CONTENTS

01 04 A PARTNER FOR CLEAR RULES YOUR INVESTMENT FOR FOREIGN INVESTMENTS 02 05 ENAMI’S PROJECTS COCHILCO STUDIES

03 06 GEOLOGICAL TRUST INFORMATION FROM SERNAGEOMIN 01 A PARTNER FOR YOUR INVESTMENT 3

A PARTNER FOR YOUR INVESTMENT

Chile is the best evaluated economy in Latin America and one of the best evaluated emerging economies worldwide. Its hallmark stability, transparency and competitiveness and excellent business prospects position it not only as the best destination for foreign investment in the region but also as one of the most outstanding in the world.

A GLOBAL LEADING ECONOMY IN TERMS OF FOREIGN DIRECT INVESTMENT (FDI) ATTRACTION: • FDI recipient: #4 in Latam; Top 20 in the world; • Average annual FDI inflows of US$ 20 billion for over a decade; • FDI represents 8% of GDP, with annual growth of 10% over a decade. 01 3 4 A PARTNER FOR YOUR INVESTMENT

WHY INVEST IN CHILE? BECAUSE IT LEADS LATIN AMERICA

• Foreign investment regime (3rd worldwide, 1st in Latin America – Economist Intelligence Unit, 2015-2019);

• Business environment (13th worldwide, 1st in Latin America – Economist Intelligence Unit, Business Environment Rankings, 2014-2018);

• Competitiveness (33rd worldwide, 1st in Latin America – World Economic Forum, Global Competitiveness Index, 2017-2018);

• Best countries for business (36th worldwide, 1st in Latin America – Forbes Magazine, 2017);

• Economic freedom (10th worldwide, 1st in Latin America – Heritage Foundation, 2017);

• GDP per capita (PPP) (US$24,587, 1st in Latin America - International Monetary Fund, 2017); • The first and only OECD menmber country from South America.

BECAUSE IT IS A LOW-RISK COUNTRY

Chile’s Sovereign Ratings

Fitch A Standard & Poor’s A+ Moody’s Aa3

BECAUSE IT IS ONE OF THE WORLD’S MOST OPEN ECONOMIES

Chile has 26 Free Trade Agreements with over 64 countries, providing preferential access of goods and services to economies that represent 86.3% of the world´s GDP. A PARTNER FOR YOUR INVESTMENT 5

WHY INVEST IN MINING IN CHILE?

Chile is a leading player in the world’s mining industry and its principal copper producer. Mining is the country’s most important economic activity, accounting for 9% of GDP and 57% of exports.

The world’s large mining companies have assets and operations in Chile. Attracted principally by the quality and scale of the country’s deposits, they include Glencore, Anglo American, BHP Billiton, Barrick Gold, Codelco, Teck, Antofagasta Minerals and Rio Tinto.

Chile’s privileged location, close to other mining countries such as Peru, Argentina, Ecuador and Colombia, also facilitates the export of services, technology and machinery for the regional mining industry.

This means that there is enormous potential for development around this industry. 6 A PARTNER FOR YOUR INVESTMENT

WORLD LEADER IN COPPER AND OTHER MINERALS 29.9% of world copper output 29.2% of world copper reserves 14.8% of world investment in exploration for copper 4,500,000 tonnes of additional copper production capacity (the highest in the world).

66%

57% 52% 53% 21º 35% 30% 1º 1º 29% 1º 2º 3º 24% 5º 18% 16% 7% 14% 6% 1%

75 42 29 47 79 53 3 % World reserves Re Mo Cu Ag Au Y Li % World production 186,2 95,9 63,5 107,9 197,0 126,9 6,9 % World production Ranking

EXCELLENT HUMAN CAPITAL

• Specialized mining professionals and technicians who stand out for their quality and level of training.

SEA AND ROAD TRANSPORT INFRASTRUCTURE

• Port facilities located at a convenient distance from mines; • Important road and railway networks that reduce transport costs.

SUPPORT SERVICES

• Mining companies in Chile spend over US$15,000 million on support services each year. • In 2017-2036, mining companies plan to invest US$60,000 million in new and expansion projects. A PARTNER FOR YOUR INVESTMENT 7

INVESTMENT OPPORTUNITIES

EXPLORATION PROJECTS

Chile has some of the world’s largest reserves of metallic and industrial minerals. Its potential lies principally in the following areas:

• New resources in traditional mining districts; • Less explored sectors outside traditional mining districts; • Underground mining.

DOUBLE LISTING: AGREEMENT BETWEEN SANTIAGO AND TORONTO EXCHANGES

In order to facilitate the raising of capital, all the companies listed on the Toronto Exchange automatically qualify for listing on Santiago’s Venture Exchange. This agreement also provides access to the Integrated Latin American Market (MILA) which includes Peru, Colombia and Mexico.

GEOSCIENTIFIC INFORMATION

Data from Chile’s National Geology and Mining Service (SERNAGEOMIN) is available online in digital form at www.sernageomin.cl. The system contains systematized information about exploration projects, technical and administrative information and geological and geophysical data. 8 A PARTNER FOR YOUR INVESTMENT

OPPORTUNITIES FOR MINING SUPPLIERS

The annual expenditure of mining companies on support services exceeds US$15 billion. In Chile, there are some 4,500 mining suppliers.

Given that copper mining companies plan to invest US$60 billion between 2017 and 2036, demand is expected to grow in areas that include engineering services, open-pit and underground equipment, conveyor belts, explosives, milling steel, reagents and the training of human capital.

Investment plans in neighboring mining countries also imply opportunities for the export of services, inputs and machinery from Chile.

STRATEGIC NATIONAL HIGH-GRADE MINING PROGRAM

The National High-Grade Mining Program is an initiative under which the public, private and academic sectors collaborated in drawing up a 2015-2035 Technological Roadmap for the mining industry, setting out a series of goals.

8 A PARTNER FOR YOUR INVESTMENT 9

There is a unique opportunity for technology companies to gear their capabilities and projects to addressing the challenges of Chile’s mining industry, offering solutions that have a significant and profitable impact on its productivity and sustainability. The technological challenges include:

• Mining operations and planning; • Mineral concentration; • Hydrometallurgy; • Smelting and refining; • Tailings.

These challenges, in turn, imply the following opportunities:

1. Underground mining Open-pit mines currently account for 90% of the mineral extracted in Chile. However, it is estimated that, by 2025, up to 50% may come from underground mines. This transition from open-pit to underground mining will create opportunities for: • Machinery for large-scale underground mining; • Equipment for the preparation and exploitation stages; • Automation and robotization.

2. Smelters and refineries The need for world-class smelters and refineries, with low operating costs and a high level of capture of emissions in line with future environmental regulation, opens opportunities in: • Treatment of complex concentrates with high levels of arsenic and other pollutants; • Mechanization, automation and robotization of smelting and refining; • Instrumentation and systems for the operational control of bath smelting furnaces; • Technologies for the recovery of minerals with economic value. 10 A PARTNER FOR YOUR INVESTMENT

3. Mining tailings Due to the drop in ore grades, mining companies in Chile will have to extract, transport and process ever more material, with the resulting increase in tailings. In addressing this challenge and minimizing the impact of the larger volume of tailings, opportunities will arise in the following fields: • Efficient high-volume separation of solids and liquid; • Minimization of water evaporation; • Use of seawater in flotation processes; • Prediction and monitoring of the footprint of tailings dams; • Compacting of sand and slime; • Treatment and neutralization of tailings prior to their deposit in the dam; • Identification and monitoring of leakages; • Control of particulate matter; • Recovery of elements of value from tailings. A PARTNER FOR YOUR INVESTMENT 11

4. Productivity gains in open-pit mining The challenge of an increase in the volume of material transported implies opportunities in: • Technologies to permit continuous transport processes; • Use of autonomous trucks that operate continuously; • Development of high-volume sub-vertical conveyor belts; • Reduction of direct intervention by operators in order to increase safety and facilitate auditing; • Optimum selection of equipment and calculation of principal fleets.

5. Development of intelligent mining Technological breakthroughs and more intelligent mining are required in order to increase the efficiency of mining processes. This challenge implies opportunities in: • Interoperable mining systems; • Autonomous and semi-autonomous remote control systems.

6. Mineral concentration The incorporation of knowledge, innovation and technological development are necessary to improve the efficiency of concentration processes. The technological challenges that exist in this field open opportunities in: • Reduction of energy and steel consumption in milling;

11 12 A PARTNER FOR YOUR INVESTMENT

• Efficiency in the use and transport of water; • Control of impurities in concentrates; • Recovery of copper and noble metals from slag.

INSTRUMENTS AND INCENTIVES

A number of incentives are available to companies in Chile in the form of guarantees and subsidies to promote entrepreneurship, innovation, productivity and investment. They include:

Program of Support for Strategic Projects at the Pre-Investment Stage (PRAP) The PRAP subsidy co-finances pre-investment studies to gather the information required to evaluate an investment in Chile (studies of potential location and market and economic and technical studies). The subsidy covers up to 70% of the cost of the studies with an upper limit of US$250,000.

Integrated Promotion Initiative (IFI) The IFI subsidy provides co-financing to support the implementation of technological A PARTNER FOR YOUR INVESTMENT 13

investment projects, centers of innovation and initiatives in productive and technological fields with a positive impact on economic sectors. A minimum investment of US$2 million is necessary in order to apply. The subsidy covers up to 30% of the resources committed by the recipient company during the first two years of the project’s implementation with an upper limit of US$5 million.

Research &Development Law and Tax Incentive Under the Research and Development Law, companies can use 35% of the amount devoted to research and development activities as a tax credit. These activities must be certified by the government’s Economic Development Agency (CORFO). Characteristics of the benefit: • Credit against First Category Tax of 35% of the amounted invested in R&D activities duly certified by CORFO; • A minimum investment of approximately US$ 7000 is required in order for CORFO to certify the activities; • The annual upper limit on the credit is approximately US$ 1 million.

13 14 ENAMI PROJECTS

ENAMI’S PROJECTS

Introduction

ENAMI invites you to become a partner in the following seven mining exploration prospects, through a mining option and / or to become a partner company to discover deposits in the geological areas of interest for medium and large- scale mining projects. The seven mining prospects are the following, as shown in Figure 1.

14 ENAMI PROJECTS 15

72°O 69°O 75°O 70°O

" P e r u TALCA Metallogenic belts

Miocene - Pliocene Miocene ARICA " $ CONCEPCION " Oligocene Paleocene - Oligocene

Early Cretaceous Jurassic- Early Cretaceous n

B o l i v i a e a Salars c "

" 20°S TEMUCO IQUIQUE O *# ENAMI projects

c i International Border f " VALDIVIA Regional Border c i n 40°S

a Projection

P e a SIRGAS Trasverse Mercator Zone 19S

c 1: 7.000.000

O 50 0 100 PUERTO " Km c MONTT i Cerro Cumbre

f

c i

a

P *# Salar de ANTOFAGASTA " Atacama Las Juntas *#*# Cerro Manchado *# *# Imilac Lavalle 25°S 45°S

COYHAIQUE "

80º05’ 26º18’ Isla San Cuprum Isla San Ambrosio Félix 79 º 51’ *#

Isla Salas y Gómez 26º27’

105º28’

109º20’ COPIAPO " A r g e n t i n a 26º21’ *# Las Pintadas Isla de Pascua

"ACUERDO ENTRE LA REPÚBLICA DE CHILE Y LA REPÚBLICA ARGENTINA PARA PRECISAR EL RECORRIDO DEL LIMITE k DESDE EL MONTE FITZ-ROY HASTA EL CERRO DAUDET". (Buenos Aires 16 de diciembre de 1998). 50°S

A

T

" LA SERENA L

A 30°S

N

T

I

C

PUNTA " O ARENAS C E A r g e n t i n a A N

"

Isla Isla VALPARAISO 55°S Alejandro Robinson Selkirk Crusoe SANTIAGO " 33º37’ TERRITORIO

53º46’ CHILENO ANTÁRTICO 60º46’ 78º49’ 90º 53º Islas Diego Ramírez RANCAGUA " 35°S

TALCA "

Projection SIRGAS Trasverse Mercator Zone 19S

1: 5.500.000 0 400 km 50 0 100 POLO SUR Km Copyright:© 2014 Esri Copyright:© 2014 Esri

Figure 1: “Metallogenic belts of Chile, showing the prospects Enami”. 16 ENAMI PROJECTS

SECOND REGION SECOND REGION

Cerro Cumbre

Antofagasta II Region

Cerro Manchado

Imilac

TERRITORIO CHILENO Zaldivar Mine ANTÁRTICO 90° 53° Escondida Mine

POLO SUR Lavalle "ACUERDO ENTRE LA REPÚBLICA DE CHILE Y LA REPÚBLICA ARGENTINA PARA PRECISAR EL RECORRIDODEL LÍMITE DESDE EL MONTE FITZ ROY HASTA EL CERRO DAUDET". (Buenos Aires, 16 de diciembre de 1998).

16

"Autorizada su circulación por Resolución N° 412 del 16.09.14 de la Dirección Nacional de Fronteras y Límites del Estado. La edición y circulación de mapas, cartas geográficas u otros impresos y documentos que se refieran o relacionen con los lí- mites y fronteras de Chile, no comprometen, en modo alguno, al Estado de Chile, de acuerdo con el Art. 2°, letra g) del DFL N° 83 de 1979 del Ministerio de Relaciones Exteriores". ENAMI PROJECTS 17

IMILAC PROSPECT

Location

The prospect is located 158 km to the east of Antofagasta City in Region II Antofagasta, Chile, occupying part of the Intermediate Depression at an attitude of 3,500 m a.s.l. Its central coordinates are N 7,327,651.62 and E 505,793.79 (Datum: WGS84).

Nearby Mining Deposits

Imilac’s district is located about 10 km in the immediate vicinity to the Northeast of Escondida – Zaldívar mining complex.

17 18 ENAMI PROJECTS

Mining Rights

Imilac corresponds to ten mining exploitation concessions covered by 403 mining properties covering a total of 4,030 hectares.

Zaldivar mine IMILAC

La Escondida mine

0 5 10 km

Figure 2. Satellite image showing the location of the Imilac prospect, Google Earth.

Studies Conducted

In the area, there are geological recognitions at scales 1:50,000, 1:25,000 and 1:10,000. There are also rock geochemical samples from more than 500 surface samples and 6 trenches that were mapped at a scale of 1: 500.

Studies of relict sulphides, hydrothermal alteration, associated mineralization and radiometric dating of different types of rocks were carried out. ENAMI PROJECTS 19

Mineralization Zones

Predominantly pyrite, chalcopyrite in smaller amounts, with traces of covelin and pyrrhotine. This mineralization is related to a zone of strong silicification quartz veins and hematite that is located on both sides of Quebrada Varilla. This zone is a main center of alteration and mineralization, which is open to the east, hidden under the gravels of the Pampa de Mulas Formation and the Quaternary coverage (Quebrada Imilac).

The area that presents evidence of mineralization is approximately 1.5 x 1.1 km2. On the surface, this area is partially leached with mineralization of limonites and less quantity of copper oxides. Copper mineralization is observed more abundantly towards the NE, in the Imilac Porphyry, where it is presented filling fractures, disseminated and as a replacement.

Geology

The lithology of the area is composed of a monzogranitic intrusive, rhyolitic porphyries, granites and triasic granodiorites that intrude on rhyolites belonging to the La Tabla Formation (Carboniferous - Permian). Hydrothermal potassium and argillic alteration is observed in the monzogranite intrusive, while the rhyolitic porphyries show a weak to moderate alteration. 20 ENAMI PROJECTS

The mineralization in the monzogranitic intrusive corresponds to type A and B veinlets with pyrite boxwork, magnetite-hematite veinlets, barite-ox copper veins (mines).

The youngest intrusives of the area (Tertiary, K - Ar in plagioclase 45.9 ± 9.1 Ma and 34.3 ± 6.1 Ma.) are located towards the SE end, where they intrude to the La Tabla Formation, and correspond to small stocks of andesitic composition, with a marked porphyritic texture and chlorite – epidote alteration. Related to these intrusives there are zones of hydrothermal alteration near the Zaldívar deposit.

Geophysics

It corresponds to an area of extensive RTP positive, highly favorable aeromagnetic anomalies, which are limited by extensive NW and NE lineations.

Geochemistry

The alteration observed in the rocks of the prospect is similar to that described for copper porphyry type deposits, where a central potassium alteration is present surrounded by an alteration of sericitic quartz and, around it, a propylitic alteration. In these zones the geochemical samples of rocks (approximately 500 samples) indicated sub anomalous copper values, except for the veins. The area with evidence of mineralization is expressed in the form of partially leached rocks with limonites and a smaller amount of Cu oxides.

Soil geochemistry sampling shows slight Cu anomalies up to 145 ppm.

High values are related to intrusives with presence of stockwork, vein systems and outcrops adjacent to mineralized areas (Tres Amigos Mine, La Olvidada Mine, La Casualidad Mine).

20 ENAMI PROJECTS 21

LAVALLE PROSPECT

Location

The prospect is located 135 km southeast of the city of Antofagasta, Region II Antofagasta, occupying part of the Intermediate Depression, at an altitude of 2,500 m.a.s.l. Its central coordinates are N 7,298,651 m and E 470,794 m. (Datum: WGS84).

Nearby Mining Deposits

The prospect is located approximately 23 km southwest of the Escondida - Zaldívar copper complex.

Mining Rights

Lavalle includes fourteen mining exploitation concessions covered by 1,050 mining properties covering a total of 10,500 hectares.

21 22 ENAMI PROJECTS

Zaldivar mine

La Escondida mine

Lavalle

0 5 10 km

Figure 3. Satellite image showing the location of the Lavalle prospect, Google Earth.

Studies Conducted

Between 1999 and 2006, studies were carried out by CODELCO, which consisted of geological maps at a scale of 1:25,000, lithogeochemical samplings, indirect MMI geochemistry, geophysical studies (aeromagnetism and gravimetry) and exploration drilling.

Mineralization Zones The skarnified sedimentary rocks and associated intrusives in the central part of the area have a weak mineralization of pyrite, pyrrhotite, chalcopyrite, marcasite, hematite and limonite. Also in some outcrops, minor and isolated manifestations of copper oxides are recognized. Isolated veins are recognized with values of interest for Ag, Au, Pb and Zn. The mineralization of the district is associated with large copper porphyry deposits and polymetallic veins. ENAMI PROJECTS 23

A Quaternary cover is observed that is formed by deposits of alluviums, colluviums, terraced sediments and stream beds. In addition, active deposits of gravel, sands, clays and unconsolidated silt are recognized.

Geology

The geology of the sector includes a paleozoic basement composed of granites and monzonites of muscovite - biotite (Ordovician - Silurian), and by tuffs and rhyolitic lavas of Carboniferous - Permian age that overlie the Paleozoic intrusives. Limestone and calcareous sandstones from the Jurassic - Neocomian are in the sector. Toba and rhyolitic breccias of the Paleocene - Lower Eocene cover in unconformity to the anterior rocks. Finally, small bodies of granodiorite and Eocene diorite intrude on the previous units.

Within the property, there is a dacitic porphyry with a pervasive quartz - sericite alteration and small tourmaline rosettes. The porphyry is cut by a multidirectional stockwork of quartz vein type A. It has a leached cover with no signs of hematite. A zone of calcium skarn with garnet, wollastonite and low sulfide content is arranged eccentrically to the porphyry. 24 ENAMI PROJECTS

Geochemistry

MMI geochemistry was performed and a total of 372 soil samples were collected. Positive anomalies were obtained related to base metals (Ni - Zn) and precious metals (Au - Ag).

A markedly anomalous zone associated with the skarn rocks in Cerro Isla is recognized in the southeastern part of the area and an area with a greater concentration of Au in broad strokes associated with the Paleozoic - Jurassic tectonic contact in the eastern margin.

Drilling

In the area 13 drills holes were made (with a total of 2,664 m drilled), which reached a depth from 150 to 322 m.

The drill targets were chosen in relation to the altered rocks, skarn zones and geochemical tendencies in the edge outcrops, in some MMI anomalies and in amalgamation zones associated with faults or larger structures.

According to the above, the most anomalous elements correspond to Zn, Mo, Au and V with anomalous averages in more than half of the drilling. With minor importance is considered Ni, Mn, Ba, Ag, Sr, Co and Cd.

24 ENAMI PROJECTS 25

CERRO CUMBRE PROSPECT

Location

The Cerro Cumbre prospect is located 100 km south of the city of Calama, in Region II Antofagasta. Its central coordinates are N 7,417,773 m and E 499,618 m. (Datum: WGS84).

Nearby Mining Deposits

The prospect is particularly attractive because it’s located in the Eocene copper porphyry belt, specifically at the edge of an intense aeromagnetic anomaly that connects to the SE with the Gaby anomaly.

Mining Rights

Cerro Cumbre is covered by 16 mining exploitation concessions with 840 mining properties covering a total of 5,100 hectares.

25 26 ENAMI PROJECTS

Cerro Cumbre

Gaby mine

0 5 10 km

Figure 4. Satellite image showing the prospect location Cerro Cumbre, Google Earth.

Studies Conducted

There are studies of: geological survey of outcrops at a scale of 1: 2,000; aeromagnetic studies of the Cerro Casado sector (CODELCO flight, 1992), studies of geochemistry, petrography, X-Rays, relict sulfides; and, a drilling campaign for ten reverse air boreholes.

Geology

In the Cerro Cumbre Prospect area and at the district level, Paleozoic andesitic volcanic units have been recognized, assigned to the Estratos El Bordo Unit (Carboniferous - Permian), and over them, in discordance, Eocene units can be seen assignable to the Volcanic Complex and Subvolcanic Complex of the Casado Hill that includes rhyolitic, dacitic and andesitic porphyries, and acid effusive rocks such as rhyolites and tuffs and dioritic and granodioritic intrusives. These rocks are partially covered by modern alluvial and colluvial sediments. ENAMI PROJECTS 27

The effusive rocks present a penetrative hydrothermal alteration of sericitic type with stockwork of type "A", "B" and "D" veinlets, and jarositic and hematitic leach capping. They are also intruded by a late porphyry with copper mineralization and by a gap with abundant hematite.

It should be noted that the area is located between two mega lineations; Los Toros Fault, which extends in the NNE direction in the Llano Pampa 14 de Febrero, and the Pampa Elvira Fault, related to the Gaby deposit, located southeast of the Cerro Cumbre prospect.

Geophysics

The Cerro Cumbre Prospect is located on the edge of an intense magnetic anomaly of 12 by 20 km2 that connects to the southeast with the Gaby magnetic anomaly of 10 by 10 km2. The strong intensity of the anomaly can be interpreted by the presence of outcropping or subfloor intrusives with important concentrations of magnetite. A NS regional lineation is also recognized (Banchero, 1998). 28 ENAMI PROJECTS

Geochemistry

The sampling carried out includes chip-type surface samples and samples in gutter-type trenches. The results show that the porphyry Cumbre is the unit with the largest anomalies of copper, gold and zinc.

Drilling

A campaign of eight RC drillholes was conducted, drilling a total of 2,115 m, designed to detect economic mineralization in the subsurface.

Three deep zones were recognized, with characteristics of alteration and mineralization. - Leached zone: quartz - sericite alteration in tuffs and to a lesser extent in: Porphyry Cumbre, Altered Porphyry and Hematite Breccia. The mineralization corresponds to limonites and boxwork of pyrite and alunite. - Enrichment zone: mainly silicification and to a lesser extent sericite quartz in tuffs and altered porphyry. The sulphided mineralization is pyrite with chalcosite coatings. - Primary Zone: presents alteration; chlorite-biotite, silica-chlorite, sericite and chlorite. The sulphided mineralization corresponds to fresh pyrite and to a lesser extent chalcopyrite, bornite and covellite.

28 ENAMI PROJECTS 29

CERRO MANCHADO PROSPECT

Location

The Cerro Manchado prospect is located 170 km south of the city of Calama, Region II Antofagasta, at an altitude of 2,000 m.a.s.l.. Its central coordinates are N 7,342,863 m and E 472,830 m. (Datum: WGS84).

Nearby Mining Deposits

It is located approximately 30 km northwest of the Escondida - Zaldívar complex.

Mining Rights

The prospect Cerro Manchado corresponds to 530 mining properties that cover an area of approximately 5,300 hectares.

29 30 ENAMI PROJECTS

Cerro Manchado

Zaldivar mine

La Escondida mine

0 5 10 km

Figure 5. Satellite image showing the location of the Cerro Manchado prospect, Google Earth.

Studies Conducted

Between 1996 and 2004, exploration, geological, geophysical, geochemical and drilling studies were carried out by the companies CODELCO, Zonge Ingeniería, Geofísica S.A. and Geodatos.

Mineralization Zones

The mineralization of Cerro Manchado corresponds mainly to the development of a hematitic leach cover with a lower proportion of jarosite. The occurrence of hematite - jarosite affects all rocks in the area ranging from very weak to strong. Hematite occurs as coatings on fracture faces with or without the presence of jarosite, disseminated, in pyrite boxwork, or in replacement siliceous veinlets. Its best development occurs in siliceous breccias.

Another manifestation of mineralization is the presence of a stockwork of supergene alunite veinlets, in which the presence of gold has been detected, they are regularly distributed, and ENAMI PROJECTS 31

they are located in two sectors north and west of Cerro Manchado, affecting the Andesitic Porphyry.

The only sulphide in sight is the presence of pyrite disseminated pyrite in an outcrop of hydrothermal breccia located southeast of Cerro Manchado. Pyrite according to the microscopic description is of bacteriological origin and is accompanied by marcasite.

Presence of abundant magnetite has been observed in unaltered andesites located north and east of Cerro Manchado. Magnetite is cubic in shape and is disseminated. Andesitic dykes located in Cerro Manchado that intrude tuffs are mineralized with magnetite. In the regolithic soil an abundant presence of magnetite has been detected.

Calcite - quartz veins occur to the west of Cerro Manchado, preferentially in the contact zone between andesites and ignimbrites. Its preferential orientation is NE, with 70 ° E, thickness from 10 cm to 1 m visibly extending no more than 10 m.

The results of relict sulphide studies of surface samples indicate the presence of pyrite- chalcopyrite in a ratio of 3:1 or greater. There is no zoning in the distribution of sulfides. In addition, the presence of marcasite accompanied by pyrite has been observed.

The minerals produced by the leaching observed under the microscope are mainly hematite, goethite, ilmenite and rutile.

31 32 ENAMI PROJECTS

Geology

The geology of the area is composed of a set of effusive and pyroclastic volcanic rocks belonging to the Augusta Victoria Formations (Upper Cretaceous - Eocene) and La Tabla (Carboniferous - Permian). Characteristically the volcanism of the Augusta Victoria Formation is of the bimodal type and in the study area it is made up of basalts - andesites, andesites, ignimbrites - rhyolites, tuffs, volcanic breccias, andesitic porphyry and dacitic dome. They present an orientation N-S with a dip angle of around 30 ° to the E.

The Tabla Formation constitutes the base and is separated from the Augusta Victoria Formation by a regional fault of NS orientation. The zone is integrated by tuffs of dacitic crystals. ENAMI PROJECTS 33

Geophysics

The area covered by the Cerro Manchado Prospect is characterized by the presence of a significant magnetic anomaly, which is significant given that most of the known deposits are associated with these magnetic lows.

Geochemistry

The prospect of Cerro Manchado is a basic exploration target for copper-porphyry gold mineralization.

A multi-element geochemical analysis was carried out that allowed defining areas of interest such as:

1. Abnormal areas in Cu, Au and Mo. 2. Halos or zones of alteration, related to mineralized bodies of copper-gold porphyry-type without visible mineralization. 34 ENAMI PROJECTS

THIRDTHIRD REGION REGION

Carmen Mine

Cuprum Diego de Almagro Chañaral

Copiapó

Caspiche Project

TERRITORIO CHILENO ANTÁRTICO 90° 53°

Cerro Casale Project

POLO SUR

"ACUERDO ENTRE LA REPÚBLICA DE CHILE Y LA REPÚBLICA ARGENTINA PARA PRECISAR EL RECORRIDODEL LÍMITE DESDE EL MONTE FITZ ROY HASTA EL CERRO DAUDET". (Buenos Aires, 16 de diciembre de 1998). Las Pintadas

"Autorizada su circulación por Resolución N° 412 del 16.09.14 de la Dirección Nacional de Fronteras y Límites del Estado. La edición y circulación de mapas, cartas geográficas u otros impresos y documentos que se refieran o relacionen con los lí- mites y fronteras de Chile, no comprometen, en modo alguno, al Estado de Chile, de acuerdo con el Art. 2°, letra g) del DFL N° 83 de 1979 del Ministerio de Relaciones Exteriores". ENAMI PROJECTS 35

CUPRUM PROSPECT

Location

The Cuprum prospect is located in the Sierra Áspera District, 15 km west of the city of Diego de Almagro, in Region III Atacama, at an approximate altitude of 1,000 m.a.s.l. and incorporates the concessions; Cuprum, Cerro Carmen, Florita and Pazota. Its central coordinates are N 7,084,306 m and E 380,647 m. (Datum: WGS84).

The prospect has a prospective interest in iron - copper and subordinated gold.

Nearby Mining Deposits

The prospect is close to Mina Carmen and El Salado Group, as shown in Figure 13. Cu and Fe deposits are located in the study area. These are located mainly in the belt of andesitic volcanic rocks.

35 36 ENAMI PROJECTS

Cuprum

Carmen mine

El Salado

0 5 10 km

Figure 6 Satellite image showing the location of the Cuprum prospect, Google Earth.

Mining Rights

The Cuprum, Cerro Carmen, Florita and Pazota areas are covered by 52 mining exploitation concessions with 1,185 mining properties covering a total of 11,249 hectares, located in the communities of Diego de Almagro and Chañaral.

Studies Conducted

To date, topographic surveys, geological, geochemical, geophysical studies of terrestrial magnetometry, and various drilling campaigns have been carried out.

Geology

The area is characterized by a grouping of volcanic rocks of andesitic composition, with intercalations of calcareous sandstones, thin layers of ignimbrites and rhyolites, corresponding to the La Negra Formation, of Upper Jurassic age, in which some intrusive andesitic filonians are included. ENAMI PROJECTS 37

Figure 7. Distribution of the different lithological units of the Cuprum Prospect, ENAMI, October 2009.

The La Negra Formation is intruded by the Pluton of Sierra Áspera, which extends between Cerro Negro and Sierra Áspera, composed mainly of medium to fine grain diorites, locally porphyritic, but it includes a wide variety of intrusive rocks, from leucocratic gabbros to monzogranites, granodiorites and hornblende tonalites, all of Neocomian age. This intrusive unit has caused an aureole of jagged rocks in the La Negra Formation, originating a skarn that includes volcanic rocks and sedimentary intercalations that these present, with the development of dynamic schists in the sectors surrounding the location of filonian bodies related to the structures that have affected it.

From the structural point of view, the area is affected by a system of sinistral faults, NW orientation, which give rise to an extensive area, from 300 m to 500 m wide, related to Triassic tectonism, which extends, with some discontinuities, along some 60 km, between the Atacama Fault Zone (AFZ) and the Domeyko Fault Zone (DFZ). Throughout these structures, the highest concentration of rare earth mineralization in the area has been detected. 38 ENAMI PROJECTS

Geophysics

The geophysics indicates a relationship of the magnetic alterations with the zone of copper and hematite oxide bodies identified in the surface and the occurrence of other values in covered sectors, allowing to postulate the repetition of said mineralized events under the Quaternary coverage.

Figure 8. Drill core of the drilling campaign in Pazota. ENAMI PROJECTS 39

Geochemistry

The geochemical sampling values show a direct and positive correlation of Cu-Ag and Cu-Fe- Ag. A total of 344 chip-type rock samples were taken, of which 38 correspond to duplicates of them. The results showed anomalous Cu, Mo, and Fe values.

Drills

Cuprum: five diamond-drill holes were drilled, with which Fe-Cu mineralizations were detected related to areas with specularite occurrences, copper oxides and geochemical anomalies of Fe, Cu, Co and Mo. Several drillings have abnormal gold contents. Magnetite mineralization is recognized, associated with an anomaly of high magnetic susceptibility. 40 ENAMI PROJECTS

Pazota: 16 diamond drill holes were drilled, totaling 3,902 m. The drilled holes intercepted specularite-hematite-Cu-Au breccia bodies with a mineralized halo formed by specularite- carbonate-hematite veinlets. The oxidized mineralization in the northern sector is restricted to these bodies of 1 to 3 m in thickness (with scant oxidation of the crisocola and atacamite type).

Carmen Sur: two holes were drilled aimed at examining a magnetic anomaly and recognizing the characteristics of a substantial structure with hematite, specularite and oxidized copper, of NW orientation and inclined to the north. ENAMI PROJECTS 41

LAS PINTADAS PROSPECT

Location

The Las Pintadas prospect is located approximately 130 km en route southeast of the city of Copiapó, Third Region of Atacama. Its average altitude is 3,150 m.a.s.l. and its central coordinates correspond to N: 6,919,269 and E: 455,915. (Datum: WGS84).

Nearby Mining Deposits

To the northeast of Las Pintadas, the Cerro Casale mining project is located 15 km in a straight line, the Caspiche mining project is 24 km away and the Maricunga Mining is 36 km away. To the southwest of Las Pintadas, the Caserones mine is located 35 km in a straight line.

Mining Rights

Las Pintadas is covered by 27 mining concessions with 291 mining properties covering a total of 2,690 hectares.

41 42 ENAMI PROJECTS

Caspiche Mine

Cerro Casale Mine

Las Pintadas Mine

0 5 10 km

Figure 9. Satellite image showing the prospect location Las Pintadas, Google Earth.

Studies Conducted

The Las Pintadas sector has a surface geological mapping, a geophysical study, and two geochemical studies.

Mineralization Zones

In the area there are numerous auriferous veins, up to 60 cm thick, exploited by small mining operations. Additionally, there are two zones with strong geochemical anomalies of Au and to a lesser extent Cu, in the sectors of Tambería and Cadillal as shown in Figure 10.

Geology

The area presents a sedimentary volcano sequence composed of shales and sandstones interspersed with andesitic volcanic rocks. This sequence corresponds to the La Ternera Formation, of Triassic age. This unit is covered by a sequence of andesitic tuffs of Tertiary ENAMI PROJECTS 43

N

Las Pintadas Mine Tambería

2 km Cachitos

Figure 10. Satellite image showing the prospect location Las Pintadas, Google Earth. age, corresponding to the Francisco Negro Formation. Finally, pyroclastic material from the Quaternary lies over these tuffs. These formations are intruded by microdioritic dikes and by granodioritic intrusives. The orientation of the structures and faults is generally northwest and northeast. The mineralization may be related to the intrusion of the granodioritic plutons, which generate towards the periphery a distal zonating of Au - Ag, proximal of Pb - Zn - Au and central of Cu - Mo. The distal zones have a radius of 5 km from the center.

Geophysics

The geophysical study carried out consists of an induced polarization (IP) / resistivity study, in which 30 km of data was collected in 21 lines. A correlation was obtained between the 44 ENAMI PROJECTS

geochemical anomalies and the geophysical anomalies, for which it was recommended to perform exploration by drilling.

Geochemistry

Two geochemical studies were carried out in the area, with a regular mesh of approximately 100x100 m. The concentration of Au, Ag, Cu, Zn, Pb, As, Sb and Hg was analyzed. In the whole study area there are important anomalies of Au, however, in the Cadillal sector more than 15 samples with values between 8 and 77 ppm Au were obtained. In addition, numerous samples with values between 0.5 ppm and 3 ppm Au were obtained in this sector and other neighboring sectors. ENAMI PROJECTS 45

TENTHTENTH REGION REGION

Palena

Puerto Montt

Las Juntas

TERRITORIO CHILENO ANTÁRTICO 90° 53°

POLO SUR

"ACUERDO ENTRE LA REPÚBLICA DE CHILE Y LA REPÚBLICA ARGENTINA PARA PRECISAR EL RECORRIDODEL LÍMITE DESDE EL MONTE FITZ ROY HASTA EL CERRO DAUDET". (Buenos Aires, 16 de diciembre de 1998).

45

"Autorizada su circulación por Resolución N° 412 del 16.09.14 de la Dirección Nacional de Fronteras y Límites del Estado. La edición y circulación de mapas, cartas geográficas u otros impresos y documentos que se refieran o relacionen con los lí- mites y fronteras de Chile, no comprometen, en modo alguno, al Estado de Chile, de acuerdo con el Art. 2°, letra g) del DFL N° 83 de 1979 del Ministerio de Relaciones Exteriores". 46 ENAMI PROJECTS

LAS JUNTAS PROSPECT

Location

The Cerro Las Juntas prospect is located 7 km south of the city of Palena, in the Tenth Region. Its central coordinates are N 5,159,223 and E 275,804. (Datum: WGS84).

Mining Rights

The Las Juntas prospect corresponds to 280 mining properties covering a total of 2,800 hectares.

Las Juntas

0 0.5 1 km

Figure 11. Satellite image showing location prospect Las Juntas, Google Earth.

46 ENAMI PROJECTS 47

Studies Conducted

Between 1994 and 1998 studies of strategic geochemical exploration, geological survey, geological mapping at a scale of 1:2,000 and sampling of mineralized structures of the Cerro Las Juntas polymetallic deposit were carried out by the Bureau de Recherches Geologiques et Minieres (BRGM) of France together with the National Service of Geology and Mining and ENAMI.

Geology

Several processes of hydrothermal mineralization are observed in Cerro Las Juntas, it is estimated there exists of at least two separate pulses distinguishable by:

• Hydrothermal Breccias Several breccia bodies are observed in the area of interest. The main one was mapped and sampled, and was designated as South Breccia. Its horizontal dimensions are 20 - 70 m wide and 150 m long. It has an E - W orientation and is associated with a heading vein N80°W that is observed continuing towards the west.

The South Breccia is a basaltic porphyry andesite, dark green and gray, fine textured of chlorite and epidote, and associated with contact with a subvolcanic diabase. Their margins present an abrupt contact with the base rock locally, but a gradation from a breccia to a normal box rock is more common. The fragments are angular to sub- angular. The breccia seems to have a mixed tectonic and hydrothermal origin; the fragments are separated by veinlets of quartz, calcite and sulfides, and less commonly by a matrix of crushed rock with sulfides. The breccia presents hydrothermal alteration, mainly sericitization of feldspars, chloritization of ferromagnesians and silicification. 48 ENAMI PROJECTS

A locally argilization is observed. Metallic mineralization occurs in the form of veinlets and lineations and consists mainly of blende, galena, chalcopyrite and pyrite. Pyrite is scattered in the rock. The gangue minerals are quartz and calcite. The size of the veinlets varies between 2 mm and 5 cm. Locally its abundance gives the rock a stockwork aspect, which coincides with the highest grades. The mineralization is distributed irregularly in the breccia with values of up to 200 ppm Ag, 1.9 ppm Au, 1% Cu, 2.5% Zn and 0.7% Pb.

• Fault Breccias They are brecciated vetiform structures filling faults. Example is the Au - Ag vein located in the Campamento area. Locally their base rock develop stockwork with slight mineralization. The mineralization is pyrite, arsenopyrite, sparse blende, galena and chalcopyrite. The gangue is of quartz and calcite. This type of vein or fault breccia is associated with hydrothermal ENAMI PROJECTS 49

quartz - sericitic and argillic alteration, with a mineralization mainly of Ag and Au. The campamento vein has 1.7 ppm Au and 356 ppm Ag.

• Massive Sulphide Veins They are structures of 1.4 to 2 m of thickness with massive mineralization of pyrite, chalcopyrite, sphalerite and galena. Locally they present in situ weathering of the sulphides, constituting a mixture of oxides of iron, anglesite and oxides of copper and manganese. The main mineralization is Zn (18.7%), then Cu (3.36%) and Pb (0.84%). The maximum Ag content is 126 ppm and the Au content is 0.4 ppm.

• Quartz Veins They are fault filling structures, formed by quartz and less abundantly by calcite, with textures of crustification and coloform. The metallic mineralization is blende, chalcopyrite, galena and pyrite. Some veins of quartz are associated with hydrothermal vents. Its 50 ENAMI PROJECTS

observed thickness ranges from 0.5 - 1.2 m. Geochemistry 03 By a strategic geochemical exploration it was possible to locate anomalies of Zn, Pb and Cu in drainage sediments of streams of Cerro Las Juntas.

The Cerro Las Juntas polymetallic district is particularly attractive because a volume of geological resources of the order of 60 Mt for the breccia bodies and 2 to 3 Mt for the veins is postulated. The estimated grades for the breccias are of the order of 0.5% - 1% Cu, 1% Zn, 0.5% Pb, 10 - 50 ppm Ag and 0.2 - 0.4 ppm Au. For its veins it is of 1% - 2% Cu, 2% - 5% Zn, 0.5% - 1% Pb, 20 - 100 ppm Ag and 0.5 - 2 ppm Au.

Figure 12. Sampling of veins of solid sulphides, ENAMI, July 1996. 03 GEOLOGICAL INFORMATION FROM SERNAGEOMIN 51 GEOLOGICAL INFORMATION FROM SERNAGEOMIN

Chile is a country rich in mineral resources and is one of the leading mining nations in the world, having attracted high levels of foreign investment for several decades.

According to the United States Geological Survey (USGS), in 2016, Chile was the world’s leading producer of copper, accounting for 28% of the world’s total production and holding 29% of the world’s known reserves. It’s also the first ranked producer of rhenium, second producer of molybdenum and fourth producer in silver. In the case of gold, Chile places fourteenth in the world’s gold reserves. It’s also the first ranked producer of iodine and supplies about 34% of the world’s lithium, mined from salars and arid areas in northern Chile, while accounting for about 50% of world´s lithium reserves.

Chile is renowned for its world-class porphyry copper deposits, which provide more than 90% of the total national Cu production, and continue to be one of the main exploration targets. These deposits are generally arranged in clusters, defining NS-trending “metallogenic belts”, wherein most of the currently producing mines are located, such as Escondida, Collahuasi and

51 52 GEOLOGICAL INFORMATION FROM SERNAGEOMIN

El Teniente. Consequently, north and central Chile are the provinces with the highest total copper endowment in the world. Furthermore, there are several other commodities associated with the copper mining industry, which are commercialized as sub-products, among them gold, molybdenum, rhenium and silver are the most important. These ore deposits stimulate very successful brownfield exploration programs, where reserves continue to increase as new discoveries are made in vicinity.

Another important target for exploration is the Iron oxide-copper-gold deposits (IOCG), with Candelaria and Manto Verde (Atacama Region) as best representative mines, with increasing potential for discoveries for cooper and gold around them. GEOLOGICAL INFORMATION FROM SERNAGEOMIN 53

Also, stratabound copper, with variable silver content, such as the Mantos Blancos (Atacama Region) and El Soldado (Valparaiso Region) mines, are concentrated along the Coastal Cordillera, making this area prospective for medium-size ore deposits.

In the case of gold, two of the most prospective metallogenic belts of the Andes, the Oligocene (Maricunga) and Miocene (El Indio) belts, host giant precious metal, epithermal and gold- rich, porphyry-type deposits. One of the latest greenfield discoveries is the Alturas project (Barrick), an epithermal high-sulfidation deposit located in the southern part of the El Indio metallogenic belt. Also, the Salares Norte (Gold Fields) is a new high-sulfidation discovery in the northern part of the Maricunga gold belt. These exploration accomplishments came about from an understanding of the regional geology and local mineralization style, together with persistence and a systematic exploration program which boosted the probability of a successful outcome in these mature exploration areas.

The diversity of deposit types (Figure 1), with proven successful exploration and production history, offers mining companies a range of alternative exploration targets for a variety of commodities. For all these reasons, Chile is one of the world’s most popular mineral exploration

53 54 GEOLOGICAL INFORMATION FROM SERNAGEOMIN

Figure 1: Metallogenic belts in Chile. Different types of mineral deposits are recogni- zed in each belt, including world-class deposits such as Chuquicamata, Escondida and El Teniente. GEOLOGICAL INFORMATION FROM SERNAGEOMIN 55

jurisdictions for base and precious metals, attracting major and junior exploration companies. Furthermore, new opportunities are opening for mineral resource development through integration synergies in joint ventures: Cerro Casale (Barrick) – Caspiche (Goldcorp), in the Oligocene Maricunga belt, and El Morro (Goldcorp) - Relincho (Teck), in the Paleocene- Oligocene belt, which reduce capital and operating costs.

Figure 2: Copper, gold and sil- ver ore deposits in Chile. In- formation available at “Portal Geomin”, SERNAGEOMIN web page. 56 GEOLOGICAL INFORMATION FROM SERNAGEOMIN

Figure 3: Iron, manganese, cobalt, tungsten, lead, zinc, molybdenum and other ore deposits in Chile. Information available at ‘”Portal Geomin”, SERNAGEOMIN web page. GEOLOGICAL INFORMATION FROM SERNAGEOMIN 57

New potential for rare earth elements, defined in recent years, presents new exploration possibilities in south Chile, in what could become a new exploration target for junior companies in the region.

The publically available “SIA-yacimiento (Sistema de Información Administrativo de Yacimiento)” database includes more than 10,000 records of mineral occurrence along the country (from geologic and mining information), which are constantly updated (Figures 2 and 3). Particularly, this database includes the size and type of ore deposits in production, which can be taken as an indicator for the potential mineral wealth and deposit type to be explored in adjacent areas.

Metallogenic maps (1:100,000 and 1:500,000 scales) are available for most of the country (Figure 4); they integrate a geological base with the metallic deposit occurrences. Different types of deposits are recognized along the country: stratabound Cu, IOCG (Iron oxide -Copper-Gold), Porphyry Cu-Mo, Porphyry Cu-Au and Epithermal Au, among others. These maps allow relating the host geology to the ore deposit geology, in order to define belts or provinces and provide geological concepts that support the identification of favorable exploration areas. 58 GEOLOGICAL INFORMATION FROM SERNAGEOMIN

Figure 4: Metallogenic maps for Chile, showing 1:500,000 and 1:100,000 scale maps published and in development. Published maps are available in the “Tienda E-map”, Figure 5: Lithium potential in salt flats (“salares”) and SERNAGEOMIN web arid areas in northern Chile. Information available in page. ”Portal Geomin”, SERNAGEOMIN web page. GEOLOGICAL INFORMATION FROM SERNAGEOMIN 59

As demand for lithium has increased significantly, and high-quality lithium reserves are found in brines below the surface of salt flats widely occurring in northern Chile, the Chilean government is promoting investment in these projects. Currently, the principal lithium deposit is in the Salar de Atacama, located in the Antofagasta Region in north Chile, where both local and foreign owned companies have operations close to infrastructure and ports (Figure 5).

In keeping with new regulatory guidelines, the SERNAGEOMIN is required to receive, store and make publically available basic geological information reported by mining companies from exploration projects (Article 21° of the Chilean Mining Code). The information provided by exploration mining companies (maps and databases) will be made available in the SIGEX web platform.

HIGH-QUALITY AND ACCESSIBLE PRECOMPETITIVE GEOLOGICAL INFORMATION FOR EXPLORATION

Chile is recognized worldwide as a mining country; it has more than 100 years of mining activity tradition along its entire territory. As a key actor of this development through time, the Chilean geological survey “Sernageomin” has contributed to the base knowledge and understanding of the country-scale geological evolution, including the occurrence of orebodies and its signature.

At the Sernageomin, our work is strongly field based such that the characterization of

59 60 GEOLOGICAL INFORMATION FROM SERNAGEOMIN

geological features is from first-hand observational data, complemented by remote sensing, geophysical data and laboratory analyses. All surveyed geological data is registered directly in geodatabases using rugged-tablets to capture and consolidate it. The fieldwork data includes: morphological and structural feature description and analysis, rock descriptions, mineralogy of altered rocks, and collecting samples for later laboratory analyses. Any paleontological site and samples are also registered and later processed by our paleontology team, which is responsible for delivering a bio-chronology report for unit age interpretations.

For our final products, mostly 1:100,000 scale geological maps, the digital workflow starts with fieldwork (data acquisition) and ends with a web-based publication (geodatabase-structured information). This process is certified under the ISO 9001:2015 quality management standard. Our professional team is a mix of junior and senior geologists, geophysicists, paleontologist, geographers and cartographers, where 20% have a PhD degree and 20% a MSc degree. It is our policy to keep our staff updated on the technological and scientific advances in their respective areas of expertise, and broaden their skills base, by providing constant training opportunities for them, which, at the same time, ensures our products evolve and remain interesting for our users.

60 GEOLOGICAL INFORMATION FROM SERNAGEOMIN 61

Our core processes are an essential part of the Sernageomin´s quality management system (SNGM-QMS). Main activities are constantly under revision to improve quality and scope of our products, and also to minimize time response for our publications. Another important aspect of the SNGM-QMS is safety, and so accordingly, we have made a considerable effort to assure the availability of communication and positioning systems, operative at all times, for our teams during fieldwork, implementing a redundant communication system, composed of satellites phones, UHF/VHF radios and GPS in our vehicles. Our geological interpretations and final products are supported by high-quality analytical data produced by our in-house laboratory. Our funding source, the National Geological Mapping Program (Plan Nacional de Geología, PNG) made an important initial investment in the acquisition and set-up of new state-of-the-art analytical equipment. It included the purchase of a Scanning Electron Microscopy (SEM), an X-Ray diffractometer, a noble gas mass spectrometer (Argus VI) and extraction line for 40Ar/39Ar geochronology, and a laser system coupled to a high-resolution ICP-MS for ablation of zircon mineral crystals for U-Pb geochronology (figure 6), among other improvements in the mineral separations line, and the geochemical analyses facilities. 62 GEOLOGICAL INFORMATION FROM SERNAGEOMIN

Figure 6: Pictures showing some of the newest equipment acquired by the National Mapping Program (Plan Nacional de Geología) of SERNAGEOMIN to bring analytical support to the geological investigations carried out in the program. 1) ARGUS VI multicollector mass spectrometer (equipped with a 40W Photon-Machines CO2 laser) for 40Ar/39Ar dating of K-rich mineral; 2) ZEISS EVO MA-10 Scanning Electron Microscope with EDS and BSE detectors, plus a CL module for cathodoluminescence imaging; 3) THERMO Fischer ELEMENT XR magnetic-sector ICP mass spectrometer, coupled to a Photon-Machines Analyte G2 193 nm excimer laser for mineral ablation, for U-Pb isotopic dating on zircon crystals. GEOLOGICAL INFORMATION FROM SERNAGEOMIN 63

PNG´s main goal is to generate and publish detailed geoscientific information, at different scales, to support and propel mining exploration, among other geological resource developments (hydrogeological, geothermal). Similar initiatives are underway in other countries where mining is crucial to their economies (e.g. PACE program in South Australia; GEM program in Canada).

Since the study of Earth´s crust is critical for natural resource surveying, the PNG aims for a characterization of the Earth’s crust, definition of its structure, composition and age; a determination of element chemical concentrations at the surface, among others. This scientific knowledge is essential for mining exploration, enhancing the chances of finding new ore deposits, and increasing the nation’s competitiveness in this economic arena.

PNG includes three geoscientific subprograms: 1) Basic Geology, 2) Geophysics and 3) Geochemistry, each of them with its own defined schedule and goals. At an initial stage, all of them focused on the north part of Chile (18-30° S), primarily because greenfield exploration is most active there. By 2017, the advance of these three subprograms is shown in figure 7.

• Basic Geology Program produces maps at a scale of 1:100,000 on the geological origin and evolution of the national territory. A central part of this work is rock age (geochronology), structural geology, stratigraphy, hydrothermal alteration zones relating to metallic and non-metallic mineralization, and dynamics and chronology of the active and inactive geological faults. The initial stage of the program includes the area between the cities of Arica (18°S) and La Serena (30°S) and by 2017 it has achieved a progress of 89% of the established goal.

• Airborne geophysics Program produces maps at a scale of 1:100,000 on the magnetism and gamma radiation (U, Th, K) from airborne surveys. The coverage of these maps has reached 88% of the established goal in the area between the cities of Arica (18°S) and La Serena (30°S). 64 GEOLOGICAL INFORMATION FROM SERNAGEOMIN

Figure 7: Published cartography (red squares) for Chile, at different scales, of, from left to right, basic geology (1:100,000 scale maps), stream sediment geochemistry (1:250,000 scale maps and individual major basin studies) and airborne geophysics (1:100,000 scale maps of magnetometry and gamma- ray U, Th, K spectrometry) by the National Mapping Program of Sernageomin- Chile; yellow squares indicate projects in progress. GEOLOGICAL INFORMATION FROM SERNAGEOMIN 65

• Geochemistry Program generates maps at a scale of 1:250,000 that identify the presence and concentration of 61 chemical elements contained in fluvial and alluvial drainage sediment from samples taken at the surface. The coverage of these maps has reached 37% of the established goal in the area between the cities of Arica (18°S) and La Serena (30°S).

The data provided includes high-quality geoscientific information on the nature and geologic evolution of the national territory, in particular, on the genesis and exploration potential of mineral ore deposits. These data provide guidance for investors on developing attractive areas and optimizes their investments in exploration.

Several international reports have claimed that exploration in northern Chile, and, as a rule of thumb, all over the world, is turning to covered areas and deep exploration, since the discovery of exposed or near surface ores is increasingly infrequent. Nevertheless, the mining potential for central Chile represents 50% of the national potential, as it concentrates 16% 66 GEOLOGICAL INFORMATION FROM SERNAGEOMIN

of the world copper reserves, which defines this area as the next target for mineral exploration. However, exploration in central Chile has headwinds; up to 60% of the population of Chile lives in this region, and other economic activities are prominent there (agriculture, winery, livestock farming and forestry).

This socioeconomic context represents a major challenge for geological mapping and the mineral exploration industry, since it has to coexist and ensure sustainability for all the other concurrent economic activities in the region. Nevertheless, the present scenario provides an incredible opportunity for the mining industry to improve its practices and become supported by the community. At the same time, it challenges the geological mapping professional teams to look for improvements in mapping technics: e.g. use of remote sensing and analytical support, investing in new equipment, among others.

Each final product, delivered by the three scientific subprograms (basic geology, geophysics and geochemistry), is submitted to a peer review process (also certified ISO 9001:2015) where national and/or international reviewers help to improve their technical quality. All final products can be viewed and queried at our GIS portal (Portal Geomin) and also purchased from the on-line shop (Tienda E-maps) (figure 8).

Sernageomin has promoted strong scientific relationships with other geological surveys around the world, supported by collaboration initiatives guided by our professionals. In the Latin American context, several international projects have been carried out over the past decades, most of them dealing with the geology of (and geological processes occurring in) the Andes Cordillera, and also as part of the ASGMI association (Iberoamerican Association of Geology and Mining Services). In the last few years, the Sernageomin has partnered with state organizations of various developing countries, assisting them in the construction of long- GEOLOGICAL INFORMATION FROM SERNAGEOMIN 67

Getting geospatial information from the GEOMIN PORTAL Chilean catalog of geospatial information

Figure 8: Workflow showing how to get geospatial information produced by Sernageomin-Chile from the GEOMIN PORTAL (www.sernageomin.cl); direct links (QR codes) are imbedded in the figure. 68 GEOLOGICAL INFORMATION FROM SERNAGEOMIN

term geological programs (volcano monitoring, basic geology programs) and also contributing with best practices advice for implementation in their geological surveys.

Sernageomin is also closely related to other more experienced geological surveys, with whom we have established collaborative projects, exchanging ideas and best practice experiences to help us innovate and remain relevant to our users in the 21st century. These types of collaborations give us insight into the ways our sister surveys are taking advantage of the digital era and helping society cope with modern earth-related problems. CLEAR RULES FOR FOREIGN INVESTMENTS 69

Likewise, we maintain good relationships and communication with our stakeholders, in order to understand where the demand is moving and to improve our products and services.

Our present and future work is anchored in the “society of knowledge” concept, since we are moving from acquiring data or creating information to providing knowledge. For this purpose, we are working on several projects to integrate our data, putting together different lines of investigation (multithematic approach). In this way, we expect to improve our interpretations and models, and to deliver new concepts based on elaborating knowledge, that can be used to drive, among others, the discovery of new resources.

69 0470 CLEAR RULES FOR FOREIGN INVESTMENTS CLEAR RULES FOR FOREIGN INVESTMENTS

Chile has a legal framework that provides stability and certainty for both private and foreign investment. Therefore, it offers low levels of legal uncertainty, which facilitates the delivery of mining permits for exploration and exploitation.

National Treatment

Principles

Property Stability of Right the rules Guaranteed

70 CLEAR RULES FOR FOREIGN INVESTMENTS 71

TAX LAWS

In Chile, private mining companies must pay 3 taxes:

1) Income tax: • It applies to profits of all companies. • The current tax rate is 25% in the case of the integrated system with allocation of income, and 27% in the case of the partial imputation on distributions or real withdrawals system.

2) Additional tax: • It applies to amounts taken out of the country. • Tax rate of 35%. • Income tax can be used as credit.

3) Special Mining tax: • It applies to the operating income of mining companies. • Average rates vary from 0% to 14%, depending on production volume and operating margins.

All the previous mentioned translates into a total taxation ranging from 35% to 42% over profit. 72 CLEAR RULES FOR FOREIGN INVESTMENTS

CONCESSIONS

1. Quick and Unobstructed Constitution of Mining Concessions Low level of uncertainty regarding legislation, which facilitates the formation of exploration and exploitation of mining concessions through legal resolutions (Art. 19 N° 24, subsection 7 of the Constitution).

2. Concession Permanence at the Owner’s Assets The lease duration for exploitation is indefinite; for exploration it is valid for two years, which may be extended only once for two additional years (Art. 17 of the Constitutional Act on Mining Concessions, Art. 142 of the Mining Code).

The only requirement to keep the concession is the annual payment of the mining patent. (Art. 12 of the Constitutional Act on Mining Concessions).

3. Constitutional Protection on Property Rights of the Concession The domain holder over their mining concession is protected under the Constitutional Guarantee of Property Rights (Art. 19 N°24, subsection 9 of the Constitutional Act).

72 CLEAR RULES FOR FOREIGN INVESTMENTS 73

Against any act or omission, arbitrary or illegal, which may produce deprivation, disturbance or threat to the legitimate exercise of their right of domain over the mining concession, the title holder may, among other procedural remedies, try the action of protection under Article 20 of the Political Constitution of the Republic of Chile.

4. Use of Mining Waters The mining concession holder has, solely by operation of law, the right to use the water found at the labours of their concession, inasmuch as such waters are necessary for the exploration work, exploitation work and profit that may be performed (Art. 110 of the Mining Code).

ENVIRONMENT

All mining investment projects with a production of over 5000 tons per month and any other project likely to make an impact, at any of its stages, and that are located in parks, national reserves, natural monuments, wilderness reserve areas, wildlife sanctuaries, marine reserves or any other official protected area must be registered in the Assessment of Environmental Impact System (referred as SEIA by its Spanish acronym). 74 CLEAR RULES FOR FOREIGN INVESTMENTS

All environmental aspects of this kind of mining project are processed in a centralized way at the SEIA, which is in charge of the Service of Environmental Assessment (SEA by its Spanish acronym):

1. SEA coordinates the competent environmental services. 2. SEA proposes the Environmental Assessment Commission to approve or reject the project. 3. Commitments, measures of mitigation and compensation acquired by companies through their environmental qualification resolutions are required by law.

• The SEIA is characterized for being an open and transparent process. It is possible to review the record of any project that has been registered on www.seia.gob.cl. On the file you may visualize the declarations of all services with environmental competences involved in the evaluation process as well as the background provided by the project holder. These files are of public access.

• Non-environmental aspects of sectorial permits are processed with the competent sectorial services directly. CLEAR RULES FOR FOREIGN INVESTMENTS 75

• Projects under 5000 tons per month shall process their sectoral permits with competent agencies such as Sernageomin.

Regulations: • Law on Environmental Bases (Law 19.300), modified by Law 20417, year 2010, where the fundamentals of environmental institutionalism is based: • http://www.leychile.cl/Navegar?idNorma=30667 • DS 40/2012: https://www.leychile.cl/Navegar?idNorma=1053563&idParte=0

COMMUNITIES

Chile promotes mining projects to have broad and sustained support from the community through inclusive collaborative processes for social, economic and institutional development of the communities where projects take place.

There are 3 regulations for participation and integration of the community in mining projects: 76 CLEAR RULES FOR FOREIGN INVESTMENTS

• Agreement 169 OIT From September 15th, 2009 the Agreement N° 169 on Indigenous and Tribal Peoples in Independent Countries is part of the Chilean Law, which establishes the express recognition of indigenous peoples.

• Supreme Decree 66 http://www.leychile.cl/Navegar?idNorma=1059961&idParte=0 This regulation is intended to give exercises to the right of consultation to indigenous peoples, from Agreement N° 169 of the International Labour Organization. Consultation it is a duty of the State Administration bodies and a right of indigenous peoples who are susceptible to be directly affected by the adoption of legal or administrative measures.

It is highlighted in this regulation all procedures, minimum steps, timelines and identification of the parties involved that must be included in any consultation process.

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• Supreme Decree N° 40 of the Ministry of Environment. Assessment of Environmental Impact System. https://www.leychile.cl/Navegar?idNorma=1053563&idParte=0

This regulation clarifies fundamental issues such as the technical criteria for an investment project to enter through a declaration or environmental impact study.

This bylaw establishes 2 types of public participation: citizen participation in general and participation of the indigenous peoples, specifically for processes of environmental impact assessment such as Environmental Impact Studies and Environmental Impact Statements, also establishing distinctions between the two of them. • Chilean mining is committed to developing a new way of relating to the different entities involved in the development of a mining project, aimed at building a form of relationship and commitment that seeks to generate shared value and collective impact. • Participation and dialogue in mining are instruments to build alliances, peaceful coexistence, equity, justice, empowerment, social capital, sustainable development and shared value.

WATER

1. Constitutional protection of property rights Domain of the title holder over the right of use of water is protected by the constitutional guarantee of property rights. 78 CLEAR RULES FOR FOREIGN INVESTMENTS

Against any act or omission, arbitrary or illegal, which may produce deprivation, disturbance or threat to the legitimate exercise of their right of domain over their right, the title holder may, among other procedural remedies, try the action of protection under Article 20 of the Political Constitution of the Republic of Chile.

2. Freedom of use of water Individuals may allocate the use of water for the purposes they deem appropriate, respecting the rights of third parties (art. 6 of Water Code). 3. Gratuity for obtaining and maintaining rights The holder of rights of use of water must only pay a fee for not using the water. (Art. 129 bis 4 of the Water Code).

4. Free transfer of rights The holder of rights of use of water resources may execute or celebrate all kinds of acts or contracts regarding their rights, i.e., they may sell, give, transfer, etc. (Art. 6 of the Water Code). CLEAR RULES FOR FOREIGN INVESTMENTS 79

The right of use over water is the domain of its owner, who may use, enjoy and dispose of it in accordance with the law. In this way, the owners may use the water for the purposes they deem appropriate, provided that the rights of third parties and the current regulatory framework are respected.

TRANSPARENCY

The Ministry of Mining offers investors the required permits and regulatory obligations in Chile to carry out a mining project. This information is available on the mining ministry website www.minmineria.cl or on this link: http://sisnor.minmineria.cl.

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COCHILCO STUDIES

The Chilean Copper Commission (Cochilco) advises the Ministry of Mining on the development of public policies within the sector. It creates studies concerning mining investment, water and energy consumption, metal market, exploration, productivity and costs, among other subjects. All of this is made available on its website (www.cochilco.cl).

Cochilco is the main source for statistical mining information from not only Chile, but also the entire world. They offer background information on production, prices, inventories, exports, employment and wages among other statistics, all of which are highly required by this particular sector.

Both national and international mining recognize Cochilco as a reliable source of information that provides a timely diagnosis of the main issues facing this sector, generating reports, studies and statistics in the following areas:

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1. Conjectural and prospective monitoring and analysis of strategic issues, affecting the sustainable and competitive development of Chilean mining.

1.1 Investment in Chilean Mining – Mining Projects Portfolio 2017-2026: Prospective annual investment analysis of copper, gold, iron and industrial material mining. Therefore, they update a Project Registry, concerning the development of mining companies within the next ten years. Download Report HERE

1.2 Copper production forecast in Chile 2016 -2027 Through the projects considered in the report "Investment in the Chilean Mining-Portfolio of Projects 2017-2026", as well as the information regarding current copper operations of the country obtained from the Annual Survey of Production, it is possible to determine the projection of copper production by the year 2028.

Download Report HERE 82 COCHILCO STUDIES

1.3 Water and Energy Consumption: Both water and energy are vital elements for mining activities. Therefore, Cochilco maintains various active areas of work, which combine monitoring both energy and water consumption in copper mining, as well as other issues that may arise.

The information is obtained through an annual survey that Cochilco administers to copper producing mining companies —those that are responsible for 95% of the metal’s national production—, the survey requests production data on fuel, electricity and water consumption. This data generates various reports, which among other, provides the following background:

• Energy and Water Historical Consumption in Copper Mining: In an effort to obtain a greater analysis on consumption within the various mining processes, unitary consumption coefficients are determined, which include both per ton of processed material and per fine copper content. Both are indicators that represent the intensity of the water and energy usage in each process.

Download Energy Report HERE

Download Water Report HERE COCHILCO STUDIES 83

• Projected electricity and water consumption in copper mining, 2016-2027: A survey is administered to companies in order to collect information on the projected annual energy and water production and overall demand within a 10-year horizon. Desalination plants and impulsion systems are considered for such projections.

Download Projected Water Report HERE:

Download Projected Energy Report HERE:

1.4 Exploration Company Registry: Given the importance exploration companies have in the discovery of both new resources and the future development of mining activities in the country, this particular area of work began in 2012 and a now registry is annually updated to include these small and medium sized exploration companies.

Download Exploration Report HERE

1.5 Competitiveness Ranking in Chilean Mining:

This area of work began in 2012 and from the beginning of 2015 has focused on two key variables, cost and productivity as specific competition factors.

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The latest reports that include this area of work are:

Monitoring the relevant variables and indicators of Medium and Small Mining

We also analyze the Chilean small and medium mining, which are relevant segments of the national mining development model, taking into account their contribution in terms of employment, investment, local development and community engagement.

Download Report HERE

Large-scale copper mining costs observatory

It is a quarterly cash cost (C1) monitoring of the large-scale copper mining that has been carried out since 2015, delivering four annual reports. This analysis covers nearly 90% of the domestic mine production and considers the simulation of the main spending elements of the cash cost, this is: electrical power, fuels, remunerations, services, credits for by-products, among other factors.

Download Cost Report HERE

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1.6 Analysis of the Environmental Assessment Process of Mining Projects In 2017, the report “Analysis of the Environmental Assessment Process of Mining Projects” was prepared for the first time, and it reviews the mining projects that entered the environmental assessment system, between 2011 and 2016 in terms of size, location, amount of investment, status and length. Download Report HERE

2. Conjectural and prospective monitoring and analysis of metal markets and relevant economic issues for Chilean mining.

The main products are:

• Weekly World Copper Market Report • Quarterly Copper Market Report • Periodic Copper Market Survey • Other price and production monitoring and projection reports for different markets

The Yearbook: Cooper and Other Mineral Statistics, which Cochilco publishes each year, accounts for major mining statistics within the past 20 years.

Download Yearbook HERE

The studies and reports produced by Cochilco, made public through www.cochilco.cl, advertised through a newsletter for subscribing users as well as various other means of communication.

SUBSCRIBE HERE. 0686 TRUST

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CODELCO

SONAMI

CHILEAN CHAMBER OF CONSTRUCTION

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CODELCO: BUILDING THE MINING OF THE FUTURE

• Building the new Chilean mining industry: sustainable, virtuous and inclusive • Codelco is the leading company and a motor of development of the country.

We are Codelco, an independent company, owned by all Chileans, the world’s top copper producer and the driving force behind Chile’s development.

In 2016, we produced 9% of the world’s mine copper production and 33% of domestic production, a total 1,827,000 tonnes of refined copper (including our stake in El Abra and in Anglo American Sur).

We are also the world’s second largest molybdenum producer, with a total output of 30,641 tonnes in 2016.

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We work towards a better Company for Chile In 2016 we exceeded our output goal, despite our lower ore grades. For the third consecutive year we reduced our direct cash costs, down 23% during this period. In the last two years, our production has improved by 13%, saving approximately a billion US dollars, thus more funds are contributed to the Chilean State.

We invest more than any other company in Chile Our investment portfolio is changing Chile’s extensive mineral reserves into contributions to the nation and it will allow us to continue to lead in the global copper industry. During the 2016-2020 period we will develop a US$ 18 billion Capex Plan. In 2016 we allocated US$ 2.738 billion to pre-investment feasibility studies and project portfolio.

Innovation is at the core of our business We foster innovation to create economic, environmental and social value based on knowledge. In 2016, we launched Codelco Tech, our technology subsidiary to drive the development of ground-breaking solutions to create a more efficient and competitive mining, with minimal environmental impact and safer operations.

Our priority programmes focus on automated processes, complex operational and large- scale data (BigData) management, search for breakthrough technologies, in metallurgical processes and sustainable innovations. TRUST 89

We looked for sustainable and traceable processes and products We have undertaken to improve our indicators, including but not limited to, human resources, energy usage and water recycling and usage, to achieve the traceability of our processes and products.

This commitment was formalised in 2016 via our Sustainability Master Plan, which will be our roadmap for the next 25 years.

Trust and transparency guide our management Our management aims to establish a new approach to communities, from the licence to operate towards sustainable, virtuous and inclusive mining.

At Codelco we have a real vocation for transparency, probity and good corporate governance. Therefore, we have applied a communication strategy that openly provides information on management performance to the general public, which is easily accessed on our website www.codelcotransparente.cl. In 2016 we received recognition for our efforts in this respect:

• 1st place in transparency among state-owned companies (Corporate Transparency Index). • 1st place in reputation among mining companies (Merco). • 7th place in overall reputation ranking among the 100 top companies (Merco). • 100% compliance with Transparency Law (Council for Transparency). 90 TRUST

We are implementing the largest investment plan in our history Codelco is developing structural projects that are currently at different stage of progress and consolidation.

Ministro Hales: the first structural project built. Location, Calama, Region of Antofagasta. Start-up: Since 2014. Chuquicamata Underground Mine In order to mine the resources under the current open pit for a further 40 years, the 100-year old mine will be transformed into a world class underground operation. Location: Calama, Region of Antofagasta. Stage: Execution.

North District Desalination Plant It will help to achieve water balance in the North District; the project will supply 630 liters of desalinated water per second. Location: Calama, Region of Antofagasta. Stage: Engineering

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Andina New Conveyor System We are currently building new facilities to replace the primary crusher and mineral conveyor systems to maintain the division’s current processing capacity. Location: Los Andes, Region of Valparaíso. Stage: Execution.

Rajo Inca Mine Its goal is to extend the useful life of Salvador Division, by mining the remaining resources, primarily at the Indio Muerto deposit. Location: Diego de Almagro, Region of Atacama. Stage: Prefeasibility.

El Teniente New Mine Level We are building a new mine level to deepen the mine operation at El Teniente Division to access new mineral reserves totalling 2.02 billion tonnes. Location: Machalí, Region of Libertador Bernardo O’Higgins. Stage: Execution. 92 TRUST

SONAMI: CHILE HAS UNBEATABLE INVESTMENT CONDITIONS

Diego Hernández, president of The Chilean Chambers of Mines (SONAMI)

"In the current situation that global mining is facing , Chile is an attractive destination for investment, as it has competitive projects, an interesting geological potential and the quality of its workers, technicians and professionals, all highly qualified to perform in this activity. In the same way, it has legislations and institutions that have granted conditions of competitiveness and confidence to investors. In addition, the new government that assumes soon has presented a program that considers offering attractive conditions so that the mining investment in the country is resumed".

The Chilean Chamber of Mines(SONAMI) is an institution with 135 years of existence that brings together and represents large, medium and small scale mining, metallic and nonmetallic.

It was founded on September 26, 1883. Over the years, it has contributed to the growth

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of private mining, improvement of mining institutions and legislation, as well as to the development of a skilful work force in this sector.

Currently, it brings together 76 medium and large mining companies and suppliers, as well as 38 regional mining associations, representing more than three thousand small miners.

SONAMI is founder member of the Inter-American Mining Society (SIM), an institution that gathers mining chambers and associations of the region. SONAMI is part of the Latin American Mining Organization (OLAMI), established by national coordination units of 16 countries in the region, where governments, businesses and academic authorities are represented. It also participates in the International Council on Mining and Metals (ICMM), which brings together leading mining and metal companies and associations of the world, which aims to ensure sustainable development for the mining industry.

Our main objectives are to support the development of private, large, medium and small size mining; be a reference for mining in Chile; represent the general interests of the sector before national, international authorities and agencies. Provide information and support services to its members in technical, legal, labor, environmental, tax and economic matters.

Currently, SONAMI has two non-profit foundations for the development of its strategic objectives: the National Mining Association Foundation and the Technological Foundation for Mining, focusing on job training, education, research, development, technology transfer, as well as support of culture and arts. 94 TRUST

CHILE, A COUNTRY OPEN TO THE WORLD

Sergio Torretti Costa, president Chilean Chamber of Construction

During the last three decades, the Chilean economy has followed a path of constant growth, controlled inflation and fiscal balance. These achievements were largely due to the country´s opening to the world through a score of trade agreements, which established links with more than 60 countries and made it the first South American economy in the OECD; it also became a permanent recipient of Foreign Direct Investment and the only economy in the continent within the 35 most competitive, according to The Global Competitiveness Index 2017-2018.

A long and satisfying route which has allowed the country to grow even 6.1% in 2011 and reduce income poverty from 14.4% to 11.7% between 2013 and 2015, according to the latest Socio Economic Characterization Survey (Casen).

Today, after overcoming an economic slowdown between 2014 and 2016 caused mainly by the slowdown of large nations such as China and the low price of copper, the country, especially

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the mining industry, faces the future with better expectations and with a wealth of new learning including greater efficiency and cost control, more sustainable and environmentally friendly operations and deep relationships established with communities and groups that share territory with different mining projects.

There is no doubt that what has been learned during copper’s low cycle has caused our mining industry to come out stronger and, in the eyes of the world, continue to be a source of admiration and attraction for future investments. In fact, according to the latest Forbes ranking of best countries to do business in, Chile ranks 36th, top among its neighbors.

According to figures from SONAMI, it is estimated that by 2021, more than 28 billion dollars will be invested by large mining companies present in Chile to start new projects. These are figures that seek to develop Chile’s potential as the holder of 29% of the world's copper reserves.

The successful development of the mining industry also represents an opportunity for various actors who provide services. One of them is construction, through machinery vendors, contractors and other supplies.

As the Chilean Chamber of Construction we represent 2,700 members and contribute 7.3% to National GDP. Most of our members work directly with mining, providing services on a permanent basis to the different projects underway. That´s why we understand perfectly the positive impact that mining development has on the growth of the country and its people.

Hence our optimism and conviction that the next few years will witness the development of important projects, which will keep Chile in its position as world mining leader. 96 TRUST

Fernando Acuña / Trade Comissioner of Chile in Canada [email protected]

Marta Hansen/ Head of Marketing, Ministry of Mining [email protected]

Christoff Janse/ Division of Investment Promotion, InvestChile [email protected]