Antofagasta on track to hit copper production targets

Increased production at its Esperanza mine enabled Chilean copper miner Antofagasta to crank up copper production in the second quarter and keep its full year guidance intact.

Group copper production was 173,200 tonnes in the second quarter of 2012, a 6.3% increase compared with the previous quarter. Copper production for the whole of 2012 is still expected to be around 700,000 tonnes; at the halfway point the group was a bit behind the pace with copper production of 336,000 tonnes, up 16.55 on the first half of last year.

Gold production was 72,600 ounces in the second quarter compared with 63,500 ounces in the previous quarter. Molybdenum production at Los Pelambres was 3,400 tonnes in the quarter and totalled 6,500 tonnes in the first half of 2012. The 35.4% increase in production in first half output over the corresponding period of 2011 reflects higher ore grades.

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Group cash costs (net of by-product credits) in the April to June quarter were 99.3 cents per pound, broadly in line with the previous quarter's costs of 98.1 cents per pound. Cash costs excluding by-product credits decreased to 158.2 cents per pound in the quarter compared with 163.6 cents per pound in the first quarter of the year, mainly reflecting the impact of higher production on unit costs at Los Pelambres and Esperanza, partly offset by expected higher costs at El Tesoro. This was offset by lower by-product credits.

The closing of the agreement with Marubeni for its 30% interest in the Antucoya project was achieved on July 31st. As of June 30th, the overall project progress was 12% complete and the main engineering, procurement and construction contracts had been executed.

JH