Antofagasta Regulatory News (ANTO)

8 May 2008 07:00

Antofagasta PLC07 May 2008 For immediate release Antofagasta plc Update on Mauro tailings dam litigation London, 7 May 2008 Antofagasta plc announces that, in accordance with a conciliation procedure ofthe Chilean Supreme Court, Minera Los Pelambres and the claimants to thelitigation concerning the validity of a sectoral permit issued in 2005 by theChilean Water Authority (Direccion General de Aguas) for the construction of theMauro tailings dam have reached a binding settlement concerning that and otherrelated cases relating to water rights. The Chilean Water Authority is expectedto agree to the settlement which is also expected to be approved by the SupremeCourt shortly. As explained below resolution of a separate case concerning landownership remains outstanding. Under the terms of this settlement, which was signed today before the SupremeCourt, the claimants have agreed to withdraw their claims in this and otherrelated cases concerning water rights which have been brought against variousgovernmental authorities and (in one case) directly against Minera LosPelambres. The claimants have also acknowledged that the Chilean Water Authorityis the competent authority to issue the relevant sectoral permit. The ChileanWater Authority is expected to consent in this settlement to the withdrawal ofthe cases to which it is a party and the governmental authorities involved inthe other cases are also expected to consent shortly. As part of the settlement,Minera Los Pelambres will pay an amount of US$23 million to the claimants inorder to acquire an area of land of approximately 8,000 hectares and relatedwater rights adjacent to the Mauro tailings dam belonging to one of theclaimants and for the settlement of the various cases. Payment will be made tothe claimants when all these cases have been formally withdrawn and ownership ofthe land and water rights has been acquired. The settlement of these claims, which also includes the lifting of theinjunction of 24 August 2007 in which Minera Los Pelambres was ordered tosuspend certain works which would directly affect the Pupio stream at El Mauro,will enable Minera Los Pelambres to complete construction of the Mauro tailingsdam, which is currently over 98 per cent complete. The Mauro tailings dam willreplace the existing Quillayes tailings dam which is expected to reach capacityin early 2009. This settlement does not include the case concerning land ownership involvingdifferent claimants heard by a first instance court in Santiago in April 2007and in which the court held that operation of the tailings dam cannot for themoment commence. Minera Los Pelambres participated in this trial to protect itsinterest and has appealed against this decision to the Court of Appeals inSantiago. The Group remains confident that Minera Los Pelambres' legal title tothe land in question will be upheld on appeal. Enquiries - London Enquiries - Santiago Antofagasta plc Antofagasta Minerals S.A.Tel: +44 20 7808 0988 Tel: + 56 2 798 7000www.antofagasta.co.uk Francisco VelosoDesmond O'Conor Tel: +56 2 798 7008Email: doconor@antofagasta.co.uk Email: fveloso@aminerals.cl Hussein BarmaEmail: hbarma@antofagasta.co.uk Press Enquiries - London Bankside ConsultantsTel: +44 20 7367 8873 / +44 7885 356 639Tel: +44 20 7367 8874 / +44 7811 168 822 Keith IronsEmail: keith@bankside.com Oliver WintersEmail: oliver.winters@bankside.com This information is provided by RNS The company news service from the London Stock Exchange