Could you provide an update on Antofagasta’s recent operations?

Antofagasta's main operations, four of them in Chile, are running according to our plans. The water system and the fourth milling line at Los Pelambres are almost complete. This project provides a source of seawater for Los Pelambres, and will bring our usage of recirculated water or water from the sea to around 90% by 2025.

Can you discuss potential improvements at Centinela?

Our growth strategy is primarily based on our ability to grow organically, focusing on two main districts, Los Pelambres and Centinela. Centinela, in northern Chile, has a large mineral inventory, and we plan to build a second concentrator to increase production by about 170,000 t/y of fine copper. Centinela, operational since 2011, is a well-established, innovative, and sustainable operation. It runs on renewable energy, uses a fleet of autonomous trucks, and employs thickened tailings, which is relatively novel in the copper industry. After board approval, we hope to increase our production potential to close to 900,000 t/y of fine copper by combining efforts at Los Pelambres and Centinela. These opportunities make us well-positioned to grow and develop the company based on our mineral inventory, meaning we can supply the extra copper the world needs at a time when it is most required.

How do decreasing ore grades impact Chile?

This presents a challenge – mines getting deeper, distances getting longer, and associated costs increasing. We have been implementing various strategies to counteract these effects. Firstly, we have transitioned our energy sources from fossil fuels to renewable energy, which has environmental benefits and provides a structural cost advantage. Our mines, particularly Los Pelambres and Centinela, yield by-products, including gold, molybdenum and silver. Hence, we strive to recover as much as possible of these minerals. We built a plant for a molybdenum recovery at Centinela and have plans to expand that to extract all metals found alongside copper, ultimately enhancing our competitiveness. Finally, we are transforming the way we mine copper by establishing remote operating centres, rolling out autonomous vehicles and introducing more digital technology. All these innovations help lower our costs and compensate for lower grades. One point to add is that at Antofagasta we have permanently moved to a hybrid way of working, which in our experience has led to higher levels of productivity at lower cost, as well as improving work-life balance for our people.

What is Antofagasta's approach to community engagement?

Community engagement is a cornerstone of our operations, and creating value for communities is pivotal. We have engaged with them and established partnerships over time, learning to come together and resolve disagreements constructively whenever they arise. One example of our efforts is the inauguration of a center for technical education at Los Vilos, near Los Pelambres, which provides local higher education where previously there weas none. We also launched a medical services center in one of the communities, reducing the need for residents to travel long distances for emergency medical services or treatment. Our most innovative community project is around digital skills, where we train people and provide the tools to help people make better use of digital technologies.

Could you provide an overview of Antofagasta's strategies over the next few years?

At Antofagasta, safety remains our top priority; we are proud of our excellent safety performance and are committed to maintaining this standard. Our strategic focus is on organic growth projects, such as the completion of the desalination project at Los Pelambres and looking towards making a decision on the construction of the second concentrator at Centinela. These growth initiatives are crucial as we have the permits, teams, and mineral resources necessary for expansion.

Sustainability is another crucial component of our strategy. We are committed to reducing CO2 emissions further, and this year, we plan to report more granular data on Scope 3 emissions, considering setting a target for them as well. Working closely with our communities is also central to our strategy, focusing on projects that deliver social value. Overall, we aim to continue developing our business through organic growth and meeting the increasing global demand for copper.