Antofagasta Regulatory News (ANTO)

7 Nov 2006 07:00

Antofagasta PLC07 November 2006 ANTOFAGASTA PLC For immediate release - Tuesday, November 7, 2006 Minera Los Pelambres - El Mauro tailings dam project LONDON: November 7, 2006 - Antofagasta plc ("Antofagasta") reports that lastFriday (3 November 2006) the Court of Appeals of Santiago upheld a claimpresented by community organisations in the Pupio Valley which forms part of themunicipality of Los Vilos against the award of some permits by the Chilean waterauthority, the Direccion General de Aguas, in November 2005 for certain aspectsof the construction of the El Mauro tailings dam by Antofagasta's 60%-ownedsubsidiary, Minera Los Pelambres ("Los Pelambres"). Following the Court of Appeals decision, Los Pelambres has issued the followingstatement: • During a lengthy planning process for the El Mauro dam which began in 2003, Los Pelambres gave detailed consideration to the environmental impact of the project and focused especially on issues of safety, the proper use of the natural water resources, and respect for third-party water rights. These issues were fully reviewed by the relevant governmental technical and environmental agencies. The regional environmental authority of Coquimbo (COREMA) approved the necessary Environment Impact Assessment in April 2004 and this decision was fully ratified by the national environmental authority (CONAMA) at the end of 2004. Los Pelambres subsequently applied for and was granted all the necessary sectoral permits from the relevant governmental authorities. Los Pelambres believes that it has received all the technical and legal permits necessary to undertake development of the El Mauro project, which is now 58% complete. • As one of the parties affected by the decision of the Court of Appeals made against the Direccion General de Aguas on Friday 3 November, Los Pelambres is preparing an appeal to the Chilean Supreme Court to seek a reversal of this decision. • Pending a definitive decision on this issue, Los Pelambres is continuing with the planned development of the project. Enquiries - London Enquiries - SantiagoAntofagasta plc Antofagasta Minerals S.A.Tel: +44 20 7808 0988 Tel +562 377 5000www.antofagasta.co.uk Francisco Velsoso Email: fveloso@aminerals.cl Desmond O'ConorEmail: doconor@antofagasta.co.uk Issued byHussein Barma Bankside ConsultantsEmail: hbarma@antofagasta.co.uk Tel: +44 20 7367 8873 Keith Irons Email: keith@bankside.com This information is provided by RNS The company news service from the London Stock Exchange