Antofagasta on track for solid 2012

Antofagasta said at Wednesday's annual general meeting (AGM) that it is still on track to produce around 0.7m tonnes of copper in 2012, which will be produced at an average cash cost before by-product credits of 165 cents per pound.

The Los Pelambres site remains on course to meet the firm's production forecast, while record production is expected at its El Tesoro site.

The search for a new Chief Executive Officer of the mining division is "progressing", the company said, adding that they are looking for someone to manage the next stage of the group's growth, and to meet the operational and technical challenges of the coming years.

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The group believes 2012 is set to be another strong year, supported by an "extensive portfolio of growth opportunities", particularly surrounding its existing operations in Chile.

In the statement the firm said: "Acting in a sustainable and responsible manner is core to everything we do, and we are very conscious of the environment we operate in. In Chile, three of the key issues currently facing the mining sector are energy, water and skilled labour, and we are actively involved in addressing all of these issues.

"The global economy is clearly going through an extremely challenging and unpredictable period, and this has affected commodity prices since the start of the year. Nevertheless, we continue to believe that the underlying market fundamentals for copper remain strong. On the demand side, it is a commodity which is supported both by infrastructure investment, as well as by increased consumer demand.

"On the supply side, the industry remains relatively constrained in the medium term. In these challenging and uncertain economic times, we believe that our portfolio of high-quality, low-cost assets places us in a strong position to go on delivering value."

NR