$)

Freeport is expecting to see copper sales Los Pelambres El Tesoro Michilla Total Minería
from South America decrease again this 2009 2008 2009 2008 2009 2008 2009 2008 Var %
year - to some 590,000t - due to lower
Revenue 2,081 2,172 488 632 171 333 2,740 3,137 -13
grades at El Abra, but the company has
a number of projects in the pipeline to Ebitda 1,409 1,430 232 343 28 118 1,564 1,782 -12
return to growth in the coming years. Operating profit 1,281 1,348 178 125 22 71 1,372 1,433 -4
Profit 599 612 104 140 18 39 596 887 -33
BHP Billiton
The Anglo-Australian natural resources Copper productiong (tonnes) 322,600 351,100 90,200 90,800 40,600 47,700 442,500 477,700 -7
giant reported a major jump in revenue
derived from its base metals businesses Source: Antofagasta plc
in the second half of 2009, reflecting
greater production from the Escondida
mine on the back of improved grades,
the completion of repairs at the SAG
mill and higher realized prices.

Conclusion
Just as expected, the biggest copper
producers with operations in Latin America
have started to reactivate the investment
plans they froze or slowed down a year
ago during the global financial crisis.

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 Written and researched by
Raúl Ferro and Renzo Pipoli

Business Intelligence

Director

Mining Daily Raúl Ferro

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