Antofagasta AR 22

Developing mining
for a better future

Annual Report and Financial Statements 2022
Contents
Strategic Report Corporate Governance Financial Statements
Overview Applying the Code in 2022 104 Financial performance

Our purpose 1 Board leadership and Independent auditors’ report 174
Performance highlights 2 Company purpose 106 Consolidated income statement 181
At a glance 4 Division of responsibilities 118 Consolidated statement
Letter from the Chairman 6 Composition, succession of comprehensive income 182
and evaluation 125
Letter from the Chief Executive Officer 9 Consolidated statement of changes
Audit, risk and internal control 129 in equity 182
The copper market 12
Business model 16 Consolidated balance sheet 183
Remuneration
Our strategic framework 18 Consolidated cash flow statement 184
Remuneration and Talent Management
Key Performance Indicators 22 Committee Chair’s introduction 142 Notes to the financial statements 185
Risk management 24 Remuneration at a glance 146 Parent Company financial statements 234
2023 Directors’ and CEO’s
Stakeholder review Remuneration Policy 148 Other Information
Highlights 40 2022 Directors’ and CEO’s Alternative performance measures 238
Our approach to sustainability 42 Remuneration Report 155
Five-year summary 242
How we engage with our stakeholders 46 Remuneration and Talent Management
Production statistics 244
Our people 48 Committee report 163
Ore reserves and mineral resources
Safety and occupational health 51 Implementation of the Directors’ and
estimates 245
Communities 54 CEO’s remuneration policy in 2023 165
Glossary and definitions 256
Environment 57 Directors’ Report 168
Shareholder information 259
Climate change 60 Statement of Directors’
responsibilities 171
Task Force on Climate-related
Financial Disclosures (TCFD) 64
Suppliers 67
Customers 70
Shareholders 71
Governments and regulators 72
Non-financial information statement 73
Operating review Our reporting suite

Mining division 76
Sustainability Report Social Management Report
Transport division 84
antofagasta.co.uk/sr22 antofagasta.co.uk/smr22
Growth projects and opportunities 86
Exploration activities 89 Tax Progress Report ESG Data Book
antofagasta.co.uk/tax21 antofagasta.co.uk/esgdb
Key costs 90
Operating excellence and innovation 92 Climate Change Report
Financial Review 94 antofagasta.co.uk/ccr22
In this Annual Report, the terms “Company”, “Group”, “we”, “us”, “our” and “ourselves” are used to refer to Antofagasta plc and, unless the context requires otherwise, its subsidiaries.
These terms may be used as collective expressions where general reference is made to the companies in the Group and/or where no useful purpose is served by identifying any
particular company or companies.
We are committed
to our purpose of
developing mining
for a better future
Read more on how we are delivering
on our strategic framework on P18
Antofagasta plc Annual Report 2022 1

Strategic Report
/ Performance highlights
Key performance
highlights in 2022
Record year for safety, and strong growth in
mineral resources. Production in transition while
Los Pelambres advances its expansion projects.
NON-FINANCIAL HIGHLIGHTS
Safety Copper production2 Mineral resources3
0 0.84 646,200 20.1bn

tonnes tonnes
Fatalities LTIFR 1
Record safety performance, with no fatal

accidents, and all our safety indicators
improved during the year. Copper production decreased by 10% mainly Total mineral resources increased by 1 billion
due to the temporary reduction in throughput tonnes during the year.
at Los Pelambres as a result of the drought
and the reduced concentrate pipeline
availability in June, and expected lower
grades at Centinela Concentrates.
Water withdrawals Scope 1 and 2 emissions Growth projects

Zaldívar Chloride Leach project
73 GL 1.3 million
100%
tCO2e
of which 45.4% was sea water.
completed in 2022.
Decreased by 37% since 2021. Esperanza Sur Pit project
Gender diversity Total economic contribution 100%

20.4% $7.4bn
pre-stripping completed in July 2022.
Los Pelambres Expansion project
93%
of our employees are women. We generate economic value for all our
stakeholders, 4% higher than last year.
More information
on P41 complete as at the end of 2022 with the
desalination plant and the concentrator plant
expansion due to be in production during the
second quarter of 2023.
Centinela Second Concentrator
project
Engineering and pre-investment studies
underway.
2 Antofagasta plc Annual Report 2022

FINANCIAL HIGHLIGHTS
Net cash costs4 EBITDA4 Profit before tax
$1.61/lb $2,930m $2,559m

Increased by 34% since 2021 mainly due Decreased by 39% with an EBITDA margin Profit before tax decreased by 26%.
to the impact of the drought and higher input of 50%, reflecting a decrease in copper sales,
prices, partly offset by the weaker Chilean a lower copper price, higher inflation and
peso and savings coming from our Cost and higher input prices.
Competitiveness Programme.
Underlying earnings per share Earnings per share including Total dividend
excluding exceptional items4 exceptional items per share
$59.7¢ $155.5¢ $59.7¢

Underlying earnings per share decreased Earnings per share including exceptional Equivalent to a payout ratio of 100%.
by 82.8 cents or 58% compared with 2021 items for the year, reflect the impact of an
on lower EBITDA. exceptional gain of 95.8 cents per share,
and were 18% higher than in 2021.
1. The Lost Time Injury Frequency Rate is the number of accidents with lost time per million hours worked.
2. 100% of production at Los Pelambres, Centinela and Antucoya, and 50% of Zaldívar’s production.
3. Mineral resources (including ore reserves) relating to the Group’s subsidiaries on a 100% basis and Zaldívar on a 50% basis.
4. Non-IFRS measure, refer to the alternative performance measures section on page 238.

Strategic Report
/ At a glance
A portfolio that delivers
We operate four copper mines in Chile, two of which produce significant volumes of molybdenum
and gold as by-products.
In addition to mining, our Transport division provides rail and road cargo services in northern
Chile predominantly to mining customers, which include some of our own operations.
Employees2
Copper production Net cash costs 1
Gender diversity
LOS PELAMBRES 275,000 tonnes $1.10/lb 1,144

60% owned 2022 2022
12-year mine life
22.2% women
320-335,000 tonnes $1.25/lb
Produces copper concentrates containing
2023 forecast 2023 forecast
gold and silver and a separate molybdenum
concentrate
CENTINELA 247,500 tonnes $1.75/lb 2,484

70% owned 2022 2022
43-year mine life
20.9% women
235-250,000 tonnes $1.70/lb
Produces copper cathodes and copper
concentrates containing gold and silver
and a separate molybdenum concentrate
ANTUCOYA 79,200 tonnes $2.50/lb 894

70% owned 2022 2022
21-year mine life
15.2% women
70-75,000 tonnes $2.45/lb
Produces copper cathodes
ZALDÍVAR 44,500 tonnes $2.39/lb 932

50% owned (and operated) 2022 2022
13-year mine life
12.8% women
45-50,000 tonnes $2.70/lb
Produces copper cathodes
TRANSPORT 7.1m tonnes 1,410

Cargo transport system in the Antofagasta 2022
Region of Chile 19.9% women
900 km rail network
GROUP 646,200 tonnes $1.61/lb 7,4943

2022 2022
20.4%3 women
670-710,000 tonnes $1.65/lb
1. Non-IFRS measure, refer to the alternative performance measures section on page 238.
2. Employees, excludes contractors as at 31 December 2022.
3. Group includes 630 employees in our corporate offices, 35.2% of them are women.

Antucoya
Centinela
Zaldívar
ESG COMMITMENT
Sustainability is at the heart of our decision-making as we seek to achieve our purpose
of developing mining for a better future.
Each of our four mining operations has been awarded the Copper Mark, the copper industry’s new
responsible production assurance framework, and completed the ICMM’s Performance Expectations
Los Pelambres
third-party validation process.
Santiago
Revenue EBITDA4
$5,862m $2,930m
Los Pelambres $2,559m Los Pelambres $1,473m

Centinela $2,406m Centinela $1,157m
Antucoya $704m Antucoya $261m
Transport $193m Zaldivar $147m
Transport $80m
FUTURE GROWTH
The Group has a pipeline of growth projects sent to the Board for final investment approval
to develop our significant mineral resource during 2023 following completion of the Los
base which we are currently advancing through Pelambres Expansion project and once there is
a disciplined process of project evaluation. sufficient clarity on the outcomes of the ongoing
We also have a portfolio of growth opportunities discussions on the mining royalty and tax reform
located mainly in Chile. bills, and the rewriting of the Chilean constitution.
The Zaldívar Chloride Leach project was completed
in 2022 and pre-stripping of the Esperanza Sur
pit project was completed in July.
The Los Pelambres Expansion project was
93% complete as at the end of 2022 with the
desalination plant and the concentrator plant
expansion due to be in production during the
second quarter of this year.
Progress continues on the engineering and
pre-investment studies for the $3.7 billion Centinela
Second Concentrator project. In line with our strict
approach to capital allocation, the project will be
4. Totals to more than 100% as excludes $187 million of corporate costs, exploration and evaluation, and other non-operating
income and expenses. See Note 6 to the financial statements.

Strategic Report
/ Letter from the Chairman
At our core, we are

a long-term business
A powerful long-term tailwind for copper also continued to gather
strength: the transition to a low-carbon economy. The United States
passed the Inflation Reduction Act in 2022 and the European Union
recently announced its Net Zero Industry Act. Together they promise
to spur further investment in the many copper-intensive products and
technologies integral to a net-zero world. And in November 2022,
COP27 took place in Egypt, drawing further attention and commitments
from governments to a net-zero future.
Chile’s economic, social and political environment
The centrality of climate change to Chile – and to Antofagasta
Heat waves, wildfires, a drought stretching into its 13th year; the effects
of climate change were once again powerfully felt in Chile. It’s a vital
issue for the country, for business, for the communities where we
operate, and for our people and their families. It is important that
I highlight what we’re doing to align ourselves with Chile’s vision for
Jean-Paul Luksic a net-zero future.
Chairman Achieving and setting new climate-related targets
Combatting climate change sits at the centre of Antofagasta’s strategy.
Lowering emissions and reducing continental water use remain two key
Dear shareholders issues for which we have a group-level strategy, board-level focus and
At its core, Antofagasta is a long-term business. Our mines operate on company-wide initiatives.
decades-long timelines and our strong balance sheet is the result of In line with Chile’s national target, Antofagasta is working towards being
years of disciplined capital allocation. We continue to be mindful of carbon-neutral by 2050. Last year we surpassed our 2025 emission
short-term developments but remain committed to thinking and acting target to reduce our emissions by 30%, achieving this three years early,
for the long-term. and we are now in process of setting a new target.
This year has certainly had its challenges, but it is times such as these In April 2022, the last of our mining operations started using solely
that make demands on us that calmer times do not. They test our renewable energy and all our mining operations have now received The
resolve and resilience, and in this Annual Report you’ll find stories about Copper Mark, an independently verified responsible production standard.
what we have done to demonstrate both. My thanks go out to everyone
Our project to build a desalination plant and water pipeline at Los
across our company who helped us to navigate the year successfully.
Pelambres will start operating in the second quarter of 2023 and by
I also want to take this opportunity to acknowledge everyone’s efforts 2025 we expect that 90% of the Group’s water usage will be sea or
that have led to us having a record safety performance this year. Not recirculated water, substantially reducing our continental water
only did we not have any fatal accidents, but we also improved our high withdrawals.
potential incidents and lost time injury frequency rate to record lows.
Our commitment to Environmental, Social and Governance (ESG)
I know this requires constant care and attention from everyone at our
Our efforts on climate change are an integral part of our ESG strategy,
operations, from the leadership team to every employee and contractor
but far from the only ones. The copper we produce has a key role to
and I applaud them for their success.
play in a net-zero world; our responsibility is to produce it sustainably,
2022 – A volatile year for copper and the global economy efficiently, and with respect for local communities and the environment.
Copper’s price fluctuations reflected the broader volatility in the global ESG considerations are integrated into our business and we are working
economy. Although the details differed in important ways for each major with our suppliers, not just in the application of our safety standards,
economy, their growth was similarly dampened in 2022. Driving the but also of our sustainability practices. In 2022, Antofagasta set new
slowdown were headwinds that dominated the headlines for much standards for sustainability for our suppliers, and by doing so we plan to
of the year: Russia’s invasion of Ukraine and the economic shockwaves gradually align their ESG capabilities with our own. Whether it’s lowering
and energy crisis it sparked; rising inflation and interest rates; the emissions, insisting on enhanced minimum wages, or ensuring that
lingering effects of COVID-19; China’s reduced economic activity; mining becomes more diverse and inclusive, such partnerships are
and ongoing supply shortages and strained global supply chains. poised to deliver progress in areas that are fundamental to our purpose:
Yet it wasn’t entirely a year of headwinds for copper. As China, a market “Developing Mining for a Better Future”.
that consumes over half of the world’s metals, relaxed its zero-COVID
policies in the final weeks of 2022, and as the country’s property market
started to show signs of recovery, commodity prices lifted due to low
stocks and an anticipation of a return to stronger economic growth.
In March, copper reached a historic high of $4.86/lb before falling to
a low of $3.18/lb in July and then recovering to end the year at $3.81/lb.

“ESG considerations A notable operational issue that Antofagasta faced this year related to
water. The drought in central Chile continued to affect communities in
are integrated into

the region and Los Pelambres. The water shortage has reduced our
production in the short-term, but we will soon complete construction
of a new desalination plant and this will lift the water constraints at
our business.” Los Pelambres.
Challenges such as this reinforce the importance of planned investment,
our engagement with local communities and decisions we’ve taken over
the years to become a more resilient business. The desalination plant
would have been completed earlier but for the pandemic, and we need
Chile’s handling of COVID-19 to expand this plant to improve the water availability for other consumers
COVID-19’s effects waned during the year, but Chile was not immune in the region. The expansion is currently being permitted and if this is
to the economic challenges felt by many countries, particularly rising completed on schedule over 95% of Los Pelambres’s water will then be
inflation and supply chain disruptions. The country’s budget deficit during either sea or recirculated water.
the pandemic period was over 7% of GDP, but in 2022 the deficit is Los Pelambres also advanced its concentrator plant expansion during the
expected to have reversed to a surplus of approximately 1.6% of GDP, year and this will come into production in the second quarter of 2023.
a commendable achievement.
Exit from Reko Diq, Pakistan
Chile’s uncertain political environment Ten years after work on the Reko Diq project stopped, Antofagasta
In a September referendum, the country rejected a proposed draft for finalised an agreement with Barrick Gold Corporation and the
a new Constitution, reflecting support for a more centrist approach going Governments of Pakistan and Balochistan to exit the project and receive
forward. A new Constitution will be drafted in 2023, with a new proceeds of $946 million. This enables us to refocus our time and
referendum scheduled for December. My hope is that this new resources on strengthening Antofagasta’s business in other priority
Constitution will unite Chileans and provide the clarity and stability that locations, notably in the Americas.
helps attract investments and all the opportunities that flow from them
to Chile. Twin Metals Minnesota, USA
In January 2022, the US Department of Interior cancelled two mineral
After a long period of discussion between Congress, government and leases which Twin Metals had renewed in 2019. The Company is
industry, the proposed mining royalty bill is now with the Senate for challenging this decision and we still believe that Twin Metals represents
review before moving to the lower house. Our focus remains on a world-class project to provide the critical metals that a growing and
ensuring that Chile’s mining industry, which accounts for more than 10% greener world requires.
of the country’s GDP, remains competitive globally and thereby able to
contribute to furthering Chile’s economic and societal growth.
The upcoming year presents Antofagasta with important capital
decisions, notably the construction of a second concentrator at Centinela
and we will make these decisions when we have a clearer picture of the
Constitution and the mining royalty legislation.
Antofagasta’s 2022 performance
Our performance reflected the challenges of a difficult operating
environment with copper production falling and net cash costs
increasing, and revenue of $5.9 billion and $2.9 billion of EBITDA. We
ended the year strongly, with our performance improving in key areas,
from lower cash costs to increased production, compared with the first
half of the year.

Strategic Report
/ Letter from the Chairman continued
Transport division Vivianne joined the Board in 2014 and since then, half of our Board
It was a strong year for our Transport division, which had a record year appointments have been female, with women currently comprising 30%
for both safety and the tonnage transported. of our Board. However, we aim to increase female representation to
40%, and we are actively working towards this target.
The division has been based in the city of Antofagasta for over a century
and during this period the city has grown extensively. The location of its Outlook for 2023
facilities and workshops are now in the city centre, providing a The IMF forecasts that global growth will slow in 2023 affected by
long-term opportunity to repurpose the area and fully integrate it into the a number of issues, particularly the war in Ukraine, China’s economic
future urban development of the city. We have therefore made the performance, the rate of economic growth in the US and Europe, and
decision to relocate the facilities and workshop 40 miles north to an the energy crisis. In addition, Chile’s political and economic environment
industrial area near the town of Mejillones. further complicates the outlook.
We have been making progress and in 2022, prior to beginning the Uncertainty clouds the short-term picture, yet important features of the
urban redevelopment, we started the process of converting the former long-term are clearer. The world is moving towards net-zero. That
railyard into a historic neighbourhood. This involved us working closely journey will demand more copper, according to some forecasters almost
with the local community and authorities to ensure the project meets the 10 million more tonnes over the next decade alone, at a time when the
needs of the area and is environmentally sustainable. global copper supply is constrained by declining resource quality and
Governance update long lead times for project development and permitting. Our focus
This year saw our entire board meet in person for the first time since remains on being a leading, responsible producer of the copper that the
early 2020. It also saw our directors make site visits to at least one of low-carbon world requires.
our operations, including to the desalination plant and concentrator plant We know that in any environment, the diversity, safety and health of our
expansion projects, and to Los Pelambres’ tailings dams. The insights people matter. So do the vibrancy of our culture and the discipline with
from these visits were shared at board and committee meetings, which we manage costs. Such steps not only strengthen the core of our
deepening the directors’ understanding of our activities. business but position us so that 2023 is not defined by the challenges
By the date of our 2023 AGM, Vivianne Blanlot will have served on our we face, but by our responses to them.
Board for nine years and, although she has agreed to continue on the Jean-Paul Luksic
Board, she will no longer be considered ‘independent’. She has therefore
Chairman
stepped down from the Nomination and Governance Committee and
Remuneration and Talent Management Committee, and has been
appointed to the Projects Committee.
To fill the vacancies on these committees, Francisca Castro has joined
the Nomination and Governance Committee and Eugenia Parot has
joined the Remuneration and Talent Management Committee.

/ Letter from the Chief Executive Officer
Rising to the challenges

of a transition year
It also supports our Diversity and Inclusion Strategy by offering
employees a better balance between personal needs and the demands
of work. This, in turn, has enabled us to attract and retain more women
in the workforce and, by the end of 2022, they represented one in five
of our employees, meeting our target for the year. This achievement has
encouraged us to set a more ambitious goal for women to represent
30% of the workforce by the end of 2025.
Similarly, an improved life-work balance enhances employees’ job
satisfaction with knock-on benefits on the organisation’s productivity.
So, while we still seek to perfect and refine the hybrid model, it is here
to stay and a feature of how we are organising our work going forward.
As in other organisations, we have seen an increase in mental health
issues arising from the pandemic and have implemented support
strategies to identify and help employees suffering from mental illnesses.
In a key initiative, we launched our Wellbeing Strategy during the year
Iván Arriagada to support people’s physical and emotional welfare.
Chief Executive Officer
Climate change
At Antofagasta, we regard the climate crisis as the greatest
environmental emergency of our times. A key priority for us is the
Dear shareholders implementation of our Climate Change Strategy, which plans for us to
I am pleased to share with you the significant progress we made in be carbon neutral by 2050 at the latest. During the year, we met our
2022 in the areas of project development, climate change, diversity and short-term target of achieving a 30% reduction in greenhouse gas
inclusion and, above all, safety. It was a challenging year for our (GHG) emissions by 2025 three years early, and will set a new
operations, as expected, but we have been implementing transitions that nearer-term goal in 2023.
will drive higher copper production and improved cost competitiveness In a major achievement, in 2022 we were among the first companies
in 2023 and future years. in Chile to complete the transition of all our operations to electricity
Safety is our top priority and I am particularly pleased to report that we generated exclusively from renewable sourced contracts. The process
suffered no serious accidents during the year. We achieved a continuing began in Zaldívar in July 2020, followed by Centinela and Antucoya in
reduction in high-potential incidents, which are an important leading January 2022 and finally by Los Pelambres in April.
indicator of where more serious incidents might occur, and the rate of Now the main challenge is to reduce and, ultimately, completely replace
lost time injuries fell by 37% to 0.84, a record for the Group. the use of diesel at our mines, particularly in haulage trucks which are
These positive safety indicators reflect the maturity of our safety heavy consumers of the fuel. We are testing various potential solutions
management system, which is based on critical controls, identifying key at our operations, including the use of green hydrogen and electric
risks, and promoting the right behaviours among our employees and batteries, to help develop and become early adopters of whichever is the
contractors. The year’s strong safety results were also underpinned by winning technology.
an increase in on-site verification visits and interaction with teams Our efforts involve close collaboration with suppliers of mining
by senior management as COVID-19 restrictions were gradually lifted. equipment, with whom we are also working to calculate and reduce
New ways of working emissions in our value chain (Scope 3) that we do not directly control.
In 2022, we consolidated our new hybrid way of working, which we In 2022, we began using an internal carbon price and other emission
adopted during the pandemic. The model combines in-person and criteria to evaluate bids for contracts as part of growing efforts to
remote formats and has several advantages. First, it has made the influence best practice among suppliers.
organisation more flexible – and therefore resilient – and more able In another milestone, in October our Transport division became the first
to adapt to unexpected events and manage risk. rail Company in Chile to order a hydrogen-fuelled cargo locomotive,
which we expect to start operating in 2024. It forms part of a plan to
renew our entire fleet.

Strategic Report
/ Letter from the Chief Executive Officer continued
Water management
The evidence of climate change is clear in central Chile, where a severe “We are committed
to supplying the
drought has entered its thirteenth year. In early 2023, we began
commissioning the desalination plant for Los Pelambres which will
provide a permanent solution to the restrictions on operational water
supply caused by the drought. The plan is to double the plant’s capacity
to 800 litres per second as soon as permitting allows.
copper required for
In parallel, we work closely with communities near Los Pelambres in the
Choapa Province, a farming area, to strengthen water management and
the energy transition.”
ensure water availability for human consumption, as well as for
irrigation. The desalination plant and its planned expansion will make
more water available to the area as we replace current continental
water usage with sea water.
The Transport division had a good year with total transport volume up
We already only use sea water for our Antucoya and Centinela by 6% to an all-time record of 7.1 million tonnes, as we increased share
operations in northern Chile, the latter fully transitioning from continental of the transport market for mining. We expect the planned renewal of
water at the end of 2022. By 2025, we expect 90% of our mining our fleet to low-carbon technologies to maintain this positive trend.
operations’ water consumption will be recirculated or sea water.
For our mining operations, it was a challenging year in terms of unit
Responsible production costs due to general inflationary pressures, particularly for diesel and
As a copper producer, we supply a key metal to address climate change sulphuric acid in global markets, as well as the temporary decrease in
through its use in low-carbon technologies, such as electric vehicles and production. We were successful in partially offsetting this trend through
the generation of renewable energy and are committed to its responsible our continuous focus on productivity and cost containment, together
and reliable production. In 2022, Los Pelambres and Antucoya were with the contributions from our gold and molybdenum by-products.
awarded the Copper Mark, an independent external verification of their Full-year net cash costs came in within guidance at $1.61/lb, compared
sustainable practices. Zaldívar and Centinela completed the same to $1.20/lb in 2021.
assurance process in 2021.
It is worth noting that we are implementing important structural changes
Operating results to contain costs. As an example, our new renewable energy supply
As expected, 2022 was a transition year for the Group with the impact contracts are lower cost than the previous fossil-fuel agreements.
of the drought while the desalination plant at Los Pelambres was being
Our innovation and technology programme is also bearing fruit in this
completed, which will be in 2023 paving the way for strong growth.
sense. Centinela’s and Los Pelambres’ new remote operating centres
We produced 646,200 tonnes of copper, 10% less than in 2021 with the
in Antofagasta and Santiago, respectively, are designed to streamline
decrease primarily due to expected lower throughput as a result of the
processes from mine to port and reduce transport and mine camp
drought and planned lower grades at Centinela.
logistics. Productivity will also be enhanced by Centinela’s fleet of
automated haulage trucks, which successfully started operation
during the year.
Similarly, the increased processing capacity that will come on-stream
in 2023 with the completion of the Los Pelambres Expansion project’s
fourth milling line will bring further structural cost benefits. These
improvements are reflected in our estimated copper production for
2023 of between 670,000 and 710,000 tonnes and will help us
counteract the impact of inflation and the expected strengthening
of the Chilean peso.
Looking ahead, we see strong copper market fundamentals for the
foreseeable future. Demand will be supported as the global economic
recovery gathers pace coupled with copper’s significant role in the
energy transition. Supply will remain tight due to the lack of major
new discoveries in recent years and the long time it takes to bring
new projects online. Projects are also getting technically more complex.
Against this backdrop, the Group is uniquely positioned to deliver
growth opportunities from its existing large resource base.

Growth outlook The continued implementation of our Climate Change Strategy will be
Our growth strategy to focus on copper, primarily in the Americas, another key focus. During the year, we plan to complete decarbonisation
remains unchanged. We are pursuing robust organic growth options roadmaps for our operations, which will help us to define a new
embedded in the large mineral resources of our first-tier sites, Los nearer-term emissions reduction target. We will also press ahead on
Pelambres and Centinela. The Los Pelambres Desalination Plant and measuring Scope 3 emissions with a view to setting a reduction target
Concentrator Expansion projects will be in production in 2023. A second during 2023 or as soon as possible thereafter.
phase expansion to extend the mine life beyond 2035 and double We believe the mining industry plays a critical role in Chile’s economic
desalination capacity is in the permitting stage. and social development. We are committed to supplying the copper
The $3.7 billion investment to build a second concentrator at Centinela required for the energy transition and to further general economic
is subject to greater clarity on tax and royalty bills under discussion progress and people’s wellbeing in a responsible and sustainable way,
by Chile’s congress and the process to draft a new constitution, and creating value for our shareholders and other stakeholders in Chile and
is expected to be put to the Board for approval by the end of 2023. society in general.
We expect these growth projects to increase annual copper production
Iván Arriagada
to approximately 900,000 tonnes, once implemented.
Chief Executive Officer
On the innovation front, our patented Cuprochlor®-T technology
has completed industrial-scale testing and unlocked a solution to
economically leach low-grade primary sulphides. It is now being
incorporated into our Centinela and Antucoya mine plans. We are
also excited by the potential of our Cachorro and Encierro exploration
projects in northern Chile whose 765 million tonnes of mineral
resources are now included in our resource inventory.
Our priorities in 2023
The safety and health of our employees, contractors and local
communities will remain our first priority as we build on our positive
2022 performance.
We will reach a major milestone with the start of operation of the Los
Pelambres Expansion project in 2023. The new desalination plant and
expanded concentrator will lift water supply restrictions and increase
production in 2023, helping to deliver on our commitment to lower
cash costs.
On innovation, we will continue to work on introducing more automation
in our operations and consolidating our integrated remote operating
centres. This focus on changing how we work and transforming the
way we do mining will produce more efficiency gains.
We are also committed to moving forward the Centinela second
concentrator project, subject to the necessary conditions being
in place.

Strategic Report
/ The copper market
Copper’s critical role
In 2022, copper price volatility rose to its

highest levels in over a decade. Growing
economic uncertainty, rising inflation and
slowing growth in metal demand was set
against increasing mine supply disruption.
Looking ahead, the prospects for copper demand in the near-term will bind and connect the batteries, motors and electrical networks that will
partly depend on how rapidly the Chinese economy recovers following help limit the rise in global temperature. Furthermore, the pressure on
the removal of its zero COVID-19 measures. The pace at which interest the world’s resources to achieve this structural change will be
rates will rise and subsequently fall, and economic growth rates in transformational.
North America and Europe will also be key factors. Visible inventories
Electric vehicles are expected to be by far the largest single sector
were at historically low levels at the beginning of 2023, and this will
contributing to the boost in green demand for copper over the next two
sustain price volatility.
decades, with global EV sales growing three-fold in three years.
Potentially, the stronger growth in mine production forecast over the Government subsidies in China, the US and Europe have helped to
next two years could alleviate the current market tightness. However, support greater market penetration. The plants that will provide the
there are ongoing risks of disruption and the operating environment in copper foil for batteries are being developed apace across Asia, North
major producing countries remains uncertain. Beyond the middle of the America and Europe (and close to the battery hubs) and further copper
decade, the rapid uptake of copper-intensive clean technologies will foil manufacturing capacity is scheduled for completion over the next
underpin future copper demand as the world looks to a greener and few years to meet anticipated demand.
more sustainable future.
As with the automobile market, the decarbonisation of power generation
Copper’s critical role in a net-zero pathway is well underway. Global wind power generation capacity has increased
To put the world on a Paris Agreement net-zero pathway, a very by over 40% in the last three years. Cable makers are expanding
significant build out of low-carbon electric vehicles (EVs) and renewable capacity in North America and Europe to meet the necessary growth
power generating capacity will be needed. As the world reduces its in electrical networks. Rising offshore wind generation developments
dependence on hydrocarbons, metals will provide the foundation for are in turn supporting copper wire rod demand. The use of copper
a zero-carbon economy. Copper in the form of wire, cable and foil will in solar power generation is also just as impactful as wind.
Copper consumption growth
Copper (Mt)
50
45
40
35
30
25
2020 2023 2026 2029 2032 2035 2038
Green End Uses - EVs, Renewables, Energy Storage Other End Uses
Source: Wood Mackenzie

The transition to a more electrified world and higher electricity output Supply challenges
will require power grid upgrades and expansions, connected by wire Substantial growth in new mine supply will be needed to meet zero
and cable. This will lead to higher demand growth for refined copper carbon targets. The industry will have to deliver new projects at a
intensive wire rod. frequency and with a consistent level of investment never previously
These pressures are all in addition to the constant upward pressure accomplished.
from global population growth and the increased consumption per According to one leading forecaster’s base case outlook, over six million
capita that will arise with increased urbanisation. tonnes of new mine supply will be required over the next decade from
What does the energy transition mean for regional demand? For more projects that have yet to be sanctioned. Under an accelerated energy
mature markets including Europe and North America, legislation such as transition scenario, whereby the Paris Agreement targets are met and
the recently approved Inflation Reduction Act (IRA) in the US will ensure zero carbon is achieved by 2050, the requirement jumps to over nine
an uptick in end-use demand from this stimulus for increased green million tonnes. This is equivalent to nearly a third of current refined
energy use. This demand will be fulfilled by a return to domestic, consumption. This estimate of new mine supply requirements also
downstream manufacturing. For developing Asian regions, such as assumes a larger contribution of recycled material to meet refined
ASEAN and India, the conventional drivers of low-cost production, demand, which would require investment in more scrap processing
urbanisation and industrialisation are still at play. The energy transition capacity and a significant increase in scrap availability.
will further strengthen copper demand in these markets.
Volume of copper committed to in new projects each year
Copper (Mt) Copper price ($/t)
2.5 10,000
2.0 8,000
1.5 6,000
1.0 4,000
0.5 2,000
0.0 0
2007 2010 2013 2016 2019 2022
Mtpa Cu LME Copper Price
Source: Wood Mackenzie, LME

Strategic Report
/ The copper market continued
“Demand for copper is

growing and the industry’s
ability to satisfy this
growth is stretched.”
There are limitations to the speed at which scrap can be delivered back One important source of future copper production will be expanding
into the product cycle in large volumes, especially as the world looks to existing mining operations. These brownfield projects are usually less
manufacture products that are made to last and that can be repaired and capital intensive than greenfield projects and require less capital
shifts away from the throwaway culture of recent years. The mismatch investment. All mines strive to optimise their unit operating costs and
between the requirement for new supply and the need to meet the this is often achieved through productivity improvements, with
challenges of a decarbonised world will lead to considerable pressures investment in debottlenecking and expansions. These increases in
in the copper sector over the next decade. production are an important source of future production.
Estimates of total identified global mineral resources appear sufficient to Assuming the average capital intensity of the project pipeline, and taking
satisfy future demand but in practice the conversion of these resources into account the volume of copper required to achieve zero-carbon
to operating mines is uncertain and slow. Many were identified decades climate targets, one leading forecaster estimates that the level of
ago and still have little likelihood of being developed. The better quality, investment needed to deliver new projects over the next 30 years will
easier to develop deposits have mostly been built. Current mineral have to be at a rate only previously achieved between 2012 and 2016,
resources tend to be of lower quality and smaller than those already at the back end of the China-induced commodity super cycle.
developed. Some have not been developed because of poor economics.
In view of this challenging backdrop, mining project approval rates have
But even those that can offer an attractive return on investment often
fallen to cyclical lows. In 2022, the volume of committed copper projects
have other hurdles to overcome before they can be developed.
was well below the level needed to meet the requirements of an
One of the key characteristics of a deposit is its grade, or the accelerated energy transition, despite copper prices having been close
concentration of copper in the deposit. Average grades have been to their highest level for a decade.
declining for decades, not just for new mining operations but existing
The implication is that more projects need to be advanced along the
ones as well. The grade declines at existing mines because grade often
pipeline and quickly, or there will be insufficient copper available to meet
declines with depth for geological reasons. The grades of new mines
demand, even under a base case pathway.
decline as higher-grade deposits are mined first.
Demand for copper is growing and the industry’s ability to satisfy this
For a new mine, obtaining the necessary social and environmental
growth is stretched. Considerable efforts are required to overcome
permits can take a significant time, even in major producing countries.
these challenges including those to boost productivity through innovation
Many sites are remote and require substantial investment in
and investment while continuing to satisfy social and environmental
infrastructure, including power, water and transport. Project lead times
requirements about how mines are developed.
are longer and timing is critical as the race to control climate change
gathers pace. It can take 10 to 15 years, or longer for a major project The industry will continue to strive to satisfy demand while being
to be developed, from the identification of a resource to development. responsible producers for a changing world.
The investment needed to produce a tonne of copper has also been
steadily rising. The current inflationary environment is one reason. But a
more fundamental change is the decline in grades. The cost of producing
one tonne of copper is also increasing and projects need to scale up to The pathway to net zero
the greatest extent possible relative to the size of the deposit in order to
improve the economics. This raises the initial capital cost, often limiting In March 2023 the International
the list of potential developers to those that can afford multi-billion-dollar Copper Association published
upfront costs. a report setting out the copper
industry’s roadmap to net zero,
including an outline of the role
of copper and the industry’s
decarbonisation challenges.
antofagasta.co.uk/
ica_zero

The year in review Gold
Copper During 2022 gold prices were affected by the contrasting effects of
The copper price started the year strongly reaching an historic high persistently high inflation and central banks raising interest rates to battle
in March of $4.87/lb before falling to a low of $3.18/lb in July and soaring consumer prices. Central banks were also buyers in the market
recovering to close the year at $3.81/lb. with purchases during the year reaching a 55 year high.
Copper’s price fluctuations reflected the broader volatility in the global In February 2022, gold prices increased to near-record levels of
economy. Though the details differed in important ways for each major $2,000/oz as Russia invaded Ukraine, but a strong US dollar and
economy, their growth was similarly dampened in 2022. Driving the aggressive interest rate increases by central banks led to a fall of over
slowdown were headwinds that dominated headlines for much of the 20% by September 2022. However, from late 2022 to early 2023, gold
year: Russia’s invasion of Ukraine and the economic shockwaves and saw a trend reversal with the gold price rising by 14% since November
energy crisis it sparked; rising inflation and interest rates; the lingering 2022, supported by a less hawkish tone from the US Federal Bank and
effects of COVID-19; China’s reduced economic activity; and the ongoing the reopening of China's economy.
supply shortages and strained global supply chains. The market price of gold averaged $1,800/oz in 2022, compared with
Over the year the LME copper price averaged $4.00/lb, 5% lower than $1,799/oz in 2021.
in 2021. The average realised copper price for 2022 was $3.84/lb. Molybdenum
The copper market started 2023 strongly but faded as economic and The molybdenum price started 2022 at historically high levels and was
geopolitical uncertainty increased. Looking forward, the strength of the initially stable, in a balanced market. As the year progressed,
market will depend on the recovery of the Chinese market and whether consumption in China grew steadily and production declined moving
there are any disruptions to global trade. the market into deficit and towards the end of the year the price began
to rise significantly.
The average annual price in 2022 was $18.7/lb, with a monthly low for
the year of $15.1/lb and a monthly high of $26.1/lb, before reaching
LME Copper average price a price of $30/lb in the last days of December.
$4.00/lb
There are some primary producers of molybdenum but a substantial
share of demand is satisfied from mines that produce molybdenum as
a by-product, and recycled scrap. By-product producers are generally
insensitive to the molybdenum price and demand for molybdenum-
containing steels is expected to be strong, factors that are expected
to support the molybdenum price during 2023.
Gold average price
$1,800/oz
Molybdenum average price
$18.7/lb

Strategic Report
/ Business model
Delivering value for our stakeholders

through the mining lifecycle
We believe in developing mining for a better future. As custodians
of natural resources, we have a responsibility not only to manage
these resources efficiently and responsibly, but also to harness
copper’s potential to contribute to the development of a greener
and more sustainable world.
WHAT WE NEED
Long-term relationships Resources Responsible mining

Our people World-class assets We believe it is possible to mine sustainably
Approximately 31,000 employees and We have a portfolio of large, high-quality, by prioritising environmental protection
contractors. Constructive relationships, low-cost assets. We are investing in and the efficient use of natural resources.
anchored in mutual respect and transparency, technology to improve productivity and drive
are crucial for a good working environment sustainable growth across our operations.
and talent retention as well as for productivity
and efficiency. Inputs
Our mining operations depend on a range
Communities of key inputs such as energy, water, labour,
The wellbeing of our neighbours is directly sulphuric acid and fuel.
related to the sustainable development and
success of our business. Financial resources
We have a strong balance sheet and a large
Suppliers portfolio of available undrawn credit facilities.
We work with on average over 1,700
suppliers, who provide a broad range of For more information on
products and services, from large mining our operations see P74-85
equipment to catering and transport.
They are vital to our ability to operate
continuously, safely and efficiently.
Customers
Most sales are made under long-term
framework agreements or annual
contracts, with sales volumes agreed
for the following year.
Shareholders
We pay special attention to our communications
with them, maintaining fluent and transparent
dialogue to ensure that they are all treated
fairly and receive all relevant information.
Governments and regulators
We work alongside mining associations and
other industry-related bodies to engage with
governments on public policy, laws,
regulations and procedures that may affect
our business.
For more information on

our stakeholders see P38-73

WHAT WE DO WHAT WE GENERATE
Our products
Copper
646,200 tonnes
Gold
176,800 ounces
Exploration / Acquisition Extraction and processing Molybdenum
We undertake exploration activities in Chile and
abroad, with particular focus on the Americas.
Safety and health, operating efficiency
and innovation are all key elements of how 9,700 tonnes
we run our operations.
Silver
2.8 million ounces

our products see P76
Our footprint
CO2e emissions intensity
Evaluation Sales and marketing 1.75 tCO2e/tCu

We integrate sustainability criteria into the We build long-term relationships with the
Continental water withdrawal
design process and project evaluation phase, smelters and fabricators who purchase our
developing innovative solutions for challenges
such as water availability, long-term energy
products, with approximately 60% of output
by value going to Asian markets. 39.7 GL
supply and community relations.
our footprint see P57-66
Our outcomes
Total economic contribution
$7,445m
We generate economic value for all our
stakeholders, distributing it as wages to
employees, purchases of goods and services
Construction Mine closure and rehabilitation to suppliers, social investment programmes
This stage requires significant input of capital At the end of a mine’s life, it must be closed in communities, taxes to governments,
and resources as well as effective project and remediated according to the international dividends to shareholders and interest
management and cost control to maximise the standards and national regulations in force payments to lenders.
project’s return on investment. at the time.
For more information on our
outcomes see P41

Strategic Report
/ Our strategic framework
How we deliver
our purpose
In order to deliver a better future we need a robust
strategy. Our five strategic pillars are the key
areas we focus on as a business, and these will
drive us onwards to achieve our purpose.
Our Vision is to be an international mining Company, focused on copper and
its by-products, known for its operating efficiency, creation of sustainable
value, high profitability and as a preferred partner in the global mining industry.
Our purpose For whom we want to achieve our purpose
Planet
Developing mining We recognise that climate change is one of the greatest
for a better future

challenges faced by humanity. Our vision of a better
future reflects the quest for a more sustainable planet,
with copper playing a central role in the energy
transition, economic progress and improved livelihoods.
Society
Our vision of a better future, is one that is developed together with our
local communities, and aims for a society that recognises the economic
and social value generated by mining.
Organisation
To tackle the challenges we face in our daily operations and growth, we need a robust
organisation that consistently meets these challenges and is grounded in clear and
unshakeable values and principles.
Our vision of a better future therefore encompasses our ethical organisational behaviour
and our continuous pursuit of a sustainable culture of trust, inclusivity, collaboration, agility
and willingness to embrace change and continuous learning.
People
Our success relies on having the best people at the heart of everything we do. Our vision of a better future would
be incomplete without the shared values of our workforce, a diverse and inclusive group of individuals open
to learning and to enjoying their personal and professional growth, who strive for excellence in their results.

How we will achieve this
Through our five strategic pillars
Safety and People and Competitiveness Innovation Growth

Sustainability culture
to enhance our current to cultivate the is key to us achieving to constantly pushing to keep contributing
operations, while talent necessary excellence and creating back boundaries and to the development
keeping an eye for a better future long-term value exploring new ways of a better future
on the future of advancing
For more information on our

strategic pillars see P20-21
Underpinned by our values
Respect for others Excellence in our performance

We respect people and care about their opinions, which is why we We continually seek to achieve the best possible results through
engage in an open, transparent and collaborative way. We trust them operational discipline. We look after our resources and we are efficient,
and have a genuine interest in their wellbeing. We promote a work austere and honest. We build trust by fulfilling our commitments.
environment that fosters diversity and inclusion.
Innovation as a permanent practice
Responsibility for safety and health We recognise and promote new ideas that improve our work practices
We are responsible for our own safety and health, as well as for that and the way we relate to others. We aim to create value for the
of others. We identify and control our risks, and we are aware of the organisation, people and the environment.
impacts of our actions.
Forward thinking
Committed to sustainability Our business strategy aims to generate value with a long-term vision for
We operate responsibly and efficiently, with long-term vision. shareholders and other stakeholders. We learn from our mistakes and
We maximise the economic value of our assets, contribute to social have the flexibility and courage to face new challenges.
development and minimise our environmental impacts.

Strategic Report
/ Our strategic framework continued
Our strategic pillars
Our strategy is built around five pillars, each of which has defined long-term objectives
with short- and medium-term goals.
Safety and People

Competitiveness
Sustainability and culture
Emphasising safety and sustainability Investing in people and fostering a positive Our competitiveness is key to us achieving
to enhance our current operations, culture to cultivate the talent necessary excellence and creating long-term value.
while keeping an eye on the future. for a better future.
Description Description Description
We aim to create value and growth throughout Our goal is to create and nurture a working Competitiveness is essential as it ensures
the mining lifecycle, from exploration to mine environment that incorporates new ways of resilience and makes the business viable.
closure. Our goal is to be a Company known thinking, with innovation at the forefront, to By producing copper efficiently we are able to
for its ethical and transparent conduct, tackle current and future challenges. We strive grow and contribute to the development of
respectful of human rights and the law. to inspire people to tackle more complex and mining while promoting the energy transition.
To achieve this, we are determined to continue dynamic problems, and to develop new
We aim to maintain our strong financial
to develop a comprehensive and long-term management approaches to solve them. The
position through efficient capital allocation,
commitment to all our stakeholders, demands of today’s and tomorrow’s adaptive
the proper execution of our projects and the
particularly our communities and workers. challenges require us to collaborate and excel
renewal of our asset portfolio, allowing us
while developing new skills.
We align ourselves with the UN Sustainable to continue operating and growing as we
Development Goals (SDG), developing We aim to truly understand what our people address increasingly complex challenges.
responsible mining practices that are certified value, to treat them fairly, and to engage and
We strive to be one of the most cost-
by the Copper Mark and ICMM’s Performance inspire them based on their personal
competitive companies in the industry, and
Expectations. We prioritise the efficient use of motivations and unique qualities as individuals.
towards that end, we are dedicated to
renewable natural resources and the This is a challenge that requires us to change
achieving excellence in our work and seeking
reduction of our greenhouse gas (GHG) the understanding of the traditional
new and efficient ways to manage our
emissions by using sea water and energy employment relationship to one of deeper
operations.
from cleaner sources. commitment to the Company.
Additionally, we are undergoing a process of
All of this is done while ensuring the We will continue to drive forward our cultural
operational transformation that allows us to
occupational health and safety of all our transformation, promoting the organisation as
integrate technology and innovation, utilise
employees and contractors. We do this a safe and supportive space that actively
data analytics and promote efficient resource
through the active leadership of our workers, listens, empathises, connects and builds
management by strengthening key operational
who by their responsible behaviour and strong relationships with our people.
processes that will enable us to achieve the
proactive management of risks and critical
full potential of our assets’ performance.
controls ensure a safe and healthy working
environment for all.
Key initiatives Key initiatives Key initiatives

• Climate Change Strategy • Diversity and Inclusion Strategy • Cost and Competitiveness Programme
• Social contribution • Leadership brand • Full potential
• Health and Safety Control Strategy • Digital Academy • Operational excellence
Performance Performance Performance

• Zero fatal accidents since July 2021 • Wellbeing Strategy rolled out • Copper production of 646,200 tonnes
• 35% reduction of High Potential Incidents • 20.4% of our employees are women at a net cash cost of $1.61/lb
• 100% renewable energy (Mining division) • Inclusive practices are an integral part • EBITDA margin remains strong at 50%
• All operations had achieved the Copper of how we work • Our Cost and Competitiveness Programme
Mark accreditation by the end of 2022 achieved more than double its target,
• $57m investment in social value creation yielding benefits of $124 million
Read more Read more Read more

on P38-73 on P48-50 on P90-93

Innovation Growth
Through innovation we are constantly Growth to continue contributing

committed to pushing back boundaries to the development of a better future.
and exploring new ways of advancing.
Description Description
We aim to create new ways of operating and Growth enables us to maintain our viability and
using existing technology more effectively, fulfil our purpose. It allows us to realise the full
incorporating our own and others’ learning potential of our resources and assets, creating
to improve performance. additional value and diversifying risk.
We further aim to discover new ways of To accomplish this, we aim to:
advancing our operations through technology
• Expand and increase the Group’s
that is yet to become available. With our
production capabilities by building projects
experience we are convinced that we can
such as Los Pelambres Expansion Phase 1
contribute to the development of new solutions
and Phase 2 (mine life extension) and the
such as Cuprochlor®-T, integrated remote
Centinela Second Concentrator project.
operation centres (IROCs), autonomous
• Increase our mineral resource base through
haulage and drilling, advanced analytics
the exploration for new resources and/or
and data management for decision making,
the development of new ore deposits such
robotics for tailings and water management,
as Cachorro and Encierro.
decarbonisation of our processes and dust
suppression. Our strategy for growth beyond our existing
operations is focused on producing copper
Our Innovation Roadmap serves as a guide
and its by-products in the Americas
for the Group to achieve our operational vision
(particularly Chile, Peru, the United States and
for the future. This allows our operations to
Canada), a region that is highly attractive due
become smart, integrated and sustainable,
to its geological potential, mining activity,
optimising the use of strategic resources such
relative proximity, political and administrative
as water and energy.
similarities, culture and language.
Key initiatives Key initiatives

• Integrated Remote Operations Centres • Los Pelambres Expansion Phase 1
• Autonomous trucks and drilling • Centinela Second Concentrator
• Cuprochlor®-T • Los Pelambres Expansion Phase 2
Performance Performance
• Inaugurated our first fully autonomous • At the end of 2022 the Los Pelambres
operation at the Esperanza Sur pit Expansion project was 93% complete
• New integrated remote operations centres • Following two exploration discoveries in
for Los Pelambres and Centinela Chile our mineral resources have increased For further information on the risks
by 1 billion tonnes associated with each strategic pillar,
• Validated our proprietary primary sulphides
please see P26-35
leaching technology (Cuprochlor®-T)
For more information on how we align

our strategic performance with
Read more Read more remuneration, please see our
on P92-93 on P86-89 Remuneration report on P147

Strategic Report
/ Key Performance Indicators
Measuring our performance
We use Key Performance Indicators (KPIs) to assess our performance in meeting our strategic
and operating objectives. Performance is measured against the following financial, operating
and sustainability KPIs:
Financial KPIs
EBITDA1 Profit before tax Net debt/(Net cash)1
$2,930m $2,559m $886m

4,836 3,477
886
2,559
2,739 2,930
2,439 596 563
2,228
1,349 1,413
1,253
82
2018 2019 2020 2021 2022 2018 2019 2020 2021 2022
Why it is important Why it is important
This is a measure of our underlying This is a measure of our profitability before (541)
profitability. the deduction of taxes. 2018 2019 2020 2021 2022
Performance in 2022 Performance in 2022 Why it is important
EBITDA decreased by 39% and an EBITDA Profit before tax decreased by 26%. This measure reflects our financial liquidity.
margin of 50%, reflecting the decrease in Performance in 2022
copper sales, lower copper price, higher Strong balance sheet with net debt of $886
inflation and higher input prices. million at the end of 2022 and a Net debt/
EBITDA ratio of 0.3x.
Find out more Find out more Find out more

P94 P94 P100
1. Non-IFRS measures, refer to the alternative Underlying earnings per share2 Earnings per share3
performance measures section on page 238.
2. From continuing operations excluding
exceptional items.
3. From continuing and discontinued operations
$59.7¢ $155.5¢
including exceptional items. 142.5 155.5
4. 100% of Los Pelambres, Centinela and Antucoya,
and 50% of Zaldívar’s production. 130.9
5. Mineral resources (including ore reserves)
relating to the Group’s subsidiaries on a 100%
basis and Zaldívar on a 50% basis. 59.7
51.5 50.9 54.7 55.1
6. The Lost Time Injury Frequency Rate is the 50.9 51.3
number of accidents with lost time during the
year per million hours worked.
7. Scope 1 and 2, Mining division only. 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022
8. Tonnes of CO2 equivalent per tonne of copper
produced.
Why it is important Why it is important
These are measures of the profit attributable These are measures of the profit attributable
to shareholders before exceptional items. to shareholders after exceptional items.
Performance in 2022 Performance in 2022
Underlying earnings per share were Earnings per share including exceptional items
59.7 cents, a decrease of 82.8 cents or 58% for the year were 155.5 cents, reflecting the
compared with 2021 on lower EBITDA. impact of an exceptional gain of 95.8 cents,
and were 19% higher than in 2021.
Remuneration performance Find out more Find out more

criteria P156 P99 P99

Operating KPIs
Copper production4 Net cash costs1 Mineral resources5
646.2k tonnes $1.61/lb 20.1bn tonnes

770.0 1.61 20.1
725.3 733.9 721.5 18.8 19.1 19.2 19.1
646.2 1.29
1.22 1.20
1.14
2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022
Why it is important Why it is important Why it is important
Copper is our main product and largest source This is a key indicator of operating efficiency Our mineral resource base supports our
of revenue. and profitability. strong organic growth pipeline.
Performance in 2022 Performance in 2022 Performance in 2022
Copper production decreased by 10% mainly Net cash costs were 34% higher than last Total mineral resources increased by 1 billion
due to the temporary reduction in throughput year mainly due to the impact of the drought, tonnes during the year, including a maiden
at Los Pelambres as a result of the drought inflation and higher input prices during the inferred resource at Encierro and additional
and the reduced concentrate pipeline period, partly offset by the weaker Chilean resources at Cachorro, both of which are
availability in June, and expected lower grades peso and the savings coming from our Cost in northern Chile.
at Centinela Concentrates. and Competitiveness Programme.
P76 P76 P245
Sustainability KPIs
Safety Water withdrawals CO2e emissions intensity7,8
0 Fatalities 0.84 LTIFR 73 GL 1.75 tC02e/tCu

Continental water
6
Sea water
1.6 1.3 39.7 3.33

36.8 38.9 37.7 3.10
1 1 32.6 2.79
2.56
1.0
0.9 0.84 1.75
28.9 31.3 33.1
28.2 29.0
0 0 0
2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022
Why it is important Why it is important Why it is important
Safety is our top priority, with fatalities Water is a precious resource and we are We recognise the risks and opportunities
and the LTIFR6 being two of our principal focused on using the most sustainable sources arising from climate change and the need
measures of performance. and maximising its efficient use. to measure and mitigate greenhouse
gas (GHG) emissions.
Performance in 2022 Performance in 2022
Record safety performance with no Total water withdrawals increased by 5.4% as Performance in 2022
fatalities and the LTIFR improving by 37% precipitation tripled at Los Pelambres in 2022 CO2e emissions intensity decreased as Scope
due to strengthened control strategies for from the low levels in 2021, and Centinela 1 and 2 emissions fell by 37%.
high-risk tasks. Concentrates and Antucoya achieved record
annual throughput.
P53 P63 P61

Strategic Report
/ Risk management
Risk management framework
Effective risk management is an essential • Updated the Company’s risk appetite statement, including the sections
relating to Environmental Management, Operations and Tailings
part of our culture and strategy. Storage, and the Project Execution risk section was expanded to
The accurate and timely identification, incorporate the conversion of mineral resources to ore reserves.
The updated statement was approved by the Board and the level
assessment and management of principal risks of risk appetite for all risk areas was unchanged
give us a clear understanding of the actions • Reported monthly to the Executive Committee to identify and manage
required to achieve our objectives. any deviation from expected performance
• Defined and implemented lessons learned from the COVID-19
Key elements of integrated risk management pandemic
We recognise that risks are inherent to our business
• Tested and validated the Business Continuity Plan
Only through adequate risk management can internal stakeholders
be supported in making key decisions and implementing our strategy • Introduced new controls identified during the assessment of
the impact of the conflict in Ukraine
Exposure to risks must be consistent with our risk appetite • Participated in the review of the FQAR (Functional Quality Assurance
The Board defines and regularly reviews the acceptable level of Review) project
exposure to emerging and principal risks. Risks are aligned with our
• Continued training risk owners and main users
risk appetite, taking into consideration the balance between threats
and opportunities • Updated and monitored critical controls and action plans
• Prepared new action plans to maintain risk exposure within
We are all responsible for managing risks acceptable limits
Each business activity carries out risk evaluations to ensure the sound
• Embedded timely and comprehensive risk analysis into each
identification, management, monitoring and reporting of risks that could
relevant decision-making process
impact the achievement of our goals
• Shared best practices across our operating companies
Risk is analysed using a consistent framework
Our risk management methodology is applied to all our operating Governance
companies, projects, exploration activities and support areas so that we The Board has overall responsibility for risk management and
have a comprehensive view of the uncertainties that could affect the determines the nature and extent of the principal and emerging risks
achievement of our strategic goals. The framework is based on that we will accept in order to achieve our strategic objectives.
ISO 31000 and COSO ERM.1 The Board receives detailed analysis of key matters in advance of Board
We are committed to continuous improvement meetings. This includes: reports on our operating performance including
Lessons learned and best practices are incorporated into our safety and health, financial, environmental, legal and social matters;
procedures to protect and unlock value sustainably key developments in our exploration, project and business development
activities; and information on the commodity markets, updates on talent
Areas of focus and development during 2022 management and analysis of financial investments.
Our main focus in 2022 was in the socio-political environment, as
a result of the armed conflict in Europe and political uncertainty in The provision of this information allows the early identification of
Chile. The latter continued following the rejection of the proposed potential issues and the assessment of any necessary preventive
new constitution in September and will extend into 2023 as a second and mitigating actions.
rewrite is carried out. However, lessons learned during previous social The Audit and Risk Committee assists the Board by reviewing the
contingencies in Chile meant the impact on our operations was minor. effectiveness of the risk management process and monitoring principal
The war in Ukraine affected the sourcing of some of our strategic and emerging risks, preventive and mitigation procedures, and action
supplies and it remains a concern, although our risk analysis of the plans. The Chairman of the Committee reports to the Board following
war allowed us to mitigate its impact on our business. each Committee meeting and if necessary the Board discusses the
matters raised in more detail.
Other risks during the year included those arising from the reform
of the mining royalty and tax bills proposed by the government, expected These processes allow the Board to effectively monitor Antofagasta’s
to be implemented during 2023. major risks and preventive and mitigating procedures, and to assess
whether actual exposure is consistent with the defined risk appetite.
We maintained our commitment to review and update our principal If a gap is identified, an action plan is prepared to fill it.
risks according to our risk methodology. These are some of the actions
that our Risk and Compliance Management Department undertook The Risk and Compliance Management Department is responsible
during the year: for the Group’s risk management systems. It implements the Company’s
risk management policy, vision and purpose to ensure there is a strong
• Implemented on-site risk reviews of certain selected risk areas risk management culture at all levels of the organisation.
accompanied by senior management, increasing the risk maturity
level of the Group The Department supports business areas in analysing their risks,
identifying existing preventive and mitigating controls and defining
• Co-coordinated contingency committees in line with our risk
further action plans. It maintains and regularly updates the Company’s
management process
risk register.
1. The Committee of Sponsoring Organizations of the Treadway Commission Enterprise

Risk Management framework

The General Manager, with the Department support, reports twice a Risk Management Cycle
year to the Audit and Risk Committee on the overall risk management Risk appetite is the expression of the acceptable exposure to
process, with detailed updates on principal risks, mitigation activities and uncertainties that the organisation is willing to assume in the pursuit
actions taken in each company. of its objectives. Our risk management cycle has four stages, and
The General Manager of each operation has overall responsibility for is designed to identify, assess, treat and follow up our risks.
leading and supporting risk management. Risk owners within each
operation have direct responsibility for the risk management processes
and for regularly updating individual business risk registers, including Risk Appetite
relevant mitigation activities. The individual owners of the risks and
controls at each business unit are identified in order to provide effective
and direct risk management.
Each operation holds an annual risk workshop, at which the business 1. Identify
unit’s risks and mitigation activities are reviewed in detail and updated
as necessary. Workshops are used to assess principal risks that
may affect relationships with stakeholders, limit resources, interrupt
2. Assess
operations and/or negatively affect potential future growth.
Mitigation techniques for significant strategic and business
unit risks are reviewed quarterly by the Risk and Compliance
Management Department. 3. Treat
We promote a consistent risk management process across our
different business units, ensuring risk is considered at all levels
of the organisation. Risk information flows from the business units 4. Follow Up
to the centre and from the Board back to the business units.
Our risk management structure
Board of Directors
• Has overall responsibility for risk management and its alignment with Antofagasta’s strategy
• Approves the Risk Management Policy
• Defines risk appetite
• Reviews, challenges and monitors principal risks
Board Committees
• Support the Board in monitoring principal risks and exposure relative to our risk appetite
• Make recommendations to the Board on the risk management system
• Review the effectiveness and implementation of the risk management system
Executive Committee
• Assesses risks and their potential impact on the achievement of our strategic goals
• Promotes our risk management culture in each of the business areas
• Ensures there is transparent and satisfactory dialogue with stakeholders
Third line of defence
The Internal Audit Department provides assurance on the risk management process,
including the effectiveness of the performance of the first and second lines of defence.
Second line of defence
The Risk and Compliance Management Department is accountable for
monitoring our overall risk profile and risk management performance,
registering risks and issuing alerts if any deviation is detected.
First line of defence
Each person is responsible for identifying, preventing and
mitigating risks in their business area and escalating their
concerns to the appropriate level if required.

Strategic Report
/ Risk management continued
Principal risks
We maintain a risk register through a robust Change

Risk in risk level
assessment of the potential principal risks that Risk area Appetite level vs 2021 Outlook
could affect the Company’s performance. People
This register ensures that principal risks are 1. Talent management
identified in a thorough and systematic way 2. Labour relations

Safety and sustainability
and that agreed definitions of risk are used.
3. Safety and health
Risk management 4. Environmental management
We are aware that not all risks can be eliminated and that exposure
5. Climate change
to some risk is necessary in the pursuit of our corporate objectives.
6. Community relations
Mining is a long-term business and, as part of the principal risks update
7. Political, legal and regulatory
and evaluation process, we identify new or emerging risks which could
impact the Company’s sustainability in the long run, even if there is only 8. Corruption
limited information available at the time of the evaluation. Competitiveness
Any identified new or emerging risks that could impact our long-term 9. Operations
strategic objectives are included in the principal risk analysis and are 10. Tailings storage
reviewed and monitored periodically by the Board. As new information 11. Strategic resources
becomes available, based on research, expert analysis and internal
12. Cyber security
investigations, suitable controls and action plans are defined and
13. Liquidity
incorporated into the Company’s risk matrix.
14. Commodity prices
We identify, assess and manage the risks critical to the Company’s and exchange rate
success. Overseeing such risks protects our business, people and
Growth
reputation. The risk management process provides reasonable
15. Growth of mineral resource
assurance that the relevant risks are recognised and controlled, allowing
base and opportunities
the Company to achieve its strategic objectives and create value.
Because risks are periodically re-evaluated, the risk map shown here 16. Project development
represents the position and controls in place at a specific point in time, and execution
as well as showing the changes that have taken place since 2021.
Innovation
Throughout the year, the Board carried out a robust assessment of
the Company’s emerging and principal risks, which are set out on the 17. Innovation and digitalisation
following pages with related preventive and mitigation measures. Transversal
During 2022, the probability of the External Risks principal risk (18) 18. External risks
was lowered from “Possible” to “Unlikely” following the reduction of
risks related to the COVID-19 pandemic. The impact of the Political, Key
Legal and Regulatory principal risk (7) was reduced from “Significant”
Risk appetite Risk level
to “Moderate” following the rejection of the proposed new constitution
and the improved clarity on the outcome of the mining royalty reform. Low
Medium
High
Very high
Strategic pillars
Safety and Sustainability
People and culture
Competitiveness
Innovation
Growth

Risk Heat Map
Severe
8 10 9 11
Significant
14 6 3
12 13 4 15
Moderate
IMPACT
5 7
18 16 17
1 2
Low
Very low
Movement since
previous year
Very unlikely Unlikely Possible Likely Almost certain

PROBABILITY
The risk impact scale rating has five levels of Probability and Impact:
Probability
Level Quantitative Qualitative
Almost certain Once a week Happens often
Likely Once a month or more Could happen easily and has occurred under similar conditions
Possible Once or twice a year Could happen and has happened in similar conditions
Unlikely Once or twice every 10 years Has not happened yet, but could happen
Very unlikely Once or twice every 50 years Only in extreme circumstances
Impact
Level EBITDA / Safety and Health / Environment / Communities / Legal / Reputation

• Any incident with an impact of more than 50% of EBITDA.
• Accident causing multiple fatalities or permanent disabilities.
Severe • Irreversible environmental damage or serious incident that impacts a community, with long-term effects.
• Regulatory breaches which may lead to a revocation of operating permits or a financial impact exceeding 20% of EBITDA.
• Severe impact on Company’s international reputation with long-term effects.
• Any incident with an impact of between 20% and 50% of EBITDA.
• Accident that causes a single fatality or permanent disability.
Significant • Reversible environmental damage or major incident affecting a community, with medium-term effects.
• Regulatory breaches which may lead to a criminal conviction or a financial impact of more than 20% of EBITDA.
• High impact on the Company’s national reputation with medium-term effects.
• Accident resulting in lost time.
Moderate • Moderate environmental impact or small incident that affects a community, with short-term effects.
• Regulatory breaches which may lead to criminal charges or a financial impact of between 0.05% and 3% of EBITDA.
• Moderate adverse claims and in the national news for a medium-term period.
• Accident without lost time.
Low • Minor environmental or community impact.
• Regulatory breaches which may result in a financial impact of less than 0.05% of EBITDA.
• Moderate claims and in national news for a short-term period.
• Any incident with an impact of less than 5% of EBITDA.
• Minor occupational accident.
Very low • Very minor environmental or community impact, easily resolved.
• Regulatory breaches that will not result in a financial penalty.
• Claims that do not reach the formal media.

Strategic Report
Defining risk appetite is key in embedding The principal risks, together with related prevention and mitigation
measures, have been presented to the Board and are grouped in line
the risk management system into our with our strategic pillars: People, Safety and Sustainability,
organisational culture. Competitiveness, Growth and Innovation. These pillars are supported
by our corporate governance structures.
The Company’s risk appetite statement helps
The principal risks are outlined in the risk heat map and table on the
to align our strategy with the objectives of previous two pages, and in more detail below.
each business unit, clarifying which
risk levels are, or are not, acceptable.
It promotes consistent decision-making on risk,
allied to the strategic focus and risk/reward
balance approved by the Board.
Description Preventive and mitigation measures Highlights
1. TALENT MANAGEMENT Risk appetite Risk level Outlook
Managing talent and We develop the talents of our employees through training and Our methodology for identifying and managing
maintaining a high-quality career development, invest in initiatives to widen the talent pool talent to look for the competencies we require to
labour force in a fast- and are committed to our diversity and inclusion policy. ensure the sustainability of our business, allows
changing technological and us to identify the key people for our talent pool.
Through these actions we aim to increase employee retention
cultural environment is a key We embedded our New Ways of Working model
and add to the number of women, people with disabilities and
priority for us. Any failures (hybrid), which was introduced in 2021 to
employees with international experience in the workplace.
could have a negative impact facilitate business continuity and attract and
on the performance of our Our Employee Performance Management System is designed
retain talent.
existing operations and to attract and retain key employees by creating suitable and
prospects for growth. competitive reward and remuneration structures and providing This year, our Diversity and Inclusion Strategy
personal development opportunities. We have a talent has increased the proportion of our female
management system to identify and develop internal candidates employees to 20.4%, 3.2 percentage points
for key management positions, as well as selecting suitable higher than in 2021.
external candidates when appropriate.
2. LABOUR RELATIONS Risk appetite Risk level Outlook
Our highly-skilled workforce We maintain good relations with our employees and unions, Three-year labour agreements were
and experienced management founded on trust, regular dialogue and good working conditions. successfully negotiated with two of the unions
team are critical to our We are committed to safety, non-discrimination, diversity and at Antucoya, one at Los Pelambres and one at
current operations, inclusion, and comply with Chile’s strict labour regulations. Zaldívar, all of them in a climate of mutual
implementing development respect.
There are long-term labour agreements (usually three years)
projects and achieving
in place with all the unions at our operations, which helps
long-term growth without
ensure labour stability.
major disruption.
We seek to identify and address any labour issues that may
arise during the period covered by the labour agreements
and to anticipate any potential issues in good time.
Employees of our contractor companies are an important part
of our workforce and under Chilean law fulfil the same duties
and are subject to the same responsibilities as our own
employees. We treat contractors as strategic associates and
build long-term, mutually beneficial relationships with them.
We maintain constructive relationships with our employees and
their unions through regular communication and consultation.
Union representatives are regularly involved in discussions
about the future of the workforce.

3. SAFETY AND HEALTH Risk appetite Risk level Outlook
Safety and health incidents Our Safety and Occupational Health Strategy is based We had no fatalities during 2022.
could result in harm to our on four pillars: Our lagging indicators continue to fall and were
employees, contractors and below our targets for the year.
1. Safety and health risk management: workers at all levels are
local communities. Ensuring
trained to identify hazards and controls, so that all jobs are This year we put extra effort into promoting the
their safety and wellbeing is
carried out safely. correct use of our Job Safety Analysis tool, to
our ethical obligation, and one
2. Leadership: all employees and contractors are health and help supervisors and operators standardise safe
of our core values.
safety leaders and we demonstrate our commitment through working practices for high-risk tasks.
A poor safety record or each individual’s responsible behaviour.
a serious accident could have After dealing with the COVID-19 aftermath, we
3. Contractor management: our contractors are an integral part
a long-term impact on morale refocused on occupational health and updated
of our safety team and safety culture, which we work
and on our reputation and our medical surveillance programmes. This
together to improve.
productivity. included putting more preventative controls
4. Reporting, research and learning from our accidents: in place to reduce exposure to our main
we share good practices and learn from our mistakes. occupational health risks-noise and dust.
The Strategy strives to achieve our four main goals: zero
fatalities, zero occupational illnesses, the development of a
resilient culture; and the automation of hazardous processes.
Leadership visibility and strong use of Job Safety Analysis and
Yo Digo No (I Say No) tools are part of our safety performance.
Critical controls and verification tools are constantly
strengthened through the verification programme and regular
audits of critical controls for potential high-risk activities.
4. ENVIRONMENTAL MANAGEMENT Risk appetite Risk level Outlook
An operating incident that We have a comprehensive approach to incident prevention. We have strengthened our environmental
impacts the environment Risks are assessed, monitored and controlled to achieve our management model, updating it monthly with
could affect our relationship goal of zero incidents with significant environmental impact. new or revised environmental regulations.
with local stakeholders and We work to raise awareness in our employees and contractors We also implemented the regular monitoring
our reputation, reducing the by providing training to promote operating excellence related of Environmental Authority inspection processes
social value we generate. to the environment in which we operate. The potential to assure compliance with our environmental
environmental impact of a project is a key consideration when commitments and action plans.
We operate in challenging
assessing its viability, and we encourage the integration of
environments, including the
innovative technology in the project design to mitigate such
largely agricultural Choapa
impacts.
Valley and the Atacama
Desert, where water scarcity We prioritise the efficient use of natural resources by using sea
is a key issue. water, favouring the use of renewable power, and achieving
higher rates of reuse and recovery of water by using thickened
Environmental issues directly
tailings technology.
related to climate change are
considered under our specific We recognise that environmental performance is key to our
Climate Change principal risk. ability to generate social value and perform regular risk
assessments to identify our potential impact and develop
preventive and mitigating strategies.
Each site regularly updates their environmental emergency
preparedness and detailed closure plans, including appropriate
financial provisions to ensure physical and chemical stability at
their sites once operations have ceased.

Strategic Report
5. CLIMATE CHANGE Risk appetite Risk level Outlook
The effects of climate change We recognise that climate change is a threat to human life and Our Climate Change Strategy seeks to
have had an increasing the planet as we know it today. strengthen our capacity to adapt to and mitigate
impact on our operations. climate change. This enables us to take early
We measure and report our Scope 1 and 2 greenhouse gas
The drought in central Chile is action to manage the resulting risks and
emissions and have committed to realistic reduction targets.
affecting water availability at opportunities in such a way as to mitigate the
Los Pelambres, while higher As regards water scarcity, we are reducing our dependence effects of climate change and adapt to new
than expected rainfall in the on continental water through more efficient water use and scenarios.
northern part of the country the increased use of sea water as a proportion of our total
By 2025 we aim to reduce our Scope 1 and 2
is impacting the infrastructure water consumption. As each phase of the Los Pelambres
emissions by 30% compared to 2020. We are
in the region. In addition, the desalination plant construction is completed, the proportion
also committed to achieving carbon neutrality
increasing severity of sea of continental water used will decrease, particularly after
by 2050, or sooner if technology permits.
swells leads to delays in the Phase 2 of the project, significantly lowering the potential
delivery of key supply impact of water scarcity on the Group while freeing up water Since April 2022, all our mining operations use
materials and the export for local communities. only renewable power, significantly reducing our
of our concentrates and Scope 2 emissions.
We seek constantly to identify risks associated with climate
cathodes. change and to implement actions to adapt to and mitigate their
The Chilean government’s potential impact. For each risk evaluated as “High” or “Extreme”
increased climate ambitions we produce specific action plans and strategies.
may result in higher We continue to seek ways to decarbonise our operations and
compliance and operating. this requires greater investment in innovative solutions,
We are committed to including in developing low-carbon technology, and can
contributing to the reduction increase operating costs.
of greenhouse gas emissions As part of our regular communication with local stakeholders
and water scarcity. We do we discuss the material risks and our controls, action plans and
this by increasing the amount related strategies.
of power and water we obtain
from renewable and
sustainable sources.
6. COMMUNITY RELATIONS Risk appetite Risk level Outlook
Failure to identify and manage We have a dedicated team that establishes and maintains We reinforced community programmes related
local concerns and relations with local communities. These relationships are based to water for human consumption and irrigation
expectations could negatively on trust and mutual benefit throughout the mining lifecycle, to mitigate the impact of the drought in the
impact the Company. from exploration to final remediation on closure. We seek to Province of Choapa.
Relations with local anticipate any potentially negative operating impacts and We seek to stimulate the generation of economic,
communities and minimise these through responsible behaviour. This means social and human capital in the regions where
stakeholders affect our acting transparently and ethically, prioritising the safety and we operate by promoting local employment,
reputation and impede our health of our employees and contractors, avoiding fostering local suppliers and offering education
ability to grow and generate environmental incidents, promoting dialogue, complying with and training opportunities. We run various
social value. our commitments to stakeholders and establishing mechanisms programmes to support local entrepreneurs and
to prevent or address a crisis. These steps are undertaken in micro and small businesses.
the early stages of each project and continue throughout the
life of each operation. We have launched a community concerns
management system to report any issues caused
We contribute to the development of communities in the areas by our operations on neighbouring communities.
in which we operate, starting with an assessment, undertaken Concerns can be made confidentially and tracked
together with the communities, of the existing situation and to monitor their progress.
their specific needs, while looking to develop long-term,
sustainable relations and evaluating the impact of our
contributions. We also focus on developing the potential of
members of local communities through education, training
and employment.
We work to communicate clearly and transparently with local
communities in line with our Community Relations Plan. This
includes a grievance management process, local perception
surveys, and local media and community engagement.

7. POLITICAL, LEGAL AND REGULATORY Risk appetite Risk level Outlook
Political instability could affect We constantly monitor political, legal and regulatory There is currently a heightened level of political
our operations, projects and developments affecting our operations and projects. uncertainty in Chile that has been somewhat
exploration activities in the reduced by the rejection of the proposed new
We comply fully with existing laws, regulations, licences,
countries in which we constitution and the advancement of the mining
permits and rights in each of the countries in which we
operate. Issues regarding the royalty reform.
operate.
granting of permits, or The Group is supporting the Chilean industry
amendments to permits We assess political risk as part of our evaluation of potential
associations, particularly the Consejo Minero
already granted, and changes projects, including the nature of any foreign investment
(Mining Council) in its representations and
to the legal environment agreements.
responses on the proposed legislation to the
or regulations, could also We monitor proposed changes in government policies and government on behalf of the industry.
adversely affect our regulations, particularly in Chile, and belong to several
operations and development associations that engage with governments on these matters.
projects. This helps to improve our internal processes and means that
we are prepared to meet any new regulatory requirements.
8. CORRUPTION Risk appetite Risk level Outlook
Our operations or projects We have zero tolerance for any activity that would contravene In 2022 cyber crime was included as a new
around the world could be anti-bribery and corruption legislation. We maintain a robust offence in the Chilean anti-bribery and
affected by risks related to governance regime, open channels of communication, employment protection laws. The Group’s
corruption or bribery, Group-wide training programmes, and multiple layers of controls were updated accordingly.
including operating controls at all our operations, projects and exploration activities, The Crime Prevention Model was recertified until
disruptions or delays resulting as well as in our third-party relationships using enhanced due mid-2023 by an expert third party.
from a refusal to make diligence procedures.
“facilitation payments”. Following a compliance risk assessment carried
Our Compliance Model is set to prevent actions which may out by external auditors, our risk matrix was
The level of such risks
involve us directly or indirectly in any potential irregularities updated to ensure we have a robust and
depends, in part, on the
(including any kind of bribery), detect possible risks in a timely transparent control framework.
economic or political stability
fashion and respond to any misconduct in an adequate manner.
of the country in which During the year, all our employees completed
Internal policies, procedures and controls have been
we are operating. an online Code of Ethics course as part of our
implemented to prevent corruption.
preventative measures programme.
An anonymous whistleblowing hotline is available to employees
and external parties to report compliance-related concerns,
which are investigated and followed-up by an expert team
and reviewed by a senior management Ethics Committee.
All our employees receive training on our Crime Prevention
Model, which is subject to external certification.
We strive to establish a Compliance culture throughout the
Group, through extensive training and user-friendly internal
communications.

Strategic Report
9. OPERATIONS Risk appetite Risk level Outlook
Our operations are subject to Principal risks relating to each operation are identified as part Lessons learned from previous cases of
a number of circumstances of the regular risk review processes they undertake. This community concern has improved the resilience
not wholly within our control. process also identifies mitigation measures for such risks. of our operations and minimised the impact of
These include damage to or incidents this year.
Monthly reports to the Board provide variance analysis of
breakdown of equipment or Many years of drought at Los Pelambres has
operating and financial performance, allowing potential issues
infrastructure, unexpected reduced production in 2021 and in 2022. This
to be identified in good time and any necessary monitoring or
geological variations, or climate change impact will be mitigated by the
control activities to be implemented to prevent unplanned
technical issues, any of which completion of the desalination plant in the first
downtime.
could adversely affect half of 2023.
production and/or costs. Our focus is on maximising the availability of equipment and
infrastructure and ensuring the effective use of our assets in The Los Pelambres concentrate pipeline incident
line with their design capability and technical limits. We keep the was quickly and appropriately mitigated and a
variation of processes within defined tolerance limits. project to assess the entire pipeline
implemented.
We have Business Continuity and Disaster Recovery Plans for
all key processes within our operations to mitigate the
consequences of a crisis or natural disaster. We also have
property damage and business interruption insurance to
provide protection from some, although not all, of the costs that
may arise from such events.
10. TAILINGS STORAGE Risk appetite Risk level Outlook
Ensuring the stability of our We manage our TSFs to allow the effectiveness of their design, The Global Industry Standard on Tailings
tailings storage facilities operation and closure to be monitored at the highest level of the Management (GISTM) was published in 2020.
(TSFs) during their entire Company. All our TSFs are built using the downstream We are implementing this standard at all our
lifecycle is central to how we construction method and are designed to withstand operations.
operate. A failure or collapse earthquakes and extreme weather. Our 2021 tailings policy sets out the guiding
of any of our TSFs could principles for the management of our TSFs and
Catastrophic failures of TSFs are unacceptable. Their potential
result in fatalities, damage to any potential or actual impact on the
for failure is evaluated and addressed throughout the life of
the environment, regulatory environment, using sound governance and open
each facility. Our TSFs are constantly monitored, and all
violations, reputational communication with stakeholders.
relevant information is provided to the authorities, regulating
damage and disruption of the
bodies and the communities that could be affected. In accordance with this standard, we continue to
quality of life of neighbouring
communities as well as the We manage our TSFs using data, modelling, and construction update our risk assessment methods, focusing
running of our operations. and operating methods validated and recorded by qualified on more detailed risk identification, failure modes
technical teams and reviewed by independent international and controls in order to avoid catastrophic
experts, whose recommendations we implement to strengthen failures.
the control environment. Risk management includes timely risk
identification, control definition and verification.
Our controls are based on the consequences of the potential
failure of the tailings facilities.
11. STRATEGIC RESOURCES Risk appetite Risk level Outlook
Disruption or restriction of Contingency plans are in place to address any short-term During the year, some transport interruptions
the supply of any of our key disruptions to strategic resources and maintain our security and the war in Ukraine threatened the supply of
strategic inputs, such as of supply. We negotiate early with suppliers of key inputs to some key inputs. However, the impact was
electricity, water, fuel, ensure continuity. Certain key supplies are purchased from either prevented or mitigated through constant
sulphuric acid or mining several sources to mitigate potential disruption arising from monitoring, contingency planning and actions
equipment, could negatively exposure to a single supplier. taken to improve our supply alternatives, such
impact production. as inventory management and increase the
To achieve cost competitiveness, we endeavour to buy the
stockpile capacity.
In the longer term, highest possible proportion of our key inputs, such as fuel and
restrictions to the availability tyres, on as variable a price basis as possible and to link costs The main exposure during the year was related
of key strategic resources to underlying commodity indices where this option exists. to water scarcity at Los Pelambres due to the
such as water and electricity drought. By the year end the desalination plant
We maintain a rigorous, risk-based supplier management
could also affect our growth was 93% complete and will be in production
framework to ensure that we engage solely with reputable
opportunities. in 2023.
product and service providers, keeping in place the controls
necessary to ensure the traceability of all supplies (including
the avoidance of any conduct related to modern slavery).
We are committed to incorporating sustainable technological
and innovative solutions, such as the use of sea water and
renewable power when economically viable, to mitigate
exposure to potentially scarce resources.

12. CYBER SECURITY Risk appetite Risk level Outlook
Breaches in, or failures of, Our Information Security Management Model provides We have further strengthened our protective
our information security defensive structural controls to prevent cyber risks and mitigate controls and regularly communicate with users
management could adversely their effects. It employs a set of rules and procedures, including to prevent cyber attacks.
impact our business activities. a Disaster Recovery Plan, to restore critical IT functions in the To reinforce our controls we organised “ethical
event of an attack.
Malicious interventions phishing” and “ethical hacking” exercises during
(hacking) of our information Our systems are regularly audited to identify any potential the year.
or operations’ networks could weaknesses or threats to our assets, and specific systems are
affect our reputation and/or in place to protect them and our data.
operational continuity.
13. LIQUIDITY Risk appetite Risk level Outlook
Restrictions in financing Security, liquidity and return are the order of priorities for our We maintained our solid balance sheet and
sources available for future treasury investment strategy. We maintain a strong and flexible financing ratios, safeguarding our capability
growth could prevent us from balance sheet, consistently returning capital to shareholders to raise debt.
taking advantage of growth while leaving sufficient funds to progress our short-, medium- We have focused on diversifying our funding
or other opportunities in the and long-term growth plans. This gives us the financial flexibility sources, retaining a high level of interest from
market. to take advantage of opportunities as they may arise. financial institutions offering to provide finance
We have a risk-averse investment strategy, managing our on competitive terms.
liquidity by maintaining adequate cash reserves and financing During 2022 we issued our second $500 million
facilities through the periodic review of forecast and actual cash corporate bond and we agreed a Revolving
flows. We choose to hold surplus cash in demand or term Credit Facility (RCF) for $500 million, diversifying
deposits or highly liquid investments. the sources and term of our debt financing.
14. COMMODITY PRICES AND EXCHANGE RATES Risk appetite Risk level Outlook
Our results are heavily We consider exposure to commodity price fluctuations an The impact of the political uncertainty during
dependent on commodity integral part of our business and our usual policy is to sell our the year often outweighed the usual
prices – principally those of products at prevailing market prices. We monitor commodity correlation between the US dollar/Chilean
copper and, to a lesser extent, markets closely to determine the effect of price fluctuations on peso exchange rate.
gold and molybdenum. earnings, capital expenditure and cash flows. Very occasionally, No new hedging positions were entered into
The prices of these when we feel it is appropriate, we use derivative instruments during 2022.
commodities are influenced to manage our exposure to commodity price fluctuations.
by many external factors,
We run our business plans under various commodity price
including world economic
scenarios and develop contingency plans as required.
growth, inventory balances,
industry supply and demand, As copper exports account for over 50% of Chile’s exports,
possible substitution, etc. there is a correlation between the copper price and the US
dollar/Chilean peso exchange rate. This natural hedge partly
Our sales are mainly
mitigates our foreign exchange exposure. However, we monitor
denominated in US dollars,
the foreign exchange markets and the macroeconomic
although some of our
variables that affect them and occasionally implement a focused
operating costs are in Chilean
currency-hedging programme to reduce short-term exposure
pesos. Thus any
to fluctuations in the US dollar against the Chilean peso.
strengthening of the Chilean
peso may negatively affect
our financial results.

Strategic Report
15. GROWTH OF MINERAL RESOURCE BASE AND OPPORTUNITIES Risk appetite Risk level Outlook
We need to identify new Our exploration and investment strategy prioritises Our exploration activities continued to be focused
mineral resources to ensure exploration and investment in the Americas. To reduce our on the Americas and our risk exposure level was
continued future growth. We risk exposure, we focus on growth opportunities in stable unchanged.
do this through exploration and secure countries. The Company has discovered a significant
and acquisition. greenfield copper/gold deposit in the Chilean
Our rigorous assessment processes evaluate and determine
We may fail to identify the risks associated with all potential business acquisitions High Andes. The initial inferred resource of the
attractive acquisition and exploration opportunities, including stress-test scenarios Encierro deposit is 522 million tonnes, with
opportunities or select conducted for sensitivity analysis. Each assessment includes a copper grade of 0.65%.
inappropriate targets. The a country risk analysis (including corruption) and analysis of Two of Twin Metals’ federal mining leases were
long-term commodity price our ability to operate in a new jurisdiction. cancelled during 2022. In August 2022 Twin
forecast, and other Metals filed a federal claim challenging these
At the very least, all joint ventures must operate in line with,
assumptions used when actions.
or to the equivalent level of, our policies and technical
assessing potential projects
standards.
and other investment
opportunities, will influence Our Business Development Committee reviews potential
the forecast return of opportunities and transactions, approving or recommending
investments. Incorrect them within authority levels set by the Board.
estimates could cause poor
decision-making.
Regarding exploration, there
is a risk that we may not
identify sufficient viable
mineral resources.
16. PROJECT DEVELOPMENT AND EXECUTION Risk appetite Risk level Outlook
Failure to effectively manage We have a project management system to ensure that best Our projects are developed in accordance with
our development projects or practices are applied at each phase of a project’s development. the practices set out in our Asset Delivery
transform our resources into The project management system provides a common language System (ADS), including the Functional Quality
reserves could result in and standards to support the decision-making process by Assurance Review (FQAR), and are reviewed
delays to the start of balancing risk with the benefits of growth. In addition, all by external experts.
production and cost overruns. geometallurgical models are reviewed by independent experts. Project risks are proactively managed and
Delays on information capture During the project development lifecycle, quality checks for frequently evaluated to minimise their impact
and/or not achieving required each of the standards applied are carried out by a panel of on costs.
enablers could limit the experts from within the Company. This panel reviews each Project estimates include a contingency
conversion of resources into completed feasibility study to assess the technical and provision, calculated using a probability-based
reserves. commercial viability of the project. It also assesses how the method that considers the systemic and specific
project can be developed safely and considers any relevant risks of each project.
risks or opportunities that could potentially impact the schedule,
cost or future performance of the project. The risks associated with converting mineral
resources to reserves are properly identified
Detailed progress reports on current projects are regularly and managed by the teams to ensure accurate
reviewed and include assessments of progress against key conversion.
project milestones and performance against budget.
Project robustness is stress-tested under a range of copper
price scenarios. Joint project/operation teams are established
early in a project’s development to ensure a smooth transition
into the operating phase once construction is completed.
All new reserves and growth projects must comply with our
internal procedures and all applicable environmental and social
laws and regulations.

17. INNOVATION AND DIGITALISATION Risk appetite Risk level Outlook
Our ability to deliver on our We seek value-capturing innovations that realise cost savings During 2022, various automation projects were
strategy and our performance and/or improve the efficiency, reliability and safety of our progressed. These included the use of
targets may be undermined processes while supporting our corporate strategic pillars. autonomous drills and autonomous trucks at
by missed opportunities or We evaluate the potential of all ideas using our stage-gate Centinela and the commissioning of its new
delays in adopting new approval process and Innovation Board. Integrated Remote Operations Centre (IROC).
technologies or innovations. The IROC for Los Pelambres will be
We maintain partnerships with academic institutions and
commissioned in 2023.
companies specialising in technology and engineering –
including peers, when there is no competitive barrier – to Advanced data analytics are used at our
maximise the potential for improvements in our processes and operations to increase throughput and ore
systems. A dedicated team monitors, identifies and analyses recovery and to improve predictive maintenance.
external innovation trends that have potential applications in our During the year our Data Governance
business, including those in non-operational areas such as Programme and Data Platform were deployed
product sales and purchasing. The team also maintains and across the organisation to improve data access,
manages a portfolio of ongoing innovation projects. consistency and quality, thus accelerating our
Advanced Analytics capabilities.
We have a recognition and incentives programme to encourage
all staff to suggest innovative improvements to our day-to-day
operating systems. We also dedicate resources to evaluating
and implementing innovations which have the potential to
positively impact our business and growth options.
18. EXTERNAL RISKS Risk appetite Risk level Outlook
We must develop the ability Changes in the global or Chilean economic or political The controls for this risk were updated to
to manage external threats environment can impact the Group’s strategy. incorporate lessons learned during the year,
that are complex to predict such as the geographic diversification of our
We maintain our good practices and adopt lessons learned
and can significantly impact suppliers and actions taken to guarantee the
during periods of crisis.
the Group’s strategic safety and health of our employees during a
objectives and its operational We recognise the volatility of the markets and proactively seek pandemic.
continuity. new business models and work to expand our client base.
We also increased our stocks of strategic
We regularly review our Business Continuity Plan. resources to improve our supply resilience.
We use scenario analysis to challenge the principles on which
we base our financial planning, identifying potential risks, costs
and benefits of feasible action plans.
Emerging Risks
In addition to our principal risks, we are constantly on the lookout for emerging risks that may become new principal risks in the future.
Current emerging risks are:
Emerging risk Impact
New tax regulations During 2022, each of our mining operations had tax stability agreements
Wide-ranging Chilean tax reform is expected during 2023. in place and the future financial impact on them will be assessed if the
reforms become law.
Geopolitical The potential impact may include lower revenue, longer lead times
Global political and economic uncertainty is affecting short-term for critical supplies and increased input costs.
demand for copper and other metals, as well as trade flows
and our supply chains.
The above risks are closely monitored and actively managed to minimise their threat.

Strategic Report
Compliance and internal controls
How we achieve our objectives is crucial We actively promote open communication with all our employees,
contractors and local communities. This helps ensure that our corporate
to the sustainable long-term development and value creation objectives are achieved in an ethical and honest way.
of the Company. We have zero tolerance for The Compliance Model is reviewed regularly, both internally and by third
bribery and corruption and are committed parties, and on corruption-related matters it is certified in accordance
to working with integrity and transparency. with Chilean anti-corruption legislation.
We comply with all applicable anti-corruption The Model has three pillars:
and anti-bribery legislation and ensure that Prevention: The main focus of the Compliance Model is to prevent
necessary controls are in place to prevent the occurrence of any irregular or illegal situations. We provide a series
of tools and training opportunities to all employees and contractors
any unethical behaviour. to support appropriate behaviour through:
Areas of focus and development during 2022 • Internal policies and procedures
• Whistleblowing investigations, performed by a group of experts, • Anti-trust guidelines
were centralised and standardised, guaranteeing independence • The management and update of our Compliance Risk Matrix
to the process
• Our robust due diligence processes
• A robust due diligence process is in place
• Anti-corruption clauses in suppliers’ and employees’ contracts
• The Company’s Crime Prevention Model was recertified by an
• Compliance training and communication
independent expert
• Access Control and Governance, Risk and Compliance (GRC)
• All of the Group’s employees completed online Code of Ethics training
tools are used as part of the segregation of duties control
during the year
• Employees in high-risk areas completed more in-depth training Detection: We have several tools to detect any potentially irregular
on ethics and compliance or illegal situations, including:
• New employees were trained in the Compliance Model as part • Robust whistleblowing channels
of their induction programme • Data analysis
• All employees updated their conflict-of-interest disclosures • Anti-corruption internal controls
• An “Integrity Week” event was held for all employees during which • Normative Instruments, such as internal policies, procedures
the value of respect in the workplace was discussed or guidelines, which are continually reviewed
• Anti-corruption events took place at all our operations to reinforce • Internal audit
our compliance with our Integrity values
Action: If an irregular or illegal situation is detected, it is investigated
• The Compliance team was included as part of the approval process
according to our internal procedures using fact-based, objective and
for social contributions, to strengthen monitoring and governance
professional standards. Each of our operations has an Ethics Committee
• A communication campaign was carried out as part of our focus which reviews the findings of every investigation and suggests
on Prevention in our Compliance Model remediation plans to the Corporate Ethics Committee. The performance
• Compliance was included as a topic in the “Antofagasta Supplier Day” of the compliance programme is reported twice a year to the Audit and
event, with a particular focus on local suppliers Risk Committee and to the Board. The anonymity of the whistleblowing
• Our Compliance Risk Matrix and all the controls related channels is guaranteed to safeguard individuals and so achieve greater
to it were reviewed transparency and bolster our non-retaliation policy.
• All allegations regarding ethical and non-ethical concerns During the year we received 624 allegations. Of these 245 (39%) were
are presented to the Ethics Committee. ethics related and 379 (61%) were non-ethical concerns. The ethical
Code of Ethics allegations were classified as: 73% (180) harassment, abuse and
Our Code of Ethics sets out our commitment to conducting business mistreatment, 11% (28) fraud or misuse of property, 5% (10) conflicts of
in a responsible and sustainable manner. The Code requires honesty, interest, 2% (4) bribery and corruption, 0% (0) modern slavery and 9%
integrity and accountability from all employees and contractors and (23) other. Remediation action were defined and implemented for all
includes guidelines for identifying and managing potential conflicts substantiated allegations.
of interest. It is the core of our Compliance Model and supports the Our Crime Prevention Model ensures compliance with anti-bribery
implementation of all other related activities. and anti-corruption laws in the United Kingdom and Chile and is certified
Our Code is available on our website. by an external entity.
Compliance Model Due diligence highlights
Our Compliance Model applies to both our employees and contractors. During the year 6,612 suppliers were reviewed, of which 1.6% were
It is clearly defined and is communicated regularly through internal rejected. Of these 97% were Chilean suppliers and 3% were
channels as well as being available on our website. All contracts include international. The reasons for rejection were mainly due to high financial
clauses relating to ethics, modern slavery and crime prevention or tax risk, non-compliance with Law 20.393 (Criminal Responsibility
to ensure contractors’ adherence to our Model. of Legal Entities) or non-compliance with Group guidelines.

Viability statement
To address the requirements of provision 31 The stability of tailings storage facilities represents a potentially
significant operational risk for mining operations globally. The Group’s
of the 2018 UK Corporate Governance Code, tailings storage facilities are designed to international standards,
the Directors have assessed the prospects constructed using downstream methods, subject to rigorous monitoring
of the Group over a period of five years. and reporting, and reviewed regularly by an international panel of
independent experts. Given these standards of design, development,
Mining is a long-term business and timescales can run into decades. operations and review, the impact of a potential tailings dam failure has
The Group maintains Life-of-Mine model covering the full remaining not been included in the sensitivity analysis.
mine life for each mining operation. More detailed medium-term planning
is completed for a five-year time horizon (as well as very detailed annual The above downside sensitivity analyses indicated results which could
budgets). Accordingly, five years has been selected as the appropriate be managed in the normal course of business, including the aggregate
period over which to assess the prospects of the Group. impact of a number of the above sensitivities occurring at the same time.
The analysis indicated that the Group is expected to remain in
When taking account of the impact of the Group’s current position compliance with all of the covenant requirements of its borrowings
on this viability assessment, the Directors have considered in particular throughout the review period and retain sufficient liquidity. Based on
its financial position, including its significant balance of cash, cash their assessment of the Group’s prospects and viability, the Directors
equivalents and liquid investments and the terms and remaining confirm that they have a reasonable expectation that the Group will
durations of the borrowing facilities in place. The Group had a strong be able to continue in operation and meet its liabilities as they fall
financial position as at 31 December 2022, with combined cash, cash due over the next five years.
equivalents and liquid investments of $2,391.2 million. Total borrowings
were $3,277.0 million, resulting in a net debt position of $885.8 million.
Of the total borrowings, only 13% is repayable within one year, and 17%
repayable between one and two years. 35% of the borrowings are
repayable after more than five years, beyond the viability review period.
When assessing the prospects of the Group, the Directors have
considered the Group’s copper price forecasts, the Group’s expected
production levels, operating cost profile and capital expenditure. These
forecasts are based on the Group’s budgets and Life-of-Mine models,
which are also used when assessing relevant accounting estimates,
including depreciation, deferred stripping and closure provisions. This
analysis has focused on the existing asset base of the Group, without
factoring in potential development projects, which is considered
appropriate for an assessment of the Group’s ability to manage the
impact of a depressed economic environment. The analysis has only
included the drawdown of existing committed borrowing facilities, and
has not assumed that any new borrowing facilities will be put in place.
The Directors have assessed the principal risks which could impact the
prospects of the Group over this period and consider the most relevant
to be risks to the copper price outlook, as this is the factor most likely
to result in significant volatility in earnings and cash generation. Robust
down-side sensitivity analyses have been performed, assessing the
standalone impact of each of:
• A significant deterioration in the future copper price forecasts
by 20% throughout the five-year period.
• An even more pronounced short-term reduction of 50 c/lb in the
copper price for a period of three months, in addition to the above
deterioration of 20% in the copper price throughout the review
period.
• The potential impact of the Group’s most significant individual
operational risks.
• A shutdown of any one of the Group’s operations for a period
of three months.
• Potential changes to the Chilean mining royalty, taking into
account the Group’s existing tax stability agreements.

Strategic Report
Stakeholder
Review
Highlights 40
Our approach to sustainability 42
How we engage with our stakeholders 46
Our people 48
Safety and occupational health 51
Communities 54
Environment 57
Climate Change 60
Financial Disclosures (TCFD) 64
Suppliers 67
Customers 70
Shareholders 71
Governments and regulators 72
Non-financial information statement 73

“Sustainability for Antofagasta plc
is about deploying a strategy that
improves the lives of our
employees, embraces and
supports the development of our
surrounding communities, and
manages the environmental
aspects of our operations.”
René Aguilar
Vice President of Corporate Affairs and Sustainability

Strategic Report
/ Highlights
We have made strong progress

against our targets
We had record safety performance, and • We signed Greenhouse Gas Agreements with mining equipment
suppliers Komatsu and Caterpillar in a step towards developing
achieved our female participation and zero-emission vehicles and machinery, which currently account for
emissions reduction goals. approximately two-thirds of our Scope 1 emissions.
• In December, we launched our Suppliers for a Better Future
Sustainability-related governance programme, which sets targets for suppliers on environmental, social
• In August and December respectively, our Antucoya and Los and governance (ESG) matters, to be achieved by 2025.
Pelambres operations were awarded the Copper Mark, the copper
industry’s responsible production assurance framework. Zaldívar and Community
Centinela received this recognition in 2021. • In March, we launched a new community grievances management
• Our four mining operations completed the independent audits required system to report concerns, complaints or grievances caused by our
to validate their performance against the International Council on operations.
Mining and Metals’ (ICMM) Performance Expectations. • We dedicated extra resources to measuring the impact of our
• We updated our Human Rights Policy to strengthen our explicit investments in our areas of influence, as we continue to evaluate our
commitment to respect the rights, culture and traditions of indigenous programmes and improve our performance.
peoples and approved an Indigenous Peoples Engagement Standard. • In 2022, we ramped up our En Red (Connected) digital connectivity
• We prepared a Sustainable Procurement Policy to govern both programme, comprising over 20 initiatives to address the deficit of
our management and our expectations of the companies in our digital infrastructure and skills in the rural and vulnerable communities
supply chain. near our operations.
• In September, as part of our efforts to combat the acute drought in
Safety and health the Choapa Province, we launched a 30-month project to digitalise
• In 2022, there were no fatalities in the Group. and automate the 80 Rural Sanitary Services (SSRs) that provide
water to people’s homes.
• The Group’s safety performance continued to improve; compared
to 2021, high potential incidents (HPIs) and the Lost Time Injury
Frequency Rate fell by 40% to 0.12 and 37% to 0.84, respectively. Environment
• The Mining division began installing the latest generation collision • In 2022, we updated our Biodiversity Standard as part of the
avoidance system in its transport equipment, and also in the transport implementation of our Climate Change Strategy, improving its
equipment of its contractors and subcontractors. alignment with the position statement from the International Council
on Mining and Metals (ICMM) on Mining and Protected Areas.
• We continued to implement the Global Industry Standard on Tailings
People Management at Los Pelambres and at Centinela and Zaldívar,
• In 2022, we rolled out our Wellbeing Strategy, focusing on physical,
aiming to finish by the prescribed deadlines of August 2023 and
emotional, financial and social welfare.
August 2025.
• We increased the proportion of our female employees to 20.4%,
• Los Pelambres is planting some 48,000 native trees and shrubs
compared to 17.2% in 2021, continuing the steady improvement
across 300 hectares at the Quillayes tailings dam. This will help
achieved since 2018 and meeting our target for the year.
control particulate material events while blending the dam in with its
• As our digital transformation plan advanced, we trained employees
surrounding environment.
at Centinela and Los Pelambres to work in our integrated remote
operations centres (IROCs) and use autonomous equipment such
as trucks and drill rigs. Climate change
• Our Transport and Mining divisions launched new apprenticeship • We approved new Water and Energy Policies to improve our
programmes, accepting 233 candidates, of whom 81% are women, management of these critical resources in the fight against climate
mainly from communities close to our operations. change and aligned our Energy Management System with Chile’s new
Energy Efficiency Law.
• We completed the conversion of all the electricity supply of our mining
Suppliers sites to renewable contracts, leading to a reduction of 873,695 tCO2e
• In 2022, we began applying ESG criteria to evaluate bids for contracts
in our Scope 2 emissions compared to 2021.
worth over $10 million. These criteria included the contractors’
• We continued to refine our calculation of Scope 3 emissions with the
emissions, D&I, local recruitment and governance strategies
aim of setting a reduction target in 2023 or as soon as possible
and practices.
thereafter. We also began applying an internal carbon price on tenders
• The number and value of tenders awarded by our Mining division
for carbon-intensive products and in the evaluation of projects.
to local suppliers increased by 49% to 7,139 and 10% to $374m
• In October, our Transport division signed an agreement to acquire
respectively as part of our commitment to foster economic
a 100% green hydrogen-fuelled cargo train that should start operating
development in the regions where we operate.
in 2024.
• During 2022, we began work on a decarbonisation plan for all
our operations.

DELIVERING SUSTAINABLE ECONOMIC VALUE
At Antofagasta, our purpose is to develop mining for a better future
and we understand that generating economic value means more
than making a profit.
We generate economic value for all our stakeholders, distributing it as
wages to employees, purchases of goods and services to suppliers,
social investment programmes in communities, taxes to governments,
dividends to shareholders and interest payments to lenders.
This direct distribution of economic value generates indirect benefits
through spending by employees, suppliers, the government and others,
benefitting the country as a whole.
For Antofagasta, creating economic value means generating profits
responsibly and with long-term vision, incorporating unique and
innovative solutions in business decisions to address challenges
in the regions in which we operate, as well as working to tackle
today’s global challenges.
In 2022, we directly distributed a total of $7,445 million.
Suppliers
$4,620m
Payments for the purchase of utilities, goods and services
Communities
$57m
Social investment programmes
Lenders
$77m
Interest payments
Shareholders
$7,445m
$1,263m Total economic contribution
Dividends
Subsidiaries’ non-controlling
shareholders
$80m
Dividends
Employees
$548m
Salaries, wages and incentives
Governments
$800m
Income taxes, royalties and other payments to governments

Strategic Report
/ Our approach to sustainability
We are committed to making a positive

long-term impact on society
Sustainability is a core part of our values and In 2022, our CEO Iván Arriagada was named chair of both Chile’s Mining
Council and the London-based International Council on Mining and
is at the heart of our decision-making as we Metals (ICMM), thanks in part to our efforts on sustainability. He is the
seek to achieve our purpose of developing first Latin American to lead the ICMM, a global association which seeks
mining for a better future. to improve the industry’s sustainable development performance. In
addition, he was named as the 2022 recipient of the prestigious Copper
Governance Club’s Ankh Award for Copper Man of the Year in recognition of his
At Antofagasta, our commitment to making a positive long-term impact outstanding service to the copper mining industry, leadership, and for
on society is underpinned by our values and robust policies, standards promoting the benefits of copper and its critical role in shaping a more
and strategies that we constantly review and adapt in order to address sustainable future.
emerging and growing societal concerns.
Using this framework, we strive to engage the whole organisation in our
commitment to respect human rights, promote safety and health, deliver RESPONSIBLE PRODUCTION FRAMEWORK
strong economic returns, protect the environment, address climate
In recent years, an important focus of our work has been to align
change and create social value in the regions where we operate.
our policies, strategies and practices with the highest sustainability
Our Sustainability Policy and our Human Rights Policy establish the standards and to address transparency and trust issues through
principles that guide our day-to-day actions on environmental, social and third-party validations in order to demonstrate that we produce
governance (ESG) matters. In 2022, we updated our Human Rights copper responsibly.
Policy to reinforce our commitment to the rights of indigenous people
In 2021, Centinela and Zaldívar were among the first mining sites in
and to formally align our security practices with the Voluntary Principles
the world to be awarded the Copper Mark, an independent external
on Security and Human Rights (VPSHR). We also prepared
assurance of mining sites’ compliance with strict and internationally
a Sustainable Procurement Policy that governs our management
recognised standards of sustainable production. In 2022, Antucoya
and expectations of companies in our supply chain.
and Los Pelambres completed the same assurance process, also
We regard climate change as one of the greatest challenges of our obtaining the Copper Mark. Summaries of the full Copper Mark
times. In 2022, we approved specific Energy and Water Policies to reports are available on coppermark.org.
strengthen our Climate Change Strategy across the organisation, while
The Copper Mark was launched in 2020 and was inspired by the
further embedding climate considerations into our working practices.
UN’s Sustainable Development Goals (SDGs). It involves the
We also updated our Biodiversity Standard.
independent verification of activities at copper-producing sites,
The Board is responsible for leading and monitoring sustainability based on 32 criteria in five categories: governance, labour rights,
practices. The Sustainability and Stakeholder Management Committee environment, community and human rights. Sites must at least
makes recommendations to ensure ESG issues are included in the partially meet all criteria and commit to closing all identified gaps
Board’s deliberations. At the executive level, sustainability considerations within 12 months. As participants, we are committed to a
guide decision-making across the organisation, with particular third-party review every three years.
responsibility falling upon the Corporate Affairs and Sustainability area.
As members of the International Council on Mining and Metals, our
In 2022, a sustainability reporting team was established to further
four mining sites also underwent independent audits on compliance
improve transparency and provide more detail about our interactions
with the ICMM’s Performance Expectations. The ICMM has
with stakeholders.
assessed the equivalency of its 38 Performance Expectations
In July, we published our first special Tax Report detailing our tax against the Copper Mark and the process focused on those not
payments in 2021, one of a series of recent initiatives to improve covered (six) or only partially covered (nine) by the Copper Mark.
transparency about our business. In August, we published an ESG This assurance process ensures that ICMM’s 27 member
Databook on the Antofagasta plc website for the first time, which shows companies are held to the same high standards and will be
sustainability data by site and by year since 2018. Towards the end of repeated every three years.
the year, we began preparing our second special report, this time on
Further information can be found in the Mining division’s 2022
climate change and social investment, to be published in April 2023.
Sustainability Report.
We communicate with and train the whole organisation to ensure that
everyone is aligned with our commitment to sustainability. Sustainability
targets associated with safety, diversity and inclusion (D&I), environment
and social performance account for 25% of annual performance
bonuses, to encourage internal buy-in and focus our employees’ efforts
on best practice.

Materiality analysis • Prioritising and defining material topics: The European Financial
In 2022, we conducted a materiality assessment to identify the Reporting Advisory Group’s scales were used to define each topic’s
sustainability issues most critical to our business and stakeholders which level of materiality. The most significant impacts were grouped
we update every two years. It was built collaboratively with inputs from into material topics under the categories economic, governance,
internal and external stakeholders. For the first time we used the new environmental and social. Each topic was reviewed and confirmed
Global Reporting Initiative Standard on Material Topics, which came into or adjusted by Antofagasta’s sustainability team.
effect on 1 January 2023. In total, 28 material topics were identified, of which four are new:
The analysis has four stages: industrial protection, wellbeing, cyber security and, in the case of
our Transport division, soil remediation. The most significant issues
• Diagnosing the organisation’s context: Comprehensive review
in terms of their importance to stakeholders and their potential impact
of internal and external information, and interviews with senior
are: corporate governance; regulations and permitting; transparency,
management and external experts regarding existing, new and
communication and trust; safety and health culture; communities and
emerging ESG topics for the copper mining industry, both in Chile
indigenous peoples’ engagement; and social contribution and skills
and internationally.
development.
• Identifying actual and potential material topics: The information
obtained was used to draw up a preliminary long list of actual, The exercise ensures that we report on subjects of interest to
potential and positive and negative material topics. stakeholders in our Mining and Transport divisions’ Sustainability Reports
• Assessing the significance of the impacts: The qualitative and and will guide our focus, strategies, policies and practices in 2023.
quantitative impacts of each topic were evaluated based on the Details of our approach and activities to address these challenges in
severity and likelihood of actual and potential impacts. The severity 2022 are contained in the corresponding sections of this Stakeholder
assessment was based on the scale, scope and remediable nature Review or in our 2022 Sustainability Reports.
of the impacts.
Antofagasta plc materiality matrix
• Decarbonisation • Corporate governance

• Workforce wellbeing • New regulations, regulatory
uncertainty and permits
• Transparency, communications
and trust
HIGH
• Safety and health culture

• Dialogue and engagement with
community and indigenous
peoples
• Social contribution and skills
development
• Circular economy • Responsible sourcing • Economic performance

IMPORTANCE TO STAKEHOLDERS
• Respect for human • Contractors’ management • Site security

rights • Innovation • Management of the operations
• Digital transformation social and environmental impacts
• Risk management and climate
MEDIUM HIGH
change adaptation
• Water management
• Collaborative labour relations
• Talent attraction, retention
and development
• Local employment
• Diversity, equity, inclusion
• Tailings management
• Biodiversity
MEDIUM LOW
• Cyber security
• Soil remediation
• Heritage and urban
LOW
development
LOW MEDIUM LOW MEDIUM HIGH HIGH
STRATEGIC IMPORTANCE FOR THE GROUP

Strategic Report
/ Our approach to sustainability continued
Our commitment to the

Sustainable Development Goals
The Sustainable Development Goals (SDGs) At Antofagasta, we are committed to playing our part in achieving
the SDGs through the creation of value for our different stakeholders
were adopted by all United Nations Member and the approval of commitments, targets and programmes that
States in 2015 as a universal call to end seek to contribute to the sustainable development of the regions
poverty, protect the planet and ensure that all where we operate.
people enjoy peace and prosperity by 2030.
NO POVERTY
End poverty in all its forms everywhere
We contribute to the reduction of poverty through the distribution of the economic value generated, such as wages and taxes, and our social
programmes. Since 2020, we have required contractor companies to pay their employees an ethical minimum monthly wage. In 2022, it was set
at Ch$552,000, 38% higher than Chile’s legal minimum wage of Ch$400,000.
GOOD HEALTH AND WELLBEING

Ensure healthy lives and promote wellbeing for all at all ages
For Antofagasta, the safety and health of our employees, contractors and nearby communities is non-negotiable and takes precedence over results.
The aim of our Safety and Health Strategy is to have no fatal accidents or occupational health illnesses. In 2022, we rolled out a Wellbeing Strategy
focusing on physical, emotional, financial and social welfare to complement our existing Flexitime and Work-Life Balance Guidelines that aim to enhance
employees’ work experience and life quality.
QUALITY EDUCATION
Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all
We support inclusive access to good quality education in order to improve job opportunities in the regions where we operate. Initiatives range
from providing school and higher education scholarships to providing and strengthening technical-professional courses. We offer Young Graduate
programmes as well as apprenticeships and internships to give learning and work opportunities to local young people.
GENDER EQUALITY
Achieve gender equality and empower all women and girls
The Group’s Diversity and Inclusion Strategy seeks to increase the participation and retention of women. This is reflected in our recruitment
and selection strategies, in the promotion of inclusive workspaces and in our zero-tolerance policy on sexual harassment. The proportion of women
in our direct workforce has grown steadily, from 8.6% in 2018 to over 20% by the end of 2022.
CLEAN WATER AND SANITATION

Ensure access to water and sanitation for all
Our water management practices, which are aligned with the International Council on Mining and Metals’ (ICMM) Water Stewardship Framework,
aim to protect water for our operations, communities and the environment. Our strategy aims to reduce our use of continental water. We anticipate
that by 2025 raw or desalinated sea water and recirculated water will account for 90% of usage at our mining operations. We also work with local
communities to ensure water availability for human consumption and irrigation.
AFFORDABLE AND CLEAN ENERGY

Ensure access to affordable, reliable, sustainable and modern energy
Since April 2022, our four mining operations’ electricity comes solely from renewable contracts, in line with our Climate Change Strategy,
and we are piloting technology to replace the diesel used in our mining equipment. Our Transport division ordered a green hydrogen fuelled cargo
train that will begin operations in 2024. We also funded solar panels for 40 homes in Michilla to provide backup against frequent outages.
DECENT WORK AND ECONOMIC GROWTH

Promote inclusive and sustainable economic growth, employment and decent work for all
We are governed by the UK Modern Slavery Act. Our Code of Ethics, Human Rights Policy and Diversity and Inclusion Strategy aim to ensure
a harassment-free, inclusive workplace that respects human rights and diversity. We promote employee development and in 2022 spent $2.3 million
on training initiatives. We work with our suppliers to support environmental, social and governance best practice in the supply chain.
INDUSTRY, INNOVATION AND INFRASTRUCTURE

Build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation
Innovation is one of the five pillars of our Strategy to develop mining for a better future, fostered through our Innovaminerals open platform
and pitch days for suppliers at our operations. As part of our Digital Transformation programme, we are training employees on digital technology
and the use of autonomous equipment and integrated remote operating centres. Our En Red programme aims to bring digital infrastructure and
skills to local communities.
REDUCED INEQUALITIES
Reduce inequality within and among countries
We aim to reduce inequality by providing help in the form of scholarships, educational support and access to Young Graduate programmes to promote
social mobility in remote and vulnerable sectors in the regions where we operate. In 2022, we provided 951 scholarships to students in the Antofagasta
Region and the Choapa Province. We also promote skills development and job opportunities for local people and businesses.

SUSTAINABLE CITIES AND COMMUNITIES
Make cities inclusive, safe, resilient and sustainable
Through our Social Management Model, we choose, develop and implement social investment projects together with local communities, strengthening
local leadership and the long-term impact of initiatives. We work with local authorities, communities and third-party experts to improve public spaces
and social cohesion in communities. Our Transport division plans to rehabilitate 48 hectares of industrial land in the centre of the city of Antofagasta
as part of a broader urban development plan.
RESPONSIBLE CONSUMPTION AND PRODUCTION

Ensure sustainable consumption and production patterns
Our Sustainability Policy drives the responsible management of the Group’s activities. Each of our four mining operations has been awarded the Copper
Mark, the copper industry’s new responsible production assurance framework, and completed the ICMM’s Performance Expectations third-party
validation process. Our Suppliers for a Better Future programme aims to improve suppliers’ ESG practices through training, targets and incentives
in tender evaluations.
CLIMATE ACTION
Take urgent action to combat climate change and its impacts
We recognise climate change as one of the greatest challenges facing the world today and acknowledge that we are part of the solution. As a copper
producer we supply an input that is critical for low-carbon technologies. At the same time, we are working to decarbonise our operations. Our Climate
Change Strategy sets ambitious goals for emissions and water use, as well as the resilience of our operations and their areas of influence. We are
committed to being carbon neutral by 2050 at the latest and this year we achieved our target to cut our Scope 1 and 2 emissions by 30%.
LIFE BELOW WATER

Conserve and sustainably use the oceans, seas and marine resources
Our Biodiversity Standard is aligned with the ICMM’s position statement on Mining and Protected Areas. It aims to prevent or minimise our impact
on biodiversity, to restore or provide appropriate compensation for any impacts and to generate additional benefits for the areas in which we operate.
Centinela and Los Pelambres monitor the marine environment in the vicinity of their port facilities, studying the water column, sediments and marine
fauna. Los Pelambres supports R&D projects to repopulate the area near its marine facilities with sea urchins, abalones, red kingklip and other species.
LIFE ON LAND
Sustainably manage forests, combat desertification, halt and reverse land degradation and halt biodiversity loss
Protecting biodiversity is a key part of our climate change strategy. We seek to promote net gains in biodiversity and for nature-based solutions to
capture CO2 and help the adaptation to physical risks. We implement programmes to protect animal, bird and plant species and we administer near
27,000 hectares of nature sanctuaries and protected areas in the Choapa Province, equivalent to seven times that used by Los Pelambres and its
related installations.
PEACE, JUSTICE AND STRONG INSTITUTIONS

Promote peaceful and inclusive societies
Antofagasta’s activities conform to the UK’s Bribery Act and Modern Slavery Act as well as Chilean Law No 20.393 on bribery and asset laundering.
Our Code of Ethics, Compliance Model and Crime Prevention Manual define how we undertake our business in a responsible, accountable, honest
and transparent manner and we conduct annual training for our teams with higher exposure to risk on these matters. We also work with suppliers
to improve their governance models.
PARTNERSHIPS FOR THE GOALS

Strengthen the means of implementation and revitalise the global partnership for sustainable development
We promote the creation of public-private alliances, benefitting from our partners’ experience and strategies to contribute to the achievement of the
SDGs in the regions where we operate. Our partners include the state, Chilean and international trade associations, other mining companies and/or
industry groups, civil society, academic institutions and NGOs. In particular we use alliances, mostly with local or national foundations, to implement
our social programmes which, in many cases, leverage or complement government programmes.
For more information on these initiatives, see the Safety and Health, People, Communities, Suppliers, Climate Change and Environment sections
of this Stakeholder review.

Strategic Report
/ How we engage with our stakeholders
We have constructive
long-term relationships
with all stakeholders
This is key to delivering our purpose.
Our engagement with stakeholders is open,
transparent and collaborative, to support the
long-term success of our business. We use
appropriate mechanisms to interact with
them, provide them with information
and learn about their interests
and concerns.
OUR PEOPLE COMMUNITIES SUPPLIERS

Approximately 31,000 employees We operate in Chile’s Antofagasta and We work with on average over 1,700
and contractors work at our operations, Coquimbo Regions where our neighbours suppliers, of which 91% are based in Chile.
projects, exploration programmes and include a range of communities around our They provide a broad range of products
corporate offices. They are almost all mines and transport business as well as on and services, from large mining equipment
based in Chile. the coast near our port and desalination to catering and transport.
facilities.
Why we engage Why we engage Why we engage

Constructive relationships, anchored in mutual The wellbeing of local communities is directly Suppliers play a critical role in our ability to
respect and transparency, are crucial for related to the sustainable development and operate sustainably and safely. Through our
a good working environment and talent success of our business. Through a bottom-up engagement with them we seek to improve
retention as well as for productivity and approach to engagement, we seek to grow their sustainability performance and ensure
efficiency. Contractors are essential for together with these communities and they meet our sustainability standards and
operational continuity and, through our contribute to their long-term social and guidelines. We also work with suppliers to
engagement, we seek to transfer knowledge economic development, while taking care ensure that their solutions are cost-effective
and ensure compliance with our own to prevent, mitigate and compensate for any and efficient.
standards, particularly on safety and health. adverse impact our activities may have.
How we engage How we engage How we engage

We regularly engage with our workforce We engage with communities through different The procurement team regularly meets with
through a variety of channels including site social programmes, often implemented in suppliers to discuss upcoming tenders, our
visits by senior management, on-site reviews, alliance with local organisations. Initiatives sustainability requirements and other matters.
surveys of the working environment and are selected and designed jointly with the Tenders take place through an online platform,
individual performance evaluations. We also community, using working groups on specific designed to guarantee fairness and
offer technical training, provide career areas of community development or concerns. transparency. To ensure the broadest possible
opportunities and foster a culture of access to tenders, we use an automated
knowledge. We meet regularly with union invitation system and several different external
representatives and the managers of our platforms. By prioritising local suppliers,
contractors to discuss a range of topics, we seek to foster the development
including environmental, social and of neighbouring communities.
governance.
See P48-50 See P54-56 See P67-69

for more information for more information for more information

S.172(1) STATEMENT • The need to foster the Company’s business
Antofagasta’s purpose is to develop mining for relationships with suppliers, customers
a better future – to achieve this and continue and others
to deliver sustainably, we rely on the support • The impact of the Company’s operations
of a range of different stakeholders. This on the community and the environment
means always putting the safety of our people • The desirability of the Company maintaining
first as we seek to deliver value to our a reputation for high standards of business
customers, suppliers, shareholders and the conduct, and
communities in which we operate. • The need to act fairly as between members
The Directors of Antofagasta plc have acted in of the Company
accordance with their duties to operate in the Section 172 considerations are embedded in
way that they consider, in good faith, is most decision-making at Board level and throughout
likely to promote the success of the Company the Group. In the Strategic Report we outline
for the benefit of its members as a whole, how we engage with our stakeholders to
particularly with regard to the stakeholders create value at our operations. Within the
and matters set out in section 172(1) of the Corporate Governance Report we discuss key
Companies Act 2006, including among decisions that the Board has taken in the year,
other matters: and how stakeholders interests were
• The likely consequences of any decision considered and how we engaged with them.
in the long term See P114-115
• The interests of the Company’s employees for more information
CUSTOMERS SHAREHOLDERS GOVERNMENTS AND

We sell principally to industrial customers, Shareholders are the companies, financial REGULATORS
who further process our copper institutions and individuals that hold a stake Governments and regulators, at national,
concentrate and cathodes. in the Company. They are entitled regional and local levels, draft, implement
to receive dividends and to vote and uphold legislation, rules and
at shareholder meetings, including the regulations, setting the framework within
election of the Company’s directors. which we operate.
Why we engage Why we engage Why we engage

Most sales are made under long-term Shareholders, and particularly institutional Mining is a long-term business and
framework agreements or annual contracts, investors, are constantly evaluating their timescales can run into decades. Political
with sales volumes agreed for the following holdings in the Company and require regular cycles are typically far shorter and material
year. Without these long-term customer information about its strategy, projects and developments and changes to policy,
relationships, we would have to sell a larger performance. We therefore pay special legislation or regulations can have a major
proportion of our cathodes and concentrate attention to our communications with them, impact on our business.
on the spot market through traders, with maintaining fluent and transparent dialogue
greater uncertainty about pricing and volume. to ensure that they are all treated fairly
and receive all relevant information.
How we engage How we engage How we engage

We hold regular meetings with customers We regularly meet with institutional investors We work alongside mining associations and
around the world. Some of our major and brokers’ analysts at industry conferences other industry-related bodies to engage with
customers are also equity holders in our and on roadshows, as well as at one-on-one governments on public policy, laws,
mining operations. The Chairman and several meetings to discuss both business and ESG regulations and procedures that may affect
Directors visit Japan each year to meet some matters. The Board attends the Company’s our business. We interact with governments
of our partners and we have a marketing Annual General Meeting, either physically or and regulators strictly within their engagement
office in Shanghai. virtually, and its members are available to mechanisms. In Chile, these are clearly defined
answer questions. The Company also provides in Law N° 20.730 on lobbying.
regular production and financial reports and
other ad hoc information.
See P70 See P71 See P72

for more information for more information for more information

Strategic Report
/ How we engage with our stakeholders continued
Our people
An inclusive culture that fosters The Group’s People strategy is built around the four pillars of culture,
organisational effectiveness, labour relations and talent management,
wellbeing is key to attracting and and is aligned with the charter of values which is central to our
retaining a diversity of talent. organisation. It seeks to promote an inclusive, innovative, motivated and
effective workforce with access to meaningful training and career
development opportunities.
Wellbeing
At Antofagasta, we believe employee wellbeing is vital to the
effectiveness and sustainability of our organisation and improving
employees’ labour experience is a key focus of our work. In 2021,
we implemented our New Ways of Working project, which introduced
a permanent hybrid system of remote and in-person working in
response to employees’ preferences.
During the year, we finished updating our Work-Life Balance Guidelines,
tailored for each mining site and designed to improve the balance of
employees’ time between work, family and recreational activities. The
guidelines were launched in 2019 and provide benefits that exceed the
requirements of Chilean legislation, such as being able to have a year off
work for health or other reasons. Our corporate offices offer employees
a flexitime system to fit working hours around their individual needs.
31,126 23%
Employees
People
20%
Women employees
77%
Contractors
77%
Unionised
employees

We also rolled out our Wellbeing Strategy, which focuses on our Gender balance
employees’ physical, emotional, financial and social welfare. The strategy In 2022, we increased the proportion of our female employees to
builds on the tools we developed to help employees deal with increased 20.4%, compared to 17.2% in 2021, meeting our goal for the year.
stress levels during the COVID-19 pandemic lockdowns and it aims This continues our steady improvement since 2018, when we set
to promote healthy habits and closer ties among colleagues and with a target to double women’s participation by the end of 2022, compared
wider society. to a baseline of 8.6% in 2017. We met that target a year early in 2021,
and have now set a new gender diversity goal for women to represent
As part of the strategy, we promoted our 24-hour helpline and
30% of employees by 2025. By comparison, women comprise 15.2%
encouraged in-person meetings and activities, allowing new recruits
of the mining industry workforce in Chile.
to meet fellow workers and strengthen interpersonal relations and
teamwork. The initiative encourages healthy habits and preventive health Women as a percentage of employees1
checks, and offers financial education to improve employees’ Year 2018 2019 2020 2021 2022
understanding of subjects such as health insurance.
Total number
The social pillar particularly seeks to foster a collaborative and of employees 6,481 6,663 6,760 7,081 7,494
supportive workplace through the Volunteering Programme, now in its Women 8.8% 10.4% 14.7% 17.2% 20.4%
second year. Employees at each mining operation and the corporate
offices are encouraged to brainstorm, select and take part in a volunteer 1. As at year end
project in the local community. A total of 70 employees took part in our Female representation in management
first volunteering programme, which ended in April 2022, benefitting Directly reports
261 people. Executive to the Executive Senior
Committee Committee Management1
Diversity and Inclusion Male 9 82% 57 80% 19 86%
Our Diversity and Inclusion (D&I) Strategy, launched in 2018, has Female 2 18% 14 20% 3 14%
transitioned from an awareness-raising phase about unconscious bias
and discrimination to inclusive practices becoming an integral part 1. Includes directors of subsidiaries as defined in The Companies Act 2006 (Strategic
Report and Directors’ Report) Regulations 2013
of how we work.
We use many different ways to attract, select and retain women in the
In 2022, we renewed our network of more than 80 D&I champions, workforce. For example, if a woman is on the shortlist for a position
who act as agents of change to create an inclusive organisational and a male candidate is selected, the decision must be justified. We have
culture that supports the retention of women and people with disabilities strong alliances with universities, aiming to encourage women studying
or different cultural origins. In a key initiative, we ran a campaign on science, technology, engineering and maths (STEM) subjects to join the
respectful behaviours and held workshops on respectful environments. Group and increase female participation in STEM subjects through our
Other activities included webinars on Chile’s same-sex marriage and scholarship programmes.
gender equality laws and, using a protocol approved in 2021, supporting
any employees in the process of gender transition. Our apprenticeship programmes provide an important entry route for
women from local communities to obtain technical qualifications and,
in most cases, lead to a highly prized permanent job. In 2022, our
Transport division and mining operations selected 233 new apprentices,
of whom 81% were women, mainly from communities close to our
operations.
People with disabilities
In 2022, people with disabilities accounted for 1.3% of our employees,
above the level required by Chile’s Workplace Inclusion Law.
We continued to lead the Mining Council’s technical working group
on universal access for people with disabilities to mine sites and
a regulation on the topic was updated during the year.

Strategic Report
Building human capital Labour relations

At Antofagasta, we seek to develop our employees as well as potential At Antofagasta, we recognise employees’ rights to union membership
candidates in the local communities where we focus our recruitment and collective bargaining. In total, 77% of our employees are represented
efforts. In 2022, 72% of our employees lived in the Antofagasta and by 16 unions: 11 in the Mining division and five in the Transport division.
Coquimbo Regions where our operations are located.
In 2022, we successfully negotiated four three-year labour agreements
We invested $2.3 million in training in 2022, providing an average in a climate of respect and without disruptions. Agreements were
of 45 hours of training per employee. reached with the supervisors’ unions at Los Pelambres and Zaldívar,
and the supervisors’ and operators’ unions at Antucoya.
Leadership skills
We trained shift leaders, providing information and tools to improve their Chilean legislation protects freedom of association. It also prohibits
leadership skills, to learn about labour law and to think more flexibly. forced and child labour, sets a minimum wage, limits working hours,
Their positions are pivotal operational roles, overseeing up to 100 people, and enforces a minimum of 15 days of annual paid leave.
and by the end of the year, 65% of them had participated in the
Our employees and contractors can make complaints or raise issues
programme.
on our confidential Tu Voz (Your Voice) reporting line. The contact
As part of our D&I strategy, a total of 70 women from executive, details are available on our website as well as directly at the
supervisor and operator positions continued with career development operations. We have reinforced our contractors’ awareness of this
and leadership programmes during the year. In November, we began whistleblowing channel.
a new programme to strengthen the leadership skills of 30 deputy
In 2022, our Mining division conducted an Engagement and Perception
managers and superintendents in line with our Leadership
Survey at Los Pelambres, Centinela and Zaldívar to assess employee
Competencies Model.
satisfaction, thus completing a process that started in 2021 at Antucoya
Digital transformation and our corporate offices. In total 91% of employees responded,
More than 40 operators and supervisors were retrained to operate expressing high levels of satisfaction with the organisation’s safety and
Centinela’s Integrated Remote Operations Centre (IROC), which went live health and D&I strategies. Action plans have been developed to address
in December 2021, and the Los Pelambres IROC, where a small group gaps, such as the need for more collaborative environments.
began working in August 2022. Employees at these mining operations
also received training on the use of autonomous equipment such as drill Contractors
rigs and, in the case of Centinela, a fleet of trucks at the new Esperanza Contractors represent 77% of our workforce and are crucial to
Sur pit. operational continuity. In 2022, we required contractors to pay their
employees an ethical gross monthly minimum wage, 38% higher than
In 2022, 673 employees took courses on data-based decision-making the minimum wage established by Chilean law, and to provide them with
and basic digital literacy as part of our Digital Academy, which aims to health and life insurance. Los Pelambres and Centinela also support the
develop the skills necessary for our Digital Transformation programme. further education of contractor workers’ children.
Developing new talent In 2022, the human resources area began an audit of contractors’
In 2022, Los Pelambres and Antucoya ran Relevos (Relief Workers) compliance with minimum and legal labour standards, including
programmes, training local people unable to work full shifts due to family meeting Antofagasta’s ethical minimum wage. The process will be
or other reasons to drive mine haulage trucks to cover lunch breaks. completed in 2023.
We also run graduate programmes to provide a talent pool for executive See P67-69 in Suppliers
positions. In 2022, we expanded the criteria and the number of places to for more information
give opportunities to young people in the Choapa Province. Similarly, we
offer openings for local technical school pupils and university students to
do internships or professional work placements at our operations.

Safety and
occupational health
The safety and health of our employees,

contractors and nearby communities are
non-negotiable and our number one priority.
35%
fewer High Potential Incidents than in 2021
We continuously seek to improve our performance in this area,

with a particular focus on the early identification of risks and the
permanent elimination of fatalities and occupational illnesses at
all our operations.
Strategy
Our Safety and Occupational Health Strategy is based on four pillars:
safety and occupational health risk management; reporting, investigating
and learning from our accidents; leadership; and contractor
management. The robust management of safety and occupational health
underlies all our activities, through which we are committed to
continuous improvement, controlling risks and monitoring performance.
We seek to be recognised as a leading Company in safety and
occupational health whose employees and contractors promote and
maintain a safe and healthy work environment.
Safety performance
In 2022, there were no fatalities in the Group.
We continued to reduce the number of High Potential Incidents (HPIs),
recording 35% less than in 2021, due to improvements at our Mining
and Transport divisions. We focus on HPIs as leading indicators of the
effectiveness of safety controls to continuously strengthen critical
controls. HPI targets are included as a key performance indicator
in employees’ Performance Agreements to promote and reinforce
a preventive and resilient safety culture.

Strategic Report
We seek to keep our Group Lost Time Injury Frequency Rate (LTIFR) In 2022, we investigated deviations to critical controls and implemented
below a score of 1. In 2022, the Mining division achieved 0.76, 32% corrective measures, building on previous campaigns to raise awareness
better than 2021, while the overall Group scored 0.84, a 37% on the use of control strategies and understanding of how critical
improvement. This was due to strengthened Control Strategies controls are verified. This focus will continue into 2023 to ensure that
for high-risk tasks (see “Critical Controls” section below). corrective measures are taken every time a Yo Digo No is activated.
Safety risk management Occupational health risk management
Critical controls Antofagasta is committed to providing a healthy workplace and
20 July 2021 marked one year since the death of contractor worker contributing to the physical and mental wellbeing of everyone who
Fernando Silva López at Los Pelambres. As a mark of respect, works for us. In 2022, we continued to improve the application of critical
safety-related reflection breaks were held at all our operations controls for health risks and high potential health events and registered
to reinforce the lessons learned. an occupational illness frequency rate of 2.09 per million hours worked.
Following the detailed analysis of that tragic incident, we focused on During the pandemic, our efforts to control the spread of COVID-19
improving our planning, analysis and supervision of critical tasks. We allowed us to maintain operational continuity while protecting the health
implemented programmes for supervisors to better understand their of our workers.
roles and responsibilities with regard to planning, shift changes, work
Once COVID was contained, we were able to reassign resources to
crews and their obligation to confirm that tasks are executed according
implement a Surveillance Programme to protect our workforce against
to plan, particularly high-risk and critical ones. We also defined and
other health risks. In cases of early detection of hearing loss, for
deployed the task risk analysis system, Planned Task Risk Assessment
example, corrective action is taken and the worker is removed from the
(PTRA), to plan high-risk and critical tasks. This tool has been design
risk, with job reassignment to prevent further decline. Additionally, as a
to ensure supervisors and crews are always planning and executing
continuous improvement initiative, we study the origin of the risk and
safe working practices of routine and non routine high risk tasks. The
implement mitigation measures to prevent other workers from exposure.
PTRA, ensures the key tools and equipment, standard and critical
controls are always present and describes the step by step Psychosocial risks
standardised working practice. In 2022, we launched our Control Strategy for psychosocial risks, which
increased during the COVID-19 pandemic. Thanks to this strategy, we
The PTRA system emphasises a preventative culture, including
identified five employees with temporary mental health issues and
operational continuity without fatal accidents, the reduction of
provided treatment for them to prevent the illness from becoming a
occupational illness and the minimising of workers’ exposure to high-risk
chronic condition.
situations. It also emphasises self-care. If at any point workers perceive
that adequate working conditions, as outlined in the PTRA, are not being We have a confidential 24x7 helpline for employees and contractors
met, they should employ the “Yo Digo No” (I Say No) tool and stop seeking help for mental health issues.
working until the proper conditions can be verified.
Threats to security
There are now 13 critical activities addressed by the PRTA in the Safety In 2022, there were seven cases of copper theft from our Transport
and Occupational Health’s digital library. division’s trains and trucks, three more than in 2021. There has been an
In 2022, the Mining division began to install the latest generation collision increase in the violence used in the robberies, which are now more
avoidance system in its transport equipment, as well as in that of its confrontational, with the use of weapons and threats that put our
contractors and subcontractors. Full implementation is expected by the employees’ physical and psychological safety at risk.
first quarter of 2023, with the system alerting the driver of the vehicle or As a result, our Transport division has strengthened measures to protect
equipment when it detects imminent danger. its personnel, equipment and cargo. A senior industrial protection expert
Visible leadership has developed a preventative strategy, involving local authorities and the
Leadership is a key driver for improving safety performance and the police, to address the new security situation. The division also takes part
Executive Committee conducts regular on-site safety and health reviews in a new intersectoral industrial safety working group that has been
to engage with employees and contractors. Action plans are followed by established to focus on these challenges. It is important to note the role
every site on each of four key areas: safety culture, safety management that the government has played in working together with the industry to
systems and processes, available safety tools and contractor address this issue.
management. In 2022, we focused on in-field controls. Contractor management
Supervision of occupational health is embedded within the operating Our contractors and subcontractors are included in our safety and
model and throughout the whole system of controls. health performance data and must fully comply with our standards and
procedures. In 2022, we placed special emphasis on the effectiveness
Investigations
of our Special Corporate Health and Safety Regulation for Contractor
Investigation teams independent of the area involved in the incident,
and Subcontractor Companies (RECSS), continuing to embed this
often involving representatives from other sites, look into all HPI
updated contractor management manual across the organisation to
incidents. Findings are shared across the entire organisation and used
ensure an adequate understanding of our requirements and supervision
to close any identified risk management gaps.
of contractor tasks.

Safety Indicators
Number of fatalities
2022 2021 2020 2019 2018
Chilean mining industry N/A4 N/A4 13 14 16

Mining division 0 1 0 0 1
Transport division 0 0 0 0 0
Group 0 1 0 0 1
Lost Time Injury Frequency Rate (LTIFR)1

Chilean mining industry N/A4 N/A4 1.41 1.54 1.65
Mining division 0.76 1.12 0.73 0.75 1.10
Transport division 2.15 4.60 2.37 4.03 6.66
Group 0.84 1.34 0.86 1.01 1.59
Total Recordable Injury Frequency Rate (TRIFR)2

Mining division 0.37 0.46 0.55 0.54
Transport division 1.00 1.45 1.51 1.71
Group 0.41 0.52 0.63 0.63
Occupational Illness Frequency Rate (OIFR)3

Mining division 2.26 0.18 0.00 0.29 0.39
Transport division 1.40 0.00 0.00 1.30 0.34
Group 2.09 0.14 0.00 0.52 0.38
1. Number of accidents with lost time during the year per million hours worked.
2. Number of accidents in the year with and without lost time per 200,000 hours worked.
3. Number of occupational illnesses during the year per million hours worked. Amended method of calculation. All prior years adjusted for consistency. Our OIFR increased
significantly in 2022 as we identified those whose medical conditions had changed or had developed occupational illnesses during the two years of the pandemic that was not
adequately treated.
4. Not available.

Strategic Report
Communities
We seek to foster economic and social At Antofagasta, we aim to contribute to social value creation in the
regions where we operate through education and training initiatives,
development in local communities through job creation and social investment that addresses the needs of local
proactive engagement and investment, communities. A commitment to respect human rights underlines
and in collaboration with local people, our interactions.
organisations and authorities. Social management model
Our Social Management Model is designed to ensure that our
engagement principles, methodologies and practices are applied
consistently across our operations. It has four components: Engagement,
Initiative Management, Impact Measurement and Socio-Territorial Alert
Management, each with a corresponding standard.
Impact measurement
In 2022, in partnership with external impact advisers, we dedicated
extra resources to measuring the impact of our investments in our areas
of influence, as we strive to evaluate our programmes and improve their
performance.
$57.4 m
Economic Social
Investment in 2022

“We launched a LinkedIn Learning
platform to teach digital skills to
60 students, entrepreneurs and
suppliers in our areas of influence.”
We measured the impact of six programmes, two in the Antofagasta
Region and four in the Choapa Province, using the Change Theory and
Social Return on Investment (SROI) tools. In addition, we measured the
process to initiate the Caimanes Development Fund. All showed a
positive SROI, indicating that they create social value.
The Adolfo Ibañez University updated its Territorial Human Wellbeing
Matrix, measuring the impact of Los Pelambres’ social investment
initiatives in the Choapa Province. The study measured 22 indicators,
such as access to green areas, sports, education and health services, and
found that 75 of the initiatives improved urban and rural living conditions
by providing better access to services and reaching more recipients.
In 2023, we expect to complete a study that maps all our social
investment projects against the UN Sustainable Development Goals.
For further information, see our 2022 Sustainability Report.
Grievance mechanism
In March, we launched a new community grievance mechanism to
report concerns, complaints or grievances caused by our operations in
neighbouring communities. Grievances can be expressed confidentially In September, in alliance with La Serena University, we launched a
and tracked on the community grievance channel to monitor progress 30-month project to digitalise the 80 Rural Sanitary Services (SSRs)
on their resolution. There is a 30-day deadline to answer grievances, that provide water to homes in the Choapa Province. The initiative
except in unusually complex cases. involves designing a telemetry and big data system to automate and
Indigenous Peoples optimise water management, enabling the integrated management of the
In 2022, we updated our Human Rights Policy to strengthen our explicit water basin in this drought-stricken area. The local volunteers who run
recognition and commitment to respect indigenous peoples’ rights, the SSRs will be trained to use the technology.
culture and traditions and we approved an Indigenous Peoples Similarly, in October we opened a pharmacy in María Elena in the
Engagement Standard. Relations with indigenous peoples are aligned Antofagasta Region, in alliance with the pharmacy startup Fracción and
with local legislation, ILO Convention 169 and the guidelines of the the municipality. It serves as a distribution centre for the surrounding
International Council on Mining and Metals (ICMM). area and allows locals to buy low-cost medicine in person or online,
without travelling long distances to the nearest cities. The aim is to
Social investment
follow up with a telemedicine centre, an initiative we are also developing
We use a multi-stakeholder, open dialogue engagement approach to
for Chillepín’s primary health centre in Choapa.
ensure that local communities participate in the selection of our social
investment projects through our Somos Choapa (We are Choapa) and En Red is underpinned by a focus on digital literacy and in 2022 we
Diálogos para el Desarrollo (Dialogues for Development) engagement launched a LinkedIn Learning platform to teach digital skills to 60
mechanisms in the Choapa Province and the Antofagasta Region scholarship students, entrepreneurs and suppliers in our areas of
respectively. Projects and programmes are usually implemented in influence. Likewise, 80 small businesses in the tourism sector in Choapa
alliance with third parties, such as organisations and state institutions. benefited from a pilot programme to use platforms such as booking.com
to grow their business.
In 2022, following the Somos Choapa model, we increased our social
investment budget to cover new agreements with communities in the Combatting drought
Choapa Province to address specific operational incidents (see page 58 In 2022, we stepped up efforts to ensure continuous water availability
Environment) and the 2022 Sustainability Report). for human consumption and irrigation in the drought stricken Choapa
2022 Province, through our Aproxima and Confluye programmes. Among
other measures, we took advantage of heavier than usual snowfall to
Mining division $56.8m
fund the construction of two artificial ponds to capture snowmelt in the
Transport division $0.6m Spring and relined 54.9 km of irrigation canals to reduce water losses
Total social investment $57.4m (see En Red programme above).
Economic development
Digital transformation
Centinela’s “new way of operating” plan seeks to reduce contractors’
In 2022, we ramped up our En Red-Digital Community programme,
use of mine camps and to house them in the near-by town of Sierra
comprising more than 20 initiatives to address the deficit of digital
Gorda. This builds on the success of our Safe Return Plan that allowed
infrastructure and skills in rural and underprivileged communities near
the town’s hospitality sector to reopen after the COVID-19 pandemic.
our operations.
Almost 50 hostels have met the required safety standards, enabling up
One of the year’s highlights was the installation of fibre-optic cables to to 1,000 contractor employees to stay in Sierra Gorda, significantly
the Caimanes and Limahuida communities in Choapa, allowing over 500 boosting the local services sector.
families the opportunity to connect to the internet. Both communities
also received digital literacy training from partners in the programme.

Strategic Report
160+
young people from
Choapa were offered
apprenticeships in 2022
In the Choapa Province, we run various programmes to support local

entrepreneurs, micro and small businesses, and farmers. Among 2022’s
highlights was the Integral Support for Agriculture (AIA) programme,
which awarded 360 grants to farmers in the Salamanca area to
increase yields and improve irrigation. In addition, the Cosecha initiative
provided training and funding to boost the competitiveness of 129 small
farmers, craftworkers and tourism entrepreneurs in Salamanca and
Canela districts.
Cultural heritage
Our Transport division owns some of the city of Antofagasta’s most
In the Antofagasta Region, these efforts form part of the Antofagasta
historic buildings and is keen to preserve the city’s cultural heritage,
Mining Cluster Corporation, a public-private initiative that seeks to
support local tourism and improve the city’s life quality. In 2022, as part
stimulate the region’s economic development and through which we have
of these efforts, the disused railway station Estación Valdivia was
committed to building human capital and developing innovative suppliers.
declared a national heritage site and the adjoining railyard a “typical
area” by the National Heritage Council and we are working with the Under this framework, we provided over 800 scholarships for local
council and community on a restoration plan. school and university students in 2022, among other education
initiatives.
We also began planning the conversion of a nine-hectare railyard, the
administration offices and the former colonial homes of the division’s We also work with local suppliers to enhance their capabilities and
executives into a heritage neighbourhood area, with green spaces and opportunities to provide us with goods and services (see page 67-69
a pedestrian walkway. The project forms part of a broader plan to Suppliers). Likewise, we encourage national and international suppliers
vacate all the division’s railyards in the city and prepare them for urban to post jobs on the new regional job portal in order to boost local
development. employment.
Building local skills In the Choapa Province, we awarded 887 scholarships to young people
We seek to stimulate the generation of economic, social and human undertaking technical or university studies in 2022, almost twice as
capital in the regions where we operate by promoting local employment, many as those given in 2021. Work also continued with Education 2020,
supporting local suppliers and offering education and training an NGO, to support 18 schools to implement project-based learning
opportunities. In 2022, 72% of our employees were from the techniques, benefitting 192 teachers and 2,158 pupils. We also support
Antofagasta and Coquimbo Regions, where our operations are based. the province’s five technical-professional schools to strengthen links
with local companies and higher education centres.
The apprenticeship programmes offered by our Transport division and
four mining operations are a key vehicle for this commitment. In 2022, Los Pelambres’ employment programme has trained 2,885 people
over 230 young people from these regions, mainly women, were from Choapa since 2015, mainly in mining trades but also in the services
accepted as apprentice engine drivers, maintenance workers and truck sector and in self-employment. The programme has a jobs’ portal for
drivers, or in plant, tailings and port roles. Most apprentices will be contractor companies to post vacancies and, in 2022, 48% of their
offered permanent jobs at the end of the programme. employees came from the province.
Antucoya and Los Pelambres also initiated Relevos (Relief Workers), In 2022, we opened places on our young graduates’ programme to
a programme under which people who live near the operations are university leavers from Choapa Province. Two were accepted onto
trained to drive mine trucks to cover breaks during shifts. It is aimed Antofagasta’s corporate programme in December 2022 and eight
at people who cannot work a full shift, frequently for family reasons. took on roles at Los Pelambres in January 2023.
In another example, 35 technical secondary school pupils did their

internships at Antucoya under the Eleva programme, a public-private
partnership that seeks to improve technical training and young people’s
job prospects.

Environment
At Antofagasta, we recognise that we have

a responsibility towards our stakeholders
and the environment in which we operate.
48,000
native trees being planted
We believe it is possible to mine sustainably by Los Pelambres
by prioritising environmental protection
and the efficient use of natural resources.
Our Environmental Management Model covers leadership, operational
events reporting, operating risk management and regulatory risk
management. It seeks to prevent, control and mitigate the impacts we
may have on the environment and, if there is an impact, to compensate
for it appropriately. In 2022, we focused on regulatory risk, reviewing
environmental requirements and auditing our operations. We report our
environmental performance monthly to the Executive Committee and
twice a year to the Board’s Sustainability and Stakeholder Management
Committee.
The Internal Audit area performed environmental audits on all our
operations in 2022. These were to verify their state of compliance with
environmental requirements and the measures committed to by our
operations within the framework of their environmental permits. No
significant negative findings were reported.
Environmental compliance
In Chile, large-scale projects are subject to strict environmental and
social impact assessments by the Environmental Evaluation Service
(SEA), in order to obtain a Resolution of Environmental Approval (RCA).
These RCAs include legally binding commitments on matters related to
the prevention and mitigation of the project’s impact on the environment
and any necessary compensation measures. Compliance with
commitments is verified by the Superintendency for the
Environment (SMA).

Strategic Report
Antofagasta has a total of 77 RCAs, which include over 10,000

commitments on matters such as water use, air quality, biodiversity
and the projects’ construction, operation and closure. In 2022, the
Group obtained no new RCAs. The SEA is currently reviewing the
Environmental Impact Assessment (EIA) for the second phase of the
Los Pelambres Expansion project, which includes doubling the capacity
of the desalination plant near Los Vilos to 800 l/s, and the installation
of a new concentrate transportation system, which will avoid
populated areas.
In 2022, the Transport division received all the permits and completed
engineering studies to allow it to remediate 48 hectares of soil in its
railyard in the city of Antofagasta. Work is scheduled to start in the
second half of 2023 and is an important step in the division’s plans
to move its operations out of the city centre.
Reporting on operational events with environmental consequences
Operational events with environmental consequences are classified
as Actual (high, medium or low) or Potential (high or low) if they could
have caused an incident. Actual high or medium severity incidents are
investigated by a committee established specifically for this purpose. Tailings
Our mining operations have three main tailings storage facilities (TSFs):
Under the criteria established in the environmental assessment of
Los Pelambres’ conventional tailings dams at El Mauro and Los Quillayes
each operation or project, 29 events with no severe environmental
(no longer in regular use) and a thickened tailings deposit at Centinela.
consequences were reported to the SMA. Of those events, two were
Zaldívar has a small TSF as it produces a small amount of concentrates.
high-profile operational incidents:
We have an Independent Tailings Review Board for the three main TSFs
• On 31 May, a leak was detected from the Los Pelambres concentrate
and their stability and compliance were once again confirmed under
pipeline in the Llimpo sector in the Salamanca municipal district.
international criteria in 2022.
A thorough review detected no material environmental impact and
the pipeline resumed operations on 26 June after approval from the During 2022, we continued with our implementation of the Global
relevant local regulator. Industry Standard on Tailings Management (GISTM) and are on schedule
• On 15 August, unusually high sea swells overturned a construction to complete it at Los Pelambres by August 2023 at Centinela by
platform at the marine works of Los Pelambres’ desalination plant December 2023 and Zaldívar by August 2025. We are strengthening
project, and marine works were temporarily halted pending the our governance of TSF management and are also reinforcing our social
recovery of lost equipment and materials from the seabed. Since the and environmental controls to comply with the standard’s main focus of
event, to date the SMA-accredited laboratory has found no trace of zero environmental and social damage.
contamination. The marine works resumed on 4 October and are Consistent with the GISTM’s focus on transparency, El Mauro continued
expected to be completed in the first half of 2023. to serve as a pilot for Programa Tranque (Tailings Programme),
Responsible production a public-private initiative managed by Fundación Chile, a Santiago-based
Sustainability practices at our four mining operations have been assured technology transfer institute, to develop an online system for monitoring
by the Copper Mark, a global standard which demonstrates that the a TSF’s physical and chemical stability, with an end-goal of applying this
operation produces copper according to the best international monitoring to all TSFs in Chile. The pilot is scheduled for completion
sustainability standards – in 2021 at Centinela and Zaldívar, and in 2022 in 2023.
at Antucoya and Los Pelambres. Under the Copper Mark, operations We have also improved production rates and compaction of sand in the
commit to renew the assurance process every three years. El Mauro TSF wall. In 2021, rates were approximately 300,000 tonnes
In 2022, we also submitted updated information to renew our per month and, in 2022, this was raised to 450,000 tonnes, further
registration with LMEpassport, the sustainability credentials register increasing the TSF’s stability.
of the London Metal Exchange (LME), including an executive summary At Centinela’s TSF, we began increasing the height of the raise, with
of the Copper Mark, which is recognised by the LME. completion expected during the first half of 2024. We also improved the
As members of the International Council on Mining and Metals (ICMM), stability of the tailings thickening process, where the percentage of solids
our four mining sites underwent independent audits on their compliance sent to the TSF remained above 66%. Each percentage point of solids
with the ICMM’s Mining Principles Performance Expectations. The ICMM represents a saving of some 30–40 l/s of water.
has assessed the equivalency of its 38 Performance Expectations In 2022, we completed the feasibility studies for an innovative project
against the Copper Mark and, therefore, the process focused on those to store tailings in abandoned mine pits at Centinela, which would
not covered (six) or only partially covered (nine) by the Copper Mark. complement the operation’s thickened tailings deposit. The Declaration
All our sites complied with the Performance Expectations. of Environmental Impact (DIA) was approved in 2021 and further
The assurance process ensures that ICMM’s 27 member companies engineering studies are underway. In-pit storage has safety and
are being held to the same high standards and will be repeated every environmental advantages compared to conventional TSFs and would
three years. extend the life of Centinela’s current TSF.

Air quality
All our operations have robust programmes to control dust emissions SMART ROAD INITIATIVE
(PM10 and 2.5). They are monitored constantly, in some cases with In 2022, Centinela piloted an initiative to reduce dust levels at the
the participation of the local community. In addition, air quality data is Esperanza Sur pit, leading to a 30% reduction in particulate matter
regularly reported to the regional authorities. emissions and better management of water resources. Levels of
In 2022 there were no incidents of dust visibility or expressions of particulate matter are monitored online using dust control devices
concern from communities near Los Pelambres regarding dust from the installed on haulage trucks and a centralised system identifies
mine itself or the El Mauro TSF. Coupled with more favourable climatic where the most critical areas are and assigns tanker trucks to
conditions, this was the result of a series of additional voluntary controls irrigate them.
implemented at the TSF. These measures have been verified on site by
a committee representing the neighbouring Caimanes community.
Circular economy
At the mine, an interdisciplinary working group examined the
We have approved our new Circular Economy Strategy which will be
phenomenon of climate change (including drought and wind pattern
implemented in 2023. The Strategy has three pillars: reduction in the
intensification) to produce hard data with which to review existing
use of resources, expanding the lifecycle of material and equipment, and
measures and consider others that could be implemented, and to adjust
conversion of waste into new resources. For the Procurement area, this
our preventive model accordingly.
will involve issues such as packaging, pallets and the logistics of goods
At the Quillayes TSF, Los Pelambres is planting 48,000 native trees and transportation, as well as the potential reuse of products such as tyres
shrubs on the 300 hectares site, of which 120 hectares have been and steel.
planted so far. The vegetation requires little irrigation, easily adapts to
Mine closure
extreme environments and serves to control particulate material events
As required under Chilean law, all our operations have closure plans
while blending the dam with its surroundings.
approved by the Chilean government’s National Geology and Mining
Biodiversity Service (SERNAGEOMIN). In addition, we have our own more
Our Sustainability Policy provides the framework to position biodiversity demanding Integrated Mine Closure Standard. In 2022, we updated this
stewardship throughout the mining cycle. standard to incorporate guidelines from our Biodiversity and Climate
In 2022, we updated our Biodiversity Standard as part of the Change Standards as well as our Tailings Policy, all of which are aligned
implementation of our Climate Change Strategy and to improve its with the ICMM’s Integrated Mine Closure–Good Practice Guide.
alignment with the position statement from the ICMM on Mining and In 2022, SERNAGEOMIN approved Antucoya’s five-year update of its
Protected Areas. Under this standard, we seek to promote the closure plan and the update of Centinela’s closure plan, which
generation of net gains in biodiversity. This includes avoiding and incorporates new facilities installed at the operation.
minimising our impact on biodiversity and mitigating and compensating
for any impact that does occur to ensure a net zero loss of biodiversity.
In addition to managing four nature sanctuaries and other extensive
protected areas, our activities encompass protecting species and
outreach and research initiatives.

Strategic Report
Climate change
Our Climate Change Strategy sets ambitious Climate change scenario analysis
In 2022, Antofagasta enhanced its understanding of the financial impact
goals not only for emissions and water use, of the physical risks of climate change by considering a ‘middle of the
but also to build the resilience of our road’ climate change scenario analysis known as SSP2-4.5.1 This
operations and their areas of influence. scenario takes advantage of the latest generation climate models
(CMIP-6) and is considered an intermediate scenario where emissions
As a Group, we recognise climate change as one of the world’s greatest peak in around 2040 and then decline, leading to warming by 2100 of
challenges and acknowledge that we are part of the solution. As a 2.5 to 3°C compared to pre-industrial temperatures. This scenario aligns
copper producer, we supply an input that is critical for low-carbon with the path implied by current policies that are in place.
technologies and, at the same time, we are working to decarbonise our
operations, putting climate change at the heart of how we manage To better understand how physical climate changes could impact our
our business. business, we have focused on particular climate change vectors such
as higher temperatures, water stress, extreme rainfall events, conditions
Our Climate Change Strategy is central to our overall Group Strategy. that generate particulate matter, storm surges and wave events.
It sets the framework to co-ordinate and realise synergies among the Each of our operations analysed the potential effect of these factors
Group’s many initiatives to mitigate and adapt to a changing climate, on their production, cost performance, and the cost of adaptation
according to its five pillars: development of resilience to climate change, measures and control options.
reduction of greenhouse gas emissions, efficient use of strategic
resources, management of the environment and biodiversity, and To understand the financial impact of transition risks, we continue
integration of stakeholders. For each pillar, different areas of action to use the International Energy Agency’s Sustainable Development
have been identified, accompanied by a plan of short-medium-and Scenario (IEA’s SDS), an ambitious and widely recognised scenario
long-term measures. that provides a global view and context on a low-carbon transition.
In the IEA’s SDS, fossil fuel prices decline due to low demand and
The Board of Directors has ultimate responsibility for the Group’s lower costs are offset by the introduction of carbon taxes to encourage
climate-related objectives and strategy, integrating a deeper awareness the low-carbon transition. In alignment with this scenario, we have
of climate change into our decision-making processes. It has recognised quantified the financial impact of the introduction of a carbon tax,
climate change as one of the principal risks facing the Group and defined including an analysis of core measures to decarbonise our mining
its risk appetite accordingly. In its oversight of climate-related matters, operations and identifying cost efficient opportunities.
the Board is assisted by its Sustainability and Stakeholder Management
Committee, Audit and Risk Committee and Remuneration and Talent To align the potential impact of both physical and transition risks to the
Management Committee. A corporate Climate Change Committee, lifetime and planning cycle of our mining operations, we defined short
formed in 2021, advises the Environment team and meets fortnightly term as 0–5 years, medium term as 5–15 years and long term as
to review advances and consider issues that may be adopted for 15–50 years.
future implementation, such as nature-based solutions. Once the risks and opportunities were identified the most material risks
Carbon emissions are linked to a proportion of our executives’ and opportunities were screened and quantified at an operational level,
long- and short-term performance incentives, as well as to the their financial impact was estimated using assumptions from these
annual performance incentive for employees (see pages 156 and 158). scenarios. We also assessed the financial impact of climate change
across the lifetime of each mine and for a 25-year period for the
In 2019, we committed to implementing the recommendations of the Transport division see page 66.
Task Force on Climate-related Financial Disclosures (TCFD), and
disclosed against these recommendations for the first time in our 2021 Climate scenario analysis was used to better understand and assess the
Annual Report. likelihood and impact of risks and opportunities and was integrated into
our risk assessment processes using ISO 31000 and best practice
Our metrics and targets are aligned with the TCFD’s seven cross- methodology (Bow Tie which considers cause, consequences and
industry climate-related metric categories, including for GHG emissions controls). The estimated financial impact on operating costs and capital
and internal carbon prices. We also report in our Climate Scenario expenditure was calculated against three views: 1) no mitigation or
Analysis the potential financial impact of the transition and physical risks adaptation, 2) controls already in place, and 3) plans and actions
(see page 66), and our investment related to mitigation and adaptation, implemented in the future. In 2023 we plan to improve our climate
which includes the construction of a desalination plant at Los Pelambres. change risk management by determining the levels at which particular
We are also considering how to reflect the benefits that come from climate risks would trigger us taking preventative actions.
copper’s use in applications, such as renewable power and electric
vehicles, that make a significant contribution to reducing global GHG
emissions, and which are also expected to be reflected in an increase
in the copper price. However, the correlation between decarbonisation
and the copper price is difficult to model.
1. A Shared Socioeconomic Pathway scenario used by the Intergovernmental Panel on Climate Change (IPCC) in its 2021 Sixth Assessment Report.

Greenhouse gas emissions and climate metrics
At Antofagasta, we recognise our responsibility for upstream and
downstream emissions and have proactively adopted measures to
42%
mitigate the carbon footprint of our operations. We achieved our first reduction in Scope 1 and 2 emissions since 2020
Scope 1 and 2 emissions reduction target set in 2018 two years early
in 2020. We use our Scope 1 and 2 emissions profile and emissions intensity
In 2021, we set more ambitious targets: to reduce our Scope 1 and 2 (tCO2e /tCu) to monitor our exposure to our most material transition
emissions by 30% by 2025 compared to the 2020 baseline, equivalent risks related to power supply and diesel consumption. We also track and
to a reduction of 730,000 tCO2e, and to achieve carbon neutrality by monitor several other environmental indicators, the most important of
2050 or earlier, technology permitting. However, since April 2022 all which is measuring our water withdrawal. This helps us manage water
our electricity contracts have been for renewable energy, reducing our security risks at our operations and in our local communities, and drives
Scope 2 emissions to almost zero and allowing us to achieve our 30% us to reduce our reliance on continental sources.
reduction commitment three years earlier than anticipated. During 2023,
we will establish a new medium-term emission reduction goal for 2030.
In 2022, we began working on a decarbonisation plan for all our
operations, defining the baselines, the truck replacement plan, energy
input projections and the assumptions for current and future
technologies. The final plan will set out the steps needed to achieve
carbon neutrality by 2050.
Operational CO2e emissions (tCO2e)1, 2

Corporate Offices Transport
(Santiago and Mining division
Los Pelambres Centinela Zaldívar Antucoya London) division (FCAB) Total
Scope 1
Direct emissions
2022 250,545 529,075 128,440 205,332 189 1,113,581 91,068 1,204,649
2021 226,199 439,484 156,500 165,641 124 987,948 90,778 1,078,726
2020 257,801 492,496 152,340 152,577 108 1,055,322 88,936 1,144,258
Scope 23, 4
Indirect emissions
2022 93,142 1,634 0 0 460 95,236 717 95,953
2021 286,848 556,616 0 124,467 894 968,825 823 969,648
2020 334,376 542,020 86,563 120,087 603 1,083,649 858 1,084,507
Total emissions
(Scope 1 and Scope 2)
2022 343,687 530,709 128,440 205,332 649 1,208,817 91,785 1,300,602
2021 513,047 996,100 156,500 290,108 1,018 1,956,773 91,601 2,048,374
2020 592,177 1,034,516 238,903 272,664 711 2,138,971 89,794 2,228,765
CO2e emissions
tCO2e/t5
2022 1.25 2.14 1.44 2.59 – 1.75 12.91 –
2021 1.58 3.63 1.78 3.69 – 2.56 13.67 –
2020 1.65 4.19 1.79 3.44 – 2.79 13.93 –
1. Tonnes of carbon dioxide equivalent.
2. Further information on our CO2e emissions can be found on the Carbon Disclosure Project website (www.cdp.net).
3. All Scope 2 figures have been independently verified.
4. Scope 2 figures for 2020 and 2021 have been restated applying the market-based method of reporting acording to the GHG Protocol. This method reports Scope 2 emissions
specific to each individual operation and is considered by the Company to be a more accurate method of reporting. Under the previously used method, average emission factors for
the whole of Chile were used. Emissions using both methods of reporting are included in our Sustainability Report.
5. Tonnes of CO2 equivalent per tonne of copper produced or per tonne transported in the case of the Transport division.

Strategic Report
Energy supply Scope 3 emissions

In 2022, we implemented our new Energy Policy, recognising energy Besides our focus on Scope 1 and 2 emissions, we have worked over
as a strategic resource whose management must ensure a safe, the last two years to improve our understanding of our Scope 3
economic, efficient and sustainable supply for our operations. We are emissions. These are indirect emissions related to our activities but
committed to implementing, maintaining, operating and continuously generated by upstream (suppliers) and downstream processes that we
improving our Energy Management System to incorporate technological do not control or own. These represent about 75% of the Group’s
innovation and clean energy to reduce GHG emissions. During the year, carbon footprint.
we completed our alignment of the system, which is based on the ISO
In 2022, we made a preliminary calculation of our 2021 Scope 3
50001:2018 energy management standard, to the requirements of
emissions, which indicated that nearly 60% were from purchased goods
Chile’s Energy Efficiency Law.
and services. This calculation is being refined and in 2023 we expect to
Our conversion of all electricity supply to our mining sites to renewable report our 2022 Scope 3 emissions. We expect to set a reduction target
contracts was led by Zaldívar in 2020. It was followed by Antucoya and as soon as possible.
Centinela in January 2022 and Los Pelambres in April 2022, leading to
An important challenge faced by the mining industry globally is to define
a reduction of 873.695 tCO2e in our Scope 2 emissions in 2022
a consistent methodology to calculate Scope 3 emissions. In this context,
compared to 2021. we are working with ICMM member companies to develop a guide to
At the end of 2022 a renewable energy supplier informed Los measure and report the industry’s Scope 3 emissions with a view to
Pelambres of an issue at its hydroelectric generation facility that would having a common standard to define our own reduction goals.
temporarily prevent it from supplying energy from the facility. The While all Scope 3 action depends on the combined efforts of producers,
supplier is continuing to provide energy from other sources, including suppliers and customers, some commodities face greater technological
third parties, but these may not always be renewable. As a result, and collaborative barriers than others. We will work to overcome these
Scope 2 emissions from Los Pelambres may increase in 2023. barriers, mainly through collaborative partnerships across the value
Mine haulage and transport chain.
In 2022, approximately two-thirds of our Scope 1 emissions were
ESG in the supply chain
attributable to diesel combustion in our mine haulage trucks. We are
Antofagasta requires improved sustainability practices from suppliers as
positioning ourselves to be early adopters of technology, including
a key part of its purpose to develop mining for a better future. This will
electric-powered and hydrogen-fuelled machinery, that will drastically
gradually bring suppliers into line with our own internal standards on
reduce these emissions or possibly eliminate them altogether.
environmental, social and governance (ESG) matters. Our priority is that
In 2022, Antofagasta participated in pilot projects to develop electric- suppliers reduce their GHG emissions in line with our Climate Change
powered haulage trucks at Antucoya and electric-powered trolleys to Strategy, but we are also focused on their governance, local hiring and
assist haulage trucks at Los Pelambres. Pilot tests were also undertaken diversity and inclusion practices.
on electric buses and pickup trucks for the transport of employees at
ESG criteria are used to evaluate bids for contracts worth over $10
Los Pelambres. In addition, Antofagasta is a sponsor of Charge On,
million, complementing the energy efficiency and safety criteria we
an international open innovation challenge for suppliers to develop
already apply. In the environmental area, we also now favour companies
solutions to safely, sustainably and quickly recharge battery-powered
with robust emission reduction strategies and targets.
mining trucks.
The GHG emission calculations included in bids are checked by applying
As part of Hydra, a consortium that includes French utility Engie
an internal carbon price, thus assigning a cost to the emissions for the
and Australian technology think tank Mining 3, we tested a prototype
first time. Internally, we use the carbon price in capital allocation
hydrogen fuel cell and battery propulsion system designed to simulate
decisions and growth project evaluation, as well as incorporating it into
the operation of a hydrogen-fuelled mine haulage truck. The testing took
our financial planning cycles.
place at Centinela, the first time at a Chilean mine, to see how this fuel
would perform at high altitudes and under extreme temperatures. It Additionally, as climate-related risks and opportunities have impacted
showed that altitude, low temperatures and low humidity all affect our supply chain and with the increasing severity of sea swells which
performance and these factors will be considered when developing have delayed the delivery of some critical resources, Antofagasta has
this technology. decided to strengthen its resilience by increasing its storage capacity
and revising some of its supply chain strategies, particularly for diesel
In October 2022, our Transport division agreed to purchase a 100%
and acid.
hydrogen-fuelled cargo train locomotive, the first in Chile. It is expected
to start operating in 2024 and, if successful, the division plans to convert See P68 in Suppliers
for more information
its existing fleet to hydrogen.

Water management
Water management and efficiency have long been at the forefront of
our Mining division’s concerns. Three of our four mining operations
45%
are located in the Atacama Desert and the fourth, Los Pelambres, is in of water withdrawals were sea water
an area that has been suffering a severe drought for the past 13 years,
which, according to various climate scenarios, is expected to continue.
Consistent with these concerns, our Climate Change Strategy supports from wells in December 2022 and the expected reduction of continental
our operations’ reduced dependence on continental water sources water extraction by 50% when Phase 2 of the desalination plant at Los
through improved water use efficiency and the increased use of sea Pelambres is complete.
water. With the completion of the Los Pelambres desalination plant Phase 1 (400l/s) of the Los Pelambres desalination plant will be
in 2023, the proportion of continental water used will decrease completed in 2023 and an expansion to 800 l/s is expected to be
even further. completed in 2026, subject to permitting. This will allow Los Pelambres
Our total water withdrawal in 2022 was 73 Gigalitres of which 45.4% to stop using water from the Choapa River for operational purposes.
was sea water. Total water withdrawal increased by 5.4% as Zaldívar extracts continental water from wells located some 100 km
precipitation tripled in 2022 from the low levels in 2021, and Centinela from the mine. These withdrawal permits will expire in 2025, and we
Concentrates and Antucoya achieved record annual throughput. are looking to extend them and move to alternative water sources
In 2022, we approved a new Water Policy to have a water position towards the end of the decade as part of the plans to extend the
statement as a Group and launched a Water Management Standard in operation's life.
August. The Policy recognises water as a strategic resource and as an Antofagasta has been a pioneer of the use of sea water in the Chilean
essential element for life on our planet. We are committed to mining industry since the 1990s. In 2022, sea water accounted for
safeguarding the availability of water resources for our operations, 45.4% of our Mining division’s water withdrawal, led by Antucoya (97%)
communities and the environment, under practices aligned with the and Centinela (87%).
ICMM’s Water Management Framework.
In 2022, water reuse rates at our mining operations ranged from 79%
We will also progressively reduce water withdrawal, seek multiple at Los Pelambres to 94% at Zaldívar. Our target is for sea water and
alternative sources of supply and implement innovative technological reused or recycled water to supply more than 90% of the division’s
solutions to improve water efficiency and recirculation. These operational water withdrawal by 2025.
alternatives include Centinela’s complete cessation of water extraction
Operational water1 withdrawals by source, 2019-22, Mining division

2022 2021 2020 2019
Total 29,350 26,817 27,847 21,633

Surface water 20,0932 15,790 19,481 13,898
Groundwater 9,249 11,018 8,358 7,726
Los Pelambres Supplied by third parties 9 9 9 9
Total 30,902 29,223 27,178 26,369
Sea water 26,7622 25,251 23,316 22,602
Groundwater 4,140 3,972 3,862 3,356
Centinela Supplied by third parties – – – 410
Total 6,521 6,315 5,923 5,804
Sea water 6,2992 6,081 5,720 5,623
Antucoya Groundwater 221 234 204 181
Total 5,993 6,653 7,015 7,015
Zaldívar Groundwater 5,993 6,653 7,015 7,015
Total 72,766 69,008 67,963 60,821
Sea water 33,061 31,332 29,036 28,225
Surface water 20,093 15,790 19,481 13,898
Groundwater 19,603 21,877 19,438 18,279
Supplied by third parties 9 9 9 419
Mining division Sea water as a percentage of total 45% 45% 43% 46%
1. As defined by the ICMM, operational water is the volume of water used in operational tasks. Operational water use is, therefore, the actual volume of water required or used
to sustain operational activities.
2. Water withdrawal increased as precipitation in Los Pelambres tripled in 2022 from the low levels in 2021, and Centinela Concentrates and Antucoya achieved record annual
throughput.

Strategic Report

Financial Disclosures (TCFD)
The Group’s Task Force on Climate-related Financial Disclosures • Metrics & Targets, climate-related metrics – Climate Metrics
(TCFD) recommendations are integrated into this report in accordance & Targets: Our climate change analysis is helping us to define additional
with the Financial Conduct Authority Listing Rule LR.9.8.6(8). Progress metrics to the ones we already use (mainly to measure and manage
against the recommendations is summarised below, together with an emission targets), such as the amount of capital that will be required
index showing where more detailed disclosures can be found. to mitigate and adapt to climate change. We continue to improve our
climate change risk management by determining the levels at which
We are not yet fully consistent with three areas of the TCFD
particular climate risks would trigger us taking preventative actions.
recommendations, which we will progress during 2023.
• Metrics & Targets, GHG emissions and related risks – Scope 3:
• Strategy, impact on business – Decarbonisation Plan: We have Over the last two years we have improved our understanding of our
assessed how our emission reduction plans will achieve our Scope 3 emissions and calculated our 2021 Scope 3 emissions in
decarbonisation targets and further evaluation is underway on the 2022. However, we need to further improve our methodology before
feasibility and implementation of the planned measures at all our we set our Scope 3 reduction targets, which we expect to do and
operations. Completion is expected during 2023. disclose in 2023 or as soon as possible thereafter.
TCFD RECOMMENDATIONS AND PROGRESS IN 2022

GOVERNANCE
Recommendations Progress
• Board oversight • Climate change scenario analysis (scenarios SSP2-4.51 for physical risk analysis and IEA’s SDS
• Management’s role for transition risk analysis) was presented to the Board and incorporated into the annual
long-term financial planning process for the first time.
• We have separately reported on Board members’ experience relating to climate change issues.
• Since the establishment of the corporate Climate Change Committee in 2021, it has continued to
enhance the understanding and appreciation of the importance of our Climate Change Strategy
within the organisation and provide advice to our Executive Committee.
STRATEGY
• Identified risks and opportunities • We reviewed the impact of climate change risks and opportunities as part of our 2022
• Impact on business long-term financial planning process and this allowed us to assess the impact of climate change
• Business resilience risks during the life of each mining operation (LOM).
• In 2022 Los Pelambres and Antucoya were awarded the Copper Mark, the copper industry’s
new responsible production assurance framework, joining Centinela and Zaldívar who were
awarded the Mark in 2021.
• Following our evaluation of climate change issues that could affect our supply chain, we have
strengthened the resilience of our supply chains for some of our critical resources, such as
diesel and acid.
• This year, to improve our understanding of the financial impact of the physical risks of climate
change, we analysed a “middle of the road” climate change scenario (SSP2-4.51), rather than
the worst case scenario we used in our 2021 analysis (RCP8.52).
1. Shared Socioeconomic Pathway in which CO2 emissions hover around current levels before starting to fall mid-century, but do not reach net-zero by 2100. Used by the
Intergovernmental Panel on Climate Change (IPCC) in its 2021 Sixth Assessment Report.
2. Representative Concentration Pathway 8.5 assumes emissions continue to increase for the rest of the 21st century. Considered as a very unlikely and worst-case scenario.

RISK MANAGEMENT
• Identifying and assessing risks • The Board has assessed the Company’s risk appetite for climate change as medium.
and opportunities • Control metrics for measuring climate change risks were monitored during the year and the
• Managing risks and opportunities owners of the risks at each operation were identified.
• Integrating climate change into overall • Climate change physical risks were assessed using the SSP2-4.5 “middle of the road” scenario.
risk management The estimated financial impact on operating costs and capital expenditure was calculated for
three situations: no mitigation or adaptation; controls already in place; and plans and actions
implemented in the future.
METRICS AND TARGETS

• Climate-related metrics • We continue to use Scope 1 and 2 emissions and emission intensity (tCO2e/tCu) to monitor
• GHG emissions and related risks our exposure to transition risks.
• Targets and performance • In 2022, we calculated our 2021 Scope 3 emissions and are refining our methodology with
a view to setting reduction targets in 2023 or as soon as possible thereafter.
• In April 2022, the last of our mining operations started using power solely from renewable
sources, reducing our Scope 2 emissions by over 95% since 2021 and achieving our 2025
30%-reduction target three years early.
• From the beginning of the year, we have been using an internal carbon price in the economic
evaluation of bids from suppliers for specific goods and services.
TCFD INDEX
The Company has considered the relevant sections of the TCFD all-sector guidance and additional information relating to the required disclosures
can be found on the pages indicated in the table below:
Pillar Disclosure Page
Governance Description of the Board’s oversight of climate-related risks and opportunities. 107
Description of management’s role in assessing and managing climate-related risks and opportunities. 60
Strategy Description of the climate-related risks and opportunities the Company has identified over the short, 60 and 66
medium and long term.
Description of the impact of climate-related risks and opportunities on the Company’s businesses, 58, 60, 62
strategy and financial planning and 63
Description of the resilience of the Company’s strategy, taking into consideration different climate-related 66
scenarios, including a 2°C or lower scenario.
Risk Description of the Company’s processes for identifying and assessing climate-related risks 30
Management Description of the Company’s processes for managing climate-related risks. 60
Description of how processes for identifying, assessing and managing climate-related risks are integrated 30
into the Company’s overall risk management.
Metrics Disclosure of the metrics used by the Company to assess climate-related risks and opportunities consistent 60 and 65
and Targets with its strategy and risk management process.
Disclosure of Scope 1, Scope 2 and, if appropriate, Scope 3 greenhouse gas (GHG) emissions 61
and the related risks.
Description of the targets used by the Company to manage climate-related risks and opportunities 61 and 63
and performance against targets.

Strategic Report
RESULTS OF CLIMATE SCENARIO ANALYSIS, EXCLUDING COPPER MARKET BENEFIT

Impact calculated over operations’ Life-of-Mines (LOMs)
To improve our understanding of how climate risks may develop and impact our operations, we carried out a new climate scenario analysis
exercise in 2022. This also helped us develop our investment plans and enhance our prevention and recovery control measures.
In general, our 2022 analysis showed that the potential exposure of our business under the physical warming scenario decreased compared
to the analysis done in 2021. This was mainly due to the change of modelling scenario used, and our improved understanding of the physical
impact of climate change on our operations that we learned from the 2021 analysis.
The increased financial impact of transition risk, compared with 2021, is mainly due to the better-quality information used in the 2022 analysis
and the longer LOMs incorporated in the modelling. Although the likelihood of value-at-risk is uncertain, the analysis provides a useful reference
point against which to assess and prioritise the mitigation and adaptation measures we need to reduce our exposure and strengthen our
resilience.
The analysis below does not include an estimate of the potential impact of climate change on copper demand or the copper price, which
is expected to be positive but is difficult to quantify.
Transition1: IEA’s SDS

Transition risks and
opportunities have been
$50 - 100m
$1,000 - 1,500m $1,000 - 1,500m $500 - 100m identified over the short,
Investment medium and long term
Carbon Change in energy costs Carbon tax avoided
tax in mitigation due to mitigation by mitigation
Physical2: Northern Zone Central Zone

IPCC’s SSP2-4.5 (Centinela, Antucoya, Zaldívar, FCAB) (Los Pelambres)
Choapa Province
María Elena
Bolivia
Tocopilla
Calama
Argentina
Canela municipal district
Illapel municipal district
Centinela Port
Antucoya
Mejillones Centinela Los Pelambres

FCAB Sierra Gorda
San Pedro de Atacama
Punta Chungo port
Antofagasta
Los Vilos
Salamanca municipal district
Los Vilos
municipal district El Mauro
Argentina
tailings storage facilities

Antofagasta
Zaldívar
Compared with Risk Compared with Risk

2021 analysis timeline 2021 analysis timeline
Decrease and/or loss Medium Short and

of water supply = =
$0 - 50m term medium term
$100 - 200m
Medium Medium
Extreme rainfall events
$50-100m term $0-50m term
High and/or sustained Medium Medium and

temperatures $0-50m term $0 - 50m long term
Short and Short and

Particulate matter =
$50 - 100m medium term $0 - 50m medium term
Logistics disruption Short and Medium and

= =
$50 - 100m medium term $0 - 50m long term
Net Present Value Positive Exposure Net Present Value Negative Exposure
1. The positive impact of climate change on copper demand or the copper price, has not been quantified.
2. Physical changes in climate and the associated impacts vary by geography and will impact Antofagasta’s operations in different ways. Examples of adaptation
to the short-term impact of physical risks are shown in the section on “Water consumption” (desalination plant), and “ESG in the supply chain” (increase in acid
and diesel autonomy).

Suppliers
Responsible supply through the robust

oversight of suppliers’ ESG practices
is vital for the successful management
26%
Increase in purchases from SMEs ($510m)
of our long-term relationship.
Suppliers provide a range of goods and services from heavy equipment

to catering and are vital to our ability to operate continuously, safely and
efficiently. In 2022, our Mining and Transport divisions purchased $4.6
billion of goods and services from 3,982 companies of which 91% were
based in Chile. Contractor workers, employed by some of our suppliers,
make up 77% of our workforce.
In December 2022, we launched our Suppliers for a Better Future
programme, seeking to align contractor companies’ practices with our
Purpose of developing mining for a better future. The programme
provides support and sets targets on local recruitment, hiring women
and reducing emissions for suppliers to achieve by 2025. It also aims to
strengthen the development of local suppliers and their use of innovation
and, in alliance with the Catholic University of the North (UCN), to
develop the capabilities of local small and medium-sized
companies (SMEs).
Governance
We use a digital sourcing platform (Ariba) for all procurement in order to
make acquisition processes traceable, transparent and fair. We require
a minimum number of companies to participate in large tenders to
ensure a competitive process.

Strategic Report
Due diligence is conducted on all potential suppliers prior to awarding As part of our Suppliers for a Better Future programme, we also began
a contract. We assess Company ownership, participation of politically working with supply chain sustainability rating consultants EcoVadis,
exposed persons, antitrust issues, commercial behaviour, legal cases, in a trial to determine the ESG ratings of our suppliers. Following the
conflicts of interest, compliance models and procedures for the evaluation, a scorecard is prepared that highlights areas for the suppliers
prevention of slavery and human trafficking. We have in place control to improve and monitor. By the end of the year, around 50 of our largest
and management systems covering the procurement of minerals which suppliers, based on spending, were participating and more will be added
we use to manufacture our products, in line with the OECD’s due in 2023.
diligence guidance for responsible supply chains for minerals.
We continued to address Scope 3 emissions, which are indirect
Antofagasta’s Compliance Model applies to both employees and emissions related to our activities caused by upstream (suppliers) or
contractors. It is clearly defined and is communicated regularly through downstream processes that we do not control or own. During the year,
internal channels, as well as being described in our Crime Prevention we worked on specific supplier categories, such as explosives, grinding
Manual. All contracts include clauses relating to ethics, Chilean Law balls and linings, to further refine our Scope 3 emissions calculation for
N° 20.393 on bribery and asset laundering and the UK’s Bribery 2021. We plan to set a Scope 3 emissions reduction target in 2023 or as
Act and Modern Slavery Act. soon as possible thereafter, and include reduction targets in contracts
for specific categories of suppliers.
We conduct audits to ensure compliance with our requirements.
In 2022, we increased the frequency of financial evaluations and We agreed Greenhouse Gas Agreements with mining equipment
introduced several measures, such as shorter payment times, to suppliers Komatsu and Caterpillar to advance the development of
address greater insolvency rates among suppliers. zero-emission vehicles and machinery, which currently account
for approximately 50% of our Scope 1 emissions.
Our Procurement team received annual refresher training on the
Group’s Compliance Model, Code of Ethics and Crime Prevention Manual In addition, we worked on long-term strategies to reduce Scope 3
and updated their declaration of Conflicts of Interest. emissions in nine categories and began collaboration initiatives with
15 suppliers. We also signed agreements to pilot four types of electric
Suppliers can use the Tu Voz (Your Voice) whistleblowing channel on
battery vehicles in 2023 at our operations (excavators, front-end
the Group’s website to make anonymous complaints. We have raised
loaders, dump trucks and pickup trucks).
awareness of this mechanism in meetings and in written
communications with our contractor workers. As a member of the International Council on Mining and Metals (ICMM),
For more information, see our we helped design ICMM’s Scope 3 self-assessment tool and used it to
Crime Prevention Manual measure our emissions. It placed us in the top three of the 26 ICMM
member companies that undertook the evaluation with regard to the
For more information, see our completeness and quality of our measurement of Scope 3 emissions.
2022 UK Modern Slavery Act Statement
For more information, see our 2022 Sustainability Report, our
Suppliers ESG 2022 Climate Change Report and antofagasta.co.uk/suppliers22
In 2022, we began applying additional environmental, social and
governance (ESG) criteria to evaluate bids for contracts worth over
$10 million, in order to complement the energy efficiency and safety
considerations already in place. Extra points are assigned to bids from
companies with robust governance, local recruitment, diversity and
inclusion, as well as carbon emission reduction strategies and targets.
We also started applying an internal carbon price in tenders for specific
goods and services, such as explosives, mine haulage trucks and
transporting personnel.
Our strategy involves training small and medium-sized (SMEs), local
suppliers and service providers in the Antofagasta and Coquimbo
Regions on ESG concepts to help them adopt sustainable practices
and to meet the ESG goals set in our Suppliers for a Better Future
programme. In 2022, we held two training sessions on ESG matters
directed at SMEs in the Antofagasta Region and another four aimed
at suppliers from other regions. More than 200 national and regional
suppliers took part.

Supporting local growth Fostering local employment
At Antofagasta, we seek to foster economic development in the We encourage contractor companies to recruit employees from the
Antofagasta and Coquimbo Regions, where our operations are Antofagasta and Coquimbo Regions and in 2022 an average of 35% of
based, through sourcing and promoting local goods and services. their employees were from these regions. During the year, we set a
target for suppliers to hire 45% of their workforce locally by 2030.
In line with our objectives, the Mining division increased the number of
tender invitations to suppliers headquartered in these regions in 2022. In the Choapa Province, Los Pelambres has an employment programme
In total, the number and value of tenders awarded by our Mining division for contractor companies that includes a skills training programme, a job
to local suppliers increased by 49% to 7,139 and 10% to $374m portal aimed at locals and a KPI for suppliers of labour-intensive services
respectively against 2021. On average, these local suppliers were paid to recruit at least 30% of their employees locally. Since being launched
within eight days or less. Due to our policy, purchases from SMEs have in 2014, the programme has increased the proportion of people from the
continued to grow to $510 million and represented 26% of increase province hired by contractors from 15% to 48.3% in 2022.
compared to 2021. In the Antofagasta Region, we have trialled similar efforts and are
At the end of 2022, we updated our guidelines on regional procurement encouraging contractors to publish local jobs on the new regional
and recruitment that seek to promote local purchases by reducing employment portal, rather than bringing in workers from other parts
administrative and financial barriers for SMEs in the Antofagasta and of the country.
Coquimbo Regions. In response to feedback from contractor companies, We reinforce these efforts by building human capacity in the regions
we changed the guidelines to give more scope to award contracts where we operate through scholarships and other local training
to local companies even if they do not submit the lowest-priced initiatives.
bid and enable closed tenders for regional suppliers for specific
contract categories. For more information,
see P56 in Communities
Accessing opportunities
We continued to hold business roundtables to launch and discuss
tenders as part of our efforts to help local suppliers access opportunities
ETHICAL MINIMUM WAGE
to bid for contracts. In November, we presented 10 tenders in a meeting Since 2020 we have required contractor companies to pay their
with over 150 suppliers in the Antofagasta Region. In December, over employees an ethical wage that supports minimum living standards.
250 suppliers from the Coquimbo Region joined a meeting to discuss In 2022, we increased the ethical minimum wage to Ch$552,000,
upcoming tenders and requirements. We also held in-person forums to 38% higher than Chile’s legal minimum wage of Ch$400,000 at the
get feedback on our tender processes and requirements from suppliers end of 2022.
in the Antofagasta Region.
As part of the Suppliers for a better Future programme, Los Pelambres
worked with 150 suppliers over the year to improve the ability of local
businesses in the Choapa Province to bid in tenders. A key component
of the initiative is the one-on-one business coaching provided to
participants.
We also have an agreement with the Antofagasta Industrialists’
Association (AIA) to use its digital database of certified suppliers (known
as SICEP) to publicise upcoming tenders and update our register of
potential local suppliers.
PROMOTING INNOVATIVE SUPPLIERS

Our open innovation model encourages partners and potential
suppliers to understand the requirements and participate in finding
solutions for our main operational challenges.
A key initiative is the Pitch Days our mining operations organise in
alliance with Expande, a Fundación Chile initiative that seeks to
solve specific mining operation challenges with innovative solutions.
In 2022, we hosted 24 Pitch Days, which led to us doing further
work with the proposers on 13 of the suggested solutions.
The Group’s main operational challenges are also published on our
Innovaminerals open platform to capture original ideas from inside
and outside the Company.

Strategic Report
Customers
Successful management of our relationships In the case of copper cathode transactions, a premium, or in some
cases a discount, on the LME price is negotiated to reflect differences
with our customers contributes to our in quality, logistics and financing compared with the metal exchange’s
long-term success. standard copper contract specifications.
Customers Similarly, our molybdenum contracts are made under medium- and
Most copper and molybdenum sales are made under annual contracts or long-term framework agreements, with pricing usually based on Platts’
longer-term framework agreements, with sales volumes agreed for the average prices for Technical Molybdenum Oxide with a deduction to
coming year. Gold and silver are contained in the copper concentrates reflect the cost of converting molybdenum sulphide concentrate into
and are therefore part of copper concentrates sales. molybdenum oxide.
Most sales are to industrial customers who further process the copper Across the industry, neither copper producers nor consumers tend
into more value-added products – smelters, in the case of copper to make annual commitments for 100% of their respective sales or
concentrate production, and copper fabricators and trading companies purchases, and normally retain a portion to be sold or purchased
in the case of cathode production. We build long-term relationships on the spot market during the year.
with these key smelters and fabricators, while ensuring customer In line with industry practice, our sales agreements generally provide
diversification. We also maintain relationships with trading companies for provisional pricing at the time of shipment, with final pricing based on
that participate in shorter-term sales agreements, or in the spot market. the average market price in the month in which settlement takes place.
About 70% of our mining sales are under contracts of a year or longer For copper concentrates, the final price remains open until settlement
and metals sales pricing is generally based on prevailing market prices. occurs, on average four months from the shipment month. Settlement
Structure of sales contracts for the gold and silver contained in the copper concentrates occurs
Typically, our sales contracts set out the annual volumes to be supplied approximately one month after shipment. Copper cathode sales remain
and the main terms for the sale of each payable metal, with the pricing open for an average of one month from the month of shipment.
of the contained copper in line with LME prices. Settlement for copper in concentrate sales is later than for copper
cathode sales, as copper in concentrate requires more processing to
In the case of concentrates, a deduction is made from LME prices produce refined copper for sale. Molybdenum sales generally remain
to reflect TC/RCs, the smelting and refining costs to process the open for two or three months after the month of shipment.
concentrate into refined copper. These TC/RCs are typically
determined annually, in line with market developments and the
parties’ assessments of the copper concentrate market at the time
of the negotiation of the terms.
REVENUE BY PRODUCT AND CUSTOMER LOCATION
EUROPE
18%
NORTH
AMERICA
JAPAN
Copper
Molybdenum
84%
7%
5% 28%
Gold 5%
Transport 3%
REST OF
Silver 1% ASIA PACIFIC
SOUTH 39%
AMERICA
10%

Shareholders
The Company is listed on the main market 2022 Shareholder engagement calendar
of the London Stock Exchange and is Q1 CEO presented at an industry conference for institutional
a constituent of the FTSE100 index. investors in the US
As explained in the Directors’ Report In-person and virtual one-on-one and small group meetings with
on page 168, the controlling shareholders of some 100 investors, of which senior management participated
in 69%
the Company hold approximately 65% of the
Virtual presentation of full-year 2021 results by the CEO, CFO and
Company’s total capital. The majority of Vice President of Corporate Affairs and Sustainability, followed by
the Company’s ordinary shares not held a question and answer session open to all investors, and a virtual
by the controlling shareholder are held by roadshow with investors in Europe and the US
institutional investors, mainly based in the Investor relations team attended two virtual investor conferences
UK and North America. Q2 CEO presented at an industry conference for institutional
investors in the US
We maintain an active dialogue with institutional shareholders and
sell-side analysts, as well as with potential shareholders. This Video conference question and answer call open to all investors
communication is managed by our investor relations team in London and by the CEO, CFO and Vice President of Corporate Affairs and
includes a formal programme of presentations and roadshows to update Sustainability, following the release of the Q1 production report
institutional shareholders and analysts on developments at Antofagasta. Virtual one-on-one and small group meetings with some 125
As the travel restrictions imposed by the COVID-19 pandemic lifted investors, of which senior management participated in 65%
during 2022, we held an increasing number of in-person meetings with Annual General Meeting in London
institutional investors and sell-side analysts, including during international
investor roadshows, at industry conferences and panel events and with Investor relations team attended four virtual investor conferences
banks’ equity sales teams. These were attended by the CEO and/or and two in-person conferences in the US
various members of the senior management team, including the CFO, Q3 Virtual presentation of half-year 2022 results by the CEO,
the Vice President of Corporate Affairs and Sustainability and the Vice CFO and Vice President of Corporate Affairs and Sustainability,
President of Strategy and Innovation. We also visited major shareholders followed by a question and answer session open to all investors
and proxy voting agencies as part of a corporate governance roadshow London (in-person) and Frankfurt (virtual) roadshow
led by our Senior Independent Director and the Chair of our
Remuneration and Talent Management Committee. US East Coast roadshow
We publish quarterly production figures as well as half-year and full-year Virtual one-on-one and small group meetings with some 100
financial results. Copies of our production reports, financial results, investors, of which senior management participated in 63%
presentations and other ad-hoc press releases are available on our Investor relations team attended two virtual investor conferences
website. During 2022 we also published Sustainability Reports for our
Q4 Video conference question and answer call open to all investors
Mining and Transport divisions, as well as a Tax Report, all of which are
by the CEO and CFO following the release of the Q3
available on our website.
production report
What investors focused on most in 2022 Virtual one-on-one and small group meetings with some
• Our ability to achieve our full-year production and cost guidance 60 investors, of which senior management participated in 27%
• The drought in central Chile and its impact on the Company
Corporate Governance roadshow with our Senior Independent
• The progress and potential impact of the planned revisions
Director and Chair of the Remuneration and Talent
to the Chilean mining royalty and tax legislation and the rewriting
Management Committee
of the Chilean constitution
• ESG issues, particularly water availability and emissions, Investor relations team attended one investor conference
and our response to climate change in London
• Progress on the Los Pelambres Expansion project, including
the Desalination Plant
• Free cash flow generation and capital allocation
• Our capital expenditure programme and the potential of our
longer-term growth projects
• Supply and demand factors in the world copper market
• Labour negotiations at our operations

Strategic Report
Governments and regulators
Mining is a long-term business in which Public-private alliances

Since mining is a long-term business, we seek to contribute to Chile’s
timescales can run into decades. Political development and prosperity, including through public-private alliances
cycles are typically far shorter and material with local government. Examples include our active participation in a
developments and changes to policy, legislation workshop jointly organised by the Mining Ministry and the Women and
Gender Equality Ministry to encourage female participation in the mining
or regulations can have a major impact on our industry, and our commitment to the Mining Cluster in northern Chile,
business. a public-private alliance to promote local employment, technology
and skills development.
Governments and regulators engagement
Our operations, projects and exploration are mainly located in Another example of our active participation in a public-private alliance
Chile, where we interact with both the central government and the is the Provincial Water Working Group. This is organised by the
governments of the Antofagasta and Coquimbo Regions, as well as with Coquimbo Region government to identify and implement collective
the municipalities that are part of our areas of direct influence. solutions that can contribute to the area’s water security in the short,
medium and long term.
The relationship with governments and regulators is subject to
their strict engagement mechanisms, which in Chile are clearly defined Chilean Constitutional reform process
under Lobby Law No. 20.730. This Law seeks to regulate the activity of In a referendum in October 2020, the Chilean people voted in favour
lobbying and other efforts to represent particular interests, in order to of rewriting the country’s constitution. This process was conducted
strengthen transparency and honesty. It applies to the officials of central through a Constitutional Assembly of 155 members elected in a national
and local administrations who regulate activities such as the issue, vote in May 2021.
modification and repeal of administrative acts and laws, and the
The Constitutional Assembly proposed the text of a new constitution,
decisions of the authorities and officials.
which was rejected in a national referendum in September 2022.
Outside Chile, we comply with our own policies and the laws and
Congress has now adopted a new plan for drafting the constitution
regulations of the host countries, at all times maintaining high standards
which includes specific boundaries for the scope of the drafting process
of engagement.
with the election of a Constitutional Council in May 2023 and the
Payments to governments appointment of a Committee of Experts. The new constitution will be put
Antofagasta makes payments to governments relating to our activities to a vote in a national referendum in December 2023.
involving the exploration, discovery, development and extraction of
Proposed mining royalty
minerals, and our Transport division.
The Government presented a revised draft mining royalty bill to
These payments are primarily taxes paid to the Chilean government Congress in October 2022 which changes the structure and increases
and mineral licence fees, which in 2022 totalled $800 million of which the rates compared with the current royalty.
over 99% was paid in Chile.
This draft was approved by the Senate Mining and Energy Committee
Chilean law allows political donations to be made subject to certain in January 2023 and passed to the Senate Treasury Committee for
requirements, but Antofagasta made no political donations in 2022. discussion. The bill will then be debated in the full Senate before being
However, we often contribute towards the financing of projects passed to the lower house for its consideration.
benefitting local communities, in alliance with local municipalities
and the government. These contributions are regulated by specific
laws and are reviewed by the Chilean Internal Revenue Service (SII).

Non-financial information statement
The table below sets out where stakeholders can find information in the Strategic Report on non-financial matters, as required under the Non-Financial
Reporting Directive requirements. As described in this report, the effective application of these Policies and Standards underpins the Group´s
management of the risks in relation to these matters.
Reporting
requirement Relevant policies and standards Content Page Page
Sustainability Value Chart Letter from the Chairman 6 How we engage with our 46
Sustainability Policy Letter from the CEO 9 stakeholders
ICMM Guidelines Our approach to sustainability 42 Sustainability and Stakeholder 137
Management Committee
Safety and health Safety and Occupational Health Strategy Safety and Occupational Health 51 Safety risk management 52
Special Corporate Safety and Health Strategy Performance 53
Regulation for Contractors and Occupational health risk 52
Subcontractors (RECCS) management
Fatal Risk Standard (ERFT)
Occupational Health Standard (ESO)
Environmental Environmental Management Model Environmental management 57 Climate change 60
matters Integral closure of mining operations Environmental compliance 57 Carbon footprint 61
standard Responsible production 58 Energy management 62
Climate change standard Circular economy 59 Water management 63
Water management standard Biodiversity 59 TCFD 64
Biodiversity standard Air quality 59
Tailings policy Mine closure 59
Global Industry Standard on Tailings
Management
Our people People Strategy Employee wellbeing 48 Labour relations 50

Diversity and Inclusion Strategy Inclusive culture 49 Aligning contractors 50
Building human capital 50
Social matters Social Management Model Social Management Model 54 Open social innovation 55
Engagement Standard Addressing social concerns 54 Culture and heritage 56
Management of initiatives standard Flagship programmes 55 Local jobs 56, 61
Impact measurement 55 Engagement mechanisms 56
Suppliers Code of Ethics Suppliers 67 Local alliances 69
Purchase and contracts guidelines Suppliers ESG 68 Supplier development 69
Direct award procedure Local suppliers 69
Material management policy
Human Rights69 Code of Ethics Modern Slavery Act 36 Respectful, diverse and inclusive 49
Human Rights Policy work culture
Anti-corruption and Code of Ethics Business integrity and compliance 36 Compliance management 36
anti-bribery Compliance Model Code of Ethics 36
Anti-Corruption Model
Antitrust Protocol
Description of Risk Management Framework 24
principal risks and Principal risks 26
impact on business
activity
Description of the The mining life cycle 16
business model
Non-financial Key 2022 highlights 2
Performance Key Performance Indicators 22
Indicators
Total economic contribution 41

Strategic Report
Operating “Our financials remain robust,

driven by operational and cost
and Financial discipline across our assets.
Review However, the continuing drought
in Chile and increasing inflation is
reflected in our full year financial
performance compared to the
Operating review
Mining division 76
exceptional 2021.”
Los Pelambres 78 Mauricio Ortiz
Centinela 80 Chief Financial Officer
Antucoya 82
Zaldívar 83
Transport division 84
Growth projects and opportunities 86
Exploration activities 89
Key costs 90
Operating excellence and innovation 92
Financial review 94

Strategic Report
/ Operating review
Mining division
Antofagasta owns and operates four mines. “Our operational reliability and
Los Pelambres is located in the Coquimbo
Region of central Chile and Centinela,
utilisation rates continue to improve
Antucoya and Zaldívar are in the with Centinela and Antucoya
Antofagasta Region of northern Chile. reporting record throughput rates
for the year.”
Mauricio Larraín
Vice President of Northern Operations
Production highlights
646.2k tonnes 176.8k ounces

of copper produced of gold produced
770.0 670-710 282.3
725.3 733.9 721.5 220-240
252.2
646.2
210.1 204.1
176.8
2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023
Forecast Forecast
9.7k tonnes $1.61/lb

of molybdenum produced Net cash costs
13.6 1.65
10.0-11.5 1.61
12.6
11.6
10.5 1.29
1.22 1.20
9.7 1.14
2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023
Forecast Forecast

PERU
BOLIVIA
ANTOFAGASTA
REGION
CENTINELA
PORT ANTUCOYA
MEJILLONES CENTINELA
ANTOFAGASTA
ZALDÍVAR
SANTIAGO
COQUIMBO
REGION
ARGENTINA
LA SERENA
ILLAPEL
LOS
PUNTA PELAMBRES
CHUNGO PORT LOS VILOS
Los Pelambres
Centinela
Antucoya
Zaldívar
Capital city
Cities and town centres
Ports

Strategic Report
/ Operating review continued
Mining division:
Los Pelambres
Los Pelambres is a sulphide deposit in Chile’s
Coquimbo Region, 240 km north of Santiago.
It produces copper concentrate (containing
gold and silver) and molybdenum concentrate
through a milling and flotation process.
Copper production Gold production Revenue
275.0k tonnes
359.6
320-335
43.1k ounces
60.3 45-55
$2,559m
-29.3%
324.7 53.2
275.0
EBITDA
$1,473m
43.1
-41.7%
2020 2021 2022 2023 2020 2021 2022 2023

Forecast Forecast
Molybdenum production Net cash costs Lifecycle of the mine

10.9 1.25 MINE LIFE
7.5-8.5 1.10
9.2
0.89
7.2 0.81
23 years 12 years
2000 2023 2035
2020 2021 2022 2023 2020 2021 2022 2023

Forecast Forecast

2022 Performance Capital expenditure
Operating performance Capital expenditure during 2022 was $890 million, including $251 million
As expected, the prolonged drought at Los Pelambres impacted copper on sustaining capital expenditure and $496 million on growth projects.
production, which was also affected by the concentrate pipeline incident. As at the end of 2022, the Los Pelambres Desalination Plant and
EBITDA was $1,473 million, compared with $2,526 million in 2021, Concentrator Expansion projects, including design, procurement and
reflecting lower copper realised prices, lower sales volumes and higher construction, were 93% complete, and both are due to be in production
operating costs. during the second quarter of 2023.
Production
Copper production for the year decreased by 15.3% to 275,000
Outlook for 2023
The forecast production for 2023 is 320–335,000 tonnes of copper,
tonnes, to mainly due to the lower throughput due the expected
7.5–8,500 tonnes of molybdenum and 45–55,000 ounces of gold.
restrictions on water availability during 2022 as a result of the
Higher production is due to higher throughput, as the desalination and
accumulated impact of the long-running drought conditions in the
concentrator expansion are expected to be in production by the end
Los Pelambres area, and the pipeline incident. Molybdenum production
of Q2 2023.
in 2022 was 7,200 tonnes, 21.7% lower than in 2021 due to a decline
in throughput and grades. Gold production was 43,100 ounces, Cash costs before by-product credits are forecast to be approximately
19.0% lower than the previous year. $1.85/lb and net cash costs $1.25/lb, reflecting higher production and
decreased input costs, offset by inflation and a stronger Chilean peso.
Cash costs
Cash costs before by-product credits were $1.84/lb, 15.7% higher than
in 2021. This was due to the lower production, higher input prices
(mainly diesel, explosives and energy) and general inflation, partially
offset by the weaker Chilean peso.
By-product credits increased from $0.70/lb in 2021 to $0.74/lb in 2022
due to higher realised by-product prices despite lower production.
Net cash costs were $1.10/lb, 21c/lb higher than in 2021, reflecting
the increase in cash costs before by-product credits, partially offset
by higher by-product credits.

Strategic Report
Mining division:
Centinela
Centinela mines sulphide and oxide deposits
1,350 km north of Santiago in the Antofagasta
Region, one of Chile’s most important mining
areas. Centinela produces copper concentrate
(containing gold and silver) through a milling
and flotation process, and molybdenum
concentrate. It also produces copper cathodes,
using the solvent extraction and electrowinning
(SX-EW) process.
Copper production Gold production Revenue
247.5k tonnes
274.2 235-250
133.7k ounces
199.0
175-185
$2,406m
-19.3%
246.8 247.5
EBITDA
$1,157m
143.7
133.7
-39.7%
2020 2021 2022 2023 2020 2021 2022 2023

Forecast Forecast
Molybdenum production Net cash costs Lifecycle of the mine

2.5-3.0 1.75 MINE LIFE
1.70
2.4 1.27
1.13
1.7
1.3
22 years 43 years
2001 2023 2066
2020 2021 2022 2023 2020 2021 2022 2023

Forecast Forecast

2022 Performance Capital expenditure
Operating performance Capital expenditure was $857 million, including $431 million on mine
Centinela Concentrates’ grades declined in 2022. However, operational development, $252 million of sustaining capital expenditure and
reliability continued to improve and throughput averaged above design $174 million on development capital expenditure.
capacity for the year as a whole.
EBITDA at Centinela was $1,157 million, compared with $1,919 million Outlook for 2023
in 2021, on lower copper and gold sales volumes, lower copper realised Production is forecast at 235–250,000 tonnes of copper,
prices and higher unit costs. 175–185,000 ounces of gold and 2.5–3,000 tonnes of molybdenum.
Copper production will decrease compared with 2022 as grades fall
Production at Centinela Cathodes.
Copper production was 247,500 tonnes, 9.7% lower than last year due
Cash costs before by-product credits are forecast to be approximately
to expected lower ore grades at Centinela Concentrates, partially offset
$2.55/lb and net cash costs $1.70/lb.
by higher throughput.
Production of copper in concentrate was 149,300 tonnes, 19.5% lower
than in 2021, reflecting expected lower ore grades (18.3%), partially
offset by throughput above the design capacity of 105,000 tonnes of ore
per day. Copper cathode production was 98,200 tonnes, 10.6% higher
than in 2021 mainly due to expected higher grades and recoveries,
despite lower throughput.
Gold production was 133,700 ounces, 32.8% lower than in 2021,
as grades, which are correlated to copper grades, and recoveries
decreased. Molybdenum production was 2,400 tonnes on increased
grades.
Cash costs
Cash costs before by-product credits in 2022 were $2.44/lb, 30.5%
higher than in 2021 due to the impact of lower copper production and
higher input costs.
By-product credits were $0.69/lb, 5c/lb lower than in 2021 due to
lower gold production partially offset by higher molybdenum production
and price.
Net cash costs were $1.75/lb, 62c/lb higher than 2021.

Strategic Report
Mining division:
Antucoya
Revenue
$704m
Antucoya is approximately 1,400 km north
of Santiago and 125 km north-east of the city
of Antofagasta. Antucoya mines and leaches +0.8%
oxide ore to produce copper cathodes using
the solvent extraction and electrowinning EBITDA
$261m
(SX-EW) process.
-22.5%
Copper production Net cash costs Lifecycle of the mine

79.3
70-75 2.50 2.45
MINE LIFE
78.6 79.2
2.04
1.82
7 years 21 years
2016 2023 2044
2020 2021 2022 2023 2020 2021 2022 2023

Forecast Forecast
2022 Performance Cash costs

Operating performance Cash costs for 2022 were $2.50/lb, 22.5% higher than in 2021 due
Antucoya continued to improve its operational reliability and consistency to increased input costs, particularly for sulphuric acid, diesel and
during the year with throughput increasing by 4.6% compared explosives.
with 2021. Capital expenditure
EBITDA was $261 million compared with $337 million in 2021, reflecting Capital expenditure was $67 million, including $58 million on sustaining
higher operating costs and the lower realised copper price. capital expenditure.
Production
Antucoya produced 79,200 tonnes, 0.8% higher than last year due to Outlook for 2023
higher throughput, which averaged 89,400 tonnes per day for the year, Production is forecast to be 70–75,000 tonnes of copper and cash costs
the plant's design capacity. are expected to be approximately $2.45/lb.

Mining division:
Zaldívar
Zaldívar is an open-pit, heap-leach copper EBITDA
$147m
mine which produces copper cathodes using
the solvent extraction and electrowinning
(SX-EW) process. The mine is 3,000 metres -14.8%
above sea level, approximately 1,400 km north
of Santiago and 175 km south-east of the city
of Antofagasta.
Copper production Net cash costs Lifecycle of the mine

45-50
2.70 MINE LIFE
48.2 2.39 2.39
44.0 44.5
1.80
28 years 13 years
1995 2023 2036
2020 2021 2022 2023 2020 2021 2022 2023

Forecast Forecast
2022 Performance Other matters

Operating performance Zaldívar submitted an Environmental Impact Assessment (EIA) in 2018
During 2022, Zaldívar completed construction of its Chloride leach which included an application to extend its water extraction and mining
project, which is being ramped up in 2023. permits to 2029 (with decreasing activity levels in 2030-2031).
Currently, Zaldívar is permitted to extract water and mine into 2025 and
Attributable EBITDA was $147 million compared with $173 million 2024, respectively. Zaldívar continues to work diligently with the
in 2021. authorities and consult with the local indigenous community.
Production To ensure the continuity of the operation, in March 2023 Zaldívar
Attributable copper production was 44,500 tonnes, 1.1% higher than submitted a DIA (Declaration of Environmental Impact), a more limited
in 2021 mainly due to higher grades, partially offset by lower throughput. scope and simplified procedure than an EIA, requesting that the mining
permit be extended from 2024 to 2025 so as to expire at the same date
Cash costs
as the current water permit. At the same time Zaldívar withdrew the
Cash costs were $2.39/lb, unchanged from the previous year. The long
2018 EIA application. It is expected that an alternative and updated EIA
leach cycle of approximately 210 days generates a time lag in costs, so
application to extend the water and mining permits beyond 2025 will be
the full effect of higher input prices is not fully reflected.
submitted which will also include a plan for a transition from the current
Capital expenditure continental water source on completion of the extended water permit, to
Attributable capital expenditure in 2022 was $55 million, of which either procuring water from a third party or using raw sea water.
$44 million was sustaining capital expenditure. Zaldívar’s final pit phase, which represents approximately 20% of
current ore reserves, impacts a portion of Minera Escondida’s mine
Outlook for 2023 property, as well as infrastructure owned by third parties (road,
Attributable copper production is forecast to be 45–50,000 tonnes railway, powerline and pipelines). Mining of the final pit phase is subject
at a cash cost of approximately $2.70/lb. to agreements or easements to access these areas and relocate this
infrastructure.

Strategic Report
Transport division
Our Transport division is known as Ferrocarril

de Antofagasta a Bolivia (FCAB) and provides
rail and truck services to the mining industry
in the Antofagasta Region, including our own
mining operations.
2022 Tonnage transported
7,108k tonnes
7,108
6,533 6,702
6,444 Tocopilla
María Elena
Calama
Sierra Gorda
2019 2020 2021 2022
Mejillones
Antofagasta Region
Revenue
$193m Antofagasta
+13.8%
EBITDA
$80m
+17.3%
Taltal
Customer map
Road route
Rail route
FCAB customers

2022 Performance Sustainability
The Transport division continued to improve its operating activity The maturity of the safety processes applied at the division continued to
through the implementation of its Management Model, which is based show improvement, with the division recording its sixth year with
on five key pillars: operating excellence, growth, transformation, no fatalities and an LTIFR (Lost Time Injury Frequency Rate) significantly
community affairs and urban development. lower than the average in the Chilean rail and truck transport industries.
Also, in line with the Group’s Diversity and Inclusion Policy, the number
Operating performance
of women and people with disabilities in the division increased to 19.9%
Tonnage transported in 2022 increased by 6.1% to an all-time record
and 1.4% of the total workforce respectively.
7.1 million tonnes as new transport contracts have ramped up during
the year.
EBITDA was $80 million, 17% higher than in 2021, reflecting the higher Outlook for 2023
revenue from increased volumes and better contracted sales prices. The division has won or renewed nine contracts in 2022 and will
continue with the same focus in 2023. Over the coming years, the
Costs and operating efficiency division has a portfolio of projects that will allow it to increase its bulk
The division has implemented several operational efficiency materials transport volumes, mainly for the copper and lithium
improvements this year with positive results that led to increased industries.
volumes and cost optimisation which will ensure its long-term
The division continues to advance its plans to convert its land in the
competitiveness. In addition, it continued its Cost and Competitiveness
centre of the city of Antofagasta from industrial to urban use. This has
Programme to improve its cost structure, revenue stream and operating
involved extensive consultation with communities, neighbours and other
standards, achieving benefits of some $9 million during the year.
stakeholders. Remediation work will start in 2023.

Strategic Report
Growth projects
and opportunities
Our approach to considered growth means that Annual copper production will be increased by an average of 60,000
tonnes per year over 15 years, starting at approximately 40,000 tonnes
we focus on value, which includes controlling per year for the first four to five years and rising to 70,000 tonnes per
capital costs and optimising production at our year for the rest of the period as the hardness of the ore increases and
existing operations, and the development of the benefit of the higher milling capacity is fully realised.
new mining operations to deliver replacement In 2020, the decision was made to change the scope of the project and
double the planned capacity of the desalination plant from 400 l/s to
and new production in the future. We achieve 800 l/s. However, the additional work on this expansion that can be
this through careful project management and carried out during Phase 1 is limited by what is allowed under the
constant monitoring of the efficiency of our permits that have already been issued so the remaining work will be
treated as a separate project subject to the receipt of the necessary
mines, plants and transport infrastructure. permits. The cost of the additional work is included in the Phase 1
The Zaldívar Chloride Leach project was completed on time and on capital cost.
budget early in the year, pre-stripping of the Esperanza Sur pit was
By the end of 2022, the desalination plant and the water pipeline were
completed in July, the Los Pelambres desalination plant started its
95.7% complete and commissioning was under way, with production
pre-commissioning in November and the concentrator expansion
expected in the second quarter of 2023. At the concentrator plant
at Los Pelambres will be completed by the end of March 2023.
expansion site, progress was 91.0% with production also expected in the
Los Pelambres Expansion second quarter of 2023.
This expansion project is divided into two phases. Phase 1 is expected to A detailed review of the project schedule and costs in early 2022
be in production in the second quarter of 2023 and Phase 2 by the end resulted in the capital cost estimate for Phase 1 being increased to $2.2
of 2025. billion (from $1.7 billion). Of this increase, approximately $220 million
Phase 1 was related to the impact of COVID-19 on costs and the construction
This phase is designed to optimise throughput within the limits of the schedule, and $170 million was related to general inflation, including
existing operating, environmental and water extraction permits. increased input prices, wages, labour incentives and logistics costs, with
the balance reflecting other adjustments to implementation plans and an
As mining progresses at Los Pelambres, ore hardness will increase.
updated contingency provision.
The expansion is designed to compensate for this, increasing plant
throughput from its current capacity of 175,000 tonnes of ore per day
to an average of 190,000 tonnes of ore per day. The expansion is divided
into two sub-projects, the construction of a desalination plant and water
pipeline from the coast to the El Mauro tailings storage facility, and the
expansion of the concentrator plant, which includes the installation
of an additional SAG mill and ball mill, and six additional flotation cells.

Phase 2 – Future expansion Esperanza Sur pit
Following the decision in 2020 to increase the size of the desalination The Esperanza Sur pit is 4 km south of the Esperanza pit, close to
plant, Phase 2 of the expansion now requires two separate Centinela’s concentrator plant. The deposit contains 1.4 billion tonnes
Environmental Impact Assessment (EIA) applications; one for the of reserves with a grade of 0.4% copper, 0.13g/t of gold and 0.012%
expansion of the desalination plant and one for the extension of the mine of molybdenum.
life of Los Pelambres through an increase in the size of the El Mauro
Pre-stripping by a contractor was completed in July and Centinela has
tailings storage facility. The latter EIA will also provide the option to
taken over the operation of the pit using a fleet of 11 autonomous trucks,
further increase the throughput capacity of the concentrator plant.
the first to be used by the Group. Ore from the pit is now being
Desalination plant expansion processed at the Centinela concentrator.
This project will protect Los Pelambres from the future impact of climate
The opening of the Esperanza Sur pit improves Centinela’s flexibility in
change and the deteriorating availability of water in the region. The
supplying its concentrator and, over the initial years, the higher-grade
project cost will be reported as part of the Group’s sustaining capital
material from the pit will increase production by some 10–15,000 tonnes
expenditure.
of copper per year, compared with production levels if the material was
The project includes the expansion of the desalination plant and the supplied solely from the Esperanza pit. This greater flexibility will allow
construction of a new water pipeline from the El Mauro tailings storage Centinela to smooth and optimise its year-on-year production profile,
facility to the concentrator plant. In 2021 Los Pelambres submitted the which has in the past been variable.
EIA required for this project, which includes the desalination plant
expansion and two other sustaining capital infrastructure projects, the
replacement of the concentrate pipeline and the construction of certain
planned enclosures at the El Mauro tailings storage facility. EIA approval
is expected in time for the project to be completed in 2025/26, by which
time over 95% of Los Pelambres’s water needs will be fulfilled by
desalinated or recirculated water.
Mine life extension
The current mine life of Los Pelambres is 12 years and is limited by the
capacity of the El Mauro tailings storage facility. The scope of the second
EIA will include increasing the capacity of the tailings storage facility and
the mine waste storage. This will extend the mine’s life by a minimum of
15 years, accessing a larger portion of Los Pelambres’s six billion tonnes
of mineral resources. The EIA will also provide for the option to increase
throughput to 205,000 tonnes of ore per day, increasing copper
production by 35,000 tonnes per year.
The capital expenditure to extend the mine life was estimated at
approximately $500 million in a 2014 pre-feasibility study, with most of
the expenditure on mining equipment and increasing the capacity of the
concentrator and the El Mauro tailings facility. Key studies on tailings and
waste storage capacity have advanced and community consultation is
under way. The environmental and social studies are being prepared
and should be submitted to the authorities during 2023/24 as part of the
EIA application.
Zaldívar Chloride Leach
This project is expected to increase copper recoveries by approximately
10 percentage points, with further upside in recoveries possible
depending on the type of ore being processed. This will increase copper
production at Zaldívar by approximately 10–15,000 tonnes per annum
over the remaining life of the mine.
The project was completed in early 2022 at a total capital cost
of $190 million. The project included an upgrade of the Solvent
Extraction (SX) plant, new reagents facilities and the construction
of additional washing ponds for controlling the chlorine levels.
Ramp-up is currently underway to achieve the full
improvement in recoveries and will extend into 2023.
As the Group equity accounts for its interest in Zaldívar,
capital expenditure at the operation is not included
in Group total capital expenditure amounts.

Strategic Report
Centinela Second Concentrator In 2021, the BLM rejected advancing Twin Metals’ preference right lease
We are currently evaluating the construction of a second concentrator applications (PRLAs) and prospecting permit applications (PPAs).
and tailings deposit some 7 km from the existing concentrator, to take In early 2022, the Department of Interior (DOI) took an additional action
place in two phases. The EIA for both phases was approved in 2016. through a legal opinion issued by the Office of the Solicitor (M-Opinion).
Detailed engineering plans and costings have recently been updated for This action arbitrarily cancelled Twin Metals’ federal mining leases 1352
Phase 1 of the project and key contracts finalised, subject to Board and 1353, citing concerns with the reinstatement and renewal process.
approval of the project. The capacity of the new concentrator will be
95,000 tonnes of ore per day, producing on average approximately Also in early 2022, the BLM stopped its evaluation of Twin Metals’
170,000 tonnes of copper equivalent (copper, gold and molybdenum) MPO and an administrative court dismissed Twin Metals’ appeal of that
a year over the first ten years of operation. This will move Centinela into decision.
the first cost quartile of global producers. In August 2022, Twin Metals filed a claim in federal court challenging
The Phase 1 capital cost is estimated at $3.7 billion, including the cost of the administrative actions resulting in the rejection of the PRLAs, the
the new water supply system. The increase on the previously quoted cancellation of its federal leases 1352 and 1353, the rejection of its MPO
2015 pre-feasibility estimate of $2.7 billion reflects inflation, design and the dismissal of the administrative appeal of the MPO rejection.
improvements, heightened environmental and other regulatory Twin Metals considers the actions of the government to be arbitrary
requirements, and the results of advanced engineering and a more and capricious, contrary to the law and in violation of its rights. This
detailed execution plan. The estimate includes a concentrator plant, action is pending.
capitalised stripping, mining equipment, a new tailings storage facility, In January 2023, the DOI issued an order effectively banning mining in
a water pipeline and other infrastructure, pre-commercial production approximately 225,000 acres of the Superior National Forest for 20
operating costs, and owner’s and other costs. years, subject to valid existing rights. This action alone does not prevent
The decision by the Board on whether to proceed with the project is Twin Metals from proceeding with the project since it does not affect its
expected in 2023, with timing dependent on the outcome of ongoing pre-existing rights.
discussions on the tax reform and mining royalty bills and the rewriting Reko Diq project
of Chile’s constitution. Work on Phase 2 would only start once In 2019, the World Bank Group’s International Centre for Settlement of
construction of Phase 1 is completed and it is operating successfully. Investment Disputes (“ICSID”) awarded $5.84 billion in damages
The second concentrator and its potential further expansion to (compensation and accumulated interest as at the date of the award) to
150,000 tonnes of ore per day will source ore initially from the Tethyan Copper Company Pty Limited (“Tethyan”), the joint venture held
recently opened Esperanza Sur pit and later from the Encuentro pit. equally by the Company and Barrick Gold Corporation (“Barrick”), in
The sulphide ore in the Encuentro pit lies under the Encuentro Oxides relation to an arbitration claim filed against the Islamic Republic of
reserves, which are expected to be depleted by 2026. These Pakistan (“Pakistan”) following the unlawful denial of a mining lease for
expansions will further progress maximising the potential of the Reko Diq project in Pakistan in 2011.
Centinela's large mineral resource base. In March 2022, the Company reached an agreement in principle with
During 2022, the Company continued the tender process inviting third Barrick and the Governments of Pakistan and Balochistan on a
parties to provide water for Centinela's current and future operations by framework that provided for the reconstitution of the Reko Diq project,
acquiring the existing water supply system and building the new water and a pathway for the Company to exit the Reko Diq project.
pipeline. This process is expected to be completed in 2023. The In December 2022, the parties entered into definitive agreements under
outsourcing of the water supply will only proceed if it improves the net which the project was reconstituted under Tethyan and a consortium
present value of the project. of Pakistani state-owned enterprises acquired shares in the Tethyan
Twin Metals Minnesota subsidiary which holds the project, and the ICSID award was resolved.
Twin Metals Minnesota (Twin Metals) is a wholly owned copper, nickel The proceeds from the acquisition of the shares of Tethyan’s subsidiary
and platinum group metals (PGM) underground mining project, which will be held by Tethyan until they are distributed to the Company before
holds copper, nickel/cobalt and PGM deposits in north-eastern the end of 2023. An exceptional gain of $945 million has been
Minnesota, US. The planned project is over a portion of the total recognised in 2022 and is subject to final payment during 2023.
resource and envisages mining and processing 18,000 tonnes of ore per For more information please see Note 17 to the financial statements.
day for 25 years and producing three separate concentrates – copper,
nickel/cobalt and PGM.
In 2019, Twin Metals submitted its Mine Plan of Operations (MPO) and
Scoping Environmental Assessment Worksheet Data Submittal, to the
US Bureau of Land Management (BLM, a bureau in the Department of
Interior) and the Minnesota Department of Natural Resources (DNR),
respectively. However, over the past two years, while the Twin Metals
project was advancing its environmental review, several actions were
taken by the federal government that have changed the potential
outcomes for the project.

Exploration activities
Our aim is at least to replace the mineral The project is jointly held with Barrick Gold, with Antofagasta the
majority shareholder and operator.
resources mined at our operations each year
In addition, we advanced drilling evaluation at several projects in the
and to ensure Antofagasta’s sustainable and Centinela Mining District, maintaining our focus on identifying new
long-term growth. In 2022 our mineral high-quality projects with leachable oxide mineralisation in our properties
resources increased by 1 billion tonnes. and in ground held by third-parties.
Exploration remains a key contributor to the sustainable and long-term International
embedded growth of the Group´s copper business. Our international programme has a strong focus on Peru, including the
After the lifting of restrictions imposed during the COVID-19 pandemic, development of a diversified land portfolio with long-term and significant
exploration activities resumed as normal, subject to a few additional potential in the prospective coastal and Miocene belts. As at the end of
control protocols. We remain focused on favourable jurisdictions in the the year, permits are being sought to test an exploration target in the
Americas, particularly in Chile, Peru, Canada and the USA. country´s southern coastal belt.
In Chile, we are pursuing brownfield and greenfield projects and in the Exploration efforts in North America remain concentrated on the key
other countries we have generative programmes, identifying early-stage copper belts in British Columbia and Arizona/Nevada, with the GEM
projects while remaining open to M&A opportunities. team seeking joint venture opportunities with companies that have
attractive land holdings, local knowledge and resources.
The Global Exploration Management (GEM), team based in Santiago
leads all the Group’s exploration activities with the local offices in Lima
and Toronto reporting to the GEM on progress in Peru and North
America, respectively.
Exploration was conducted using these in-house teams, utilising a
well-balanced portfolio of land holdings in Chile and Peru while pursuing
third-party opportunities in the rest of the Americas, with the aim of
building a portfolio of long-term copper projects.
The Group’s exploration and evaluation expenditure, which includes
expenditure on pre-feasibility studies, increased by $10 million compared
to 2021, to $113 million.
Chile
Our exploration programmes remain focused on highly prospective
areas in northern and central Chile, mainly in metallogenic belts hosting
porphyry, manto and IOCG (Iron Oxide Copper Gold) deposit types.
During the year, we did 80,000 metres of drilling, 27% more than in
2021, mainly at our two advanced projects, Cachorro and Encierro.
Cachorro is in the western Atacama Desert in northern Chile, 100 km
north-east of the city of Antofagasta and 1,100 km north of Santiago.
It reported its maiden inferred resources in 2021 and these were
increased by over 70% during 2022 to 242.4 Mt at 1.21% copper
(cut-off grade of 0.5% copper), making the project one of the most
important manto-type deposits in the northern coastal belt in Chile.
It lies between Antucoya and Centinela and may benefit from the use
of their facilities.
The Encierro project is in the Chilean High Andes, 100 km east of the
city of Vallenar and 600 km north of Santiago. The deposit is a complex
Cu-Au-Mo Miocene porphyry copper and we announced its maiden
inferred resources of 522 Mt at 0.65% copper, 0.22 g/t gold and
74 ppm molybdenum (cut-off grade of 0.5% copper) in June 2022.

Strategic Report
Key costs
Our mining operations depend on many inputs, Labour

Accessing a diverse and talented workforce is key to our success.
from energy and labour to acid and fuel, the
Our employees accounted for 11% of our production costs. Labour
most important of which are reviewed below. agreements are in place with each of the unions at our operations
Contractor services, maintenance and spare parts account for 42% of and generally last for a period of three years, at the end of which they
the Mining division’s total production costs, and energy and labour are are renegotiated.
the largest direct costs, accounting for 11% each. As concentrate
Our employees’ wages are adjusted quarterly for inflation. This means
producers, Los Pelambres and Centinela require reagents and grinding
labour costs structurally increase by more than inflation, but we aim to
media. As cathode producers, Centinela, Antucoya and Zaldívar use
compensate for this with productivity improvements.
the SX-EW process and require sulphuric acid. The availability, cost and
supply reliability of these inputs are central to our cost management Service contracts and key supplies
strategy, which focuses on cost control and security of supply. For key commercial contracts, such as mining equipment, fuels,
lubricants, critical spares, tyres, reagents, grinding balls, explosives and
Energy
mine maintenance, negotiations are managed centrally to generate
Energy is a strategic resource for our Group and supply is maintained
synergies and economies of scale. The significant savings this achieves
through a strategy that considers four factors: safety, cost, efficiency
allows us to implement new controls that improve competitiveness and
and source. For this reason, in addition to reducing the cost of our
productivity from our contractor companies. We have linked our supply
electricity, we are working on improving our energy consumption
prices to the respective underlying commodity, to minimise the impact
efficiency and reducing our emissions.
on our margins.
All of our operations are on the country’s main grid, the National
We have a challenging optimisation programme at corporate and
Electrical System (SEN), and source power under medium- and
operations levels to improve the administration, control and risk
long-term contracts called Power Purchase Agreements (PPAs).
management of our service contracts. The procurement team has a
In recent years, renewable technologies have significantly reduced in standardised way of working and considerable technical knowledge, and
cost and many renewable power plants are being built in Chile, mainly in has developed effective approaches to managing the purchase of goods
the north of the country. The cost of renewable power is significantly and services. Depending on the strategic position of the supplier, these
lower than power from conventional sources. range from pure price competition with e-auctions to long-term
The transition to using solely renewable power, with its lower costs and Group-wide agreements with mechanisms and incentives that provide
lower emissions, has been important for both the Company’s carbon benefits for both parties.
footprint and its costs. Energy accounted for 11% of our total production The successful management of supplier relationships contributes to our
costs in 2022. long-term success, which is why we hold strategic meetings with our
key suppliers to address operational challenges while also taking a
“The transition to using long-term view. This allows us to work collaboratively on key challenges
such as developing zero-emission trucks and other initiatives linked to
solely renewable power our emission reduction commitments.

With the global disruption of the supply chain caused by COVID-19, we
has been important for implemented contingency plans to maintain the quality and timely
delivery of spare parts and materials, thus ensuring operational
both the Company’s continuity and cost containment. As disruption continues due to the war
in Ukraine, we have strengthened control of our supply chain by
adopting new technologies for the continuous monitoring of our sources
carbon footprint and of supply.
its costs.”
In 2022, we had around 3,800 different suppliers of goods and services,
of which 93% are based in Chile.

Fuel and lubricants grinding balls and liner prices also rose during 2022 before weakening
Fuel and lubricants represent approximately 11% of our production costs towards the end of the year.
and are used mainly by mine haulage trucks. Improving fuel efficiency Throughout 2022 we have implemented circular economy initiatives
remains a priority, with the amount of fuel consumed per tonne of focused on steel recycling to mitigate rising costs and reduce carbon
material mined being a key measure. Variations in the oil price affect not emissions.
only the price of fuel but also shipping rates for supplies and products,
and the cost of items such as tyres and conveyor belts, which contain Sulphuric acid
oil-based products. In June 2022 the oil price, which is the main input Sulphuric acid is one of the main inputs for the SX/EW leaching process
for fuels, increased to levels above $100 per barrel, partly due to supply used to produce copper cathodes and in 2022 it accounted for
constraints arising from the war in Ukraine and partly due to the approximately 9% of the Group’s production costs.
recovery in consumption as COVID-19 restrictions were lifted around the Centinela, Antucoya and Zaldívar use a total of approximately 1.5 million
world. Year-on-year, the WTI oil price has increased from an average of tonnes of sulphuric acid per year, mainly contracted under one-year
$68 per barrel in 2021 to $94 per barrel in 2022. However, prices agreements to secure supply.
decreased in the second half of 2022 stabilising at around $80 per
barrel by the end of the year. During 2022, the acid price was about $250 per tonne in Chile, an
increase of over two times compared to 2021. The spot price had an
Explosives upward trend throughout the first half of the year, reaching prices of
The price of explosives continued the upward trend observed in 2021, in $280 per tonne. From August 2022 the price weakened, ending the
line with the ammonia price which was highly affected by the increase in year at around $150 per tonne.
gas prices and supply constraints related to the war in Ukraine. In 2022
The high price of acid has had a significant impact on our SX-EW
explosives prices increased on average by around 55% compared to the
operations, where it accounts for about 23% of production costs.
previous year. At Centinela, we increased our use of non-fuel-based
explosives in certain areas of the mine to reduce carbon emissions and Exchange rate
contain costs. The Chilean peso/US dollar exchange rate generally has a strong
We are evaluating the feasibility of HyEx, a project to produce green correlation with the copper price as copper exports generate over
ammonia in northern Chile, led by energy multinational Engie and a 50% of Chile´s foreign currency earnings, therefore if the copper
Chilean explosives Company. price strengthens so does the Chilean peso, and vice-versa, providing
a natural hedge for the Company. During 2022 the copper price
Grinding balls and mill liners weakened and the US dollar strengthened, largely explained by
Steel is used in the grinding balls and mill liners which account for increases in interest rates by the Federal Bank in the US in response
approximately 8% of a concentrator plant’s costs and 2% of the Group’s to high inflation. The Chilean peso weakened 1.3% over the US dollar,
production costs. Steel prices showed an upward trend during the first closing the year at CLP856/$1, in part explained by the copper price
half of 2022 (although averages prices were lower than in 2021) and decrease, offset by a better political environment in Chile than the
previous year.

Strategic Report
Operating excellence
and innovation
Innovation is one of our five strategic pillars, The benefits were mainly achieved through higher utilisation of our
processing facilities, such as at Centinela where the concentrator
designed to create and add value across the operated at 4% above design capacity and at Antucoya, which achieved
Group by enabling the progression and record throughput for the year. Also, the consumption rates for some
fulfilment of our strategic priorities. key inputs were improved through enhanced operational practices and
the use of data analytics. These initiatives were especially beneficial this
Our innovation programme has two key objectives. The first is to year, partially offsetting the impact of lower production and increased
improve and achieve the full potential of our operations by seeking new industry-wide input prices.
ways of using best-in-class digital technology. We are doing this through
the integration of data with advanced analytics and by improving For 2023, the target is to achieve at least $60 million of further savings.
operational performance with automation and robotics. The second is a New ways to operate
longer-term objective; to enable business growth and to develop the next Our digital roadmap comprises transformational strategic programmes
generation of mining practices, including game-changing process that draw on the adoption of new technologies to improve productivity
technology and the reduction of our environmental footprint. and safety. This helps us maintain or improve our competitive position
Operating excellence drives our Competitiveness strategic pillar by through continual productivity improvements that both optimise margins
embedding a continuous improvement culture in the Group to raise and advance our growth projects and innovations portfolio.
the full potential of our assets and our people. Integrated Remote Operations Centre (IROC)
Operating excellence Centinela’s Integrated Remote Operations Centre (IROC) in the city of
During 2022, our operating excellence strategy focused on achieving Antofagasta went fully operational during 2022 and Los Pelambres’
the maximum theoretical capacities of our production processes using IROC in Santiago was completed at the end of the year.
our Full Potential 2.0 programme. These projects allow not only remote operations and improved process
Full Potential 2.0 is a methodology that allows the systematic and control, but better decision-making and greater efficiency and
standardised identification of bottlenecks in our production processes. productivity from the mine to the port.
It seeks to maximise the capture value of our mining operations through Autonomous systems
an indicator, OEE (Overall Equipment Efficiency), that measures the The increasing use of autonomous equipment at Los Pelambres
overall efficiency of equipment and processes. This process has allowed and at Centinela’s Esperanza Sur pit continued during the year.
us to identify the main gaps and opportunities for process improvement
Los Pelambres has successfully deployed five autonomous production
at our operations, as well as indicating initiatives that are key to
drill rigs, three electric and two diesel, which have significantly improved
creating value. The most important of these are the use of continuous
productivity and safety.
improvement methodologies and advanced analytics to improve
data-driven decision-making. To sustain these improvements, we also Meanwhile, at Centinela’s Esperanza Sur pit, we completed the
deploy Lean practices throughout the organisation to ensure that the commissioning of our new autonomous fleet, with the 11 autonomous
value of the improvements achieved is locked in. trucks and two autonomous production drills performing as planned.
Data analytics Next generation in mining technologies
During 2022, Data & Advanced Analytics focused on three main work We continue to advance the development and validation of new
areas: growing our Data Governance programme by adding five new technologies that could enable new growth and mining practices,
Data Domains (corporate areas) and deepening skills in older domains through the achievement of better and more sustainable mining as
(operations); stabilising and strengthening our Data Platform – data lake shown by the examples below.
– to support current and new analytics use cases; and automating
Cuprochlor®-T – our patented primary sulphide leaching technology
business intelligence (BI) tools, dashboards and reports.
The Cuprochlor®-T patent was granted in Chile in 2022 and after
Operational innovation the successful completion of the industrial-scale trial at Centinela
Our open innovation model is effective in enabling our employees, new tests have been started using primary sulphides from our other
contractors and external parties such as suppliers to understand our operations.
main operational challenges. They can propose their own ideas and
The pre-feasibility study and preparation for a semi-industrial heap
solutions through the online collaborative platform Innovaminerals and at
at Zaldívar is underway and we expect to complete the study by the
supplier Pitch Days. During 2022 we hosted 12 Pitch Days aiming to
end of 2023.
solve 12 operational challenges in collaboration with our ecosystems.
The technology is incorporated as an option in our mine planning for
Cost and Competitiveness Programme
the long-term development of the mineral resources at our operations
The Cost and Competitiveness Programme (CCP) was introduced in
and we expect its use to be phased in over the coming years.
2014 to capture the gains from initiatives introduced to reduce our cost
base and improve our competitiveness. Green hydrogen
In 2022 the prototype of the Hydra project, installed in the Esperanza
The programme focuses on five areas designed to deliver sustainable
pit at Centinela, completed its six-week trial to test the behaviour
cost reductions and productivity increases: streamlining goods and
of hydrogen fuel cells in the demanding environmental conditions
services procurement; improving operating efficiency and asset
of the mine (particularly with regard to altitude and dust). If successful,
reliability; energy efficiency; corporate and organisational effectiveness;
hydrogen could replace diesel as the fuel for large mining equipment.
and working capital, capital expenditure and services efficiency.
During 2022, we achieved benefits of $124 million, equivalent to $7.0c/
lb for the year.
AGILE DECISIONS ASSISTANT (ADA) SMART PLS
LOS PELAMBRES CENTINELA
During 2022, Los Pelambres started using an advanced analytics tool Smart PLS is software that uses Artificial Intelligence algorithms
that provides situational awareness for integrated operations. Based to optimise decision making and operational leach processes in
on real time data architecture, key process indicators (mine to port) order to maximise copper recoveries. The online platform helps
are continuously monitored in the IROC, allowing operational constraints the operating team to use control charts, irrigation simulations
to be quickly detected and solved. The tool was developed in-house and and automatic reportability, to track and optimise acid and water
we are in process of designing and building an updated version with consumption, increase productivity and enable intelligent irrigation
additional features and an improved user experience. based on expert judgement. We are currently working on the
implementation of this technology at our Tesoro plant.
IMPROVED HEAP LEACH RECOVERY HEAP PERFORMANCE OPTIMISATION

ENABLED BY DATA ANALYSIS ZALDÍVAR
ANTUCOYA We implemented multivariable data analysis at Zaldívar during 2022,
During 2022, multivariable data analysis was developed to identify using machine learning algorithms to identify the most important
the key variables and improve recoveries in the heap leach process. variables that impact recoveries. The analysis showed that, among other
This project allowed zones in the heap to be identified that required variables, the most important variable is the height of the heap which
permeability improvement, increasing ore recovery by over 3%. has a significant impact on recoveries given the variability of the ground
level below the heap and the difference in height of each strip. This
multivariable analysis allows us to identify the heap conditions and
SPENT ORE BEHAVIOUR PREDICTOR optimise recoveries.
ANTUCOYA
During 2022, a machine learning module was developed to predict CATHODE CLEANING
the behaviour of spent ore and to prevent delays in the mining process
by anticipating changes in the fluidity of the spent ore. ZALDÍVAR
The innovation project “Cathode Cleaning with Wax” was implemented
during 2022, removing wax in the cathode harvesting process via
an innovation where “edge covers” were installed, not only allowing
the adequate isolation of the material but also increasing our
workers’ safety, saving up to 20% of costs and improving the quality
of the cathodes.

Strategic Report
/ Financial review
Robust results in a year of transition
Financial review for the year ended 31 December 2022

Year ended 31.12.2022 Year ended 31.12.2021
Before Exceptional Before Exceptional
exceptional items items Total exceptional items Items Total
$m $m $m $m $m $m
Revenue 5,862.0 – 5,862.0 7,470.1 – 7,470.1

EBITDA (including share of EBITDA from associates
and joint ventures) 2,929.7 – 2,929.7 4,836.2 – 4,836.2
Total operating costs (4,227.7) – (4,227.7) (3,891.1) (177.6) (4,068.7)
Operating profit from subsidiaries 1,634.3 – 1,634.3 3,579.0 (177.6) 3,401.4
Net share of results from associates
and joint ventures 48.1 – 48.1 59.7 – 59.7
Gain on disposal of investment in joint venture – 944.7 944.7 – – –
Operating profit from subsidiaries, and total
profit from associates and joint ventures 1,682.4 944.7 2,627.1 3,638.7 (177.6) 3,461.1
Net finance expense (68.2) – (68.2) 16.0 – 16.0
Profit before tax 1,614.2 944.7 2,558.9 3,654.7 (177.6) 3,477.1
Income tax expense (603.6) – (603.6) (1,332.9) 90.6 (1,242.3)
Profit from continuing operations 1,010.6 944.7 1,955.3 2,321.8 (87.0) 2,234.8
Profit for the year 1,010.6 944.7 1,955.3 2,321.8 (87.0) 2,234.8
Attributable to:
Non-controlling interests 422.3 – 422.3 917.4 27.2 944.6
Profit/loss attributable to the owners
of the parent 588.3 944.7 1,533.0 1,404.4 (114.2) 1,290.2
Basic earnings per share cents cents cents cents cents cents
From continuing operations 59.7 95.8 155.5 142.5 (11.6) 130.9
The profit for the financial year attributable to the owners of the parent (including exceptional items) increased from $1,290.2 million in 2021
to $1,533.0 million in the current year. Excluding exceptional items, the profit attributable to the owners of the parent decreased by $816.1 million
to $588.3 million.
The full reconciliation between 2021 and 2022, including exceptional items, is as follows:
944.7 1,533.0
114.2 1,404.4 (1,608.1)
1,290.2
495.1 588.3
729.3
(336.6)
(11.6) (84.2)
Profit attributable
to the owners of the
parent in 2021
Less: exceptional items

– 2021
Profit attributable to the

owners of the parent in
2021 (excluding
exceptional items)
Decrease in revenue
Increase in total operating

costs (excluding
exceptional items)
Decrease in net share of

profit from associates and
joint ventures (excluding
exceptional items)
Increase in net finance

expenses
Decrease in income tax

expense (excluding
exceptional items)
Decrease in
non-controlling interests
Profit attributable to the

owners of the parent in
2022 (excluding
exceptional items)
Exceptional items
– 2022
Profit attributable
to the owners of the
parent in 2022

Revenue Realised copper prices are determined by comparing revenue (after
The $1,608.1 million decrease in revenue from $7,470.1 million in 2021 adding back treatment and refining charges for concentrate sales) with
to $5,862.0 million in the current year reflected the following factors: sales volumes in the period. Realised copper prices differ from market
prices mainly because, in line with industry practice, concentrate and
7,470.1 (799.4) cathode sales agreements generally provide for provisional pricing at the
time of shipment with final pricing based on the average market price in
(704.5) future periods (normally around one month after delivery to the
(3.8) (122.5) 25.9 (27.2) 23.4
customer in the case of cathode sales and four months after delivery
5,862.0
to the customer in the case of concentrate sales).
Further details of provisional pricing adjustments are given in Note 7
to the financial statements.
(iii) Treatment and refining charges
Revenue
in 2021
Decrease in
copper sales
volumes
Decrease in
realised copper
price
Increase in
treatment and
refining charges
Decrease in gold
revenue
Increase in
molybdenum
revenue
Decrease in
silver revenue
Increase in
Transport
division revenue
Revenue
in 2022
Treatment and refining charges (TC/RCs) for copper concentrate

increased by $3.8 million to $155.8 million in 2022, compared with
$152.0 million in 2021 reflecting higher average TC/RC rates, offset
by the decrease in concentrate sales volumes at Los Pelambres
Revenue from the Mining division and Centinela.
Revenue from the Mining division decreased by $1,631.5 million, or 22%, With sales of concentrates at Los Pelambres and Centinela, which are
to $5,668.6 million, compared with $7,300.1 million in 2021. The sold to smelters and roasting plants for further processing into fully
decrease reflected a $1,507.7 million reduction in copper sales and refined metal, the price of the concentrate invoiced to the customer
a $123.8 million decrease in by-product revenue. reflects the market value of the fully refined metal less a “treatment and
Revenue from copper sales refining charge” (TC/RC) deduction, to reflect the lower value of this
Revenue from copper concentrate and copper cathode sales decreased partially processed material compared with the fully refined metal.
by $1,507.7 million, or 24%, to $4,905.5 million, compared with $6,413.2 For accounting purposes, the revenue amount is the invoiced amount,
million in 2021. The decrease reflected the impact of $799.4 million from which is the market value of fully refined metal less the treatment and
lower sales volumes, $704.5 million from lower realised prices and refining charges. Under the standard industry definition of cash costs,
$3.8 million from higher treatment and refining charges. treatment and refining charges are regarded as an expense and part
of the total cash cost figure.
(i) Copper volumes
Copper sales volumes reflected within revenue decreased by 12.2% Accordingly, the increase in these charges has had a negative impact
from 681,000 tonnes in 2021 to 598,100 tonnes in 2022, decreasing on revenue in the year.
revenue by $799.4 million. This decrease was due to lower copper sales Revenue from molybdenum, gold and other by-product sales
volumes at Los Pelambres (53,300 tonnes decrease) as a result of its Revenue from by-product sales at Los Pelambres and Centinela relate
decreased production due to the concentrate pipeline issue and water mainly to molybdenum and gold and, to a lesser extent, silver. Revenue
shortage, and lower sales volumes at Centinela (30,000 tonnes from by-products decreased by $123.8 million or 14.0% to $763.1 million
decrease) due to decreased production volumes reflecting expected in 2022, compared with $886.9 million in 2021.
lower ore grades.
Revenue from gold sales (net of treatment and refining charges) was
(ii) Realised copper price $313.9 million (2021 – $436.4 million), a decrease of $122.5 million
The average realised copper price decreased by 12% to $3.84/lb in which reflected a decrease in volumes slightly offset by a higher
2022 (2021 – $4.37/lb), resulting in a $704.5 million decrease in realised price. Gold sales volumes decreased by 28.6% from 244,700
revenue. The decrease in the realised price reflected the lower LME ounces in 2021 to 174,700 ounces in 2022 as the gold grades, which
average market price, which fell by 5% to $4.00/lb in 2022 (2021 – are often correlated to copper grades, decreased, as did recoveries at
$4.23/lb), and a negative provisional pricing adjustment of $169.7 million. Centinela. The realised gold price was $1,801/oz in 2022 compared
The provisional pricing adjustment mainly reflected the decrease in the with $1,788/oz in 2021, reflecting the average market price for 2022
year-end mark-to-market copper price to $3.80/lb at 31 December of $1,800/oz (2021 – $1,799/oz) and a positive provisional pricing
2022, compared with $4.42/lb at 31 December 2021. In addition, during adjustment of $3.5 million.
2022 there was no impact in respect of commodity hedging instruments
as no hedges were in place during the year, whereas the prior year Revenue from molybdenum sales (net of roasting charges) was
revenue included a $126.8 million negative impact in respect of hedging $392.3 million (2021 – $366.4 million), an increase of $25.9 million.
instruments which matured during 2021. The increase was due to the higher realised price of $20.8/lb
(2021 – $17.4/lb), partially offset by decreased sales volumes of 9,200
tonnes (2021 – 10,400 tonnes).
Revenue from silver sales decreased by $27.2 million to $56.9 million
(2021 – $84.1 million). The decrease was due to lower sales volumes
of 2.7 million ounces (2021 – 3.4 million ounces) and the lower realised
silver price of $21.2/oz (2021 – $24.9/oz).

Strategic Report
/ Financial review continued
Revenue from the Transport division Operating costs (excluding depreciation, amortisation and loss
Revenue from the Transport division (FCAB) increased by $23.4 million on disposals) at the Transport division
or 13.8% to $193.4 million (2021 – $170.0 million), mainly due to Operating costs (excluding depreciation, amortisation and loss on
increased volumes and better pricing in some contracts. disposals) at the Transport division increased by $12.8 million to $119.1
million (2021 – $106.3 million), mainly due to an increase in the price of
Total operating costs (excluding exceptional items) diesel used for locomotives and trucks as well as the impact of the
The $336.6 million increase in total operating costs (excluding higher inflation rate on labour, material and contractor costs.
exceptional items) from $3,891.1 million in 2021 to $4,227.7 million in the
current year reflected the following factors: Depreciation, amortisation and disposals (excluding
impairments)
252.8 6.4 9.8 (0.5) 12.8 55.3 4,227.7 The expense for depreciation, amortisation and loss on disposals
3,891.1
increased by $55.3 million from $1,087.9 million in 2021 to $1,143.2
million. This increase is mainly due to higher amortisation of IFRIC 20
stripping costs at Centinela, offset by the impact of depreciation deferred
in inventory, also largely at Centinela.
Operating profit from subsidiaries
As a result of the above factors, operating profit from subsidiaries
decreased by $1,935.7 million or 54.1% in 2022 to $1,634.3 million
(2021 – $3,579.0 million).
Total operating
costs in 2021
(excluding
exceptional
items)
Increase in
mine-site
operating costs
Increase in
closure provision
and other mining
expenses
Increase in
exploration and
evaluation costs
Decrease in
corporate costs
Increase in
Transport
division operating
costs
Increase in
depreciation,
amortisation and
loss on disposals
Total operating
costs in 2022
(excluding
exceptional
items)
Share of results from associates and joint ventures

The Group’s share of results from associates and joint ventures was
a profit of $48.1 million in 2022, compared with $59.7 million in 2021.
Operating costs (excluding depreciation, amortisation,
loss on disposals and impairments) at the Mining division EBITDA
Operating costs (excluding depreciation, amortisation, loss on disposals EBITDA (earnings before interest, tax, depreciation and amortisation,
and impairments) at the Mining division increased by $268.5 million to and impairments) decreased by $1,906.5 million or 39.4% to $2,929.7
$2,965.4 million in 2022, an increase of 10.0%. Of this increase, $252.8 million (2021 – $4,836.2 million). EBITDA includes the Group’s
million was attributable to higher mine-site operating costs. This proportional share of EBITDA from associates and joint ventures.
increase in mine-site costs reflected higher key input prices and general EBITDA from the Mining division decreased by 40.2% from $4,768.0
inflation, partly offset by the impact of the decreased sales volumes, the million in 2021 to $2,849.7 million this year. This reflected the lower
weaker Chilean peso and cost savings from the Group’s Cost and revenue and higher mine-site costs explained above, and to a lesser
Competitiveness Programme. extent a lower EBITDA from associates and joint ventures.
On a unit cost basis, weighted average cash costs excluding by-product EBITDA at the Transport division increased by $11.8 million to $80.0
credits (which for accounting purposes are part of revenue) and million in 2022 (2021 – $68.2 million), reflecting the higher revenue
treatment and refining charges for concentrates (which are also part of and slightly increased EBITDA from associates and joint ventures, offset
revenue for accounting purposes), increased from $1.68/lb in 2021 to by higher operating costs, mainly due to inflation and the increased
$2.05/lb in 2022. price of diesel.
The Cost and Competitiveness Programme was implemented to reduce Commodity price and exchange rate sensitivities
the Group’s cost base and improve its competitiveness within the The following sensitivities show the estimated approximate impact
industry. During 2022 the programme achieved benefits of $124.0 on EBITDA for 2022 of a 10% movement in the average copper,
million in the Mining division, of which $88.0 million reflected cost molybdenum and gold prices and a 10% movement in the average
savings and $36.0 million reflected the value of productivity US dollar/Chilean peso exchange rate.
improvements. Of the $88.0 million of cost savings, $55.9 million related
to Los Pelambres, Centinela and Antucoya, and therefore impacted the
Group’s operating costs, and $32.1 million related to Zaldívar (on a 100%
basis) and therefore impacted the share of results from associates and
joint ventures.
Closure provisions and other mining expenses increased by $6.4 million.
Exploration and evaluation costs increased by $9.8 million to $113.0
million (2021 – $103.2 million), reflecting increased exploration
expenditure principally in respect of the Cachorro and Encierro projects,
and also increased expenditure on geotechnical drilling at Los
Pelambres, partly offset by lower costs at Twin Metals.
Corporate costs decreased by $0.5 million.

The impact of the movement in the average commodity prices reflects the estimated impact on the relevant revenues during 2022, and the impact
of the movement in the average exchange rate reflects the estimated impact on Chilean peso denominated operating costs during the year. These
estimates do not reflect any impact in respect of provisional pricing or hedging instruments, any potential inter-relationship between commodity price
and exchange rate movements, or any impact from the retranslation or changes in valuations of assets or liabilities held on the balance sheet at the
year-end.
Impact of a 10% movement in
Average market the commodity price/exchange
commodity price/average rate on EBITDA for the year
exchange rate during the year ended 31.12.22
ended 31.12.22 $m
Copper price $4.00/lb 566

Molybdenum price $18.7/lb 38
Gold price $1,800/oz 31
US dollar/Chilean peso exchange rate 872 153
Net finance (expense)/income

Net finance expense of $68.2 million reflected a variance of $84.2 million compared with the $16.0 million gain in 2021.

$m $m
Interest income 40.2 5.0

Interest expense (78.6) (63.4)
Other finance items (29.8) 74.4
Net finance expense (68.2) 16.0
Interest income increased from $5.0 million in 2021 to $40.2 million in 2022, mainly due to an increase in average interest rates.
Interest expense increased from $63.4 million in 2021 to $78.6 million in 2022, again mainly reflecting an increase in average interest rates, partially
offset by the decrease in the average relevant borrowing balances (after taking account of borrowings where the interest is capitalised).
Other finance items were a net loss of $29.8 million, compared with a net gain of $74.4 million in 2021, a variance of $104.2 million. This was largely
due to the foreign exchange impact of the retranslation of Chilean peso denominated assets and liabilities, which resulted in a $12.8 million loss in 2022
compared with a $49.7 million gain in 2021. In addition, there was a negative year-on-year variance of $41.7 million related to the discounting of
long-term provisions, largely driven by the increase in discount rates in 2021 resulting in a decrease in the provision balances and a corresponding
credit recognised in other finance items in the prior year.
Profit before tax
As a result of the factors set out above, profit before tax decreased by 26.4% to $2,558.9 million (2021 – $3,477.1 million).

Strategic Report
Income tax expense

The tax charge for 2022 excluding exceptional items decreased by $729.3 million to $603.6 million (2021 – $1,332.9 million) and the effective tax rate
for the year was 37.4% (2021 – 36.5%). Including exceptional items, the tax charge for 2022 was $603.6 million and the effective tax rate was 23.6%.
The following table provides a numerical reconciliation between the accounting profit before tax multiplied by the applicable statutory tax rate and
the total tax expense (including both current and deferred tax).
Year ended Year ended Year ended Year ended
excluding exceptional items including exceptional items excluding exceptional items including exceptional items
31.12.2022 31.12.2022 31.12.2021 31.12.2021
$m % $m % $m % $m %
Profit before tax 1,614.2 2,558.9 3,654.7 3,477.1

Profit before tax multiplied by Chilean
corporate tax rate of 27% (435.9) 27.0 (691.0) 27.0 (986.8) 27.0 (938.8) 27.0
Mining Tax (royalty) (94.5) 5.8 (94.5) 3.7 (243.8) 6.7 (243.8) 7.0
Deduction of mining royalty as an allowable
expense in determination of first category tax 23.1 (1.4) 23.1 (0.9) 67.8 (1.9) 67.8 (1.9)
Items not deductible from first category tax (33.9) 2.1 (33.9) 1.3 (31.6) 0.9 (31.6) 0.9
Adjustment in respect of prior years (2.6) 0.1 (2.6) 0.1 (12.1) 0.3 (12.1) 0.3
Withholding tax (73.0) 4.6 (73.0) 2.9 (195.0) 5.3 (195.0) 5.6
Tax effect of share of profit of associates and joint
ventures 13.0 (0.8) 13.0 (0.5) 16.1 (0.4) 16.1 (0.5)
Impact of unrecognised tax losses on current tax 0.2 – 0.2 – 52.5 (1.4) 52.5 (1.5)
Recognition of previously unrecognised tax losses
on deferred tax – – – – – – 90.6 (2.6)
Provision against carrying value of assets – – – – – – (48.0) 1.4
Gain on disposal of investment in joint venture – – 255.1 (10.0) – – – –
Tax expense and effective tax rate
for the year ended (603.6) 37.4 (603.6) 23.6 (1,332.9) 36.5 (1.242.3) 35.7
The effective tax rate excluding exceptional items of 37.4% varied from Disposal of investment in Tethyan joint venture
the statutory rate principally due to the mining tax (royalty) (net impact of On 15 December 2022 Antofagasta entered into definitive agreements to
$71.4 million/4.4% including the deduction of the mining tax (royalty) as exit its interest in the Tethyan joint venture. As a result, Antofagasta has
an allowable expense in the determination of first category tax), the recognised a gain on disposal of its investment in the joint venture as at
withholding tax relating to the remittance of profits from Chile (impact 15 December 2022 of $944.7 million. Full details of the agreements and
of $73.0 million/4.6%), items not deductible for Chilean corporate tax gain on disposal are set out in Note 17 to the financial statements.
purposes, principally the funding of expenses outside of Chile (impact of 2021 – Impairment of Twin Metals’ assets
$33.9 million/2.1%) and adjustments in respect of prior years (impact of In 2021 an impairment was recognised in respect of the $177.6 million of
$2.6 million/0.1%), partly offset by the impact of the recognition of the intangible assets and property, plant and equipment relating to the Twin
Group’s share of profit from associates and joint ventures, which are Metals project.
included in the Group’s profit before tax net of their respective tax
charges (impact of $13.0 million/0.8%). 2021 – Recognition of previously unrecognised deferred tax assets
At 31 December 2021, the Group recognised $90.6 million of previously
The impact of the exceptional items on the effective tax rate including unrecognised deferred tax assets relating to tax losses available for
exceptional items was $255.1 million/10.0%. Further details of the offset against future profits, reflecting the improved actual and forecast
exceptional gain on the disposal of the Group’s investment in the Tethyan profitability of the relevant Group entity (Antucoya).
joint venture, including relevant tax aspects, are set out in Note 17 to the
financial statements. Non-controlling interests
Profit for 2022 attributable to non-controlling interests (excluding
Exceptional items exceptional items) was $422.3 million, compared with $917.4 million
Exceptional items are material items of income and expense which are in 2021, a decrease of $495.1 million. This reflected the decrease in
non-regular or non-operating and typically non-cash, including earnings analysed above.
impairments and profits or losses on disposals. The tax effect of items
presented as exceptional is also classified as exceptional, as are material
deferred tax adjustments that relate to more than one reporting period.
The classification of these types of items as exceptional is considered to
be useful as it provides an indication of the underlying earnings
generated by the ongoing businesses of the Group.

Earnings per share
$ cents $ cents
Underlying earnings per share (excluding exceptional items) 59.7 142.5

Earnings per share (exceptional items) 95.8 (11.6)
Earnings per share (including exceptional items) 155.5 130.9
Earnings per share calculations are based on 985,856,695 ordinary shares.

As a result of the factors set out above, the underlying profit attributable to equity shareholders of the Company (excluding exceptional items) was
$588.3 million compared with $1,404.4 million in 2021, giving underlying earnings per share of 59.7 cents per share (2021 – 142.5 cents per share).
The profit attributable to equity shareholders (including exceptional items) was $1,533.0 million, resulting in earnings per share of 155.5 cents per
share (2021 – 130.9 cents per share).
Dividends
Dividends per share proposed in relation to the period are as follows:
$ cents $ cents
Ordinary dividends:
Interim 9.2 23.6
Final 50.5 118.9
Total dividends to ordinary shareholders 59.7 142.5
The Board determines the appropriate dividend each year based on consideration of the Group’s cash balance, the level of free cash flow and
underlying earnings generated during the year and significant known or expected funding commitments. It is expected that the total annual dividend for
each year would represent a payout ratio based on underlying net earnings for that year of at least 35%.
The Board has recommended a final dividend for 2022 of 50.5 cents per ordinary share, which amounts to $497.6 million and will be paid on 12 May
2023 to shareholders on the share register at the close of business on 21 April 2023.
The Board declared an interim dividend for the first half of 2022 of 9.2 cents per ordinary share, which amounted to $90.7 million.
This gives total dividends proposed in relation to 2022 (including the interim dividend) of 59.7 cents per share or $588.3 million in total (2021
– 142.5 cents per ordinary share or $1,404.8 million in total) equivalent to a payout ratio of 100% of underlying earnings.
Capital expenditure
Capital expenditure increased by $101.7 million from $1,777.5 million in 2021 to $1,879.2 million in the current year, mainly due to increased sustaining
capex at Centinela, Los Pelambres and Antucoya, increased mine development at Los Pelambres and Centinela, offset by lower expenditure on the
Esperanza Sur pit at Centinela and the Los Pelambres Expansion project.
NB: capital expenditure figures quoted in this report are on a cash flow basis, unless stated otherwise.
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. At 31 December 2022 there were no derivative financial
instruments in place (2021 – nil).

Strategic Report
Cash flows
The key features of the cash flow statement are summarised in the following table.
$m $m
Cash flows from continuing operations 2,738.3 4,507.7

Income tax paid (787.1) (776.9)
Net interest paid (45.2) (53.3)
Capital contributions and loans to associates – (33.5)
Purchases of property, plant and equipment (1,879.2) (1,773.0)
Acquisition of mining properties – (4.5)
Acquisition of equity investments (66.5) –
Dividends paid to equity holders of the Company (1,262.9) (710.8)
Dividends paid to non-controlling interests (80.0) (604.5)
Dividends from associates and joint ventures 50.0 142.5
Other items 0.1 1.4
Changes in net debt relating to cash flows (1,332.5) 695.1
Other non-cash movements (70.4) (73.8)
Effects of changes in foreign exchange rates (23.4) 1.2
Movement in net debt in the period (1,426.3) 622.5
Net cash/(net debt) at the beginning of the year 540.5 (82.0)
(Net debt)/net cash at the end of the year (885.8) 540.5
Cash flows from continuing operations were $2,738.3 million in 2022 compared with $4,507.7 million in 2021. This reflected EBITDA from
subsidiaries for the year of $2,777.5 million (2021 – $4,666.9 million) adjusted for the negative impact of a net working capital increase of $12.7 million
(2021 – working capital increase of $140.2 million) and a non-cash decrease in provisions of $26.5 million (2021 – decrease of $19.0 million).
The working capital increase in 2022 was mainly due to the increase of work in progress inventories in the Mining division and an increase in finished
goods inventories at Centinela, partially offset by a decrease in receivables, reflecting the lower average mark-to-market price at 31 December 2022
of $3.80/lb (31 December 2021 – $4.42/lb) and lower sales volumes towards the end of the current period compared with the end of 2021, and
an increase in creditors.
The net cash outflow in respect of tax in 2022 was $787.1 million (2021 – $776.9 million). This amount differs from the current tax charge in the
consolidated income statement (including exceptional items) of $448.8 million (2021 – $1,035.5 million) mainly because cash tax payments for
corporate tax and the mining tax include the settlement of outstanding balances in respect of the previous year’s tax charge of $332.2 million (2021
– $30.9 million), withholding tax payments of $24.5 million, payments on account for the current year based on the prior year’s profit levels of
$435.6 million, as well as the recovery of $5.1 million relating to prior years.
Contributions and loans to associates and joint ventures were nil (2021 – $33.5 million, relating to Hornitos and Tethyan).
Capital expenditure in 2022 was $1,879.2 million compared with $1,777.5 million in 2021. This included expenditure of $889.7 million at Los Pelambres
(2021 – $880.4 million), $857.0 million at Centinela (2021 – $791.8 million), $66.9 million at Antucoya (2021 – $49.6 million), $10.8 million at the
corporate centre (2021 – $24.4 million) and $54.8 million at the Transport division (2021 – $31.3 million). The increase in sustaining capex at Centinela
and Los Pelambres, and increased mine development at Los Pelambres and Centinela, was partially offset by less expenditure on the Esperanza Sur
pit at Centinela.
Dividends paid to equity holders of the Company were $1,262.9 million (2021 – $710.8 million) of which $1,172.1 million related to the payment of the
previous year’s final dividend and $90.7 million to the interim dividend declared in respect of the current year.
Dividends paid by subsidiaries to non-controlling shareholders were $80.0 million (2021 – $604.5 million).
Dividends received from associates and joint ventures were $50.0 million for 2022 (2021 – $142.5 million).
Financial position
At 31.12.22 At 31.12.21
$m $m
Cash, cash equivalents and liquid investments 2,391.2 3,713.1

Total borrowings (3,277.0) (3,172.6)
(Net debt)/net cash at the end of the period (885.8) 540.5

At 31 December 2022, the Group had combined cash, cash equivalents Cautionary statement about forward-looking statements
and liquid investments of $2,391.2 million (31 December 2021 – $3,713.1 This Annual Report contains certain forward-looking statements. All
million). Excluding the non-controlling interest share in each partly- statements other than historical facts are forward-looking statements.
owned operation, the Group’s attributable share of cash, cash Examples of forward-looking statements include those regarding the
equivalents and liquid investments was $1,990.9 million (31 December Group’s strategy, plans, objectives or future operating or financial
2021 – $3,299.9 million). performance, reserve and resource estimates, commodity demand and
Total Group borrowings at 31 December 2022 were $3,277.0 million, trends in commodity prices, growth opportunities, and any assumptions
an increase of $104.4 million on the prior year (31 December 2021 underlying or relating to any of the foregoing. Words such as “intend”,
– $3,172.6 million). The increase was mainly due to the $488.5 million “aim”, “project”, “anticipate”, “estimate”, “plan”, “believe”, “expect”,
from the issue of the new corporate bond, $327.4 million of additional “may”, “should”, “will”, “continue” and similar expressions identify
drawdown for the Los Pelambres Expansion project, a $50.0 million forward-looking statements.
refinancing of the senior loan at Antucoya and $51.3 million of new Forward-looking statements involve known and unknown risks,
finance leases, partly offset by a $686.1 million repayment of the senior uncertainties, assumptions and other factors that are beyond the
loans at Corporate ($500.0 million), Centinela ($111.1 million), Los Group’s control. Given these risks, uncertainties and assumptions, actual
Pelambres ($50.0 million) and Antucoya ($25.0 million), $35.0 million results could differ materially from any future results expressed or
repayment of Antucoya’s short term loan and $19.6 million of implied by these forward-looking statements, which apply only as at the
subordinated debt repayment by Antucoya. date of this report. Important factors that could cause actual results to
Excluding the non-controlling interest share in each partly-owned differ from those in the forward-looking statements include: global
operation, the Group’s attributable share of the borrowings was economic conditions, demand, supply and prices for copper and other
$2,449.7 million (31 December 2021 – $2,409.6 million). long-term commodity price assumptions (as they materially affect the
timing and feasibility of future projects and developments), trends in the
These movements resulted in net debt at 31 December 2022 of copper mining industry and conditions of the international copper
$885.8 million (31 December 2021 – net cash $540.5 million). Excluding markets, the effect of currency exchange rates on commodity prices and
the non-controlling interest share in each partly-owned operation, the operating costs, the availability and costs associated with mining inputs
Group had an attributable net debt position of $458.7 million and labour, operating or technical difficulties in connection with mining
(31 December 2021 – net cash $890.3 million). or development activities, employee relations, litigation, and actions and
Going concern activities of governmental authorities, including changes in laws,
The consolidated financial information contained in the financial regulations or taxation and decisions relating to permitting. Except
statements has been prepared on the going concern basis. Details of the as required by applicable law, rule or regulation, the Group does not
factors which have been taken into account in assessing the Group’s undertake any obligation to publicly update or revise any forward-looking
going concern status are set out in Note 1 to the financial statements. statements, whether as a result of new information, future events
or otherwise.
Past performance cannot be relied on as a guide to future performance.
The Strategic Report has been approved by the Board and signed
on its behalf by:
Jean-Paul Luksic Tony Jensen

Chairman Senior Independent Director

Corporate Governance
Governance “As the impacts of the COVID-19

pandemic began to fade, I was
delighted that our entire Board
was able to meet in person for
Applying the Code in 2022 104
Board leadership and Company purpose
the first time since early 2020.
Chairman’s introduction
Senior Independent
106
Our experiences during the
Director’s introduction 108 pandemic have allowed us to
Group corporate governance overview 110
Board activities 112
become more flexible while at
Stakeholder engagement 114 the same time reminding us of
Workforce engagement 116
the importance of human
Division of responsibilities
Directors’ biographies 118 connection and the opportunity
Board balance and skills 120 to share ideas and perspectives.”
Roles in the boardroom 121
Executive Committee biographies 122 Jean-Paul Luksic
Introduction to the Committees 124 Chairman
Composition, succession and evaluation

Nomination and Governance
Committee report 125
Board effectiveness 128
Audit, risk and internal control
Audit and Risk Committee report 129
Sustainability and Stakeholder
Management Committee report 137
Projects Committee report 140
Remuneration
Committee Chair’s introduction 142
Remuneration at a glance 146
2023 Directors’ and CEO's
Remuneration Policy 148
2022 Directors’ and CEO's
Remuneration Report 155
Committee report 163
Implementation of the Directors’ and
CEO’s remuneration policy in 2023 165
Directors’ Report 168
Statement of Directors’
responsibilities 171

/ Applying the Code in 2022
How we apply the Code
UK Corporate Governance Code How the Code principles were applied in 2022
compliance statement Board leadership and Company purpose
The UK Corporate Governance Code issued by the Financial Reporting The role of the Board
Council in July 2018 sets out the governance principles and provisions • The Company is led by an effective and entrepreneurial Board, which
that applied to the Company during 2022. is collectively responsible for promoting the Company’s long-term
sustainable success, generating value for shareholders and
The Code is not a rigid set of rules, it consists of principles and
contributing to wider society as shown throughout this Corporate
provisions. The Listing Rules require companies to apply the principles
Governance Report.
and report to shareholders on how they have done so. This Corporate
Governance Report shows how these principles have been considered • The Board has adopted and actively promotes the Group’s purpose,
and applied to the Company’s specific circumstances. vision, values and strategy and has satisfied itself that they are aligned
with its culture – pages 18-21 and 112.
The Company complied with all the principles and detailed provisions of • The Board has ensured that the necessary resources are in place for
the Code in 2022 except for Code Provisions 9 and 19. Code Provision 9 the Company to meet its objectives and measure performance against
recommends that the Chairman should be independent on appointment them. It has established both its risk appetite and a framework of
when assessed against the circumstances set out in Provision 10 and prudent and effective controls, which enable risk to be appropriately
Code Provision 19 recommends that the Chairman should not remain in assessed and managed – pages 24-35.
post beyond nine years from the date of first appointment to the Board.
• The Board ensures effective engagement with, and encourages
The Company’s Chairman, Jean-Paul Luksic, was appointed to the participation from, shareholders and other stakeholders to ensure
Board in 1990. He served as CEO of the Group’s Mining division from that its responsibilities are met – pages 38-73, 106, 108, 114-115,
1998 until 2004 and was appointed Executive Chairman in 2004. 121, 143 and 164.
In 2014, he stepped back from executive responsibilities to become • The Board ensures that workforce policies and practices are consistent
Non-Executive Chairman, a role he has continued to hold since then. with the Company’s purpose, vision and values and supports its
Mr Luksic’s longstanding UK corporate governance and Chilean mining long-term sustainable success. The workforce can raise any matters
and business experience, coupled with his knowledge of the Group’s of concern anonymously through the Group’s whistleblowing channels
businesses have been for many years, and continue to be, a cornerstone – pages 36, 48-50, 116-117, 134-135 and 142-167.
of the Company’s continuing growth and success. • The Board considers the matters set out in section 172 of the
Mr Luksic is also a member of the family that is interested in the Companies Act 2006 in Board discussions and decision-making –
E. Abaroa Foundation, a controlling shareholder of the Company for the pages 38-73. Detailed examples can be found on pages 114-115.
purposes of the UK Listing Rules and is therefore uniquely positioned to
Division of responsibilities
ensure that the interests of shareholders, together with the interests of
• The Board is structured to ensure that no one individual or small
other stakeholders (many of whom are based in Chile), are taken into
group of individuals dominates its decision-making, as demonstrated
account to promote the long-term sustainable success of the Company
throughout this Corporate Governance Report.
and to promote governance that the Board is convinced is best for the
Company’s particular circumstances in the long term. • The CEO is not a Director of the Company and is therefore not
a member of the Board – page 121.
Mr Luksic is committed to wider succession and diversity planning and, • There is a clear division of responsibilities between the Board
in his roles as Chairman of the Board and Chair of the Nomination and and the executive leadership of the Company’s business – pages 110,
Governance Committee, he has overseen the design and implementation 120 and 121.
of succession plans to increase diversity, including gender, and
• The division of responsibilities between the Chairman, the CEO and
continually refresh the Board.
the Senior Independent Director is recorded in writing and is available
The Board considers that Mr Luksic continues to demonstrate objective on the Company’s website at antofagasta.co.uk.
judgement and provide constructive challenge and leadership, and • The roles of the Board and the Board Committees are recorded
believes that his continued appointment is appropriate without fixing a in the Schedule of Matters Reserved for the Board and the Terms
limit to his length of service. The Company’s major shareholders were of Reference for each of the Board’s Committees, all of which are
invited by the then Senior Independent Director to discuss this subject available on the Company’s website at antofagasta.co.uk.
ahead of the 2020 AGM when Code Provision 19 was introduced and • The Board, supported by the Company Secretary, has the policies,
unanimously expressed their support for Mr Luksic’s continued service processes, information, time and resources it needs in order to
as Chairman of the Board. function effectively and efficiently – pages 111 and 126.
The composition of the Board and its Committees is entirely in line with The Chairman
the Code provisions and the Chairman is fully supported by the Board, • The Chairman leads the Board and is responsible for its overall
the Nomination and Governance Committee and the Senior Independent effectiveness in directing the Company. His responsibilities
Director in ensuring that, despite non-compliance with Code Provisions are set out on page 121.
9 and 19, good governance is maintained.
• The Board considers that the Chairman demonstrates objective
Further details on the composition of the Board and its Committees judgement and promotes a culture of openness, healthy challenge
are set out on page 118 and further details of the role of the Senior and debate – pages 104 and 108.
Independent Director are set out on pages 108 and 121. • The Chairman facilitates constructive Board relations and the effective
The UK Corporate Governance Code is available on the Financial contribution of all Directors. He is responsible for setting the Board’s
Reporting Council website at www.frc.org.uk. agenda and ensuring that Directors receive accurate, timely, relevant
and clear information – pages 111, 121 and 126.
Non-Executive Directors Evaluation
• The Non-Executive Directors provide constructive challenge • Annual evaluation of the Board considers composition, diversity
and strategic guidance, offer perspectives across various specialisms and how effectively members work together to achieve objectives –
and hold management to account – pages 118-120. page 128.
Commitment • Individual evaluation is part of the annual Board evaluation and
• All Directors have confirmed that they are able to allocate enough assesses whether each Director continues to contribute effectively
time to meet the expectations of their role – page 118. – page 128.
• Directors do not undertake additional external appointments without • An externally facilitated Board and Committee effectiveness review
the Board’s prior approval – page 118. was conducted in 2022 – page 128.
• Time commitment is considered during Board effectiveness reviews Re-election
and when electing and re-electing Directors – pages 125-128. • All Directors stand for re-election by shareholders annually.
• A review of Directors’ external directorships is carried out annually
Audit, risk and internal control
– pages 109 and 169.
Governance
Information and support • The Board has established formal and transparent policies and
• The Board is provided with appropriate information in a form procedures to ensure the independence and effectiveness of internal
and of a quality to discharge its duties – page 111. and external audit functions and to satisfy itself on the integrity of
• The Board has access to independent professional advice and to the financial and narrative statements – pages 129-136.
advice and services of the Company Secretary – pages 121 and 126. Financial and business reporting
• The Board is regularly updated on the Group’s performance between • The Board considers that the Annual Report presents a fair, balanced
scheduled Board meetings – page 111. and understandable assessment of the Company’s position and
prospects – page 171.
Composition, succession and evaluation
Composition of the Board and Committees Risk and internal control
• The Board has 10 Directors, comprising a Non-Executive Chairman • The Board has established procedures to manage risk, oversee the
and nine other Non-Executive Directors, six of whom were internal control framework and determine the nature and extent of the
independent in 2022 and five of whom continue to be independent principal risks the Company is willing to take in order to achieve its
as at the date of this Annual Report – pages 118-121. long-term strategic objectives – pages 24-35 and 134-136.
• All members of the Audit and Risk and Remuneration and Talent Experience and competence
Management Committees are independent and two • All Audit and Risk Committee members are considered to have recent
of the three Nomination and Governance Committee members and relevant financial experience and have competence relevant to
are independent – pages 118-119. the mining industry – pages 118-120.
• The Board and its Committees comprise Directors with the requisite
combination of skills, experience and knowledge to fulfil their roles – Remuneration
pages 118-121. Policy
• There is a diverse pipeline for succession. Consideration is given • The Company has no executive Directors; however, the CEO’s
to the length of service of the Board as a whole and membership remuneration is disclosed as if he were a director.
is regularly refreshed – pages 120 and 125-127. • The Directors’ and CEO’s Remuneration Policy, which is being
submitted for approval by shareholders at the 2023 AGM, is aligned to
Appointments to the Board and succession planning the Company’s purpose, vision and values and is clearly linked to the
• There is a formal, rigorous and transparent process, led by the successful delivery of the Company’s long-term strategy – pages
Nomination and Governance Committee, to identify and appoint new 142-143, 148-154 and 161.
Directors – pages 125-127.
• The Remuneration and Talent Management Committee Chair,
• Independent external search consultancies are used for appointments Francisca Castro, served as a member of the Committee for more
to the Board – pages 126-127. than 12 months before being appointed as Chair.
• An effective succession plan is maintained for Board and senior • The CEO’s remuneration includes transparent, stretching and
management appointments – pages 126-127 and 164. rigorously applied performance-related elements designed to promote
• Appointments and succession plans are based on merit and the Company’s long-term sustainable success – pages 142-166.
objective criteria and promote diversity of gender, social and ethnic
backgrounds, cognitive and personal strengths and experience – Procedure
page 126. • The Board has a formal and transparent procedure for developing
policy on executive remuneration and determining Director and senior
Development management remuneration – pages 142-167.
• New Directors receive a thorough induction upon joining the Board • No Director, nor the CEO, is involved in deciding his or her own
– pages 126 and 128. remuneration.
• Directors are regularly updated with information and training and, • Directors exercise independent judgement and discretion when
as a minimum, receive an annual briefing on legal, regulatory, market authorising remuneration outcomes, taking account of Company
and other developments relevant to Directors of UK-listed and individual performance and wider circumstances including
companies – page 126. internal and external factors – pages 142-148.

/ Chairman’s introduction
Our governance
framework
Audit and Risk Management
The Board, led by the Audit and Risk Committee, conducted a tender
process for the appointment of the Group’s auditor in 2024. This was
done a year earlier than is required by regulation to give time to ensure
a smooth transition of audit and non-audit services, and in anticipation
of the implementation of UK audit and corporate governance reforms.
Deloitte will take over the external audit from PwC for the 2024 financial
year onwards and shareholders will be asked to confirm this appointment
at the 2024 AGM.
Our Commitment to Environmental, Social and Governance
(ESG) Issues
Our efforts on climate change are an integral part of our ESG strategy,
but far from the only ones. The copper we produce has a key role to play
in a net-zero world: our responsibility is to produce it sustainably, efficiently,
and with respect for local communities and the environment.
Jean-Paul Luksic ESG considerations are integrated into our business and we are working
Chairman with our suppliers, not just in the application of our safety standards, but also
of our sustainability practices. In 2022, Antofagasta set new standards for
Dear shareholders sustainability for our suppliers, and by doing so we plan to gradually align
Welcome to the Corporate Governance section of our 2022 Annual Report. their ESG capabilities with our own. Whether it’s lowering emissions or
My introductory letter to this Annual Report sets out some of the Group’s ensuring that mining becomes more diverse and inclusive, such partnerships
key challenges and achievements in 2022 and my reflections on the will deliver progress in areas that are fundamental to our purpose:
outlook for 2023, and illustrates the Board’s ability to navigate these “Developing Mining for a Better Future”.
scenarios supported by our strong and effective governance framework. Stakeholder engagement
As the impacts of the COVID-19 pandemic began to fade, I was delighted With the pandemic subsiding, our Directors have been making site visits
that our entire Board was able to meet in person for the first time since to at least one of our operations, including to the desalination plant and
early 2020. Our experiences during the pandemic have allowed us to concentrator plant expansion projects, and to Los Pelambres’ tailings
become more flexible while at the same time reminding us of the dams. The insights from these visits were shared at board and committee
importance of human connection and the opportunity to share ideas meetings, deepening the directors’ understanding of our activities.
and perspectives.
External Board evaluation
Shareholder engagement We always seek for continuous improvement in all that we do, and the
We were pleased to welcome shareholders to our first hybrid AGM in Board and its governance are no exception. During 2022, Clare Chalmers
2022, opening the doors for shareholders to attend in person while also conducted an external comprehensive independent Board evaluation. Clare
allowing shareholders to engage from afar. Once again, we will be attended several Board and Committee meetings, interviewed Directors,
hosting a hybrid AGM in 2023. senior management and key external advisers, and travelled to Chile to
deliver her findings to the Board.
As the year progressed, our Senior Independent Director and Chair
of the Audit and Risk Committee, Tony Jensen, and our Chair of the Further details regarding Clare’s evaluation can be found on page 128.
Remuneration and Talent Management Committee, Francisca Castro, met
Board changes and succession planning
with shareholders and proxy voting agencies in a mix of in-person and
Vivianne Blanlot has served on our Board with dedication for nine years
virtual meetings. They discussed our approach to corporate governance
as of 27 March 2023. Although she has agreed to continue as a Director,
and Antofagasta’s 2023 remuneration policy, which is being tabled for
she is no longer considered to be “independent” according to the Board’s
shareholder approval at the 2023 AGM, while providing shareholders
tenure policy, which aligns with the Code’s guidance. As a result, she has
and proxy advisers with the opportunity to share their perspectives.
rotated off the Nomination and Governance Committee and Remuneration
Details of these meetings can be found in the Senior Independent and Talent Management Committee, and has been appointed to the
Director’s introduction on page 108 and the Remuneration and Talent Projects Committee. She has also agreed to continue serving as Chair
Management Committee Chair’s introduction on page 142. of the Sustainability and Stakeholder Management Committee.
Diversity and Inclusion To fill these vacancies, Francisca Castro has joined the Nomination and
An issue that was discussed with shareholders, which is important to Governance Committee and Eugenia Parot has joined the Remuneration
our Board, was diversity–particularly gender diversity. Since 2014, half and Talent Management Committee.
of our appointments to the Board have been female and women now At its core, Antofagasta is a long-term business. Our mines operate
make up 30% of our Board. However, we are actively searching for on decades-long timelines, and our governance structures and processes
another female director to join our board and aim to meet the UK’s new are designed to help us achieve long-term sustainable success.
targets on gender diversity, while also continuing to build a pipeline of
female talent across the organisation. I’d like to thank you all for your ongoing engagement and look forward
to having the opportunity to meet with you at our AGM.
Further information on the Board’s diversity policy can be found in the
Nomination and Governance Committee Report on page 126. Jean-Paul Luksic
Chairman

BOARD OVERSIGHT OF CLIMATE-RELATED appointments to the Board. This matrix includes sustainability
experience (which includes competence on climate related issues)
RISKS AND OPPORTUNITIES as a key skill and the Board ensures that there is an adequate depth
The Board has ultimate responsibility for the Group’s climate-related of climate change knowledge and awareness on the Board when
objectives and strategy. The Board’s oversight of climate-related risks making new appointments. In 2022, the Board’s externally
and opportunities is fully integrated within our governance structures. facilitated evaluation also included a review of the Board’s ESG
This responsibility and oversight includes specific climate related focus, including in relation to climate related matters.
activities such as approving the Group’s Climate Change Strategy, • As shown on pages 129-136, the Audit and Risk Committee assists
approving emission reduction targets, monitoring implementation the Board in overseeing the Group’s risk management framework,
of the Climate Change Strategy and approving the Company’s TCFD including climate change risk.
disclosures. This also includes more general approval and oversight
• As shown on pages 137-139, the Sustainability and Stakeholder
responsibilities which incorporate climate-related risks and
Management Committee considers climate change when
opportunities such as reviewing and approving the Group’s capital
reviewing and monitoring relevant strategy, policies and
allocation framework which includes criteria relating to climate
performance matters. In 2022, this included reviewing a progress
resilience and an internal carbon price, reviewing and approving the
report on the development of an inventory of Scope 3 emissions
Group’s base and development case models which include adjustments
and next steps and reviewing the water situation in the Choapa
for physical and transition risks associated with climate change,
Valley after 13 years of lower-than-normal rainfall and Los
approving the Group’s annual budget, reviewing the Group’s principal
Pelambres’ water strategy.
and emerging risks which include climate change and approving KPIs
• As shown on pages 140-141, the Projects Committee considers
in the Group’s remuneration structures that reward our employees for
climate change when reviewing and monitoring the Group’s major
progress in relation to achieving the Group’s climate-related objectives.
capital projects. In 2022, this included reviewing ore transport
In 2022, the Board dedicated part of its annual strategy session to alternatives for the Polo Sur project taking into account the Group’s
reviewing the financial implications of climate change on the Group. internal carbon price.
The Board is supported by all of the Board’s committees in ensuring • As shown on pages 142-167, the Remuneration and Talent
that climate-related considerations are fully integrated into the Board’s Management Committee monitors executives and managers’ short-
governance structures. For example: and long-term incentive plans which include KPIs relating to climate
change such as progress towards the achievement of climate
• As shown on pages 125-128, the Nomination and Governance
targets, alignment to the Copper Mark and implementation of the
Committee considers the Board’s skills matrix when making
Climate Change Strategy.

/ Senior Independent Director’s introduction
Board balance
“The feedback we received

from our meetings
with shareholders was
reported to the Board
and is reflected in the
decisions that have been
made in the preparation
of this Corporate
Tony Jensen
Senior Independent Director
Governance report.”
Q. What are your responsibilities as Senior relating to the Board’s diversity policy and progress towards
Independent Director? achieving the new targets set out in the Listing Rules, the Board’s
I have three main responsibilities as Senior Independent Director. oversight of ESG matters, including carbon emission reduction
First, I must be available to shareholders to ensure that the Board targets, Directors’ time commitments and the role of the
considers their views, interests and concerns. Second, I provide controlling shareholder in the Board’s governance arrangements.
support to the Chairman, ranging from advice on corporate The feedback we received from these meetings was reported to
governance matters to presiding over potential conflict of interest the Board and is reflected in the decisions that have been made
decisions by the Board, and making sure that the views of the in the preparation of this Corporate Governance report.
other Directors are conveyed to him and reflected in Board
discussions. Third, I lead the annual review of the Chairman’s
Q. What impact does the controlling shareholding have on
performance and oversee the closure of any gaps identified by
Company decisions?
Members of the Luksic family have been involved in the Company
internal and externally facilitated reviews of the Board’s and the
for over 40 years. During this time, the Company has
Committees’ performance.
demonstrated an excellent track record in terms of safety,
I discharge these responsibilities through close co-ordination with operational performance and financial strength.
the Chairman, Directors, Company Secretary and the management
I have discussed the role of the controlling shareholders with other
team. I met various shareholders and proxy advisers during the
shareholders. The widely held view is that the substantial
year to understand their views of the Company, Board and senior
controlling interest is positive, with shareholders satisfied that
management team. This has helped me ensure that the Chairman,
the interests of the controlling shareholders are aligned with
the Board and the management team receive a balanced view
theirs. They have expressed their appreciation of the members
of issues that are relevant and important for our shareholders.
of the Luksic family who serve on the Board, commending their
Q. Why did you meet with shareholders and proxy advisers long-term vision, which has contributed to the Company’s prudent
during the year and what issues did you discuss? operating, financial and growth strategy, as well as its stability.
As Senior Independent Director and Chair of the Audit and Risk Shareholder support is, of course, conditional on the strength of
Committee, I aim to meet with shareholders every one to two the current corporate governance framework, which rigorously
years to gain a first-hand understanding of the subjects that protects the interests of all shareholders equally.
matter to them. This year, I joined the Chair of our Remuneration
and Talent Management Committee, Francisca Castro, in inviting I, and all the other Independent Directors, guard our independence
the Company’s 15 largest investors as well as the Investment and place a strong emphasis on maintaining this governance and
Association, Glass Lewis and Institutional Shareholder Services protection regime. We are supported and encouraged by the other
to meet with us to discuss Corporate Governance matters, the Directors who – like the Independent Directors – bring their own
Company’s proposed 2023 remuneration policy (as explained in perspectives and opinions and are committed to the long-term
more detail on pages 149-154) and to allow shareholders to raise sustainable success of the Company.
any concerns that they would like to discuss without the presence The controlling shareholders and the members of the Luksic
of the senior management team. The feedback we received was family who serve on the Board (including the Chairman), actively
very positive and no major concerns were raised. Apart from the support this framework and encourage the Independent Directors
discussion of remuneration-related matters, which is outlined in to provide the independent input and challenge that, we are
more detail by Francisca on page 149, we engaged in discussions convinced, proves invaluable in Board decision-making.
Tony Jensen
108 Antofagasta plc Annual Report 2022 Senior Independent Director
Relationship agreement transactions between the Company and the controlling shareholders
The E. Abaroa Foundation is a controlling shareholder of the Company or their related entities to a committee of Directors independent from
for the purposes of the Listing Rules and certain other shareholders the controlling shareholders, to assess whether the Company should
of the Company (including Aureberg Establishment) are also treated enter into such transactions and, if so, to oversee the negotiation
as controlling shareholders. Details of the Company’s substantial process. In most cases, transactions of this nature will also be subject
shareholders are set out on page 169. to independent review by third-party shareholders in each of the
Group’s mining operations.
In 2014, the Company entered into relationship agreements with each
controlling shareholder, which contain the mandatory independence Any proposed related party transaction over $40 million, whether
provisions required by the Listing Rules. The Company complied with or not in the ordinary course of business, is also tabled for Board
and, so far as the Directors are aware, each controlling shareholder approval. Any Director with a potential conflict or connection with
and its associates (including Metalinvest Establishment and Kupferberg the related party does not take part in the decision on that transaction.
Establishment) also complied with the mandatory independence
provisions throughout 2022.
Related party governance in practice
There are several checks and balances to ensure that there is full
Related party transactions transparency in the handling of related party transactions by the
Certain related party transactions outside the ordinary course of Board. The following diagram summarises the approach taken to
business must be subject to independent assessment and approval. identify and manage related party transactions and actual or potential
The Company has for many years presented all such related party conflicts of interest.
Identifying Directors’ interests
Process How this is managed Responsibility
MONITORING If a Director has an interest in any other entity, the Board will normally Directors
OF DIRECTORS’ consider that interest under its arrangements for authorising potential
INTERESTS conflicts of interest under section 175 of the Companies Act. See page 169
for more information.
Managing related party transactions
Process How this is managed Responsibility
PROPOSED Ongoing monitoring of Directors’ interests and the Company’s related parties Company Secretary,
TRANSACTION provides information to determine whether a related party approval is senior management and
required for a proposed transaction. the Executive Committee
CONTRACT NEGOTIATION The Executive Committee seeks to ensure that the best possible terms are Senior management and
AND VERIFICATION achieved for a proposed transaction and that, where appropriate or the Executive Committee
necessary, they are verified by industry benchmarking reports or independent and, if involving a
third-party valuation or assessment. controlling shareholder,
Independent Directors
If the potential transaction is between the Group and a controlling shareholder
or its associates and is a transaction to which the UK Listing Rules related
party transaction rules apply, a committee of Directors independent from the
controlling shareholder and its associates is formed to oversee and support
management with this process and to ensure compliance with the
corresponding Relationship Agreement.
APPROVAL BY Potential related party transactions outside the ordinary course of Independent Directors
INDEPENDENT DIRECTORS business that involve a controlling shareholder, or its associates, are reviewed
and if appropriate, approved by Directors independent from the controlling
shareholders.
All potential related party transactions over $40 million, whether or not in
the ordinary course of business, are approved by the Board. Any Director
with a potential conflict or connection with the related party will not take part
in that decision. Transactions within the ordinary course of business that are
below $40 million require approval by the relevant operating Company Board.
All the operating Company boards in the Mining division have Directors
representing third-party shareholders.

/ Group corporate governance overview
Our governance framework
Antofagasta plc Board Key responsibilities

The Board’s role is to promote the long-term, sustainable success of the • Culture
Company, generating value for shareholders and contributing to wider • Strategy and management
society. The Board has established the Company’s purpose, values, • Governance
strategy and risk appetite and monitors the culture of the Group • Shareholder engagement
as well as its performance against defined measures. • Internal controls, risk management and compliance
The schedule of matters reserved for the Board is available on the • Financial and performance reporting
Company’s website at antofagasta.co.uk. • Structure and capital
• Approving material transactions
Board Committees Key responsibilities

The Board has delegated authority to these Committees to perform The key responsibilities of each Committee and their focus areas
certain activities as set out in their terms of reference, which are for 2022 are set out on page 124.
available on the Company’s website at antofagasta.co.uk.
The Chair of each Committee reports to the Board following each
Committee meeting, allowing the Board to understand and, if necessary,
discuss matters in detail and to consider the Committee’s
recommendations.
The Board is assisted in discharging its responsibilities by five Board
Committees:
SUSTAINABILITY
NOMINATION AUDIT REMUNERATION AND
AND STAKEHOLDER PROJECTS
AND GOVERNANCE AND RISK TALENT MANAGEMENT
MANAGEMENT
CEO and Executive Committee

The Board has delegated day-to-day responsibility for implementing the Mr Arriagada chairs the Executive Committee.
Group’s strategy and fostering the corresponding organisational culture The Executive Committee reviews significant matters and approves
to the Company’s CEO, Iván Arriagada. expenditure within designated authority levels.
Mr Arriagada is not a Director of the Company but is invited to attend all The Executive Committee leads the annual budgeting and planning
Board and Committee meetings and is supported by the members of the processes, monitors the performance of the Group’s operations and
Executive Committee, each of whom has executive responsibility for his investments, evaluates risk and establishes internal controls, promoting
or her respective function. the sharing of best practices across the Group.
Subcommittees of the Executive Committee

Members of the Executive Committee also sit on the boards of to the market and for managing its disclosure in line with the Group’s
the Group’s operating companies and report on the activities of those current Disclosure Procedures Manual.
companies to the Board, Mr Arriagada and the Executive Committee.
The Executive Committee is assisted in its responsibilities by
The Board has delegated to the Disclosure Committee primary internal the following Subcommittees:
responsibility for identifying information that may need to be disclosed
OPERATING WATER, ENERGY

BUSINESS CLIMATE PROJECT
DISCLOSURE ETHICS PERFORMANCE & EMISSIONS
DEVELOPMENT CHANGE STEERING
REVIEW MANAGEMENT

Board and Board Committee information flows
01
06
Chairman and Senior
Further information Independent Director
provided between agree agenda with
meetings the CEO
05 02
Action lists prepared Papers circulated
and updated as key actions in advance of
are implemented meetings
04 03
Minutes prepared, Board and Committee
circulated and approved meetings
01 04
Chairman and Senior Independent Director agree agenda Minutes prepared, circulated and approved
with the CEO and the Company Secretary The Company Secretary minutes all Board and Committee
The Chairman and Senior Independent Director, in consultation with meetings, which are circulated and reviewed by the Board and
the CEO and the Company Secretary, maintain an agenda of standing management, updated as necessary and tabled for approval
topics to be considered by the Board and Committees each year, at the following meeting.
which is then supplemented, during the year, with agreed key topics
and events requiring consideration. 05
Action lists prepared and updated as key actions
Ad hoc Board and Committee meetings are also called, as appropriate.
are implemented
02 The Board and each Committee maintain an action list that is
reviewed at the beginning of each meeting to ensure that Directors’
Papers circulated in advance of meetings
enquiries and concerns are clearly identified and timely addressed.
Materials are sent to Board and Committee members a week
in advance of each meeting. 06
Presentations include a summary sheet setting out the objective, Further information provided between meetings
background, proposal, justification, risk analysis and next steps Between Board meetings, Directors receive flash reports
associated with that topic. Materials include the CEO’s report, with monthly and year-to-date production and financial results,
which is an open and candid summary of his views on evolving ensuring that the Board is regularly updated on the Group’s progress.
strategic challenges, changes in risk assessments and emerging
Where appropriate, Directors may receive general information
issues, as well as the management report which includes detailed
on the commodity markets and additional reports highlighting key
information on the Group’s performance against key safety, health,
developments in the Group’s exploration, projects, business
environmental, community, financial, workforce, project
development and innovation activities.
development and organisational culture indicators.
The Group’s management team, led by Iván Arriagada, performs
03 an essential role in ensuring that the Board has the information
Board and Committee meetings required to make effective decisions, reporting in real time on the
Board and Committee meetings include regular in-camera sessions implementation of the Group’s strategy and the Company’s
without management present to allow Directors to set expectations performance.
for the meeting and to reflect on and evaluate the meeting’s progress.
The CEO provides timely updates to the Board on emerging issues,
while executives present to the Board and its Committees on
operating and development matters, allowing close interaction
between Directors and a wide range of executive management.

/ Board activities
Board oversight in 2022
During 2022, the Board provided oversight on the pursuit of the Group’s strategy, addressed
critical issues in a timely manner and advised management on the development of strategic
priorities and plans, while seeking to align these with the values of the Group and stakeholders’
best interests.
Our strategic framework

The Board has strengthened our commitment to Developing Mining for a Better Future as the purpose that mobilises us and gives meaning
to everything we do.
We are an international mining Company focused on copper and its by-products, known for our operating efficiency, creation of sustainable value,
high profitability and as a preferred partner in the global mining industry.
We want to generate a diverse and inclusive culture, with key values shared by all. We have a Code of Ethics and our own way of doing things,
while responsibly managing our risks. To achieve this, we rely on the talent and capabilities of our workforce. Our flexible and resilient organisation
allows us to overcome current and future challenges.
Below are examples of how the Board’s activities in 2022 have furthered the Group’s strategy.
Read more about our strategic
framework on P18
Culture Internal controls, risk management and compliance

• Monitored operational and projects performance and its link with the • Reviewed the risk management system’s maturity level.
Group’s culture, particularly concerning safety and health. • Reviewed the Group’s principal and emerging risks; conducted the
• Oversaw the continued implementation of the Group’s strategic annual review of the Group’s risk appetite statements, which are
framework, including the Group’s purpose, vision, values and culture. aligned with the Group’s strategic pillars and approved amendments
• Monitored progress on the implementation of the Group’s to four risk appetite declarations.
Diversity and Inclusion Strategy. • Reviewed and updated the Group’s risk matrix, materialised risks
• Reviewed workforce engagement survey results. and risk mitigation activities.
• Received feedback on meetings with representatives of the Group’s • Reviewed budgets for initiatives designed to mitigate material
labour unions. identified risks.
• Reviewed physical and transition risks associated with climate
Governance and engagement change as part of the Base Case and Development Case review.
• Reviewed Board and Executive Committee succession plans.
• Attested to the effectiveness of the Group’s risk management and
• Interviewed potential future Board candidates. internal control systems.
• Reviewed Directors’ independence and skills on the Board. • Reviewed actions planned for 2023 to prepare for the UK
• Reviewed Directors’ conflict of interest declarations. Government’s audit and corporate governance reforms.
• Reviewed requests by Directors to undertake additional external • Reviewed half-yearly compliance reports.
appointments. • Reviewed results of the Group’s whistleblowing processes.
• Oversaw the 2022 externally facilitated Board and Committees • Reviewed Internal Audit department’s progress and 2023 audit plan.
effectiveness review.
• Selected a new External Auditor following a tender process for the
• Monitored feedback from investors and proxy agencies regarding 2024 audit onwards.
the Group’s corporate governance arrangements.
• Reviewed the results of perception studies carried out within certain Financial and performance reporting
stakeholder groups in Chile. • Approved the Group’s 2021 full-year and 2022 half-year results
• Reviewed and approved updates to the Group’s Sustainability and and corresponding announcements.
Human Rights policies and reviewed new Water and Energy policies. • Recommended and declared dividends paid to shareholders
• Reviewed and approved the Company’s 2022 Modern Slavery during 2022.
Act statement. • Reviewed and approved going concern and viability statements
and conducted stress tests related to a potential future resilience
statement.

Our strategy is designed to enable us to achieve our Purpose. It is supported by five pillars:
safety and sustainability, people, competitiveness, innovation and growth and each has defined
short- and medium-term goals.
Safety and Sustainability

The safety and health of our employees and contractors is our first priority. We are committed to achieving zero fatalities at our operations and
continuing to reduce the number and seriousness of accidents and occupational health issues. We view sustainability as a source of value creation that
is central to our decision-making processes.
• Monitored COVID-19 protocols aimed at protecting the Group’s workforce and • Continued to monitor independent reviews of the safety of the Group’s tailings storage
neighbouring communities and the lifting of restrictions during the year. facilities and assessed it versus industry best practice and the ICMM’s GISTM standard.
• Reviewed and monitored the Group’s safety and health performance. • Continued to monitor progress of local community interactions at Los Pelambres,
• Reviewed the Group’s compliance with its environmental commitments. including the execution of agreements with communities following the rupture of the
• Monitored the Group’s implementation of its Climate Change Strategy. concentrate pipeline.1
• Reviewed the implementation of water conservation and efficiency measures • Assessed progress in the renewal of key water extraction and mining permits at Zaldívar.
at Los Pelambres, addressing the water shortage generated by a 13-year drought. • Monitored the achievement of Copper Mark certification for all the Group’s mining
operations.
People
People are central to our business. We want our employees to feel recognised and to maximise their opportunities for personal and professional
growth. We seek to generate a culture of diversity and inclusion which allows our employees to achieve their full potential. Our goal is to be the best
employer in the Chilean mining industry. To achieve this, we understand the importance of creating an environment of trust and collaboration focused
on the long term.
• Continued to oversee the implementation of the “New Ways of Working” initiatives • Monitored progress on the implementation of the Group’s Diversity and Inclusion
to facilitate flexible on-site, home-based and hybrid working arrangements, with the Strategy and approved a more ambitious goal for women to represent 30% of the
goal of creating a more flexible, adaptable and resilient organisation. workforce by the end of 2025.
• Reviewed the results of employee engagement surveys conducted during the year. • Monitored labour relations at the Group’s mining and transport operations and
• Reviewed the annual talent management exercise, including succession plans for reviewed results of collective bargaining negotiations, which were completed
Directors, the CEO and the Executive Committee. in an atmosphere of respect and trust.
• Reviewed employee performance, including the Company’s short-term and long-term • Monitored progress of the annual Human Resources plan.
incentive scorecards. • Reviewed development of the 2023 Directors’ and CEO’s Remuneration Policy,
to be submitted for shareholder approval at the 2023 AGM.
Competitiveness
Competitiveness is based on productivity gains, controlling costs and streamlining our processes.
• Monitored results of the Group’s Cost and Competitiveness Programme, • Reviewed and approved the Group’s copper concentrate and copper cathode sales strategy.
including estimated future savings. • Reviewed the progress of proposed tax legislation in Chile which would affect the Group.1
• Approved key procurement and sales contracts. • Monitored proposed labour legislation.
• Reviewed and monitored the Group’s operating and financial performance. • Reviewed actions taken to enhance cyber security.
Innovation
We innovate as a means of improving social, environmental and economic performance while delivering strong returns for our shareholders.
Innovation is key to improving productivity and efficiency and promoting growth, especially in the medium and longer term.
• Oversaw progress on the Group’s innovation portfolio, including operational • Reviewed Centinela’s In-pit tailings deposition project which aims to allow for tailings
and data analytics initiatives. deposition in pits no longer in use.1
• Reviewed progress on the implementation of the Group’s digital transformation • Reviewed the potential application of the Group’s proprietary Cuprochlor®-T primary
programme. sulphide leach technology.
• Monitored progress on Centinela’s and Los Pelambres’ integrated remote
operations centres.
Growth
We have a portfolio of growth projects that allows us to remain competitive by developing sustainable operations over the long term.
• Reviewed progress on the Los Pelambres Expansion project, Los Pelambres ore • Approved the Group’s exit from the Reko Diq project in Pakistan.
transport system project, Zaldívar’s Chloride Leach project and Centinela’s Esperanza • Reviewed progress on the Group’s material Environmental Impact Assessments.
Sur project. • Reviewed and approved the acquisition and divestment of mining properties in Chile.
• Reviewed progress on Phase 2 of the Los Pelambres Expansion project and approved • Reviewed and approved the Group’s long-term price assumptions and commercial
a funds advance to address critical path items including key acquisitions and parameters.
engineering.
• Reviewed and approved the base case and development case for the Group’s assets.
• Reviewed progress on the Centinela Second Concentrator project and postponed
• Reviewed the Group’s strategic growth plan (PEC), which is a mine production
decision on whether to proceed with the project until there is greater clarity on mining
planning exercise without restrictions, aiming to quantify the potential to transform
royalty, tax and constitutional reform.
the Group’s mineral resources into ore reserves.
• Monitored progress on the feasibility study for the Polo Sur project.
• Reviewed and approved the Group’s 2023 budget.
• Reviewed Zaldívar’s permitting strategy to extend its water extraction permit beyond 2025.
• Reviewed the Group’s mineral resources and ore reserves statement.
• Monitored actions to advance the Twin Metals Minnesota project and reorganised its team.
• Reviewed business development and exploration opportunities and activities.
1. Further information relating to these matters and how the Board had regard to the stakeholders
and matters set out in s. 172(1) of the Companies Act 2006 are set out on pages 114-115.
/ Stakeholder engagement
Engaging with stakeholders to

make decisions for a better future
The Group maintains ongoing dialogue with In October 2022, the Government adjusted its mining royalty proposal,
reflecting in part the concerns raised by several stakeholders with
stakeholders to understand their expectations respect to the impact on Chile’s competitiveness. The new proposal
and concerns, and their views are carefully included a flat 1% ad valorem tax rate on copper sales for large copper
considered in the Board’s deliberations. mines, a new variable scale profits royalty, between 8% and 26%
according to the operating margin of mining companies, and other
A description of the Group’s key stakeholders, structural changes. Under this proposal, ETRs would range from 45%
their importance to the Group’s long-term to 50%, continuing to reduce Chile’s competitiveness in comparison with
sustainable success and the key initiatives that other mining countries.
are in place to recognise their interests and All the Group’s operating companies have tax invariability agreements;
Los Pelambres and Zaldívar’s agreements run until the end of 2023,
concerns, is set out in detail within the Centinela’s agreement runs until 2029 (2031 for Encuentro Oxides) and
Strategic Report on pages 38-73. Antucoya’s agreement runs until 2030. Any impact from a change in the
mining royalty would take effect after the end of the invariability period.
Further details on the Board’s workforce
engagement mechanisms are set out How the Board considered, and had regard to, the interests of key
stakeholders and the requirements of section 172(1)
on pages 116-117. The Board has monitored closely the progress of this proposed
Three principal 2022 Board decisions are explained here as examples legislation considering the likely consequences of the proposal on the
of how stakeholder considerations, and the factors set out in section decisions that the Board makes for the long term on the interests of the
172(1) of the Companies Act 2006, were central to the decision-making Company’s shareholders and the Group’s employees and contractors,
processes. The Board took into account the different interests of suppliers, customers and other business partners.
stakeholders but with an overarching focus, as required by section In considering the implications of the proposed royalty on these
172(1), on acting in a way that would be most likely to promote the stakeholders, the Board considered and had regard to the interests
success of the Company for the benefit of its members as a whole. of key stakeholders, noting that:
The likely long-term consequences of each decision were, among other
things, key considerations for the Board. • Between 2013 and 2019, approximately 80% of copper industry
revenue was used to pay salaries, and for services, materials and
Board oversight of mining royalty and tax reform bills in Chile supplies to operations and projects. The remaining 20% covered,
The total tax rate for Chilean companies that remit profits to in almost equal parts, dividends paid to shareholders and taxes.
shareholders abroad is 35%, which comprises a standard corporate tax • Mining has a multiplier effect. For every $100 generated by mining
at 27%, which is payable as profits are earned, and a withholding tax an additional $78 is generated in other sectors of the economy.
payable on profits distributed out of Chile (at 35% less the corporate tax
• 90% of Chile’s copper is produced by 22 companies. Five are in the
already paid).
third quartile of the industry’s cost curve and 12 are in the fourth
There is also a separate mining tax (royalty) of 5–14% of operating quartile, and so their profitability is more sensitive to copper price
profits, with the rate based on the operating margin. variations. In 2019, the 12 companies in the fourth quartile had losses
In 2022, the Group incurred $604 million of taxes and invested $57 of approximately $700 million after having spent over $4.8 billion in
million in social projects and programmes to benefit communities that salaries, and purchases of goods and services.
live around our operations. The Group’s underlying net earnings after • The Board authorised management to engage with stakeholders on
taxes and before exceptional items amounted to $588 million. The the potential impacts of these proposals in all relevant forums to allow
effective tax rate (ETR) paid by the Group was 37.4% which compares for this to be considered in the development of this legislation. This
with the ETRs calculated by the IMF for a typical Chilean mining included the presentation to Congress of the impacts on stakeholders,
company of 38% and for mining OECD countries of 39%. as relayed to management in discussions with them.
• During 2022, the Board decided to postpone the decision on whether
In May 2021, the lower house of Congress approved a proposal to establish
to proceed with the investment in Centinela’s Second Concentrator
a new mining royalty to fund social needs, which was sent to the Senate
project until there is sufficient clarity on the tax outcomes of the
for consideration. The lower house’s royalty proposal included
ongoing discussions on the mining royalty and tax reform bills, and the
ad-valorem (revenue-based) and profit-based royalties that would have
rewriting of the Chilean constitution. This is expected to be by the end
increased the ETR to over 75% at copper prices of over $4.00/lb,
of 2023.
which would be the highest rate in the world, by a significant margin.
• The Board will continue to closely monitor the situation and oversee
In July 2022, the Chilean government submitted to congress a proposed engagement with stakeholders to ensure that the impacts of these
tax reform bill that aimed to increase tax collections by 4.3% of GDP proposals are fully understood by Congress.
when fully implemented. As part of this tax reform bill, the Government • The Board will continue to take the potential impacts on stakeholders
submitted a revised mining royalty reform proposal which superseded into account in its broader decision-making.
the proposal by the lower house. Although the resulting ETR of the
proposed royalty was lower than the original proposal, it was still a very
significant increase on current rates.

Los Pelambres – Concentrate Pipeline Incident How the Board considered, and had regard to, the interests of key
On 31 May, Los Pelambres detected a leak near Llimpo in the stakeholders and the requirements of section 172(1)
underground pipeline that transports concentrate from the concentrator In making this decision the Board took into consideration that:
plant at the mine site to the port at Los Vilos. The pipeline was • The Company’s purpose of ‘Developing Mining for a Better Future’
immediately shut down and the location of the leak identified. The that has led to its pursuit of innovative tailings disposal alternatives
pipeline was repaired, and operation of the pipeline resumed on 26 that align with modern mining practices and are sustainable, and
June. A full assessment of the incident found no material or irreversible focus on ameliorating or removing environmental challenges.
environmental impact and the pipeline was approved for reopening by
• The project is expected to deliver additional reductions on the impact
the relevant local regulator.
of Centinela’s operations on communities and the environment. This is
A review was carried out to incorporate improved safety measures into achieved by leveraging Centinela’s thickened tailings process, which
pipeline operations ahead of the complete replacement of the pipeline, already increases the recovery of process water and lowers the
which is expected to be completed in 2025. The Company, together with emissions of particulate matter due to the saline layer that forms on
the local authorities, successfully engaged with members of the local the surface of the tailings. In addition, in-pit deposition enables the
communities who were concerned about the safety of the pipeline. reuse of previously condemned areas for waste disposal, leading to
significant environmental benefits and a reduction in Centinela’s
How the Board considered, and had regard to, the interests of key
overall footprint.
stakeholders and the requirements of section 172(1)
The Board called a special meeting following the incident to understand • Maintaining a reputation for high standards of business conduct is
its potential impact on the environment and on Los Pelambres’ essential, particularly given the technical, environmental and risk
stakeholders including local communities, suppliers, customers, management advantages associated with the project. Notably, the
government authorities, regulators, and shareholders. The Board project offers flexibility to the operation while enabling a larger
continued to monitor the response to the incident in subsequent deposition of tailings at a lower unit cost. This approach optimises
scheduled meetings and the Board’s Sustainability and Stakeholder Centinela’s value by utilising more cost-effective disposition methods
Management Committee reviewed Los Pelambres’ community relations earlier in the mine’s life, deferring higher capital expenditure on
model in the context of the incident. raising the height of the current tailings storage facilities’ walls.
• The project will deliver economic benefits for shareholders
In monitoring Los Pelambres’ response to the incident, the Board had and reduce the environmental impact of the operations’
regard to: tailings disposal.
• The impact of the incident on local communities and the environment, Overall, the Board believes that this project is in the best
monitoring communications and dialogue with government authorities interests of Centinela and its stakeholders, and will
and the communities, the independent investigation into the incident, continue to carefully consider all factors before
and the containment and rehabilitation of the area of the spill and making a final investment decision in 2024.
repair of the pipeline.
• Customers due to the rescheduling of shipments.
An agreement was reached with the Llimpo community addressing their
operational concerns related to the incident and for Los Pelambres to
provide support for the development of local infrastructure.
Since the incident, Los Pelambres has been applying a precautionary
conservative safety factor to ensure the safe operation of the pipeline.
Following the incident, several Directors visited the Choapa Valley with
members of the management team to understand the broader context of
the incident and to hear first-hand from employees, contractors and the
communities their perspectives on the impact that Los Pelambres
has on them.
Centinela’s in-pit tailings project
Centinela is considering using its disused open pits for the storage
of thickened tailings from its concentrator plant as an alternative
to traditional tailings disposal methods. The project has the potential to
meet Centinela’s tailings management needs for a minimum of 9 to 10
years and potentially for the life of the concentrator plant.
The Board approved the project’s Commitment Phase in 2022,
with a potential investment decision to be made by 2024.

/ Workforce engagement
Fostering a collaborative dialogue

and working environment
Mining is a long-term business whose The Group’s workforce comprises 31,126 people. Approximately
23% of the workforce are Group employees and 77% are employees
timescales often run into decades. Our of contractor companies. More than 99% of the Group’s employees
relationships with our stakeholders are central are in Chile and approximately 72% come from communities in the
to our long-term success and to our purpose Antofagasta and Coquimbo Regions, where the Group’s operating
companies are located.
of developing mining for a better future.
Approximately 77% of the Group’s employees are unionised. This
The Group’s governance structures ensure number is close to 100% at the operator level. The Group maintains
that the views and interests of stakeholders, ongoing dialogue with labour unions and key issues are raised with
including our employees and contractors, and discussed by the Remuneration and Talent Management Committee
and the Board.
are discussed in the boardroom and
considered as part of the Board’s deliberations.
The Group maintains strong relations with its workforce, based on trust,
continuous dialogue and favourable working conditions. The Board has
carefully considered and reviewed the mechanisms in place to allow the
31,126 99%
Board to understand the views of the Group’s workforce. Ultimately, the Total workforce Live in Chile
Board has decided not to adopt any of the three workforce engagement
72%
mechanisms recommended in the UK Corporate Governance Code (a
Director appointed from the workforce, a formal workforce advisory
panel or a designated non-executive director). The Board considers that
adopting any of these mechanisms would interfere with the effective, Live in the Antofagasta
structured and formal combination of mechanisms already in place.
and Coquimbo Regions

The Group has established control mechanisms to ensure that • More targeted and specific ad hoc workforce surveys are conducted
contractor companies’, whose employees are often members of their and/or focus groups are convened throughout the year in relation to
own labour unions, meet the Group’s standards and guidelines on specific areas of interest such as new Ways of Working, employee
labour, environmental and social and ethical matters and adopt good wellbeing and the Diversity and Inclusion Strategy. The results of
practices with regard to safe workplaces and the quality of employment. these activities are overseen by the Executive Committee and
Contractors' employees receive the same minimum protections as the reported to the Remuneration and Talent Management Committee
Group’s employees under Chilean labour law and the Group requires and the Board.
contractors to pay their employees ethical wages – which as of • The workforce is engaged in the design and development of
December 2022 were 55% higher than the Chilean legal minimum – programmes that impact the Company’s culture or have a significant
and to provide other basic benefits, including life and health insurance. impact on working conditions. Recent examples include the Diversity
These protections are reinforced through bank guarantees and and Inclusion programme and the flexible work arrangements.
contractors are subject to regular audits by independent third parties to • The Group’s workforce is encouraged to report any concerns to the
ensure full compliance with these standards. Ethics Committee through the confidential whistleblowing hotline.
Below is a selection of the workforce engagement mechanisms that the Reports may be made anonymously. All reports are investigated and
Board currently has in place: reported to the Audit and Risk Committee and the Board.
• Directors visit the Group’s operations individually or in small groups During 2022, the Board applied feedback received from the
throughout the year and engage informally with the workforce. workforce to decisions related to flexible working initiatives,
Impressions and views arising from these visits are reported to the the oversight of labour negotiations and the development
Board and its Committees and related questions are raised with of the Group’s Diversity and Inclusion Strategy.
the management team.
• Labour relations matters, proposed labour negotiation limits and
feedback from labour negotiations are reported directly to the
Remuneration and Talent Management Committee and the Board
throughout the year and typically form a key part of the CEO’s general
update to the Board.
• The CEO, Vice President of Northern Operations, Vice President of
Los Pelambres, Vice President of Human Resources, and the General
Managers and HR Managers of each relevant operation meet unions
at least twice per year to share relevant information and listen to
concerns and suggestions, the results of which are shared with the
Remuneration and Talent Management Committee and the Board.
Additional meetings with union representatives took place during
2022, enabling the CEO to share business performance and
challenges associated with the Group’s strategic framework, reinforce
shared culture and values and listen to concerns and ideas. The
purpose of these meetings is to foster a collaborative dialogue and
working environment.
• Group-wide employee engagement surveys are conducted every two
or three years. These surveys are conducted by independent third
parties on behalf of the Group and the results are reported to the
Remuneration and Talent Management Committee and the Board.
Engagement surveys were conducted across the Mining division
during the year and the results were shared with the Remuneration
and Talent Management Committee in a designation session to review
the results of these surveys and also with the Board.

/ Directors’ biographies
Members of the Board
Biographical details for each Director are set out on the following page. All Directors have
confirmed that their other commitments do not prevent them from devoting sufficient time to their
roles and the Board acknowledges that the skills and experience gained by the Directors from
these external appointments are of benefit to the Group. Additional external appointments cannot
be undertaken without the prior approval of the Board. The Directors’ attendance at a significant
number of regular and ad hoc meetings held in response to the challenges arising throughout
the year demonstrated their commitment.
KEY TO COMMITTEES ANTOFAGASTA PLC DIRECTORS’ BOARD MEETING ATTENDANCE

Number attended Number attended
Nomination and Governance Jean-Paul Luksic 13/13 Vivianne Blanlot 13/13

Audit and Risk Tony Jensen 13/13 Jorge Bande 13/13
Sustainability and Stakeholder Management Ramón Jara 13/13 Francisca Castro 13/13
Projects Juan Claro 11/13 Michael Anglin 13/13
Remuneration and Talent Management Andrónico Luksic C 11/13 Eugenia Parot 13/13
Committee Chair
Chairman of the Board
From left to right: Ramón Jara, Juan Claro, Vivianne Blanlot, Michael Anglin, Francisca Castro, Jean-Paul Luksic, Jorge Bande, Eugenia Parot,
Andrónico Luksic C, Tony Jensen

Jean-Paul Luksic Current positions Vivianne Blanlot Francisca Castro
Chairman • Chairman of Fundación Minera Los Non-Executive Director Non-Executive Director
Pelambres (charitable foundation)
Independent: No Independent: No (since 27 March Independent: Yes
• Director of Fundación Andrónico 2023)
Appointed to the Board: 1990 Luksic A (charitable foundation) Appointed to the Board: 2016
Appointed Chairman: 2004 • Member of the Advisory Council of Appointed to the Board: 2014 Commercial engineer with over 25
(Non-Executive since 2014) Centro de Estudios Públicos, a Economist with extensive experience years’ experience in industry,
Over 30 years’ experience with not-for-profit academic foundation in in public and private energy, mining, including mining, energy, finance and
Chile water and environmental sectors public/private infrastructure projects
Antofagasta, including responsibility
for overseeing development of the • Member of the Board of the Centre of in Chile in the United States and Chile
Arbitration of the Chilean Chamber of
Los Pelambres and El Tesoro Previous roles Previous roles
Commerce
(Centinela Cathodes) mines • Executive Director of the Comisión • Strategic Business Manager
• Chairman of the Chile Australia
Previous roles Nacional de Medio Ambiente (Chile’s at Codelco
Business Committee and Vice
Environmental Agency) • General Co-ordinator of Concessions
• Chairman of Consejo Minero, the Chairman of the Chile Japan
industry body representing the Business Committee of Sociedad • Undersecretary of the Comisión at Chile’s Ministry of Public Works
largest mining companies in Chile de Fomento Fabril (Chilean Industrial Nacional de Energía (Chile’s National • Various roles within Chile’s Finance
Council) Energy Commission) Ministry and the World Bank,
• CEO of the Group’s Mining division
• Member of the APEC Business • Chile’s Minister of Defence Washington DC
Current positions Advisory Council (ABAC) • Director of Scotiabank Chile • Member of the independent Technical
• Member of the Board of Consejo • Director of Empresas CMPC SA, a Panel of Chile’s Public Works
Minero Juan Claro pulp, paper and packaging Company Concessions
• Non-Executive Director of Quiñenco Non-Executive Director listed in Chile Current positions
SA and Quiñenco group listed • Director of Instituto Chileno
companies Banco de Chile and
Independent: No • Member of the Chilean
de Administración Racional de
Sociedad Matriz SAAM SA Appointed to the Board: 2005 Pension Funds Risk Classification
Empresas (ICARE), a business think
Committee
• Member of the Board of Centro de Extensive industrial experience tank in Chile
Estudios Públicos, a not-for-profit • Director of SalfaCorp SA
in Chile, including an active • Member of Consejo para la
academic foundation in Chile Transparencia (Transparency • Director of the Fraunhofer Chile
role representing Chilean
Council), the Chilean body responsible Research Foundation
industrial interests nationally
Tony Jensen and internationally for enforcing transparency in the • Independent Director of Conexión
Non-Executive Director public sector Kimal-Lo Aguirre S.A., a power
Previous roles transmission Company in Chile
Independent: Yes Current position
• Chairman of Energía Coyanco SA
Appointed to the Board: 2020 • Chairman of the Sociedad • Director of Colbún SA, an energy Michael Anglin
de Fomento Fabril (Chilean Industrial Company listed in Chile Non-Executive Director
Mining engineer with over 35 years
of mining experience in the United Council) Independent: Yes
States and Chile in operational, • Chairman of the Confederación de Jorge Bande
la Producción y del Comercio Non-Executive Director Appointed to the Board: 2019
financial, business development
and management roles. (Chilean Business Confederation) Independent: Yes Mining engineer with over 30 years’
• Chairman of the Consejo Binacional experience in base metals, including
Previous roles Appointed to the Board: 2014
de Negocios Chile-China (Council for the development, construction and
• Director of Golden Star Resources Bilateral Chile-China Business) Economist with over 40 years’ operation of large-scale mining
Limited experience in the mining, energy and operations in the Americas.
• President, CEO and Director of Royal Current positions water industries in Chile
• Chairman of Coca-Cola Andina SA
Previous roles
Gold Inc
Previous roles
• Mine General Manager of the Cortez • Director of Melón SA and • Vice President Operations and Chief
joint venture in Nevada and in Agrosuper SA • Co-founder and Executive Director Operating Officer of BHP Base Metals
treasury, business development and a of Copper and Mining Studies CESCO, • Director of EmberClear Corp
• Member of the Board of Centro de
wide range of other operating an independent not-for-profit think
Estudios Públicos, a not-for-profit Current positions
roles with Placer Dome in the USA tank focused on mining policy issues
academic foundation in Chile
and Chile • Vice President of Development and • Chairman of SSR Mining Inc
• Country Adviser, Goldman Sachs
later Director of Codelco • Adviser to IntelliSense.io
Current positions • CEO of AMP Chile • Director of Tulla Resources, Australia
• Director of Black Hills Corporation Andrónico Luksic C
• Adviser to the World Bank
Non-Executive Director
• Member of the University Advisory • Member of the Global Agenda Council Eugenia Parot
Board for the South Dakota School of Independent: No for Responsible Minerals Resource Non-Executive Director
Mines and Technology Appointed to the Board: 2013 Management at the World Economic
Independent: Yes
Forum
Extensive experience across a range Appointed to the Board: 2021
Ramón Jara • Director of Edelnor SA, Electroandina
of business sectors throughout Chile,
Non-Executive Director SA (now E-CL SA) and Bupa Civil biochemical engineer with over
Latin America and Europe
Independent: No Chile SA 35 years’ experience, working for
Current positions • Member of the Experts Committee leading engineering and consulting
Appointed to the Board: 2003
• Chairman of Quiñenco SA for Copper Prices for Chile’s Ministry companies providing services to
Lawyer with considerable legal and and Compañía Cervecerías Unidas of Finance some of the largest mining projects in
commercial experience in Chile SA, and Vice Chairman of Banco Latin America in the areas of
Current positions
Previous roles de Chile and Compañía Sudamericana environment, sustainability and mine
de Vapores SA, all of which are listed • Director of CESCO
• Partner, Jara del Favero Abogados waste management.
companies in the Quiñenco group • Director of NEXT Minerals SA
• Director of Empresa Nacional del • Director of Nexans SA, a Company Previous roles
• Professor of the International
Petróleo (ENAP) listed on Euronext Paris and part Postgraduate Programme in Mineral • Vice President of Latin America,
• Vice President, SONAMI (National owned by Quiñenco SA Economics at the University of Chile Regional President for South America
Mining Association) • Member of the International Business • Member of the Advisory Council of and Managing Director for Chile,
Leaders’ Advisory Council for the the School of Economics and Golder Associates
Mayor of Shanghai; the Chairman’s Business at the University of Chile • Director on Golder’s holding
International Advisory Council at the Company board and member of the
Council of the Americas; the Global Audit and Finance and Investments
Board of Advisors at the Council of Committees.
Foreign Relations; and the Brookings • Member of the Boards of Golder
Institution’s International Advisory South America, Chile, Peru and
Council. Argentina.

/ Board balance and skills
A balance of skills
and experience
The Board comprises ten Directors with a broad and complementary set of technical skills,
educational and professional experience, nationalities, personalities, cultures and perspectives.
Board balance
Independence1 Gender diversity2 Tenure Nationality3
Chairman 1 Male 7 1-5 years 3 Chile 8

Independent 5 Female 3 6-10 years 4 USA 2
Non-Independent 4 10+ years 3
1. The Board reviews the independence of Directors annually. The Board has carefully 3. The Company has met the Parker Review target and in 2022 more than half the
considered the independence of all Directors and is satisfied that Jorge Bande, Board identified as being from an ethnic minority background according to the
Francisca Castro, Michael Anglin, Tony Jensen and Eugenia Parot continue to be criteria in the Parker Review survey. As noted throughout this Annual Report, the
independent in character and judgement and that there are no relationships or Group’s footprint is primarily in Chile, where ethnicity profiles and representation in
circumstances that are likely to affect, or could appear to affect, their judgement. society differ significantly from those in the UK. Nevertheless, the Board recognises
The Board is also satisfied that Vivianne Blanlot was independent throughout 2022 that the mining industry is international and therefore the Board includes several
and until 27 March 2023 which was the ninth anniversary of her appointment to the Directors from outside Chile in support of its vision and strategy.
Board. Further details are provided on page 121.
2. The Board’s Nomination and Governance Committee continues to work with an
independent external search consultancy to identify potential female candidates who
could contribute significantly to the Board in the future. Further details on the
Board’s diversity policy can be found on pages 126-128.
Board skills matrix

Energy experience
Board governance
Mining operations
CEO experience
Mining industry
Communication
Latin American
Sustainability1
compensation
Independence
management
Government
experience
experience
experience
UK market
Executive
Financial
relations
Project
Legal
Director
Jean-Paul Luksic         
Ramón Jara         
Juan Claro        
Andrónico Luksic C       
Vivianne Blanlot         
Jorge Bande            
Francisca Castro         
Michael Anglin         
Tony Jensen             
Eugenia Parot          
1. Directors considered to have sustainability skills have self-certified that they are, or have been, responsible for sustainability as an executive or as a member of a sustainability
committee of a board. This includes competence on climate-related issues.

/ Roles in the boardroom
Board and senior management’s

roles and responsibilities
The Group’s CEO, Iván Arriagada, is not a Director, reflecting the law and practice in Chile.1
Despite this, interaction between the Board and executive management is as you would expect
between Non-Executive Directors and management in a typical UK-listed Company. The Board
considers that there are considerable benefits associated with having a Board of exclusively
Non-Executive Directors; it provides a broad range of perspectives and encourages robust
debate with, and independent oversight of, the Group’s executive management.
Non-Executive Chairman Independent Non-Executive Directors2 CEO

Jean-Paul Luksic Tony Jensen Iván Arriagada
Leads the Board and ensures Michael Anglin Leads the implementation of the
its effectiveness overall. Group’s strategy set by the Board.
Jorge Bande
• Promotes the highest standards of integrity, Francisca Castro • Manages the overall operations and
probity and corporate governance. resources of the Group.
Eugenia Parot
• Sets the agenda for Board meetings • Leads the Executive Committee and
Ensure that no individual or small
in consultation with the Senior ensures its effectiveness in all aspects
group of individuals can dominate
Independent Director, CEO and of its duties.
the Board’s decision-making.
the Company Secretary. • Provides information and makes
• Chairs meetings and ensures that there • Meet the independence criteria set out recommendations to the Board regarding
is adequate time for discussion of all in the UK Corporate Governance Code.2 the Group’s day-to-day activities and
agenda items, focusing on strategic, • Have no connection with the Group or long-term plans.
rather than routine, issues. any other Director which could be
• Promotes a culture of openness and perceived to compromise independence.
debate within the Board by facilitating • Provide a range of outside perspectives Executive Committee members
constructive Board relations and to the Group and encourage robust Present proposals, recommendations
the effective contribution of all Directors. debate with, and challenge of, the and information to the Board within
• Oversees Director induction, Group’s executive management. their areas of responsibility.
development and performance reviews. • Support the CEO in the implementation
• Leads relations with shareholders, including of the Group’s strategy set by the Board.
the Group’s controlling shareholders.
Non-Executive Directors3 Senior Independent Director Company Secretary

Juan Claro Tony Jensen Julian Anderson
Ramón Jara Provides a sounding Board for the Ensures that Directors have access
Chairman and supports the Chairman to the information they need to perform
Andrónico Luksic C
in the delivery of his objectives their roles.
Vivianne Blanlot 4 as required.
• Provides a conduit between Board
Provide a range of outside perspectives
• Where necessary, acts as an and its Committees and a link between
to the Group and encourage robust
intermediary between the Chairman the Board and management.
debate with, and challenge of, the
and the other members of the Board • Advises the Board on corporate
Group’s executive management.
or the CEO. governance and supports the Board in
• The Board does not consider these • Acts as an additional point of contact for applying the UK Corporate Governance
Directors to be independent because shareholders, focusing on the Group’s Code and complying with the UK listing
they do not meet one or more of the governance and strategy and gives regime and obligations.
independence criteria set out in the shareholders an alternative means of • The division of responsibilities between
UK Corporate Governance Code.3 raising concerns other than with the the Chairman, the CEO, and the Senior
• Ensure that no individual or small group Chairman or senior management. Independent Director is available on the
of individuals can dominate the Board’s Company’s website at antofagasta.co.uk.
decision‑making.
The division of responsibilities between the Chairman, the CEO, and the Senior Independent Director is recorded in writing and is available on the
Company’s website at antofagasta.co.uk.
1. Chilean law prohibits CEOs of listed companies from being Directors of those 3. Ramón Jara provides advisory services to the Group. Andrónico Luksic C is the
companies. The CEO and CFO are invited to attend all Board meetings. The CEO brother of Jean-Paul Luksic, the Chairman of the Company, and is Chairman of
is also invited to attend all Board Committee meetings and there is regular formal Quiñenco SA and Chairman or Director of Quiñenco’s other listed subsidiaries.
and informal dialogue between management and the Board. Jean-Paul Luksic is also a Non-Executive Director of Quiñenco and some of its listed
2. The Board reviews the independence of Directors annually. The Board has carefully subsidiaries. Like Antofagasta plc, Quiñenco is controlled by a foundation in which
considered the independence of all Directors and is satisfied that Jorge Bande, members of the Luksic family are interested. Ramón Jara and Juan Claro have served
Francisca Castro, Mike Anglin, Tony Jensen and Eugenia Parot continue to be on the Board for more than nine years from the date of their first election.
independent in character and judgement and that there are no relationships or 4. Vivianne Blanlot was an independent Non-Executive Director until 27 March 2023,
circumstances that are likely to affect, or could appear to affect, their judgement. the ninth anniversary of her appointment to the Board.

/ Executive Committee biographies
Members of the Executive Committee
01 02 03
04 05 06
07 08 09
10 11 12

01 Iván Arriagada 05 G
eorgeanne Barceló 09 P
atricio Enei
CEO appointed in 2016 Vice President of Human Resources Vice President of Legal appointed in 2014
Joined the Group in 2015 appointed in 2022 Joined the Group in 2014
• Commercial engineer and economist with more than Joined the Group in 2021 • Lawyer and MBA, with over 20 years’ experience
30 years’ international experience in the mining and • Human resources specialist with a degree in Law in mining
oil and gas industries and a Master’s degree in Strategic Human Resources
Previous roles
Management and more than 20 years’ experience
Previous roles • General Counsel at Codelco
in international and national companies across a
• Chief Financial Officer of Codelco range of sectors, including insurance and industry • Corporate Affairs Manager at Escondida
• Various positions over six years at BHP Base Metals, • Senior lawyer at BHP Billiton in Chile
Previous roles
including President of Pampa Norte (Spence and • Chief Legal Counsel at Collahuasi
Cerro Colorado), Vice President Operations and Chief • Labour Relations Manager of Antofagasta Minerals
• Lawyer at the Instituto de Normalización Previsional
Financial Officer of the Base Metals division • Corporate Director of People at Bupa Chile
and in private practice
• Almost 15 years’ experience with Shell in Chile, the • Human Resources Vice President at Komatsu
United Kingdom, Argentina and the United States Latin America 10 A
ndrónico Luksic L
Vice President of Development
02 Mauricio Ortiz 06 G
onzalo Sánchez appointed in 2015
CFO appointed in 2020 Vice President of Sales appointed in 2004
Joined the Group in 2006
Joined the Group in 2015 Joined the Group in 1996
• Business administrator with broad mining experience
• Electrical engineer with two Master of Sciences • Civil engineer with over 25 years’ experience in in sales, exploration, business development and
degrees (Metals and Energy Finance and Electrical marketing and metals hedging general management
Engineering) and 15 years’ experience in the energy,
mining and railway industries Previous roles Previous roles
• Deputy Commercial Director of Antofagasta Minerals • Corporate Manager in the Mining division
Previous roles
• Copper sales at Codelco • Director, Antofagasta Minerals, Toronto Office
• General Manager of FCAB (Transport division)
• Business Development Manager of Antofagasta 07 F
rancisco Walther • Various positions at Banco de Chile
Minerals Vice President of Projects appointed in 2018
11 A
lan Muchnik
• Finance Manager at Codelco – Chuquicamata Joined the Group in 2007 Vice President of Strategy
• Business Development Principal at Rio Tinto plc, • Mining engineer with over 25 years’ experience in and Innovation appointed in 2021
London open pit and underground mining and engineering Joined the Group in 2016
• Various operating project roles at BHP
Previous roles • Civil engineer, Master’s degree in engineering
03 M
auricio Larraín • Corporate Project Manager of Antofagasta Minerals and MBA
Vice President of Northern Operations • Project Director of Reko Diq Previous roles
appointed in 2022
• Director of Codelco’s Chuquicamata underground • Group Innovation and Energy Manager, and Growth
Joined the Group in 2017 mine project Assets, Energy and Innovation Portfolio Manager of
• Civil mining engineer and Master of Sciences (Mineral • Head of Engineering for Codelco’s Ministro Antofagasta Minerals
Economics) with over 25 years’ experience in mining Hales project • Several positions in strategy, planning, studies and
business development over 10 years at BHP (Chile
Previous roles 08 R
ené Aguilar
Vice President of Corporate Affairs and the USA)
• General Manager of Los Pelambres
and Sustainability appointed in 2017 12 K
atharina Jenny
• General Manager at Codelco’s El Teniente Division
Joined the Group in 2017 General Manager – FCAB
• Operations Manager at El Teniente
(Transport division) appointed in 2019
• Mine Planning Corporate Manager of Codelco • Industrial psychologist with 20 years’ experience
• Various positions at Codelco and Los Pelambres in mining, including in sustainability, safety, human Joined the Group in 2016
resources and corporate affairs • Mining engineer and MBA, with over 15 years’
04 A
lejandro Vásquez experience in mining
Vice President of Los Pelambres Operations Previous roles
appointed in 2022 • Group Head of Safety at Anglo American, London Previous roles
Joined the Group in 2022 • Vice President of Corporate Affairs and Sustainability • Safety and Health Manager at Antofagasta Minerals
at Codelco • Productivity and Costs Manager, and Safety Manager
• Civil mining engineer with over 30 years’
• Health and Safety Director of the International at Codelco
experience in mining
Council on Mining and Metals (ICMM), London • Various roles at BHP, including mine planning, safety
Previous roles and health and environment
• Vice President, South America at Teck Resources
• President of Pampa Norte (BHP’s Spence and Cerro
Colorado operations)
• General Manager of the Yandi iron ore operation
in Australia
• Vice President of Operations at Escondida

/ Introduction to the Committees
Board committees
The Board’s Committees ensure that Board deliberations are focused on key issues
and that proposals are submitted after thorough debate and rigorous challenge.
Each Committee provides a forum to allow the views and perspectives of stakeholders to be discussed so that they are represented
in the Board’s deliberations.
Nomination and Governance Committee

Key responsibilities Focus areas for 2022
• Corporate governance framework • Succession planning for Board and Committee roles
• Succession planning for the CEO and the Board • Board Committee composition
• Board and Committee composition • Monitoring shareholder feedback on Governance
• Nomination to the Board • Board and Committee evaluation
• Board effectiveness reviews
Audit and Risk Committee

• Financial reporting • Reviewing the Company’s half year and year-end financial results
• External audit • Assessing financial controls and reporting
• Internal audit • Monitoring risk management and compliance
• Risk management • Assisting the Board with updates to the Group’s risk appetite assessment
• Internal control • Assisting the Board with the 2024 external audit tender
• Compliance
Sustainability and Stakeholder Management Committee

• Policies and commitments • Monitoring events at Los Pelambres following the concentrate pipeline incident
• Safety and health • Overseeing measures to protect the safety and health of the Group’s workforce
• Community relations • Endorsing key policies for the Group’s long-term sustainable success
• Environmental and social matters • Reviewing climate change strategy implementation
• Stakeholder engagement • Receiving reports on the Group’s tailings storage facilities
Projects Committee
• Oversight of project standards, guidelines • Monitoring progress on the engineering and remaining project studies for the
and best practices Centinela Second Concentrator project
• Project development lifecycle matters • Monitoring progress in the execution of the Los Pelambres Expansion
• Project reviews and Zaldívar Chloride Leach projects
• Lessons learned from completed projects • Monitoring development of the Group’s organic growth opportunities
Remuneration and Talent Management Committee

• Remuneration governance • Determining the application of the Group’s executive remuneration framework
• Directors’ remuneration • Considering feedback from shareholders in relation to the 2022 Directors’
• Executive remuneration and CEO’s Remuneration Report and the proposed 2023 Directors’ and CEO’s
• Group pay structures Remuneration Policy
• Talent management and succession planning • Monitoring Directors’ and CEO remuneration
for the Executive Committee • Reviewing employee engagement survey results
• Employee engagement • Reviewing talent management and Executive Committee succession plans
• Talent retention
• Diversity and inclusion
• HR Planning
Find out more online

antofagasta.co.uk/bc

/ Nomination and Governance Committee report
Maintaining an effective Board
“The Committee helps ensure that

the Company’s long-term interests
are safeguarded by a strong and
effective Board.”
Jean-Paul Luksic
Chair of the Nomination and Governance Committee
2022 membership and meeting attendance Key activities in 2022

Number attended
Jean-Paul Luksic (Chair) 3/3

Corporate governance
Vivianne Blanlot 3/3
• Monitored the fulfilment of the UK Corporate Governance Code
Tony Jensen 3/3 (the Code) requirements.
Other regular attendees included the Company Secretary. • Reviewed Directors’ declarations on potential conflicts of interest.
The Committee meets as necessary and at least twice per year. • Reviewed the Governance section of the 2021 Annual Report and
Except for the Chairman, all Committee members were independent in 2022. recommended it to the Board for approval.
• Reviewed arrangements for the 2022 AGM which allowed for the
Key responsibilities Company’s inaugural hybrid meeting and the publication of the
2022 AGM Notice.
The Nomination and Governance Committee supports the Board in • Reviewed feedback from investors and proxy advisers on the
ensuring that the Group has effective governance structures in place shareholder resolutions tabled at the 2022 AGM.
and that the Board and its Committees are appropriately staffed and
Succession planning
operate effectively. The Committee identifies qualified individuals to join
• Reviewed and endorsed detailed succession plans for the Board,
the Board, recommends any changes to the composition of the Board
its Committees and the CEO.
and its Committees and monitors an annual process to assess Board
effectiveness. • Continued to provide input to the Remuneration and Talent
Management Committee in relation to succession plans for
This involves: the Executive Committee (excluding the CEO) and the Group’s
• monitoring trends, initiatives and proposals in relation to diversity and inclusion programme.
corporate governance Board and Committee composition
• overseeing and facilitating annual reviews of the Chairman, the • Reviewed the independence of all Directors, making
Board, its Committees and individual Directors, including externally recommendations to the Board.
facilitated reviews • Managed the global search carried out for an independent Non-
• evaluating and overseeing the balance of skills, knowledge Executive Director.
and experience on the Board and its Committees • Interviewed and considered potential Board candidates.
• monitoring the independence of Directors • Reviewed and endorsed updates to the Board’s skills matrix.
• overseeing Board succession plans and leading the process to identify
Board effectiveness reviews
suitable candidates to fill vacancies, nominating such candidates for
• Oversaw the implementation of recommendations arising from
approval by the Board and ensuring that appointments are made on
the 2021 internal evaluation of Board and Committees’ performance.
merit and against objective criteria
• Oversaw the 2022 externally-facilitated evaluation of the Board
• overseeing the induction of new Directors and the development
and Committees by Clare Chalmers Limited, an external Board
of all Directors
evaluation consultancy.
• overseeing CEO succession plans
• Requested a performance review of the Chairman by Directors,
led by the Senior Independent Director, and of individual Directors,
led by the Chairman with support from Clare Chalmers Limited.

/ Nomination and Governance Committee report continued
Diversity, inclusion
and succession planning
Q. What is the Committee’s role in relation to succession They were briefed on the skills and experience of the existing
planning? Directors and asked to identify potential candidates who would best
The Committee oversees and develops succession plans for the meet the required criteria including their relevant experience, skills,
Board and the CEO. Succession planning for the Executive leadership capabilities, contribution to Board diversity and whether
Committee (excluding the CEO) and broader employee talent they had sufficient time to devote to the role. Also important for
management is overseen by the Remuneration and Talent overall Board effectiveness is that potential candidates are proficient
Management Committee. in Spanish and, preferably, have relevant mining or extractive
industry experience. Members of the Committee interviewed
The activities of the Remuneration and Talent Management
short-listed candidates and collectively selected Tony Jensen and
Committee are set out on page 142.
Eugenia Parot to be recommended to the Board for
Q. How does the Committee address the process of CEO appointment in 2020 and 2021, respectively.
succession? The searches that resulted in these appointments aimed to identify
The Committee regularly reviews succession plans for the CEO in candidates with mining operations experience (to cover the valuable
the case of either a planned or unplanned departure. This involves skill set of a departing Director) and recent and relevant financial
defining the character, skills, experience and expertise required to experience (as part of the succession plan for the role of chair of the
fulfil the role, as well as the assessment of potential internal Audit and Risk Committee). The external search consultancy was
candidates and their development needs. The consideration of both instructed to access the widest possible talent pool and, as has been
external and internal candidates for the role of CEO ensures a clear the case for many years, to specifically identify potential female
assessment of relative strengths and weakness and provides a useful candidates. For the 2020 appointment, a global search produced
international benchmark. several hundred potential candidates for consideration, from which a
Q. What is the scope of the Board’s succession planning? shortlist of seven were interviewed, four of whom were female – and
The Board’s succession plan is reviewed formally at least once the 2021 process resulted in the appointment of a female candidate.
a year and addresses Board size, Committee structure and Q. What support does the Company provide to facilitate
composition, skills on the Board, Board and Committee members’ induction and assist with professional development?
tenure, independence of Directors, diversity (including gender),
Board roles, Board policies and individual succession plans for all Induction
Board and Committee positions. Succession plans include New Directors receive a thorough induction on joining the Board.
contingency plans in the event of an unexpected departure, This includes meetings with the Chairman, other Directors, the CEO
medium-term plans for orderly replacement of current Board and Executive Committee members; briefings on the Group’s
members and long-term plans linking strategy with the skills needed strategy, UK corporate governance, operations, projects and
on the Board in the future. exploration activities; and visits to the Group’s operations.
Q. How does the Board identify the appropriate skills for new Continuing personal development
Board candidates? Directors receive an annual briefing on governance, legal, regulatory
The Board maintains a Board skills matrix and the Committee and market developments that are relevant to Directors of UK-listed
reviews the balance of skills, experience and expertise at least companies, complemented by discussions on Board-related matters.
annually. This process enables the Board and the Committee to Directors have access to, and are encouraged to regularly attend,
identify the skills required when making new appointments to the round-table discussions, seminars and other events that cover topics
Board and to instruct search firms to identify candidates who fit relevant to the Group and their roles.
these criteria.
Resources
Q. What steps does the Committee take to identify and appoint
The Company provides Directors with the necessary resources
new Directors?
to maintain and enhance their knowledge and capabilities.
The Committee discusses relevant profiles for future appointments
and potential candidates, taking into account the results of Board All Directors have access to management and to such information
effectiveness reviews, as shown on page 128, the Group’s purpose, as they need to discharge their duties and responsibilities
vision, values and strategy, as shown on pages 112-113, the Board’s fully and effectively.
diversity policy (below) and the core competencies and areas Directors are also entitled to seek independent professional advice
of expertise on the Board, as shown on page 120. concerning the affairs of the Group at the Company’s expense.
To assist with making new appointments to the Board, the Committee
appoints independent external search consultancies with no
Q. What is the Board’s position in relation to diversity?
The Company’s Diversity and Inclusion Policy reflects the Board’s
connection to the Group. Between 2019 and 2021, the Committee
belief in the benefits of diversity and its conviction that more diverse
appointed Spencer Stuart, a signatory to the voluntary code of
companies attract and maintain the best talent and achieve stronger
conduct for executive search firms to address gender diversity
overall performance. The Board considers a broad definition of
on corporate practices for related search processes, to assist with
diversity when setting policies and appointing Directors, including
the search for new independent Non-Executive Directors.
gender, disability, nationality, educational and professional experience,
personality type, culture and perspective.

50% 100% >50%
of Board appointees since of our operating companies of our Board members
2014 have been women have female Board members identify as being from an ethnic
minority background
The Committee has worked hard to ensure that the Board is suitably In 2019, we sponsored the creation of a Chilean chapter of the 30%
diverse according to these criteria. The Board reviews its Club, the campaign launched in the UK in 2010 to foster gender
effectiveness in meeting diversity goals each year as part of the balance on companies’ boards and in senior management positions.
annual Board and Committees’ evaluation process. To further promote diversity at the Executive Committee level and
below, the current Diversity and Inclusion Policy was approved
The Company has met the Parker Review target and more than half
following an in-depth exercise to assess whether the Group’s
the Board members identify as being from an ethnic minority
existing diversity and inclusion model was appropriate. This included
background according to the Parker Review criteria. As noted
interviews with stakeholders, a benchmarking exercise and a
throughout this Annual Report, the Group’s activities are focused in
comprehensive review of the Group’s policies and processes. The
Chile where ethnicity profiles and representation in society differ
review identified structural impediments that needed to be addressed
significantly from those in the UK. Nevertheless, the Board
to achieve a sustained improvement in the Group’s diversity and
recognises that the mining industry is international, and in support of
inclusion model and these issues were addressed in the first years
its vision and strategy also includes Directors from outside Chile.
following approval of the new policy.
Gender diversity is a pillar of the Group’s diversity and inclusion
Metrics associated with the development of the Diversity and
strategy. The Board supports the important work performed by the
Inclusion Policy form part of the Group’s Annual Bonus Plan and
FTSE Women Leaders’ Review in pursuing a 40% target for
formal talent management and succession planning exercise, and
women on FTSE 350 boards and on executive committees and
performance is assessed by the Remuneration and Talent
their direct reports.
Management Committee at the end of each year.
Since 2014, three of the six Board appointees (50%) have been
The Remuneration and Talent Management Committee is also
women and the Board actively seeks to increase female
responsible for succession planning for the Executive Committee,
representation beyond the current level, while ensuring that
which allows for ongoing monitoring of the impact of the Diversity
appointments continue to be made on merit.
and Inclusion Policy on new appointments and their progress within
At the date of this report, there are three women on our Board of ten the Company, including at the level of those who report to the
Directors (30%). Vivianne Blanlot joined the Board in 2014 and has Executive Committee.
chaired the Board’s Sustainability and Stakeholder Management
As part of the Policy, female members of senior management have
Committee since January 2017. Francisca Castro joined the Board in
been appointed to the boards of all our operating companies and we
2016 and has chaired the Board’s Remuneration and Talent
have two women on the Executive Committee, the General Manager
Management Committee since May 2019. Eugenia Parot joined the
of our Transport division and the Vice President of Human
Board in 2021 and sits on the Sustainability and Stakeholder
Resources.
Management Committee and the Projects Committee.
It is important to acknowledge that culture plays a key role in this and
The Committee, supported by an independent external search
we have therefore implemented actions and programmes to
consultancy, continues to seek potential female candidates who
strengthen an inclusive culture, encompassing unconscious bias
could make an important contribution to the Board in the future and
training, work-life balance measures, sexual harassment and
the Board is working to achieve gender diversity targets of 40%
domestic violence prevention, and information campaigns. Human
representation of women on the Board and of at least one woman in
resources processes, such as recruitment and the individual
the Chair, Senior Independent Director, CEO or CFO roles. These
performance management system, have been reviewed and adjusted
objectives have been incorporated into the Board’s succession plans
to assure their inclusiveness and lack of bias.
and the Committee aims to achieve these goals by continually
searching for candidates with the required skills and methodically Since 2017, we have more than doubled female participation to over
preparing for ordinary Board refreshment and turnover in order to 20% and recently set ourselves a goal of reaching 30% female
ensure continuity and performance of the Board’s responsibilities. participation by 2025. The gender balance at each level of the Group
is monitored and reported monthly to the Executive Committee.
We are committed to increasing the percentage of women on our
Board, as well as in senior management positions and, just as More detail on programmes we have introduced and the gender
importantly, in the Group’s workforce. We believe that such an balance within the Group is given in the Our People section on
increase will benefit the Group, the industry and Chile. pages 48-50.
Q. What policies are in place to promote a diverse pipeline The Board will continue to monitor developments in 2023.
of talent for the future?
The Group is committed to developing a diverse pipeline of talent that
will widen the pool of female and other diverse candidates for Board
and leadership positions in the future. In this, the Group is leading the
way in Chile, particularly with female participation in the workforce,
where Chile remains well behind more developed economies.

/ Board effectiveness
Board effectiveness review Our review process

In accordance with the Code, the Board undertakes an externally
facilitated effectiveness review at least once every three years. In 2022,
the effectiveness review was facilitated by an external consultant, led by
2022
The external review was a comprehensive assessment of how the
Clare Chalmers of Clare Chalmers Ltd, who is independent and apart
Board is working, focused on evaluating the following key areas:
from also conducting the 2019 effectiveness review, has no other
connection with the Group. • Board composition and culture (composition, succession planning,
training and inductions, leadership, dynamics and decision-making)
The 2022 review process commenced with the Nomination and
• Board oversight (strategy, performance, risk, people and executive
Governance Committee planning the scope of the evaluation. The
succession and purpose, values and culture)
Committee considered a shortlist of external evaluators for approval by
the Board. Clare Chalmers Ltd is a leading provider of board evaluations • Stakeholders (workforce engagement, shareholders, customers
in the UK, with strong experience in evaluating FTSE-listed Boards. and suppliers, ESG)
The Board found the 2019 evaluation performed by Clare Chalmers Ltd • Board efficiency (Board meetings, agendas and minutes and
to be insightful and agreed that it would benefit from building on this by secretariat)
engaging Clare Chalmers Ltd a second time. The selected evaluator • The Committees
discussed the process with the Chairman, Senior Independent Director • Board and Committee papers
and the Company Secretary and agreed the interview framework
agenda to be discussed with Board members, Company Secretary,
members of the Executive Committee who regularly attend Board and
Committee meetings and the Company’s Lead External Audit Partner
and Remuneration Adviser, who all held one-on-one interviews with the 2023
evaluator. Feedback on individuals was provided to the Chairman, for The Board will focus on several areas to improve effectiveness:
him to provide feedback to Directors on a one-to-one basis, and the
• More concise presentations
Senior Independent Director (holding a closed session with the
• Board discussions at more preliminary stages before final
Non-Executive Directors) to provide feedback to the Chairman on his
decisions are required
performance in the year. Ms Chalmers also observed a Board meeting,
Audit and Risk Committee meeting and Nomination and Governance • More proactive agenda setting
Committee meeting and conducted a review of Board and Committee • More streamlined delivery of information to the Board that is
papers, terms of reference, the annual report, output of previous board covered in the Committees
evaluations, the board’s calendar and forward-agenda planner. She
visited Chile to deliver the findings of her review in person.
The review was designed to recognise and raise key themes identified
collectively by the Directors, as well as for the evaluator to give their
own perspective from meeting observations and document review,
along with suggestions for improvement and of good practice, and for
the Directors to reflect on how these themes should be addressed going
forward. Ms Chalmers discussed her report initially with the Chairman
and the Senior Independent Director and then presented it to the full
Board in October 2022. The findings of the review were discussed
by the Board and, based on Ms Chalmers’ report, the Directors were
satisfied that the Board and its Committees operated effectively in 2022.
Ms Chalmers highlighted the Board’s strengths as strong skills,
coverage of mining and a good mix of other relevant experience and
backgrounds; strong engagement from the CEO and good access to the
senior team, who get airtime in meetings; thorough NED site visits, with
high-quality feedback to the Board. Recommended opportunities for
further improvement were also highlighted. These are set out below.
In 2020 and 2021, internal evaluations of the Board and its Committees
were carried out to monitor progress and identify further opportunities
for improvement, using targeted anonymous surveys of the Directors.
The survey results demonstrated how recommendations made in the
2019 external review had been addressed despite the challenges
associated with the pandemic.
Jean-Paul Luksic
Chair of the Nomination and Governance Committee

/ Audit and Risk Committee report
Robust controls focused

on the business
“We focus on robust risk management
and control. During the year,
we reviewed external and internal
audit functions, internal control,
compliance and risk management
capabilities. The Group is stronger
as a result.”
Tony Jensen
Chair of the Audit and Risk Committee

Number attended
Tony Jensen (Chair) 7/7

Financial reporting
Jorge Bande 7/7
• Reviewed the 2021 year-end and 2022 half-year financial reports,
Francisca Castro 7/7 focusing on significant accounting matters relating to the Group’s
Other regular attendees included representatives from PricewaterhouseCoopers results.
(PwC), the Group’s external auditor, the CEO, the CFO, the Group Financial Controller, • Reviewed accounting matters likely to impact 2022 year-end results.
the Head of Internal Audit, the Head of Risk, Compliance and Internal Control and the
Company Secretary. • Reviewed the Group’s 2021 Reserves and Resources Statement and
The Committee meets as necessary and at least twice a year. It works within the corresponding audits. Reviewed highlights of the 2022 statement.
framework of a detailed annual work plan. Committee members participate in all other Audits of reserves were carried out at all operating companies.
Board Committees, allowing the Committee to consider the full spectrum of risks Resources audits will be performed during 2023.
faced by the Group.
All Committee members are independent and are considered to have recent and relevant • Assisted the Board in ensuring that the 2021 Annual Report was fair,
financial experience, as well as significant experience relevant to the mining sector. balanced and understandable.
• Reviewed analysis for the 2022 going concern and long-term viability
Key responsibilities statements, including preparation for a future resilience statement.
• Implemented plans to accelerate the financial reporting cycle, which
The Audit and Risk Committee assists the Board in meeting its enabled a successful earlier results announcement in February 2022.
responsibilities relating to financial reporting and control, and to • Reported under the Task Force on Climate-related Financial
risk management. Disclosures (TCFD) framework for the first time in the 2021 Annual
The Committee’s main responsibilities include: Report, with disclosures appropriately reflecting the Group’s position.
• Reviewed action plans to prepare for a potential future requirement
• monitoring the overall financial reporting process, which includes for the Board to confirm the effectiveness of internal controls over
responsibility for reviewing the year-end and half-year financial financial reporting.
reports,
• Reviewed the Group’s tax strategy and tax position, including the
• overseeing the external audit process and managing the relationship effective tax rate, recovery of tax refunds, tax-disallowed expenses
with PwC, the Group’s external auditor, and proposed changes to the tax regime and mining royalties in Chile.
• reviewing and monitoring PwC’s independence and objectivity,
• overseeing internal audit, including monitoring and reviewing the
effectiveness of the Group’s internal audit function, plans, processes
and findings,
• assisting the Board with its responsibilities in respect of risk
management, including reviews of the Group’s risk appetite
and key risks, and
• monitoring the performance of the Group’s compliance and crime
prevention models.

/ Audit and Risk Committee report continued
External audit Risk and internal control

• Conducted a tender process in respect of the 2024 audit, resulting • Assisted the Board with its assessment of the Group’s key risks and
in the selection of Deloitte as the Group’s external auditor. its review of the effectiveness of the risk management and
• Reviewed and approved the 2022 audit plan, including fees. Validated internal control processes.
that PwC incorporated feedback from both the Committee and • Assisted the Board in conducting the annual review of risk appetite
management on the 2021 audit and engaged extensively with statements.
management to align on critical success factors. • Conducted detailed reviews with the General Managers of each of the
• Assessed the effectiveness of the external audit process, reviewed Group’s operations, covering the operations’ key risks, residual risks,
PwC’s independence and approved its performance. climate change risks, materialised risks and identified opportunities.
• Reviewed the Group’s policy in respect of auditor independence • Reviewed the draft of the proposed new Chilean constitution and its
and non-audit services. potential impact on key risks. The proposal was subsequently rejected
• Reviewed the key audit findings in respect of the 2021 audit and by a national referendum.
reviewed PwC’s progress reports in respect of the 2022 audit. • Reviewed the latest developments in cyber security and updated
• Implemented plans which resulted in the successful acceleration action plans to enhance the Group’s risk management maturity in this
of the audit timetable for a February 2022 results announcement. key area.
• Reviewed regulatory changes including the Department for Business, • Reviewed the activities undertaken during the year to further develop
Energy and Industrial Strategy (BEIS) review, developments in the maturity of the Group’s risk management processes.
auditing standards and the FRC’s areas of focus, including its audit • Reviewed the steps taken to ensure that slavery and human trafficking
quality inspection and supervision report. are not occurring in any part of the Group’s business, including in its
supply chains.
Internal audit
• Reviewed key findings from the internal audit reviews conducted Compliance
during 2022. • Reviewed the Group’s whistleblowing arrangements, including details
• Reviewed the quality, experience and expertise of the internal audit of the most significant reports and actions taken, along with plans to
function, confirming its suitability for the business. strengthen the function.
• Approved an update to the internal audit mandate. • Reviewed the process to identify and manage Group employees’
• Reviewed actions to co-ordinate audit scope with PwC to avoid potential conflicts of interest.
duplication or double testing. • Reviewed the due diligence process conducted in respect of the
• Agreed the scope and focus areas for the 2023 internal audit plan Group’s suppliers.
including assurance approach and continuous auditing methodology. • Reviewed training on the Group’s compliance model, crime prevention
model and Modern Slavery Policy. Reviewed activities undertaken
during the year to develop their maturity.
• Monitored the functioning of the Group’s crime prevention model,
in accordance with Chilean and UK anti-corruption legislation.

Q. What were the key areas of focus for the Committee We continued building our capability to prepare for new potential
in 2022? regulations regarding the Board’s confirmation of the effectiveness
We focus on robust risk management and control. During the year, of internal controls over financial reporting.
we reviewed external and internal audit functions, internal control, The Committee assists the Board in undertaking its assessment
compliance and risk management capabilities. We undertook a tender that the Annual Report is, when taken as a whole, fair, balanced
process in respect of the 2024 audit, resulting in the selection of and understandable and that it provides the necessary information
Deloitte as the Group’s external auditor from the 2024 audit to allow shareholders to assess the Group’s position and
onwards. performance, business model and strategy. As part of this
Financial reporting assessment, we used our detailed knowledge of the Company,
Q. What were the Committee’s main activities in respect its financial results and the key accounting judgements applied
of the Group’s financial reporting? in the financial statements to ensure that the tone and content
The Committee reviews the year-end financial statements and of the narrative fairly reflected the financial results for the year.
half-year financial reports and ensures that the key accounting We also reviewed the ore reserves and mineral resources statement
policies, estimates and judgements applied in those financial included in the Annual Report and the corresponding reserve and
statements are reasonable. We also monitor the overall financial resource independent audits. All recommendations stemming from
reporting process to ensure that it is robust and well-controlled. This prior audits were resolved. The Committee also reviewed highlights
includes ensuring that the Group’s accounting and finance function is of the 2022 statement.
adequately resourced, with the appropriate segregation of duties and
The Committee reviewed the going concern basis adopted in the
internal review processes, that the Group’s accounting policies and
financial statements, as well as the detailed long-term viability
procedures are appropriate and clearly communicated, and that the
statement in the Annual Report and has considered tests for an
Group’s accounting and consolidation systems operate effectively.
eventual future resilience statement.
We monitored the implementation of detailed action plans to
The Committee reviewed the Group’s tax strategy and tax position,
accelerate the financial reporting cycle, enabling us to announce our
including the effective tax rate, the status of the recovery of tax
results in February 2022, three weeks earlier than in 2021. The
refunds, tax-disallowed expenses and the impact of the proposed
2021 Annual Report included the first report under the Task Force
changes to the tax regime and mining royalty in Chile.
on Climate-related Financial Disclosures (TCFD) framework, with
disclosures appropriately reflecting the Group’s position. It also
included additional disclosures made to address the points raised by
the Financial Reporting Council’s corporate reporting review team
(“CRRT”) following their review of our 2020 Annual Report.

Q. What significant accounting issues in relation to the financial External audit

statements were considered by the Committee during 2022? Q. What are the Committee’s responsibilities in respect
The main accounting issues we considered were: of the external audit process?
• Asset valuations: our analysis did not identify indicators of a The Committee is responsible for overseeing the Company’s
potential impairment at the 2022 year-end at the Group’s relationship with PwC, the Group’s external auditor. As the Chair of
operations. Accordingly, we have not performed any impairment the Audit and Risk Committee, I have established an effective direct
reviews. Particular focus was placed on Zaldívar, given the relationship with Simon Morley, PwC’s lead audit partner.
importance of the ongoing permits renewal process, and The Committee reviews and approves the scope of the external audit,
Antucoya, given the marginal level of headroom over recent years. terms of engagement and fees. The Committee monitors the
An indicative valuation and sensitivity analysis was performed in effectiveness of the audit process and is responsible for ensuring the
order to assess the sensitivities of the Group’s mining operations independence of the external auditor. The Committee informs the
to key assumptions such as the copper price and the Chilean peso Board of the outcome of the external audit and explains how the
exchange rate, and to make appropriate disclosures within the external audit contributes to the integrity of the Group’s financial
financial statements. As part of this analysis, we considered the reporting. The Committee formally meets with PwC without
appropriate copper price forecasts to use, with reference to the management present at least once a year. We approve the
forward curve as at 31 December 2022 and to consensus analyst performance of the external auditor. The Committee makes
forecasts of the long-term copper price. We have also reviewed recommendations to the Board in respect of the appointment,
the key operating assumptions in the indicative valuation models. reappointment, or removal of the external auditor.
We considered the estimates of the potential future costs relating
to climate risks (consistent with the TCFD scenario analyses) Q. How do you assess the effectiveness of the external
which were incorporated into the indicative valuations. In the case audit process?
of Zaldívar, we considered the importance of the renewal of the We work closely with PwC to ensure that external audit quality is
permits for water extraction and general mining activities to the maintained throughout the year. PwC incorporates feedback from
indicative valuation, and the disclosures in respect of these both the Committee and management on the prior audit and engages
aspects. We considered the marginal positive headroom for both extensively with management to align on critical success factors.
Zaldívar and Antucoya. We also reviewed the additional sensitivity For example, during the height of the COVID-19 pandemic, we
disclosures included in the financial statements. discussed in detail with PwC how to manage the external audit
• Provision for decommissioning and restoration costs at the process, particularly considering travel restrictions. PwC
Group’s mining operations: we reviewed updates to the mine implemented an appropriate mix of remote checks and on-site
closure provisions, including updates to the closure plans reviews, preserving the robustness of the audit process.
reviewed and approved by Sernageomin, the Chilean regulator,
The Committee considers the following factors as part of its review
and changes to the financial parameters used in calculating
of the effectiveness of the external audit process during the year:
the provision balance.
• Reko Diq: we reviewed the accounting for the Reko Diq • the appropriateness of the proposed audit plan, the significant
transaction, including the conclusion that the agreements resulted risk areas and areas of focus, and the effective performance
in the Group having a legally binding right to receive the exit of the audit,
proceeds with no further substantive events required and no • the technical skills and industry experience of the audit
longer had joint control over the joint venture, and it was engagement partner and the wider audit team,
accordingly correct to derecognise the investment in the joint • the quality of the external auditor’s reporting to the Committee;
venture and recognise the gain on disposal in the 2022 year-end • the effectiveness of the co-ordination between the UK and Chilean
results, as well as the determination of the disposal proceeds. audit teams,
• Zaldívar secondary leaching inventory balance: we reviewed • the effectiveness of the interaction and relationship between the
Zaldívar’s evaluation of its secondary leaching (ripios de alta ley Group’s management and the external auditor,
or RAL) inventory balance, which is a significant item in terms of • feedback from management in respect of the effectiveness of the
production volume and value, including the physical sampling audit processes for the individual operations and the Group overall;
undertaken during the year. Our conclusion was that the inventory • the review of reports from the external auditor detailing
balance is correctly stated. its own internal quality control procedures, as well as its
• Going concern and viability: we reviewed the going concern annual transparency report, and
and viability assessments and related disclosures. In particular, • the review of the FRC’s annual Quality Inspection Report on PwC.
we considered the Group’s current strong financial position, its
forecast future performance, the key risks which could impact the In light of this assessment, the Committee considers it appropriate
future results and reviewed robust down-side sensitivity analyses that PwC be reappointed as external auditor for 2023.
which all indicated results that could be managed in the normal
course of business.

Q. How do you assess the independence and objectivity of the A breakdown of the audit and non-audit fees is disclosed in Note 8
external auditor? to the financial statements. PwC has provided non-audit services
The Committee regularly monitors the external auditor’s (excluding audit-related services) which amounted to $241,000,
independence and objectivity in line with the Group’s policy in respect or 12% of the total Group fees for audit and audit-related services.
of auditor independence and non-audit services, which was reviewed This related to the reporting accounting work by PwC UK for the
in 2022. bond issuance.
New regulatory requirements have applied since 2020 in respect In general, where the external auditor is selected to provide
of non-audit services. The FRC issued a “white list” of specifically- non-audit services, it is because it has specific expertise or
permitted services, with all other services prohibited. Permitted experience in the relevant area and is considered the most suitable
services relate to specific activities required by law or regulation and provider. Pre-approval from the Committee is required before
a limited number of types of review or verification work, such as non-audit services can be performed by the external auditor, other
half-year reviews, verification of additional information contained than for services which are considered to be clearly trivial. The
within the Annual Report or cross-referenced from the Annual Committee has reviewed the level of these services over the year
Report, and work as a reporting accountant on transactions or debt and is confident that the objectivity and independence of the auditor
issues. The provision of non-audit services is also subject to a cap, are not impaired by such non-audit work.
so that the total annual fees from non-audit services may not exceed The external auditor provides a report to the Committee at least once
70% of the average audit fee over the prior three years. a year, setting out its firm’s policies and procedures for maintaining
The issue of the $500 million bond in May 2022 required the Group its independence.
to engage PwC UK to act as the reporting accountant for this The Committee considers that PwC remained independent and
transaction, work which is effectively required to be performed by objective throughout 2022.
the Group’s auditor. The Committee assessed this work and
determined that it was not considered to adversely affect PwC’s The UK regulatory requirements in respect of competitive audit
independence, taking into account the nature of the reporting tendering and other related audit committee responsibilities in
accountant work, and the level of fees relative to the Group’s total respect of the external auditor are set out in the Competition &
audit fees. The fees for this work were expected to exceed 70% Markets Authority´s “The Statutory Audit Services for Large
of PwC UK’s average audit fees over the past three years (although Companies Market Investigation (Mandatory Use of Competitive
it was not expected to exceed 70% of the average total Group audit Tender Processes and Audit Committee Responsibilities) Order
fees paid to PwC over this period). Accordingly PwC UK requested 2014” (“the Order”). The Company has complied with the provisions
a waiver from the Financial Reporting Council in respect of this work of the Order during 2022.
prior to performing this work, which was granted.

Q. How long has PwC been the Group’s auditor?

We carried out a tender process during 2014, which resulted in PwC
“In 2022, we assisted the Board with
replacing Deloitte, the previous auditor, and being appointed with its annual update of the Group’s risk
effect from 2015 onwards. Jason Burkitt was the lead audit partner
at PwC for five years from 2015 to 2019 and, in line with normal appetite assessment and evaluation
regulatory requirements rotated off the engagement, with Simon
Morley assuming the role as lead audit partner from 2020 onwards. of emerging and principal risks.”
Q. What are the plans for external auditor rotation?
Under UK regulations the Company’s next mandatory tender would
be in respect of the 2025 audit, marking the 10-year anniversary During 2022, Internal Audit implemented a new system to manage
of the original audit rotation regulations. Other FTSE100 companies its audit reports and findings. This is the system already used by the
are facing similar anniversaries, which could result in an increased Risk and Compliance Management Department, further increasing
demand for audit tenders over the coming years. As previously the integration between the Risk and Internal Audit functions.
disclosed, it was determined that the optimum approach would be The Committee reviewed actions to co-ordinate internal audit scope
to conduct an audit tender process during the second half of 2022 with PwC to avoid duplication or double testing, ensure an efficient
in respect of the 2024 audit to allow for a “cooling-in” period during relationship between the internal and external audit processes, and
2023 and provide a significant transition period. achieve the effective and timely sharing of findings.
PwC, Deloitte, EY and BDO participated in the tender process. During 2022, Internal Audit performed part of its work remotely
KPMG declined. BDO meets the mid-tier “challenger” criteria that due to restrictions associated with the COVID-19 pandemic. The
UK regulators are seeking to promote. Tendering firms held over Committee monitored the quality of the audit work and is comfortable
50 meetings with management and in my role as Chair of the Audit that an appropriate control environment has been maintained.
and Risk Committee, I participated in meetings with all tendering
firms in advance of their formal tender presentations. Risk management, compliance and internal control
Q. What are the Committee’s responsibilities in relation to risk
The Committee reviewed proposals and recommended Deloitte
management and internal control?
to the Board as first choice, along with a second choice
The Committee plays an important role in assisting the Board
recommendation. The Board selected Deloitte as the next external
with its responsibilities regarding risk management and related
audit firm for the 2024 audit onwards.
controls. The Board has ultimate responsibility for overseeing the
Internal audit Group’s emerging and principal risks and its risk appetite, as well
Q. What are the Committee’s main activities in relation as maintaining adequate control systems which were in place
to internal audit? throughout the year and up to the date of this report. The
The Committee monitors and reviews the effectiveness of the Committee’s terms of reference incorporate the FRC’s Guidance
Group’s internal audit function. The Head of Internal Audit reports on Risk Management, Internal Control and Related Financial and
directly to the Committee and a meeting is held without management Business Reporting and the Board is satisfied that the Company’s
present at least once a year. risk management and internal control systems accord with this
guidance. In order to achieve our business objectives, internal control
We also monitor the resources available to the Internal Audit team systems are designed to identify and manage, rather than eliminate,
so that it has an appropriate mix of skills and experience for the the risk of failure, but can only provide reasonable, not absolute,
Group’s businesses. Internal Audit utilises a mix of permanent team assurance against material misstatement or loss.
members, temporary secondees from elsewhere in the Group and
third parties, particularly for areas such as IT-related reviews. Q. What were the Committee’s main activities in 2022
The permanent team includes members with specific expertise in relating to risk management?
some of the most relevant areas for the Group, including technical We continued to monitor actions designed to enhance the maturity
mining experience, IT, risk, compliance, internal control, sustainability of our risk management processes.
and cyber security.
We assisted the Board with its annual update of the Group’s risk
The Committee reviews and approves Internal Audit’s work plan appetite assessment and evaluation of emerging and principal risks.
for the coming year, including its focus areas as well as budget, Emerging risks are identified through the reporting of events that
headcount and other resources. Internal Audit takes a risk-focused have had an impact on the Group’s operations and budgets during
approach when planning its work, in particular utilising the risk the year and whether and by how much the risk has impeded the
registers maintained by each business to monitor and control their budget for each risk mitigation objective, complemented by a
key risks. We ensure the plan is flexible and has sufficient resources benchmarking review of emerging and principal risks that have been
to allow for special reviews that may be required during the year. identified by our peers. During 2022, the Committee and the Board
During 2022, the Committee approved an updated internal audit reviewed the Group’s 18 key risks, sub-risks, preventative controls
mandate and approved the 2023 internal audit plan. and action plans. While risk appetite levels have not changed, the
Internal Audit presents to the Committee summaries of the key Committee reviewed and the Board approved updates to the risk
findings from the reviews conducted during the year and any actions appetite statements for the principal environmental, operation and
that have been taken or proposed. All Internal Audit reports, when tailings risks.
finalised, are distributed to Committee members.

Active risk identification and management took place, including: (1) change in principal risks over the coming 12 months. If there is
geopolitical and macroeconomic risks with a focus on the impact of a specific issue at one of the operations that requires more detailed
the war in Ukraine and discipline in cost management; (2) proposed understanding, we ask the General Manager to attend the next
changes to legislation in Chile; (3) social risks; (4) climate change; meeting to discuss that issue. This direct interaction between
and (5) supply chains. Actions were taken during 2022 to simplify the Committee and the General Managers is extremely valuable
the risk management methodology and verify on-site key risks, carry – not just in terms of the direct insight into each operation it affords
out change management for the implementation of the simplified risk the Committee, but in allowing us to emphasise the importance we
management methodology, increase risk management maturity and attach to strong risk management processes.
communicate our risk appetite. The business continuity plan was We reviewed steps taken to ensure that slavery and human
verified. The focus in 2023 will be on implementing a new trafficking are not occurring in any part of the Group’s business
methodology for materialised risks and reviewing financial reporting, including its supply chains.
operational control and compliance.
The Committee held a specific review of the latest developments
The risk, compliance and internal control function presented to the in cyber security and updated action plans to enhance the Group’s
Committee several times during the year on developments in the maturity in this key risk area.
Group’s risk management processes and Group-level strategic risks.
The General Managers of the Group’s operations presented to Q. How does the Committee interact with the Board and
the Committee their assessments of their respective operations’ other Committees on risk-related matters?
material potential risks, trends, residual risks, significant materialised I report to the Board following each Committee meeting,
risks as well as operational opportunities. The meeting served as a summarising the main matters reviewed. These regular reports allow
forum for sharing experiences and action steps. Directors to understand the main issues under consideration and,
The analysis of emerging and principal risks includes an assessment when relevant, to discuss them in more detail with the Board.
of the significance of the risks based on the probability of the risk The Risk Management function presents directly to the Board,
materialising and the potential impact of the risk, as well as an providing updates of the analysis of the Group’s principal risks and
evaluation of the quality of the controls in place in respect of those mitigating actions.
specific risks. The evaluation of the potential impact is not limited
We try to ensure that the review of risk by the Board is not
to economic factors but includes issues such as safety, health,
compartmentalised into isolated sessions but is integrated into
environmental, regulatory, community and reputational issues.
everything considered by the Board. To this end, the overall report
We also examine whether those risks have been increasing
provided by the CEO to the Board at each meeting covers any
or decreasing in significance and the budget for each risk mitigation
significant materialised risks. Each proposal presented to the Board
objective to assist with the identification of emerging risks.
incorporates an analysis of its impact on the principal risks.
The General Managers present their forecasts of any expected
Audit and Risk Committee, Board, and risk management function interaction
BOARD RISK MANAGEMENT FUNCTION

The Chair of the Audit and Risk Committee reports to the Board following each Committee meeting, The risk management function
allowing a wider discussion of the risk and compliance issues reviewed in detail by the Committee. provides regular presentations
The Board also provides feedback on the analysis of emerging and principal risks for Board agenda covering changes in the Group’s
items which is incorporated into the Board’s review of the effectiveness of the Group’s risk emerging and principal risks, major
management and internal control systems. materialised risks and updates on
risk management and compliance
processes.
AUDIT AND RISK COMMITTEE There are detailed presentations at
The Committee supports the Board in its review of the effectiveness of the Group’s risk each Committee meeting covering
management and internal control systems. the risk management process,
significant whistleblowing reports
and updates on compliance
GENERAL MANAGERS OF THE OPERATIONS processes and activities.
General Managers are responsible for the risks relating to their operation and give detailed
presentations to the Committee at least once a year, including on each operation’s emerging,
principal and materialised risks.

These processes have assisted the Board in carrying out a robust The Committee reviewed the Group’s whistleblowing arrangements,
assessment of the emerging and principal risks facing the Company, which encourage employees and contractors to raise concerns in
including those that could threaten its business model, future confidence about possible improprieties or non-compliance with the
performance, solvency, or liquidity and to assess the acceptability Group’s Code of Ethics. We received regular reports on reported
of the level of risks that arise from the Group’s operations and whistleblowing incidents, detailing the number and type of incidents
development activities. and outlining the most significant issues and the actions resulting
from their investigation, along with plans to strengthen the function.
Each year the Board, with the support of the Committee, reviews the
The Committee reviewed the process to identify and manage Group
effectiveness of the Group’s risk management and internal control
employees’ potential conflicts of interest, and reviewed the due
systems. The review covers all material controls, including financial,
diligence process conducted in respect of the Group’s suppliers.
operating and compliance controls. The 2022 review confirmed the
effectiveness of the Group’s risk management and internal control Q. What were the Committee’s main activities in 2022 relating
systems, with no significant failures or weaknesses being identified. to internal control?
Members of the Audit and Risk Committee participate on all the other During 2022, the Committee reviewed the Company’s internal
Board Committees, allowing the Committee a good understanding control framework which consists of three lines of defence.
of risks being considered by these Committees and the full spectrum First, business units identify and manage risks. Second, the risk
of risks faced by the Group. management function provides oversight and support. Third, Internal
Audit provides independent assurance. In addition to regular reviews,
Compliance a session was held to review the effectiveness of risk management,
Q. What are the Committee’s main responsibilities relating compliance and internal control, the effectiveness of internal controls
to compliance? over financial reporting, and the effectiveness of internal audit and
The Committee ensures that appropriate compliance policies and the relationship with external audit. We feel confident that the reviews
procedures are observed throughout the Group. The risk, compliance undertaken by the Committee during 2022 have allowed it to
and internal control function makes regular presentations to the perform an appropriate review of the effectiveness of the Group’s
Committee covering developments in the Group’s compliance risk management and internal control systems during the year. The
processes and significant compliance issues. Chilean law requires reporting of these activities by the Committee to the Board supports
the Mining division’s holding Company, Antofagasta Minerals SA, the Board’s confirmation that it has undertaken a review of the
and each of the operations, to appoint a Crime Prevention Officer. effectiveness of the Group’s risk management and internal control
The Committee makes recommendations regarding these systems during the year as required by the UK Corporate
appointments as well as monitoring and overseeing the performance Governance Code.
of these roles. The Crime Prevention Officer for Antofagasta Minerals
SA is currently Patricio Enei, the Vice President of Legal. As the Tony Jensen
compliance function reports to the CFO, this arrangement provides Chair of the Audit and Risk Committee
for the appropriate segregation of duties.
The Committee receives reports from the risk, compliance and
internal control function in respect of the Group’s crime prevention
model, in accordance with Chilean and UK anti-corruption legislation.
The Crime Prevention Officer presents a report directly to the Board
every six months.
Q. What were the Committee’s main activities in 2022 relating
to compliance?
The Committee monitored the functioning of the Group’s crime
prevention model, in accordance with Chilean and UK anti-
corruption legislation. Compliance activities centred on the three
pillars of prevention, detection and action. The crime prevention
model was recertified. We reviewed training on the Group’s
compliance model, crime prevention model and Modern Slavery
Policy. We reviewed activities undertaken during the year to develop
their maturity.

/ Sustainability and Stakeholder Management Committee report
Sustainability and
stakeholder management
“Committee meetings provide a
forum for the detailed discussion
of many of the key issues that
matter to our stakeholders such
as environmental matters including
climate change, the safety and
health of our workforce and
other matters that support local
communities where we operate.”
Vivianne Blanlot
Chair of the Sustainability and Stakeholder Management Committee

Number attended
Vivianne Blanlot (Chair) 5/5

Policies and commitments
Ramón Jara 5/5
• Reviewed the Group’s Sustainability Policy and new Energy and
Juan Claro 5/5 Water policies, aligned with The Copper Mark’s ESG performance
Jorge Bande 5/5 evaluation and performance expectations according to ICMM´s
Michael Anglin 5/5 principles.
Eugenia Parot 5/5 • Reviewed the implementation plan to adopt the new Global Industry
Standard on Tailings Management (GISTM), published by the ICMM in
Other regular attendees included the CEO, the Vice President of Corporate Affairs August 2020. The Group has committed to fulfil its requirements by
and Sustainability and the Company Secretary.
August 2023 for its critical tailings’ deposits and by August 2025 for
Sessions were also regularly attended by Directors who were not Committee members.
The Committee meets as necessary and at least twice per year.
its lower-risk ones.
• Reviewed the updated Human Rights Policy.
The Sustainability and Stakeholder Management Committee supports • Reviewed progress towards the achievement of the Copper Mark
the Board in providing guidance on the Group’s safety, health, registration which was achieved by all of the Company’s mining
environmental and social responsibility strategies and policies, operations.
in the oversight of corresponding programmes and in making Safety and health
recommendations to the Board to ensure the views and interests of the • Reviewed the Group’s safety and occupational health strategy,
Group’s stakeholders are considered in the Board’s deliberations. performance and plans. Reviewed the task risk analysis process,
The Committee reviews the Group’s framework of safety, health, psychosocial risk strategy and the safety plan for the new integrated
environmental, human rights and social policies, monitors the Group’s remote operating centres.
performance in setting and meeting environmental, social, safety and • The Board reviewed the 2022 report on the Company’s tailings
occupational health commitments and provides guidance on how the storage facilities, issued by the independent technical review Board
Company should reflect the views and interests of stakeholders appointed to advise the Group on their operation.
in relation to operational, projects and other business matters.
The material subjects and results of this engagement are reported
periodically to the Committee through standalone reports and as part
of broader Committee discussions.

/ Sustainability and Stakeholder Management Committee report continued
Community relations Q. How did the Committee consider climate change during
• Reviewed the water situation in the Choapa Valley after 13 years of the year?
lower-than-normal rainfall and Los Pelambres’ water management As noted by the Chairman on page 6, combatting climate change sits
strategy, including operational water management initiatives in order at the centre of Antofagasta’s strategy. In particular, lowering
to best support communities. emissions and reducing continental water use remain two issues for
• Reviewed the public affairs strategy for the Group’s northern which we have a group-level strategy, board-level focus and
operations. Company-wide initiatives.
• Reviewed the Group’s communications strategy and monitored The Committee assisted the Board in considering various climate
results from the Group’s communications activities. change-related initiatives during the year, including those in the
• Reviewed results from the Group’s perception study, carried out Board’s assessment of the physical and transition risks of climate
every two years at a national level within the Choapa Province and change and their impact on the net present value of the Group.
Antofagasta Region and with national opinion leaders and Mining The Group’s Climate Change Strategy, reviewed by the Committee
division suppliers. and approved by the Board in 2020, takes a multidisciplinary
Environment approach to the challenges posed by climate change, focusing on
• Reviewed environmental management reports. the development of climate change resilience, the reduction of
greenhouse gas emissions, the efficient use of strategic resources,
• Reviewed the Group’s response to the concentrate pipeline incident
the management of the environment and biodiversity, and the
at Los Pelambres.
integration of stakeholders.
• Reviewed environmental reviews related to Zaldívar’s water rights
extension. The Committee reviewed the community water situation in the
• Reviewed a progress report on the development of an inventory Choapa Valley, which has had 13 years with lower-than-normal
of Scope 3 emissions and next steps. rainfall. As part of this, the Committee also reviewed Los Pelambres’
water management strategy and operational water management
Q. How was the Group’s safety performance in 2022? initiatives.
This was a true highlight for 2022. We are very pleased to report
The Committee reviewed a progress report on the development of an
that the Group recorded its strongest safety performance on record.
inventory of Scope 3 emissions and next steps. The Company has
During the year, there were no fatal accidents and the Group
short-term and long-term Scope 1 and 2 emission reduction targets
recorded only 42 High Potential Incidents, 35% fewer than in 2021.
with the goal of achieving carbon-neutrality by 2050. During 2022,
The Lost Time Injury Frequency Rate also improved, by 37% to 0.84.
three years earlier than the target date of 2025, the Group achieved
This year’s challenge is to further improve on these results.
its Scope 1 and 2 30% reduction target and will set a new near-term
Q. What is the Committee’s role in respect of the Company’s goal in 2023. With respect to Scope 3 emissions, the Group has
policies that relate to sustainability and stakeholder committed to define a long-term target in 2023 or as soon as
management? possible thereafter.
The Committee oversees the development of the Group’s policies
Q. How does the Committee ensure that the Board considers
relating to sustainability and stakeholder management. The
the views and interests of stakeholders?
Committee does not review implementation – this is a matter
The Committee does not interfere in the day-to-day management
for each individual operating Company.
and implementation of the Group’s policies and procedures.
During 2022 the Committee provided input in relation to the However, meetings provide a forum to discuss key trends and
proposed update to the Group’s Sustainability Policy and new Energy issues that matter to local communities, our workforce, national and
and Water policies, which are aligned with the Copper Mark’s ESG local governments, regulators and other stakeholders. Many of these
performance and expectations of the ICMM. issues are identified as part of each operating companies’ risk
The Committee also provided input on the implementation plan to management and community engagement processes, which are
adopt the new Global Industry Standard on Tailings Management submitted by management to the Committee for their information.
(GISTM) which was published by ICMM in August 2020 and the Communicating with our stakeholders during difficult times has been
Group’s operating companies have committed to fulfil its key to strengthening mutual trust and understanding. We work hard
requirements by August 2023 for critical tailings deposits and to respect their interests and ensure that they understand our
by August 2025 for lower-risk ones. ambitious safety, occupational health, environmental and social
commitments.
The Committee also reviewed proposed updates to the Group’s
Human Rights Policy. As Chair of the Committee, I report to the Board following each
Committee meeting, summarising the main matters reviewed by the
Committee.

Q. How does the Committee ensure that the Group’s tailings
storage facilities are safe?
“The Committee makes
The stability and safety of our tailings storage facilities (TSFs) is a recommendations to the Board
primary concern for us and many of our stakeholders, and the
Committee and the Board are focused on ensuring that the policies to ensure the views and interests
and procedures implemented by our operating companies ensure
that the TSFs continue to be stable and safe. of the Group’s stakeholders
Chile experiences a significant amount of seismic activity and as are considered in the Board’s
a consequence there are strict regulations governing the
construction of TSFs in the country. These regulations apply to all deliberations.”
mining and other construction, including the storage facilities where
tailings are deposited. Chilean standards have prohibited the
construction of TSFs using the upstream method, which is
Q. What are the Committee’s priorities in 2023?
commonly used in other countries but can pose significant safety
Our number one priority continues to be the safety and health of our
risks. Current Chilean legislation also requires a stability analysis of
employees, contractors and local communities. We will continue to
TSFs’ walls, a review of safety measures and the development of
provide feedback to our mining operations, encouraging them to
detailed emergency plans in the event of a major incident.
further improve upon our record safety performance in 2022 and
The Group’s governance structures are designed to encourage the continue to reinforce the practices that resulted in the strong
independent management and monitoring of our TSFs: internal performance achieved in 2022.
teams have reporting lines not linked to the mine operation and an
The Committee will continue to receive feedback from our mining
independent tailings review Board (ITRB) visits our TSFs regularly,
operations on the implementation of the Group’s environmental
assessing risks and making recommendations to ensure their
management system and we will continue to oversee the
continued safety. The Committee and the Board review these reports
implementation of our Climate Change Strategy, aimed at meeting
and challenge management on their recommendations.
our greenhouse gas targets for reduced carbon dioxide emissions.
The Committee and the Board also receive regular reports on the
The Group has successfully contracted power supply agreements
operation of the Group’s TSFs. Following the Group’s adoption in
over the last few years and since April 2022 the electricity supply
2020 of a tailings management policy aligned with the Global
contracts for all of our mining operations come from renewable
Industry Standard on Tailings Management (GISTM), the Committee
sources.
has monitored operating companies’ implementation of this policy,
along with reports from management and the ITRB. The Group’s The Committee will continue to oversee the implementation of the
operating companies have committed to fulfilling the GISTM Group’s Climate Change Strategy during the year and to assess
requirements by August 2023 for critical TSFs and by August 2025 whether the Group’s social programmes and the work done with
for lower-risk TSFs. Operating companies have established their communities close to our operations is in accordance with the
own governance structures, plans, tailings management systems and Group’s Social Management Model.
implementation timelines.
Vivianne Blanlot
Further information on our TSFs, including the risks and the Chair of the Sustainability and Stakeholder Management
governance measures in place, can be found on page 58. Committee
Q. How are community relations managed throughout
the Group?
Dialogue with local communities is crucial for aligning views,
preventing disputes and addressing concerns. To strengthen this,
our operating companies use various engagement mechanisms,
including conversations with members of the community, round
tables, community meetings, participatory environmental monitoring
with the community and site visits to our operations, as well as
communicating through the media and on websites and social
networks.
The material subjects and results of this engagement are reported
periodically to the Committee through standalone reports and as part
of broader Committee discussions.

/ Projects Committee report
Project pipeline progressed

during the year
“The Committee reviews all
aspects of major projects to be
submitted for Board approval,
highlighting key matters for the
Board’s consideration.”
Michael Anglin
Chair of the Projects Committee
2022 membership and meeting attendance • Reviewed a $179.5m advance of funds to cover critical path activities
Number attended for Los Pelambres’ Desalination Plant Expansion and Concentrator
Michael Anglin (Chair) 4/4 Pipeline projects.
Jorge Bande 4/4 • Reviewed the application of the Company’s internal carbon price
Ramón Jara 4/4 in assessing alternative materials transport cases for the Polo Sur
project
Eugenia Parot 4/4
• Reviewed an in-pit tailings deposition project which considers using
Other regular attendees included the CEO, the CFO, the Vice President of Projects, the Tesoro Central pit at Centinela, followed by the Tesoro North East
the Projects Finance Manager and the Company Secretary.
and Esperanza pits, to cover Centinela’s tailings management needs
Sessions were also regularly attended by Directors who were not Committee members.
The Committee meets as necessary and at least twice per year.
for 15 years and possibly for the life-of-mine.
Project reviews – execution phase
Key responsibilities • Monitored progress in the execution of Phase 1 of the Los Pelambres
Expansion project, including the revised capital expenditure estimate
The Projects Committee reviews all aspects of projects to be submitted of $2.2 billion. Reviewed the consequences of the marine works
for Board approval, highlighting key matters for the Board’s incident.
consideration throughout the project’s development and making • Reviewed the project designed to repower and technologically
recommendations to management to ensure that all projects submitted upgrade Los Pelambres’ coarse ore transport system, including
to the Board are aligned with the Group’s strategy and risk appetite. updates to the project’s capital expenditure and development
programme.
The Committee adds an important level of governance and control to the
• Monitored progress in the execution of the Zaldívar Chloride
evaluation of the Group’s projects and plays a key role in providing the
Leach project.
Board with additional oversight of the Group’s projects portfolio. This
includes overseeing the establishment of project development guidelines, Q. What is the Projects Committee’s approval authority?
drawing from best practice, industry experience and lessons learned The Committee is not responsible for approving projects – that is for
from other Group projects. the Board to decide. Our role is to assist the Board by ensuring that
projects are following a standard, structured process using
Key activities in 2022
consistent analysis, execution and evaluation practices. The
Committee oversees the full project development, from the early
Policies and commitments stages to the start of operations, carefully assessing and robustly
• Reviewed the Group’s projects portfolio, including budgets challenging investment proposals prior to submission to the Board,
and schedules. monitoring development and construction progress and ensuring
Project reviews – studies phase lessons learned are applied to future proposals. The Committee
• Reviewed progress with Centinela’s Second Concentrator project’s invites management to consider different perspectives, ideas and
commitment phase and amendments to the timetable for a potential improvements to enhance the value of the Group’s projects, enabling
execution decision. focused deliberation when the project is presented to the Board.
• Reviewed a proposal to ensure water supply for the construction
phase of Centinela’s Second Concentrator project.
• Reviewed a proposal to award the electrical power contract for
Centinela’s Second Concentrator project, subject to the project’s
investment decision.

“The Committee supports the Board by ensuring that the
Group’s projects portfolio follows approved and consistent
guidelines and that project execution decisions have been
thoroughly reviewed before being put forward for Board approval.”
Q. What tools does the Committee use? The Committee reviewed the project’s ESG profile, noting that 100%
The Committee provides guidance to each project manager, from the of the power will come from renewable sources, and that it will use
early stages of project planning through to completion, to ensure that sea water and thickened tailings. Environmentally, the project seeks
policies, strategies and the Group’s Asset Delivery System (ADS) to avoid and, if necessary, control any environmental impact
implementation framework are applied. associated with its development, including air quality, archaeological
preservation and biodiversity. Socially, the project seeks to generate
ADS is a project management system whose processes and
positive externalities and benefits in the supply chain and manage
practices are widely used in the mining industry. ADS sets standards
reputational risks. It has identified all relevant stakeholders,
and common criteria, including governance by a steering committee,
established a community relations strategy and is developing
functional quality assurance reviews and risk management.
stakeholder, community and communications plans. With respect to
In some cases, the Committee may recommend additional measures, climate change, the objective is to facilitate early action and
including independent peer reviews, trade-off studies or further adaptation in relation to risks and opportunities.
analysis in relation to the incorporation of potential new technologies
The Committee reviewed the project’s financing plan. It also reviewed
or processes.
opportunities associated with the potential outsourcing of the sea
Q. What were the Committee’s key activities in 2022? water supply system and electrical substations. The Committee
Execution – Phase 1 of the Los Pelambres Expansion project endorsed a proposal to ensure water supply for the construction
phase of the project through to August 2024 and reviewed an
A new capital estimate of $2.2 billion was endorsed by the Committee
electrical power contract subject to the investment decision.
and approved by the Board, addressing the impact of the COVID-19
pandemic, execution plan interferences, input price increases and In line with our disciplined approach to capital allocation, the decision
other deviations related to the social and geopolitical environment. on when to submit the project to the Board for approval during 2023
will consider the completion date of the Los Pelambres Expansion
A marine works incident caused by unseasonal sea swells impacted
project as well as ongoing discussions on the tax reform and mining
the project schedule, delaying the start date of the desalinated water
royalty bills in Chile, and the rewriting of the Chilean constitution.
supply until the second quarter of 2023. The Committee discussed
the investigation and lessons learned from the incident. See page 88 for more information on Centinela’s Second
Concentrator project
See page 86 for more information on Phase 1 of the Los Pelambres
Expansion project. Studies – Polo Sur project
Execution – Coarse ore conveyor project The Committee reviewed the application of the Company’s internal
carbon price for the Polo Sur project used as part of the
The Committee reviewed developments in the execution of the
determination of the relative attractiveness of alternate conveyor,
project to repower and technologically upgrade Los Pelambres’
truck and road train transport cases.
coarse ore transport system, including updates to the project’s
capital expenditure and development programme. Studies – In-pit tailings deposition project
Execution – Zaldívar Chloride Leach project The Committee reviewed an in-pit tailings deposition project which
considers using the Tesoro Central pit at Centinela for tailings
The Committee monitored progress following mechanical completion,
deposition, followed by the Tesoro North East and Esperanza pits,
achieved in December 2021, and progress towards operational
covering Centinela’s tailings management needs for 15 years and
transfer to Zaldívar in February 2022.
possibly for the Base Case life of mine of the concentrator plant.
See page 87 for more information on the Zaldívar Chloride Leach This project would defer investment in raising the height of the
project walls of the current tailings storage facility. The Committee
supported a recommendation from Centinela to start the project’s
Studies – Future development of Los Pelambres
commitment phase.
The Committee reviewed progress of the separate EIA applications
for Phase 2 of the Los Pelambres Expansion project, involving Q. What are the Committee’s priorities in 2023?
the desalination plant expansion and mine life extension, and The Committee will continue to monitor the Group’s key projects.
recommended that the Board approve funds to advance the Los The Committee will continue to oversee the completion of
Pelambres’ rerouted concentrate pipeline and water supply pipeline construction of Phase 1 of the Los Pelambres Expansion project.
to cover critical path activities.
The Committee plans to review the investment decisions for
See page 87 for more information on Phase 2 of the Los Pelambres Centinela’s Second Concentrator project and the Polo Sur project.
Expansion project
The Committee will review the progress of studies for Phase 2
Studies – Centinela Second Concentrator project of the Los Pelambres Expansion project.
The Committee reviewed progress on Centinela’s Second
Michael Anglin
Concentrator project, currently in the commitment phase leading up
to a potential investment decision, in order to progress project
Chair of the Projects Committee
development with further detailed engineering, construction
permitting and risk mitigation.

/ Remuneration and Talent Management Committee Chair's introduction
Enabling our strategy through pay

and talent management practices
“As a Committee, we seek to
ensure the best pay practices for
Antofagasta in order to remain
a world-class employer attracting
and retaining the best talent.”
Francisca Castro
Chair of the Remuneration and Talent Management Committee
2022 membership and meeting attendance1 Dear shareholders

Number attended I am pleased to present the 2023 Directors’ and CEO's Remuneration
Francisca Castro (Chair) 6/6 Policy and 2022 Directors’ and CEO's Remuneration Report.
Michael Anglin 6/6 • This report comprises this letter, an ‘at a glance’ section, the 2022
Vivianne Blanlot 5/6 annual report on remuneration, which details the implementation
Tony Jensen 6/6 of our pay policy in 2022 and the 2023 Directors’ and CEO's
Remuneration Policy.
1. During the year the Committee also met with independent remuneration consultants
Willis Towers Watson outside formal meetings to receive an update on global 2023 Directors’ and CEO’s Remuneration Policy
remuneration and talent management strategies and implementation, and on investor The 2023 Directors’ and CEO's Remuneration Policy ("2023 Policy")
and proxy adviser advice ahead of the voting season.
is set out on pages 149-154 and is being presented to shareholders for
• Other regular attendees include the CEO, the Vice President of Human Resources approval at the 2023 AGM. Subject to approval, the policy will supersede
and the Company Secretary. the 2020 Directors’ and CEO's Remuneration Policy approved by
• At least one Committee member serves on each of the other Board Committees, shareholders at the 2020 Annual General Meeting ("2020 Policy").
which allows the Committee to consider strategic priorities and the views of all
stakeholders in its deliberations. In developing the 2023 Policy, the Committee undertook a detailed
• The Committee meets as necessary in practice and at least four times a year. review of the 2020 Policy, considering the impact of potential changes
• All Committee members were independent in 2022. on overall quantum, developments in market practice and expectations
in the UK and in Chile, the alignment between pay and performance
during the current policy period and feedback from employees,
Key report sections: shareholders and other stakeholders.
In proposing the 2023 Policy, the Committee has concluded that the
Group’s fundamental remuneration structures continue to be fit for
Remuneration ‘at a glance’ 146 purpose. For executive pay, this includes a base salary, an annual bonus
plan that pays out in cash and an LTIP that consists of a combination of
Remuneration Policy 149 restricted and performance awards, with the payment of LTIP awards
in cash on vesting.
Single figure remuneration table 155
While some components of these structures continue to differ from
those of companies with a significant presence, headquarters and CEO
Remuneration for 2023 165 based in the UK, the Committee believes that our remuneration
structures have worked well. We consider that our variable
remuneration arrangements are simple, easily understood and are
effective for our circumstances, while incorporating an appropriate blend
of local Chilean market practice and the expectations of a company with
a premium listing on the London Stock Exchange.

While we recognise that some shareholders expect senior executives to • Despite a challenging year resulting in a decrease in revenue and
maintain share ownership as a percentage of base salary both during profit before tax, primarily as a result of lower copper realised
and following employment, the Committee considers that given the prices and lower copper sales volumes, the Group has had solid
Company’s controlling shareholding interest and governance structures, operational results meeting its adjusted production and cost targets,
there are sufficient checks and balances in the Group to ensure that generating EBITDA of $2.9 billion, while continuing with essential
executive pay is aligned with the long-term interests of the Company. growth and innovation projects,
Although the Committee decided that no changes to core remuneration • The safety and health of people remains our top priority. In 2022, the
structures were necessary, the market for executive talent for Group achieved record safety results, with no fatalities, a reduction
successful companies remains competitive and therefore some changes in High Potential Incidents (HPIs) and in the Lost Time Injury
were required. The Committee debated extensively the most appropriate Frequency Rate (LTIFR), and the implementation of a supervisors’
ways to ensure that we retain and motivate our senior management leadership skills training programme adding to the robust framework
within the framework of the current pay structure. Following these already in place,
deliberations, we have proposed to change the CEO’s policy and contract • We strive to create a diverse and inclusive workplace that stimulates
by extending the notice period and including change of control innovation and allows our employees to reach their full potential.
protections and an incentive to work with a successor, whenever In 2017, the Group underwent an assessment of its diversity and
necessary, in the future. inclusion maturity level and was rated as Tier 2 – Emerging. In 2022,
thanks to the implementation of our robust Diversity and Inclusion
As part of the process of reviewing our 2020 Policy, I engaged with our
Strategy and action plans, the Group reached Tier 4 – Collaboration.
key shareholders and proxy advisers on behalf of the Committee to
We are also proud to report that female direct employees' participation
explain these proposals and reported the feedback received to the
reached 20.6% by the end of 2022. The Group remains committed to
Committee for its consideration in finalising the 2023 Policy. I received
driving transformational change in order to establish itself as a leader
feedback that shareholders understood our unique circumstances and
in diversity and inclusion, which is crucial to the success of our
our 2020 Policy's longstanding application and appropriateness and
business strategy,
were generally supportive of these proposed changes. However, the
• To foster the growth and development of our workforce, our Talent
Committee did receive feedback that a payment of 12 months was the
Management Strategy is centred on maintaining the critical skills and
accepted norm for UK governance purposes for a termination payment
abilities needed to overcome present and future business challenges.
to an executive director in a change of control situation and we changed
This is achieved through attracting and retaining talented individuals
our original proposal for a longer 24 months termination payment
and providing career development opportunities within the Group,
following our engagement with shareholders. I would like to thank all our
shareholders who engaged with us and provided valuable input and • During 2022, the Group concluded an engagement survey across
continued support. all its group operations and, as a result, implemented action plans
to address areas such as reward, recognition and talent acquisition.
2022 Directors’ and CEO’s Remuneration Report – The Committee held a stand-alone session to discuss the outcomes
remuneration in context of this survey during the year and will consider the valuable insights
The Committee considers a range of factors and KPIs when making gathered from the survey in its future decision-making processes,
decisions on remuneration, including the views of stakeholders • By the end of 2022 we had achieved our scope 2 reduction
(including shareholders and employees) and the Company’s emissions for 2025, three years earlier than planned. All of our
performance. A summary of these factors and KPIs is set out in the mining division's energy is now sourced through renewable contracts
“at a glance” section of the 2022 Directors’ and CEO's Remuneration and during 2023 we will focus on building our decarbonisation plan
Report on page 146. However, I would like to highlight a number for 2030, which will be aligned with our 2050 net zero ambition.
of important perspectives for this report: In addition, we continue to focus on the climate related aspects
• Our CEO sets the standard in prioritising the safety and wellbeing of environmental health and sustainability through our climate
of our employees and contractors and the Group plays a major role roadmap, the circular economy and water efficiency.
in supporting the Chilean economy, local communities and other
stakeholders as set out in detail on page 44 of the Annual Report,
• We maintain excellent relations with our workforce and five new
collective bargaining agreements were successfully concluded by
October 2022. These agreements are on top of the inflation linked
increases that are already built into agreements and employees'
contracts providing financial security in periods of higher inflation,

/ Remuneration and Talent Management Committee Chair's introduction continued
CEO’s performance and incentive outcomes for the year LTIP outcome
Annual bonus outcome The outcome of the relative total shareholder return measure of the LTIP
The overall bonus for the CEO was 81% of the maximum. performance targets will not be known until after the Annual Report is
published, but it is anticipated that the overall LTIP vesting level will be
The result for Core Business targets was 60% of the maximum, and 100% of the maximum. 100% of the Mineral Resources Increase target
this reflects the challenging head winds of higher inflation and input was achieved, as well as 100% of the Social and Environmental targets
costs during the year. The result for the Business Development targets and 100% of the Projects’ performance targets. During the performance
was 65% and the Sustainability and Organisational Capabilities targets period, the Committee amended target to remove the impact of
was 70%, with safety being met in full. The outcome was adjusted as exceptional events (Covid-19) in respect of the Los Pelambres Expansion
there were no fatal accidents during the year. This triggered a project, reflecting delays outside of management control. The actual final
standalone upward adjustment to the total performance score vesting for the LTIP will be included in next year’s report.
outcome, equal to + 10%.
As well as recording its best ever safety record, the Group also
performed well in exploration, innovation, and Digital Transformation
projects, resulting in these elements of the annual bonus paying out at
74%. Furthermore, the CEO demonstrated commitment and
perseverance in delivering against challenging individual objectives,
described on page 157. An illustration of the outcomes is shown below. Mineral Resources Social and Environmental
Find out more Increase target met targets met
on P156
100% 100%
Annual bonus for 2022
Projects’ performance
targets met
100%
Core Business
Weighting 50%
70% 60%
Business Development
Weighting 25%
Sustainability and The Committee has considered whether the overall vesting of
65% Organisational Capabilities performance awards that were granted in 2020 could give rise to
Weighting 25% windfall gains and is satisfied that the LTIP awards fully reflect the
achievements and shareholder value delivered during this time and
should vest in full. In reaching this conclusion, the Committee has taken
into account the relatively minor impact that the declaration of a global
pandemic had on the Company’s share price, the fact that no adjustment
Total bonus payout was made to increase the overall vesting of 2017 performance awards
which vested in cash in March 2020, that the LTIP vesting value for
74% 2022 is similar to the value for 2021, and the strong delivery of
shareholder value over the performance period. This strong
performance, despite market headwinds, is likely to give rise to the full
vesting of the performance awards under the LTIP.
Find out more
on P158

Our approach to the CEO’s remuneration in 2023
Base salary Find out more

Whilst not part of the 2020 Policy, as part of the remuneration review, the Committee acknowledged that our CEO’s total pay on P165
has been consistently below comparable levels in the mining industry and those of our FTSE 100 peers, as competition for
talent continues to become more global and a greater risk to the business. In accordance with the CEO’s employment contract,
inflationary and exchange rate adjustments were applied to the CEO’s base salary in 2022. During 2022, this amounted to
a cumulative CPI annual increase and an exchange rate increase. The significant market movements prompted the Committee
to review the base salary positioning of the CEO.
For the implementation of the policy in 2023, we increased in January the CEO’s base salary from its December level by 20%
to $1,255,552. Despite this change, the level of our target total CEO remuneration remains in the lower quartile of FTSE 100
mining companies and our core global copper mining peer group. Together with the changes in respect of the notice payments
under the CEO’s contract, we believe these changes will effectively retain our CEO over the next policy period.
Annual bonus for 2023 Find out more

Overall, our balanced scorecard for the annual bonus works well and focusses on the right KPIs. We have updated the on P165
performance measures and targets for 2023 in response to a review of our strategic priorities for the forthcoming year.
For 2023, corporate expenditure has been removed from the core business metrics as a separate metric. The associated
metric weight was added to the EBITDA as this metric already reflects both income and expenses including corporate
expenditure. This change reduces the number of KPIs in our annual bonus plan in order to move towards a simpler and more
effective scorecard. Additionally, safety and health of our employees are our top priority, and, in addition to the continued goal
of High Potential Incidents reduction (HPIs), we have added a further element being the monitoring and reduction of
occupational hazards risks (e.g. excessive noise, pollutants, as well as physical and mental wellbeing) of our employees.
Our targets will be disclosed retrospectively in next year’s remuneration report.
In respect of our performance indicators relevant to Antofagasta’s Climate Change Strategy, we have included objectives
relating to the development of the Final Stage of the Decarbonization Plan of AMSA, the 2022 Stage of the Decarbonization
Plan in the annual mining planning process, the Goal definition of Scope 3 emissions and the definition of the Carbon Offset
Strategy. In addition to these goals, we intend to rework our roadmap, timeline and process methodologies to reach our 2030
Scope 1 and 2 goals.
LTIP for 2023 Find out more

Our fundamental LTIP structure and KPIs remain unchanged with a balanced scorecard measuring relative returns on P166
to shareholders, increasing resources and focusing on critical aspects of our projects portfolio, environmental and sustainability
commitments.
Directors’ fees
No fee changes are anticipated for Directors in 2023.
Find out more
on P167
As mentioned earlier in this letter, the fundamental structure of our policy is unchanged. It is simple and aligned with delivering our business goals
and shareholder value, while reflecting practices in the international mining industry and in Chile. We must continue to reflect on where our operations
are based so that our policy and structure are aligned across the Group, the Executive Committee and throughout the organisation.
To our investors and the proxy advisers who met with us in developing the 2023 Policy, thank you for your support and constructive comments during
our engagement. We look forward to your continued support for the 2023 Policy and the Remuneration Report at the AGM in May 2023.
Francisca Castro

Remuneration at a glance
Summary of business performance (strategic performance outcomes in 2022)
TSR performance
200
150
100
50
0
Dec 12 Dec 13 Dec 14 Dec 15 Dec 16 Dec 17 Dec 18 Dec 19 Dec 20 Dec 21 Dec 22
Antofagasta FTSE All-Share Global X Copper Miners ETF
646.2k $0.62/ 0 20.6% 2050 net

tonnes share zero target
Copper production EPS performance Fatalities Female employee Group ESG
participation objective
CEO’s pay outcome $4,808k 100%

for 2022 Total remuneration for the CEO CEO’s individual performance
2022 Annual Bonus

Element Measure Weighting Achievement (% of maximum)
Core business EBITDA 12% 80%
Production 22% 50%
Cash costs 13% 55%
Corporate expend 3% 95%
Business development Growth 15% 50%
Exploration 5% 85%
Innovation 5% 85%
Sustainability and organisational capabilities Safety 5% 100%
People 5% 75%
Environment 10% 50%
Social 5% 75%
Total outcome – pre-adjustments 64%
Adjustment for meeting zero fatality target 10%
Total outcome 74%
LTIP: anticipated vesting in 2023

Element Measure Weighting Achievement (% of maximum)
Relative total shareholder value TSR v EMIX Global Mining Index 50.0% 100%
performance (estimated, see page 158)
Mineral resources Increase over three years 25.0% 100%
Projects’ performance Key projects’ milestones 12.5% 100%
Environment and social performance 40% social management plan, 12.5% 100%
60% climate change and environment
Total outcome 100%

Summary of the Policy review
Following a review of the Company’s policy, the Committee concluded that the remuneration structure remains fit for purpose and no material
changes were required.
2023 Remuneration Policy
Element 2023 Policy
Base salary Automatic adjustment for Chilean inflation, market review and exchange rate review, as appropriate
Pension None – Self-funded
Benefits Market competitive
Annual bonus 200% maximum
100% target
0% threshold
LTIP 200% maximum
Exceptional limit of 325%
70% Performance Awards and 30% Restricted Awards
Malus and clawbacks Malus on LTIP
However, as part of our proposed 2023 policy, some changes have been made to our CEO’s employment contract regarding notice periods and
termination payments in order to ensure that the contract remains aligned with industry and international market practices (more details on page 153).
These changes have been made to ensure that our contractual provisions safeguard our talent, allow time for succession planning, if needed, and
reflect industry practices and international market expectations.
Element Previous Policy Change
Notice period 30 days notice 6 months’ notice
Succession planning payment No provision in 2020 6 months for a successful handover and mentoring of new CEO for any future
Policy succession
Termination payment in No provision in 2020 12 months payment in respect of a corporate change of control event, if Company
corporate Change in Control Policy terminates CEO’s employment control within 2 years of change in control.
Quantum
Our CEO’s base salary has been increased by 20% from 1 January 2023. However, the total target remuneration remains in the lower quartile
of the CEOs of both a comparator group of mining companies in the FTSE100 and a comparator group of global copper mining peers.
How the policy will be implemented in 2023

2023 Annual Bonus – performance award KPIs
Element Pillar of strategy Measure Weighting
Mining division’s performance (70% of bonus opportunity)

Core business Competitiveness EBITDA, Copper Production and Costs
50%
Business development Growth Growth, Exploration and Innovation
25%
Innovation
Sustainability People Safety and Health, People, Environment and Social
25%
Safety and sustainability
Individual performance (30% of bonus opportunity)
Individual performance The individual objectives for the CEO were based on critical
strategic areas as part of our vision for the company – organisation,
30%
culture, people, growth, competitiveness, safety and sustainability
and innovation.
2023 Long-term incentive plan – performance award KPIs
Element Pillar of strategy Measure Weighting

Relative total
shareholder return
Competitiveness Antofagasta's TSR compared to Global X Copper Miners ETF
(CopX Index) performance
50.0%
Mineral resources
increase
Growth Net increase of mineral resources
25.0%
Project portfolio
progress
Growth Progress of key projects portfolio, including Los Pelambres
Concentrate Pipeline and Desalination Plant Expansion, Centinela
12.5%
Second Concentrator and Zaldivar's Operational Continuity Solution.
Sustainability
commitments
Safety and sustainability Progress on regulatory commitments made by the mining
operations and climate change strategy implementation.
12.5%

/ 2023 Directors’ and CEO’s Remuneration Policy
Our remuneration philosophy
Our remuneration philosophy reflects local Although our CEO is not a Director of the Company, we have voluntarily
disclosed his remuneration since 2014 and provided details throughout
regulations and market practices while aligning the Remuneration Report to allow shareholders to understand how
with UK best practices and governance. these structures support the strategy and promote long-term sustainable
Local regulations, market practices and remuneration structures success. Since the implementation of the European Shareholders’ Rights
available in Chile are a central consideration when structuring the CEO’s Directive II implementation in 2019, these disclosures have become
remuneration. Real share awards have not been part of the executive mandatory and are included in this report. The final decisions in respect
remuneration structure for employees since the LTIP was first of the CEO’s remuneration are always made by the Committee and the
implemented a decade ago because, until recently, in Chile they were CEO is not present for this part of the meeting, ensuring that the
taxable in full at the date they were granted. Considering the potential Committee makes independent decisions in the best interest of
future uncertainty on taxation and the use of real shares continues to be Antofagasta.
uncommon in Chile, all the Company awards continue as cash awards The Committee follows the UK Corporate Governance Code. The table
linked to a notional number of shares and share price performance. below summarises how we have considered Code provision 40 when
developing and implementing our remuneration strategy.
Factor 2023 Policy

Clarity Our rationale for operating two long-term (performance and restricted) incentive plans is straightforward
Remuneration arrangements are and well communicated. The performance measures used in the Annual Bonus Plan and LTIP are used
transparent and promote effective internally and externally in tracking and communicating business performance, ensuring that participants
engagement with shareholders understand them well. The Committee Chair continues to engage with and seek the views of our
and the workforce. shareholders on material changes to Executive Remuneration. Feedback from shareholders on the
proposed 2023 policy update has been received and considered. Views of the workforce are taken into
account via the workforce engagement mechanisms described in more detail on page 116. Remuneration-
related topics on which employee views are sought include benefits, pay fairness, alignment between
individual performance and pay and sharing in the Company’s success.
Predictability Target ranges and potential pay-out levels are disclosed in advance, allowing shareholders and participants
The range of possible values of to understand the potential value of the package in different performance scenarios.
rewards for the CEO is identified The Committee carefully considers the performance measures for the annual bonus and LTIP each year
and explained at the time and seeks to achieve consistency (when appropriate), with only necessary changes being made so that the
of approving the policy. plans are sufficiently predictable.
When setting performance targets, the Committee considers the same range of internal and external factors
each year. This provides consistency in policy implementation.
Simplicity Each element of pay is clearly communicated.
Remuneration structures are Where appropriate, incentive arrangements flow down through the organisation to align the interests
uncomplicated, and their rationale of employees and senior management with those of our shareholders and to encourage and share value
and operation are both easy to creation.
understand and consistent for the
CEO and, where applicable, those
below him.
Proportionality Performance conditions in the annual bonus and performance share awards require a minimum level
The link between individual awards, of performance before any payment is made to senior management, and performance targets are aligned
the delivery of strategy and the with our business plan and strategy. There are clearly defined maximum opportunities, as determined in our
long-term performance of the 2023 Policy.
Company is clear.
Risk Incentive plan performance measures are balanced to promote the right behaviours and appropriate
Reputational and other risks from safeguards are put in place, including adjustments for safety performance.
excessive rewards, and behavioural While clawback has not been introduced as such arrangements are not legally enforceable in Chile,
risks that can arise from target- LTIP awards are subject to malus.
based incentive plans, are identified
and mitigated. The Committee retains the discretion to adjust outcomes under the plans for variable remuneration.
Alignment to culture Our 2023 Policy continues to be aligned with the business objectives to create sustainable value and high
Incentive plans drive behaviours profitability. We reward strong performance aligned with our business objectives, but only if the methods
consistent with the Company’s used align with our safety and sustainability objectives. All Group employee performance bonuses, including
purpose, values and strategy. the CEO’s, include an assessment of individual performance related to the Group’s Charter of Values.

2023 Directors’ and CEO’s
Remuneration Policy
The Committee presents the 2023 Directors’ Policy scope
This year there has been no change to the composition of the Board
and CEO’s Remuneration Policy, which will be of Directors, which continues to comprise only Non-Executive Directors.
put to a binding vote of shareholders at the The Board has considered the pros and cons of having executives on
Company’s 2023 Annual General Meeting. the Board and continues to believe that the existing structure is effective
in ensuring that the Board maintains objectivity and independence from
Subject to shareholder approval, this 2023 Policy will take effect from management. In addition, the structure is appropriate since the CEO,
the 2023 AGM and is intended to apply until the 2026 AGM. The new Executive Committee and most senior managers are based in Chile,
2023 Policy will supersede the remuneration 2020 policy approved by where Company law prohibits the CEOs of public companies from
shareholders at the 2020 AGM. Once the 2023 Policy is approved, the serving as directors of those companies.
Company will only make remuneration payments to Directors and the
CEO, or payments for loss of office, if the payment is in line with the The Company’s policy is to ensure that the fees and remuneration
2023 Policy. If the Committee wishes to change the 2023 Policy, of the Directors and the CEO reflect the responsibilities undertaken and
it will submit a revised policy for shareholders approval. to consider comparable remuneration packages and structures in the
international mining industry, in the UK and Chile. The 2023 Policy being
tabled for shareholder approval is consistent with the previous 2020
Policy and remuneration practices already in place. The Committee
considers that the Company’s approach to remuneration for the CEO
and Non-Executive Directors is not only aligned with the Company’s
strategy but is effective and well understood.
Policy table for the CEO

Purpose and link
to strategy Operation Maximum opportunity Performance measures
Base salary
To retain and attract Typically, base salaries are There is no prescribed maximum, Individual and mining division performance is
high-calibre reviewed annually. although salary increases consider considered when determining base salaries
executives by offering those of the wider workforce. and increases.
Base salaries and any
globally competitive Chilean labour contracts are
increases take into account:
salary levels. adjusted periodically to reflect
• the individual’s role, Chilean inflation, and adjustments
performance and may also be made due to union
experience, labour negotiations.
• the Company’s
In addition to the salary increases
performance, the external
already mentioned, there may be
environment and cost,
additional increases when the
• salary increases for the Committee considers it appropriate,
wider workforce, and including (but not limited to):
• salary levels for comparable
• Significant increase in the scale,
roles at relevant comparator
market comparability or
companies.
responsibilities of the role, and
• Individuals appointed on a salary
lower than market levels, where
increases above those of the
wider workforce may be made to
recognise experience gained and
performance in the role.
Such increases will be explained
in the relevant Annual Report.
Benefits
To provide market Benefits typically include life Benefits are reviewed periodically. None
competitive benefits. and health insurance. Other There is no maximum overall.
benefits may be offered where
appropriate, including, but not
limited to, car allowance,
pension contribution,
professional fees and
relocation allowances.

/ 2023 Directors’ and CEO’s Remuneration Policy continued
Purpose and link

to strategy Operation Maximum opportunity Performance measures
Annual Bonus Plan

To focus on delivering The bonus is earned based Maximum of 200% of salary The bonus is based on financial, operational,
annual financial and on achieving one-year strategic and individual measures.
non-financial targets performance targets. Performance measures and weightings are
designed to align It is paid in cash. reviewed annually to ensure they continue
remuneration with the to reflect the Company’s strategic priorities.
Company’s strategy At least 50% of the bonus will be based on
and to create a the Mining division’s financial, operational
platform for future and strategic performance. Other metrics
sustainable include, but are not limited to, business
performance. development, organisational capabilities,
sustainability and safety.
In addition, an automatic adjustment applies to
the Mining division’s performance score under
the Annual Bonus Plan, downwards if there is
a fatality during the year and upwards if there
is no fatality. This further aligns the Mining
division’s incentives with the core value of
safety and our goal of zero fatalities.
The Committee will consider whether this
should continue to apply annually, considering
the Mining division’s safety culture and
performance.
The Annual Bonus starts accruing at
‘threshold’ performance (0% pay-out), with
a pay-out of 50% of the ‘maximum’ when
‘on-target’ performance is achieved.
The Committee retains the discretion to adjust
bonus outcomes to ensure they reflect
underlying business performance, the impact
of the commodity price and any other
relevant factors.
Long-Term Incentive Plan (LTIP)
To align with the Awards under the LTIP will Maximum of 200% of salary, Performance Awards will be based on
shareholders’ typically comprise: increased to 325% in exceptional a combination of shareholder´s return and
experience and focus circumstances. strategic performance measures aligned with
• Performance Awards –
on long-term, the business priorities.
performance is measured
sustainable The targets, measures and weightings are
over a three-year period
performance. with vesting thereafter, determined by the Committee annually.
comprising at least 70% The shareholder return measures are at least
of the total LTIP awards. 50% of the Performance Awards.
• Restricted Awards – vest Performance Awards begin vesting at
one-third each year over ‘threshold’ performance, with the amount
a three-year period, depending on the performance metric. This
comprising a maximum level is intended across all metrics to be 0%
of 30% of the total LTIP at the threshold and an aggregate average
awards. of approximately 50% of the maximum
Awards will usually be made at ‘on-target’ performance.
in the form of a conditional No performance conditions usually apply
right to receive a cash to Restricted Awards.
payment by reference to the
value of a specified number The Committee retains the discretion to adjust
of the Company’s shares. payments to ensure they reflect underlying
business performance, the impact of the
Malus may be applied in commodity price and any other relevant
exceptional circumstances, factors.
as detailed in the notes to
this table.

Notes to the Policy table
Benefits
Employees, including the CEO, are encouraged to save for their pension, and the Company facilitates a savings plan to which employees contribute.
For several employees, excluding the CEO, the Company makes a matching contribution to a pension plan up to a maximum amount. The Company
makes no contributions to the CEO’s pension.
Operation of incentive plans
The incentive plans are run in line with the Policy and the relevant plan’s rules, subject to several areas over which the Committee retains flexibility
as detailed below:
• Who participates in each plan.
• The timing and size of an award and/or payment are subject to Policy limits.
• The performance measures, weightings and targets that apply each year and any adjustments thereof.
• The treatment of awards in the event of a change of control, restructuring or other corporate events.
• Treatment of leavers.
• Amendments to a plan’s rules in accordance with its terms.
In the case of the CEO, any use of discretion by the Committee will be disclosed in the following annual report and may be subject to consultation
with the Company’s shareholders.
The Company reserves the right to make payments under the incentive plans to some or all participants in shares rather than cash if the regulations
and practice change in Chile to allow payment in shares without adverse additional costs, administrative burden or tax consequences. The latter is
seen as a beneficial practice by the Committee. Any further changes will be disclosed in the following annual report and shareholder approval will
be sought if required for the proposal in question.
Performance measures and targets
Awards under the Annual Bonus Plan and a significant proportion of the awards under the LTIP are subject to financial and non-financial performance
metrics determined annually by the Committee. The Committee reviews the appropriate business plans over the short, median and long-term and sets
appropriate targets with a range of achievement to align with the corporate goals and strategy.
The financial metrics align participants with the Group’s strategy and long-term sustainable shareholder value creation.
The non-financial metrics measure the development of key projects and exploration activities essential for future mining activities. Other metrics may
relate to safety and health, people, environmental and social targets, which ensure that all employees act in a way that preserves or creates social
value and considers the interests of all the Group’s stakeholders.
Restricted Awards are not subject to performance conditions; given market conditions in Chile, it is appropriate for part of the variable remuneration
to be subject only to a time condition and continued employment.
Malus and clawback
Malus provisions apply in exceptional circumstances, including:
• Actions by a participant that, in the reasonable opinion of the Committee, amount to gross misconduct that have or may have a material effect
on the value or reputation of the Company or any of its subsidiaries.
• A materially adverse error in the consolidated financial statements of the Group during the performance period.
• Any reasonable circumstances that the Committee determines in good faith to have resulted in an unfair benefit to the participant.
Clawback has not been introduced as such arrangements are not legally enforceable in Chile.
Legacy arrangements
During the term of this 2023 Policy, any payments may be made to satisfy commitments made or undertaken in respect of any LTIP award (Performance
Award or Restricted Award) granted under a previous policy or payments made to meet legacy arrangements agreed upon prior to (but not in
anticipation of) an employee (and not in contemplation of) being promoted to the position of CEO or the Board of Directors. All such outstanding
obligations may be honoured, and payment will be permitted under the 2023 Policy.
Minor amendments
The Committee may make minor amendments to the 2023 Policy (for example, taxes, regulatory, exchange rate or administrative purposes) without
obtaining shareholder approval.
The difference in CEO and employee remuneration policy
Apart from participation in the LTIP, which is limited to the Executive Committee and certain senior employees, there are no main differences between
the 2023 Policy and the general remuneration policy for employees.

Illustrations of the application of the Policy

The graph below illustrates estimates of the potential remuneration opportunity for the CEO under three different performance scenarios: ‘Minimum’.
‘Mid-point’, and ‘Maximum’. In line with the reporting regulations, a scenario assuming 50% share price growth over the three-year performance
period is also shown below (for the maximum performance scenario). The assumptions used for these charts are set out in the table below.
CEO total remuneration
Minimum 100.0% $1,370k
Mid-point 32.2% 29.5% 38.3% $4,258k
Maximum 21.4% 39.3% 39.3% $6,393k
Maximum + 50% 18.9% 34.5% 34.5% 12.1% $7,271k

share price growth
$0k
0 $1,000k $2,000k $3,000k $4,000k $5,000k $6,000k $7,000k $8,000k
8000
Fixed pay Annual bonus LTIP LTIP – share price appreciation
Minimum • Fixed remuneration (salary and benefits) only.

performance • No pay-out under the Annual Bonus or LTI performance awards.
Mid-point • Fixed remuneration.
performance • Fifty percent (50%) of the maximum pay-out under the Annual Bonus Plan.
• Under the LTIP, vesting is 50% of Performance Awards and 100% of Restricted Awards.
Maximum • Fixed remuneration.
performance • 100% of the maximum pay-out under the Annual Bonus Plan.
• Maximum vesting under the LTIP: 100% of Performance Awards and 100% of Restricted Awards.
Maximum • Fixed remuneration.
performance • 100% of the maximum pay-out under the Annual Bonus Plan.
+ 50% share price • Maximum vesting under the LTIP: 100% of Performance Awards, 100% of Restricted Awards and a 50% increase
growth in the share price over the three-year performance period.
Other than for the scenario ‘Maximum performance + 50% share price growth’, no increase in the share price has been assumed in the graph above.
Also, no dividend assumptions have been included in the charts above.
Letters of appointment
All Directors’ letters of appointment are available for inspection at the Company’s registered office during regular business hours and at the Annual
General Meeting (for 15 minutes before and during the meeting).
CEO
Mr Iván Arriagada is employed under a contract of employment with Antofagasta Minerals SA (AMSA), a subsidiary of the Company. His work contract
is governed by Chilean labour law. It does not have a fixed term and can be terminated by either party on six months’ notice in writing. Any payment
for termination or loss of office is provided in the table below.
Under his employment contract, Mr Arriagada is entitled to 25 working days of paid holidays per year.
As Mr Arriagada’s salary is paid in Chilean pesos and is adjusted quarterly for inflation, at the end of the year, a further adjustment is made if the
US dollar/Chilean peso exchange rate has increased by more than 5% to maintain international competitiveness.
Chairman and Non-Executive Directors
Each Non-Executive Director has a letter of appointment from the Company and from AMSA. The Company has a policy of putting all Directors
forward for re-election at each AGM, in accordance with the UK Corporate Governance Code. Under the terms of the letters, if a majority of
shareholders do not confirm a Director’s appointment, the appointment will terminate immediately. In other circumstances, either party may terminate
the position on one month’s written notice. The letters require the Directors to undertake that they have sufficient time to discharge their
responsibilities.
There is a contract between Antofagasta Minerals and Asesorías Ramón F, Jara Ltda, dated 2 November 2004, for the provision of advisory services
by Ramón Jara. This contract has no expiry date but may be terminated by either party on one month’s notice.
No other Director is a party to a service contract with the Group.

Policy on payments for loss of office
If the Company terminates the CEO’s employment contract for reasons not attributable to the CEO, six months’ written notice must be given unless
the Company pays compensation in lieu of notice.
If the CEO resigns, he must give at least six months' written notice.
In both cases, if the CEO’s employment contract terminates for reasons not attributable to the CEO or CEO’s resignation, if requested, the CEO
will work with the Committee to appoint a suitable successor and ensure a smooth transition of responsibilities as well as providing mentoring.
If the transfer is completed successfully, the CEO will receive an additional payment equal to six months’ base salary.
If the Company terminates the CEO’s employment contract within two years of a specific corporate event, for reasons not attributable to the CEO,
or if the CEO's role or function has been changed without prior agreement within two years of a specific corporate event, the CEO shall be entitled
to an additional payment equal to 12 months’ base salary.
The treatment of any outstanding incentive awards will be determined based according to each plan’s rules, as summarised in the table below:
Annual bonus Employees who complete at least six months of service in a financial year are entitled to be considered for a bonus
subject to the applicable performance targets having been met. Any payment will usually be pro-rated for the period
of employment, although the Committee has the discretion to decide otherwise. If the employee’s period of employment
is less than six months, they will not usually be entitled to be considered for a bonus. However, the Committee has the
discretion to decide otherwise.
LTIP The default position is that any outstanding Performance Awards or Restricted Awards will be forfeited on cessation
of employment except if an individual is considered a good leaver e.g. their employment ends due to their death,
redundancy, ill health injury or disability, an unexpected event or force majeure, or other reason at the discretion
of the Committee.
In respect of dismissal by the Company’s decision, or the employee's resignation with at least six months’ notice,
they will be entitled to receive payment of any outstanding Restricted Awards and it will be pro-rated to the time served.
Performance Awards will usually vest based on the satisfaction of the relevant performance targets (if applicable)
and will be pro-rated to the time served. However, the Committee has the discretion to decide otherwise.
Corporate event In the event of a change of control or winding up of the Company, LTIP awards will vest subject to the extent the
or change of control performance targets have been satisfied (if applicable) and will be pro-rated for the period of the award elapsed, unless
the Committee decides otherwise.
In the event of an internal reorganisation, LTIP awards may (with the consent of the acquiring entity) be replaced
by equivalent awards. Alternatively, the Committee may decide that the LTIP awards will vest as in the case of a change
of control, as described above.
In the event of a demerger, special dividend or other corporate event that will materially impact the share price,
the Committee may, at its discretion, allow LTIP awards to vest on the same basis as in the case of a change of control,
as described above.
The Committee reserves the right to make other payments regarding the termination of the CEO’s employment. Any such payments may include
paying reasonable fees for outplacement assistance and legal or professional advice.
The letters of appointment for the Non-Executive Directors do not provide any compensation for loss of office beyond payments in lieu of notice;
therefore, the maximum amount payable upon termination of these letters is limited to one month’s fees.
Changes to the policy
As highlighted in the at a glance section the only changes proposed are in relation to our CEO’s employment contract regarding notice periods and
termination payments in order to ensure that the contract remains aligned with industry and international market practices. These changes have been
made to ensure that our contractual provisions safeguard our talent, allow time for succession planning, if needed, and reflect industry practices and
international market expectations.
Element Previous 2020 Policy Change
Notice period 30 days' notice 6 months’ notice
Succession planning payment No provision in 2020 Policy 6 months of base salary for a successful handover
and mentoring of new CEO for any future succession
Termination payment in corporate No provision in 2020 Policy 12 months of base salary payment in respect
Change in Control of a corporate change of control event, if Company
terminates CEO’s employment within 2 years of
change in control.

Policy on recruitment
When determining remuneration, the Committee will consider the new CEO’s role, experience, and other factors such as relevant market data and
internal comparisons. The Committee strives to pay competitively, but no more than necessary to attract the right talent. On appointment, the CEO’s
remuneration will generally align with the 2023 Policy, and the maximum aggregate value of incentives (excluding buyouts) will not exceed the 2023
Policy’s defined maximum limits. The recruitment approach is outlined below:
Element Policy and operation
Base salary Base salary will be determined based on the individual’s role and responsibilities, experience and skills, relevant market data and
internal comparisons. The starting base salary may be set below the prevailing market rate, but with the expectation of higher-
than-usual increases as the individual gains experience and performs in the role.
Benefits Benefits in line with the 2023 Policy, including relocation benefits if appropriate.
Annual bonus The structure described in the 2023 Policy table will generally apply for new appointees, with maximums typically pro-rated
to reflect service during the year. For the first year of appointment, the Committee may determine that the annual bonus may
be subject to modified terms considered appropriate in the context of the recruitment.
LTIP LTIP awards will be on the same terms as described in the 2023 Policy table. However, the Committee has the discretion to make changes
in the first year of employment, including to the performance measures applied. Any change will be fully disclosed in the next Annual Report.
Buyout The Committee recognises that it may be necessary, in certain circumstances, to provide compensation for amounts forfeited
awards from a previous employer. Generally, any buyout awards will be made on a like-for-like basis in terms of commercial value, form,
application of performance conditions and timing of receipt to ensure they reflect the incentives they are replacing.
The approach towards an internal promotion will be consistent with the 2023 Policy outlined above. The Company will honour these legacy
arrangements if an individual has contractual commitments or outstanding awards before their promotion.
For interim positions, a cash supplement rather than a salary may be paid (for example, if a Non-Executive Director took on an executive function
on a short-term basis).
On the appointment of a new Non-Executive Director or Chairman, their remuneration will be in line with the 2023 Policy summary below.
Chairman and Non-Executive Directors Remuneration 2023 Policy Summary
Purpose and link Performance
to strategy Operation Maximum opportunity measures
Fees The Chairman receives an annual base fee. Total fees paid will be None
To attract and retain Non-Executive Directors receive an annual base fee. within the limit stated in
high calibre, the Company’s Articles
Directors may receive further fees for serving as the Senior Independent
experienced Directors of Association.
Director, a Board Committee Chair or a Committee member.
by offering globally Changes may be made
competitive fee levels. Separate base fees are paid for serving on the Antofagasta Minerals Board
to Chilean-peso-
or as a Director or chair of any subsidiary or joint-venture Company.
denominated fees
Ramón Jara also receives a base fee (adjusted for Chilean inflation) for advisory to adjust for Chilean
services provided to Antofagasta Minerals pursuant to his service agreement. inflation.
Fees are subject to review, which will take into account time commitment,
responsibilities and market practice.
Benefits Non-Executive Directors are entitled to reimbursement for reasonable Benefits are set at None
To provide appropriate expenses incurred during the performance of their duties, including any tax a level appropriate to
benefits and reimburse due on the reimbursements. the individual’s role and
appropriate expenses Benefits may include the provision of life, accident and health insurance, circumstances. The
that Directors incur professional advice and other minor benefits, including occasional spousal maximum will depend
in the performance travel in connection with the business. on the type of benefit
of their duties. and cost of its provision.
In line with the UK Corporate Governance Code, Non-Executive Directors do not participate in incentives, share schemes, or receive a pension provision.
Consideration of employment conditions elsewhere in the Group
When the Committee reviews the remuneration of the Directors and CEO, it considers pay conditions across the Mining division. This is done in the
context of different working environments and geographies and therefore is not a mechanical process. The Committee does not currently use any
other remuneration comparison metrics when determining the quantum and structure of Director remuneration. The Directors’ and CEO’s
Remuneration Policy is well understood by employees and employees know that the CEO’s remuneration policy is substantially similar to their own.
The Chair of the Remuneration and Talent Management Committee has not therefore explained this to employees.
The Committee considers employee pay practices and experiences at each meeting to ensure Antofagasta remains a world-class employer, attracting
and retaining the best mining talent.
Consideration of shareholder views
The Company maintains a dialogue with institutional shareholders, sell-side analysts, and potential shareholders. The Investor Relations team manages
this communication, which includes announcements and a formal programme of presentations to update institutional shareholders and analysts on
developments in the Group during the year.
In addition, as part of the review of Director and CEO remuneration ahead of a new 2023 Policy being tabled for approval at the 2023 AGM, a series
of meetings was held with top shareholders and proxy agencies in December 2022. These meetings were led by the Chair of the Remuneration
and Talent Management Committee, who afterwards briefed the Committee on the feedback she received. The latter was taken into account when
determining the final 2023 Policy to be approved by shareholders.

/ 2022 Directors’ and CEO’s Remuneration Report
CEO’s single figure of remuneration

(audited)1
The table below sets out the remuneration received by the CEO in respect of the years ending 31 December 2022 and 31 December 2021.
Restricted Performance Total Total fixed Total variable
Salary Benefits Bonus Awards Awards remuneration remuneration remuneration
$’000 $’0002 $’0003 $’0004 $’0005, 6 $’000 $’000 $’000
Iván Arriagada1 2022 833 115 1,705 520 1,635 4,808 948 3,860
Iván Arriagada1 2021 755 36 1,230 390 1,722 4,134 791 3,343
1. Mr Iván Arriagada’s remuneration was calculated based on amounts paid in Chilean pesos each month of the relevant year, converted into US dollars at the closing exchange rate
for the month it was paid.
2. Benefits include life and health insurance. Other benefit values are based on what the Company believes would be deemed by HMRC to be taxable benefits in the UK. The Company
also pays the professional fees incurred to complete the CEO’s tax returns and the actual tax incurred by the CEO on these benefits, which are received in connection with fulfilling
his duties. The Company makes no pension contributions on behalf of the CEO. HMRC has deemed certain services to be taxable in the UK. The Company has agreed to
compensate the CEO for any double taxation that is not eventually recoverable from the Chilean revenue under the UK/Chile Double tax treaty. This tax equalisation benefit
in respect of 2022 is a benefit of $6,505 and in 2021 was a benefit of $4,867.
3. Mr Arriagada’s 2021 annual bonus was paid following the date of publication of the 2021 Annual Report and the exchange rate used has been updated with the rate applicable
at the date the bonus was paid. The exchange rate as of March 2022, which was used to update the 2021 annual bonus, is CLP/USD 788 vs CLP/USD 844 in January 2022.
4. Restricted Award amounts are reported in the year of the grant based on the face value of the awards on the date of the grant.
5. Performance Awards are reported in the year the performance period ends. The Total Shareholder Return (TSR) performance is an estimate based on the substantial
completion of the performance period, determined after this report's publication. The share price used to value these awards is the three-month average share price to the end
of the 31 December 2022 performance period. £13.16/share and USD/GBP 1.18. The value at the time of the grant reached $868,004 with a USD8.24/share and USD/GBP 1.18
with an increase in the value reported as $766,499. As noted on page 148, LTIP awards, including Performance Awards, are cash awards linked to a notional number of shares
and the Company’s share price performance.
6. The Performance Awards included in the 2021 total vested on 29 March 2022. 50% of the award was based on the TSR performance, which was determined after the publication
of last year’s report. The figure included in the table has been updated to reflect the TSR performance outcome that was 100% of the maximum, leading to a total award outcome
of 99% of the maximum. The increase in the value reported for the 2019 LTIP reflects the change in share price and exchange rate at vesting. The share price and exchange rate
used to value this award are £17.11/share and USD/GBP 1.31. For the 2021 LTIP, the value attributable to an increase in the Company’s share price is $275,330. This figure has
been calculated using the market value of a share on the date the award was granted versus the average share price for the last three months up to December 2021. The value
at the time of the grant reached $944,992 with a USD12.2/share and USD/GBP 1.30 with an increase in the value reported as $777,230. There was no entitlement to dividends
or dividend equivalents.

/ 2022 Directors’ and CEO’s Remuneration Report continued
Annual bonus
Group performance (70%)
The targets and achievements for the 2022 annual bonus are set out below. 70% of the CEO and Executive Committee’s 2022 annual bonuses were
calculated based on the Group’s performance against these criteria in 2022:
Threshold On-target Maximum Actual Achievement
Measure Weighting % (0% vesting) (50% vesting) (100% vesting) achievement (% of maximum)
Core business 50% 60%

EBITDA – Mining division1 ($m) 12% 2,411 2,679 2,946 2,844 80%
Copper production2 (kt) 22% 623.9 643.8-663.7 673.7 646.2 50%
Cash costs before by-product credits3 ($/lb) 13% 2.324 2.192 2.061 2.185 55%
Corporate expenditure3 ($m) 3% 139.3 132.6 126.0 126.6 95%
Business development 25% 65%
Growth projects4 15% 50%
Measured according to the schedule and budget,
Exploration programmes5 5% 85%
as described in more detail in the footnotes.
Innovation and digital transformation projects6 5% 85%
Sustainability and organisational capabilities 25% 70%
Safety – Mining division7 5% 100%
People – Diversity and Inclusion Strategy8 5% Adjustments are described in more detail 75%
Environmental performance9 10% in the footnotes. 50%
Social performance10 5% 75%
Total outcome – pre-adjustments 64%
Adjustments are described in more detail
Adjustment for meeting zero fatality target11 10%
in the footnotes.
Board discretion applied12 0%
Total outcome – postadjustments 74%
1. The EBITDA targets were adjusted for exchange rate, inflation and copper price fluctuations, and diesel and power price fluctuations, and the effect of one-off bonuses paid on conclusion
of labour negotiations at Los Pelambres, Antucoya and Zaldivar, which were not included in the Group’s budget. The targets for EBITDA were adjusted for the impact of the Los Pelambres
Concentrate Pipeline Incident in June when there was a temporary reduction in throughput at Los Pelambres due to the reduced concentrate pipeline availability and disruption to access
to the mine site, following the assessment by an independent expert which determined that the incident resulted from a factory defect not attributable to the operation's management.
2. 100% basis, except for Zaldívar (50%). The targets for production were adjusted for the impact of the Los Pelambres concentrate pipeline incident.
3. The cash cost targets were adjusted for the same factors as the EBITDA targets (except for copper price fluctuations, which do not impact this measure). The targets for cash cost were
adjusted for the impact of the Los Pelambres Concentrate Pipeline Incident. The figures for corporate expenditure were adjusted for the exchange rate, inflation and the difference between
budgeted annual bonus payments and actual bonus payments made to employees.
4. Split between Los Pelambres Desalination Plant (40%), Los Pelambres Concentrator Expansion (27%) and Centinela Second Concentrator (33%).
Targets for the Los Pelambres Desalination Plant were related to execution progress and ensuring that there were no material environmental incidents. The threshold (80%) is related
to mechanical completion, including pre-commissioning in Q4 2022 and (20%) is due to one serious environmental incident. Target (80%) is related to mechanical completion, including
pre-commissioning in Q3 2022, and (20%) is related to non-serious environmental incidents. The maximum (80%) is reached if early pumping is achieved in July 2022 and (20%) if compliance
with the approved budget is achieved. Targets for the Los Pelambres Concentrator Expansion were related to execution progress and ensuring that there were no material environmental
incidents. With the threshold at (80%) completion of construction in Q4 2022 and (20%) is due to one serious environmental incident. Target at (80%) of mechanical completion, including
pre-commissioning in Q4 2022 and (20%) no serious environmental incidents. The maximum (80%) if the commissioning is achieved with an advance of 70% to Q4 2022 and (20%) if
compliance with the approved budget is achieved. Targets for the Second Concentrator in Centinela were based on the progress of the engineering and pre-investment studies for the project.
With the threshold at (100%) a delay in detailed engineering is greater than or equal to three months. Target at (50%) the recommendation for outsourcing the Desalinated Water Drive System II
(SIAM II) in Q3 2022 and (50%) Second Concentrator Project prepared to submit an investment decision request in Q4 2022. The maximum additional critical milestones are reached before the
end of the year. The result was 50% of the maximum, made up of 30% of the maximum for the Los Pelambres Desalination Plant, 45% of the maximum for the Los Pelambres Concentrator
Expansion and 75% of the maximum for the Centinela Second Concentrator.
5. Includes targets to assess the progress of exploration programmes and consolidation of exploration ownership interests,. split between Cachorro deposit (60%), Encierro deposit (20%)
and international exploration (20%). All the programmes were advanced according to the plan. The result was 85% of the maximum.
6. Split between the implementation of the Integrated Remote Operations Management Centres (IROCs) for Los Pelambres and Centinela (33.3%), Data Analytics (33.3%) and continuation of the
“New Ways of Working” project (33.3%). Targets for the IROCs were related to the progress of implementation of the IROCs. For the Los Pelambres IROC, the threshold was 60% construction
progress, the target was going live in Q4 2022, and the maximum was going live in Q3 2022. Centinela’s IROC threshold was completing the infrastructure in the city of Antofagasta. The target
was implementing the integrated model in the mine, concentrator and port, and the maximum was implementing the remote operation of the cathode plant. Data Analytics targets were related
to the accumulated impact of the projects implemented in 2022, with a threshold of $32 million, a target of $45 million and a maximum of $55 million in December 2022. Targets for the "New
Ways of Working" project related to progress of the approved project plan, with a threshold of 75% progress, a target of 100% progress and a maximum of 100% progress and an evaluation
by the CEO and Vice President of Operations of the deployment and evolution of the model. The result was 85% of the maximum, made up of 100% of the maximum for the Los Pelambres and
Centinela IROCs, with the Los Pelambres IROC going live in Q3 2022 and the successful remote operation of Centinela’s cathode plant, 100% of the maximum in Data Analytics with a $66 million
impact and 50% of the maximum for the “New Ways of Working” project.
7. Performance against a reduction of the High Potential Incident (HPI) rate with a threshold of 0.19, a target of 0.17 and a maximum of 0.16. This metric considers the Lost Time Injury Frequency
Rate (LTIFR) as a trigger. If the LTIFR is higher than 1, the maximum achievable score is 50%. The result was 100% of the maximum with an HPI rate of 0.11 and 0.76 frequency rate (LTIFR).
8. Performance against targets for implementation of the Diversity and Inclusion Policy. (50%) of the target was based on the results of an evaluation of the mining division's culture. With a threshold
at stay as Tier-2 "emergent," on-target at Tier-4 "collaborative," and maximum at Tier-4 and an evaluation overseen by the CEO and Vice President of Operations. (50% ) of the target was based
on an increase in the percentage of female direct employees by the year's end, with the threshold at 17.2%, on-target at 19.3% and maximum at 20.3%. The total score was 75% of the
maximum, made up of 100% of the maximum for the percentage of female direct employees, which ended the year at 20.6%, and 50% of the maximum for the culture evaluation.
9. Split between compliance with a regulatory requirements action plan (40%), and implementation of the Climate Change Roadmap (60%).
Regulatory requirements action plan: Threshold 85% compliance with the regulatory requirements action plan or an operational event with serious environmental consequences. Target (70%)
due to 100% compliance with the regulatory requirements action plan and (30%) achievement of the Copper Mark at Los Pelambres and Antucoya by November 2022. Maximum obtaining
the Copper Mark at Los Pelambres and Antucoya by August 2022. Implementation of the Climate Change Roadmap: Threshold of less than 90% compliance with roadmap milestones and 0%
reduction in Energy Performance Indicators compared to 2021. Target 100% achievement of roadmap milestones. Maximum is a 1.5% reduction in Energy Performance Indicators compared
to 2021 and setting 2023 emissions reduction targets (Scope 3) for two mine equipment supply contracts. The result of the total target was 50% of the maximum.
10. Performance against the planned execution of social initiatives (50%) and a planned programme to measure the impact of the initiatives (50%) with no material or social incidents, with the
threshold at 70% implementation of each plan and the maximum at full implementation of the execution plans plus a 3% saving versus budget and an agreed action plan defined to address any
gaps in the impact measurement plan. The total outcome was 75% of the maximum.
11. A standalone adjustment trigger of 15% of the calculated outcome is applied to the Annual Bonus Plan, upwards if there are no fatalities during the year or downwards if there are one or more
fatalities. As there were no fatalities in 2022, the final Mining Division's outcome was increased by 10% (15% of 64%).
12. No discretion to the bonus outcome was applied, as the adjustment, resulting from the concentrate pipeline incident, was made to the core business metrics: EBITDA, Production and Costs.

Individual performance (30%)
The individual objectives for the CEO were based on critical strategic areas as part of our vision for the Company – organisation, leadership, culture,
people, growth, competitiveness, safety and sustainability and innovation. Based on individual feedback from Directors, the Committee assessed Iván
Arriagada’s performance against his personal objectives as 100% of the maximum for his contribution to the individual strategic business goals during
the year. All his objectives were exceeded, which count towards 30% of his annual bonus. This outcome reflects exceptional performance during
a challenging year in continuing to deliver a culture of excellence as well as develop the business across its core strategic growth areas establishing
a stronger foundation to build future value for all our stakeholders. Iván Arriagada’s performance against each of his objectives is summarised below:
Key goals Performance
Keeping the Board well-informed and responding Effective interaction throughout the year, kept the Board apprised of key developments
to feedback received during the year. and responsive to feedback.
Actively solicited Directors’ input, ensuring that the Board’s perspectives, ideas and feedback
were shared and implemented throughout the Group.
Leading the Group’s core values and developing Strong visible leadership and commitment to the Group’s values, demonstration of desired
a culture of excellence behaviours and effective leadership of a corporate culture of excellence.
Incorporation of a special focus on operational excellence in 2022 through the development
of revised full potential limits and aspirational targets.
Implementing strategy including in relation Long-term strategic vision to strengthen the Group’s operations and projects.
to long-term growth and the management Enhanced the Group’s ESG focus, including implementation of the climate change strategy
of environment, social and governance and accreditation of all four mining companies under the independent Copper Mark audit
(ESG) matters certification protocols.
Focusing on the Group’s core business Strong financial performance in a challenging business environment including record plant
throughput at Centinela, the achievement of full potential at Antucoya and the progression of all
the Group’s key brownfield growth projects according to plan.
Developing talent, ensuring appropriate Evident personal commitment to talent management, succession planning and performance
succession planning and performance management.
management Successful restructuring of the Operations Vice Presidency and compliance with the Operating
Model.
Pursuing exploration and business development Continued progress of the Group’s exploration programme.
opportunities
Business development opportunities thoroughly evaluated and implemented throughout the
year including the Group’s exit from the Reko Diq project in Pakistan.
Promoting the Group’s reputation, working with Outstanding stakeholder management including in response to the concentrate pipeline
key stakeholders and local communities incident and through the new release of the Somos Choapa community engagement
programme.
Strong contribution to the visibility and reputation of the Company including a strong profile
in the international mining industry.
Addressing business challenges, including Diversity and inclusion goals achieved ahead of schedule with new stretching goals set during
diversity and inclusion and innovation the year.
Strong progress in innovation including completion of Centinela’s Remote Integrated
Operations Centre in Antofagasta and Los Pelambres’ in Santiago.
Performance adjustments, discretion and CEO’s total annual bonus for 2022
Based on Iván Arriagada’s performance achieved against his 2022 targets, the Committee determined that he would receive a bonus payment
of $1,704,586. This figure was determined as follows:
Overall performance score (70% x 74%) + (30% x 100%) = 81% of the maximum
(As a percentage of the maximum) 81% of $2,092,586
Gross annual bonus = $1,704,586
Calculated in US dollars using the exchange rate as of 31 December 2022 of $1 = Ch$855.9
Because the annual bonus is calculated and paid in Chilean pesos, it is subject to exchange rate movements when reported annually in US dollars.
The amount of bonus paid was not linked to share price appreciation.

Long-term incentives
Anticipated vesting in 2023
As noted in the single-figure remuneration table on page 157, performance against the Performance Awards granted in 20201 will not be finally
determined by the Committee until after the date of this report. The performance criteria attached to these Performance Awards and the anticipated
performance against these criteria, based on estimates as of the date of this report, are as follows:
Weighting Achievement Discretion
Measure % Threshold On-target Maximum Performance % applied
Relative total 50% EMIX Global Mining Below Equal to ≥5% above This KPI will vest 100% No
shareholder Index performance index index index on or after 27
return % Score 0% 33% 100% March 2023. The
ESTIMATED estimate is based on
a performance of
18.4%2 greater than
the index as of
16 Jan 2023.
Mineral 25% Tonnes of contained 84.6m 86.0m 87.4m Resources 100% No
resources copper increased to 92.4
increase % Score 0% 50% 100% million tonnes of
contained copper
as of 31 December
2022.
Project 12.5% Percentage (%) of progress 75% 100% The performance of 100% No
portfolio progress in Los < 50% progress progress the construction of
progress Pelambres Expansion the Los Pelambres
project commissioning Expansion project
(INCO) (70%) is 100%.3
Percentage (%) in The performance
commissioning for for the Zaldívar
Zaldivar Chloride Chloride Leach
Leach project (20%) project and Phase 2
of the Los
Environmental impact Pelambres
plan for Los Expansion project
Pelambres Phase 2 is 100%.4, 5
Expansion (10%).
% Score 0% 75% 100%
Sustainability 12.5% Agreements reached progress 75% 85% All goals achieved6. 100% No
commitments with communities < 50% progress progress
near the Company’s
operations (80%)
CO2 emissions – Not met Partial Full
reduction of 300,000 completion completion
tonnes and transition
away from coal power
purchase agreements
(20%)
% Score 0% 75% 100%
Total outcome 100%7
1. The number of shares, share price used and the impact of vesting % for this award is available in the notes to the single figure table on page 155 and the table setting out long-term
incentive awards outstanding for the CEO from prior periods on page 161.
2. The TSR outcome is an estimate as the performance period ends after this report is published. The actual out-turn will be included in next year’s Annual Report.
3. During the performance period the Committee adjusted targets to remove the impact of exceptional events outside of management control. Los Pelambres Expansion project’s
construction progress target was amended for delay attributed to COVID-19 and the enabling works added to allow for the future expansion of the desalination plant from 400 l/s
to 800 l/s, approved after this target was set in 2020. Additionally, the Committee considered the level of vesting and progress of the projects at the end of the performance period
and were satisfied that the level of vesting reflected progress made given external factors that delayed progress.
4. Construction and commissioning were completed in the first quarter of 2022.
5. The project’s scope was redefined by the Board to include the Los Pelambres Mine Life Extension project. The EIA was submitted in 2021 and achieved its targets during 2022.
6. One hundred percent (100%) compliance means agreements reached with the communities near the Company’s operations, 100% compliance with commitments and agreements,
and CO2 emissions reduction following forecasts set on the grant date, and the conversion of the electricity supply contracts to 100% renewable power.
7. The impact of this vesting level on the CEO’s 2022 remuneration is set out in footnote 5 of the CEO single-figure total remuneration table on page 155.
Performance adjustments and discretion
No discretion has been applied to any of the performance calculations for the 2020 LTIP outcome. As stated in notes to the table above the Committee
adjusted the projects targets during the performance period to reflect the change in the project scope and issues outside of management control.

Directors’ single figure
of remuneration (audited)
The Directors’ remuneration for 2022 and 2021 is below in US dollars. Unless otherwise noted, amounts paid in Chilean pesos have been converted
at the exchange rate on the first working day of the month following the payment date. Any additional fees payable for serving on subsidiary and joint
venture Company boards are also included in the amounts below.
Fees Benefits2, 3 Total4,5
2022 2021 2022 2021 2022 2021
$000 $000 $000 $000 $000 $000
Chairman
Jean-Paul Luksic 1,015 1,012 16 16 1,031 1,028
Non-Executive Directors
Ollie Oliveira (departed 31 July 2021) – 210 – 1 – 211
Ramón Jara1 927 965 85 7 1,012 972
Juan Claro 280 278 3 2 283 280
Andrónico Luksic C 260 260 3 2 263 262
Vivianne Blanlot 325 318 3 2 328 320
Jorge Bande 320 314 13 2 333 316
Francisca Castro 315 309 21 2 336 311
Michael Anglin 335 311 7 – 342 311
Tony Jensen 365 333 12 – 377 333
Eugenia Parot (appointed 20 April 2021) 300 199 6 – 306 199
Total Board 4,442 4,509 169 34 4,611 4,543
1. During 2022, $604,079 (2021 – $645,053) was paid to Asesorías Ramón F, Jara Ltda, for providing services. The reported decrease is due to an increase in the Ch$/USD
exchange rate, partially offset by an annual adjustment for inflation in Chile. These payments are included in the fees attributable to Ramón Jara shown above.
2. Amounts for Jean-Paul Luksic include the provision of life, health and terrorism insurance. Amounts for Ramón Jara include the provision of life and terrorism insurances.
These insurances are not in place for the other Directors.
3. Except as described in footnote 2, all “benefits” amounts included in this table arose in connection with the fulfilment of Directors’ duties and, in particular, including the cost of
attending Board meetings and the Company’s Annual General Meeting in London. These calculations have been based on what the Company believes would be deemed by HMRC
to be taxable benefits in the UK by the Non-Executive Directors or would be if the director was resident in the United Kingdom for tax purposes, alongside any personal incidental
expenses. Given these expenses are incurred by Directors in connection with the fulfilment of their director duties, the Company also pays the professional fees incurred to complete
individual tax returns and the actual tax incurred by Directors on these expenses. Figures are reported in the year that they are paid, or would be payable, by the Company.
4. Totals reflect the total fixed remuneration for each Director. Directors did not receive any variable remuneration.
5. Notes relevant to single-figure disclosures for 2021 can be found on page 152 of the 2021 annual report. These remain unchanged.
Payments to former Directors (audited) There have been no changes to the Directors’ interests in the shares
There were no payments made to past Directors. of the Company between 31 December 2022 and the date of this report.
Payments for loss of office (audited) The Directors and CEO had no interests in the shares of the Company
There were no payments made for loss of office. during the year other than those set out on this page. No Director had
any material interest in any contract (other than a service contract in the
Total pension entitlements (audited) case of Ramón Jara) with the Company or its subsidiary undertakings
There were no pension contribution payments made towards any during the year other than in the ordinary course of business.
Directors or towards the CEO.
The Group does not have shareholding guidelines or requirements
Directors and CEO’s shareholding and share interests (audited) for Directors, all of whom are Non-Executives.
The Directors who held office on 31 December 2022 had the following The Chairman, Mr Jean-Paul Luksic, and Non-Executive Director,
interests in the ordinary shares of the Company: Mr Andrónico Luksic C, are members of the Luksic family. Members
Ordinary shares of 5p each of the Luksic family are interested in the E. Abaroa Foundation, which
31 December 1 January controls Metalinvest Establishment and Kupferberg Establishment
2022 2022
(which, taken together, holds approximately 60.66% of the Company’s
Jean-Paul Luksic1 41,963,110 41,963,110 ordinary shares and approximately 94.12% of the Company’s
Tony Jensen – – preference shares). In addition, Mr Jean-Paul Luksic controls the
Ramón Jara2 5,260 5,260 Severe Studere Foundation, which, in turn, controls the Aureberg
Juan Claro – – Establishment (which holds approximately 4.26% of the Company’s
Andrónico Luksic C – – ordinary shares). This creates significant alignment between these
members of the Board and shareholders.
Vivianne Blanlot – –
Jorge Bande – – During the period, no Non-Executive Director was eligible for any
short-term or long-term incentive awards, and no Non-Executive
Francisca Castro – –
Director owns any shares as a result of the achievement of performance
Michael Anglin – – conditions.
Eugenia Parot – –
1. Jean-Paul Luksic’s interest relates to shares held by Aureberg Establishment,
an entity he ultimately controls.
2. Ramón Jara’s interest relates to shares held by a close family member.
Other relevant information
Long-term incentive plan awards made to the CEO during the financial year (audited)
As stated earlier in this report, all LTIP awards are cash awards linked to a notional number of shares and the Company’s share price performance.
Number of shares/ Award as % Face value (market
Type of award Date of grant options of salary1 value at date of grant) Performance period Vesting dates
Restricted Award 29 Mar 22 22,578 60% $520,220 N/A 29 Mar 23

29 Mar 24
29 Mar 25
Performance 29 Mar 22 52,686 140% $1,213,848 29 Mar 2022 to 29 Mar 25
Award 29 Mar 2025
1. The number of awards was calculated according to the base salary at the grant date on 29 March 2022 with the total face value described in the table. The share price used
to value these awards is £17.47/share, USD/GBP 1.32 and the exchange rate used to value this award is CLP/USD 792,38 all of them calculated as the average of the closing price
during a period of 5 dealing days ending with the dealing day before the grant date, according to policy.
Performance conditions attaching to long-term incentive plan awards granted to the CEO in 2022 (audited)
Vesting Vesting Vesting
Objective Weighting Threshold Target Maximum at threshold at target at maximum
Relative total shareholder return 50% Performance Equal ≥ 5% above index 0% 33% 100%
vs. Global X Copper Miners ETF below index to index
(CopX Index)
Mineral resources increase 25% 83.1m tonnes 86.4m 87.5m tonnes 0% 50% 100%
(contained copper) tonnes
Projects portfolio: 12.5% 50% 75% Full completion of goals 0% 75% 100%
completion completion
(1) Los Pelambres Concentrate (1) and (2) with an
Pipeline (30%) environmental impact study
approved and under
(2) Los Pelambres Desalination
construction.
Plant Expansion (40%)
(3) With progress in the range
(3) Centinela Second
(of 85% – 100%) of the
Concentrator (30%)
approved plan.
Environmental (1) Social 12.5% Greater than Greater than Greater than or equal 0% 75% 100%
and social Management 50% 75% to 85% compliance1
commitments Plan (40%) compliance compliance
(2) Climate 50% 75% ne hundred per cent

O 0% 75% 100%
change and compliance compliance (100%) compliance with the
environment emissions budget according to
(60%) the 2024 emissions reduction
target; overall reduction of one
million tonnes of Scope 1 and
Scope 2 CO2 emissions by
2024, compared to the
2021 level.
5 to 100% compliance with
8
the roadmap of the climate
change strategy and circular
economy strategy.
core 75% + 100% compliance
S
with extreme, high and
moderate risk regulatory
requirements.
1. Compliance with initiatives in the Group’s social management plan, including initiatives existing as of 31 March 2022 and added before 31 December 2024, on time and within budget.
The Committee set stretching targets which incentivise the CEO and Executive Committee members to deliver exceptional performance and to drive
sustainable results. The Committee ensures that targets are appropriately stretching in the context of the business plan and prior year achievements
and that there is an appropriate balance between incentivising the CEO to meet financial targets and to deliver specific non-financial goals.

Long-term incentive plan awards outstanding for the CEO from prior periods (audited)
The following LTIP awards with one or more outstanding tranches have been granted to Mr Arriagada. The number of shares to which each grant
relates is determined based on the limits set out in the LTIP rules, consideration around retention, and the share price at the time of the grant.
Number of awards Under award as at
Year of grant Type of award Date of grant as at start of year Vested during year Lapsed during year 31 December 2022 Vesting date
2020 Performance 27 Mar 20 105,295 N/A 0 105,295 27 Mar 23

Awards
2020 Restricted 27 Mar 20 30,084 15,042 0 27 Mar 22
Awards
15,042 27 Mar 23
Awards
2021 Restricted 29 Mar 21 16,905 5,635 0 29 Mar 22
Awards
5,635 29 Mar 23
5,635 29 Mar 24
Awards
2022 Restricted 29 Mar 22 22,578 0 0 7,256 29 Mar 23

Awards
7,256 29 Mar 24
7,256 29 Mar 25
The performance conditions and face values at grant for the awards granted in 2020 and 2021 are set out in the annual reports for 2020 and 2021.
No variations to the original terms of the awards have been made.
Restricted Awards are not subject to performance conditions.
CEO pay history and Company performance
The total remuneration of the lead executives in the Group for the past ten years is as follows:
Single figure remuneration for the Group’s lead executive 2013 20141 2015 20162 2017 2018 2019 2020 20214 2022
Chairman – Jean-Paul Luksic ($000) 3,615 2,196 – – – – – – – –

CEO – Diego Hernández ($000) – 688 2,445 1,525 – – – – – –
CEO – Iván Arriagada ($000) – – – 681 1,790 2,513 2,458 4,675 4,134 4,808
Annual bonus pay-out (% of maximum) – 69% 39% 61% 79% 66% 83% 93% 72% 81%
LTIP pay-out (% of maximum)3 – 76% 16% – 85% 60% 65% 99% 99% 100%
1. The single figure remuneration for the Group’s lead executive in 2014 comprises Jean-Paul Luksic’s remuneration until 1 September 2014 (when he became Non‑Executive
Chairman) and Diego Hernández’s remuneration from 1 September 2014. The Chairman was not eligible for variable remuneration, so the 2014 percentage figures only relate
to the 2014 annual bonus and LTIP awards vesting to the CEO.
2. The single figure remuneration for the Group’s lead executive in 2016 comprises Diego Hernández’s remuneration until 8 April 2016 (when he stepped down as CEO) and Iván
Arriagada’s remuneration from 8 April 2016 (when he became CEO). No Performance Awards were vested to the CEO in 2016.
3. Restricted Awards do not have a performance element, so they are not included in these calculations.
4. 2021 figures have been restated to reflect actual 2021 outcomes, as explained in the CEO single-figure remuneration table on page 155.
Relative TSR performance

The chart below sets out the TSR performance of the Company over the past ten years. The FTSE All-Share Index and the Global X Copper Miners
ETF (CopX Index) have also been shown over the same period. The FTSE All-Share Index has been selected as an appropriate broad equity market
index benchmark as it is the most broadly-based index to which the Company belongs and relates to the London Stock Exchange, where the
Company’s ordinary shares are traded. The Global X Copper Miners ETF is also shown because this index has been determined to be the most
appropriate specific comparator group for the Company, and the Global X Copper Miners is one of the peer groups used in the Group’s LTIP as set
out on page 160. Previously the Group used the EMIX Global Mining Index.
Indexed total shareholder returns
The following graph shows the value of £100 invested in Antofagasta on 31 December 2012 compared with £100 invested in the comparative indices.
200
150
100
50
0
Dec 12 Dec 13 Dec 14 Dec 15 Dec 16 Dec 17 Dec 18 Dec 19 Dec 20 Dec 21 Dec 22
Antofagasta FTSE All-Share Global X Copper Miners ETF

Change in remuneration of Directors and Employees

The table below sets out the percentage change in key elements of the remuneration of the Directors, the CEO and employees.
2022 2021 2020
Fees/base Annual Fees/base Annual Fees/base Annual
salary Benefits5 bonus salary Benefits5 bonus salary Benefits5 bonus
Non-Executive Directors1
Jean-Paul Luksic 0% -5% N/A 1% 15% N/A 0% 28% N/A
Ollie Oliveira (departed 31 July 2021) N/A 0% N/A 8% -87% N/A 0% -91% N/A
Ramón Jara -4% 1,054% N/A 7% 2% N/A -4.3% 17% N/A
Juan Claro 1% 9% N/A 2% -32% N/A 0% -64% N/A
Andrónico Luksic C 0% 9% N/A 0% -32% N/A 0% 23% N/A
Vivianne Blanlot 2% 9% N/A 4% -32% N/A 0% -45% N/A
Jorge Bande 2% 452% N/A 6% -32% N/A 0% -63% N/A
Francisca Castro 2% 771% N/A 6% -73% N/A 1% -29% N/A
Michael Anglin5 8% – N/A 9% – N/A 1% -75% N/A
Tony Jensen6 (appointed 13 March 2020) 10% – N/A 34% – N/A – – N/A
Eugenia Parot7 (appointed 20 April 2021) 5% – N/A N/A N/A N/A N/A N/A N/A
CEO 10.4% 218% 38.5% 28.3% 51.5% -5.7% -8% -65% 38.8%
Company employees2 -10.3% 2.2% -27.0% 1.6% -0.3% 19.7% 1.8% 19.9% 7.5%
Mining division employees3 -5.8%4 -11.4% -7.1% 7.2% 16.3% -10.6% -9.8% -10.1% 7%
1. The fee percentage change for Directors who served for only part of a comparator year has been annualised.
2. We do not consider this comparator group to be relevant, considering more than 99.9% of employees are not included. The parent Company, Antofagasta plc, has fewer than
ten employees. Reporting these figures is mandatory.
3. Mining division employees are considered a relevant comparator group, partly because the Mining division accounts for more than 97% of the Group’s revenue and partly because
the Annual Bonus Plan that applies to the Executive Committee is the same plan that applies to the Mining division employees at the management and professional levels.
This annual bonus figure relates to the percentage change in the average annual bonus for the Mining division employees and does not include any one-off bonuses paid
to employees due to the conclusion of collective bargaining agreements with labour unions.
4. Chilean employees are paid in chilean Pesos. In chilean pesos terms, the average base salary for mining division employees changed in a 8.2%. The figure reported in US dollars
is negative due to an increase in the Chilean peso/US dollar exchange rate, partially offset by an annual inflation adjustment in Chile.
5. There has been a small minor update to the methodology applied for reporting Directors’ benefits which has resulted in the restatement of the Directors’ benefits figures for 2020.
Directors’ benefits for 2020, 2021 and 2022 are all reported in accordance with footnote 3 at the Directors’ single figure of remuneration on page 159.
The relative importance of remuneration expenditure

The table below shows the total expenditure on employee remuneration, the distributions to shareholders and tax expenses in 2021 and 2022.
2022 2021 Percentage
$m $m change
Employee remuneration1 476.6 498.0 -4.3%

Distributions to shareholders2 588.3 1,404.4 -58.1%
Taxation3 448.8 1,035.5 -56.7%
1. Employee remuneration includes salaries and social security costs, as set out in Note 9B to the financial statements.
2. Distributions to shareholders represent the dividends proposed and approved for payment in relation to the year as set out in Note 13 to the financial statements.
3. Tax has been included because it shows the Group’s tax contribution, almost all of which is paid to the Chilean state by the Group’s operations in Chile. The tax expense represents
the current tax charge regarding corporate tax, mining tax (royalty) and withholding tax, as set out in Note 11 to the financial statements.
CEO pay ratio

Antofagasta has its main operations in Chile and has fewer than 10 employees in the UK. Consequently, whilst the Committee considers employee pay
as part of its decision making on Director and CEO pay, there is no requirement to disclose a CEO pay ratio.

Committee Report
Key responsibilities
• The Committee ensures that the Group’s remuneration arrangements support both the Group’s purpose and the effective implementation of its
strategy to enable the recruitment, motivation, reward and retention of talent.
• The Committee is responsible for setting remuneration for the Chairman, Directors and the CEO and monitoring the compensation strategy, level,
structure and reward outcomes for Executive Committee members.
• The Committee actively participates in the Group’s talent management strategy, including reviewing, assessing and implementing succession plans
for the Executive Committee.
• The Committee also reviews workforce remuneration and related policies, including the Diversity and Inclusion Policy, the alignment of incentives
and rewards with the Group’s culture, the terms and limits of collective negotiations with the Company’s unions and the implementation of policy
changes that affect the workforce as a whole.
2022 Remuneration and Talent Management Committee activities
The critical matters considered by the Committee are set out in the table below:
Jan 22 Mar 22 (x2) Aug 22 Oct 221 Nov 22
Directors’ and Executive Remuneration and Governance

2021 annual bonus and LTIP • • •
2022 annual bonus and LTIP • • •
Review of Remuneration Policy • •
Review of total shareholder return performance •
Review of 2021 performance appraisal CEO • •
and Executive Committee individual performance
Directors’ Remuneration Report • •
Annual General Meeting season governance update •
LTIP governance •
Executive benefits •
CEO and Executive Committee compensation benchmarks •
Workforce, HR policies and talent management
Gender Pay Gap reporting •
CEO to worker pay ratio •
HR plan • •
Talent management and succession planning •
Collective bargaining processes • •
Engagement survey results • •
2023 Mining division scorecard •
1. The Committee held a stand-alone session to discuss the outcomes of Engagement survey.
Committee’s activities during the year
Executive remuneration 40%

Director remuneration 7%
Pay-related governance 18%
Workforce 30%
and HR policies
Talent management 5%
and succession

/ Remuneration and Talent Management Committee Report continued
Engagement with colleagues In 2021, the Committee took note of the views of the workforce in
As explained in last year’s Annual Report, when the Committee reviews adjusting KPI weightings in the Annual Bonus Plan. It also oversaw the
the Directors’ and the CEO’s remuneration, it considers pay conditions implementation of ‘New Ways of Working’ for employees, providing more
across the Group. This is set in the context of different working flexibility and adaptability after extensive engagement with the workforce.
environments and geographies and therefore is not a mechanical This policy applies to the CEO, senior management and employees.
process. The Company does not have any executive directors, and the Additionally, with its advisers, the Group reviewed the market practice
executive pay policy that applies to the CEO (who is not a Director) is the and considered the developing environment for talent and the needs of
same as the Group’s broader pay policy. This policy includes access the business before making proposals to the Committee across several
to the same benefits and participation in the same Annual Bonus Plan. areas impacting the reward and talent proposition for employees. The
Members of the Executive Committee and certain key executives proposals sought to continue to maximise value, increase the overall
participate in the LTIP, and this plan is the same for the CEO as for employee experience, and ensure that the Group remains a world-class
the other participants. The same principles apply to our workforce employer, attracting and retaining the best talent to succeed.
remuneration plans as to that of the CEO, seeking to drive the same
aligned culture, values and behaviours across the Group. Consideration by the Directors of matters relating to Directors’
Approximately 80% of the Group’s employees are unionised, and the
remuneration
During the year, the Committee reappointed Willis Towers Watson to
number is close to 100% at the operator level. The Committee reviews
advise the Committee on remuneration issues. This reappointment was
the gender pay gap, CEO pay ratio figures and a range of other internal
based on the Committee’s satisfaction with advice provided in previous
and external remuneration comparison metrics and benchmarks when
years. The Committee is satisfied that the advice provided by Willis
determining the quantum and structure of the CEO’s remuneration. This
Towers Watson was objective and independent and that no conflict
includes feedback from shareholders and more general feedback from
of interest arose concerning these services. Willis Towers Watson’s fees
employees on the Group’s pay policies, including regular engagement
for this work were charged in accordance with time and materials and
with union representatives and oversight of the parameters for collective
amounted to £102,192. Willis Towers Watson also provided advice and
bargaining negotiations.
support to management during the year, primarily on general
The Committee communicates with and receives feedback from the remuneration issues, benchmarking, best HR practices and ad hoc
workforce through a variety of channels, including employee advice on topics such as equality and gender remuneration.
engagement surveys carried out during October and November 2021
In determining that the advice received was independent, the Committee
at Antofagasta Minerals and Minera Antucoya and in July 2022 at
took into account the fact that Willis Towers Watson is an independent
Centinela, Los Pelambres and Zaldívar. The results are shared with the
global professional services firm that adheres to the Code of Conduct for
Committee and the Board. The Group also conducts ad hoc focused
Remuneration Consultants, to which it is a signatory. The Code of
surveys on specific issues, which in 2022 included surveys on New
Conduct can be found at www.remunerationconsultantsgroup.com.
Ways of Working, employee wellbeing, and diversity and inclusion.
The results of the surveys were also shared with the Committee During 2022, the Committee also received assistance from
and the Board. the Chairman, Jean-Paul Luksic, the CEO, Iván Arriagada, the Vice
President of Human Resources, Georgeanne Barceló, and the
The Committee is regularly updated on workforce pay and benefits by
Company Secretary, Julian Anderson, none of whom participated
the senior management team, who consult with the workforce on issues
in discussions relating to their own remuneration. Additionally, part
including the remuneration policy. The workforce receives regular
of each Committee meeting is held without management present to
communications throughout the year on the Group’s performance
ensure that individual views or areas of concern can be debated
targets and incentive awards, while the senior management team
between Committee members.
receives regular feedback on the performance of workforce roles and
regularly engages with employees to understand their views on The responsibilities of the Committee are defined by its Terms
workforce remuneration policy and practices. of Reference, which can be found on the Company’s website.
Directors visit Group operations throughout the year, individually Talent management and succession planning
or in small groups, to listen directly to employees’ views on labour Oversight of talent management and succession planning is integral to
issues, including remuneration, culture and values, as well as the the Committee’s responsibilities and directly relates to the Group’s ability
application of remuneration policy across the Group, including executive to achieve long-term sustainable success. The talent review is carried
pay. The Board's engagement with the workforce is detailed on pages out annually to update succession planning for key positions, identify
116 and 117. talent pools, define individual development plans and agree on
Consequently, the Committee has multiple touchpoints with the recruitment needs.
workforce for feedback on the Group’s workforce remuneration policy, In recent years a new approach has been taken, prioritising employees’
including senior management and the CEO. At the beginning of every overall experience and positioning the Group as a top-tier employer
Committee meeting, the CEO provides an update to the Committee on capable of attracting and retaining top talent. Talent Management is
key workforce issues relating to remuneration and talent. The Committee critical to ensuring the Group's ability to meet current and future
meetings are focused on these subjects. Following each Committee business demands by focusing on the attraction, retention and
meeting, the Committee Chair reports a summary of matters considered development of high-potential individuals. This approach ensures the
to the full Board. continuous growth and success of the Company.
The Committee receives regular feedback on safety performance,
community relations, the working environment, operations and critical
projects and ensures that the workforce remuneration policy (including
senior management and CEO) is fair and transparent, and its outcomes
reflect the desired culture and ensure alignment with the values and
behaviours of the organisation. The Committee also ensures that
the process for setting pay and establishing KPIs and performance
outcomes across the workforce reflects the governance and outcomes
for senior management and the CEO. The Committee ensures these
principles are applied to the whole workforce, including senior
management and the CEO.

/ Implementation of the Directors’ and CEO’s remuneration policy in 2023
Implementation of the CEO’s

remuneration policy in 2023
Base salary
The CEO’s annual base salary will be $1,255,552 from 1 January 2023. This represents a 20% increase in his pay as at December 2022 and
represents a market and performance adjustment determined by the Committee. The Chilean peso/US dollar exchange rate will continue to be
monitored and may, if the Committee considers this appropriate, result in changes to pay during 2023.
Benefits
Benefits will be provided in line with the 2023 Policy.
Annual bonus for 2023
Assuming it is approved, the operation of the bonus for 2023 will be in line with the 2023 Policy submitted for approval at the 2023 AGM. Bonus
measures, weightings and targets have been updated for 2023 in response to a review of our strategic priorities for the forthcoming year.
The approach to calculating the targets and outcomes will reflect the 2022 bonus plan.
During 2023, in order to move towards a simpler and effective scorecard, corporate expenditure has been removed from the core business metrics
and the associated weight added to the EBITDA as the corporate expenditure directly impacts EBITDA. Also, as safety and health of our employees
is our top priority, we have added occupational hazards risks to our safety metrics.
The performance targets which are not commercially sensitive are set out below. The remaining targets will be disclosed retrospectively.
Threshold On-target Maximum
Measure Weighting (0% pay-out) (50% pay-out) (100% pay-out)
Core business 50%

EBITDA – Mining division ($m)
1
15% ≤-10% The Group’s future metals price ≥+10%
assumptions are commercially sensitive,
therefore the target for EBITDA will not
be disclosed in advance. The Company
will reveal the 2023 target and outcome
in the 2023 Annual Report.
Copper production (kt)2 22% 651.0 671.7-692.5 702.9
Cash costs before by-product credits ($/lb) 3
13% 2.28 2.15 2.02
Business development 25%
Growth projects4 15% Measured according to the schedule and budget as described in more detail
in the footnotes.
Exploration programmes5 5%
Innovation and digital transformation projects6 5%
Sustainability and organisational capabilities 25%
Safety – Mining division7 5% Measured according to the schedule and budget as described in more detail
in the footnotes.
People – Diversity and Inclusion Strategy8 5%
Environmental performance9 10%
Social performance10 5%
1. The EBITDA targets will be adjusted for exchange rate changes, the impact of hedging arrangements, copper price fluctuations, inflation rate, key input price deviations above 20%
and the impact of any one-off bonuses paid on the conclusion of labour negotiations during the year.
2. 100% basis, except for Zaldívar (50%).
3. The cash cost targets will be adjusted for exchange rate changes, inflation rate, key input price deviations above 20% and the impact of any one-off bonuses paid on conclusion
of labour negotiations.
4. Progress of growing projects according to predefined milestones. Split between Los Pelambres Expansion project (27%), Los Pelambres Desalination Plant Expansion, Concentrate
Pipeline and mine life expansion projects (13%), the Implementation of Zaldívar’s Business Continuity Strategy (27%) and the Centinela Second Concentrator Detailed Engineering
Project (33%).
5. Maximum and on-target are defined according to the progress of a planned exploration programme for one exploration target previously discovered to have potential mineralisation
and the consolidation of exploration ownership interests, including infill drilling campaigns and increasing the mineral resources inventory.
6. Split between compliance with Integrated Remote Operation Centres value levers KPIs for Centinela and Los Pelambres (50%) and Data Analytics Impact (measured as the
cumulative US dollar annual savings of all implemented data analytics projects) (50%).
7. Performance against targets for reducing high potential incidents (50%) and decrease in similar exposure group of occupational hazards (50%). This metric considers the Lost
Time Injury Frequency Rate (LTIFR) as a trigger if the LTIFR is higher than 1.
8. Performance against diversity and inclusion targets with the threshold at 20.6% female direct employees, on-target at 22% female direct employees and maximum at 23.1% female
direct employees and D&I Roadmap implementation. A 15% negative trigger applies if the overall target of 1% of people with disabilities is not met.
9. Split between environmental commitments (40%) and the implementation of the Group’s climate change roadmap (60%), this metric considers: Development of the Final Stage
of the Decarbonisation Plan of AMSA, Incorporation of the selected scenario in the 2022 Stage of the Decarbonisation Plan in the annual mining planning process, Goal definition
of Scope 3 emissions and Definition of the Offset (compensation) Strategy.
10. Compliance with critical initiatives and measurement of impact according to the defined social project portfolio.

/ Implementation of the Directors' and CEO’s remuneration policy in 2023 continued
LTIP for 2023

The operation of the LTIP for 2023 will be in line with the Remuneration Policy:
• Restricted Awards (30% of the overall award) – vest one-third each year over a three-year period following the grant.
• Performance Awards (70% of the overall award) – awards subject to a three-year performance period with no subsequent holding period.
The Performance Awards measures, weightings and objectives are set out in the table below.
Weighting Objective Measure1
50% Relative total shareholder Comparison against Global X Copper Miners ETF (CopX Index) with 0% vesting if the Company’s
return performance is below the index during the three-year period, 33% vesting at equal performance
to the index and 100% vesting at performance 5% greater than the index during the three-year
period to the 2025 financial year’s end.
25% Mineral resources increase Maximum is 88.1 million tonnes of contained copper, with an on-target and a threshold of 86.2
and 83.6 million tonnes, respectively, as of 31 December 2025.
12.5% Projects’ performance The maximum is achievable if the Los Pelambres Concentrate Pipeline (20%) and Desalination Plant
Expansion (15%) and Centinela's Second Concentrator (45%) construction progress is 75% or more
of their approved plans and Zaldivar's Operational Continuity Solution (20%).
12.5% Environmental This KPI is made up of two parts:
and social commitments
1. Social Management Plan (40%). Maximum is achievable for equal or greater than 85%
compliance with the initiatives included in the Group’s social management plan, including initiatives
existing as of 31 March 2023 and added before 31 December 2025, on time, within budget and
impact evaluation, with an on-target at 75% and a threshold at 50%. The final score is calculated
as the average score of all initiatives.
2. Climate change and environment (60%). Maximum is achievable for compliance with
Decarbonisation Roadmap plan at 75%, the water efficiency target by 2025, 100% compliance
with the Circular Economy Strategy Roadmap and compliance with the internal plan to address
regulatory requirements.
1. The final LTIP 2023 scorecard measures will be approved after this report is published.

Implementation of the Directors’
remuneration policy in 2023
Chairman
Jean-Paul Luksic’s total fee for 2023 is $1,015,000, (2022 – $1,015,000) comprising:
• $730,000 per annum for his services as Chairman of the Board;
• $25,000 per annum for his services as Chairman of the Nomination and Governance Committee, and
• $260,000 per annum for his services as Chairman of the Antofagasta Minerals Board.
This fee level reflects his responsibility, experience and time commitment to the role.
Non-Executive Directors
There has been no change to Non-Executive Director base fees of $130,000 since 2012. Given the core role which Antofagasta Minerals plays in the
management of the mining operations and projects, all Directors also serve as directors of Antofagasta Minerals. The annual fee payable to directors
of Antofagasta Minerals remains $130,000 (as it has since 2012). Therefore, the combined base fees payable to Non-Executive Directors amount to
$260,000 per annum. The Board periodically reviews both the structure and levels of fees paid to Non-Executive Directors and will continue reviewing
these fees from time to time, in accordance with the 2023 Policy.
Benefits that were reported for 2022 will continue to apply. Directors are not expected to receive any other remuneration in 2023.
The fees payable for Committee roles and the role of Senior Independent Director from January 2023 are set out below:
Additional Director fees payable from 1 January 2023

Additional fees
Role $
Senior Independent Director 33,000

Audit and Risk Committee Chair 42,000
Audit and Risk Committee member 20,000
Nomination and Governance Committee Chair 25,000
Nomination and Governance Committee member 10,000
Projects Committee Chair 35,000
Projects Committee member 20,000
Remuneration and Talent Management Committee Chair 35,000
Remuneration and Talent Management Committee member 20,000
Sustainability and Stakeholder Management Committee Chair 35,000
Sustainability and Stakeholder Management Committee member 20,000
AGM voting history

2021 Directors’ and CEO’s Annual Report on Remuneration
97.43%
Votes for 1,059,688,617
2.57%
Votes against 27,903,201
Votes cast as a percentage of issued share capital 91.71%
Votes withheld 5,663,353
Resolution to approve the 2020 Directors’ and CEO’s Remuneration Policy1
98.17%
Votes for 1,062,750,494
1.83%
Votes against 19,832,684
Votes cast as a percentage of issued share capital 91.29%
Votes withheld 16,811
1. Meeting dated at 16th March 2020. Results were at 20th May 2020 press release.
I hope this report demonstrates the importance that we place on the transparency of our decisions and how they are reached. I look forward to meeting
shareholders and answering questions at our AGM.
Francisca Castro
/ Directors’ Report
Directors’ Report
Directors Capital structure

Directors who have served during the year and summaries of current Details of the authorised and issued ordinary share capital are shown
Directors’ key skills and experience are set out in the Corporate in Note 30 to the financial statements. The Company has one class
Governance Report on pages 118-120. of ordinary shares, which carry no right to fixed income. Each ordinary
share carries one vote at any general meeting of the Company.
Post-balance sheet events
There have been no post-balance sheet events. Details of the preference share capital are shown in Note 23 to the
financial statements. The preference shares are non-redeemable and
Financial risk management are entitled to a fixed cumulative dividend of 5% per annum. Each
Details of the Company’s policies on financial risk management are set preference share carries 100 votes on a poll at any general meeting
out in Note 25 to the financial statements. of the Company.
Results and dividends When the preference shares were issued, they each carried one vote
The consolidated profit before tax has decreased from $3,477.1 million at any general meeting of the Company in parity with the ordinary
in 2021 to $2,558.9 million in 2022. shares in issue at that time. The number of ordinary shares in issue has
increased since then through stock splits and bonus issues and the
The Board has recommended a final dividend of 50.5 cents per ordinary
preference shares were not split at the same time as the ordinary
share (2021 – 118.9 cents). An interim dividend of 9.2 cents was paid
shares. Therefore, in order to maintain proportionate voting rights
on 30 September 2022 (2021 interim dividend – 23.6 cents). This gives
attaching to the preference shares, the voting rights attaching to
total dividends per share proposed in relation to 2022 of 59.7 cents
preference shares have increased to 100 votes on a poll at any general
(2021 – 142.5 cents) equivalent to a total dividend amount of $588.3
meeting of the Company.
million (2021 – $1,404.8 million).
There are no specific restrictions on the transfer of shares or on their
Preference shares carry the right to a fixed cumulative dividend of 5%
voting rights beyond those standard provisions set out in the Company’s
per annum. The preference shares are classified within borrowings
Articles of Association and other provisions of applicable laws and
and preference dividends are included within finance costs. The total
regulations (including following a failure to provide the Company with
cost of dividends paid on preference shares and recognised as an
information about interests in shares as required by the Companies Act
expense in the income statement was $0.1 million (2021 – $0.1 million).
2006). The Company is not aware of any agreements between holders
Further information relating to dividends is set out in the Financial
of the Company’s shares that may result in restrictions on the transfer
Review on page 99 and in Note 13 to the financial statements.
of securities or on voting rights.
Political contributions With regard to the appointment and replacement of Directors, the
The Group did not make any political donations during the year ended Company is governed by, and has regard to, its Articles of Association,
31 December 2022 (2021 – nil). the UK Corporate Governance Code 2018, the Companies Act 2006
Auditor and related legislation. The Articles of Association may be amended by
The Company’s auditor, PricewaterhouseCoopers LLP, has indicated special resolution of the shareholders. There are no significant
its willingness to continue in office and a resolution seeking its agreements in place that take effect, alter or terminate upon a change
reappointment will be proposed at the Annual General Meeting. of control of the Company. Except as permitted by the Company’s
remuneration policy, there are no agreements in place between the
Disclosure of information to auditors Company and its Directors or employees that provide for compensation
The Directors in office at the date of this report have each confirmed that: for loss of office or employment resulting from a change of control of
• so far as they are aware, there is no relevant audit information the Company.
of which the Group’s auditor is unaware, and The percentages of the total nominal share capital of the Company
• they have taken all the steps they ought to have taken as Directors represented by each class of share are:
in order to make themselves aware of any relevant audit information
and to establish that the Group’s auditor is aware of that information. Number Nominal value Percentage
Class in issue per share of capital
Ordinary shares
of 5p each 985,856,695 5p 96.10%
Preference shares
of £1.00 each 2,000,000 £1 3.90%

Authority to issue shares and authority to purchase own shares Conflicts of interest
At the AGM held on 11 May 2022, authority was given to the Directors Each year, the Directors complete a form identifying interests that may
to allot unissued relevant securities in the Company up to a maximum constitute a conflict of interest, including, for example, directorships in
amount equivalent to two-thirds of the ordinary shares in issue (of which other companies. Directors are also required to notify the Company
one-third may only be offered by way of rights issue). This authority during the year of any relevant changes in those positions or situations.
expires on the date of this year’s AGM, scheduled to be held on 10 May
The Board, with assistance from the Nomination and Governance
2023. No shares have been issued pursuant to that authority as at the
Committee, considers potential and actual conflict situations and decides
date of this report or during the year. The Directors propose to seek
the steps, if any, which need to be taken to manage each situation.
renewal of this authority at this year’s AGM.
The authorisation process is not regarded as a substitute for managing
Further special resolutions passed at the 2022 AGM granted authority to
an actual conflict of interest if one arises and the monitoring and, if
the Directors to allot equity securities in the Company for cash up to an
appropriate, authorisation of actual and potential conflicts of interest is
aggregate nominal amount of £2,464,641 (representing 5% of its issued
an ongoing process.
ordinary share capital) without regard to the pre-emption provisions of
the Companies Act 2006 and for an additional aggregate nominal Substantial shareholdings
amount of £2,464,641 (representing an additional 5% of its issued As at 31 December 2022, the following significant holdings of voting
ordinary share capital) in connection with the financing or refinancing rights in the share capital of the Company had been disclosed to the
of an acquisition or specified capital investment. These authorities also Company under Disclosure and Transparency Rule 5:
expire on the date of this year’s AGM. Since the 2022 AGM, the
Pre-Emption Group's Statement of Principles and the Investment Ordinary share Preference Total share
capital share capital capital
Association's guidance have been updated and permit companies to Shareholder % % %
each of these authorities for up to a 10% of its issued ordinary share Metalinvest
capital (plus, in each case, an additional 2% for the purposes of a Establishment 50.72 94.12 58.04
follow-on offer as described in the Pre-Emption Group's Statement
Kupferberg
of Principles). Accordingly, the Directors will seek to renew these
Establishment 9.94 – 8.27
authorities at the increased level in line with the Pre-Emption Group’s
Statement of Principles and the Investment Association’s guidance. Aureberg Establishment 4.26 – 3.54
The Company was also authorised by a shareholders’ resolution passed Metalinvest Establishment and Kupferberg Establishment are both
at the 2022 AGM to purchase up to 10% of its issued ordinary share controlled by the E. Abaroa Foundation (“Abaroa”), in which members of
capital. Any shares bought back may be held as treasury shares or, the Luksic family are interested. As explained in Note 36 to the financial
if not so held, must be cancelled immediately upon completion of the statements, Metalinvest Establishment is the immediate Parent Company
purchase, thereby reducing the amount of the Company’s issued and of the Group and the E. Abaroa Foundation is the Ultimate Parent
authorised share capital. This authority will expire at this year’s AGM and Company. Aureberg Establishment is controlled by the Severe Studere
a resolution to renew the authority for a further year will be proposed. Foundation that, in turn, is controlled by Jean-Paul Luksic, the Chairman
No shares were purchased by the Company during the year. of the Company.
Directors’ interests and indemnities No interests have been disclosed to the Company between 31 December
Details of Directors’ contracts and letters of appointment, remuneration 2022 and the date of this report.
and emoluments and their interests in the shares of the Company as at Exploration and research and development
31 December 2022, are given in the Directors’ Remuneration Report. The Group’s subsidiaries carry out exploration and research and
No Director had any material interest in a contract of significance (other development activities that are necessary to support and expand the
than a service contract in respect of Ramón Jara – see page 159) with Group’s operations.
the Company or any subsidiary of the Company during the year.
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. The Company also
maintained a Directors’ and Officers’ liability insurance policy throughout
the financial year. A new policy has been entered into for the current
financial year.

/ Directors’ Report continued
Going concern Other information can be found in the following sections of the Strategic
The Directors, having made appropriate enquiries, have satisfied Report:
themselves that it is appropriate to adopt the going concern basis of
accounting in preparing the financial statements, as detailed in Note 1 Location in
Annual Report
to the financial statements. Additionally, the Directors have considered
the Company’s longer-term viability, as described in their statement Future developments in the business of the Group Pages 86-89
on page 37. Viability statement Page 37
Subsidiaries, associates and joint ventures Pages 74-85
Business relationships with suppliers, customers and others
Employee engagement Pages 48-50
A statement of how the Directors have had regard to the need to
foster the Company’s business relationships with suppliers, customers Greenhouse gas emissions Pages 61-62
and others and the effect of that regard, including on the principal Streamlined energy and carbon reporting Pages 61-62
decisions made by the Company during the year, are set out on pages
Disclosures required pursuant to Listing Rule 9.8.4R can be found
40-73 of the Strategic Report and pages 102-171 of the Corporate
on the following pages of the Annual Report:
Governance Report.
Other statutory disclosures Location in
Annual Report
The Corporate Governance Report on pages 102-171, the Statement
Statement of interest capitalised See Notes 10 and 15
of Directors’ responsibilities on page 171 and Note 25 to the financial
by the Group (LR 9.8.4(1)) to the financial statements.
statements are incorporated into this Directors’ Report by reference.
See pages 142-167 and
Long-term Incentive Plan Note 26 to the financial
(LR 9.8.4(7)) statements.
Relationship agreement (LR 9.8.4(14)) Page 109
By order of the Board
Julian Anderson
Company Secretary
23 March 2023

/ Statement of Directors’ responsibilities
Statement of Directors’ responsibilities

in respect of the financial statements
The Directors are responsible for preparing the Annual Report and Financial Directors’ confirmations
Statements 2022 in accordance with applicable law and regulation. The Directors consider that the Annual Report and Financial Statements
Company law requires the Directors to prepare financial statements for 2022 and accounts, taken as a whole, is fair, balanced and understandable
each financial year. Under that law the Directors have prepared the and provides the information necessary for shareholders to assess the
Group financial statements in accordance with UK-adopted international Group’s and parent company’s position and performance, business
accounting standards and the parent Company financial statements model and strategy.
in accordance with United Kingdom Generally Accepted Accounting Each of the Directors, whose names and functions are listed in the
Practice (United Kingdom Accounting Standards, comprising FRS 101 Corporate Governance Report confirm that, to the best of their
“Reduced Disclosure Framework”, and applicable law). knowledge:
Under Company law, Directors must not approve the financial • the Group financial statements, which have been prepared in
statements unless they are satisfied that they give a true and fair view accordance with UK-adopted international accounting standards, give
of the state of affairs of the Group and parent Company and of the profit a true and fair view of the assets, liabilities, financial position and profit
or loss of the Group for that period. In preparing the financial statements, of the Group;
the Directors are required to: • the Parent Company financial statements, which have been prepared
• select suitable accounting policies and then apply them consistently; in accordance with United Kingdom Accounting Standards,
• state whether applicable UK-adopted international accounting comprising FRS 101, give a true and fair view of the assets, liabilities
standards have been followed for the Group financial statements and financial position of the Parent Company; and
and United Kingdom Accounting Standards, comprising FRS 101, • the Strategic Report includes a fair review of the development and
have been followed for the parent Company financial statements, performance of the business and the position of the Group and Parent
subject to any material departures disclosed and explained in the Company, together with a description of the principal risks and
financial statements; uncertainties that it faces.
• make judgements and accounting estimates that are reasonable In the case of each director in office at the date the directors’ report
and prudent; and is approved:
• prepare the financial statements on the going concern basis unless • so far as the Director is aware, there is no relevant audit information
it is inappropriate to presume that the Group and parent Company of which the Group and Parent Company’s auditors are unaware; and
will continue in business.
• they have taken all the steps that they ought to have taken as a
The Directors are responsible for safeguarding the assets of the Group director in order to make themselves aware of any relevant audit
and parent Company and hence for taking reasonable steps for the information and to establish that the Group and Parent company’s
prevention and detection of fraud and other irregularities. auditors are aware of that information.
The Directors are also responsible for keeping adequate accounting By order of the Board
records that are sufficient to show and explain the Group’s and parent
company’s transactions and disclose with reasonable accuracy at any
time the financial position of the Group and parent Company and enable Jean-Paul Luksic Tony Jensen
them to ensure that the financial statements and the Directors’ Chairman Senior Independent
Remuneration Report comply with the Companies Act 2006. Director
The Directors are responsible for the maintenance and integrity of the 23 March 2023
parent company’s website. Legislation in the United Kingdom governing
the preparation and dissemination of financial statements may differ
from legislation in other jurisdictions.

Financial Statements
Financial
Performance
Independent auditors’ report 174
Consolidated income statement 181
Consolidated statement
of comprehensive income 182
Consolidated statement
of changes in equity 182
Consolidated balance sheet 183
Consolidated cash flow statement 184
Notes to the financial statements 185
Parent Company
financial statements 234

Continuing to deliver
strong returns while
maintaining a robust
financial position.

Independent auditors’ report

to the members of Antofagasta plc
Report on the audit of the financial statements Our audit approach
Opinion Overview
In our opinion: Audit scope
• Antofagasta plc’s Group financial statements and Parent Company • We identified two components (2021: two) as individually financially
financial statements (the “financial statements”) give a true and fair significant components, which required an audit of their complete
view of the state of the Group’s and of the Parent Company’s affairs financial information due to their financial significance to the Group,
as at 31 December 2022 and of the Group’s profit and the Group’s and a further three components (2021: three) where we concluded
cash flows for the year then ended; that a full scope audit of the component financial information was
warranted.
• the Group financial statements have been properly prepared in
accordance with UK-adopted international accounting standards as • Taken together, the components at which audit work was performed
applied in accordance with the provisions of the Companies Act 2006; accounted for 97% of Group revenue.
• the Parent Company financial statements have been properly • We also determined that specified procedures were necessary in
prepared in accordance with United Kingdom Generally Accepted respect of certain balances within the corporate and other items
Accounting Practice (United Kingdom Accounting Standards, including segment and transport division to ensure that we had sufficient
FRS 101 “Reduced Disclosure Framework”, and applicable law); and coverage from our audit work over each line of the Group’s financial
statements.
• the financial statements have been prepared in accordance with the
requirements of the Companies Act 2006. Key audit matters
We have audited the financial statements, included within the Annual • Assessment of indicators of impairment and impairment reversal for
Report and Financial Statements 2022 (the “Annual Report”), which property, plant and equipment, in particular in respect of the Zaldivar
comprise: the consolidated and Parent Company balance sheets as at and Antucoya cash generating units (Group) and investments in
31 December 2022; the consolidated income statement, the consolidated subsidiaries (Parent) (Group and Parent)
statement of comprehensive income, the consolidated cash flow • The accounting for the disposal of the Group’s interest in the Reko Diq
statement, and the consolidated and Parent Company statements of project (Group)
changes in equity for the year then ended; and the notes to the financial
Materiality
statements, which include a description of the significant accounting
policies. • Overall Group materiality: $112 million (2021: $108 million) based on
5% of the three year average of profit before tax adjusted for one-off
Our opinion is consistent with our reporting to the Audit and Risk
items.
Committee.
• Overall Parent Company materiality: $20 million (2021: $26.5 million)
Basis for opinion based on 1% of total assets.
We conducted our audit in accordance with International Standards on • Performance materiality: $84 million (2021: $81 million) (Group) and
Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities $15 million (2021: $19.875 million) (Parent Company).
under ISAs (UK) are further described in the Auditors’ responsibilities
The scope of our audit
for the audit of the financial statements section of our report. We believe
As part of designing our audit, we determined materiality and assessed
that the audit evidence we have obtained is sufficient and appropriate to
the risks of material misstatement in the financial statements.
provide a basis for our opinion.
Key audit matters
Independence
Key audit matters are those matters that, in the auditors’ professional
We remained independent of the Group in accordance with the ethical
judgement, were of most significance in the audit of the financial
requirements that are relevant to our audit of the financial statements in
statements of the current period and include the most significant
the UK, which includes the FRC’s Ethical Standard, as applicable to listed
assessed risks of material misstatement (whether or not due to fraud)
public interest entities, and we have fulfilled our other ethical
identified by the auditors, including those which had the greatest effect
responsibilities in accordance with these requirements.
on: the overall audit strategy; the allocation of resources in the audit; and
To the best of our knowledge and belief, we declare that non-audit directing the efforts of the engagement team. These matters, and any
services prohibited by the FRC’s Ethical Standard were not provided. comments we make on the results of our procedures thereon, were
Other than those disclosed in note 8 to the Group financial statements, addressed in the context of our audit of the financial statements as a
we have provided no non-audit services to the Parent Company or its whole, and in forming our opinion thereon, and we do not provide a
controlled undertakings in the period under audit. separate opinion on these matters.
This is not a complete list of all risks identified by our audit.
The accounting for the disposal of the Group’s interest in the Reko Diq
project (Group) is a new key audit matter this year. The assessment of
indicators of impairment and impairment reversal was a key audit matter
in the prior year, albeit the specific areas of focus of our audit work
differed this year compared with last year.

Key audit matter How our audit addressed the key audit matter
Assessment of indicators of impairment and impairment reversal for We assessed the Directors’ conclusion that there were no indicators of
property, plant and equipment, in particular in respect of the Zaldivar impairment or impairment reversal as at 31 December 2022.
and Antucoya cash generating units (Group) and investments in Our procedures included evaluating management’s trigger assessment,
subsidiaries (Parent) (Group and Parent) including its completeness by reference to both internal and external
In accordance with IAS 36 ‘Impairment of assets’, the Directors are factors, including but not limited to operational performance in the year,
required to perform an impairment assessment of long-lived assets at potential changes in the Chilean mining royalty regime, macroeconomic
any time an indicator of impairment exists. The Directors considered factors including forecast copper prices, foreign currency exchange rates
various external and internal factors, as set out in IAS 36, in assessing and market interest rates, climate change, and expected future production
whether an indicator of impairment, or in respect of Antucoya, profiles and capital expenditure as included in the latest Life of Mine plan
impairment reversal, existed as at 31 December 2022 in respect of the for each operation. In the case of Zaldivar, we also assessed the latest
operating mine cash-generating units (‘CGUs’), such as short- and developments in respect of the permit applications.
long-term forecast copper prices, the operational performance of these As well as considering whether any qualitative indicators of impairment
mines and indicative estimates of movements in value during the year existed, we evaluated management’s quantitative impairment indicator
based on the latest Life of Mine plans. This assessment included assessments, and the process by which the indicative valuations were
consideration of the impact of climate risks, including scenario analysis, determined, including verifying the mathematical accuracy of the cash
as detailed in note 5 to the Group financial statements. The Directors flow models and agreeing future capital and operating expenditure to the
concluded that no indicators of impairment or impairment reversal latest Board approved budgets and the latest approved Life of Mine plans.
existed as at 31 December 2022 in respect of these CGUs and, We assessed the reasonableness of the expected capital and operating
therefore, no detailed impairment tests were performed. expenses in light of their historical levels and recent operational
This assessment required judgement on the part of the Directors in performance, and considered the competence and objectivity of
determining whether an impairment trigger existed and was an area management’s internal technical experts who prepared the Life of Mine
which had a significant effect on our overall audit strategy and allocation plans. We evaluated the appropriateness of key market related
of resources in the planning for, and completion of, our audit. It was, assumptions in the indicative valuation models, including the copper
therefore, determined to be a key audit matter. prices, discount rates and foreign currency exchange rates, with the
support of our valuation experts. We also performed sensitivity analysis
The financial statements set out the key elements of the judgements
around the key assumptions within the cash flow forecasts, using both
made by the Directors, which include at Zaldivar that the ongoing
lower long-term copper prices and a stronger Chilean peso. In addition,
renewal of mining and water permits, currently due to expire in 2024
we assessed the impact of incorporating estimates of the potential future
and 2025 respectively, will be successful.
costs relating to climate change risks, based on the Task Force on
Refer to notes 3 and 5 to the Group financial statements and the Audit Climate-related Financial Disclosures (“TCFD”) scenario analyses
and Risk Committee’s views set out on pages 131 and 132. prepared by management during the year, into these quantitative
As at 31 December 2022, the Parent Company holds investments in impairment indicator assessments.
subsidiaries amounting to $589.1 million (2021: $529.1 million), In light of the above, we assessed the appropriateness of the related
comprising shares and long-term funding balances that the Directors disclosures in note 5 to the Group financial statements, including the
do not intend to demand repayment of in the foreseeable future. sensitivities provided. Overall, we identified no material issues in our
Judgement is required to assess whether impairment triggers exist in work.
relation to the shares held in subsidiaries and, where triggers are In respect of investments in subsidiaries in the Parent Company, we
identified, to determine whether the recoverable amount is no lower evaluated and challenged management’s assessment and judgements
than the investment carrying value. Judgement is also required in in relation to the identification of impairment triggers; independently
determining whether an expected credit loss should be recorded performed an assessment of other potential internal and external
against the long-term funding balances. impairment triggers, including considering the market capitalisation of the
In assessing for impairment triggers, management considered whether Group with reference to the carrying value in the Parent Company of
the underlying net assets of the investment support the carrying investments in subsidiaries; and evaluated the ability of the subsidiaries
amount, the nature of the underlying assets and whether other facts to repay the loan balances.
and circumstances could also be indicative of a trigger. For the loan As a result of our work, we were satisfied that the carrying value of
balances, management considered whether the relevant subsidiary the Parent Company’s investments in subsidiaries is appropriate as at
could repay the loans if they were demanded at the balance sheet date. 31 December 2022.
Based on management’s assessment, no impairment triggers in respect
of the carrying value of investments in subsidiaries were identified by
the Directors at the balance sheet date, and no expected credit loss on
the long-term funding balances was recognised.
Refer to notes 3 and 5 to the Parent Company’s financial statements.

/ Independent auditors’ report to the members of Antofagasta plc continued
Key audit matter How our audit addressed the key audit matter
The accounting for the disposal of the Group’s interest in the Reko Diq We assessed management’s analysis of the accounting for the definitive
project (Group) agreements and considered potential alternative interpretations. We read
the definitive agreements and confirmed that the contractual
On 15 December 2022 Antofagasta entered into definitive agreements
arrangements supported the Directors’ judgements.
to exit its interest in the Tethyan joint venture. The Directors determined
that, as a result of the agreements, the Group no longer has joint We read the tax advice obtained by management in respect of the
control of the joint venture and has, therefore, derecognised its transaction, and have assessed the independence, competence and
investment and recognised a gain on disposal of $944.7 million, objectivity of management’s external tax experts. We also engaged our
representing the proceeds of the divestment net of related adjustments. internal tax experts to review the advice to help us assess the
appropriateness of management’s estimate in respect of tax.
The Directors have applied judgement in determining that, under the
agreements, the Group no longer has joint control of the Tethyan joint We read the related disclosures in respect of the transaction in note 17 to
venture and has an unconditional right to receive the proceeds of the the Group financial statements and in respect of the significant estimation
sale, currently held by Atacama. Judgement has also been applied in uncertainty in note 3.
estimating the probability of the sales proceeds being subject to We identified no material issues as a result of our work.
Australian tax.
As this is an area which had a significant effect on our overall audit
strategy and the allocation of resources in the planning for, and
completion of, our audit, this was determined to be a key audit matter.
Refer to notes 3 and 17 to the Group financial statements and the Audit
and Risk Committee’s views set out on page 132.
How we tailored the audit scope statements. The Group engagement team also performed procedures in
We tailored the scope of our audit to ensure that we performed enough respect of the gain on disposal of the investment in the Tethyan joint
work to be able to give an opinion on the financial statements as a venture. For all other components, the Group team performed analytical
whole, taking into account the structure of the Group and the Parent review procedures.
Company, the accounting processes and controls, and the industry in Where work was performed by component auditors, we determined the
which they operate. level of involvement we needed to have in the audit work to be able to
The core mining business comprises four mining operations: Los conclude whether sufficient appropriate audit evidence had been
Pelambres; Centinela; Antucoya; and Zaldívar, a joint venture with obtained as a basis for our opinion on the Group financial statements as
Barrick Gold Corporation operated by the Group. These mines produce a whole. Our oversight procedures included the issuance of formal,
copper cathodes, copper concentrates and significant volumes of written instructions to the component auditors setting out the work to be
by-products. performed, regular communication throughout the audit cycle including
regular component meetings, review of component auditor workpapers
In addition to mining, the Group has a transport division that provides rail
and participation in audit clearance meetings. In most cases
and road cargo services in northern Chile, predominantly to mining
communication was performed through video conferencing. However,
customers, including to the Group’s own operations.
members of the Group team also visited Chile on multiple occasions
All of the above operations are located in Chile. In addition, the Group during the audit. The Group team also reviewed the component auditor
has corporate head offices located in both Santiago, Chile (Antofagasta working papers and reviewed other communications dealing with
Minerals S.A.) and London, UK (Antofagasta plc). The Group also has significant accounting and auditing issues.
exploration projects in various countries.
Taken together, the components where we performed our audit work
In establishing the overall approach to the Group audit, we determined accounted for 97% of consolidated revenue, 94% of consolidated profit
the type of work that needed to be performed at each of the four mine before tax and 92% of consolidated profit before tax adjusted for one-off
sites and the corporate offices in Chile, by us, as the Group engagement items. This was before considering the contribution to our audit evidence
team and by component auditors from PwC Chile operating under our from performing additional audit work at the Group level, including
instruction. Los Pelambres and Centinela were considered to be disaggregated analytical review procedures, which covers a significant
financially significant components of the Group, due to their contribution portion of the Group’s smaller and lower risk components that were not
towards Group profit before tax, and so required audits of their complete directly included in our Group audit scope.
financial information. Antucoya and Zaldívar, as well as the Parent
The Parent Company financial statements are prepared in the corporate
Company Antofagasta plc, were also subject to an audit of their complete
head office in Santiago, with oversight from the Group Financial
financial information. We also requested that component auditors
Controller based in London, and are ultimately reviewed and approved
perform specified procedures over the corporate offices in Chile, and
by the Directors alongside the Group financial statements. The Parent
specific financial statement line items of other entities within the Group
Company financial statements were audited by the Group engagement
(including the transport division) to ensure that we had sufficient
team.
coverage from our audit work over each line of the Group’s financial

The impact of climate risk on our audit Materiality
In planning our work, including identifying areas of audit risk and The scope of our audit was influenced by our application of materiality.
determining an appropriate audit response, we were mindful of the We set certain quantitative thresholds for materiality. These, together
increased focus on the impact of climate change risk on companies and with qualitative considerations, helped us to determine the scope of our
their financial reporting, and also that the Group has identified climate audit and the nature, timing and extent of our audit procedures on the
change as a principal risk. As part of our audit, we made enquiries of individual financial statement line items and disclosures and in evaluating
management to understand its processes to assess the extent of the the effect of misstatements, both individually and in aggregate on the
potential impact of climate change risks on the Group and its financial financial statements as a whole.
statements. This included consideration of the Group’s Climate Change Based on our professional judgement, we determined materiality for the
Strategy and specific targets to reduce Scope 1 and 2 emissions by 30% financial statements as a whole as follows:
by 2025 relative to the 2020 baseline, to use electricity solely from
renewable sources at its mining operations by the end of 2022, which
management has confirmed it has now achieved, and, in the long-term,
to achieve carbon neutrality.
Financial statements – Group Financial statements – Parent Company

Overall $112 million (2021: $108 million). $20 million (2021: $26.5 million).
materiality
How we 5% of the three year average of profit before tax adjusted for 1% of total assets
determined it one-off items
Rationale for For overall Group materiality, we chose to use an underlying For the Parent Company materiality, we determined our
benchmark earnings measure as the benchmark because an underlying materiality based on total assets, which is more relevant
applied measure removes the impact of material items that do not than a performance-related measure as the company is an
recur from year to year or otherwise significantly affect the investment holding company for the Group.
underlying trend of performance from continuing operations.
The adoption of a multi-year average benchmark for
materiality responds to longer term trends in commodity
markets and reduces volatility in the measure year-on-year.
Using our professional judgement, we determined materiality
for this year at $112 million, which equates to 6.9% of the
current year’s profit before tax adjusted for one-off items.

For each component in the scope of our Group audit, we allocated a In relation to the Directors’ reporting on how they have applied the UK
materiality that is less than our overall Group materiality. The range of Corporate Governance Code, we have nothing material to add or draw
materiality allocated across components was between $10 million and attention to in relation to the Directors’ statement in the financial
$96 million. statements about whether the Directors considered it appropriate to
adopt the going concern basis of accounting.
We use performance materiality to reduce to an appropriately low level
the probability that the aggregate of uncorrected and undetected Our responsibilities and the responsibilities of the Directors with respect
misstatements exceeds overall materiality. Specifically, we use to going concern are described in the relevant sections of this report.
performance materiality in determining the scope of our audit and the
nature and extent of our testing of account balances, classes of Reporting on other information
transactions and disclosures, for example in determining sample sizes. The other information comprises all of the information in the Annual
Our performance materiality was 75% (2021: 75%) of overall materiality, Report other than the financial statements and our auditors’ report
amounting to $84 million (2021: $81 million) for the Group financial thereon. The Directors are responsible for the other information. Our
statements and $15 million (2021: $19.875 million) for the Parent opinion on the financial statements does not cover the other information
Company financial statements. and, accordingly, we do not express an audit opinion or, except to the
extent otherwise explicitly stated in this report, any form of assurance
In determining the performance materiality, we considered a number of thereon.
factors – the history of misstatements, risk assessment and aggregation
risk and the effectiveness of controls – and concluded that an amount at In connection with our audit of the financial statements, our responsibility
the upper end of our normal range was appropriate. is to read the other information and, in doing so, consider whether the
other information is materially inconsistent with the financial statements
We agreed with the Audit and Risk Committee that we would report to or our knowledge obtained in the audit, or otherwise appears to be
them misstatements identified during our audit above $5.6 million (Group materially misstated. If we identify an apparent material inconsistency or
audit) (2021: $5.4 million) and $1 million (Parent Company audit) (2021: material misstatement, we are required to perform procedures to
$1.3 million) as well as misstatements below those amounts that, in our conclude whether there is a material misstatement of the financial
view, warranted reporting for qualitative reasons. statements or a material misstatement of the other information. If, based
on the work we have performed, we conclude that there is a material
Conclusions relating to going concern
misstatement of this other information, we are required to report that
Our evaluation of the Directors’ assessment of the Group’s and the
fact. We have nothing to report based on these responsibilities.
Parent Company’s ability to continue to adopt the going concern basis of
accounting included: With respect to the Strategic Report and Directors’ Report, we also
considered whether the disclosures required by the UK Companies Act
• Obtaining and examining management’s base case forecasts and
2006 have been included.
downside scenarios, checking that the forecasts had been subject to
board review and, in the case of the base case, approval; Based on our work undertaken in the course of the audit, the Companies
• Considering the historical reliability of management forecasting by Act 2006 requires us also to report certain opinions and matters as
comparing budgeted results with actual performance; described below.
• Assessing the future cash flows included in the base case to ensure Strategic Report and Directors’ Report
that these were consistent with our understanding from work In our opinion, based on the work undertaken in the course of the audit,
performed over other key accounting estimates in the financial the information given in the Strategic Report and Directors’ Report for
statements such as the impairment indicator assessment; the year ended 31 December 2022 is consistent with the financial
• Performing our own sensitivity analysis to understand the impact of statements and has been prepared in accordance with applicable legal
changes in cash flows and net debt on the resources available to the requirements.
Group; and In light of the knowledge and understanding of the Group and Parent
• Reading management’s paper to the Audit and Risk Committee in Company and their environment obtained in the course of the audit, we
respect of going concern, and agreeing the forecasts set out in this did not identify any material misstatements in the Strategic Report and
paper to the underlying base case cash flow model. Directors’ Report.
Based on the work we have performed, we have not identified any Directors’ Remuneration
material uncertainties relating to events or conditions that, individually or In our opinion, the part of the Directors’ and CEO’s remuneration report
collectively, may cast significant doubt on the Group’s and the Parent to be audited has been properly prepared in accordance with the
Company’s ability to continue as a going concern for a period of at least Companies Act 2006.
twelve months from when the financial statements are authorised for
issue.
In auditing the financial statements, we have concluded that the
Directors’ use of the going concern basis of accounting in the
preparation of the financial statements is appropriate.
However, because not all future events or conditions can be predicted,
this conclusion is not a guarantee as to the Group’s and the Parent
Company’s ability to continue as a going concern.

Corporate governance statement We have nothing to report in respect of our responsibility to report when
The Listing Rules require us to review the Directors’ statements in the Directors’ statement relating to the Parent Company’s compliance
relation to going concern, longer-term viability and that part of the with the Code does not properly disclose a departure from a relevant
corporate governance statement relating to the Parent Company’s provision of the Code specified under the Listing Rules for review by the
compliance with the provisions of the UK Corporate Governance Code auditors.
specified for our review. Our additional responsibilities with respect to
the corporate governance statement as other information are described
Responsibilities for the financial statements and the audit
Responsibilities of the Directors for the financial statements
in the Reporting on other information section of this report.
As explained more fully in the Statement of Directors’ responsibilities in
Based on the work undertaken as part of our audit, we have concluded respect of the financial statements, the Directors are responsible for the
that each of the following elements of the corporate governance preparation of the financial statements in accordance with the applicable
statement is materially consistent with the financial statements and our framework and for being satisfied that they give a true and fair view.
knowledge obtained during the audit, and we have nothing material to The Directors are also responsible for such internal control as they
add or draw attention to in relation to: determine is necessary to enable the preparation of financial statements
• The Directors’ confirmation that they have carried out a robust that are free from material misstatement, whether due to fraud or error.
assessment of the emerging and principal risks; In preparing the financial statements, the Directors are responsible for
• The disclosures in the Annual Report that describe those principal assessing the Group’s and the Parent Company’s ability to continue as
risks, what procedures are in place to identify emerging risks and an a going concern, disclosing, as applicable, matters related to going
explanation of how these are being managed or mitigated; concern and using the going concern basis of accounting unless the
• The Directors’ statement in the financial statements about whether Directors either intend to liquidate the Group or the Parent Company
they considered it appropriate to adopt the going concern basis of or to cease operations, or have no realistic alternative but to do so.
accounting in preparing them, and their identification of any material Auditors’ responsibilities for the audit of the financial statements
uncertainties to the Group’s and Parent Company’s ability to continue Our objectives are to obtain reasonable assurance about whether the
to do so over a period of at least twelve months from the date of financial statements as a whole are free from material misstatement,
approval of the financial statements; whether due to fraud or error, and to issue an auditors’ report that
• The Directors’ explanation as to their assessment of the Group’s and includes our opinion. Reasonable assurance is a high level of assurance,
Parent Company’s prospects, the period this assessment covers and but is not a guarantee that an audit conducted in accordance with ISAs
why the period is appropriate; and (UK) will always detect a material misstatement when it exists.
• The Directors’ statement as to whether they have a reasonable Misstatements can arise from fraud or error and are considered
expectation that the Parent Company will be able to continue in material if, individually or in the aggregate, they could reasonably be
operation and meet its liabilities as they fall due over the period of its expected to influence the economic decisions of users taken on the basis
assessment, including any related disclosures drawing attention to of these financial statements.
any necessary qualifications or assumptions.
Irregularities, including fraud, are instances of non-compliance with laws
Our review of the Directors’ statement regarding the longer-term and regulations. We design procedures in line with our responsibilities,
viability of the Group and Parent Company was substantially less in outlined above, to detect material misstatements in respect of
scope than an audit and only consisted of making inquiries and irregularities, including fraud. The extent to which our procedures are
considering the Directors’ process supporting their statement; checking capable of detecting irregularities, including fraud, is detailed below.
that the statement is in alignment with the relevant provisions of the UK
Corporate Governance Code; and considering whether the statement is
consistent with the financial statements and our knowledge and
understanding of the Group and Parent Company and their environment
obtained in the course of the audit.
In addition, based on the work undertaken as part of our audit, we have
concluded that each of the following elements of the corporate
governance statement is materially consistent with the financial
statements and our knowledge obtained during the audit:
• The Directors’ statement that they consider the Annual Report, taken
as a whole, is fair, balanced and understandable, and provides the
information necessary for the members to assess the Group’s and
Parent Company’s position, performance, business model and
strategy;
• The section of the Annual Report that describes the review of
effectiveness of risk management and internal control systems; and
• The section of the Annual Report describing the work of the Audit and
Risk Committee.

Based on our understanding of the Group and industry, we identified that Use of this report
the principal risks of non-compliance with laws and regulations related This report, including the opinions, has been prepared for and only for
to breaches of environmental regulations, health and safety regulations, the Parent Company’s members as a body in accordance with Chapter 3
and unethical and prohibited business practices, and we considered the of Part 16 of the Companies Act 2006 and for no other purpose. We do
extent to which non-compliance might have a material effect on the not, in giving these opinions, accept or assume responsibility for any
financial statements. We also considered those laws and regulations that other purpose or to any other person to whom this report is shown or
have a direct impact on the financial statements such as the Companies into whose hands it may come save where expressly agreed by our
Act 2006 and tax law in the jurisdictions in which the Group operates. prior consent in writing.
We evaluated management’s incentives and opportunities for fraudulent
manipulation of the financial statements (including the risk of override of
controls), and determined that the principal risks were related to the
Other required reporting
posting of inappropriate journal entries to increase revenue or reduce Companies Act 2006 exception reporting
expenditure, and management bias in accounting estimates. The Group Under the Companies Act 2006 we are required to report to you if, in
engagement team shared this risk assessment with the component our opinion:
auditors so that they could include appropriate audit procedures in • we have not obtained all the information and explanations we require
response to such risks in their work. Audit procedures performed by the for our audit; or
Group engagement team and/or component auditors included: • adequate accounting records have not been kept by the Parent
• Inquiries with management, including the Group’s Vice President of Company, or returns adequate for our audit have not been received
Legal and the Head of Internal Audit, regarding their consideration of from branches not visited by us; or
known or suspected instances of non-compliance with laws and • certain disclosures of Directors’ remuneration specified by law are
regulation; not made; or
• Obtaining legal letters from the Group’s external legal advisers in • the Parent Company financial statements and the part of the
respect of litigation and claims and other such matters, where Directors’ and CEO’s remuneration report to be audited are not in
considered necessary; agreement with the accounting records and returns.
• Evaluation of the design of management’s controls intended to prevent We have no exceptions to report arising from this responsibility.
and detect irregularities, in particular their anti-bribery controls;
• Challenging assumptions and judgements made by management in Appointment
respect of critical accounting judgements and significant accounting Following the recommendation of the Audit and Risk Committee, we
estimates; and were appointed by the members on 20 May 2015 to audit the financial
• Identifying and testing journal entries, in particular any journal entries statements for the year ended 31 December 2015 and subsequent
posted with certain unusual account combinations. financial periods. The period of total uninterrupted engagement is eight
years, covering the years ended 31 December 2015 to
There are inherent limitations in the audit procedures described above. 31 December 2022.
We are less likely to become aware of instances of non-compliance with
laws and regulations that are not closely related to events and
transactions reflected in the financial statements. Also, the risk of not Other matter
detecting a material misstatement due to fraud is higher than the risk of In due course, as required by the Financial Conduct Authority Disclosure
not detecting one resulting from error, as fraud may involve deliberate Guidance and Transparency Rule 4.1.14R, these financial statements will
concealment by, for example, forgery or intentional misrepresentations, form part of the ESEF-prepared annual financial report filed on the
or through collusion. National Storage Mechanism of the Financial Conduct Authority in
accordance with the ESEF Regulatory Technical Standard (‘ESEF RTS’).
Our audit testing might include testing complete populations of certain This auditors’ report provides no assurance over whether the annual
transactions and balances, possibly using data auditing techniques. financial report will be prepared using the single electronic format
However, it typically involves selecting a limited number of items for specified in the ESEF RTS.
testing, rather than testing complete populations. We will often seek to
target particular items for testing based on their size or risk
characteristics. In other cases, we will use audit sampling to enable us to Simon Morley (Senior Statutory Auditor)
draw a conclusion about the population from which the sample is
for and on behalf of PricewaterhouseCoopers LLP
selected.
Chartered Accountants and Statutory Auditors
A further description of our responsibilities for the audit of the financial London
statements is located on the FRC’s website at: www.frc.org.uk/
23 March 2023
auditorsresponsibilities. This description forms part of our auditors’
report.

/ Financial statements
Consolidated income statement

For the year ended 31 December 2022
Excluding Excluding
exceptional Exceptional exceptional Exceptional
items Items items Items
2022 2022 2022 2021 2021 2021
Note(s) $m $m $m $m $m $m
Group revenue 7 5,862.0 – 5,862.0 7,470.1 – 7,470.1

Total operating costs (4,227.7) – (4,227.7) (3,891.1) (177.6) (4,068.7)
Operating profit from subsidiaries 8 1,634.3 – 1,634.3 3,579.0 (177.6) 3,401.4
Net share of results from associates and joint ventures 18 48.1 – 48.1 59.7 – 59.7
Gain on disposal of investment in joint venture – 944.7 944.7 – – –
Operating profit from subsidiaries, and total profit 1,682.4 944.7 2,627.1 3,638.7 (177.6) 3,461.1
from associates and joint ventures 8
Investment income 40.2 – 40.2 5.0 – 5.0
Interest expense (78.6) – (78.6) (63.4) – (63.4)
Other finance items (29.8) – (29.8) 74.4 – 74.4
Net finance (expense)/income 10 (68.2) – (68.2) 16.0 – 16.0
Profit before tax 1,614.2 944.7 2,558.9 3,654.7 (177.6) 3,477.1
Income tax expense 11 (603.6) – (603.6) (1,332.9) 90.6 (1,242.3)
Profit from continuing operations 1,010.6 944.7 1,955.3 2,321.8 (87.0) 2,234.8
Profit for the year 1,010.6 944.7 1,955.3 2,321.8 (87.0) 2,234.8
Attributable to:
Non-controlling interests 31 422.3 – 422.3 917.4 27.2 944.6
Owners of the parent 12 588.3 944.7 1,533.0 1,404.4 (114.2) 1,290.2
US cents US cents US cents US cents US cents US cents
Basic earnings per share

From continuing operations 12 59.7 95.8 155.5 142.5 (11.6) 130.9
antofagasta.co.uk
181
/ Financial statements continued
Consolidated statement of
comprehensive income
2022 2021
Note(s) $m $m
Profit for the year 1,955.3 2,234.8

Items that may be or were subsequently reclassified to profit or loss:
Losses on cash flow hedges – (90.9)
Losses in fair value of cash flow hedges transferred to the income statement – 126.8
Currency translation adjustment (0.4) (1.6)
Tax relating to these items – (4.4)
Total items that may be or were subsequently reclassified to profit or loss (0.4) 29.9
Items that will not be subsequently reclassified to profit or loss:

Actuarial (losses)/gains on defined benefit plans 27 (18.1) 3.1
Gains/(losses) in fair value of equity investments 19 15.8 (2.1)
Tax relating to these items 5.7 (2.5)
Total items that will not be subsequently reclassified to profit or loss 3.4 (1.5)
Total other comprehensive income 3.0 28.4
Total comprehensive income for the year 1,958.3 2,263.2
Attributable to:
Non-controlling interests 31 418.1 952.8
Owners of the parent 1,540.2 1,310.4
2022 2021
$m $m
Total comprehensive income for the year - continuing operations 1,958.3 2,263.2
1,958.3 2,263.2
Consolidated Statement
of Changes in Equity
Equity
Retained attributable Non-
Share Share Other reserves earnings to owners of controlling Total
capital premium (Note 30) (Note 30) the parent interests equity
$m $m $m $m $m $m $m
At 1 January 2021 89.8 199.2 (30.6) 7,492.2 7,750.6 2,330.5 10,081.1

Profit for the year – – – 1,290.2 1,290.2 944.6 2,234.8
Other comprehensive income for the year – – 20.2 – 20.2 8.2 28.4
Total comprehensive income for the year – – 20.2 1,290.2 1,310.4 952.8 2,263.2
Dividends – – – (710.8) (710.8) (604.5) (1,315.3)
At 31 December 2021 89.8 199.2 (10.4) 8,071.6 8,350.2 2,678.8 11,029.0
Profit for the year – – – 1,533.0 1,533.0 422.3 1,955.3
Other comprehensive income/(expense) for the year – – 15.4 (8.2) 7.2 (4.2) 3.0
Total comprehensive income for the year – – 15.4 1,524.8 1,540.2 418.1 1,958.3
Dividends – – – (1,262.9) (1,262.9) (80.0) (1,342.9)
At 31 December 2022 89.8 199.2 5.0 8,333.5 8,627.5 3,016.9 11,644.4
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182 Antofagasta
Antofagasta plc Annual Annual
Report 2022Report 2022
Consolidated Balance sheet
As at 31 December 2022
2022 2021
Note(s) $m $m
Non-current assets
Intangible assets 14 – –
Property, plant and equipment 15 11,543.5 10,538.5
Other non-current assets 1.1 1.3
Inventories 20 347.0 270.4
Investment in associates and joint ventures 18 904.6 905.8
Trade and other receivables 21 51.0 51.2
Equity investments 19 90.5 8.7
Deferred tax assets 28 78.5 96.8
13,016.2 11,872.7
Current assets
Inventories 20 708.1 532.8
Trade and other receivables 21 2,087.2 1,146.1
Current tax assets 35.6 13.7
Liquid investments 22 1,580.8 2,969.7
Cash and cash equivalents 22 810.4 743.4
5,222.1 5,405.7
Total assets 18,238.3 17,278.4
Current liabilities
Short-term borrowings and other financial liabilities 23 (432.5) (337.1)
Trade and other payables 24 (1,079.7) (829.1)
Short-term decommissioning and restoration provisions 29 (33.2) (33.8)
Current tax liabilities (60.4) (374.2)
(1,605.8) (1,574.2)
Non-current liabilities
Medium and long-term borrowings and other financial liabilities 23 (2,844.5) (2,835.5)
Trade and other payables 24 (8.0) (16.8)
Liabilities in relation to joint ventures 18 – (0.6)
Post-employment benefit obligations 27 (137.3) (107.5)
Decommissioning and restoration provisions 29 (455.0) (302.3)
Deferred tax liabilities 28 (1,543.3) (1,412.5)
(4,988.1) (4,675.2)
Total liabilities (6,593.9) (6,249.4)
Net assets 11,644.4 11,029.0
Equity
Share capital 30 89.8 89.8
Share premium 30 199.2 199.2
Other reserves 30 5.0 (10.4)
Retained earnings 30 8,333.5 8,071.6
Equity attributable to owners of the parent 8,627.5 8,350.2
Non-controlling interests 31 3,016.9 2,678.8
Total equity 11,644.4 11,029.0
The financial statements on pages 181 to 233 were approved by the Board of Directors on 23 March 2023 and signed on its behalf by
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183
/ Financial statements continued
Consolidated Cash Flow Statement

2022 2021
Note(s) $m $m
Cash flow from continuing operations 32 2,738.3 4,507.7

Interest paid (74.3) (60.7)
Income tax paid (787.1) (776.9)
Net cash from operating activities 1,876.9 3,670.1
Investing activities
Capital contributions to associates and joint ventures 18 – (33.5)
Dividends from associates and joint ventures 18 50.0 142.5
Acquisition of mining properties – (4.5)
Acquisition of equity investments 19 (66.5) –
Proceeds from sale of property, plant and equipment 0.2 1.5
Purchases of property, plant and equipment (1,879.2) (1,773.0)
Net decrease/(increase) in liquid investments 22 1,388.9 (543.7)
Interest received 29.1 7.4
Net cash used in investing activities (477.5) (2,203.3)
Financing activities
Dividends paid to owners of the parent 13 (1,262.9) (710.8)
Dividends paid to preference shareholders of the Company 13 (0.1) (0.1)
Dividends paid to non-controlling interests 31 (80.0) (604.5)
Proceeds from issue of new borrowings 32 865.9 149.1
Repayments of borrowings 32 (751.3) (694.7)
Principal elements of lease payments 32 (105.4) (88.9)
Net cash used in financing activities (1,333.8) (1,949.9)
Net increase/(decrease) in cash and cash equivalents 65.6 (483.1)
Cash and cash equivalents at beginning of the year 743.4 1,246.8
Net increase/(decrease) in cash and cash equivalents 32 65.6 (483.1)
Effect of foreign exchange rate changes 32 1.4 (20.3)
Cash and cash equivalents at end of the year 22,32 810.4 743.4
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184 Antofagasta
Notes to the financial statements
1 Basis of preparation The stability of tailings storage facilities represents a potentially significant
The consolidated financial statements of the Antofagasta plc Group have operational risk for mining operations globally. The Group’s tailings
been prepared in accordance with UK adopted international accounting storage facilities are designed to international standards, constructed
standards and with the requirements of the Companies Act 2006 as using downstream methods, subject to rigorous monitoring and
applicable to companies reporting under those standards. The financial reporting, and reviewed regularly by an international panel of
statements have been prepared on the going concern basis. independent experts. Given these standards of design, development,
operations and review, the impact of a potential tailings dam failure has
Going concern not been included in the sensitivity analysis.
The Directors have assessed the going concern status of the Group,
considering the period to 31 December 2024. The above downside sensitivity analyses indicated results which could be
managed in the normal course of business, including the aggregate
The Group’s business activities, together with those factors likely to impact of a number of the above sensitivities occurring at the same time.
affect its future performance, are set out in the Strategic Report, and in The analysis indicated that the Group is expected to remain in
particular within the Operating Review. Details of the cash flows of the compliance with all of the covenant requirements of its borrowings
Group during the period, along with its financial position at the period- throughout the review period and retain sufficient liquidity. Based on their
end, are set out in the Financial Review. The consolidated financial assessment of the Group’s prospects and viability, the Directors have
statements include details of the Group’s cash, cash equivalents and formed a judgement, at the time of approving the financial statements,
liquid investment balances in Note 22, and details of borrowings are set that there are no material uncertainties that the Directors are aware of
out in Note 23. that cast doubt on the Group’s going concern status and that there is a
When assessing the going concern status of the Group, the Directors reasonable expectation that the Group has adequate resources to
have considered in particular its financial position, including its significant continue in operational existence for the period to 31 December 2024.
balance of cash, cash equivalents and liquid investments and the terms The Directors therefore consider it appropriate to adopt the going
and remaining durations of the borrowing facilities in place. The Group concern basis of accounting in preparing the financial statements.
had a strong financial position as at 31 December 2022, with combined Company structure
cash, cash equivalents and liquid investments of $2,391.2 million. Total Antofagasta plc is a company limited by shares, incorporated and
borrowings were $3,277.0 million, resulting in a net debt position of domiciled in the United Kingdom at 103 Mount Street, London W1K
$885.8 million. Of the total borrowings, only 13% is repayable within one 2TJ.The immediate parent of the Group is Metalinvest Establishment,
year, and 17% repayable between one and two years. which is controlled by the E. Abaroa Foundation, in which members of
When assessing the prospects of the Group, the Directors have the Luksic family are interested.
considered the Group’s copper price forecasts, the Group’s expected The nature of the Group’s operations is mining and exploration activities
production levels, operating cost profile and capital expenditure. These and the transport of rail and road cargo.
forecasts are based on the Group’s budgets and life-of-mine models,
which are also used when assessing relevant accounting estimates, A) Adoption of new accounting standards
including depreciation, deferred stripping and closure provisions. This The following accounting standards, amendments and interpretations
analysis has focused on the existing asset base of the Group, without became effective in the current reporting period:
factoring in potential development projects, which is considered • Property, Plant and Equipment – Proceeds before Intended Use
appropriate for an assessment of the Group’s ability to manage the (Amendments to IAS 16)
impact of a depressed economic environment. The analysis has only • Onerous Contracts – Cost of Fulfilling a Contract (Amendments to
included the draw-down of existing committed borrowing facilities, and IAS 37)
has not assumed that any new borrowing facilities will be put in place. • Annual Improvements to IFRS Standards 2018–2020 (Amendments
The Directors have assessed the key risks which could impact the to IFRS 1, IFRS 9, IFRS 16 and IAS 41)
prospects of the Group over the going concern period and consider the • Reference to the Conceptual Framework (Amendments to IFRS 3)
most relevant to be risks to the copper price outlook, as this is the factor
The application of these standards and interpretations effective for the
most likely to result in significant volatility in earnings and cash
first time in the current year has had no significant impact on the
generation. Robust down-side sensitivity analyses have been performed,
amounts reported in these financial statements.
assessing the standalone impact of each of:
The amendment to IAS 16 Property, Plant and Equipment – Proceeds
• A significant deterioration in the future copper price forecasts by 20%
before intended use may have significant impacts for the Group in future
throughout the going concern period.
periods. Previously, the Group has deducted amounts received from the
• An even more pronounced short-term reduction of 50 c/lb in the
sale of products during the initial ramp-up of new projects, before
copper price for a period of three months, in addition to the above
commercial production is achieved, from the capital cost of the project.
deterioration of 20% in the copper price throughout the review period.
Under the amendment to IAS 16, such amounts will now instead be
• The potential impact of the Group’s most significant individual
recognised as revenue in the income statement along with a
operational risks.
corresponding allocation of related operating expenses, which is likely to
• A shut-down of any one of the Group’s operations for a period of
result in increased revenue and operating expenses and a higher initial
three months.
capitalised amount. There were no relevant projects impacted by the
• Potential changes to the Chilean mining royalty, taking into account the
amendment during 2022. The amendment would apply retrospectively
Group’s existing tax stability agreements.
only to relevant projects in progress at 1 January 2021 which were
generating proceeds, and there were no such projects at 1 January 2021.
antofagasta.co.uk
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/ Notes to the financial statements continued
1 Basis of preparation continued Changes in the Group’s ownership interests in subsidiaries that do not
result in the Group losing control over the subsidiaries are accounted for
B) Accounting standards issued but not yet effective
as equity transactions. The carrying amounts of the Group’s interests
At the date of authorisation of these financial statements, the following
and the non-controlling interests are adjusted to reflect the changes in
standards and interpretations, which have not been applied in
their relative interests in the subsidiaries. Any difference between the
these financial statements, were in issue but not yet effective. It is
amount by which the non-controlling interests are adjusted and the fair
expected that where applicable, these standards and amendments will be
value of the consideration paid or received is recognised directly in equity
adopted on each respective effective date (after 1 January, 2023). None
and attributed to owners of the Company.
of these standards are expected to have a significant impact on the
Group. When the Group loses control of a subsidiary, a gain or loss is recognised
in profit or loss and is calculated as the difference between (i) the
• IFRS 17, Insurance Contracts
aggregate of the fair value of the consideration received and the fair
• Deferred Tax related to Assets and Liabilities arising from a Single
value of any retained interest and (ii) the previous carrying amount of the
Transaction (Amendments to IAS 12)
assets (including goodwill), and liabilities of the subsidiary and any non-
• Disclosure of Accounting Policies – Amendments to IAS 1 and IFRS
controlling interests. When assets of the subsidiary are carried at
Practice Statement 2
revalued amounts or fair values and the related cumulative gain or loss
• Definition of Accounting Estimates – Amendments to IAS 8
has been recognised in other comprehensive income and accumulated in
The following standards are effective after 1 January, 2024 (and subject equity, the amounts previously recognised in other comprehensive
to UK endorsement): income and accumulated in equity are accounted for as if the Group had
• Classification of Liabilities as Current or Non-Current (Amendments to directly disposed of the relevant assets (ie reclassified to profit or loss or
IAS 1) transferred directly to retained earnings as specified by applicable
• Lease Liability in a Sale and Leaseback (Amendments to IFRS16) IFRSs). The fair value of any investment retained in the former subsidiary
• Non-current Liabilities with Covenants (Amendments to IAS 1) at the date when control is lost is regarded as the fair value on initial
recognition for subsequent accounting under IFRS 9 Financial
Instruments: Recognition and Measurement or, when applicable, the cost
2 Principal accounting policies on initial recognition of an investment in an associate or a joint venture.
A) Accounting convention
These financial statements have been prepared under the historical cost Acquisitions and disposals are treated as explained in Note 2(G) relating
convention as modified by the use of fair values to measure certain to business combinations and goodwill.
financial instruments, principally provisionally priced sales as explained in C) Investments in associates
Note 2(F) and financial derivative contracts as explained in Note 2(W). An associate is an entity over which the Group is in a position to
B) Basis of consolidation exercise significant influence, but not control or joint control, through
The financial statements comprise the consolidated financial statements the power to participate in the financial and operating policy decisions of
of Antofagasta plc (“the Company” or “the Parent” or “the Parent that entity. The results and assets and liabilities of associates are
Company”) and its subsidiaries (collectively “the Group”). incorporated in these consolidated financial statements using the equity
method of accounting.
Subsidiaries – A subsidiary is an entity over which the Group has
control, which is the case when the Group is exposed to, or has rights to, This requires recording the investment initially at cost to the Group and
variable returns from its involvement with the entity and has the ability to then, in subsequent periods, adjusting the carrying amount of the
affect those returns through its power over the entity. The consolidated investment to reflect the Group’s share of the associate’s results less any
financial statements include all the assets, liabilities, revenues, expenses impairment and any other changes to the associate’s net assets such as
and cash flows of the Company and its subsidiaries after eliminating dividends. When the Group loses control of a former subsidiary but
intercompany balances and transactions. For partly-owned subsidiaries, retains an investment in associate in that entity, the initial carrying value
the net assets and profit attributable to non-controlling shareholders are of the investment in associate is recorded at its fair value at that point.
presented as “Non-controlling interests” in the consolidated balance When the Group’s share of losses of an associate exceeds the Group’s
sheet and consolidated income statement. interest in that associate, the Group discontinues recognising its share of
further losses. Additional losses are recognised only to the extent that the
Non-controlling interests that are present ownership interests and entitle Group has incurred legal or constructive obligations or made payments
their holders to a proportionate share of the entity’s net assets in the on behalf of the associate.
event of liquidation may be initially measured either at fair value or at the
non-controlling interests’ proportionate share of the recognised amounts D) Joint arrangements
of the acquiree’s identifiable net assets. The choice of measurement A joint arrangement is an arrangement of which two or more parties
basis is made on an acquisition-by-acquisition basis. Other types of non- have joint control. Joint arrangements are accounted for depending on
controlling interests are measured at fair value or, when applicable, on the nature of the arrangement.
the basis specified in another IFRS. Subsequent to acquisition, the i) Joint ventures – are accounted for using the equity method in
carrying amount of non-controlling interests is the amount of those accordance with IAS 28 Investment in Associates and Joint Ventures
interests at initial recognition plus the non-controlling interests’ share of as described in Note 18.
subsequent changes in equity. Total comprehensive income is attributed
ii) Joint operations – are accounted for recognising directly the assets,
to non-controlling interests even if this results in the non-controlling
obligations, revenues and expenses of the joint operator in the joint
interests having a deficit balance.
arrangement. The assets, liabilities, revenues and expenses are
accounted for in accordance with the relevant IFRS.
When a Group entity transacts with its joint arrangements, profits and
losses resulting from the transactions with the joint arrangements are
recognised in the Group’s consolidated financial statements only to the
extent of interests in the joint arrangements that are not related to
the Group.
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186 Antofagasta
E) Currency translation Copper and molybdenum concentrate sale agreements and copper
The functional currency for each entity in the Group is determined as the cathode sale agreements generally provide for provisional pricing of
currency of the primary economic environment in which it operates. sales at the time of shipment, with final pricing based on the monthly
Transactions in currencies other than the functional currency of the average London Metal Exchange (“LME”) copper price or the monthly
entity are translated at the exchange rate ruling at the date of the average market molybdenum price for specified future periods. This
transaction. Monetary assets and liabilities denominated in currencies normally ranges from one to four months after delivery to the customer.
other than the functional currency are retranslated at year end exchange For sales contracts which contain provisional pricing mechanisms, the
rates. Gains and losses on retranslation are included in net profit or loss initial invoice typically reflects the month-average market price for the
for the period within other finance items. metal in the month of shipment, with the associated receivable balance
subsequently measured at fair value through profit or loss. Gains and
The presentational currency of the Group and the functional currency of losses from the marking-to market of the receivable balance in relation to
the Company is the US dollar. On consolidation, income statement items open sales are recognised through adjustments to other income
for entities with a functional currency other than the US dollar are presented within revenue in the income statement and to trade
translated into US dollars at average rates of exchange. Balance sheet receivables in the balance sheet. The fair value calculations are based on
items are translated at period-end exchange rates. Exchange differences forward prices at the period end for copper concentrate and cathode
on translation of the net assets of such entities are taken to equity and sales, and period-end average prices for molybdenum concentrate sales
recorded in a separate currency translation reserve. Cumulative due to the absence of a futures market for this product.
translation differences arising after the transition date to IFRS are
recognised as income or as expenses in the income statement in the For the Transport division, revenue in respect of its transportation and
period in which an operation is disposed of. ancillary services are recognised over time in line with the performance
of those services.
On consolidation, exchange gains and losses which arise on balances
between Group entities are taken to reserves where that balance is, in Interest income
substance, part of the net investment in a foreign operation, ie where Interest income is accrued on a time basis, by reference to the principal
settlement is neither planned nor likely to occur in the foreseeable future. outstanding and the effective interest rate applicable, which is the rate
All other exchange gains and losses on Group balances are recognised in that exactly discounts estimated future cash receipts through the
the income statement within other finance items. expected life of the financial asset to that asset’s net carrying amount.
Fair value adjustments and any goodwill arising on the acquisition of a Interest received is recognised within investing activities in the
foreign entity are treated as assets of the foreign entity and translated consolidated cash flow statement.
at the period-end rate. Dividend income
F) Revenue recognition and other income Dividend income from equity investments, associates and joint ventures
Revenue represents the value of goods and services supplied to third is recognised when the shareholders’ right to receive payment has been
parties during the year. Revenue is measured at the fair value of established. For associates and joint ventures, it is recorded as a
consideration received or receivable, and excludes any applicable decrease of the investment.
sales tax. G) Business combinations and goodwill
Revenue is recognised when the Group satisfies a performance Acquisitions of businesses are accounted for using the acquisition
obligation by transferring a promised good or service to a customer. method. The consideration transferred in a business combination is
An asset is transferred when (or as) the customer obtains control of measured at fair value, which is calculated as the sum of the acquisition-
that asset. date fair values of the assets transferred by the Group, liabilities incurred
by the Group to the former owners of the acquiree and the equity
For the Group’s mining products, the customer generally gains control interests issued by the Group in exchange for control of the acquiree.
over the material when it has been loaded at the port of loading, and so The results of businesses acquired during the year are brought into the
this is the point of revenue recognition. The Group sells a significant consolidated financial statements from the effective date of acquisition.
proportion of its products on Cost, Insurance & Freight (CIF) Incoterms, The identifiable assets, liabilities and contingent liabilities of a business,
which means that the Group is responsible for shipping the product to a which can be measured reliably, are recorded at their provisional fair
destination port specified by the customer. In these cases the customer values at the date of acquisition. Provisional fair values are finalised
still gains control over the material when it has been loaded at the port of within 12 months of the acquisition date. Acquisition-related costs are
loading, and so that remains the point of revenue recognition for the sale expensed as incurred.
of material; however, the shipping service represents a separate
performance obligation, and revenue in relation to such services is When the consideration transferred by the Group in a business
recognised separately from the sale of the material over time as the combination includes assets or liabilities resulting from a contingent
shipping service is provided, along with the associated costs. Shipment consideration arrangement, the contingent consideration is measured at
revenue is recognised at the contracted price to the Group as this its acquisition-date fair value and included as part of the consideration
reflects the standalone selling price. transferred in a business combination. Changes in the fair value of the
contingent consideration that qualify as measurement period adjustments
Revenue from mining activities is recorded at the invoiced amounts with are adjusted retrospectively, with corresponding adjustments against
an adjustment for provisional pricing at each reporting date, as explained goodwill. Measurement period adjustments are adjustments that arise
below. For copper and molybdenum concentrates, which are sold to from additional information obtained during the “measurement period”
smelters and roasting plants for further processing into fully refined (which cannot exceed one year from the acquisition date) about facts
metal, the price of the concentrate invoiced to the customer reflects the and circumstances that existed at the acquisition date.
market value of the fully refined metal less a “treatment charge”
deduction, to reflect the lower value of this partially processed material
compared with the fully refined metal. Revenue includes amounts from
the sale of by-products such as gold and silver.
antofagasta.co.uk
187
2 Principal accounting policies continued Costs incurred in acquiring exploration and mining licences are classified
The subsequent accounting for changes in the fair value of the as intangible assets when construction of the related mining operation
contingent consideration that do not qualify as “measurement period” has not yet commenced. When construction commences the licences are
adjustments depends on how the contingent consideration is classified. transferred from intangible assets to the mining properties category
Contingent consideration that is classified as equity is not remeasured at within property, plant and equipment.
subsequent reporting dates and its subsequent settlement is accounted I) Stripping costs
for within equity. Contingent consideration that is classified as an asset or Pre-stripping and operating stripping costs are incurred in the course of
a liability is remeasured at subsequent reporting dates in accordance the development and operation of open-pit mining operations.
with IFRS 9.
Pre-stripping costs relate to the removal of waste material as part of the
When a business combination is achieved in stages, the Group’s initial development of an open-pit, in order to allow access to the ore
previously held equity interest in the acquiree is remeasured to fair value body. The capitalised costs are depreciated once production commences
at the acquisition date (ie the date when the Group obtains control) and on a unit of production basis, in proportion to the volume of ore extracted
the resulting gain or loss, if any, is recognised in profit or loss. Amounts in the year compared with total proven and probable reserves for that pit
arising from interests in the acquiree prior to the acquisition date that at the beginning of the year.
have previously been recognised in other comprehensive income are
Operating stripping costs relate to the costs of extracting waste material
reclassified to profit or loss where such treatment would be appropriate
as part of the ongoing mining process. The ongoing mining and
if that interest were disposed of.
development of the Group’s open-pit mines is generally performed via a
If the initial accounting for a business combination is incomplete by the succession of individual phases. The costs of extracting material from an
end of the reporting period in which the combination occurs, the Group open-pit mine are generally allocated between ore and waste stripping in
reports provisional amounts for the items for which the accounting is proportion to the tonnes of material extracted. The waste stripping costs
incomplete. Those provisional amounts are adjusted during the are generally absorbed into inventory and expensed as that inventory is
measurement period (see above), or additional assets or liabilities are processed and sold. Where the stripping costs relate to a significant
recognised, to reflect new information obtained about facts and stripping campaign which is expected to provide improved access to an
circumstances which existed at the acquisition date that, if known, would identifiable component of the ore body (typically an individual phase
have affected the amounts recognised at that date. within the overall mine plan), the costs of removing waste in order to
Goodwill arising in a business combination is measured as the excess of improve access to that part of the ore body will be capitalised within
the sum of the consideration transferred, the amount of any non- property, plant and equipment. The capitalised costs will then be
controlling interest in the acquiree and the fair value of the acquirer’s amortised on a unit of production basis, in proportion to the volume of
previously held equity interest in the acquiree (if any) over the net ore extracted compared with the total ore contained in the component of
identifiable assets acquired and liabilities assumed. Any goodwill on the the pit to which the stripping campaign relates.
acquisition of subsidiaries is separately disclosed, while any goodwill on J) Intangible assets
the acquisition of associates and joint ventures is included within Exploration and mining licences are classified as intangible assets when
investments in equity accounted entities. Internally generated goodwill is construction of the related mining operation has not yet commenced. When
not recognised. Where the fair values of the identifiable net assets construction commences, the licences are transferred from intangible assets
acquired exceed the sum of the consideration transferred, the surplus is to the mining properties category within property, plant and equipment.
credited to the profit or loss in the period of acquisition as a bargain
K) Property, plant and equipment
purchase gain.
The costs of mining properties and leases, which include the costs of
The Group sometimes enters into earn-in arrangements whereby the acquiring and developing mining properties and mineral rights, are
Group acquires an interest in a project company in exchange for funding capitalised as property, plant and equipment in the year in which they are
exploration and evaluation expenditure up to a specified level of incurred, when a mining project is considered to be commercially viable
expenditure or a specified stage in the life of the project. Funding is (normally when the project has completed a pre-feasibility study, and the
usually conditional on the achievement of key milestones by the partner. start of a feasibility study has been approved). The cost of property, plant
Typically there is no consideration transferred or funding liability on the and equipment comprises the purchase price and any costs directly
effective date of acquisition of the interest in the project company and no attributable to bringing the asset to the location and condition necessary
goodwill is recognised on this type of transaction. for it to be capable of operating in the manner intended. Once a project
The results of businesses sold during the year are included in the has been established as commercially viable, related development
consolidated financial statements for the period up to the effective date of expenditure is capitalised. This includes costs incurred in preparing the
disposal. Gains or losses on disposal are calculated as the difference site for mining operations, including pre-stripping costs. Capitalisation
between the sales´ proceeds (net of expenses) and the net assets ceases when the mine is capable of commercial production, with the
attributable to the interest which has been sold. Where a disposal exception of development costs which give rise to a future benefit.
represents a separate major line of business or geographical area of Interest on borrowings related to the construction or development of
operations, the net results attributable to the disposed entity are shown projects is capitalised as part of the cost of the asset. To the extent that
separately in the income statement as a discontinued operation. borrowings have been put in place specifically to fund the construction of
H) Exploration and evaluation expenditure the asset, the capitalised amount will reflect the actual interest costs
Exploration and evaluation costs, other than those incurred in acquiring incurred on that borrowing. If the construction is funded out of general
exploration licences, are expensed in the year in which they are incurred. borrowings, the capitalised interest expense will be calculated based on
When a mining project is considered to be commercially viable (normally the entity’s weighted average interest rate, applied to the expenditure on
when the project has completed a pre-feasibility study, and the start of a the asset (with the capitalised interest amount not exceeding the entity’s
feasibility study has been approved) all further directly attributable pre- total borrowing cost for the period). The interest costs are capitalised,
production expenditure is capitalised. Capitalisation of pre-production until such time as the assets are substantially ready for their intended
expenditure ceases when commercial levels of production are achieved. use or sale which, in the case of mining properties, is when they are
capable of commercial production.
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188 Antofagasta
L) Depreciation of property, plant and equipment mining operations typically requires further capital expenditure and
Depreciation of an asset begins when it is available for use, ie when it is ongoing mine development, and accordingly the Group typically applies
in the location and condition necessary for it to be capable of operating in this valuation estimate in its impairment assessments, unless indicated
the manner intended. otherwise. Details of the valuations and sensitivities of the Group’s mining
operations considered as part of the impairment trigger assessment are
Property, plant and equipment is depreciated over its useful life, or over
included in Note 5.
the remaining life of the operation if shorter, to residual value. The major
categories of property, plant and equipment are depreciated as follows: If the recoverable amount of an asset or cash-generating unit is
estimated to be less than its carrying amount, the carrying amount is
(i) Land – freehold land is not depreciated unless the value of the land
reduced to the recoverable amount. An impairment charge is recognised
is considered to relate directly to a particular mining operation, in
in the income statement immediately. Where an impairment subsequently
which case the land is depreciated on a straight-line basis over the
reverses, the carrying amount is increased to the revised estimate of
expected mine life.
recoverable amount, but so that the increased carrying amount does not
(ii) Mining properties – mining properties, including capitalised exceed the carrying value that would have been determined if no
financing costs, are depreciated on a unit of production basis, in impairment had previously been recognised after taking into account the
proportion to the volume of ore extracted in the year compared with depreciation and/or amortisation that would otherwise have been
total proven and probable reserves at the beginning of the year. recorded in the intervening period. A reversal is recognised in the
(iii) Buildings and infrastructure – straight-line basis over 10 to 25 income statement immediately.
years. N) Inventory
(iv) Railway track (including trackside equipment) – straight-line basis Inventory consists of raw materials and consumables, work-in-progress
over 20 to 25 years. and finished goods. Work-in-progress represents material that is in the
process of being converted into finished goods. The conversion process
(v) Wagons and rolling stock – straight-line basis over 10 to 20 years. for mining operations depends on the nature of the copper ore. For
(vi) Machinery, equipment and other assets – are depreciated on a sulphide ores, processing typically includes milling and concentrating,
unit of production basis, in proportion to the volume of ore/material resulting in the production of copper concentrate. For oxide ores,
processed or hours of equipment usage, or on a straight-line basis processing includes leaching of stockpiles, solvent extraction and
over 5 to 20 years. electrowinning and results in the production of copper cathodes. Finished
goods consist of copper concentrate containing gold and silver at Los
(vii) Assets under construction – no depreciation until asset is
Pelambres and Centinela and copper cathodes at Centinela and
available for use.
Antucoya. Los Pelambres and Centinela also produce molybdenum as a
(viii) Lease right-of-use assets – depreciated over the shorter of the by-product.
asset’s useful life and the lease term on a straight-line basis.
Inventory is valued at the lower of cost, on a weighted average basis, and
(ix) Stripping cost – capitalised costs are amortised on a unit of net realisable value. Net realisable value represents estimated selling
production basis, in proportion to the volume of ore extracted price less all estimated costs of completion and costs to be incurred in
compared with the total ore contained in the component of the pit to marketing, selling and distribution. Cost of finished goods and work-in-
which the stripping campaign relates (Note 15). progress is production cost and for raw materials and consumables it is
Residual values and useful lives are reviewed, and adjusted if purchase price. Production cost includes:
appropriate, at least annually, and changes to residual values and useful • labour costs, raw material costs and other costs directly attributable to
lives are accounted for prospectively. the extraction and processing of ore,
M) Impairment of property, plant and equipment and • depreciation of plant, equipment and mining properties directly
intangible assets involved in the production process, and
Property, plant and equipment and intangible assets relating to • an appropriate allocation of production overheads.
exploration and mining licences are reviewed for impairment if there is Stockpiles represent ore that is extracted and is available for further
any indication that the carrying amount may not be recoverable. In processing. Costs directly attributable to the extraction of ore are
respect of historical impairments recognised in prior years, the Group generally allocated as part of production costs in proportion to the tonnes
assesses whether there is any indication that impairment may no longer of material extracted. Operating stripping costs are generally absorbed
exist or may have decreased. into inventory, and therefore expensed as that inventory is processed
If any such indications exist, the recoverable amount of the asset is and sold. If ore is not expected to be processed within 12 months of the
estimated in order to determine the extent of the impairment or reversal balance sheet date it is included within non-current assets. If there is
(if any). Where the asset does not generate cash flows that are largely significant uncertainty as to when any stockpiled ore will be processed it
independent from other assets, the Group estimates the recoverable is expensed as incurred.
amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs of disposal and
value in use. Fair value less costs of disposal reflects the net amount the
Group would receive from the sale of the asset in an orderly transaction
between market participants. For mining assets, this would generally be
determined based on the present value of the estimated future cash
flows arising from the continued use, further development or eventual
disposal of the asset. The estimates used in determining the present
value of those cash flows are those that an independent market
participant would consider appropriate. Value in use reflects the expected
present value of the future cash flows which the Group would generate
through the operation of the asset in its current condition, without taking
into account potential enhancements or further development of the asset.
The fair value less costs of disposal valuation will normally be higher than
the value in use valuation, as realisation of the full potential of the Group’s
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2 Principal accounting policies continued Q) Provisions for decommissioning and restoration costs
Obligations to incur decommissioning and restoration costs can arise as
O) Taxation
a result of the development or ongoing operation of a mining property.
Tax expense comprises the charges or credits for the year relating to
Costs are estimated on the basis of a formal closure plan and are subject
both current and deferred tax.
to regular formal review.
Current tax is based on taxable profit for the year. Taxable profit may
Decommissioning obligations arising from the construction of property,
differ from net profit as reported in the income statement because it
plant and equipment (including installation of plant and site preparation
excludes items of income or expense that are taxable and deductible in
work) are provided for at their net present value as the construction of
different years and also excludes items that are not taxable or deductible.
the asset gives rise to the obligation, and included within the property,
The liability for current tax is calculated using tax rates for each entity in
plant and equipment cost. These decommissioning costs are charged
the consolidated financial statements which have been enacted or
against profit or loss over the life of the mine, through depreciation of the
substantively enacted at the balance sheet date.
property, plant and equipment balance (recorded within operating
Deferred tax is the tax expected to be payable or recoverable on expenses). The unwinding of the discount on the provision is recorded
temporary differences (ie differences between the carrying amount of within other finance items. Changes in the measurement of a
assets and liabilities in the financial statements and the corresponding tax decommissioning provision are added to, or deducted from, the property,
basis used in the computation of taxable profit). Deferred tax is plant and equipment balance in the current year.
accounted for using the balance sheet liability method and is provided on
Restoration obligations, arising from ongoing operating activities, are
all temporary differences with certain limited exceptions as follows:
provided for at their net present values and charged against operating
(i) tax payable on undistributed earnings of subsidiaries, associates expenses as the obligation arises. Changes in the measurement of a
and joint ventures is provided except where the Group is able to restoration provision which, relate to a change in the estimate of the
control the remittance of profits and it is probable that there will be closure costs or a change in the discount rate, are charged against
no remittance of past profits earned in the foreseeable future, operating expenses, and changes relating to foreign exchange are
(ii) deferred tax is not provided on the initial recognition of an asset or recorded within other finance items.
liability in a transaction that does not affect accounting profit or R) Share-based payments
taxable profit and is not a business combination; nor is deferred tax For cash-settled share-based payments, a liability is recognised for the
provided on subsequent changes in the carrying value of such goods or services acquired, measured initially at the fair value of the
assets and liabilities, for example where they are depreciated, and liability. At the end of each reporting period until the liability is settled, and
(iii) the initial recognition of any goodwill. at the date of settlement, the fair value of the liability is remeasured, with
any changes in fair value recognised in profit or loss for the year. The
Deferred tax assets are recognised only to the extent that it is probable Group currently does not have any equity settled share-based payments
that they will be recovered through sufficient future taxable profit. to employees or third parties.
The carrying amount of deferred tax assets is reviewed at each balance
sheet date. S) Post-employment benefits
The Group operates defined contribution schemes for a limited number
Deferred tax is calculated at the tax rates that are expected to apply in of employees. For such schemes, the amount charged to the income
the period when the liability is settled or the asset is realised. Deferred statement is the contributions paid or payable in the year.
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 Employment terms may also provide for payment of a severance
tax is also taken directly to equity. 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
P) Provisions most cases to a cap as to the number of qualifying years of service) and
Provisions are recognised when the Group has a present obligation (legal based on final salary level. The severance indemnity obligation is treated
or constructive) as a result of a past event, it is probable that the Group as an unfunded defined benefit plan, and the calculation is based on
will be required to settle the obligation and a reliable estimate can be valuations performed by an independent actuary using the projected unit
made of the amount of the obligation. credit method, which are regularly updated.
The amount recognised as a provision is the best estimate of the The obligation recognised in the balance sheet represents the present
consideration required to settle the present obligation at the end of the value of the severance indemnity obligation. Actuarial gains and losses
reporting period, taking into account the risks and uncertainties are immediately recognised in other comprehensive income.
surrounding the obligation. When a provision is measured using the cash
flows estimated to settle the present obligation, its carrying amount is the T) Cash and cash equivalents
present value of those cash flows (when the effect of the time value of Cash and cash equivalents comprise cash on hand, deposits held on call
money is material). with banks, highly liquid investments that are readily convertible into
known amounts of cash, are subject to insignificant risk of changes in
When some or all of the economic benefits required to settle a provision value and are held for the purpose of meeting short-term cash
are expected to be recovered from a third party, a receivable is commitments rather than for investment or other purposes. The cash
recognised as an asset if it is virtually certain that reimbursement will be balance is presented net of bank overdrafts which are repayable on
received and the amount of the receivable can be measured reliably. demand. Cash and cash equivalents have a maturity period of 90 days
or less.
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190 Antofagasta
U) Liquid investments (iii) Trade and other payables – Trade and other payables are
Liquid investments represent highly liquid current asset investments generally not interest-bearing and are normally stated at their
such as term deposits and managed funds invested in high quality fixed nominal value.
income instruments. They do not meet the IAS 7 definition of cash and (iv) Borrowings (loans and preference shares) – Interest-bearing
cash equivalents, normally because even if readily accessible, the loans and bank overdrafts are initially recorded at fair value which is
underlying investments have an average maturity profile greater than 90 typically equal to the proceeds received, net of direct issue costs.
days from the date first entered into, or because they are held primarily They are subsequently measured at amortised cost using the
for investment purposes rather than meeting short-term cash effective interest method, with interest expense recognised on an
commitments. These assets are designated as fair value through profit or effective yield basis. The effective interest method is a method of
loss, with the fair value movements recorded within investment income. calculating the amortised cost of a financial liability and of allocating
V) Leases interest expense over the relevant period. The effective interest rate
Leases are recognised as a right-of-use asset and a corresponding is the rate that exactly discounts estimated future cash payments
liability at the date at which the leased asset is available for use by the through the expected life of the financial liability, or, where
Group. Each lease payment is allocated between the liability and finance appropriate, a shorter period. Finance charges, including premiums
cost. The finance cost is charged to profit or loss over the lease period payable on settlement or redemption and direct issue costs, are
so as to produce a constant periodic rate of interest on the remaining accounted for on an accruals basis using the effective interest rate
balance of the liability for each period. The right-of-use asset is method. Amounts are either recorded as financing costs in profit or
depreciated over the shorter of the asset's useful life and the lease term loss or capitalised in accordance with the accounting policy set out
on a straight-line basis. in Note 2(K). Finance charges are added to the carrying amount of
the instrument to the extent that they are not settled in the period in
Assets and liabilities arising from a lease are initially measured on a
which they arise.
present value basis. Lease liabilities include the net present value of the
following lease payments: Interest paid is recognised within operating activities in the
consolidated cash flow statement.
• fixed payments (including in-substance fixed payments), less any lease
incentives receivable The Sterling-denominated preference shares issued by the
• variable lease payments that are based on an index or a rate Company carry a fixed rate of return without the right to participate
• amounts expected to be payable by the lessee under residual value in any surplus. They are accordingly classified within borrowings
guarantees and translated into US dollars at period-end rates of exchange.
• the exercise price of a purchase option if the lessee is reasonably Preference share dividends are included within other finance items
certain to exercise that option, and within net finance expense in the income statement.
• payments of penalties for terminating the lease, if the lease term (v) Equity instruments – Equity instruments issued are recorded at
reflects the lessee exercising that option. the proceeds received, net of direct issue costs. Equity instruments
The lease payments are discounted using the interest rate implicit in the of the Company comprise its Sterling-denominated issued ordinary
lease. If that rate cannot be readily determined, the lessee’s incremental share capital and related share premium. As explained in Note 2(E),
borrowing rate is used, being the rate that the lessee would have to pay the presentational currency of the Group and the functional
to borrow the funds necessary to obtain an asset of similar value in a currency of the Company is US dollars, and ordinary share capital
similar economic environment with similar terms and conditions. and share premium are translated into US dollars at historical rates
of exchange based on dates of issue.
Right-of-use assets are measured at cost comprising the following:
(vi) Derivative financial instruments – As explained in Note 25(D), the
• the amount of the initial measurement of the lease liability
Group periodically uses derivative financial instruments to reduce
• any lease payments made at or before the commencement date less
exposure to foreign exchange, interest rate and commodity price
any lease incentives received
movements. The Group does not use such derivative instruments
• any initial direct costs, and
for trading purposes. The Group has applied the hedge accounting
• restoration costs.
provisions of IFRS 9 Financial Instruments. The effective portion of
W) Other financial instruments changes in the fair value of derivative financial instruments that are
Financial assets and financial liabilities are recognised on the Group’s designated and qualify as hedges of future cash flows have been
balance sheet when the Group becomes a party to the contractual recognised directly in equity, with such amounts subsequently
provisions of the instrument. Financial assets are derecognised when the recognised in profit or loss in the period when the hedged item
contractual rights to the cash flows from the financial asset expire or the affects profit or loss. Any ineffective portion is recognised
Group has transferred the asset to another party. Financial liabilities are immediately in profit or loss. Realised gains and losses on
removed from the Group’s balance sheet when they are extinguished – commodity derivatives recognised in profit or loss are recorded
ie when the obligation specified in the contract has been discharged, within revenue. The time value element of changes in the fair value
cancelled or expired. of derivative options is recognised within other comprehensive
(i) Investments – Equity investments which are not subsidiaries, income.
associates or joint ventures are recognised at fair value. The Group Financial assets with embedded derivatives are considered in their
generally applies an irrevocable election for each equity investment entirety when determining the appropriate classification and
to designate them as Fair Value through Other Comprehensive measurement. The treatment of embedded derivatives arising from
Income (FVOCI). Dividends from equity investments are recognised provisionally priced commodity sales contracts is set out in further
in the income statement when the right to receive payment is detail in Note 2(F) relating to revenue. Derivatives embedded in
established. financial liabilities are treated as separate derivatives when their
(ii) Trade and other receivables – As explained above, for sales risks and characteristics are not closely related to those of the host
contracts which contain provisional pricing mechanisms the total contract and the host contract is not measured at fair value.
receivable balance is measured at fair value through profit or loss. Changes in fair value are reported in profit or loss for the year.
Other receivable balances are recognised at amortised cost.
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191
2 Principal accounting policies continued When an impairment test is performed, management necessarily
(vii) Impairment of financial assets – The Group applies the forward- applies its judgement in allocating assets to CGUs, in estimating the
looking expected credit loss model to its financial assets, other than probability, timing and value of underlying cash flows and in
those measured at fair value through profit or loss. The Group selecting appropriate discount rates to be applied within the fair
applies the IFRS 9 “simplified approach” to its trade receivables, value less costs of disposal calculation. The key assumptions are set
measuring the loss allowance at the lifetime expected credit loss. out in Note 2(M). Subsequent changes to CGU allocation, licensing
For other financial assets, where the credit risk has not increased status, reserves and resources, price assumptions or other
significantly since initial recognition, the loss allowance is measured estimates and assumptions in the fair value less costs of disposal
at the 12 month expected credit loss. If there has been a significant calculation could impact the carrying value of the respective assets.
increase in credit risk, the loss allowance is measured at the lifetime As explained in Note 5, based on an assessment of both qualitative
expected credit loss. Increases or decreases to the credit loss and quantitative factors, there were no indicators of potential
allowance are recognised immediately in profit or loss. impairment, or reversal of previous impairments, for the Group’s
X) Exceptional items non-current assets associated with its mining operations at the
Exceptional items are material items of income and expense which are 2022 year-end, and accordingly no impairment tests have been
non-regular or non-operating and typically non-cash, including performed. However, whether or not an impairment indicator exists
impairments and profits or losses on disposals. The tax effect of items is a critical judgement, in particular as at 31 December 2022 for
presented as exceptional is also classified as exceptional, as are material Zaldívar (given the ongoing permitting process and the other factors
deferred tax adjustments that relate to more than one reporting period. set out in note 5) and at Antucoya (given the impairments
recognised in 2012 and 2016 and, therefore, the sensitivity of the
Y) Rounding asset’s value to movements in macroeconomic assumptions and
All amounts disclosed in the financial statements and notes have been other developments)
rounded to the nearest million dollars unless otherwise stated.
(ii) Capitalisation of project costs within property, plant
These policies have been consistently applied to all the years presented, and equipment
unless otherwise stated. As explained in Note 2(K) the costs of developing mining properties
are capitalised as property, plant and equipment when the mining
3 Critical accounting judgements and key project is considered to be commercially viable. Commercial viability
sources of estimation uncertainty is normally considered to be demonstrable when the project has
Determining many of the amounts included in the financial statements completed a pre-feasibility study, and the start of a feasibility study
involves the use of judgement and/or estimation. These judgements and has been approved. Management reviews amounts capitalised to
estimates are based on management’s best knowledge of the relevant ensure that the treatment of that expenditure as capital rather than
facts and circumstances having regard to prior experience, but actual operating expenditure is reasonable, in particular in respect of the
results may differ from the amounts included in the financial statements. commercial viability of the project.
Information about such judgements and estimates is included in the As at 31 December 2022, $231 million (2021 – $180 million) of
principal accounting policies in Note 2 or the other notes to the financial feasibility study costs relating to the Centinela Second Concentrator
statements, and the key areas are set out below. project, which is still under evaluation and has not yet received final
A) Judgements Board approval, were capitalised within property, plant and
The following are the critical judgements, apart from those involving equipment. Should the Group ultimately take the decision not to
estimations (which are dealt with separately), that have been made in the proceed with the development of this project, then it is likely that the
process of applying the Group’s accounting policies and that have the corresponding element of the capitalised feasibility study costs
most significant effect on the amounts recognised in the financial would need to be impaired.
statements. B) Estimates
(i) Non-financial assets impairment The Group makes estimates and assumptions concerning the
As explained in Note 2(M), the Group reviews the carrying value of future. The resulting accounting estimates will, by definition, seldom
its intangible assets and property, plant and equipment to determine equal the related actual results. The estimates and assumptions that
whether there is any indication that those assets are impaired. In have a significant risk of causing a material adjustment to the
performing assessments for impairment triggers, assets that do not carrying amounts of assets and liabilities within the next financial
generate largely independent cash inflows are allocated to an year are addressed below.
appropriate cash generating unit (“CGU”). Details of the valuations
and sensitivities of the Group’s mining operations considered as
part of the impairment trigger assessment are included in Note 5,
including quantitative sensitivity analyses. Details of the value of
assets and liabilities for each of the mining operations are set out
in Note 6.
When an impairment trigger is identified, an impairment test is
performed, wherein the recoverable amount of those assets, or the
CGU, is measured at the higher of their fair value less costs of
disposal and value in use.
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192 Antofagasta
(i) Deferred tax liabilities in respect of undistributed earnings of venture as at 15 December 2022 of $944.7 million, reflecting the
subsidiaries estimate of the Sale proceeds and related interest, working capital
No deferred tax liability is recognised in respect of the undistributed and other adjustments and the carrying value of the investment at
earnings of subsidiaries where it is not likely that those profits will that date. A receivable balance of $943.3 million in respect of the
be distributed in the foreseeable future. When determining whether estimated proceeds due to Antofagasta has been recognised within
it is likely that distributions will be made in the foreseeable future, Trade and other receivables in the balance sheet.
and what is the appropriate foreseeable future period for this In addition to the above estimates and assumptions that have a significant
purpose, the Group considers factors such as the predictability of risk of causing a material adjustment to the carrying amounts of assets
the likely future Group dividends, taking into account the Group’s and liabilities, we have also set out the following additional estimates and
dividend policy and the level of potential volatility of the Group’s assumptions which have a significant impact on the financial statements,
future earnings, as well as the current level of distributable reserves but which are not considered to be key sources of estimation uncertainty
at the Antofagasta plc entity level. As set out in Note 28, at 31 as defined in IAS 1.
December 2022 deferred withholding tax liabilities of $71.6 million
have been recognised, which relate to undistributed earnings of (i) Inventory valuation
subsidiaries where it is considered likely that the corresponding The valuation of work in progress inventories involves a number of
profits will be distributed in the foreseeable future. The value of the estimates, including the average ore grade, volume and density of
remaining undistributed earnings of subsidiaries, for which deferred ore stockpiles, and the recoveries in respect of material on the
tax liabilities have not been recognised, because the Group is in a leach piles. Evaluating the net realisable value of the inventories also
position to control the timing of the distributions and it is likely that requires an estimate of the likely future copper price for the periods
distributions will not be made in the foreseeable future, was when it is expected that the inventories will be completed and sold.
$6,430.4 million (31 December 2021 – $6,483.3 million). If deferred As set out in Note 20, the value of work in progress inventories at
withholding tax liabilities were recognised in respect of all of these 31 December 2022 was $751.9 million.
remaining undistributed earnings of subsidiaries this would result in If the copper spot price at 31 December 2022 (used for forecasting
an additional deferred tax liability and expense of approximately the likely sales price of short-term inventories) had been 10% lower,
$1,076.5 million (31 December 2021 – $1,232.1 million), depending this would not have resulted in any net realisable value provision.
on the application of tax credits which may be available in particular
circumstances. The valuation of leachpile inventories can be particularly complex,
given the required estimates including in respect of the total
(ii) Disposal of investment in Tethyan joint venture recoveries and the speed of recovery in relation to the material on
On 15 December 2022, Antofagasta entered into definitive the piles. This is particularly the case with leachpiles with a long
agreements to exit its interest in the Tethyan joint venture. As a leaching cycle, where material may remain on the pile for several
result of those agreements: years before it has been fully leached. The operation with the most
• the Reko Diq project in Pakistan (the “Project”) was reconstituted in significant long-term leachpile inventory is Zaldívar, with a long-
Reko Diq Mining Company (Private Limited) ("RDMC"). RDMC is the term leachpile with a value of approximately $130 million (on a 50%
Pakistani registered subsidiary of Tethyan Copper Company Pty attributable basis) at 31 December 2022. This balance is forecast to
Limited ("TCC"), which is itself the Australian registered subsidiary of be consumed over the operation's remaining 14 year mine life and
Atacama Copper Pty Limited (“Atacama”), the joint venture company its recoverability is based on the same assumptions about future
registered in Australia and owned equally by the Company and Barrick operational considerations as detailed in note 5. As a simple, high-
Gold Corporation ("Barrick"); level sensitivity if this balance were reduced by 10% (due to
• a consortium of various Pakistani state-owned enterprises acquired changes in recovery estimates for example), this would result in a
shares in RDMC which holds the Project (the "Sale"); and reduction in Zaldívar’s inventory balance of approximately $13
• as the International Centre for Settlement of Investment Disputes million (on a 50% attributable basis).
("ICSID") award (to TCC) was resolved by reconstituting the Project, (ii) Useful economic lives of property, plant and equipment and
TCC no longer has any rights or claims against the Governments of ore reserves estimates
Pakistan and Balochistan arising from the suspension of the Project in As explained in Note 2(L), mining properties, including capitalised
2011. financing costs, are depreciated in proportion to the volume of ore
The proceeds of the Sale which, together with accrued interest up extracted in the year compared with total proven and probable
to 15 December 2022 totalled US$946.0 million, are currently held reserves at the beginning of the year.
by Atacama in a segregated interest-bearing account. Antofagasta There are numerous uncertainties inherent in estimating ore reserves,
and Barrick have agreed that the proceeds of this account, including and assumptions that were valid at the time of estimation may change
all further interest received, less any Australian tax arising, will be when new information becomes available. These include assumptions
distributed to the Antofagasta Group during 2023, on a date to be as to grade estimates and cut-off grades, recovery rates, commodity
determined by Antofagasta. Atacama is seeking a binding private prices, exchange rates, production costs, capital costs, processing and
ruling to confirm that the Sale proceeds and their distribution to the reclamation costs and discount rates. The actual volume of ore
Antofagasta Group will not be subject to Australian tax. The extracted and any changes in these assumptions could affect
Australian corporate tax rate is 30%. Although Antofagasta will prospective depreciation rates and carrying values.
retain its shareholding in Atacama until the proceeds have been
distributed, it no longer has any appointees on the board of the joint
venture, is not entitled to exercise voting rights in Atacama, and is
not required to provide any funding to, or permitted to receive any
distributions from, Atacama other than the Sale proceeds.
Antofagasta has therefore ceased to have an economic interest in
Atacama and its subsidiaries as of 15 December 2022 other than
being entitled from that date to receive an amount equal to the Sale
proceeds and related interest less any Australian tax arising
(whether before or after the distribution). Accordingly, Antofagasta
has recognised a gain on disposal of its investment in the joint
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3 Critical accounting judgements and key 4 Exceptional items

sources of estimation uncertainty continued Exceptional items are material items of income and expense which are
Other items of property, plant and equipment are depreciated over non-regular or non-operating and typically non-cash, including
their useful economic lives, on a unit of production basis, in impairments and profits or losses on disposals. The tax effect of items
proportion to the volume of ore/material processed or hours of presented as exceptional is also classified as exceptional, as are material
equipment usage, or on a straight-line basis. Management reviews deferred tax adjustments that relate to more than one reporting period.
the appropriateness of useful economic lives at least annually and, The classification of these types of items as exceptional is considered to
again, any changes could affect prospective depreciation rates and be useful as it provides an indication of the earnings generated by the
asset carrying values. ongoing businesses of the Group.
The operation with the most significant depreciation expense is 2022 – Disposal of investment in Tethyan joint venture
Centinela, with a depreciation expense of $710 million in 2022, On 15 December 2022, Antofagasta entered into definitive agreements to
representing approximately 60% of the total Group depreciation exit its interest in the Tethyan joint venture. As a result, Antofagasta has
charge. As a simple high-level sensitivity, a 10% adjustment to the recognised a gain on disposal of its investment in the joint venture as at
useful economic lives of Centinela’s property, plant and equipment 15 December 2022 of $944.7 million. Full details of the agreements and
would result in an impact of approximately $71 million on the annual gain on disposal are set out in Note 17.
depreciation charge. 2021 – Impairment of Twin Metals’ assets
(iii) Provisions for decommissioning and site restoration costs Twin Metals Minnesota (“Twin Metals”) is a wholly owned copper, nickel and
As explained in Note 2(Q), provision is made, based on net present platinum group metals (PGM) underground mining project, which holds
values, for decommissioning and site rehabilitation costs as soon as copper, nickel, cobalt-PGM deposits in north-eastern Minnesota, US. In
the obligation arises following the development or ongoing recent years, Twin Metals has been progressing its Mine Plan of Operations
production of a mining property. The provision is based on a closure (MPO) and Scoping Environmental Assessment Worksheet Data Submittal,
plan prepared with the assistance of external consultants. submitted in December 2019 to the US Bureau of Land Management (BLM)
and Minnesota Department of Natural Resources (DNR), respectively.
Management uses its judgement and experience to provide for and However, while the Twin Metals project was advancing through
(in the case of capitalised decommissioning costs) amortise these environmental review, several actions were taken by the federal government
estimated costs over the life of the mine. The ultimate cost of that have changed the potential scenarios for the project.
decommissioning and site rehabilitation is uncertain and cost
estimates can vary in response to many factors including changes In September 2021, the United States Forest Service (USFS) submitted an
to relevant legal requirements, the emergence of new restoration application to withdraw approximately 225,000 acres of land in the Superior
techniques or experience at other mine sites. National Forest from the scope of federal mineral leasing laws, subject to
valid existing rights. In October 2021, the United States Bureau of Land
The expected timing and extent of expenditure can also change, for Management (BLM) rejected Twin Metals’ Preference Right Lease
example in response to changes in ore reserves or processing Applications (PRLAs) and Prospecting Permit Applications (PPAs). In
levels. As a result, there could be significant adjustments to the January 2022, the United States Department of the Interior cancelled Twin
provisions established which would affect future financial results. Metals’ MNES-1352 and MNES-1353 federal mineral leases. The PRLAs and
Details of the decommissioning and restoration provisions are set federal mineral leases form a significant proportion of the mineral resources
out in Note 29. The total value of these provisions as at 31 contained within Twin Metals’ current project plan and, accordingly, it was
December 2022 was $488.2 million. As a simple high-level determined that these events collectively represented an impairment trigger
sensitivity, a 10% increase in the forecast closure costs would as at the 2021 balance sheet date.
increase the provision balance by approximately $49 million, the Prior to the resulting impairment assessment being performed, as at
capitalised decommissioning costs asset within property, plant and 31 December 2021, the Group had recognised an intangible asset of
equipment by approximately $17 million and the ongoing annual $150.1 million and property, plant and equipment of $27.5 million relating
operating expenses by approximately $2 million. to the Twin Metals project. The intangible asset arose upon the
(iv) Deferred tax assets in respect of tax losses acquisition in 2015 of Duluth Metals, which owned a 60% stake in the
As explained in Note 2(O), deferred tax assets are recognised only Twin Metals project, with the carrying value of the intangible asset
to the extent that it is probable that they will be recovered through reflecting the consideration paid for that acquisition. The property, plant
sufficient future taxable profits. When assessing the probable future and equipment balances reflected the historical cost of acquiring those
taxable profits, the Group considers whether the relevant Group assets. These carrying values prior to the impairment did not, therefore,
entity has sufficient taxable temporary differences which will result reflect an estimate of the commercial potential of the project as at
in taxable amounts against which the unused tax losses can be 31 December 2021.
utilised. The Group believes that Twin Metals has a valid legal right to the mining
Generally under Chilean tax law most tax losses can be carried leases and a strong case to defend its legal rights. Although the Group
forward indefinitely, and so the expiry of tax losses is not typically intends to pursue validation of those rights, considering the time and
an issue. The key assumptions to which the forecasts of the uncertainty related to any legal action to challenge the government
probable level of future taxable profits are most sensitive are future decisions, an impairment was recognised as at 31 December 2021 in
commodity prices, production levels and operating costs. respect of the $177.6 million of intangible assets and property, plant and
equipment relating to the Twin Metals project.
As set out in Note 28, the Group has recognised $78.5 million of net
deferred tax assets as at 31 December 2022, relating to tax losses, 2021 – Recognition of previously unrecognised deferred tax assets
provisions and short-term timing differences. The deferred tax At 31 December 2021, the Group recognised $90.6 million of previously
position includes $79.7 million (2021 – $90.6 million) of deferred tax unrecognised deferred tax assets relating to tax losses available for
assets in respect of tax losses available for offset against future offset against future profits, reflecting the improved actual and forecast
profits. These losses may be carried forward indefinitely. profitability of the relevant Group entity (Antucoya).
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194 Antofagasta
5 Asset sensitivities The US dollar/Chilean peso exchange rate
There were no indicators of potential impairment, or reversal of previous The value of the assets is also sensitive to movements in the US
impairments, for the Group’s non-current assets associated with its dollar/Chilean peso exchange rate. A long-term exchange rate of
mining operations at the 2022 year-end, and accordingly no impairment Ch$850/$1 has been used in the models considered as part of the
tests have been performed. The impairment indicator assessment impairment indicator assessment. This compares with the long-term
included consideration of the potential indicators set out in IAS 36, exchange rate of CH$770/$1 used in 2021. As an additional down-side
‘Impairment of Assets’, which included quantitative analysis based on the sensitivity an indicative valuation was prepared with a 10% stronger
operations’ life-of-mine models as adjusted for certain assumptions long-term Chilean peso exchange rate assumption. Los Pelambres and
(including potential future development opportunities) (“the models”). Centinela still showed positive headroom in this alternative down-side
These models provide indicative valuations and do not represent, or scenario. However, the Antucoya valuation indicated a potential deficit of
comply with, a formal impairment assessment prepared in accordance $140 million and the Zaldívar valuation indicated a potential deficit of $100
with IAS 36. Sensitivity analyses have been performed on the models to million (on a 50% basis). As noted above, historically there has often
quantify the impact of changes in assumptions to which the models are been a correlation between movements in the copper price and the US
most sensitive and to support the overall impairment indicator dollar/Chilean peso exchange rate, and so a strengthening of the Chilean
assessment. peso may often reflect a stronger copper price environment, which could
mitigate the impact of a stronger exchange rate.
As noted above, no qualitative indicators of potential impairment or
potential reversal of impairment were identified. Similarly, no quantitative Climate risks
indicators of impairment were identified, with the models used within the The models incorporate estimates of the potential future costs relating to
impairment indicator assessment continuing to indicate positive climate risks. The Group discloses in line with the recommendations of
headroom for all of the Group’s mining operations, including the Zaldivar the Task Force on Climate-related Financial Disclosures (“TCFD”). This
joint venture, with the indicated value of the assets in excess of their process includes scenario analyses assessing the potential future impact
carrying value. of transition and physical risks. The combined estimate of the potential
costs of the transition risk and physical risk scenarios, have been
Relevant aspects of this process are detailed below: incorporated into the models.
Copper price outlook Chilean mining royalty
The assumption to which the value of the assets is most sensitive is the We have considered potential changes to the Chilean mining royalty
future long-term copper price. The copper price forecasts (representing (taking into account the Group’s existing tax stability agreements) as part
the Group’s estimates of the assumptions that would be used by of the impairment indicator assessment.
independent market participants in valuing the assets) are based on the
forward curve for the short term and consensus analyst forecasts for Other relevant assumptions
the longer term. A long-term copper price of $3.50/lb (reflecting 2022 In addition to the impact of the future copper price the US dollar/Chilean
real terms) has been used in the models used in the impairment indicator peso exchange rate, climate risks and the potential changes in the
assessment, which has increased from $3.30/lb (reflecting 2021 real Chilean royalty regime, the models used in the impairment indicator
terms) at the prior year-end. As an additional down-side sensitivity an assessment are sensitive to the assumptions in respect of future
indicative valuation (based on the models) was performed with a long- production levels, operating costs, sustaining and development capital
term copper price of $3.15/lb, reflecting a 10% reduction in the long-term expenditure, and the discount rate used to determine the present value of
price forecast. Los Pelambres and Centinela still showed positive the future cash flows.
headroom in their models in this alternative down-side scenario. A real post-tax discount rate of 8% (calculated using relevant market
However, the Antucoya valuation indicated a potential deficit of $400 data) has been used in determining the present value of the changes in
million and the Zaldívar valuation indicated a potential deficit of $170 forecast future cash flows from the assets as part of the quantitative
million (on a 50% basis). This was a simple sensitivity exercise, looking at analysis performed as part of the overall impairment indicator
an illustrative change in the forecast long-term copper price in isolation. assessment.
In reality, a deterioration in the long-term copper price environment is
likely to result in corresponding improvements in a range of input cost
factors. In particular, given that copper exports account for over 50% of
Chile’s exports, historically there has often been a correlation between
movements in the copper price and the US dollar/Chilean peso exchange
rate, and a decrease in the copper price may therefore result in a
weakening of the Chilean peso, with a resulting reduction in the Group’s
operating costs and capital expenditure in US$ terms. These likely cost
reductions, as well as potential operational changes which could be made
in a weaker copper price environment, could partly mitigate the impact of
the lower copper price modelled in these estimated potential sensitivities.
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5 Asset sensitivities continued Indicators of potential reversal of previous impairments

In the case of Zaldívar, in addition to the assumptions made in respect of Antucoya recognised impairments totalling $716 million in 2012 and
the factors outlined above, the conclusion that there are no impairment 2016. Of the original impairment amounts, approximately $434 million
indicators reflects certain assumptions about future operational remains in effect unamortised as at 31 December 2022. Based on an
considerations to which the model considered as part of the impairment assessment of both qualitative and quantitative factors, there were no
indicator assessment is sensitive, in particular the following: indicators of a potential reversal of these previous impairments at the
2022 year-end. As noted above, the indicative valuation exercise for
• Zaldívar submitted an Environmental Impact Assessment (EIA) in 2018 Antucoya at the 2022 year-end indicated positive headroom for
which included an application to extend its water extraction and mining Antucoya. However, the headroom position is relatively marginal – the
permits to 2029 (with decreasing activity levels in 2030-2031). down-side sensitivity reflecting a 10% reduction in the long-term copper
Currently, Zaldívar is permitted to extract water and mine into 2025 price resulted in a potential deficit of $400 million; the sensitivity using a
and 2024, respectively. To ensure the continuity of the operation, in 10% stronger long-term Chilean peso exchange rate assumption
March 2023 Zaldívar submitted a DIA (Declaration of Environmental indicated a potential deficit of $140 million. Given this marginal headroom
Impact), a more limited scope and simplified procedure than an EIA, position, reasonably possible changes in the general market environment
requesting that the mining permit be extended from 2024 to 2025 so or the regulatory and taxation environment in Chile could result in a
as to expire at the same date as the current water permit. At the same potential deficit position for Antucoya and hence it was concluded that
time Zaldívar withdrew the 2018 EIA application. It is expected that an there was no impairment reversal trigger as at 31 December 2022.
alternative and updated EIA application to extend the water and mining
permits beyond 2025 will be submitted which will also include a plan 6 Segment information
for a transition from the current continental water source on
The Group’s reportable segments, which are the same as its operating
completion of the extended water permit, to either procuring water
segments, are as follows:
from a third party or using raw sea water. The impairment indicator
assessment assumes that the mining permit will be extended to cover • Los Pelambres
the full period of the model, and the water permit can be extended, or • Centinela
reasonable alternative arrangements for securing water to enable the • Antucoya
continued operation of the mine without interruption can be • Zaldívar
implemented. However, if this is not the case, this is likely to be • Exploration and evaluation
considered an indicator of a potential impairment, requiring an IAS 36 • Corporate and other items
impairment assessment at that point. • Transport division
• Zaldívar’s final pit phase, which represents approximately 20% of For management purposes, the Group is organised into two business
current ore reserves, impacts a portion of Minera Escondida’s mine divisions based on their products – Mining and Transport. The Mining
property, as well as infrastructure owned by third parties (a road, division is split further for management reporting purposes to show
railway, power line and pipelines). The impairment indicator results by mine and exploration activity.
assessment assumes that mining of the final pit phase, which is
subject to agreements or easements to access these areas and Los Pelambres produces primarily copper concentrate containing gold
relocate this infrastructure, will be possible. and silver as a by-product, and molybdenum concentrate. Centinela
produces copper concentrate containing gold and silver as a by-product,
The carrying value of the Group’s investment in joint venture balance in molybdenum concentrates and copper cathodes. Antucoya and Zaldívar
respect of Zaldívar as at 31 December 2022 was $897.3 million. produce copper cathodes. The Transport division provides rail cargo and
Fair value less costs of disposal and value in use valuations road cargo transport together with a number of ancillary services. All the
If a full IAS 36 impairment test were to be prepared, which was not the operations are based in Chile. The Exploration and evaluation segment
case as at 31 December 2022, the recoverable amount is the higher of incurs exploration and evaluation expenses. “Corporate and other items”
fair value less costs of disposal and value in use. Fair value less costs of comprises costs incurred by the Company, Antofagasta Minerals SA, the
disposal reflects the net amount the Group would receive from the sale Group’s mining corporate centre and other entities, that are not allocated
of the asset in an orderly transaction between market participants. For to any individual business segment. Consistent with its internal
mining assets, this would generally be determined based on the present management reporting, the Group’s corporate and other items are
value of the estimated future cash flows arising from the continued use, included within the Mining division.
further development or eventual disposal of the asset. Value in use The chief operating decision-maker (the Group’s Chief Executive Officer)
reflects the expected present value of the future cash flows which the monitors the operating results of the business segments separately for
Group would generate through the operation of the asset in its current the purpose of making decisions about resources to be allocated and
condition, without taking into account potential enhancements or further assessing performance. Segment performance is evaluated based on the
development of the asset. The fair value less costs of disposal valuation operating profit of each of the segments.
will normally be higher than the value in use valuation for mining
companies, and accordingly the Group typically applies this valuation
estimate in its impairment or valuation assessments.
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196 Antofagasta
A) Segment revenues and results
Exploration Corporate
Los and and other Transport
Pelambres Centinela Antucoya Zaldívar evaluation2 items Mining division Total
$m $m $m $m $m $m $m $m $m
Revenue 2,558.9 2,406.2 703.5 – – – 5,668.6 193.4 5,862.0
Operating cost excluding depreciation and loss
on disposals (1,086.1) (1,249.0) (442.3) – (113.0) (75.0) (2,965.4) (119.1) (3,084.5)
Depreciation (276.1) (710.2) (105.6) – – (18.7) (1,110.6) (30.5) (1,141.1)
Loss on disposals (0.5) (1.0) – – – (0.6) (2.1) – (2.1)
Operating profit/(loss) 1,196.2 446.0 155.6 – (113.0) (94.3) 1,590.5 43.8 1,634.3
Net share of results from associates and joint
ventures – – – 47.3 – (0.7) 46.6 1.5 48.1
Gain on disposal of investment in joint ventures3 – – – – – 944.7 944.7 – 944.7
Total profit from operations, associates and
joint ventures 1,196.2 446.0 155.6 47.3 (113.0) 849.7 2,581.8 45.3 2,627.1
Investment income 10.7 6.6 2.4 – – 19.8 39.5 0.7 40.2
Interest expense (3.3) (10.6) (19.9) – – (44.2) (78.0) (0.6) (78.6)
Other finance items (5.2) (11.3) (6.6) – – (5.0) (28.1) (1.7) (29.8)
Profit/(loss) before tax 1,198.4 430.7 131.5 47.3 (113.0) 820.3 2,515.2 43.7 2,558.9
Tax (371.8) (130.8) (34.9) – – (50.8) (588.3) (15.3) (603.6)
Profit/(loss) for the year 826.6 299.9 96.6 47.3 (113.0) 769.5 1,926.9 28.4 1,955.3
Non-controlling interests 319.3 82.9 21.2 – – (1,1) 422.3 – 422.3
Profit/(losses) attributable to the owners of
the parent 507.3 217.0 75.4 47.3 (113.0) 770.6 1,504.6 28.4 1,533.0
EBITDA1 1,472.8 1,157.2 261.2 147.2 (113.0) (75.7) 2,849.7 80.0 2,929.7
Additions to non-current assets
Additions to property, plant and equipment 965.2 889.0 75.1 – 0.5 16.4 1,946.2 55.8 2,002.0
Segment assets and liabilities
Segment assets 6,786.6 5,922.8 1,708.0 – – 2,504.1 16,921.5 412.2 17,333.7
Investment in associates and joint ventures – – – 897.3 – – 897.3 7.3 904.6
Segment liabilities (3,155.0) (1,565.1) (558.1) – – (1,225.8) (6,504.0) (89.9) (6,593.9)
1. EBITDA refers to Earnings Before Interest, Tax, Depreciation and Amortisation. EBITDA is calculated by adding back depreciation, amortisation, profit or loss on disposals and
impairment charges to operating profit. This comprises 100% of the EBITDA from the Group´s subsidiaries, and the Group´s proportional share of the EBITDA of its associates and
joint ventures (Refer to the Alternative Performance Measures section on page 238).
2. Operating cash outflow in the exploration and evaluation segment was $98.3 million.
3. An exceptional gain of $944.7 million has been recognised in respect of the Group’s disposal of its investment in the Tethyan joint venture (see notes 3, 4 and 17)
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/ Notes to the Financial statements continued
6 Segment information continued

Pelambres Centinela Antucoya Zaldívar evaluation2 items Mining division Total
$m $m $m $m $m $m $m $m $m
Revenue 3,621.0 2,981.3 697.8 – – – 7,300.1 170.0 7,470.1
Operating cost excluding depreciation and loss
on disposals (1,095.0) (1,062.0) (360.7) – (103.2) (76.0) (2,696.9) (106.3) (2,803.2)
Depreciation (281.8) (654.7) (98.3) – – (13.0) (1,047.8) (30.9) (1,078.7)
Loss on disposals (3.7) (4.0) (0.5) – – – (8.2) (1.0) (9.2)
Provision against the carrying value of assets4 – – – – (177.6) – (177.6) – (177.6)
Operating profit/(loss) 2,240.5 1,260.6 238.3 – (280.8) (89.0) 3,369.6 31.8 3,401.4
Net share of results from associates and
joint ventures – – – 68.5 – (9.0) 59.5 0.2 59.7
Investment income 1.4 1.5 0.3 – – 1.7 4.9 0.1 5.0
Interest expense (3.5) (16.4) (15.5) – – (27.2) (62.6) (0.8) (63.4)
Other finance items 41.1 26.1 4.9 – – 5.1 77.2 (2.8) 74.4
Profit/(loss) before tax 2,279.5 1,271.8 228.0 68.5 (280.8) (118.4) 3,448.6 28.5 3,477.1
Tax (743.7) (382.0) (7.1) – – (188.3) (1,321.1) (11.8) (1,332.9)
Tax-exceptional items3 – – 90.6 – – – 90.6 – 90.6
Profit/(loss) for the year 1,535.8 889.8 311.5 68.5 (280.8) (306.7) 2,218.1 16.7 2,234.8
Non-controlling interests 607.5 252.2 84.4 – – 0.5 944.6 – 944.6
Profit/(losses) attributable to the owners of
the parent 928.3 637.6 227.1 68.5 (280.8) (307.2) 1,273.5 16.7 1,290.2
EBITDA1 2,526.0 1,919.3 337.1 172.8 (103.2) (84.0) 4,768.0 68.2 4,836.2
Additions to non-current assets
Additions to property, plant and equipment 903.1 826.4 62.7 – 0.6 30.4 1,823.2 32.7 1,855.9
Segment assets and liabilities
Segment assets 5,667.1 5,924.2 1,735.9 – – 2,661.1 15,988.3 384.3 16,372.6
Investment in associates and joint ventures – – – 900.0 – – 900.0 5.8 905.8
Segment liabilities (2,642.0) (1,797.0) (548.7) – – (1,174.5) (6,162.2) (87.2) (6,249.4)
1. EBITDA refers to Earnings Before Interest, Tax, Depreciation and Amortisation. EBITDA is calculated by adding back depreciation, amortisation, profit or loss on disposals and
impairment charges to operating profit. This comprises 100% of the EBITDA from the Group´s subsidiaries, and the Group´s proportional share of the EBITDA of its associates and
joint ventures (Refer to the Alternative Performance Measures section on page 238).
2. Operating cash outflow in the exploration and evaluation segment was $98.0 million.
3. During 2021, there was an exceptional item of $90.6 million which reflects the recognition of a deferred tax asset at Antucoya (see note 4).
4. An impairment has been recognised as at 31 December 2021 in respect of the $177.6 million of intangible assets and property, plant and equipment relating to the Twin Metals project,
presented as an exceptional item.
Notes to segment revenues and results
(i) Inter-segment revenues are eliminated on consolidation. The only inter-segment revenue related to sales from the Transport division to the mining
division of $9.8 million (year ended 31 December 2021 – $8.2 million), has been eliminated and is therefore not reflected in the above figures.
(ii) Revenue includes provisionally priced sales of copper, gold and molybdenum concentrates and copper cathodes. Further details of such
adjustments are given in Note 7.
(iii) For sales of concentrates, which are sold to smelters and roasting plants for further processing into fully refined metal, the price of the
concentrate (which is the amount recorded as revenue) reflects the market value of the fully refined metal less a “treatment and refining charge”
deduction, to reflect the lower value of this partially processed material compared with the fully refined metal. Treatment and refining charges for
copper and molybdenum concentrates are detailed in Note 7.
(iv) The effects of tax and non-controlling interests on the expenses within the Exploration and evaluation segment are allocated to the mine that the
exploration work relates to.
(v) The assets of the Transport division segment include $7.3 million (31 December 2021 – $5.8 million) relating to the Group’s 30% interest in
Antofagasta Terminal International SA (“ATI”), which operates a concession to manage installations in the port of Antofagasta. Further details of
these investments are set out in Note 16.
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198 Antofagasta
B) Entity-wide disclosures
Revenue by product
2022 2021
$m $m
Copper
• Los Pelambres 2,107.7 3,097.0
• Centinela concentrate 1,132.7 1,735.4
• Centinela cathodes 844.4 774.1
• Antucoya 697.5 693.3
Provision of shipping services
• Los Pelambres 51.9 57.8
• Centinela concentrate 58.5 46.8
• Centinela cathodes 6.7 4.3
• Antucoya 6.0 4.5
Gold
Molybdenum
Silver
Total 5,668.6 7,300.1
Transport division 193.4 170.0
5,862.0 7,470.1
Revenue by location of customer

2022 2021
$m $m
Europe
• United Kingdom 71.0 54.4
• Switzerland 753.6 1,303.7
• Spain 1.0 67.6
• Germany 140.0 121.5
• Rest of Europe 96.5 177.4
Latin America
• Chile 369.1 282.0
• Rest of Latin America 179.7 214.7
North America
• United States 312.3 666.5
Asia
• Japan 1,668.6 1,842.3
• China 1,072.0 1,236.9
• Singapore 423.8 726.1
• South Korea 332.2 322.6
• Hong Kong 178.2 217.1
• Rest of Asia 264.0 237.3
5,862.0 7,470.1
Information about major customers

In the year ended 31 December 2022, the Group’s mining revenue included $785.5 million related to one large customer that individually accounted for
more than 10% of the Group’s revenue (year ended 31 December 2021 – one large customer representing $1,015.1 million).
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6 Segment information continued

Non-current assets by location of assets
2021
2022 $m
$m Restated
Chile 12,786.1 11,705.1

Other1 10.1 10.9
12,796.2 11,716.0
1. The comparatives have been restated to show a reclassification of $9.9 million from the “Chile” category to the “Other” category.
2022 2021
$m $m
Non-current assets per the balance sheet 13,016.2 11,872.7
The above amounts by location reflect non-current assets per the balance sheet excluding:
• Deferred tax assets (78.5) (96.8)
• Account receivables (51.0) (51.2)
• Equity investments (90.5) (8.7)
Total of non-current assets above (220.0) (156.7)
Non-current assets by location of asset 12,796.2 11,716.0
7 Group Revenue
Copper and molybdenum concentrate sale contracts and copper cathode sale contracts generally provide for provisional pricing of sales at the time 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 one to four months after shipment to the customer. For sales contracts which contain provisional
pricing mechanisms, the total receivable balance is measured at fair value through profit or loss. Gains and losses from the mark-to-market of open
sales are recognised through adjustments to revenue in the income statement and to trade receivables in the balance sheet. The Group determines
mark-to-market prices using forward prices at each period-end for copper concentrate and cathode sales, and period-end month average prices for
molybdenum concentrate sales due to the absence of a futures market in the market price references for that commodity in the majority of the
Group’s contracts.
With sales of concentrates, which are sold to smelters and roasting plants for further processing into fully refined metal, the price of the concentrate
(which is the amount recorded as revenue) reflects the market value of the fully refined metal less a “treatment and refining charge” deduction, to
reflect the lower value of this partially processed material compared with the fully refined metal.
The shipping service represents a separate performance obligation, and is recognised separately from the sale of the material over time as the shipping
service is provided.
The total revenue from contracts with customers and the impact of provisional pricing adjustments in respect of concentrate and cathode sales is
as follows:
2022 2021
$m $m
Revenue from contracts with customers

Sale of products 5,671.2 6,809.0
Provision of shipping services associated with the sale of products1 123.1 113.4
Transport division2 193.4 170.0
Provisional pricing adjustments in respect of copper, gold and molybdenum (125.7) 377.7
Total revenue 5,862.0 7,470.1
1. The Group sells a significant proportion of its products on Cost, Insurance & Freight (CIF) Incoterms, which means that the Group is responsible for shipping the product to a
destination port specified by the customer.
2. The transport division provides rail and road cargo transport together with a number of ancillary services.
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200 Antofagasta
The categories of revenue which are principally affected by different economic factors are the individual product types. A summary of revenue by
product is set out in Note 6.
The following tables set out the impact of provisional pricing adjustments, derivative commodity instruments and treatment and refining charges for the
more significant products. The revenue from these products, along with the revenue from other products and services, is reconciled to total revenue in
Note 6.
Los Los Los
Pelambres Centinela Centinela Antucoya Pelambres Centinela Pelambres Centinela
Copper Copper Copper Copper Gold in Gold in Molybdenum Molybdenum
concentrate concentrate cathodes cathodes concentrate concentrate concentrate concentrate
$m $m $m $m $m $m $m $m
Provisionally priced sales of products 2,313.7 1,231.8 851.8 710.6 75.1 235.9 281.3 98.5
Revenue from freight services 51.9 58.5 6.7 6.0 – – – –
2,365.6 1,290.3 858.5 716.6 75.1 235.9 281.3 98.5
Effects of pricing adjustments to
previous year invoices
Reversal of mark-to-market adjustments at
the end of the previous year (12.0) (5.2) (0.3) (0.8) – (0.3) 5.6 0.7
Settlement of sales invoiced in the
previous year 10.7 23.3 0.5 1.0 – 3.6 (4.1) (0.6)
Total effect of adjustments to previous
year invoices in the current year (1.3) 18.1 0.2 0.2 – 3.3 1.5 0.1
current year invoices
Settlement of sales invoiced in the current year (155.3) (68.7) (8.4) (14.1) 0.4 (2.9) 16.5 4.0
Mark-to-market adjustments at the end of
the current year 38.0 19.9 0.8 0.8 – 2.7 12.6 7.6
Total effect of adjustments to
current year invoices (117.3) (48.8) (7.6) (13.3) 0.4 (0.2) 29.1 11.6
Total pricing adjustments (118.6) (30.7) (7.4) (13.1) 0.4 3.1 30.6 11.7
Realised losses on commodity derivatives – – – – – – – –
Revenues before deducting treatment and
refining charges 2,247.0 1,259.6 851.1 703.5 75.5 239.0 311.9 110.2
Treatment and refining charges (87.4) (68.4) – – (0.1) (0.6) (20.5) (9.4)
Revenue net of tolling charges 2,159.6 1,191.2 851.1 703.5 75.4 238.4 291.4 100.8
The revenue from the individual products shown in the above table excludes revenue from sales of silver and the transport division, which are
presented in the revenue by product table in note 6 to reconcile to Group Revenue.
With sales of concentrates at Los Pelambres and Centinela, which are sold to smelters and roasting plants for further processing into fully refined metal,
the price of the concentrate invoiced to the customer reflects the market value of the fully refined metal less a “treatment and refining charge”
deduction, to reflect the lower value of this partially processed material compared with the fully refined metal. For accounting purposes, the revenue
amount is the net of the market value of fully refined metal less the treatment and refining charges. Under the standard industry definition of cash costs,
treatment and refining charges are regarded as an expense and part of the total cash cost figure.
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7 Group Revenue continued

Los Los Los
Pelambres Centinela Centinela Antucoya Pelambres Centinela Pelambres Centinela
Copper Copper Copper Copper Gold in Gold in Molybdenum Molybdenum
concentrate concentrate cathodes cathodes concentrate concentrate concentrate concentrate
$m $m $m $m $m $m $m $m
Provisionally priced sales of products 2,966.6 1,685.3 824.3 749.7 93.3 354.8 322.1 38.4
Revenue from freight services 57.8 46.8 4.3 4.5 – – – –
3,024.4 1,732.1 828.6 754.2 93.3 354.8 322.1 38.4
previous year invoices
Reversal of mark-to-market adjustments at
the end of the previous year (58.7) (26.8) 0.1 (0.5) – (0.9) 0.2 (0.3)
Settlement of sales invoiced in the
previous year 175.1 74.7 1.8 1.5 (1.0) (4.0) 6.4 1.2
Total effect of adjustments to previous
year invoices in the current year 116.4 47.9 1.9 1.0 (1.0) (4.9) 6.6 0.9
current year invoices
Settlement of sales invoiced in the current year 92.2 58.8 10.2 6.0 (1.1) (4.1) 30.6 5.8
Mark-to-market adjustments at the end of
the current year 12.0 5.2 0.3 0.8 – 0.4 (5.7) (0.7)
Total effect of adjustments to
current year invoices 104.2 64.0 10.5 6.8 (1.1) (3.7) 24.9 5.1
Total pricing adjustments 220.6 111.9 12.4 7.8 (2.1) (8.6) 31.5 6.0
Realised losses on commodity derivatives – – (62.6) (64.2) – – – –
Revenues before deducting treatment and
refining charges 3,245.0 1,844.0 778.4 697.8 91.2 346.2 353.6 44.4
Treatment and refining charges (90.2) (61.8) – – (0.2) (0.8) (24.4) (7.2)
Revenue net of tolling charges 3,154.8 1,782.2 778.4 697.8 91.0 345.4 329.2 37.2
The revenue from the individual products shown in the above table excludes revenue from sales of silver and the transport division, which are
presented in the revenue by product table in note 6 to reconcile to Group Revenue.
202 Antofagasta
(I) Copper concentrate
The typical period for which sales of copper concentrate remain open until settlement occurs is a range of approximately three to four months from
shipment date.
2022 2021
Sales provisionally priced at the balance sheet date Tonnes 179,000 177,900
Average mark-to-market price $/lb 3.80 4.41
Average provisional invoice price $/lb 3.65 4.37
(II) Copper cathodes

The typical period for which sales of copper cathodes remain open until settlement occurs is approximately one month from shipment date.
2022 2021
(III) Gold in concentrate

The typical period for which sales of gold in concentrate remain open until settlement occurs is approximately one month from shipment date.
2022 2021
Sales provisionally priced at the balance sheet date Ounces 31,000 32,300
Average mark-to-market price $/oz 1,828 1,801
Average provisional invoice price $/oz 1,742 1,791
(IV) Molybdenum concentrate

The typical period for which sales of molybdenum remain open until settlement occurs is approximately two months from shipment date.
2022 2021
As detailed above, the effects of gains and losses from the marking-to-market of open sales are recognised through adjustments to revenue in the
income statement and to trade debtors in the balance sheet. The effect of mark-to-market adjustments on the balance sheet at the end of each period
are as follows:
Effect on debtors of year end mark-
to-market adjustments
2022 2021
$m $m
Los Pelambres – copper concentrate 38.0 12.0

Los Pelambres – molybdenum concentrate 12.6 (5.7)
Centinela – copper concentrate 19.9 5.2
Centinela – molybdenum concentrate 7.6 (0.7)
Centinela – gold in concentrate 2.7 0.4
Centinela – copper cathodes 0.8 0.3
Antucoya – copper cathodes 0.8 0.8
82.4 12.3
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8 Operating Profit From Subsidiaries, and Total Profit From Associates And Joint Ventures
Operating profit from subsidiaries and total profit from operations and associates and joint ventures is derived from Group revenue by deducting
operating costs as follows:
2022 2021
$m $m
Group revenue 5,862.0 7,470.1

Cost of sales (3,432.7) (3,120.2)
Gross profit 2,429.3 4,349.9
Administrative and distribution expenses (558.9) (550.4)
Other operating income 37.9 31.8
Other operating expenses1 (274.0) (429.9)
Operating profit from subsidiaries 1,634.3 3,401.4
Net share of profit of associates and joint ventures 48.1 59.7
Gain on disposal of investment in joint ventures 944.7 –
Total profit from operations, associates and joint ventures 2,627.1 3,461.1
1. Other operating expenses comprise $113.0 million of exploration and evaluation expenditure (2021 – $103.2 million), $19.1 million in respect of the employee severance provision (2021
– $19.8 million), $16.9 million in respect of the closure provision (2021 – $11.3 million), nil in respect of the provision against the carrying value of assets relating to the Twin Metals
project (2021 – $177.6 million) and $125.0 million of other expenses (2021 – $118.0 million).
Profit before tax is stated after (charging)/crediting:
2022 2021
$m $m
Foreign exchange (losses)/gains

• included in net finance costs (12.8) 49.9
Depreciation of property, plant and equipment
• owned assets (1,047.2) (997.1)
• leased assets (93.9) (81.6)
Loss on disposal of property, plant and equipment (2.1) (9.2)
Cost of inventories recognised as an expense (2,381.6) (2,033.0)
Employee benefit expense (476.6) (498.0)
Decommissioning and restoration (operating expenses) (16.9) (11.3)
Severance charges (19.1) (19.8)
Exploration and evaluation expense (113.0) (103.2)
Provision against carrying value of assets1 – (177.6)
Auditors´ remuneration (2.2) (1.9)
1. In 2021 impairment provision recognised in respect of $27.5 million of property, plant and equipment (note 15) and $150.1 million of intangible assets (note 14) relating to the Twin
Metals project.
A more detailed analysis of auditors´ remuneration on a worldwide basis is provided below:
2022 2021
Group $000 $000
Fees payable to the Company´s auditors and its associates for the audit of the Parent Company and consolidated
financial statements 1,312.5 1,242.0
Fees payable to the Company´s auditors and its associates for other services:
• The audit of the Company’s subsidiaries 549.6 415.0
• Audit-related assurance services1 98.0 200.0
• Other assurance services2 241.0 –
2,201.1 1,857.0
1. The audit-related assurance services relate to the half-year review performed by the auditors.
2. The other assurance services in 2022 related to the bond issue in that year, which required the Group to engage PwC to act as the reporting accountant for that transaction, work
which is in effect required to be performed by the Group’s auditors.
Details of the Company’s policy on the use of auditors for non-audit services: the reason why the auditor was used rather than another supplier and
how the auditor’s independence and objectivity was safeguarded are set out in the Audit and Risk Committee report on page 130. No services were
provided pursuant to contingent fee arrangements.
204 Antofagasta
9 Employees
A) Average monthly number of employees
2022 2021
Number Number
Los Pelambres 1,069 959

Centinela 2,408 2,226
Antucoya 852 817
Exploration and evaluation 60 71
Corporate and other employees
• Chile 582 566
• United Kingdom 4 4
• Other 1 4
Mining and Corporate 4,976 4,647
Transport division 1,383 1,336
6,359 5,983
(i) The average number of employees for the year includes all the employees of subsidiaries. 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 and joint ventures.
B) Aggregate remuneration
The aggregate remuneration of the employees included in the table above was as follows:
2022 2021
$m $m
Wages and salaries (448.5) (469.9)

Social security costs (28.1) (28.1)
(476.6) (498.0)
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 Non-Executive) of the Company. Key management personnel who
are not Directors have been identified as responsible senior management at the Corporate Centre and those responsible for the running of the key
business divisions of the Group.
Compensation for key management personnel (including Directors) was as follows:
2022 2021
$m $m
Salaries and short-term employee benefits (25.0) (40.1)

(25.0) (40.1)
Disclosures on Directors’ remuneration required by Schedule 8 of the Large and Medium-sized Companies and Group (Financial Statement)
Regulations 2008, including those specified for audit by that Schedule, are included in the Remuneration report on pages 155 to 162.
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10 Net finance (Expense)/Income

2022 2021
$m $m
Investment income
Gains on liquid investments held at fair value through profit or loss 20.4 1.6
40.2 5.0
Interest expense
(78.6) (63.4)
Other finance items
Unwinding of discount on provisions (16.9) (6.2)
Adjustment to provision discount rates – 30.8
Effects of changes in foreign exchange rates (12.8) 49.9
Preference dividends (0.1) (0.1)
(29.8) 74.4
Net finance (expense)/income (68.2) 16.0
During 2022, amounts capitalised and consequently not included within the above table were as follows: $47.0 million at Los Pelambres (year ended 31
December 2021 – $12.1 million) and $2.0 million at Centinela (year ended 31 December 2021 – $2.1 million).
The interest expense shown above includes $7.1 million in respect of leases (2021 – $7.9 million). The interest paid in respect of leases $6.0 million
(2021 – $6.5 million).
11 Income tax expense

The tax charge for the year comprised the following:
2022 2021
$m $m
Current tax charge

• Corporate tax (principally first category tax in Chile) (340.4) (560.8)
• Mining tax (royalty) (83.9) (250.0)
• Withholding tax (24.5) (224.7)
(448.8) (1,035.5)
Deferred tax charge
• Corporate tax (principally first category tax in Chile) (96.5) (237.4)
• Mining tax (royalty) (9.8) 0.9
• Withholding tax (48.5) 29.7
(154.8) (206.8)
Total tax charge (603.6) (1,242.3)
The rate of first category (ie corporate) tax in Chile is 27.0% (2021 – 27.0%).
In addition to first category tax and the mining tax, the Group incurs withholding taxes on any remittance of profits from Chile. Withholding tax is levied
on remittances of profits from Chile at 35% less first category (ie corporate) tax already paid in respect of the profits to which the remittances relate.
The Group’s mining operations are also subject to a mining tax (royalty). Production from Los Pelambres, Antucoya, Encuentro (oxides), the Tesoro
North East pit and the Run-of-Mine processing at Centinela Cathodes is subject to a rate of between 5–14%, depending on the level of operating profit
margin, and production from Centinela Concentrates and the Tesoro Central and Mirador pits at Centinela Cathodes is subject to a rate of 5% of taxable
operating profit.
The following table provides a numerical reconciliation between the accounting profit before tax multiplied by the applicable statutory tax rate and the
total tax expense (including both current and deferred tax).
206 Antofagasta
Year ended Year ended Year ended Year ended
31 December 2022 31 December 2022 31 December 2021 31 December 2021
Excluding exceptional Including exceptional Excluding exceptional Including exceptional
items items items items
$m % $m % $m % $m %
Profit before tax 1,614.2 2,558.9 3,654.7 3,477.1

Profit before tax multiplied by Chilean corporate tax rate of
27% (435.9) 27.0 (691.0) 27.0 (986.8) 27.0 (938.8) 27.0
Mining tax (royalty) (94.5) 5.8 (94.5) 3.7 (243.8) 6.7 (243.8) 7.0
Deduction of mining tax (royalty) as an allowable expense in
determination of first category tax 23.1 (1.4) 23.1 (0.9) 67.8 (1.9) 67.8 (1.9)
Items not deductible from first category tax (33.9) 2.1 (33.9) 1.3 (31.6) 0.9 (31.6) 0.9
Adjustment in respect of prior years (2.6) 0.1 (2.6) 0.1 (12.1) 0.3 (12.1) 0.3
Withholding tax (73.0) 4.6 (73.0) 2.9 (195.0) 5.3 (195.0) 5.6
Tax effect of share of profit of associates and joint ventures 13.0 (0.8) 13.0 (0.5) 16.1 (0.4) 16.1 (0.5)
Impact of previously unrecognised tax losses on current tax 0.2 – 0.2 – 52.5 (1.4) 52.5 (1.5)
Impact of recognition of previously unrecognised tax losses on
deferred tax – – – – – – 90.6 (2.6)
Provision against carrying value of assets – – – – – – (48.0) 1.4
Gain on disposal of investment in joint venture – – 255.1 (10.0) – – – –
Tax expense and effective tax rate for the year (603.6) 37.4 (603.6) 23.6 (1,332.9) 36.5 (1,242.3) 35.7
The effective tax rate excluding exceptional items of 37.4% varied from the statutory rate principally due to the mining tax (royalty) (net impact of $71.4
million/4.4% including the deduction of the mining tax (royalty) as an allowable expense in the determination of first category tax), the withholding tax
relating to the remittance of profits from Chile (impact of $73.0 million/4.6%), items not deductible for Chilean corporate tax purposes, principally the
funding of expenses outside of Chile (impact of $33.9 million/2.1%), adjustments in respect of prior years (impact of $2.6 million/0.1%) and the impact
of previously unrecognised tax losses (impact of $0.2 million/0%), partly offset by the impact of the recognition of the Group’s share of profit from
associates and joint ventures, which are included in the Group’s profit before tax net of their respective tax charges (impact of $13.0 million/0.8%).
The impact of the exceptional items on the effective tax rate including exceptional items was $255.1 million/10.0%. Further details of the exceptional gain
on the disposal of the Group’s investment in the Tethyan joint venture, including relevant tax aspects, are set out in Note 17.
The main factors which could impact the sustainability of the Group’s existing effective tax rate are:
• In October 2022, the Chilean government announced its updated proposals for a comprehensive reform of the tax system, including proposed
changes to the mining royalty. These proposals are subject to review and approval by the Chilean Congress, and so there is no certainty as to the
exact nature of changes which may finally be enacted into law.
• The level of future distributions made by the Group’s Chilean subsidiaries out of Chile, which could result in increased withholding tax charges.
When determining whether it is likely that distributions will be made in the foreseeable future, and what is the appropriate foreseeable future period
for this purpose, the Group considers factors such as the predictability of the likely future Group dividends, taking into account the Group’s dividend
policy and the level of potential volatility of the Group’s future earnings, as well as the current level of distributable reserves at the Antofagasta plc
entity level.
• The impact of expenses which are not deductible for Chilean first category tax. Some of these expenses are fixed costs, and so the relative impact of
these expenses on the Group’s effective tax rate will vary depending on the Group’s total profit before tax in a particular year.
The implementation of the OECD BEPS Pillar 2, which would introduce a minimum effective tax rate of 15% for multinational companies, will be
applicable to the Group when brought into relevant legislation. The Group’s operations are based in Chile and therefore currently subject to the Chilean
first category (corporate) tax rate of 27%, plus withholding taxes on any remittance of profits from Chile. The Group has been assessing the potential
impact of the draft UK legislation, and will complete that assessment when the legislation has been finalised.
There are no significant tax uncertainties which would require critical judgements, estimates or potential provisions other than deferred tax judgements
and estimates as explained in Note 3B.
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12 Earnings per share

2022 2021
$m $m
Profit for the period attributable to owners of the parent (excluding exceptional items) 588.3 1,404.4
Exceptional Items 944.7 (114.2)
Profit for the period attributable to owners of the parent (including exceptional items) from operations 1,533.0 1,290.2
2022 2021
Number Number
Ordinary shares in issue throughout each year 985,856,695 985,856,695
2022 2021
cents cents
Basic earnings per share (excluding exceptional items) from operations 59.7 142.5
Basic earnings per share (exceptional items) from operations 95.8 (11.6)
Basic earnings per share (including exceptional items) from operations 155.5 130.9
Basic earnings per share are calculated as profit after tax and non-controlling interests, based on 985,856,695 (2021: 985,856,695) 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.
Reconciliation of basic earnings per share from continuing operations:
2022 2021
Profit for the year attributable to owners of the parent $m 1,533.0 1,290.2
Profit from continuing operations attributable to owners of the parent $m 1,533.0 1,290.2
Ordinary shares Number 985,856,695 985,856,695
Basic earnings per share from continuing operations cents 155.5 130.9
13 Dividends
Amounts recognised as distributions to equity holders in the year:
2022 2021
2 02 2 2021 cents cents
$m $m per share per share
Final dividend paid in June (proposed in relation to the previous year)

• Ordinary 1,172.2 478.1 118.9 48.5
Interim dividend paid in September
• Ordinary 90.7 232.7 9.2 23.6
1,262.9 710.8 128.1 72.1
The recommended 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:
2022 2021
2 02 2 2021 cents cents
$m $m per share per share
Final dividend proposed in relation to the year

• Ordinary 497.6 1,172.1 50.5 118.9
Total dividends proposed in relation to 2022 (including the interim dividend) are 59.7 cents per share or $588.3 million (2021 – 142.5 cents per share
or $1,404.8 million).
In accordance with IAS 32, preference dividends have been included within net finance expense (see Note 10) and amounted to $0.1 million (2021 –
$0.1 million).
Further details of the currency election timing and process (including the default currency of payment) are available on the Antofagasta plc website
(www.antofagasta.co.uk) or from the Company’s registrar, Computershare Investor Services PLC on +44 370 702 0159.
Further details relating to dividends for each year are given in the Directors’ Report on page 168.
208 Antofagasta
14 Intangible assets
Accumulated
depreciation
and
Cost impairment Net book value
$m $m $m
At 1 January 2021 150.1 – 150.1

Provision against carrying value – (150.1) (150.1)
At 31 December 2021 150.1 (150.1) –
At 31 December 2022 150.1 (150.1) –
The intangible asset relates to Twin Metals’ mining licences assets (included within the corporate segment). As explained in note 3, a full impairment
provision was recognised in respect of the $150.1 million cost of this asset as at 31 December 2021, as a result of the US federal government’s
cancellation of certain of Twin Metals’ mining leases. Twin Metals believes it has a valid legal right to the mining leases and a strong case to defend its
legal rights. Although the Group is pursuing validation of those rights, considering the time and uncertainty related to any legal action to challenge the
government decisions, a full impairment provision has been recognised in respect of the carrying value of the asset.
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209
15 Property, plant and equipment

Wagons Machinery,
Mining Stripping Buildings and Railway and rolling equipment and Assets under Right-of-
Land properties costs infrastructure track stock others construction use assets Total
$m $m $m $m $m $m $m $m $m $m
Cost
At 1 January 2021 61.9 667.5 2,305.0 5,928.1 108.3 208.0 7,266.9 1,666.6 458.9 18,671.2
Additions – 4.5 502.5 – – – 3.9 1,283.2 61.8 1,855.9
Additions – capitalised depreciation – – 72.0 – – – – – – 72.0
Adjustment to capitalised decommissioning
provisions – – – (119.9) – – – – – (119.9)
Capitalisation of interest – – – – – – – 14.2 – 14.2
Capitalisation of critical spare parts – – – – – – 0.9 – – 0.9
Reclassifications – – – 1.4 14.5 5.8 4.7 (26.6) (2.8) (3.0)
Asset disposals – – – (5.7) – (7.3) (32.0) (8.2) (17.6) (70.8)
At 31 December 2021 61.9 672.0 2,879.5 5,803.9 122.8 206.5 7,244.4 2,929.2 500.3 20,420.5
At 1 January 2022 61.9 672.0 2,879.5 5,803.9 122.8 206.5 7,244.4 2,929.2 500.3 20,420.5
Additions – – 582.5 – – – 2.0 1,366.2 51.3 2,002.0
Additions – capitalised depreciation – – 73.3 – – – – – – 73.3
Adjustment to capitalised decommissioning
provisions – – – 173.8 – – – – – 173.8
Capitalisation of interest – – – – – – – 49.0 – 49.0
Reclassifications – – – 1.4 11.9 1.5 4.1 (15.8) (3.1) –
Asset disposals – – – (0.2) – (0.6) (9.2) (5.9) (17.4) (33.3)
At 31 December 2022 61.9 672.0 3,535.3 5,978.9 134.7 207.4 7,241.3 4,322.7 531.1 22,685.3
Accumulated depreciation and impairment
At 1 January 2021 – (562.1) (1,117.1) (2,613.6) (38.5) (100.8) (4,139.8) – (247.4) (8,819.3)
Charge for the year – (26.0) (255.3) (274.1) (5.9) (17.1) (418.7) – (81.6) (1,078.7)
Depreciation capitalised in inventories – – – – – – 54.1 – – 54.1
Depreciation capitalised in property, plant and
equipment – – – – – – (72.0) – – (72.0)
Reclassifications – – – – – – – – 1.4 1.4
Impairment (25.0) – – (2.2) – – (0.3) – – (27.5)
Asset disposals – – – – – 6.4 36.0 – 17.6 60.0
At 31 December 2021 (25.0) (588.1) (1,372.4) (2,889.9) (44.4) (111.5) (4,540.7) – (310.0) (9,882.0)
At 1 January 2022 (25.0) (588.1) (1,372.4) (2,889.9) (44.4) (111.5) (4,540.7) – (310.0) (9,882.0)
Charge for the year – (60.1) (352.8) (319.3) (7.8) (14.0) (293.2) – (93.9) (1,141.1)
Depreciation capitalised in inventories – – – – – – (71.1) – – (71.1)
Depreciation capitalised in property, plant and
equipment – – – – – – (73.3) – – (73.3)
Asset disposals – – – 0.1 – 0.6 7.6 – 17.4 25.7
At 31 December 2022 (25.0) (648.2) (1,725.2) (3,209.1) (52.2) (124.9) (4,970.7) – (386.5) (11,141.8)
Net book value
At 31 December 2022 36.9 23.8 1,810.1 2,769.8 82.5 82.5 2,270.6 4,322.7 144.6 11,543.5
At 31 December 2021 36.9 83.9 1,507.1 2,914.0 78.4 95.0 2,703.7 2,929.2 190.3 10,538.5
The Group has no (2021 – nil) assets pledged as security against bank loans provided to the Group.
At 31 December 2022, the Group had entered into contractual commitments for the acquisition of property, plant and equipment amounting to $845.1
million (2021 – $599.3 million) of which $445.4 million was related to Los Pelambres and $326.1 million to Centinela.
The average interest rate for the amounts capitalised was 2.8% (2021 – 1.9%).
At 31 December 2022, the net book value of assets capitalised relating to the decommissioning provision was $212.1 million (2021 – $49.7 million).
Depreciation capitalised in property, plant and equipment of $73.3 million related to the depreciation of assets used in mine development (operating
stripping) at Centinela, Los Pelambres and Antucoya (2021 – $72.0 million).
The Right-of-use assets includes office lease, vehicles, machinery and equipment. Expenses related to leases of low-value assets not shown as leases
(included in operating costs) are $25.1 million for 2022 (2021 – $17.8 million).
As explained in note 4, an impairment provision was recognised in 2021 for $27.5 million of property, plant and equipment relating to the Twin
Metals project.
210 Antofagasta
16 Investments in subsidiaries
The 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.
Economic Economic
Country of Country of Registered interest at interest at
incorporation operations office Nature of business 2022 2021
Direct subsidiaries of the Parent Company

Antofagasta Railway Company plc UK Chile 1 Railway 100% 100%
The Andes Trust Limited UK UK 1 Investment 100% 100%
Andean LFMA Investment Limited(i) UK Chile 1 Investment 100% 100%
Andes Re Limited Bermuda Bermuda 4 Insurance 100% 100%
Alfa Estates Limited Jersey Jersey 3 Investment 100% 100%
Indirect subsidiaries of the Parent Company
Minera Los Pelambres SCM Chile Chile 2 Mining 60% 60%
Minera Centinela SCM Chile Chile 2 Mining 70% 70%
Minera Antucoya SCM Chile Chile 2 Mining 70% 70%
Antofagasta Minerals SA Chile Chile 2 Mining 100% 100%
Energía Andina Geothermal SpA Chile Chile 2 Energy 100% 100%
MLP Transmisión SA Chile Chile 2 Energy 100% 100%
Sociedad Contractual Minera El Encierro(ii) Chile Chile 2 Mining 56.54% –
Northern Minerals Investment (Jersey) Limited Jersey Jersey 3 Investment 100% 100%
Northern Metals (UK) Limited UK UK 1 Investment 100% 100%
Northern Minerals Holding Co USA USA 5 Investment 100% 100%
Duluth Metals Limited Canada Canada 7 Investment 100% 100%
Twin Metals (UK) Limited UK UK 1 Investment 100% 100%
Twin Metals (USA) Inc USA USA 6 Investment 100% 100%
Twin Metals Minnesota LLC USA USA 6 Mining 100% 100%
Franconia Minerals (US) LLC USA USA 6 Mining 100% 100%
Duluth Metals Holdings (USA) Inc USA USA 12 Investment 100% 100%
Duluth Exploration (USA) Inc USA USA 13 Investment 100% 100%
DMC LLC (Minnesota) USA USA 12 Investment 100% 100%
DMC (USA) LLC (Delaware) USA USA 12 Investment 100% 100%
DMC (USA) Corporation USA USA 12 Investment 100% 100%
Antofagasta Investment Company Limited UK UK 1 Investment 100% 100%
Minprop Limited Jersey Jersey 3 Mining 100% 100%
Antomin 2 Limited BVI BVI 8 Mining 51% 51%
Antomin Investors Limited BVI BVI 8 Mining 51% 51%
Antofagasta Minerals Australia Pty Limited Australia Australia 9 Mining 100% 100%
Minera Anaconda Peru SA Peru Peru 10 Mining 100% 100%
Los Pelambres Holding Company Limited UK UK 1 Investment 100% 100%
Los Pelambres Investment Company Limited UK UK 1 Investment 100% 100%
Lamborn Land Co USA USA 5 Investment 100% 100%
Anaconda South America Inc USA USA 14 Investment 100% 100%
El Tesoro (SPV Bermuda) Limited Bermuda Bermuda 4 Investment 100% 100%
Antofagasta Minerals Canada Canada Canada 9 Agency 100% 100%
Antofagasta Minerals (Shanghai) Co. Limited China China 15 Agency 100% 100%
Andes Investments Company (Jersey) Limited Jersey Jersey 3 Investment 100% 100%
Bolivian Rail Investors Co Inc USA USA 5 Investment 100% 100%
Inversiones Los Pelambres Chile Limitada Chile Chile 2 Investment 100% 100%
Equatorial Resources SpA Chile Chile 2 Investment 100% 100%
Minera Santa Margarita de Astillas SCM Chile Chile 2 Mining 82.0% 82.0%
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Economic Economic
Country of Country of Registered interest at interest at
incorporation operations office Nature of business 2022 2021
Minera Penacho Blanco SA Chile Chile 2 Mining 66.6% 66.6%

Michilla Costa SpA Chile Chile 2 Logistics 99.9% 99.9%
Minera Pampa Fenix SCM Chile Chile 2 Investment 90.0% 90.0%
Minera Mulpun Limitada Chile Chile 2 Mining 100% 100%
Community
Fundación Minera Los Pelambres Chile Chile 2 development 100% 100%
Inversiones Punta de Rieles Limitada Chile Chile 11 Investment 100% 100%
Ferrocarril Antofagasta a Bolivia Chile Chile 11 Railway 100% 100%
Inversiones Chilean Northern Mines Limitada Chile Chile 11 Investment 100% 100%
The Andes Trust Chile SA Chile Chile 11 Investment 100% 100%
Forestal SA Chile Chile 11 Forestry 100% 100%
Servicios de Transportes Integrados Limitada Chile Chile 11 Road transport 100% 100%
Inversiones Train Limitada Chile Chile 11 Investment 100% 100%
Servicios Logisticos Capricornio Limitada Chile Chile 11 Transport 100% 100%
Embarcadores Limitada Chile Chile 11 Transport 100% 100%
FCAB Ingenieria y Servicios DosLimitada Chile Chile 11 Transport 100% 100%
Inmobiliaria Parque Estación S.A. Chile Chile 11 Real Estates 100% 100%
Emisa Antofagasta SA Chile Chile 11 Transport 100% 100%
(i) Name change from Chilean Northern Mines Limited to Andean LFMA Investment Limited
(ii) Sociedad Contractual Minera El Encierro is a newly incorporated Group entity
Registered offices:
1 103 Mount Street, London, W1K 2TJ, UK
2 Avenida Apoquindo N° 4001, Piso 18, Las Condes, Santiago, Chile
3 22 Grenville Street, St Helier, Jersey, JE4 8PX3, Channel Islands
4 Crawford House, 50 Cedar Avenue, Hamilton HM 11, Bermuda
5 1209 Orange Street, Wilmington, DE 19801, USA
6 6040 Earle Brown Drive, 480 Brooklyn Center, MN 55430, USA
7 161 Bay Street, Suite 4320, Toronto, Ontario, M5J 2S1, Canada
8 PO Box 958, Road Town, Tortola VG1110, British Virgin Islands
9 Riparian Plaza, Level 28, 71 Eagle Street, Brisbane, Qld 4001, Australia
10 Avenida Paseo de la Republica Nº 3245 Piso 3, Lima, Peru
11 Simon Bolivar 255, Antofagasta, Chile
12 6041 Earle Brown Drive, 480 Brooklyn Center, MN 55430, USA
13 1010 Dale Street N, St Paul, MN 55117-5603, USA
14 2711 Centerville Road, Suite 400, Wilmington, DE 19808, USA
15 Unit 3309, IFC 2, 8 Century Avenue, Shanghai, China
With the exception of the Antofagasta Railway Company plc, all of the above Group companies have only one class of ordinary share capital in issue.
The Antofagasta Railway Company plc has ordinary and preference share capital in issue, with the ordinary share capital representing 76% of the
Company’s total share capital, and the preference share capital representing 24%. Antofagasta plc holds 100% of both the ordinary and
preference shares.
The proportion of voting rights is proportional to the economic interest for the companies listed above.
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212 Antofagasta
17 Disposal of investment in Tethyan joint venture
On 15 December 2022, Antofagasta entered into definitive agreements to exit its interest in the Tethyan joint venture. As a result of those agreements:
• the Reko Diq project in Pakistan (the “Project”) was reconstituted in Reko Diq Mining Company (Private Limited) ("RDMC"). RDMC is the Pakistani
registered subsidiary of Tethyan Copper Company Pty Limited ("TCC"), which is itself the Australian registered subsidiary of Atacama Copper Pty
Limited (“Atacama”), the joint venture company registered in Australia and owned equally by the Company and Barrick Gold Corporation ("Barrick");
• a consortium of various Pakistani state-owned enterprises acquired shares in RDMC which holds the Project (the "Sale"); and
• as the International Centre for Settlement of Investment Disputes ("ICSID") award (to TCC) was resolved by reconstituting the Project, TCC no longer
has any rights or claims against the Governments of Pakistan and Balochistan arising from the suspension of the Project in 2011.
The proceeds of the Sale which, together with accrued interest up to 15 December 2022 totalled US$946.0 million, are currently held by Atacama in a
segregated interest-bearing account. Antofagasta and Barrick have agreed that the proceeds of this account, including all further interest received, less
any Australian tax arising, will be distributed to the Antofagasta Group during 2023, on a date to be determined by Antofagasta. Atacama is seeking a
binding private ruling to confirm that the Sale proceeds and their distribution to the Antofagasta Group will not be subject to Australian tax. The
Australian corporate tax rate is 30%. Although Antofagasta will retain its shareholding in Atacama until the proceeds have been distributed, it no longer
has any appointees on the board of the joint venture, is not entitled to exercise voting rights in Atacama, and is not required to provide any funding to, or
permitted to receive any distributions from, Atacama other than the Sale proceeds. Antofagasta has therefore ceased to have an economic interest in
Atacama and its subsidiaries as of 15 December 2022 other than being entitled from that date to receive an amount equal to the Sale proceeds and
related interest less any Australian tax arising (whether before or after the distribution). Accordingly, Antofagasta has recognised a gain on disposal of
its investment in the joint venture as at 15 December 2022 of $944.7 million, reflecting the Sale proceeds and related interest, working capital and other
adjustments and the carrying value of the investment at that date. A receivable balance of $943.3 million in respect of the estimated proceeds due to
Antofagasta has been recognised within Trade and other receivables in the balance sheet.
18 Investment in associates and joint ventures

Minera Tethyan
ATI (i) Zaldívar (ii) Copper (iii) Total
2022 2022 2022 2022
$m $m $m $m
Balance at the beginning of the year 5.8 900.0 – 905.8

Obligations on behalf of JV and associates at the beginning of the year – – (0.6) (0.6)
Share of profit/(loss) before tax 2.0 69.3 (0.7) 70.6
Share of tax (0.5) (22.0) – (22.5)
Share of profit/(loss) from JV and associates 1.5 47.3 (0.7) 48.1
Dividends receivable – (50.0) – (50.0)
Disposal of investment in JV – – 1.3 1.3
Balance at the end of the year 7.3 897.3 – 904.6
Obligations on behalf of JV and associates at the end of the year – – – –
Minera Tethyan
ATI (i) Zaldívar (ii) Copper (iii) Total
2021 2021 2021 2021
$m $m $m $m
Balance at the beginning of the year 5.6 909.0 – 914.6

Obligations on behalf of JV and associates at the beginning of the year – – (1.1) (1.1)
Capital contribution – – 9.5 9.5
Share of profit/(loss) before tax 0.2 99.0 (9.0) 90.2
Share of tax – (30.5) – (30.5)
Share of profit/(loss) from JV and associates 0.2 68.5 (9.0) 59.7
Dividends receivable – (77.5) – (77.5)
Balance at the end of the year 5.8 900.0 – 905.8
Obligations on behalf of JV and associates at the end of the year – – (0.6) (0.6)
The investments, which are included in the $904.6 million balances at 31 December 2022, are set out below:
Investment in associates
(i) The Group’s 30% interest in Antofagasta Terminal Internacional (“ATI”), which operates a concession to manage installations in the port
of Antofagasta.
Investment in joint ventures
(ii) The Group’s 50% interest in Minera Zaldívar SpA (“Zaldívar”).
(iii) The Group had a 50% interest in Tethyan Copper Company Limited (“Tethyan”), which was a joint venture with Barrick Gold Corporation in
respect of the Reko Diq project in the Islamic Republic of Pakistan (“Pakistan”). As explained in Note 17, on 15 December 2022 Antofagasta
entered into definitive agreements to exit its interest in the Tethyan joint venture and is therefore no longer recognised as a joint venture by
the Group.
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18 Investment in associates and joint ventures continued

As the net carrying value of the interest in Tethyan was negative, it was included within non-current liabilities, as the Group was liable for its share of
the joint venture’s obligations.
Summarised financial information for the associates is as follows:
ATI ATI
2022 2021
$m $m
Cash and cash equivalents 0.4 1.2

Current assets 18.2 13.7
Non-current assets 91.8 99.3
Current liabilities (19.3) (22.5)
Non-current liabilities (69.5) (75.0)
Revenue 55.2 47.2
Profit from continuing operations 5.1 1.3
Total comprehensive income 5.1 1.3
Summarised financial information for the joint ventures is as follows:

Minera
Zaldívar Total
2022 2022
$m $m

Current assets 1
661.8 661.8
Non-current assets 1,658.6 1,658.6
Current financial liabilities (excluding trade, other payables and provisions) (53.2) (53.2)
Current liabilities (159.3) (159.3)
Non-current financial liabilities (excluding trade, other payables and provisions) (68.3) (68.3)
Non-current liabilities (203.3) (203.3)
Revenue 783.4 783.4
Depreciation and amortisation (149.2) (149.2)
Income tax expense (43.9) (43.9)
Profit/(loss) after tax from continuing operations 94.6 94.6
Total comprehensive income/(expense) 94.6 94.6
1. The current assets include cash and cash equivalents
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214 Antofagasta
Tethyan Minera
Copper Zaldívar Total
2021 2021 2021
$m $m $m
Cash and cash equivalents 3.6 46.4 50.0

Current assets1 3.6 664.0 667.6
Non-current assets – 1,675.1 1,675.1
Current financial liabilities (excluding trade, other payables and provisions) – (54.3) (54.3)
Current liabilities (5.1) (170.2) (175.3)
Non-current financial liabilities (excluding trade, other payables and provisions) – (124.4) (124.4)
Non-current liabilities (0.1) (155.1) (155.2)
Revenue – 849.2 849.2
Depreciation and amortisation (3.0) (160.4) (163.4)
Interest income 2.0 0.3 2.3
Interest expense – (0.5) (0.5)
Income tax expense – (62.1) (62.1)
Loss/(profit) after tax from continuing operations (18.0) 137.1 119.1
Total comprehensive (expense)/income (18.0) 137.1 119.1
1. The current assets include cash and cash equivalents
The above summarised financial information is based on the amounts included in the IFRS financial statements of the associate or joint venture (100%
of the results or balances of the associate or joint venture, rather than the Group’s proportionate share), after the Group’s fair value adjustments and
applying the Group’s accounting policies.
19 Equity investments
2022 2021
$m $m
Balance at the beginning of the year 8.7 11.1

Acquisition 66.5 –
Movement in fair value 15.8 (2.1)
Foreign currency exchange differences (0.5) (0.3)
Balance at the end of the year 90.5 8.7
Equity investments represent those investments which are not subsidiaries, associates or joint ventures and are not held for trading purposes. The fair
value of all equity investments are based on quoted market prices.
20 Inventories
2022 2021
$m $m
Current
Raw materials and consumables 221.4 155.6
Work-in-progress 404.9 316.5
Finished goods 81.8 60.7
708.1 532.8
Non-current
Work-in-progress 347.0 270.4
Total 1,055.1 803.2
During 2022, no net realisable value (“NRV”) adjustment has been recognised (2021 – nil). Non-current work-in-progress represents inventory
expected to be processed more than 12 months after the balance sheet date.
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21 Trade and other receivables

Trade and other receivables do not generally carry any interest, are principally short term in nature and are normally stated at their nominal value less
any impairment.
Due in one year Due after one year Total
2022 2021 2022 2021 2022 2021
$m $m $m $m $m $m
Trade receivables 997.1 1,040.0 – – 997.1 1,040.0

Other receivables1 1,090.1 106.1 51.0 51.2 1,141.1 157.3
2,087.2 1,146.1 51.0 51.2 2,138.2 1,197.3
1. At 31 December 2022, the Other receivables balance includes the proceeds receivable in respect of the Group’s disposal of its investment in the Tethyan joint venture. As detailed in
Note 17, the proceeds are currently held by Atacama in a segregated interest-bearing account with an A+ rated bank.
The largest balances of trade receivables are with equity participants in the key mining projects. Many other significant trade receivables are secured by
letters of credit or other forms of security. There is no material element which is interest-bearing, other than the Tethyan receivable noted above. Trade
receivables include mark-to-market adjustments in respect of provisionally priced sales of copper and molybdenum concentrates which remain open as
to final pricing. Further details of such adjustments are given in Note 7. Other receivables include employee loans of $49.3 million (31 December 2021 –
$42.9 million).
Movements in the expected credit loss provision were as follows:
2022 2021
$m $m
Balance at the beginning of the year (1.2) (1.5)

Utilised in year 0.2 0.1
Foreign currency exchange difference – 0.2
Balance at the end of the year (1.0) (1.2)
The ageing analysis of the trade and other receivables balance is as follows:
Total excluding
Up to More than expected Expected
3 months 3-6 months 6 months credit loss credit loss
Up to date past due past due past due provision provision Total
$m $m $m $m $m $m $m
2022 2,098.8 36.8 1.2 2.4 2,139.2 (1.0) 2,138.2

2021 1,187.1 8.4 0.3 2.7 1,198.5 (1.2) 1,197.3
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 the Group’s maximum exposure to credit risk.
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216 Antofagasta
22 Cash and cash equivalents, and liquid investments
The fair value of cash and cash equivalents, and liquid investments is 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 credit rating agencies.
Cash and cash equivalents, and liquid investments comprised:
2022 2021
$m $m

Liquid investments 1,580.8 2,969.7
2,391.2 3,713.1
At 31 December 2022 and 2021 there is no cash which is subject to restriction.

The denomination of cash, cash equivalents and liquid investments was as follows:
2022 2021
$m $m
US dollars 2,371.1 3,673.8

Chilean pesos 18.8 37.8
Sterling 1.0 1.2
Other 0.3 0.3
2,391.2 3,713.1
The credit quality of cash, cash equivalents and liquid investments are as follow:
2022 2021
$m $m
AAA 1,476.7 1,772.4

AA+ – 2.2
AA – 54.4
AA- 36.5 121.1
A+ 303.0 799.5
A 484.1 904.0
Subtotal 2,300.3 3,653.6
Cash at bank1 90.9 59.5
Total cash, cash equivalents and liquid investments 2,391.2 3,713.1
1. Cash at bank is held with investment grade financial institutions.
There have been no impairments recognised in respect of cash or cash equivalents in the year ended 31 December 2022 (31 December 2021 – nil).
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23 Borrowings and other financial liabilities

A) Analysis by type of borrowing and other financial liabilities
Borrowings and other financial liabilities may be analysed by business segment and type as follows:
2022 2021
Note $m $m
Los Pelambres
• Senior loan (i) (1,470.5) (1,188.3)
• Leases (55.3) (54.8)
Centinela
• Senior loan (ii) (276.7) (386.8)
• Leases (35.2) (59.8)
Antucoya
• Senior loan (iii) (223.5) (196.3)
• Subordinated debt (iv) (171.5) (184.5)
• Short-term loan – (35.0)
• Leases (v) (16.5) (23.4)
Corporate and other items
• Senior loan (vi) – (497.3)
• Bond (vii) (985.3) (496.1)
• Leases (viii) (23.1) (20.4)
Transport division
• Senior loan (ix) (15.3) (25.8)
• Leases (1.6) (1.4)
Preference shares (ix) (2.5) (2.7)
Total (3,277.0) (3,172.6)
(i) The senior loan at Los Pelambres represents a $1,491 million US dollar denominated syndicated loan divided in three tranches. The first tranche
has a remaining duration of 3 years and an interest rate of US LIBOR six-month rate plus 1.05%. The second tranche has a remaining duration of
6 years and an interest rate of US LIBOR six-month rate plus 0.85%. The third tranche has a remaining duration of 5.5 years and an interest rate
of US LIBOR six-month rate plus 1.10%. The loans are subject to financial covenants which require that specified net debt to EBITDA and EBITDA
to finance expense ratios are maintained.
(ii) The senior loan at Centinela represents a US dollar denominated syndicated loan with an amount outstanding of $278 million with a duration of 3
years and an interest rate of US LIBOR six-month rate plus 0.95%. The loan is subject to financial covenants which require that specified net debt
to EBITDA and EBITDA to finance expense ratios are maintained.
(iii) The senior loan at Antucoya represents a US dollar denominated syndicated loan with an amount outstanding of $225 million. This loan has a
remaining duration of 4 years and has an interest rate of Term SOFR six-month rate plus 1.40%. The loan is subject to financial covenants which
require that specified net debt to EBITDA and EBITDA to finance expense ratios are maintained.
(iv) The subordinated debt at Antucoya is US dollar denominated, provided to Antucoya by Marubeni Corporate with a remaining duration of 4 years
and an interest rate of US LIBOR six-month rate plus 3.65%. Subordinated debt provided by Group companies to Antucoya has been eliminated
on consolidation.
(v) The finance leases at Antucoya are denominated in US dollars with an average interest rate of US LIBOR six-month rate plus 2.0% and a
remaining duration of 1.5 years.
(vi) During the year ended 31 December 2022, Antofagasta plc made a $500 million repayment of the senior loan.
(vii) The bonds at Corporate reflect two corporate bonds – a $500 million 2.375% corporate bond due in 2030 and a $500 million 5.625% corporate
bond due in 2032.
(viii) Finance leases at Corporate and other items are denominated in Unidades de Fomento (ie inflation-linked Chilean pesos) and have a remaining
duration of 4 years and are at fixed rates with an average interest rate of 5.2%.
(ix) The long-term loans at the Transport division are US dollar denominated, with an outstanding amount of $15 million and a remaining duration of 1
year and an interest rate of US LIBOR six-month rate plus 1.06%.
(x) The preference shares are Sterling-denominated and issued by Antofagasta plc. There are 2 million shares of £1 each authorised, issued and fully
paid. The preference shares are non-redeemable and are entitled to a fixed cumulative dividend of 5% per annum. On winding up 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.
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218 Antofagasta
B) Leases
Information in respect of the Group’s leases is contained in the following notes:
• Note 15 – depreciation charges, additions and disposals in respect of the right of use assets relating to the leases
• Note 32 B) – repayments of the lease balances and new lease liabilities arising during the period
• Note 10 – interest expense in respect of the lease balances
• Note 10 – cash paid relating to interest on lease
C) Analysis of borrowings and other financial liabilities by currency
The exposure of the Group’s borrowings to currency risk is as follows:
Chilean 2022
pesos Sterling US dollars Total
At 31 December 2022 $m $m $m $m
Corporate loans (0.3) – (1,985.7) (1,986.0)

Bond – – (985.3) (985.3)
Other loans (including short-term loans) – – (171.5) (171.5)
Leases (115.1) (3.9) (12.7) (131.7)
Preference shares – (2.5) – (2.5)
(115.4) (6.4) (3,155.2) (3,277.0)
Chilean 2021
pesos Sterling US dollars Total
At 31 December 2021 $m $m $m $m
Corporate loans - - (2,294.5) (2,294.5)

Bond - - (496.1) (496.1)
Other loans (including short-term loans) - - (219.5) (219.5)
Leases (113.5) (4.3) (42.0) (159.8)
Preference shares - (2.7) - (2.7)
(113.5) (7.0) (3,052.1) (3,172.6)
D) Analysis of borrowings and other financial liabilities by type of interest rate

The exposure of the Group’s borrowings to interest rate risk is as follows:
2022
Fixed Floating Total
At 31 December 2022 $m $m $m
Corporate loans (15.5) (1,970.5) (1,986.0)

Bond (985.3) – (985.3)
Other loans (including short-term loans) – (171.5) (171.5)
Leases (125.7) (6.0) (131.7)
Preference shares (2.5) – (2.5)
(1,129.0) (2,148.0) (3,277.0)
2021
Fixed Floating Total
At 31 December 2021 $m $m $m
Corporate loans – (2,294.5) (2,294.5)

Bond (496.1) – (496.1)
Other loans (including short-term loans) – (219.5) (219.5)
Leases (143.9) (15.9) (159.8)
Preference shares (2.7) – (2.7)
(642.7) (2,529.9) (3,172.6)
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219
23 Borrowings and other financial liabilities continued

E) Maturity profile
The maturity profile of the Group’s borrowings is as follows:
Within Between Between After 2022
1 year 1-2 years 2-5 years 5 years Total
At 31 December 2022 $m $m $m $m $m
Corporate loans (377.4) (531.7) (927.7) (149.2) (1986.0)

Bond – – – (985.3) (985.3)
Other loans – – (171.5) – (171.5)
Leases (55.1) (39.5) (35.9) (1.2) (131.7)
Preference shares – – – (2.5) (2.5)
(432.5) (571.2) (1,135.1) (1,138.2) (3.277.0)
Within Between Between After 2021

Corporate loans (233.0) (367.0) (1,526.7) (167.8) (2,294.5)

Bond – – – (496.1) (496.1)
Other loans (35.0) – (184.5) – (219.5)
Leases (69.9) (38.2) (51.7) – (159.8)
Preference shares – – – (2.7) (2.7)
(337.9) (405.2) (1,762.9) (666.6) (3,172.6)
The amounts included above for leases are based on the present value of minimum lease payments.
The total minimum lease payments for these leases may be analysed as follows:
2022 2021
$m $m
Within 1 year (62.1) (74.7)

Between 1 – 2 years (40.1) (40.5)
Between 2 – 5 years (37.6) (54.8)
After 5 years (1.3) -
Total minimum lease payments (141.1) (170.0)
Less amounts representing finance charges 9.4 10.2
Present value of minimum lease payments (131.7) (159.8)
All leases are on a fixed payment basis and no arrangements have been entered into for contingent rental payments.
F) Financing Facilities
On 30 December, 2022, Antofagasta plc agreed a revolving credit facility “RCF” of $500 million. This revolving credit facility has a term of three years,
which expires on 30 December, 2025.
The facility remained undrawn throughout 2022.
Facility available Drawn Undrawn
2022 2021 2022 2021 2022 2021
$m $m $m $m $m $m
Revolving credit facility (500.0) – – – (500.0) –

(500.0) – – – (500.0) –
24 Trade and other payables

Due in one year Due after one year Total
2022 2021 2022 2021 2022 2021
$m $m $m $m $m $m
Trade creditors (751.5) (579.5) – – (751.5) (579.5)

Other creditors and accruals (328.2) (249.6) (8.0) (16.8) (336.2) (266.4)
(1,079.7) (829.1) (8.0) (16.8) (1,087.7) (845.9)
Trade creditors and accruals principally comprise amounts outstanding for trade purchases and ongoing costs. Other creditors are mainly related to
property plant and equipment payables, finance interest and employee retentions.
The average credit period taken for trade purchases is 18 days (2021 – 20 days).
220 Antofagasta
25 Financial instruments and financial risk management
A) Categories of financial instruments
The carrying value of financial assets and financial liabilities is shown below:
2022
$m
At fair value
At fair value through other
through profit comprehensive Held at
and loss income amortised cost Total
Financial assets
Equity investments – 90.5 – 90.5
Trade and other receivables 897.2 – 1,047.5 1,944.7
Cash and cash equivalents 8.5 – 801.9 810.4
Liquid investments 1,580.8 – – 1,580.8
2,486.5 90.5 1,849.4 4,426.4
Financial liabilities
Borrowings and leases – – (3,277.0) (3,277.0)
Trade and other payables – – (1,067.3) (1,067.3)
– – (4,344.3) (4,344.3)
2021
$m
At fair value
At fair value through other
through profit comprehensive Held at amortised
and loss income cost Total
Financial assets
Equity investments – 8.7 – 8.7
Trade and other receivables 1,011.7 – 83.3 1,095.0
Cash and cash equivalents – – 743.4 743.4
Liquid investments 2,969.7 – – 2,969.7
3,981.4 8.7 826.7 4,816.8
Trade and other payables – – (835.6) (835.6)
Borrowings and leases – – (3,172.6) (3,172.6)
– – (4,008.2) (4,008.2)
The fair value of the fixed rate bonds included within the “Borrowings and leases” category was $899.4 million at 31 December 2022 compared with its
carrying value of $985.3 million. The fair value of all other financial assets and financial liabilities carried at amortised cost approximates the carrying
value presented above.
The Group has the following financial instruments:
2022 2021
$m $m
Financial assets
Trade and other receivables (non-current) per balance sheet 51.0 51.2
Trade and other receivables (current) per balance sheet 2,087.2 1,146.1
Total trade and other receivables per balance sheet 2,138.2 1,197.3
Less: non-financial assets (including prepayments and VAT receivables) (193.5) (102.3)
Total trade and other receivables (financial assets) 1,944.7 1,095.0
Trade and other payables (current) per balance sheet (1,079.7) (829.1)
Trade and other payables (non-current) per balance sheet (8.0) (16.8)
Total trade and other payables per balance sheet (1,087.7) (845.9)
Less: non-financial liabilities (including VAT payables) 20.4 10.3
Total trade and other payables (financial liabilities) (1,067.3) (835.6)
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25 Financial instruments and financial risk management continued

B) Fair value of financial instruments
An analysis of financial assets and financial liabilities measured at fair value is presented below:
Total
Level 1 Level 2 Level 3 2022
$m $m $m $m
Financial assets
Equity investments (a) 90.5 – – 90.5
Trade and other receivables (b) – 897.2 – 897.2
Cash and cash equivalents (c) 8.5 8.5
Liquid investment (d) – 1,580.8 – 1,580.8
99.0 2,478.0 – 2,577.0
Total
Level 1 Level 2 Level 3 2021
$m $m $m $m
Financial assets
Equity investments (a) 8.7 – – 8.7
Trade and other receivables (b) – 1,011.7 – 1,011.7
Liquid investment (d) – 2,969.7 – 2,969.7
8.7 3,981.4 – 3,990.1
Recurring fair value measurements are those that are required in the balance sheet at the end of each reporting year.
a) Equity investments are investments in shares on active markets and are valued using unadjusted quoted market values of the shares at the
financial reporting date. These are level 1 inputs as described below.
b) Provisionally priced metal sales for the period are marked-to-market at the end of the period. Gains and losses from the marking-to-market of
open sales are recognised through adjustments to revenue in the income statement and trade receivables in the balance sheet. Forward prices at
the end of the period are used for copper sales while period-end average prices are used for molybdenum concentrate sales. These are level 2
inputs as described below.
c) The element of cash and cash equivalents measured at fair value relates to money market funds, which are valued reflecting market prices at the
period end. These are level 1 inputs as described below.
d) Liquid investments are highly liquid current asset investments that are valued reflecting market prices at the period end. These are level 2 inputs
as described below.
The inputs to the valuation techniques described above are categorised into three levels, giving the highest priority to unadjusted quoted prices in active
markets (level 1) and the lowest priority to unobservable inputs (level 3 inputs):
• Level 1 fair value measurement inputs are unadjusted quoted prices in active markets for identical assets or liabilities.
• Level 2 fair value measurement inputs are derived from inputs other than quoted market prices included in level 1 that are observable for the asset or
liability, either directly or indirectly.
• Level 3 fair value measurement inputs are unobservable inputs for the asset or liability.
The degree to which inputs into the valuation techniques used to measure the financial assets and liabilities are observable and the significance of these
inputs in the valuation are considered in determining whether any transfers between levels have occurred. In the year ended 31 December 2022, there
were no transfers between levels in the hierarchy.
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 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 Board of Directors is responsible for overseeing the Group’s risk management framework. The Audit and Risk Committee assists the Board with its
review of the effectiveness of the risk management process, and monitoring of key risks and mitigations. The Internal Audit department undertakes both
regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the Audit and Risk Committee.
(I) Commodity price risk
The Group generally sells its copper and molybdenum concentrate and copper cathode output at prevailing market prices, subject to final pricing
adjustments which normally range from one to four months 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 2022, sales of copper and
molybdenum concentrate and copper cathodes represented 90.4% of Group revenue and therefore revenues and earnings depend significantly on LME
and realised copper prices.
The Group periodically uses futures and min-max 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 7.
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 market price as at the reporting date will affect the final pricing adjustment to sales that remain open at that date, impacting
the trade receivables balance and consequently the income statement. A movement in the copper market price will also affect the valuation of
222 Antofagasta
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 market price as at the reporting date had increased by 10 c/lb, profit attributable to the owners of the parent would have increased by
$19.8 million (2021 – increase by $18.4 million).
• If the copper market price as at the reporting date had decreased by 10 c/lb, profit attributable to the owners of the parent would have decreased by
$19.8 million (2021 – decrease by $18.4 million). In addition, a movement in the average copper price during the year would impact revenue and
earnings. A 10 c/lb change in the average copper price during the year would have affected profit attributable to the owners of the parent by $58.7
million (2021 – $64.8 million) and earnings per share by 6.0 cents (2021 – 6.6 cents), based on production volumes in 2022, without taking into
account the effects of provisional pricing. A $1 /lb change in the average molybdenum price for the year would have affected profit attributable to the
owners of the parent by $9.5 million (2021 – $9.2 million), and earnings per share by 1.0 cents (2021 – 0.9 cents), based on production volumes in
2022, and without taking into account the effects of provisional pricing. A $100 /oz change in the average gold price for the year would have affected
profit attributable to the owners of the parent by $11.6 million (2021 – $11.5 million), and earnings per share by 1.2 cents (2021 – 1.2 cents), based on
production volumes in 2022, and without taking into account the effects of provisional pricing.
(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 goods 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 short-term operating 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 25(D).
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(C). The effects of exchange gains and losses included in the income statement are given in Note 10. Exchange
differences on translation of the net assets of entities with a functional currency other than the US dollar are taken to the currency translation reserve
and are disclosed in the Consolidated Statement of Changes in Equity on page 182.
Currency sensitivity
The sensitivity analysis below shows the impact of a movement in the US dollar/Chilean 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, cash equivalents, liquid investments,
trade receivables, trade payables 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 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, profit attributable to the owners of the parent would have
increased by $19.1 million (2021 – increase of $6.1 million). If the US dollar had weakened by 10% against the Chilean peso as at the reporting date,
profit attributable to the owners of the parent would have decreased by $23.3 million (2021 – decrease of $7.4 million).
(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 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 23(D).
The 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 reflects the impact on annual interest expense in respect of the floating rate borrowings held as at the reporting date, and the
impact on annual interest income in respect of cash and cash equivalents held as at the reporting date. 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, profit attributable to the owners of the parent would
have decreased by $3.3 million (2021 – decrease of $6.4 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 equity investments.
Equity price sensitivity
The sensitivity analysis below shows the impact of a movement in the equity values of the equity investment financial assets held as at the reporting date.
If the value of the equity investments had increased by 10% as at the reporting date, equity would have increased by $9.1 million (2021 – increase of
$0.9 million). There would have been no impact on the income statement.
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25 Financial instruments and financial risk management continued

(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 operating factors and input costs. To reduce the risk of potential short-term disruptions to the supply of key inputs such as
electricity and sulphuric acid, the Group enters into medium and long-term supply contracts to help ensure continuity of supply. Long-term electricity
supply contracts are in place at each of the Group’s mines, in most cases linking the cost of electricity under the contract to the current cost of
electricity on the Chilean grid or the generation cost of the supplier. The Group seeks to lock in supply of sulphuric acid for future periods of a year or
longer, with contract prices agreed in the latter part of the year, to be applied to purchases of acid in the following year. Further information on
production and sales levels and operating costs are given in the Operating review on pages 76 to 93.
(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 financial institutions with high credit ratings assigned by international credit agencies.
The largest balances of trade receivables are with equity participants in the key mining projects. Many other significant trade receivables are secured by
letters of credit or other forms of security. 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. The main customers are recurrent with a good credit history during the
years they have been customers.
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 (Note 21).
The Group has recognised an expected credit loss provision for its employee receivables, with the main inputs into the provision calculation being the
average level of staff turnover and the average level of recovery of receivables from former employees. For the reasons set out above, the expected
credit loss risk for other trade and other receivable balances is considered to be immaterial to the Group.
(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.
At the end of 2022, the Group was in a net debt position (2021 – net cash position), as disclosed in Note 32(C). 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(E). 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.
Less than Between Between After 2022
Corporate loans (475.7) (609.4) (1,017.8) (163.3) (2,266.2)

Other loans (including short-term loans and bond) (60.5) (40.0) (290.8) (1,176.3) (1,567.6)
Leases (62.1) (40.4) (37.9) (1.3) (141.7)
Preference shares* (0.1) (0.1) (0.3) (2.5) (3.0)
Trade and other payables (1,079.8) (4.0) (3.9) – (1,087.7)
(1,678.2) (693.9) (1,350.7) (1,343.4) (5,066.2)
Less than Between Between After 2021

Corporate loans (267.1) (398.5) (1,574.8) (170.6) (2,411.0)

Other loans (including short-term loans and bond) (47.0) (11.9) (242.7) (555.5) (857.1)
Leases (74.7) (40.5) (54.5) – (169.7)
Preference shares* (0.1) (0.1) (0.3) (2.7) (3.2)
Trade and other payables (829.1) (16.8) – – (845.9)
(1,218.0) (467.8) (1,872.3) (728.8) (4,286.9)
* The preference shares pay an annual dividend of £100,000 in perpetuity, and accordingly it is not possible to determine total amounts payable for periods without a fixed end date.
224 Antofagasta
(VIII) Capital risk management
The Group’s objectives are to return capital to shareholders while leaving the Group with sufficient funds to progress its short, medium and long-term
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/debt (defined as cash, cash equivalents and liquid investments less borrowings) which was net
debt of $885.8 million at 31 December 2022 (2021 – net cash $540.5 million), as well as gross cash (defined as cash, cash equivalents and liquid
investments) which was $2,391.2 million at 31 December 2022 (2021 – $3,713.1 million). The Group’s total cash is held in a combination of on demand
and term deposits and managed funds investing in high quality, fixed income instruments. The managed funds are held primarily for investment
purposes rather than meeting short-term cash commitments and accordingly these amounts are presented as liquid investments; however they are
included in net cash for monitoring and decision-making 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 case-by-case basis.
Under the terms of the major borrowing facilities, the Group is required to comply with the following financial covenants:
1) Net Financial Debt/EBITDA
2) EBITDA/Interest Expense
3) Total Indebtedness/Tangible Net Worth (being the net asset value less any intangible asset value)
The Group has complied with these covenants throughout the reporting period.
D) 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 IFRS 9 “Financial Instruments”. 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 recognised within other comprehensive income. 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. All derivatives were closed in 2021 and there are none entered into in 2022.
26 Long-term incentive plan

The long-term incentive plan (the “Plan”) forms part of the remuneration of senior managers in the Group. Directors are not eligible to participate in
the Plan.
Details of the Awards
Under the Plan, the Group may grant awards based on the price of ordinary shares in the Company and cannot grant awards over actual shares.
• Restricted Awards: These awards are conditional rights to receive cash payment by reference to a specified number of the Company’s ordinary
shares, subject to the relevant employee remaining employed by the Group when the Restricted Award vests, and
• Performance Awards: These awards are conditional rights to receive cash payment by reference to a specified number of the Company’s ordinary
shares subject to both the satisfaction of a performance condition and the relevant employee remaining employed by the Group when the
Performance Award vests.
When awards vest under the Plan, participants become entitled to receive a cash payment by reference to the number and portion of awards that have
vested and the market value of the Company’s ordinary shares on the date of vesting. There is no exercise price payable by participants in respect of
the awards.
Restricted Awards can only vest in full if participants remain employed by the Group for three years from the date that Restricted Awards are granted.
In ordinary circumstances, the first one-third of a Restricted Award will vest after one year, the second one-third will vest after two years and the
remaining one-third will vest after three years. There are no performance criteria attached to Restricted Awards. The fair value of Restricted Awards
granted under the Plan is recorded as a compensation expense over the vesting periods, with a corresponding liability recognised for the fair value of
the liability at the end of each period until settled.
Performance Awards only vest if certain performance criteria are met. The performance criteria reflect a number of factors including total shareholder
return, earnings levels, growth in the Group’s reserves and resources and project delivery targets. The fair value of Performance Awards under the
Plan is recorded as a compensation expense over the vesting period, with a corresponding liability at the end of each period until settled.
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26 Long-term incentive plan continued

Valuation process and accounting for the awards
The fair value of the awards is determined using a Monte Carlo simulation model. The inputs into the Monte Carlo simulation model are as follows:
2022 2021
Weighted average forecast share price at vesting date $18.5 $18.0

Expected volatility 50.90% 39.23%
Expected life of awards 3 years 3 years
Expected dividend yields 6.77% 3.94%
Discount rate 4.33% 0.08%
Expected volatility was determined by calculating the historical volatility of the Group’s share price over the previous five years. The expected life of
awards used in the model has been adjusted based on management’s best estimate for the effects of non-transferability and compliance of the
objectives determined according to the characteristic of each plan.
The number of awards outstanding at the end of the year is as follows:
Restricted Performance
Awards Awards
Outstanding at 1 January 2022 544,143 1,385,475

Granted during the year 214,812 336,206
Cancelled during the year (38,330) (128,513)
Payments during the year (282,106) (416,221)
Outstanding at 31 December 2022 438,519 1,176,947
Number of awards that have vested 213,594 –
The Group has recorded a liability of $17.2 million at 31 December 2022, of which $4.7 million is due after more than one year (31 December 2022 –
$18.9 million of which $9.2 million was due after more than one year) and total expenses of $13.1 million for the year (2021 – expense of $9.0 million).
27 Post-employment 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 2022 was
$0.1 million (2021 – $0.1 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 payment 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 payment 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 payment obligation. Actuarial gains and losses are immediately recognised in other
comprehensive income.
The most recent valuation was carried out in 2022 by Ernst & Young, a qualified actuary in Santiago, Chile who is not connected with the Group.
The main assumptions used to determine the actuarial present value of benefit obligations were as follows:
2022 2021
% %
Average nominal discount rate 5.3% 6.3%

Average rate of increase in salaries 2.2% 2.3%
Average staff turnover 3.5% 4.9%
Amounts included in the income statement in respect of severance provisions are as follows:
2022 2021
$m $m
Current service cost (charge to operating profit) (19.1) (19.8)

Interest cost (charge to other finance items) (6.8) (3.6)
Foreign exchange credit/(charge) to other finance items 1.5 19.6
Total charge to income statement (24.4) (3.8)
226 Antofagasta
Movements in the present value of severance provisions were as follows:
2022 2021
$m $m

Current service cost (19.1) (19.8)
Actuarial (losses)/gains (18.1) 3.1
Unwinding of discount on provisions (6.8) (3.6)
Paid in the year 12.7 16.4
Foreign currency exchange difference 1.5 19.6
Assumptions description
Discount rate
31 December 2022 31 December 2021
Nominal discount rate 5.34% 6.50%

Reference rate name 20 year Chilean Central Bank Bonds 20 year Chilean Central Bank Bonds
Governmental or corporate rate Governmental Governmental
Reference rating AA–/AA+ AA–/AA+
Corresponds to an Issuance market (primary) or secondary market Secondary Secondary
Issuance currency associated to the reference rate Chilean peso Chilean peso
Date of determination of the reference interest rate 28 November 2022 31 October 2021
Source of the reference interest rate Bloomberg Bloomberg
The discount rate is the interest rate used to discount the estimated future severance payments to their present value. The table above shows the
principal instruments and assumptions utilised in determining the discount rate.
Rate of increase in salaries
This represents the estimated average rates of future salary increases, reflecting likely future promotions and other changes. This has been based on
historical information for the Group for the period from 2018 to 2022.
Turnover rate
This represents the estimated average level of future employee turnover. This has been based on historical information for the Group for the period
from 2018 to 2022.
Sensitivity analysis
Significant actuarial assumptions for the determination of the defined obligation are discount rate, expected salary increase and staff turnover.
The sensitivity analysis below has been determined based on reasonably possible changes of the respective assumptions occurring at the end of the
reporting period, while holding all other assumptions constant.
• If the discount rate is 100 basis points higher, the defined benefit obligation would decrease by $10.2 million. If the discount rate is 100 basis points
lower, the defined benefit obligation would increase by $11.7 million.
• If the expected salary growth increases by 1%, the defined benefit obligation would increase by $10.5 million. If the expected salary growth decreases
by 1%, the defined benefit obligation would decrease by $9.6 million.
• If the staff turnover increases by 1%, the defined benefit obligation would decrease by $2.5 million. If the staff turnover decreases by 1%, the defined
benefit obligation would increase by $2.5 million.
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227
28 Deferred tax assets and liabilities

Accelerated Temporary
capital differences Withholding Short-term Mining tax
allowances on provisions tax differences (Royalty) Tax losses Disposal Total
$m $m $m $m $m $m $m $m
At 1 January 2021 (1,122.1) 124.6 (52.8) 42.0 (103.5) 5.3 0.1 (1,106.4)
(Charge)/credit to income (248.9) (7.5) 29.7 (103.3) 1.0 31.7 (0.1) (297.4)
Exceptional items – – – – – 90.6 – 90.6
Charge deferred in equity – (2.1) – – (0.4) – – (2.5)
At 31 December 2021 and 1 January 2022 (1,371.0) 115.0 (23.1) (61.3) (102.9) 127.6 – (1,315.7)
(Charge)/credit to income (79.2) 1.4 (48.5) (15.6) (9.8) (3.1) – (154.8)
Reclassification (16.9) 7.8 – 9.1 – – – –
Charge deferred in equity – 4.9 – – 0.8 – – 5.7
At 31 December 2022 (1,467.1) 129.1 (71.6) (67.8) (111.9) 124.5 – (1,464.8)
The charge to the income statement of $154.8 million (2021 – $206.8 million) included an impact from foreign exchange differences of nil (2021 – nil).
Certain deferred tax assets and liabilities have been offset. Deferred tax assets and liabilities are offset where there is a legally enforceable right to do
so, which under Chilean tax regulations is only possible within individual legal entities.
The following is the analysis of the deferred tax balance (after offset):
2022 2021
$m $m
Net deferred tax assets 78.5 96.8

Net deferred tax liabilities (1,543.3) (1,412.5)
Net deferred tax balances (1,464.8) (1,315.7)
At 31 December 2022, the Group had unused tax losses associated with Chilean entities (predominantly Antucoya) of $460.3 million (2021 – $472.5
million) available for offset against future profits. Generally under Chilean tax law most tax losses can be carried forward indefinitely. A deferred tax
asset of $124.5 million has been recognised in respect of 100% of these losses as at 31 December 2022 (31 December 2021 – $127.6 million). In
addition, at 31 December 2022, the Group had unused tax losses associated with entities outside of Chile (predominantly in respect of the Twin Metals
project) of $427.0 million (2021 – $428.0 million). A portion of the Twin Metals tax losses expire in the period from 2030 – 2037, and the remainder
can be carried forward indefinitely. Deferred tax assets have not been recognised in respect of these tax losses, reflecting the fact that the relevant
entities have generated taxable losses in recent years.
At 31 December 2021, the Group recognised $90.6 million of previously unrecognised deferred tax assets relating to tax losses available for offset
against future profits, reflecting the improved actual and forecast profitability of the relevant Group entity (Antucoya). That entity has continued to
generate taxable profits during 2022, utilising $10.9 million of the deferred tax asset during the year.
At 31 December 2022, deferred withholding tax liabilities of $71.6 million have been recognised (31 December 2021 – $23.1 million) which relate to
undistributed earnings of subsidiaries where it is considered likely that the corresponding profits will be distributed in the foreseeable future. The value
of the remaining undistributed earnings of subsidiaries, for which deferred tax liabilities have not been recognised, because the Group is in a position to
control the timing of the distributions and it is likely that distributions will not be made in the foreseeable future, was $6,430.4 million (31 December
2021 – $6,483.3 million). If deferred withholding tax liabilities were recognised in respect of all of these remaining undistributed earnings of subsidiaries
this would result in an additional deferred tax liability and expense of approximately $1,076.5 million (31 December 2021 – $1,232.1 million), depending
on the application of tax credits which may be available in particular circumstances.
Temporary differences arising in connection with interests in associates are insignificant.
The deferred tax balance of $1,464.8 million (2021 – $1,315.7 million) includes $1,404.7 million (2021 – $1,272.6 million) due in more than one year.
All amounts are shown as non-current on the face of the balance sheet as required by IAS 12 Income Taxes.
228 Antofagasta
29 Decommissioning and restoration provisions
2022 2021
$m $m

Charge to operating profit in the year (15.4) (11.3)
Unwind of discount to net interest in the year (10.1) (2.6)
Adjustment to provision discount rates (1.6) 30.8
Capitalised adjustment to provision (173.8) 119.9
Utilised in year 49.7 33.8
Foreign currency exchange difference (0.9) 13.5
Short-term provisions (33.2) (33.8)

Long-term provisions (455.0) (302.3)
Total (488.2) (336.1)
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 by Sernageomin, the Chilean government agency which regulates the mining industry in Chile. During
2022, the Centinela and Antucoya provisions were updated to reflect new plans approved by Sernageomin during the year. The provision balance
reflects the present value of the forecast future cash flows expected to be incurred in line with the closure plans, discounted using Chilean real interest
rates with durations corresponding with the timings of the closure activities. At 31 December 2022, the real discount rates ranged from 1.67% to 1.73%
(31 December 2021: 2.3% to 2.5%).
It is estimated that the provision will be utilised from 2023 until 2066 based on current mine plans, with approximately 15% of the total provision
balance expected to be utilised between 2023 and 2031, approximately 49% between 2032 and 2041, approximately 10% between 2042 and 2051 and
approximately 26% between 2052 and 2066.
Given the long-term nature of these balances, it is possible that future climate risks could impact the appropriate amount of these provisions, both in
terms of the nature of the decommissioning and site rehabilitation activities that are required, or the costs of undertaking those activities. The Group
discloses in line with the recommendations of the Task Force on Climate-related Financial Disclosures (“TCFD”). This process included scenario
analyses assessing the impact of transition and physical risks. As a simple high-level sensitivity, we have considered whether the level of estimated
costs relating to the potential future risks identified under the scenario analysis could indicate a general level of future cost increases as a consequence
of climate risks which could indicate a significant potential impact on these provision balances. This analysis did not indicate a significant potential impact
on the decommissioning and restoration provision balances. However, more detailed specific analysis of the potential impacts of climate risks in future
periods could result in adjustments to these provision balances. When future updates to the closure plans are prepared and submitted to Sernageomin
for review and approval, it is possible that additional consideration of potential climate risk impacts may need to be incorporated into the plan
assumptions. In addition, Sernageomin may introduce new regulations or guidance in respect of climate risks which may need to be addressed in future
updates to the Group’s closure plans.
30 Share capital and other reserves

(I) Share capital
The ordinary share capital of the Company is as follows:
2022 2021 2022 2021
Number Number $m $m
Authorised
Ordinary shares of 5p each 1,300,000,000 1,300,000,000 118.9 118.9
2022 2021 2022 2021

Number Number $m $m
Issued and fully paid

Ordinary shares of 5p each 985,856,695 985,856,695 89.8 89.8
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 2022 or 2021. Details of the Company’s preference share
capital, which is included within borrowings in accordance with IAS 32 Financial Instruments, are given in Note 23A(x).
antofagasta.co.uk
229
30 Share capital and other reserves continued

(II) Other reserves and retained earnings
Details of the share premium account, hedging, fair value and translation reserves and retained earnings for both 2022 and 2021 are included within
the consolidated statement of changes in equity on page 182.
2022 2021
$m $m
Share premium
At 1 January and 31 December 199.2 199.2
Hedging reserves1
At 1 January – (23.9)
Parent and subsidiaries net cash flow hedge fair value losses – (100.4)
Parent and subsidiaries net cash flow hedge losses transferred to the income statement – 126.8
Tax on the above – (2.5)
At 31 December – –
Equity investment revaluation reserve2
At 1 January (7.4) (5.3)
Gains/(losses) on equity investment 15.8 (2.1)
At 31 December 8.4 (7.4)
Foreign currency translation reserves3
At 1 January (3.0) (1.4)
Currency translation adjustment (0.4) (1.6)
At 31 December (3.4) (3.0)
Total other reserves per balance sheet 5.0 (10.4)
Retained earnings
At 1 January 8,071.6 7,492.2
Parent and subsidiaries’ profit for the period 1,484.9 1,230.5
Equity accounted units’ profit after tax for the period 48.1 59.7
Actuarial (losses)/gains 4 (8.2) –
Total comprehensive income for the year 1,524.8 1,290.2
Dividends paid (1,262.9) (710.8)
At 31 December 8,333.5 8,071.6
1. The hedging reserve records gains or losses on cash flow hedges that are recognised initially in equity (through other comprehensive income), as described in Note 25.
2. The equity investments revaluation reserves record fair value gains or losses relating to equity investments, as described in Note 19.
3. Exchange differences arising on the translation of the Group’s net investment in foreign-controlled companies are taken to the foreign currency translation reserve.
The cumulative differences relating to an investment are transferred to the income statement when the investment is disposed of.
4. Actuarial gains or losses relating to long-term employee benefits, as described in Note 26.
230 Antofagasta
31 Non-controlling interests
The non-controlling interests of the Group during 2022 and 2021 are as follows:
Non- At Share of profit At
controlling 1 January for the Capital Share of Hedging and 31 December
Interest 2022 financial year Increase dividends actuarial gains 2022
% Country $m $m $m $m $m $m
Los Pelambres 40.0 Chile 1,204.5 320.4 – (80.0) (1.9) 1,443.0

Centinela 30.0 Chile 1,275.9 82.9 – – (2.0) 1,356.8
Antucoya 30.0 Chile 198.4 21.2 – – (0.3) 219.3
Encierro 43.5 Chile – (2.2) – – – (2.2)
Total 2,678.8 422.3 – (80.0) (4.2) 3,016.9
Share of
Non- At profit/(losses) Hedging and At
controlling 1 January for the Capital Share of actuarial 31 December
Interest 2021 financial year Increase dividends gains/(losses) 2021
% Country $m $m $m $m $m $m
Los Pelambres 40.0 Chile 1,107.3 608.0 – (512.0) 1.2 1,204.5

Centinela 30.0 Chile 1,113.7 252.2 – (92.5) 2.5 1,275.9
Antucoya 30.0 Chile 109.5 84.4 – – 4.5 198.4
Total 2,330.5 944.6 – (604.5) 8.2 2,678.8
The proportion of the voting rights is proportional with the economic interest for each of the companies listed above.
Summarised financial position and cash flow information for the years ended 2022 and 2021 is set out below:
Los Pelambres Centinela Antucoya
2022 2022 2022
$m $m $m
Non-controlling interest (%) 40.0% 30.0% 30.0%

Current assets 1,373.2 1,170.7 340.6
Non-current assets 5,413.3 4,752.3 1,367.2
Non-current liabilities (2,408.8) (1,011.8) (405.0)
Net cash from operating activities 1,060.9 762.2 162.1
Net cash used in investing activities (881.0) (879.8) (65.1)
Net cash from/(used in) financing activities 44.8 (163.2) (174.3)
Los Pelambres Centinela Antucoya

2021 2021 2021
$m $m $m
Non-controlling interest (%) 40.0% 30.0% 30.0%

Current assets 1,073.3 1,358.0 381.4
Non-current assets 4,593.8 4,561.2 1,354.6
Non-current liabilities (2,123.0) (1,082.6) (364.9)
Net cash from operating activities 1,816.8 1,885.5 295.3
Net cash used in investing activities (878.6) (837.6) (49.3)
Net cash used in financing activities (1,408.4) (1,152.6) (206.9)
Notes to the summarised financial position and cash flow

(i) The amounts disclosed for each subsidiary are based on the amounts included in the consolidated financial statements (100% of the results and
balances of the subsidiary rather than the non-controlling interest proportionate share) before inter-company eliminations.
(ii) Summarised income statement information is shown in the segment information in Note 6.
(iii) There are some subsidiaries including Encierro with a non controlling interest portion not included in this note where those portions are not
material to the Group.
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231
32 Notes to the consolidated cash flow statement

A) Reconciliation of profit before tax to cash flow from operations
2022 2021
$m $m
Profit before tax 2,558.9 3,477.1

Depreciation 1,141.1 1,078.7
Net loss on disposals 2.1 9.2
Net finance expense/(income) 68.2 (16.0)
Net share of results of associates and joint ventures (48.1) (59.7)
Gain on disposal of investment in joint venture (944.7) –
Provision against carrying value of assets – 177.6
(Increase)/decrease in inventories (180.7) 10.9
Decrease/(increase) in debtors 27.0 (206.8)
Increase in creditors 141.0 55.7
Decrease in provisions (26.5) (19.0)
Cash flow generated from operations 2,738.3 4,507.7
B) Analysis of changes in net debt

Movement
At Amortisation between At
1 January of finance Capitalisation maturity 31 December
2022 Cash flow New leases costs of interest categories Other Exchange 2022
$m $m $m $m $m $m $m $m $m
Cash and cash equivalents 743.4 65.6 – – – – – 1.4 810.4
Liquid investments 2,969.7 (1,388.9) – – – – – – 1,580.8
Total cash and cash equivalents and
liquid investments 3,713.1 (1,323.3) – – – – – 1.4 2,391.2
Borrowings due within one year (268.0) 373.9 – – – (483.3) – – (377.4)
Borrowings due after one year (2,742.1) (488.5) – (11.7) (6.3) 483.3 (0.1) – (2,765.4)
Leases due within one year (69.1) 105.4 – – – (80.7) – (10.7) (55.1)
Leases due after one year (90.7) – (51.3) – – 80.7 (1.0) (14.3) (76.6)
Preference shares (2.7) – – – – – – 0.2 (2.5)
Total borrowings (3,172.6) (9.2) (51.3) (11.7) (6.3) – (1.1) (24.8) (3,277.0)
Net cash/(debt) 540.5 (1,332.5) (51.3) (11.7) (6.3) – (1.1) (23.4) (885.8)
Movement
At Amortisation between At
1 January of finance Capitalisation maturity 31 December
2021 Cash flow New leases costs of interest categories Other Exchange 2021
$m $m $m $m $m $m $m $m $m
Cash and cash equivalents 1,246.8 (483.1) – – – – – (20.3) 743.4
Liquid investments 2,426.0 543.7 – – – – – – 2,969.7
Total cash and cash equivalents and liquid
investments 3,672.8 60.6 – – – – – (20.3) 3,713.1
Borrowings due within one year (529.8) 545.6 – – – (294.2) 10.4 – (268.0)
Borrowings due after one year (3,013.8) – – (5.7) (16.6) 294.2 – (0.2) (2,742.1)
Leases due within one year (73.6) 88.9 – – – (84.4) – – (69.1)
Leases due after one year (134.9) – (61.8) – – 84.4 – 21.6 (90.7)
Preference shares (2.7) – – – – – – – (2.7)
Total borrowings (3,754.8) 634.5 (61.8) (5.7) (16.6) – 10.4 21.4 (3,172.6)
Net debt (82.0) 695.1 (61.8) (5.7) (16.6) – 10.4 1.1 540.5
C) Net (debt)/cash
2022 2021
$m $m
Cash, cash equivalents and liquid investments 2,391.2 3,713.1

Total borrowings and other financial liabilities (3,277.0) (3,172.6)
Net (debt)/cash (885.8) 540.5
232 Antofagasta
33 Exchange rates
Assets and liabilities denominated in foreign currencies are translated into US dollars and Sterling at the period-end rates of exchange.
Results denominated in foreign currencies have been translated into US dollars at the average rate for each period.
2022 2021
$1.2080=£1; $1.3490=£1;
Year-end rates $1 = Ch$855.86 $1 = Ch$844.69
$1.2340=£1; $1.3750=£1;
Average rates $1 = Ch$872.38 $1 = Ch$759.81
34 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 and joint ventures are disclosed below.
The transactions which Group companies entered into with related parties who are not members of the Group are set out below. There are no guarantees
given or received and no provisions for doubtful debts related to the amount of outstanding balances.
A) Quiñenco SA
Quiñenco SA (“Quiñenco”) is a Chilean financial and industrial conglomerate, the shares of which are traded on the Santiago Stock Exchange, and in
which members of the Luksic family are interested. Two Directors of the Company, Jean-Paul Luksic and Andronico Luksic, are also directors of Quiñenco.
The following transactions took place between the Group and the Quiñenco group of companies, all of which were on normal commercial terms at
market rates:
• the Group made purchases of fuel from ENEX SA, a subsidiary of Quiñenco, of $309.9 million (2021 – $263.9 million). The balance due to ENEX SA
at the end of the year was $28.6 million (2021 – $20.4 million),
• the Group earned interest income of $0.8 million (2021 – $0.1 million) during the year on investments with BanChile Administradora General de
Fondos SA, a subsidiary of Quiñenco. Investment balances at the end of the year were nil (2021 – $2.2 million),
• the Group purchased shipping services from Hapag Lloyd, an associate of Quiñenco, of $12.7 million (2021 – $8.9 million). The balance due to Hapag
Lloyd at the end of the year was $0.3 million (2021 – $0.4 million),
• the Group made purchases of technology services from ARTIKOS CHILE SA, a subsidiary of Quiñenco, of $0.2 million (2021 – $0.2 million). The
balance due to ARTIKOS CHILE SA at the end of the year was nil (2021 – nil).
B) Compañía de Inversiones Adriático SA
In 2022, the Group leased office space on normal commercial terms from Compañía de Inversiones Adriático SA, a company in which members of the
Luksic family are interested, at a cost of $0.4 million (2021 –$0.8 million).
C) 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,
which continues to hold the remaining 49% of Antomin 2 and Antomin Investors. Mineralinvest is owned by the E. Abaroa Foundation, in which members
of the Luksic family are interested. During the year ended 31 December 2022, the Group incurred $0.1 million (year ended 31 December 2021 – $0.1
million) of exploration expense at these properties.
D) Tethyan Copper Company Limited
On 15 December 2022 Antofagasta entered into definitive agreements to exit its interest in the Tethyan joint venture, which is therefore no longer
recognised as a joint venture by the Group. The group contributed nil (2021 - $9.5 million) to Tethyan during 2022.
E) Compañia Minera Zaldívar SpA
The Group has a 50% interest in Zaldívar (see Note 18), which is a joint venture with Barrick Gold Corporation. Antofagasta is the operator of Zaldívar.
The balance due from Zaldívar to Group companies at the end of the year was $6.7 million (2021 – $2.5 million). During 2022, Zaldívar declared
dividends of $50.0 million to the Group (2021 – $77.5 million).
F) Directors and other key management personnel
Information relating to Directors’ remuneration and interests is given in the Remuneration Report on page 159. Information relating to the remuneration
of key management personnel including the Directors is given in Note 9.
35 Litigation and contingent liabilities

The Group is subject from time to time to legal proceedings, claims, complaints and investigations arising out of the ordinary course of business.
The Group cannot predict the outcome of individual legal actions or claims or complaints or investigations. As a result, the Group may become subject
to liabilities that could affect our business, financial position and reputation. Litigation is inherently unpredictable and large judgements may at times
occur. The Group may incur, in the future, judgements or enter into settlements of claims that could lead to material cash outflows. The Group
considers that no material loss to the Group is expected to result from the legal proceedings, claims, complaints and investigations that the Group is
currently subject to. Provisions are recognised when it is probable that the Group will be required to settle an obligation arising as a result of a legal
claim against the Group.
36 Ultimate Parent Company

The immediate parent of the Group is Metalinvest Establishment, which is controlled by the 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 is given in the Directors’ Report.
antofagasta.co.uk
233
Financial statements of the

Parent Company (Antofagasta plc)
Parent Company balance sheet
2022 2021
Note $m $m
Non-current assets
Investment in subsidiaries 5 589.1 529.1
Other receivables1 5 54.0 54.0
Property, plant and equipment 4.4 5.1
647.5 588.2
Current assets
Other receivables1 5 744.6 3.8
Liquid investments 457.6 1,649.4
1,440.7 2,076.0
Total assets 2,088.2 2,664.2
Current liabilities
Amounts payable to subsidiaries 6 (615.7) (302.2)
Other payables (9.2) (15.4)
(624.9) (317.6)
Non-current liabilities
Medium and long-term borrowings 7 (992.2) (993.4)
(992.2) (993.4)
Total liabilities (1,617.1) (1,311.0)
Net assets 471.1 1,353.2
Equity
Share capital 89.8 89.8
Share premium 199.2 199.2
Retained earnings
At 1 January 1,064.2 626.0
Profit for the year attributable to the owners 380.8 1,149.0
Dividends (1,262.9) (710.8)
At 31 December 182.1 1,064.2
Total equity 471.1 1,353.2
1. The prior period comparatives have been restated to reflect a reclassification from current other receivables to non-current other receivables of $54.0 million (see note 5).
The financial statements on pages 234 to 237 were approved by the Board of Directors on 23 March 2023 and signed on its behalf by

234 Antofagasta
Parent Company statement of changes in equity
Retained
Share capital Share premium earnings Total equity
$m $m $m $m
At 1 January 2021 89.8 199.2 626.0 915.0

Comprehensive income for the year – – 1,149.0 1,149.0
Dividends – – (710.8) (710.8)
At 31 December 2021 89.8 199.2 1,064.2 1,353.2
Comprehensive income for the year – – 380.8 380.8
Dividends – – (1,262.9) (1,262.9)
At 31 December 2022 89.8 199.2 182.1 471.1
The ordinary shares rank after the preference shares in entitlement to dividends and on a winding-up. Each ordinary share carries one vote at any
general meeting.
Antofagasta plc is a company limited by shares, incorporated and domiciled in the United Kingdom at 103 Mount Street, London W1K 2TJ.
1 Basis of preparation of the Parent Company financial statements

The Antofagasta plc Parent Company financial statements have been prepared in accordance with the Companies Act 2006 applicable to companies
using FRS 101, which applies the recognition and measurement bases of IFRS with reduced disclosure requirements. The financial information has
been prepared on an historical cost basis. The financial statements have been prepared on a going concern basis. The functional currency of the
Company and the presentation currency adopted is US dollars.
The following exemptions from the requirements of IFRS have been applied in the preparation of these financial statements, in accordance with
FRS 101:
• Paragraphs 45(b) and 46 to 52 of IFRS 2, ‘Share-based payment’ (details of the number and weighted-average exercise prices of share options and
how the fair value of goods or services received was determined)
• IFRS 7, ‘Financial Instruments: Disclosures’
• Paragraphs 91 to 99 of IFRS 13, ‘Fair value measurement’ (disclosure of valuation techniques and inputs used for fair value measurement of assets
and liabilities)
• Paragraph 38 of IAS 1, ‘Presentation of financial statements’ comparative information requirements in respect of:
(i) paragraph 79(a)(iv) of IAS 1, ‘Presentation of financial statements’
(ii) paragraph 73(e) of IAS 16, ‘Property, plant, and equipment’
(iii) paragraph 118(e) of IAS 38, Intangible assets (reconciliations between the carrying amount at the beginning and end of the period)
• The following paragraphs of IAS 1, ‘Presentation of financial statements’:
– 10(d), (statement of cash flows)
– 10(f) (a statement of financial position as at the beginning of the preceding period when an entity applies an accounting policy retrospectively or
makes a retrospective restatement of items in its financial statements, or when it reclassifies items in its financial statements)
– 16 (statement of compliance with all IFRS)
– 38A (requirement for minimum of two primary statements, including cash flow statements)
– 38B-D (additional comparative information)
– 40A-D (requirements for a third statement of financial position)
– 111 (cash flow statement information), and
– 134-136 (capital management disclosures)
• IAS 7, ‘Statement of cash flows’
• Paragraph 30 and 31 of IAS 8 ‘Accounting policies, changes in accounting estimates and errors’ (requirement for the disclosure of information when
an entity has not applied a new IFRS that has been issued but is not yet effective)
• Paragraph 17 of IAS 24, ‘Related party disclosures’ (key management compensation)
• The requirements in IAS 24, ‘Related party disclosures’ to disclose related party transactions entered into between two or more members of a
group. All of the Parent Company’s inter-company transactions and balances are with wholly-owned subsidiaries of the Group.
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 $380.8 million (2021 – $1,149.0 million).
antofagasta.co.uk
235
/ Financial statements of the Parent Company (Antofagasta plc) continued
2 Principal accounting policies of the Parent Company

A summary of the principal accounting policies is set out below. These accounting policies have been applied consistently.
A) Currency translation
The Company’s functional currency is the US dollar. Transactions in currencies other than the functional currency are translated at the exchange rate
ruling at the date of the transaction. Monetary assets and liabilities, including amounts due from or to subsidiaries, denominated in currencies other than
the functional currency (being US dollars) are retranslated at year-end exchange rates. Gains and losses on retranslation are included in net profit or
loss for the year.
B) Revenue recognition
Dividends proposed by subsidiaries are recognised as income by the Company when they represent a present obligation of the subsidiaries, in the
period in which they are formally approved for payment.
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.
C) Dividends payable
Dividends proposed are recognised when they represent a present obligation, 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 long-term amounts owed by subsidiaries. Such investments are valued at cost
less any impairment provisions. Investments relating to equity holdings in subsidiaries are reviewed for impairment if events or changes in
circumstances indicate that the carrying amount may not be recoverable; the recoverable amount of the investment is the higher of fair value less costs
of disposal and value in use. Investments relating to long-term amounts owed by subsidiaries are reviewed to assess if a material expected credit loss
provision is required in respect of these balances.
E) Liquid investments and cash and cash equivalents
Liquid investments represent highly liquid current asset investments such as term deposits and managed funds invested in high quality fixed income
instruments. They 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 from the date first entered into, or because they are held primarily for investment purposes
rather than meeting short-term cash commitments. 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 and are held for the
purpose of meeting short-term cash commitments rather than for investment or other purposes. The cash balance is presented net of bank overdrafts
which are repayable on demand. Cash and cash equivalents have a maturity period of 90 days or less.
F) Borrowings
Interest-bearing 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.
G) Borrowings – preference shares
The sterling-denominated 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 year-end rates of exchange. Preference share dividends are included within
finance costs.
H) 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 sterling-
denominated issued ordinary share capital and related share premium.
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.
I) Financing facilities
On 30 December, 2022, Antofagasta plc agreed a revolving credit facility “RCF” of $500.0 million. This revolving credit facility has a term of three
years, which expires on 30 December, 2025 (see Note 23F).
3 Significant accounting estimates and judgements

We do not consider there to be critical accounting judgements or key sources of estimation uncertainty which could have a significant risk of causing a
material adjustment to the carrying amounts of the Company’s assets and liabilities within the next financial year. We have set out below the most
significant judgements and estimates applied in the preparation of the Company’s balance sheet. The most significant accounting judgement is whether
there are impairment indicators in respect of the carrying value of the Company’s investments in subsidiaries, which have a total carrying value as at
31 December 2022 of $589.1 million. The most significant accounting estimate is whether a credit loss provision is required in respect of any of the
Company’s receivable balances. Over 99% of the receivable balances relate to inter-company balances, primarily with Group holding companies which
hold the Group’s investments in the operating companies. There is not considered to be any significant risk of a relevant overstatement of these
carrying values. In assessing this, the Group has considered the overall market capitalisation of the Group, which was $18.4 billion at 31 December
2022, the cash and other assets held by the relevant Group companies and the level of earnings generated by the Group’s operations.
236 Antofagasta
4 Employee Benefit Expense
i) Average number of employees
The average monthly number of employees was 4 (2021 – 4), engaged in management and administrative activities.
ii) Aggregate remuneration
The aggregate remuneration of the employees mentioned above was as follows:
2022 2021
$m $m
Wages and salaries 2.3 2.3

Social security costs 0.3 0.3
Other pension costs 0.1 0.1
2.7 2.7
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.
5 Subsidiaries
i) Investment in subsidiaries
2022 2021
$m $m
Shares in subsidiaries at cost1 120.6 60.6

Amounts owed by subsidiaries due after more than one year 468.5 468.5
589.1 529.1
Shares Loans Total

$m $m $m
1 January 2022 60.6 468.5 529.1

31 December 2022 120.6 468.5 589.1
1. The $60.0m increase in the shares in subsidiaries balance reflects the acquisition by the Company of additional shares issued by the Company’s direct subsidiary Andean LFMA
Limited during the year.
The Company has reviewed whether there are any indicators of impairment in respect of the investment balance and concluded that there are no
such indicators.
The above amount of $468.5 million (31 December 2021 – $468.5 million) in respect of amounts owed by subsidiaries due after more than one year
relates to long-term funding balances for which the Company does not expect to demand repayment in the foreseeable future and which form an
integral part of the Company’s long-term investment in those subsidiary companies.
ii) Trade and other receivables – amounts owed by subsidiaries due after one year
At 31 December 2022, an amount of $54.0 million (31 December 2021 – $54.0 million) was owed to the Company by indirect subsidiaries. This amount
is not expected to be realised within twelve months after the reporting period. The prior period comparatives have been restated to reflect a
reclassification of this amount from current other receivables to non-current other receivables, again reflecting that this amount was not expected to be
realised within twelve months after the reporting period. There have been no impairments recognised in respect of subsidiary receivables as at
31 December 2022.
iii) Trade and other receivables – amounts owed by subsidiaries due within one year
At 31 December 2022, amounts owed by subsidiaries due within one year were $744.6 million (31 December 2021 – $3.8 million). These balances
principally relate to $410.0 million inter-company dividends declared but not yet paid to the Company by its immediate subsidiary companies. In addition,
there is a $328.0 million receivable balance relating to short-term intragroup funding arrangements. There have been no impairments recognised in
respect of subsidiary receivables as at 31 December 2022.
6 Amounts payable to subsidiaries

At 31 December 2022, amounts payables to subsidiaries due within one year were $615.7 million (31 December 2021 – $302.2 million). This increase in
the balance during the year reflects a $328.0 million payable balance relating to short–term intragroup funding arrangements.
7 Borrowings – preference shares

The authorised, issued and fully paid preference share capital of the Company comprised 2,000,000 5% cumulative preference shares of £1 each at
both 31 December 2022 and 31 December 2021. As explained in Note 23C, the preference shares are recorded in the balance sheet in US dollars at
period-end rates of exchange.
The preference shares are non-redeemable and are entitled to a fixed 5% cumulative dividend, payable in equal instalments in June and December of
each year. On a winding-up, 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 23A (x)) at any general meeting.
antofagasta.co.uk
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Other Information
Alternative performance measures

(not subject to audit or review)
This Annual Report includes a number of alternative performance measures, in addition to amounts in accordance with UK-adopted International
Accounting Standards. These measures are included because they are considered to provide relevant and useful additional information to users of the
financial statements. Set out below are definitions of these alternative performance measures, explanations as to why they are considered to be
relevant and useful, and reconciliations to the IFRS figures.
A) Underlying earnings per share
Underlying earnings per share is earnings per share from continuing operations, excluding exceptional items. This measure is reconciled to earnings
per share from continuing and discontinued operations (including exceptional items) on the face of the income statement. This measure is considered to
be useful as it provides an indication of the earnings generated by the ongoing businesses of the Group, excluding the impact of exceptional items which
are irregular or non-operating in nature.
B) EBITDA
EBITDA refers to Earnings Before Interest, Tax, Depreciation and Amortisation. EBITDA is calculated by adding back depreciation, amortisation, profit or
loss on disposals and impairment charges to operating profit. This comprises 100% of the EBITDA from the Group´s subsidiaries, and the Group´s
proportional share of the EBITDA of its associates and joint ventures.
EBITDA is considered to provide a useful and comparable indication of the current operating earnings performance of the business, excluding the
impact of the historical cost of property, plant and equipment or the particular financing structure adopted by the business.
Pelambres Centinela Antucoya Zaldívar evaluation items Mining division Total
$m $m $m $m $m $m $m $m $m
Operating profit/(loss) 1,196.2 446.0 155.6 – (113.0) (94.3) 1,590.5 43.8 1,634.3
Depreciation 276.1 710.2 105.6 – – 18.7 1,110.6 30.5 1,141.1
Loss on disposal 0.5 1.0 – – – 0.6 2.1 – 2.1
EBITDA from subsidiaries 1,472.8 1,157.2 261.2 – (113.0) (75.0) 2,703.2 74.3 2,777.5
Proportional share of the EBITDA
from associates and JV – – – 147.2 – (0.7) 146.5 5.7 152.2
EBITDA 1,472.8 1,157.2 261.2 147.2 (113.0) (75.7) 2,849.7 80.0 2,929.7

Pelambres Centinela Antucoya Zaldívar evaluation items Mining division Total
$m $m $m $m $m $m $m $m $m
Operating profit/(loss) 2,240.5 1,260.6 238.3 – (280.8) (89.0) 3,369.6 31.8 3,401.4
Depreciation 281.8 654.7 98.3 – – 13.0 1,047.8 30.9 1,078.7
Loss on disposals 3.7 4.0 0.5 – – – 8.2 1.0 9.2
Provision against the carrying value
of assets1 – – – – 177.6 – 177.6 – 177.6
EBITDA from subsidiaries 2,526.0 1,919.3 337.1 – (103.2) (76.0) 4,603.2 63.7 4,669.9
Proportional share of the EBITDA
from associates and JV – – – 172.8 – (8.0) 164.8 4.5 169.3
EBITDA 2,526.0 1,919.3 337.1 172.8 (103.2) (84.0) 4,768.0 68.2 4,836.2
1. An impairment has been recognised as at 31 December 2021 in respect of the $177.6 million of intangible assets and property, plant and equipment relating to the Twin Metals project,
presented as an exceptional item.
238 Antofagasta
C) Cash costs
Cash costs are a measure of the cost of operating production expressed in terms of cents per pound of payable copper produced.
This is considered to be a useful and relevant measure as it is a standard industry measure applied by most major copper mining companies which
reflects the direct costs involved in producing each pound of copper. It therefore allows a straightforward comparison of the unit production cost of
different mines, and allows an assessment of the position of a mine on the industry cost curve. It also provides a simple indication of the profitability of a
mine when compared against the price of copper (per lb).
2022 2021
$m $m
Reconciliation of cash costs excluding treatment and refining charges and by-product revenue:
Total Group operating cost (Note 6) 4,227.7 4,068.7
Zaldívar operating costs (attributable basis – 50%) 234.4 231.7
Less:
Depreciation (Note 6) (1,141.1) (1,078.7)
Loss on disposal (Note 6) (2.1) (9.2)
Provision against the carrying value of assets – (177.6)
Elimination of non-mining operations:
Corporate and other items – Total operating cost (excluding depreciation) (Note 6) (75.0) (76.0)
Exploration and evaluation – Total operating cost (excluding depreciation) (Note 6) (113.0) (103.2)
Transport division – Total operating cost (excluding depreciation) (Note 6) (119.1) (106.3)
Closure provision and other expenses not included within cash costs (97.6) (90.7)
Inventory variation (12.0) 2.1
Total cost relevant to the mining operations’ cash costs 2,902.2 2,660.8
Copper production volumes (tonnes)1 646,200 721,450
Cash costs excluding treatment and refining charges and by-product revenue ($/tonne) 4,491 3,688
Cash costs excluding treatment and refining charges and by-product revenue ($/lb) 2.05 1.68
Reconciliation of cash costs before deducting by-product revenue:

Treatment and refining charges – copper and by-product – Los Pelambres 108.5 115.4
Treatment and refining charges – copper and by-product – Centinela 78.8 70.4
Treatment and refining charges – copper – total 187.3 185.8
Copper production volumes (tonnes) 646,200 721,450
Treatment and refining charges ($/tonne) 289.9 257.5

Treatment and refining charges ($/lb) 0.14 0.11
Cash costs excluding treatment and refining charges and by-product revenue ($/lb) 2.05 1.68
Treatment and refining charges ($/lb) 0.14 0.11
Cash costs before deducting by-product revenue ($/lb) 2.19 1.79
1. The 646,200 tonnes includes 44,500 tonnes of production at Zaldívar on a 50% attributable basis.
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Other Information
/ Alternative performance measures continued
C) Cash costs continued

2022 2021
$m $m
Reconciliation of cash costs (net of by-product revenue):

Gold revenue – Los Pelambres (Note 6) 75.5 91.2
Gold revenue – Centinela (Note 6) 239.0 346.2
Molybdenum revenue – Los Pelambres (Note 6) 311.9 353.6
Molybdenum revenue - Centinela (Note 6) 110.2 44.4
Silver revenue – Los Pelambres (Note 6) 33.1 46.6
Silver revenue – Centinela (Note 6) 25.1 38.7
Total by-product revenue 794.8 920.7
Copper production volumes (tonnes)1 646,200 721,450
By-product revenues ($/tonne) 1,230.0 1,276.0

By-product revenues ($/lb) 0.58 0.59
Cash costs before deducting by-product revenue ($/lb) 2.19 1.79

By-product revenue ($/lb) (0.58) (0.59)
Cash costs (net of by-product revenue) ($/lb) 1.61 1.20
1. The 646,200 tonnes includes 44,500 tonnes of production at Zaldívar on a 50% attributable basis.
The totals in the tables above may include some small apparent differences as the specific individual figures have not been rounded.
240 Antofagasta
D) Attributable cash, cash equivalents and liquid investments, borrowings and net debt
Attributable cash, cash equivalents and liquid investments, borrowings and net debt reflects the proportion of those balances which are attributable to
the owners of the parent, after deducting the proportion attributable to the non-controlling interests in the Group’s subsidiaries.
This is considered to be a useful and relevant measure as the majority of the Group’s cash tends to be held at the corporate level and therefore 100%
attributable to the owners of the parent, whereas the majority of the Group’s borrowings tends to be at the level of the individual operations, and hence
only a proportion is attributable to the owners of the parent.
2022 2021
Total Attributable Attributable Total Attributable Attributable
amount share amount amount share amount
$m $m $m $m $m $m
Cash, cash equivalents and liquid investments:
Los Pelambres 655.4 60% 393.2 427.9 60% 256.7

Centinela 348.5 70% 244.0 625.3 70% 437.7
Antucoya 111.8 70% 78.3 181.5 70% 127.1
Corporate 1,247.0 100% 1,247.0 2,436.5 100% 2,436.5
Transport division 28.5 100% 28.5 41.9 100% 41.9
Total (Note 22) 2,391.2 1,991.0 3,713.1 3,299.9
Borrowings:
Los Pelambres (Note 23) (1,525.8) 60% (915.5) (1,243.1) 60% (745.9)
Centinela (Note 23) (311.9) 70% (218.3) (446.6) 70% (312.6)
Antucoya (Note 23) (411.5) 70% (288.1) (439.2) 70% (307.5)
Corporate (Note 23) (1,010.9) 100% (1,010.9) (1,016.5) 100% (1,016.4)
Transport division (Note 23) (16.9) 100% (16.9) (27.2) 100% (27.2)
Total (Notes 23 and 32) (3,277.0) (2,449.7) (3,172.6) (2,409.6)
Net (debt)/cash (885.8) (458.7) 540.5 890.3
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241
Other Information
Five Year Summary
2022 2021 2020 2019 2018

$m $m $m $m $m
Consolidated balance sheet

Intangible asset – – 150.1 150.1 150.1
Property plant and equipment 11,543.5 10,538.5 9,851.9 9,556.7 9,184.1
Other non-current assets 1.1 1.3 2.6 2.1 2.6
Inventories 347.0 270.4 278.1 208.0 172.7
Investment in associates and joint ventures 904.6 905.8 914.6 1,024.8 1,056.1
Trade and other receivables 51.0 51.2 55.9 48.2 56.1
Derivative financial instruments – – 0.3 1.7 –
Equity investments 90.5 8.7 11.1 5.1 4.7
Deferred tax assets 78.5 96.8 6.4 8.2 37.2
Non-current assets 13,016.2 11,872.7 11,271.0 11,004.9 10,663.6
Current assets 5,222.1 5,405.7 5,333.3 3,605.5 3,438.9
Current liabilities (1,605.8) (1,574.2) (1,625.7) (1,548.9) (1,307.1)
Non-current liabilities (4,988.1) (4,675.2) (4,897.5) (3,660.5) (3,357.3)
11,644.4 11,029.0 10,081.1 9,401.0 9,438.1
Share capital 89.8 89.8 89.8 89.8 89.8

Share premium 199.2 199.2 199.2 199.2 199.2
Reserves (retained earnings and hedging, translation and fair value reserves) 8,338.5 8,061.2 7,461.6 7,094.7 7,070.4
Equity attributable to owners of the parent 8,627.5 8,350.2 7,750.6 7,383.7 7,359.4
Non-controlling interests 3,016.9 2,678.8 2,330.5 2,017.3 2,078.7
11,644.4 11,029.0 10,081.1 9,401.0 9,438.1
2022 2021 2020 2019 2018

$m $m $m $m $m
Consolidated income statement

Group revenue 5,862.0 7,470.1 5,129.3 4,964.5 4,733.1
Total profit from operations and associates 2,627.1 3,461.1 1,516.5 1,400.2 1,367.2
Profit before tax 2,558.9 3,477.1 1,413.1 1,349.2 1,252.7

Income tax expense (603.6) (1,242.3) (526.5) (506.1) (423.7)
Profit from continuing operations 1,955.3 2,234.8 886.6 843.1 829.0
Profit from discontinued operations – – 7.3 – 51.3

Profit for the year 1,955.3 2,234.8 893.9 843.1 880.3
Non-controlling interests (422.3) (944.6) (387.5) (341.7) (336.6)

Net earnings (profit attributable to owners of the parent) 1,533.0 1,290.2 506.4 501.4 543.7
EBITDA 2,929.7 4,836.2 2,739.2 2,438.9 2,228.3
2022 2021 2020 2019 2018

cents cents cents cents cents
Earnings per share

Basic and diluted earnings per share 155.5 130.9 51.3 50.9 55.1
242 Antofagasta
2022 2021 2020 2019 2018
cents cents cents cents cents
Dividends per share proposed in relation to the year

Ordinary dividends (interim and final) 59.7 142.5 54.7 34.1 43.8
59.7 142.5 54.7 34.1 43.8
Dividends per share paid in the year and deducted from equity 128.1 72.1 13.3 47.7 47.4
2022 2021 2020 2019 2018

$m $m $m $m $m
Consolidated cash flow statement

Cash flow from continuing operations 2,738.3 4,507.7 2,431.1 2,570.7 1,877.0
Interest paid (74.3) (60.7) (52.7) (76.3) (68.2)
Income tax paid (787.1) (776.9) (319.7) (403.6) (498.0)
Net cash from operating activities 1,876.9 3,670.1 2,058.7 2,090.8 1,310.8
Investing activities
Acquisition and disposal of subsidiaries, joint venture and associates – – – – 145.2
Dividends from associates 50.0 142.5 – 58.0 16.6
Equity investments, investing activities and recovery of VAT 1,322.4 (577.2) (893.5) (678.3) 284.2
Purchases and disposals of intangible assets, property, plant and equipment (1,879.0) (1,776.0) (1,306.6) (1,076.9) (872.2)
Interest received 29.1 7.4 12.6 41.0 26.4
Net cash used in investing activities (477.5) (2,203.3) (2,187.5) (1,656.2) (399.8)
Financing activities
Dividends paid to owners of the parent (1,262.9) (710.8) (131.1) (470.3) (466.9)
Dividends paid to preference holders and non-controlling interests (80.1) (604.6) (280.1) (400.1) (120.1)
Capital increase from non-controlling interest – – 210.0 – –
New borrowings less repayment of borrowings and leases 9.2 (634.5) 918.3 60.8 (347.1)
Net cash (used in)/generated from financing activities (1,333.8) (1,949.9) 717.1 (809.6) (934.1)
Net increase/(decrease) in cash and cash equivalents 65.6 (483.1) 588.3 (375.0) (23.1)
2022 2021 2020 2019 2018

$m $m $m $m $m
Consolidated net cash

Cash, cash equivalents and liquid investments 2,391.2 3,713.1 3,672.8 2,193.4 1,897.6
Short-term borrowings (432.5) (337.1) (603.4) (723.9) (646.0)

Medium and long-term borrowings (2,844.5) (2,835.5) (3,151.4) (2,032.9) (1,847.9)
(3,277.0) (3,172.6) (3,754.8) (2,756.8) (2,493.9)
Net (debt)/cash at the year-end (885.8) 540.5 (82.0) (563.4) (596.3)
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Other Information
Production statistics
Production Sales Net cash costs R ea lised prices

2 02 2 2021 2 02 2 2021
Production and sales volumes, realised prices and cash ‘ 000 ‘000 ‘ 000 ‘000 2 02 2 2021 2 02 2 2021
costs by mine tonnes tonnes tonnes tonnes ‘ 0$/lb 00$/lb $/lb ‘0$/lb
Copper
Los Pelambres 275.0 324.7 271.2 324.5 1.10 0.89 3.76 4.54
Centinela 247.5 274.2 246.1 276.1 1.75 1.13 3.89 4.31
Antucoya 79.2 78.6 80.8 80.4 2.50 2.04 3.95 3.94
Zaldívar (attributable basis – 50%) 44.5 44.0 44.4 44.6 2.39 2.39 – –
Group total 646.2 721.5 642.5 725.6 1.61 1.20 3.84 4.37
Group weighted average (net cash costs)
Group weighted average (excluding treatment
and refining charges and before by-products) 2.05 1.68
Group weighted average (before by-product credits) 2.19 1.79
Cash costs at Los Pelambres comprises

Cash costs before by-product credits 1.84 1.59
By-product credits (principally molybdenum and
gold) (0.74) (0.70)
Net cash costs 1.10 0.89
Cash cost at Centinela comprises

Cash costs before by-product credits 2.44 1.87
By-product credits (principally gold) (0.69) (0.74)
Net cash costs 1.75 1.13
LME average 4.00 4.23
Production Sales Realised prices

2022 2021 2022 2021
‘000 ‘000 ‘000 ‘000 2022 2021
ounces ounces ounces ounces $/oz $/oz
Gold
Los Pelambres 43.1 53.2 42.3 51.1 1,785 1,783
Centinela 133.7 199.0 132.3 193.5 1,806 1,789
Group total 176.8 252.2 174.6 244.6 1,801 1,788
Market average price 1,800 1,799
‘000 ‘000 ‘000 ‘000

tonnes tonnes tonnes tonnes $/lb $/lb
Molybdenum
Los Pelambres 7.2 9.2 6.8 9.2 20.9 17.5
Centinela 2.4 1.3 2.4 1.2 20.5 17.2
Group total/average realised price 9.6 10.5 9.2 10.4 20.8 17.4
Market average price 18.7 15.9
244 Antofagasta
/ Ore reserves and mineral resources estimates
Ore reserves and mineral resources

estimates
At 31 December 2022
Introduction An ‘Indicated Mineral Resource’ is that part of a Mineral Resource for

The ore reserves and mineral resources estimates, presented in this which tonnage, densities, shape, physical characteristics, grade and
report, comply with the requirements of the Australasian Code for mineral content can be estimated with a reasonable level of confidence.
Reporting of Exploration Results, Mineral Resources and Ore Reserves It is based on exploration, sampling and testing information gathered
2012 edition (the JORC Code) which has been used by the Group as through appropriate techniques from locations such as outcrops,
minimum standard for the preparation and disclosure of the information trenches, pits, workings and drill holes. The locations are too widely
contained herein. The definitions and categories of ore reserves or inappropriately spaced to confirm geological and/or grade continuity
and mineral resources are set out below. but are spaced closely enough for continuity to be assumed.
The information on ore reserves and mineral resources was prepared A ‘Measured Mineral Resource’ is that part of a Mineral Resource for
by or under the supervision of Competent Persons as defined in the which tonnage, densities, shape, physical characteristics, grade and
JORC Code. The Competent Persons have sufficient experience relevant mineral content can be estimated with a high level of confidence. It is
to the style of mineralisation and type of deposit under consideration based on detailed and reliable exploration, sampling and testing
and to the activity which they are undertaking. The Competent Persons information gathered through appropriate techniques from locations
consent to the inclusion in this report of the matters based on their such as outcrops, trenches, pits, workings and drill holes. The locations
information in the form and context in which it appears. The Competent are spaced closely enough to confirm geological and grade continuity.
Person for Exploration Results and Mineral Resources is Osvaldo Galvez An ‘Ore Reserve’ is the economically mineable part of a Measured and/
(CP, Chile), Deputy Manager of Mineral Resource Evaluation for or Indicated Mineral Resource. It includes diluting materials and
Antofagasta Minerals SA. The Competent Person for Ore Reserves allowances for losses, which may occur when the material is mined.
is Sofia Orellana (CP, Chile), Deputy Manager of Long-Term Mining Appropriate assessments and studies have been carried out and include
Planning for Antofagasta Minerals SA. realistic consideration on modifying factors such as mining method,
The Group’s operations and projects are subject to a comprehensive metallurgical process and economic, marketing, legal, environmental,
programme of audits aimed at providing assurance in respect of ore social and governmental factors. These assessments demonstrate at the
reserves and mineral resources estimates. The audits are conducted by time of reporting that extraction could reasonably be justified. Ore
suitably qualified Competent Persons from within an operation, another Reserves are sub-divided in order of increasing confidence into
operation of the Company or from independent consultants. The ore Probable Ore Reserves and Proved Ore Reserves.
reserves and mineral resources estimates are the total reserves and A ‘Probable Ore Reserve’ is the economically mineable part of an
resources, with the Group’s attributable share for each mine shown in Indicated, and in some circumstances, a Measured Mineral Resource.
the ‘Attributable Tonnage’ column. The Group’s economic interest in It includes diluting materials and allowances for losses which may occur
each mine is disclosed in the notes following the estimates on pages when the material is mined. Appropriate assessments and studies have
254-255. The totals in the table may include some small apparent been carried out and include realistic consideration on modifying factors
differences due to rounding. such as mining method, metallurgical process and economic, marketing,
Definitions and categories of ore reserves and mineral legal, environmental, social and governmental factors. These
resources assessments demonstrate at the time of reporting that extraction
A ‘Mineral Resource’ is a concentration or occurrence of material of could reasonably be justified.
intrinsic economic interest in or on the Earth’s crust in such form, quality A ‘Proved Ore Reserve’ is the economically mineable part of a Measured
and quantity that there are reasonable prospects for eventual economic Mineral Resource. It includes diluting materials and allowances for losses
extraction. The location, quantity, grade, geological characteristics and which may occur when the material is mined. Appropriate assessments
continuity of a Mineral Resource are known, estimated or interpreted and studies have been carried out and include realistic consideration on
from specific geological evidence and knowledge. Mineral Resources are modifying factors such as mining method, metallurgical process and
sub-divided, in order of increasing geological confidence, into Inferred, economic, marketing, legal, environmental, social and governmental
Indicated and Measured categories. factors. These assessments demonstrate at the time of reporting that
An ‘Inferred Mineral Resource’ is that part of a Mineral Resource for extraction could reasonably be justified.
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 and/or 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.

Other Information
/ Ore reserves and mineral resources estimates continued
Ore reserves estimates

Tonnage Copper Molybdenum Gold Attributable Tonnage
(millions of tonnes) (%) (%) (g/tonne) (millions of tonnes)
Group Subsidiaries 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021
Ore reserves
Los Pelambres (see note (a))

Proved 574.8 612.3 0.60 0.60 0.020 0.020 0.05 0.05 344.9 367.4
Probable 330.6 343.8 0.57 0.57 0.020 0.019 0.05 0.05 198.4 206.3
Total 905.5 956.1 0.59 0.59 0.020 0.020 0.05 0.05 543.3 573.7
Centinela (see note (b))
Centinela Cathodes (oxides)
Proved 59.1 76.4 0.50 0.54 41.4 53.5
Probable 215.4 222.9 0.33 0.34 150.8 156.1
Subtotal 274.5 299.3 0.37 0.39 192.1 209.5
Centinela Concentrates
(sulphides)
Proved 509.2 545.6 0.44 0.45 0.012 0.012 0.17 0.17 356.5 381.9
Probable 1,203.6 1,138.7 0.38 0.39 0.012 0.013 0.12 0.12 842.5 797.1
Subtotal 1,712.8 1,684.3 0.40 0.41 0.012 0.012 0.13 0.14 1,198.9 1,179.0
Proved 568.3 622.0 0.45 0.46 397.8 435.4
Probable 1,418.9 1,361.6 0.38 0.38 993.2 953.1
Total 1,987.2 1,983.6 0.40 0.40 1,391.1 1,388.5
Antucoya (see note (c))
Proved 436.2 435.9 0.33 0.33 305.3 305.1
Probable 281.4 309.6 0.29 0.30 197.0 216.7
Total 717.6 745.5 0.31 0.32 502.3 521.9
Total Group Subsidiaries 3,610.3 3,685.3 0.43 0.43 2,436.7 2,484.1

Group Joint Ventures 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021
Ore reserves
Zaldívar (see note (n))

Proved 337.9 366.6 0.44 0.45 169.0 183.3
Probable 75.2 84.3 0.31 0.34 37.6 42.1
Total 413.2 450.8 0.42 0.43 206.6 225.4
Total Group 4,023.5 4,136.2 0.43 0.43 2,643.3 2,709.5

Mineral resources estimates (including ore reserves)
Los Pelambres (see note (a))

Sulphides
Measured 1,054 1,093 0.57 0.58 0.020 0.020 0.05 0.05 632.6 656.1
Indicated 2,121 2,135 0.52 0.52 0.016 0.016 0.05 0.05 1,272.9 1,281.0
Measured + Indicated 3,176 3,228 0.54 0.54 0.018 0.018 0.05 0.05 1,905.5 1,937.1
Inferred 2,780 2,729 0.46 0.46 0.016 0.016 0.06 0.06 1,667.7 1,637.4
Total 5,955 5,957 0.50 0.50 0.017 0.017 0.05 0.06 3,573.2 3,574.5
Los Pelambres total
Measured 1,054 1,093 0.57 0.58 0.020 0.020 0.05 0.05 632.6 656.1
Indicated 2,121 2,135 0.52 0.52 0.016 0.016 0.05 0.05 1,272.9 1,281.0
Inferred 2,780 2,729 0.46 0.46 0.016 0.016 0.06 0.06 1,667.7 1,637.4
Total 5,955 5,957 0.50 0.50 0.017 0.017 0.05 0.06 3,573.2 3,574.5
Centinela (see note (b))
Centinela Cathodes (oxides)
Measured 101 110 0.47 0.52 70.7 76.7
Indicated 297 316 0.32 0.32 207.6 221.3
Measured + Indicated 398 426 0.36 0.37 278.3 298.0
Inferred 15 16 0.33 0.33 10.6 11.3
Subtotal 413 442 0.36 0.37 288.9 309.3
Centinela Concentrates
(sulphides)
Measured 913 956 0.48 0.48 0.014 0.013 0.19 0.19 639.4 669.4
Indicated 1,935 1,903 0.37 0.37 0.013 0.013 0.12 0.12 1,354.6 1,332.3
Inferred 1,789 1,233 0.29 0.30 0.011 0.011 0.08 0.08 1,252.2 862.7
Subtotal 4,637 4,092 0.36 0.38 0.012 0.013 0.12 0.12 3,246.2 2,864.5
Centinela total
Measured 1,014 1,066 0.48 0.49 710.1 746.2
Indicated 2,232 2,220 0.36 0.36 1,562.2 1,553.6
Measured + Indicated 3,246 3,285 0.40 0.40 2,272.2 2,299.8
Inferred 1,804 1,249 0.29 0.30 1,262.9 874.0
Total 5,050 4,534 0.36 0.38 3,535.1 3,173.8

Other Information
Mineral resources estimates (including ore reserves) continued

Antucoya (see note (c))

Oxides
Measured 463.7 465.4 0.32 0.33 324.6 325.7
Indicated 348.5 388.9 0.29 0.30 244.0 272.2
Measured + Indicated 812.3 854.3 0.31 0.31 568.6 598.0
Inferred 302.3 337.4 0.26 0.26 211.6 236.2
Total 1,114.6 1,191.6 0.30 0.30 780.2 834.1
Antucoya total
Measured 463.7 465.4 0.32 0.33 324.6 325.7
Indicated 348.5 388.9 0.29 0.30 244.0 272.2
Inferred 302.3 337.4 0.26 0.26 211.6 236.2
Total 1,114.6 1,191.6 0.30 0.30 780.2 834.1
Polo Sur (see note (d))
Oxides
Measured 46.6 32.4 0.45 0.49 46.6 32.4
Indicated 59.7 69.5 0.38 0.40 59.7 69.5
Inferred 6.2 6.6 0.30 0.41 6.2 6.6
Subtotal 112.6 108.5 0.41 0.43 112.6 108.5
Sulphides
Measured 257.0 281.4 0.39 0.39 0.007 0.007 0.07 0.07 257.0 281.4
Indicated 678.2 654.9 0.33 0.34 0.007 0.006 0.05 0.05 678.2 654.9
Measured + Indicated 935.2 936.4 0.35 0.35 0.007 0.006 0.06 0.06 935.2 936.4
Inferred 598.0 612.1 0.27 0.27 0.006 0.005 0.04 0.04 598.0 612.1
Subtotal 1,533.2 1,548.5 0.32 0.32 0.006 0.006 0.05 0.05 1,533.2 1,548.5
Polo Sur total
Measured 303.7 313.8 0.40 0.40 303.7 313.8
Indicated 737.9 724.5 0.34 0.34 737.9 724.5
Measured + Indicated 1,041.6 1,038.3 0.36 0.36 1,041.6 1,038.3
Inferred 604.2 618.7 0.27 0.27 604.2 618.7
Total 1,645.8 1,657.0 0.32 0.33 1,645.8 1,657.0
Penacho Blanco (see note (e))
Oxides
Measured
Indicated
Measured + Indicated
Inferred 18.3 18.3 0.29 0.29 9.3 9.3
Subtotal 18.3 18.3 0.29 0.29 9.3 9.3
Sulphides
Measured
Indicated
Inferred 337.4 321.9 0.38 0.38 0.05 0.05 172.1 164.2
Subtotal 337.4 321.9 0.38 0.38 0.05 0.05 172.1 164.2
Penacho Blanco total
Measured
Indicated
Inferred 355.7 340.2 0.37 0.37 181.4 173.5
Total 355.7 340.2 0.37 0.37 181.4 173.5

Mirador (see note (f))

Oxides
Measured 2.5 2.0 0.28 0.29 1.8 1.6
Indicated 26.8 22.6 0.27 0.27 20.2 17.6
Inferred 11.1 9.7 0.26 0.27 8.9 7.6
Subtotal 40.3 34.3 0.27 0.27 30.8 26.8
Sulphides
Measured 36.0 35.4 0.33 0.34 0.006 0.006 0.12 0.12 36.0 35.4
Indicated 20.7 19.9 0.28 0.28 0.008 0.008 0.07 0.07 20.7 19.9
Inferred 5.0 4.0 0.25 0.25 0.008 0.008 0.05 0.06 5.0 4.0
Subtotal 61.8 59.2 0.31 0.31 0.007 0.007 0.10 0.10 61.8 59.2
Mirador total
Measured 38.5 37.4 0.33 0.33 37.8 36.9
Indicated 47.5 42.5 0.27 0.28 40.9 37.5
Inferred 16.1 13.7 0.26 0.26 13.9 11.6
Total 102.1 93.5 0.29 0.30 92.6 86.0

Other Information

Los Volcanes (see note (g))
Oxides
Measured
Indicated
Inferred 30.8 30.8 0.31 0.31 15.7 15.7
Subtotal 30.8 30.8 0.31 0.31 15.7 15.7
Sulphides
Measured
Indicated
Inferred 1,880.0 1,873.4 0.50 0.50 0.011 0.011 958.8 955.4
Subtotal 1,880.0 1,873.4 0.50 0.50 0.011 0.011 958.8 955.4
Los Volcanes total
Measured
Indicated
Inferred 1,910.8 1,904.2 0.50 0.50 974.5 971.1
Total 1,910.8 1,904.2 0.50 0.50 974.5 971.1
Brujulina (see note (h))
Oxides
Measured
Indicated
Inferred 88.0 87.2 0.49 0.49 44.9 44.5
Total 88.0 87.2 0.49 0.49 44.9 44.5
Brujulina total
Measured
Indicated
Inferred 88.0 87.2 0.49 0.49 44.9 44.5
Total 88.0 87.2 0.49 0.49 44.9 44.5
Sierra (see note (i))
Oxides
Measured
Indicated
Inferred 52.3 52.0 0.68 0.69 52.3 52.0
Total 52.3 52.0 0.68 0.69 52.3 52.0
Sierra total
Measured
Indicated
Inferred 52.3 52.0 0.68 0.69 52.3 52.0
Total 52.3 52.0 0.68 0.69 52.3 52.0
Encierro (see note (j))
Sulphides
Measured
Indicated
Inferred 522.3 0.65 0.007 0.22 295.3
Subtotal 522.3 0.65 0.007 0.22 295.3
Encierro total
Measured
Indicated
Inferred 522.3 0.65 0.007 0.22 295.3
Total 522.3 0.65 0.007 0.22 295.3

Tonnage Copper Molybdenum Silver Attributable Tonnage
Cachorro (see note (k))

Oxides
Measured
Indicated 12.7 1.15 12.7
Measured + Indicated 12.7 1.15 12.7
Inferred 24.8 12.4 0.92 1.23 24.8 12.4
Subtotal 37.6 12.4 1.00 1.23 37.6 12.4
Sulphides
Measured
Indicated 36.7 1.54 6.21 36.7
Measured + Indicated 36.7 1.54 6.21 36.7
Inferred 168.2 129.2 1.19 1.21 3.49 168.2 129.2
Subtotal 204.9 129.2 1.25 1.21 3.98 204.9 129.2
Cachorro total
Measured
Indicated 49.4 1.44 49.4
Measured + Indicated 49.4 1.44 49.4
Inferred 193.0 141.6 1.15 1.21 193.0 141.6
Total 242.5 141.6 1.21 1.21 242.5 141.6

Other Information

Tonnage Copper Nickel TPM Attributable Tonnage
(millions of tonnes) (%) (%) (g/tonne Au+Pt+Pd) (millions of tonnes)
Twin Metals (see note (m))

Maturi
Measured 291.4 291.4 0.63 0.63 0.20 0.20 0.57 0.57 224.6 224.6
Indicated 818.3 818.3 0.57 0.57 0.18 0.18 0.57 0.57 771.6 771.6
Measured + Indicated 1,109.7 1,109.7 0.59 0.59 0.19 0.19 0.57 0.57 996.1 996.1
Inferred 534.1 534.1 0.50 0.50 0.16 0.16 0.57 0.57 483.2 483.2
Subtotal 1,643.8 1,643.8 0.56 0.56 0.18 0.18 0.57 0.57 1,479.3 1,479.3
Maturi South West
Measured
Indicated 93.1 93.1 0.48 0.48 0.17 0.17 0.31 0.31 65.2 65.2
Inferred 29.3 29.3 0.43 0.43 0.15 0.15 0.26 0.26 20.5 20.5
Subtotal 122.4 122.4 0.47 0.47 0.17 0.17 0.30 0.30 85.7 85.7
Birch Lake
Measured
Indicated 90.4 90.4 0.52 0.52 0.16 0.16 0.87 0.87 63.3 63.3
Inferred 217.0 217.0 0.46 0.46 0.15 0.15 0.64 0.64 151.9 151.9
Subtotal 307.4 307.4 0.48 0.48 0.15 0.15 0.70 0.70 215.2 215.2
Spruce Road
Measured
Indicated
Inferred 435.5 435.5 0.43 0.43 0.16 0.16 304.8 304.8
Subtotal 435.5 435.5 0.43 0.43 0.16 0.16 304.8 304.8
Twin Metals total
Measured 291.4 291.4 0.63 0.63 0.20 0.20 0.57 0.57 224.6 224.6
Indicated 1,001.8 1,001.8 0.56 0.56 0.18 0.18 0.57 0.57 900.0 900.0
Measured + Indicated 1,293.2 1,293.2 0.57 0.57 0.18 0.18 0.57 0.57 1,124.6 1,124.6
Inferred 1,215.9 1,215.9 0.47 0.47 0.16 0.16 0.37 0.37 960.4 960.4
Total 2,509.1 2,509.1 0.52 0.52 0.17 0.17 0.47 0.47 2,085.0 2,085.0
Group subsidiaries
Inferred 9,844.2 8,688.5 0.44 0.44 5,720.9 5,656.3
Group Subsidiaries total 19,548.6 18,467.8 0.45 0.45 12,793.2 12,781.2

Group Join Ventures 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021
Zaldivar (see note (n))

Oxides & Secondary Sulphides
Measured 606.8 660.5 0.40 0.40 303.4 330.2
Indicated 124.8 168.7 0.29 0.30 62.4 84.4
Inferred 14.0 23.0 0.35 0.30 7.0 11.5
Total 745.6 852.2 0.38 0.38 372.8 426.1
Primary Sulphides
Measured 113.8 119.5 0.41 0.41 56.9 59.8
Indicated 265.6 309.8 0.40 0.40 132.8 154.9
Inferred 25.2 28.3 0.37 0.37 12.6 14.1
Subtotal 404.6 457.6 0.40 0.40 202.3 228.8
Zaldívar total
Measured 720.6 780.0 0.40 0.40 360.3 390.0
Indicated 390.4 478.5 0.37 0.36 195.2 239.3
Measured + Indicated 1,111.0 1,258.5 0.39 0.39 555.5 629.3
Inferred 39.2 51.3 0.37 0.34 19.6 25.7
Group Joint Ventures total 1,150.2 1,309.9 0.39 0.38 575.1 654.9

Total Group 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021

Inferred 9,883.4 8,739.8 0.44 0.44 6,481.7 5,746.7
Total 20,698.8 19,777.7 0.45 0.44 14,077.9 13,448.0

Other Information
Notes to ore reserves and mineral resources estimates

The ore reserves mentioned in this report were determined considering specific cut-off grades for each mine and using a long-term copper price
of $3.30/lb ($3.10/lb in 2021), $13.00/lb molybdenum ($9.50/lb in 2021) and $1,600/oz gold ($1,500/oz in 2021), 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 $3.75/lb ($3.60/lb in 2021). Mineralisation estimated outside these pit shells is not included in the resource figures.
Group policy on auditing of resource and reserve estimates is that prior to first publication, an independent external audit is done. External audits are
also done on resources and reserves for any material changes (incorporation of a significant amount of drillhole information, for instance) or every
three to five years, whichever comes first. All the resource models that support the resource and reserve estimates have been audited as per Group
policy, with audits carried out during 2022 on the Cachorro and Polo Sur resource models. All resource and reserve estimates have been found
to comply with the JORC Code (2012).
a) Los Pelambres
Los Pelambres is 60% owned by the Group. The cut-off grade applied to the determination of mineral resources is 0.35% copper, while the cut-off
grade applied for ore reserves is variable over 0.35% copper. Ore Reserves decreased in 51 million tonnes due principally to depletion in the period
and reflects the remaining capacity of the existing tailing dams, limiting the amount of mineral resource that can be converted into ore reserves.
Mineral resources decreased overall by a net 2 million tonnes, including depletion, higher mineral prices and stockpiles.
b) Centinela (Concentrates and Cathodes)
Centinela is 70% owned by the Group and consists of Centinela Concentrates (Esperanza + Esperanza Sur and Encuentro Sulphide) and Centinela
Cathodes (Tesoro Central and Tesoro Sur, oxide deposits, including the oxide portion of the Mirador, Encuentro and Llano deposits). The cut-off grade
applied to the determination of ore reserves for Centinela Concentrates is 0.15% equivalent copper, with 0.15% copper used as a cut-off grade for
mineral resources. The cut-off grades used at Centinela Cathodes are 0.20% copper for ore reserves and 0.15% copper for mineral resources.
The Centinela Concentrates ore reserves have increased by a net 28 million tonnes, due mainly to the increase in metal prices. Centinela Concentrates
mineral resources increased by a net 495 million tonnes, incorporating ore material that connects former Esperanza and Esperanza Sur resources,
due mainly to higher product and by-product prices. The Centinela Cathodes ore reserves have decreased by a net 25 million tonnes, due mainly to
depletion in the period. Centinela Cathodes ore reserves are made up of 160 million tonnes at 0.45% copper of heap leach ore and 114 million tonnes
at 0.26% copper of ROM ore. Centinela Cathodes mineral resources decreased by a net 29 million tonnes, due mainly to depletion and higher mining
and processing costs.
c) Antucoya
Antucoya is 70% owned by the Group. The ore reserve cut-off grade is 0.16% copper, while the cut-off grade for mineral resources is 0.15% copper.
Ore reserves have decreased by a net 28 million tonnes, due mainly to depletion in the period, partially compensated by an increase in ore stockpiles.
For 2022 the mineral resource model has been updated with 51 drill holes for a total of 10,000 metres. Mineral resources have decreased by a net
77 million tonnes, due mostly to depletion, new drilling data and higher mining costs.
d) Polo Sur
Polo Sur is 100% owned by the Group. The cut-off grade applied to the determination of mineral resources for both oxides and sulphides is 0.20%
copper. The 2022 resource model has been updated with 105 drill holes for a total of 17,000 metres. Mineral resources have decreased by a net
11 million tonnes, due to the resource model update and the use of higher mining and processing costs in pit optimisation.
e) Penacho Blanco
Penacho Blanco is 51% owned by the Group. The cut-off grade applied to the determination of mineral resources for both oxides and sulphides
is 0.20% copper. For 2022 the resource model has not been updated. The mineral resources have increased by a net 15 million tonnes, due mainly
to the increase in metal prices.
f) Mirador
Mirador is 100% owned by the Group. A portion of Mirador Oxides is subject to an agreement between the Group and Centinela, whereby Centinela
purchased the rights to mine the oxide ore reserves within an identified area. The mineral resources for Mirador Oxides subject to the agreement with
Centinela are included in the Centinela Cathodes section. The resources not subject to the agreement are reported in this section. The cut-off grade
applied to the determination of the mineral resources for oxides is 0.15% copper and for sulphides is 0.20% copper. The mineral resources have
increased by a net 9 million tonnes, due mainly to the increase in metal prices.
g) Los Volcanes
Los Volcanes is 51% owned by the Group. The cut-off grade applied to the determination of mineral resources is 0.20% copper. For 2022 the mineral
resource model has not been updated. The mineral resources have increased by a net 7 million tonnes, due mainly to the increase in metal prices.
h) Brujulina
Brujulina is 51% owned by the Group. The cut-off grade applied to the determination of mineral resources is 0.30% copper. For 2022 the mineral
resource model has not been updated. The mineral resources have increased by a net 1 million tonnes, due mainly to the increase in metal prices.
i) Sierra
Sierra is 100% owned by the Group. The cut-off grade applied to the determination of mineral resources is 0.30% copper. For 2022 the mineral
resource model has not been updated. The mineral resources have increased by a net 0.3 million tonnes, due mainly to the increase in metal prices.
j) Encierro
Encierro is 56.55% owned by the Group. This is Encierro´s maiden mineral resource report, supported by 60,800 metres of drilling from 60 drill
holes. In order to ensure that the stated mineral resources represent mineralisation that have “reasonable prospects for eventual economic extraction”
(JORC code), Encierro’s mineral resources are stated above cut-offs of 0.50% copper for sulphides. All reported mineral resources have been defined
as inferred. Mineralisation estimated below a 0.5% cut-off is not included in the mineral resource figures.

k) Cachorro
Cachorro is 100% owned by the Group. The cut-off grade applied to the determination of mineral resources for both oxides and sulphides is 0.50%
copper. The 2022 resource model has been updated included new drilling data and two newly discovered areas, adding 170 drill holes for a total
of 108,000 metres. Mineral resources have increased by a net 100 million tonnes, due to the resource model update. Resources have been defined
as indicated and inferred material and considering a copper price of $3.75.
m) Twin Metals Minnesota LLC
Twin Metals Minnesota LLC (“Twin Metals”) is 100% owned by the Group. Twin Metals has a 70% interest in the Birch Lake Joint Venture (“BLJV”),
which holds the Birch Lake, Spruce Road and Maturi Southwest deposits, as well as a portion of the main Maturi deposit. With these interests taken
into consideration, Twin Metals owns 83.1% of the mineral resource. For 2022 the mineral resource model has not been updated. The cut-off grade
applied to the determination of mineral resources is 0.3% copper, which when combined with credits from nickel, platinum, palladium and gold, is
deemed appropriate for an underground operation. In the mineral resource table ‘TPM’ (Total Precious Metals) refers to the sum of platinum, palladium
and gold values in grammes per tonne. The TPM value of 0.57 g/tonne for the Maturi mineral resource estimate is made up of 0.15 g/tonne platinum,
0.34 g/tonne palladium and 0.08 g/tonne gold. The TPM value of 0.30 g/tonne for the Maturi Southwest mineral resource estimate is made up of
0.08 g/tonne platinum, 0.17 g/tonne palladium and 0.05 g/tonne gold. The TPM value of 0.70 g/tonne for the Birch Lake mineral resource estimate
is made up of 0.19 g/tonne platinum, 0.41 g/tonne palladium and 0.10 g/tonne gold. The Spruce Road mineral resource estimate does not include
TPM values as they were not assayed for TPMs.
In August 2022, Twin Metals filed a claim in federal court challenging the administrative actions resulting in the rejection of the preference right lease
applications (“PRLAs”), the cancellation of its federal leases 1352 and 1353, the rejection of its Mine Plan of Operations (“MPO”) and the dismissal
of the administrative appeal of the MPO rejection. That action is currently pending. The PRLAs and federal mineral leases form a significant proportion
of the mineral resources contained within Twin Metals’ current project plan. If TMM is unsuccessful having the decisions on the federal leases 1352
and 1353 and the PRLAs reversed through litigation, it will not have entitlement to the mineral resources associated with those mineral licences.
n) Zaldívar
Zaldívar is 50% owned by the Group. Heap leaching (HL) and dump leaching (DL) materials are defined based on total copper cut-off grades.
The cut-off grade applied to the determination of ore reserves for Heap Leach ore is 0.30% copper, while the cut-off grade for Dump Leach material
is 0.21% copper. Ore reserves have decreased by a net 38 million tonnes, due mainly to depletion in the period. For mineral resources the cut-off
grade is 0.18% copper for HL and 0.10% copper for DL, throughout the life of mine period. The cut-off grade applied to the primary sulphide mineral
resources is 0.3% copper. The mineral resources decreased in 160 million tonnes because of the combined effects of depletion and increased mining
and processing costs.
In the southern part of the deposit (Phase 13), the final pit impacts a portion of Minera Escondida mine property and some infrastructures owned
by third parties (road, railway, powerline and pipeline). Mining of Phase 13 is subject to agreements or easements to access these areas and relocate
the infrastructure. Phase 13 represents 22% of the Zaldívar ore reserve.
Zaldívar submitted an Environmental Impact Assessment (EIA) in 2018 which included an application to extend its water extraction and mining permits
to 2029 (with decreasing activity levels in 2030-2031). Currently, Zaldívar is permitted to extract water and mine into 2025 and 2024, respectively.
To ensure the continuity of the operation, in March 2023 Zaldívar submitted a DIA (Declaration of Environmental Impact), a more limited scope and
simplified procedure than an EIA, requesting that the mining permit be extended from 2024 to 2025 so as to expire at the same date as the current
water permit. At the same time Zaldívar withdrew the 2018 EIA application. It is expected that an alternative and updated EIA application to extend the
water and mining permits beyond 2025 will be submitted which will also include a plan for a transition from the current continental water source on
completion of the extended water permit, to either procuring water from a third party or using raw sea water. The ore reserves estimate assumes that
the requested permits will be extended to allow for the extraction of all of Zaldívar’s ore reserves. The details of the future permits or alternative water
supply arrangements could lead to a review of and, eventually, an update to, Zaldívar’s mine plan.
o) Antomin 2 and Antomin Investors
The Group has a 51% interest in two indirect subsidiaries, Antomin 2 Limited (“Antomin 2”) and Antomin Investors Limited (“Antomin Investors”),
which own several copper exploration properties in Chile’s Antofagasta Region and Coquimbo Region. These include, among others, Penacho Blanco,
Los Volcanes and Brujulina. The remaining 49% of Antomin 2 and Antomin Investors is owned by Mineralinvest Establishment (“Mineralinvest”),
a Company controlled by E. Abaroa Foundation, in which members of the Luksic family are interested. Further details are set out in Note 34(C)
to the financial statements.

Other Information
Glossary and definitions
ADS Asset Delivery System. Concentrate The product of a physical concentration

AMSA Antofagasta Minerals SA, a wholly-owned process, such as flotation or gravity
subsidiary of the Group incorporated in Chile, concentration, which involves separating
which acts as the corporate centre for the ore minerals from unwanted waste rock.
Mining division. Concentrates require subsequent processing
(such as smelting or leaching) to break down
Annual Report The Annual Report and Financial Statements or dissolve the ore minerals and obtain the
of Antofagasta plc. desired elements, usually metals.
Antucoya Minera Antucoya, a 70%-owned subsidiary Contained copper The proportion or quantity of copper contained
incorporated in Chile. in a given quantity of ore or concentrate.
Banco de Chile A commercial bank that is a subsidiary Continental Water that comes from the interior of land
of Quiñenco. water masses including rain, snow, streams, rivers,
Barrick Gold Barrick Gold Corporation, incorporated lakes and groundwater.
in Canada and our joint venture partner Copper cathode Refined copper produced by electrolytic
in Zaldívar. refining of impure copper by electrowinning.
Brownfield A development or exploration project in the Corporate The UK Corporate Governance Code is a set
project vicinity of an existing operation. Governance of principles of good corporate governance,
By-products Products obtained as a result of copper Code most of which have their own more detailed
(credits in processing. Los Pelambres and Centinela provisions published by the Financial Reporting
copper Concentrates receive credit for the gold and Council, most recently updated in 2018.
concentrates) silver content in the copper concentrate sold. Cut-off grade The lowest grade of mineralised material
Los Pelambres and Centinela also produce considered economic to process and used
molybdenum concentrate. in the calculation of ore reserves and mineral
Capex Capital expenditure. resources.
Cash costs A measure of the cost of operating production Directors The Directors of the Company.
expressed in terms of US dollars per pound EBITDA Earnings Before Interest, Tax, Depreciation
of payable copper produced. Cash costs are and Amortisation.
stated net of by-product credits and include
treatment and refining charges for EIA Environmental Impact Assessment.
concentrates for Los Pelambres and Centinela. Encuentro Copper oxide and sulphide deposit in the
Cash costs exclude depreciation, financial Centinela Mining District.
income and expenses, hedging gains and EPS Earnings per share.
losses, exchange gains and losses, and
corporation tax. Esperanza Sur Copper deposit in the Centinela Mining District.
CDP Carbon Disclosure Project. FCAB Ferrocarril de Antofagasta a Bolivia, the

corporate name of our Transport division.
Centinela Minera Centinela SA, a 70%-owned subsidiary
incorporated in Chile that holds the Centinela Flotation A process of separation by which chemicals in
Concentrates and Centinela Cathodes solution are added to finely crushed materials,
operations. some of which are attracted to bubbles and
float, while others sink, which results in the
Centinela Mining Copper district located in the Antofagasta production of concentrate.
District region of Chile, where Centinela is located.
FTSE All-Share A market-capitalisation weighted index
Chilean peso Chilean currency. Index representing the performance of all eligible
CO2e Carbon dioxide equivalent. companies listed on the London Stock
Companies Act Principal legislation for United Kingdom Exchange’s main market.
2006 Company law.
Company Antofagasta plc.

FTSE100 and A share index of the 100 or 350 companies Mineral Material of intrinsic economic interest
FTSE350 Index listed on the London Stock Exchange with the resources occurring in such form and quantity that
highest market capitalisation. there are reasonable prospects for eventual
GAAP Generally Accepted Accounting Practice or economic extraction. Mineral resources
Generally Accepted Accounting Principles, are stated inclusive of ore reserves, as defined
a collection of commonly-followed accounting by JORC.
rules and standards for financial reporting. Net cash cost Gross cash costs less by-product credits.
GHG Greenhouse Gas. Open pit Mine working or excavation that is open
Government The Government of the Republic of Chile. to the surface.
Grade A copper Highest-quality copper cathode, 99.99% pure. Ore Rock from which metal(s) or mineral(s) can
cathode be economically and legally extracted.
Greenfield The development or exploration of a new Ore grade The relative quantity, or percentage, of
project project at a previously undeveloped site. metal content in an ore body or quantity
of processed ore.
Group Antofagasta plc and its subsidiary companies
and share of joint ventures. Ore reserves Part of mineral resources for which appropriate
assessments have been carried out to
Heap-leaching A process for the recovery of copper from ore, demonstrate that at a given date extraction
or leaching generally oxides. The crushed material is laid could be reasonably justified. These include
on a slightly sloping, impermeable pad and consideration of and modification by realistically
leached by uniformly trickling a (gravity fed) assumed mining, metallurgical, economic,
chemical solution through the heaps to marketing, legal, environmental, social and
collection ponds. The metal is then recovered governmental factors.
from the solution through the SX-EW process.
Oxide and Different kinds of ore containing copper.
HPI High Potential Incident. An event that, under sulphide ores Oxide ore occurs on the weathered surface
different circumstances, might easily have of ore-rich lodes and normally results in
resulted in a serious injury or fatality. the production of cathode copper through
ICMM International Council on Mining and Metals. a heap-leaching process. Sulphide ore is an
IFRIC International Financial Reporting Standards unweathered parent ore normally treated using
Interpretations Committee. a flotation process to produce concentrate
which then requires smelting and refining
IFRS International Financial Reporting Standards.
to produce copper cathodes.
JORC The Australasian Joint Ore Reserves
Payable copper The proportion or quantity of contained
Committee.
copper for which payment is received
KPI Key performance indicator. after metallurgical deduction.
Life-of-Mine The remaining life of a mine expressed Platts A provider of energy and metals information
(“LOM”) in years, calculated by reference to scheduled and source of benchmark price assessments.
production rates (ie comparing the rate at
Porphyry A large body of rock which contains
which ore is expected to be extracted from
disseminated chalcopyrite and other sulphide
the mine to current ore reserves).
minerals. Such a deposit is mined in bulk on
LME London Metal Exchange. a large scale, generally in open pits, for copper
Los Pelambres Minera Los Pelambres, a 60%-owned and its by-products.
subsidiary incorporated in Chile.
LTIFR Lost Time Injury Frequency Rate. The number
of accidents with lost time during the year per
million hours worked.
LTIP Long Term Incentive Plan in which the Group’s
CEO, Executive Committee members and other
senior managers participate.

Other Information
/ Glossary and definitions continued
Provisional A sales term in several copper and Tailings dam or Construction used to deposit the rock waste
pricing molybdenum concentrate sale agreements tailings storage which remains as a result of the concentrating
and cathodes sale agreements that provides facility (TSF) process after the recoverable minerals have
for provisional pricing of sales at the time of been extracted in concentrate form.
shipment, with final pricing being based on the TC/RCs Treatment and refining charges, being terms
monthly average LME copper price or monthly used to set the smelting and refining charge or
average molybdenum price for specific future margin for processing copper concentrate and
periods, normally ranging from 30 to 180 normally set on either an annual or spot basis.
days after delivery to the customer.
TCFD Task Force on Climate-related Financial
Quiñenco Quiñenco SA, a Chilean financial and industrial Disclosures.
group listed on the Santiago Stock Exchange
and controlled by a foundation in which Tonne Metric tonne.
members of the Luksic family are interested. TSR Total Shareholder Return, being the movement
RCA Resolución de Calificación Ambiental, in the Company’s share price plus any
Environmental Approval Resolution. dividends paid by the Company.
Realised prices Effective sale price achieved comparing Twin Metals A copper, nickel and platinum group metals
revenues (grossed up for treatment and Minnesota underground-mining project located in
refining charges for concentrate) with sales Project Minnesota, US.
volumes. UK United Kingdom.
Reko Diq A copper-gold deposit in Pakistan, previously Underground Natural or man-made excavation under
a subsidiary of Tethyan. mine the surface of the ground.
Run-of-Mine A process for the recovery of copper from ore, US United States.
(“ROM”) typically used for low-grade ores. The mined, US dollar United States currency.
uncrushed ore is leached with a chemical
Zaldívar Compañía Minera Zaldívar SpA is a 50-50 joint
solution. The metal is then recovered from
venture with Barrick Gold and is operated by
the solution through the SX-EW process.
the Company.
SDGs The United Nations’ Sustainable Development
Goals, which were adopted by all member
states in 2015.
SERNAGEOMIN Servicio Nacional de Geología y Minería,
a government agency that provides geological
and technical advice and regulates the mining
industry in Chile.
SONAMI Sociedad Nacional de Minería. Institution that
represents the mining industry in Chile, for
large, medium and small scale, metallic and
non-metallic mining companies.
Sterling Pounds sterling, UK currency.
Stockpile Material extracted and piled for future use.
SX-EW Solvent extraction 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 solvent-extraction process
before being treated in an electrochemical
process (electrowinning) to recover
cathode copper.

Shareholder information
Currency abbreviations Dividends

$ US dollar Details of dividends proposed in relation to the year are given in the
Directors’ Report on page 168, and in Note 13 to the Financial Statements.
$000 Thousand US dollars
If approved at the Annual General Meeting, the final dividend of 50.5
$m Million US dollars
cents per share will be paid on 12 May 2023 to ordinary shareholders
£ Pound sterling that are on the register at the close of business on 21 April 2023.
£000 Thousand pounds sterling Shareholders can elect (on or before 24 April 2023) to receive this final
dividend in US dollars, Sterling or Euro, and the exchange rate, which
£m Million pounds sterling
will be applied to final dividends to be paid in Sterling or Euro, will be set
P Pence sterling as soon as reasonably practicable after that date, which is currently
C$ Canadian dollar anticipated to be on 27 April 2023.
C$m Million Canadian dollars Further details of the currency election timing and process (including
Ch$ Chilean peso the default currency of payment) are available on the Antofagasta plc
website (antofagasta.co.uk) or from the Company’s registrar,
Ch$000 Thousand Chilean pesos
Computershare Investor Services PLC on +44 37 0702 0159.
Ch$m Million Chilean pesos
Dividends are paid gross without deduction of United Kingdom income
tax. Antofagasta plc is a resident in the United Kingdom for tax purposes.
Definitions and conversion
of weights and measures Annual General Meeting
The Annual General Meeting will be held as a hybrid meeting
Lb Pound
at Church House Westminster, Dean’s Yard, London SW1P 3NZ
Oz A troy ounce and electronically by live broadcast using the Summit platform
1 troy ounce 31.1 grammes (meetnow.global/AFGAGM2023) at 2:00 pm on Wednesday 10 May
’000 m3 Thousand cubic metres 2023. The formal notice of the Annual General Meeting and
resolutions to be proposed are set out in the Notice of Annual
1 kilogramme 2.2046 pounds General Meeting.
1 tonne 2,204.6 pounds or 1,000 kilogrammes
’000 tonnes Thousand metric tonnes London Stock Exchange listing and share price
1 kilometre 0.6214 miles The Company’s shares are listed on the London Stock Exchange.
GL Gigalitre
1 megalitre Thousand cubic metres Share capital
1 GL Thousand megalitres Details of the Company’s ordinary share capital are given in Note 30
to the Financial Statements.
Chemical symbols
Cu Copper
Mo Molybdenum
Au Gold
Ag Silver

/ Shareholder information continued
Shareholder calendar 2023 Registrars

Computershare Investor Services PLC
18 January 2023 Q4 2022 Production Report
The Pavilions
21 February 2023 Full Year 2022 Results Announcement Bridgwater Road
19 April 2023 Q1 2023 Production Report Bristol
BS99 6ZY
20 April 2023 2022 Final Dividend – Ex Dividend date
United Kingdom
21 April 2023 2022 Final Dividend – Record date Tel: +44 370 702 0159
24 April 2023 2022 Final Dividend – Final date for receipt www.computershare.com
of Currency Elections
Website
27 April 2023 2022 Final Dividend – Pound sterling/ www.antofagasta.co.uk
Euro Rate set
10 May 2023 Annual General Meeting Registered office
103 Mount Street
12 May 2023 2022 Final Dividend – Payment date London
19 July 2023 Q2 2023 Production Report W1K 2TJ
10 August 2023 Half Year 2023 Results Announcement United Kingdom
Tel: +44 20 7808 0988
31 August 2023 2023 Interim Dividend – Ex Dividend date
01 September 2023 2023 Interim Dividend – Record date Santiago office
Antofagasta Minerals SA
04 September 2023 2023 Interim Dividend – Final date Av. Apoquindo 4001 – Piso 18
for receipt of Currency Elections Las Condes
07 September 2023 2023 Interim Dividend – Pound sterling/ Santiago
Euro Rate set Chile
29 September 2023 2023 Interim Dividend – Payment date Tel: +56 2 2798 7000
18 October 2023 Q3 2023 Production Report Registered number
17 January 2024 Q4 2023 Production Report 1627889
Dates are provisional and subject to change.

Designed and produced by Black Sun Plc
www.blacksunplc.com
The photography in this report was primarily supplied
by Roberto Candia.
This report is printed on paper certified in accordance with
the FSC® (Forest Stewardship Council®) and is recyclable
and acid-free.
Pureprint Ltd is FSC certified and ISO 14001 certified showing
that it is committed to all round excellence and improving
environmental performance is an important part of this
strategy. Pureprint Ltd aims to reduce at source the effect its
operations have on the environment and is committed to
continual improvement, prevention of pollution and compliance
with any legislation or industry standards.
Pureprint Ltd is a Carbon / Neutral® Printing Company.
Antofagasta plc
103 Mount Street
London
W1K 2TJ
United Kingdom
antofagasta.co.uk

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Developing mining

for a better future

Strategic Report Corporate Governance Financial Statements

Overview Applying the Code in 2022 104 Financial performance

Operating review Our reporting suite

Antofagasta plc Annual Report 2022 1

Safety Copper production2 Mineral resources3

0 0.84 646,200 20.1bn

Record safety performance, with no fatal

Water withdrawals Scope 1 and 2 emissions Growth projects

Gender diversity Total economic contribution 100%

2 Antofagasta plc Annual Report 2022

Net cash costs4 EBITDA4 Profit before tax

$1.61/lb $2,930m $2,559m

$59.7¢ $155.5¢ $59.7¢

Antofagasta plc Annual Report 2022 3

A portfolio that delivers

LOS PELAMBRES 275,000 tonnes $1.10/lb 1,144

CENTINELA 247,500 tonnes $1.75/lb 2,484

ANTUCOYA 79,200 tonnes $2.50/lb 894

ZALDÍVAR 44,500 tonnes $2.39/lb 932

TRANSPORT 7.1m tonnes 1,410

GROUP 646,200 tonnes $1.61/lb 7,4943

4 Antofagasta plc Annual Report 2022

Los Pelambres $2,559m Los Pelambres $1,473m

Antofagasta plc Annual Report 2022 5

/ Letter from the Chairman

At our core, we are

6 Antofagasta plc Annual Report 2022

are integrated into

Antofagasta plc Annual Report 2022 7

/ Letter from the Chairman continued

8 Antofagasta plc Annual Report 2022

Rising to the challenges

Antofagasta plc Annual Report 2022 9

/ Letter from the Chief Executive Officer continued

10 Antofagasta plc Annual Report 2022

Antofagasta plc Annual Report 2022 11

/ The copper market

Copper’s critical role

In 2022, copper price volatility rose to its

Copper consumption growth

12 Antofagasta plc Annual Report 2022

Volume of copper committed to in new projects each year

Copper (Mt) Copper price ($/t)

Source: Wood Mackenzie, LME

Antofagasta plc Annual Report 2022 13

/ The copper market continued

“Demand for copper is

14 Antofagasta plc Annual Report 2022

Antofagasta plc Annual Report 2022 15

Delivering value for our stakeholders

Long-term relationships Resources Responsible mining

For more information on

16 Antofagasta plc Annual Report 2022

2.8 million ounces

Evaluation Sales and marketing 1.75 tCO2e/tCu

Antofagasta plc Annual Report 2022 17

/ Our strategic framework