MINERA ESCONDIDA MERRILL LYNCH INVESTOR VISIT NOVEMBER 18, 2002 Presentation Content • Geographical Location • Escondida Strengths • Operations Operview • Production (Including Apollo) • Financials • Business Strategy • Growth Opportunities • Current Activities Base Metals CSG - Escondida - Merrill Lynch Analysts Andean Adventure Page 2 18 Nov 2002 World’s Premium Copper Region A TOCOPILLA CHUQUICAMATA I IV Northern Chile’s Atacama Desert, L CALAMA O B 160 km south east of Antofagasta. MEJILLONES ANTOFAGASTA CHILE COLOSO ZALDIVAR Cerro Colorado MONTURAQUI Quebrada Blanca Collahuasi ESCONDIDA El Abra Radomiro Tomic Chuquicamata Michilla Lince Spence TATAL Mantos Blancos Lomas Bayas Escondida El Tesoro Zaldivar EL SALVADOR CHAÑARAL ARGENTINA Manto Verde El Salvador POTRERILLOS La Candelaria INCA DE ORO Andacollo El Indio Los Pelambres El Soldado Andina Los Bronces El Teniente Base Metals CSG - Escondida - Merrill Lynch Analysts Andean Adventure Page 3 18 Nov 2002 Escondida Zaldivar Norte AerialLeach View Pads of MEL Zaldivar Pit Concentrator Main Pit Oxide Hamburgo Leach Pads Tails N Phase IV 5 km BasePlant Metals CSGsite - Escondida - Merrill Lynch Analysts Andean Adventure Page 4 18 Nov 2002 Coloso Filter & Port Base Metals CSG - Escondida - Merrill Lynch Analysts AndeanColoso Adventure Filter & Port Facilities Page 5 18 Nov 2002 Presentation Content • Geographical Location • Escondida Strengths • Operations Operview • Production (Including Apollo) • Financials • Business Strategy • Growth Opportunities • Current Activities Base Metals CSG - Escondida - Merrill Lynch Analysts Andean Adventure Page 6 18 Nov 2002 Escondida’s Strategy Builds on its Strengths to Maximize Long Term Value World’sWorld’s LargestLargest StrongStrong CopperCopper MineMine StrongStrong CashCash CreditCredit FlowFlow RatingsRatings Low Cost StrongStrong LowLow CostCost Producer SpSpononssoorsrs ProducerProducer DiversifiedDiversified StableStable SSaalesles BaseBase CountryCountry AbilityAbility toto UnequalledUnequalled ManageManage ResourResourcece ExExpansionspansions HighHigh QualityQuality ConcentrateConcentrate Base Metals CSG - Escondida - Merrill Lynch Analysts Andean Adventure Page 7 18 Nov 2002 World’s Largest Copper Mine Leading Copper Mine Sites Leading Copper Producers Escondida Ph IV Codelco Freeport Indonesia Escondida Ph IV Chuquicamata Collahuasi Phelps Dodge mpanies s e Morenci BHP Billiton El Teniente Grupo Mexico per Min Los Pelambres ducing Co Cop Bingham Canyon Rio Tinto Andina per Pro F-McMoran Rudna Cop KGHM Dzhezkazgan Oktyabryski Anglo 0 400 800 1200 0 500 1000 1500 Copper Production ('000 tonnes) Copper Production ('000 tonnes) Source: Brook Hunt & Associates, Note: BHP and Rio Tinto production shares include Calendar year 2000, plus shares of Escondida production. Brook Hunt do not rate Escondida Ph IV 2004 projection. Escondida as a stand alone company. Base Metals CSG - Escondida - Merrill Lynch Analysts Andean Adventure Page 8 18 Nov 2002 Sponsored By World’s Premier Metals & Mining Houses Mitsubishi Corporation 60% International Finance BHP Billiton Limited Rio Tinto Plc Mitsubishi Materials Corp 20% Corporation 100% 100% Nippon Mining & Metals Co Ltd 20% 2.5% Rio Tinto JECO BHP Escondida Inc Escondida Limited 10% 57.5% 30% Owners Council Minera Escondida Limitada Base Metals CSG - Escondida - Merrill Lynch Analysts Andean Adventure Page 9 18 Nov 2002 Total Ore Reserves and Mineral Resources: Official declaration at June 30, 2002, JORC Competent Person: Dr J M Gilligan Ore Reserves Mineral Resources Ore Tonnes Grade Metal Tonnes Grade Metal Type (millions) (%Cu) (mlbs) (millions) (%Cu) (mlbs) Sulphide 1,568 1.24 36,503 2,182 1.14 54,835 LG Float 582 0.60 6,157 1,409 0.59 18,421 Escondida LG Leach 658 0.43 6,209 Mixed 50 1.02 431 113 0.81 2,023 Oxide 208 0.69 2,706 280 0.64 3,935 Sulphide 649 1.33 19,014 Escondida Norte LG Float 642 0.58 8,190 Mixed 43 0.81 761 Oxide 142 0.79 2,476 Sub-Totals All Sulphide 2,149 1.07 42,660 5,540 0.87 106,669 Mixed 50 1.02 431 155 0.81 2,784 Oxide 208 0.69 2,706 422 0.69 6,411 TOTAL All Types 2,408 45,797 6,117 115,864 Base Metals CSG - Escondida - Merrill Lynch Analysts Andean Adventure Page 10 18 Nov 2002 Escondida Schematic Deposit Evolution Profile: Increasingly complex & variable geological conditions ⇐⇐⇐⇓variability ⇓⇒⇒⇒ “1991-1997” “1998-2010” Cu - Fe Oxides cc cc+cv+cp+py cp + py “>2010” py >> cp Base Metals CSG - Escondida - Merrill Lynch Analysts Andean Adventure Page 11 18 Nov 2002 Copper Production & Head Grade: Incremental Expansion to offset Progressive Reduction in Head Grade with Time Graphic Represents Mine Capacity, Actual Production Depends on Market Conditions Copper Production Production History & Forecast million lb Sulphide Ore Grade 3,000 3.0% Ore Grade 2,500 2.5% 450 ktpa Oxide 2,000 Ph. 3.5 Phase 4 at 110,000 tpd 2.0% P h a 3 1,500 s 1.5% e 300 ktpa Ph. 2 1,000 1.0% Ph. 1 500 0.5% Phase 0 Original Production Forecast 0 0.0% 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 fine copper production fine copper production fine copper production sulphide ore grade 1988 Project Approval through Phase 3.5 Phase 4 Expansion Phase 4 Expansion Base Metals CSG - Escondida - Merrill Lynch Analysts Andean Adventure Page 12 18 Nov 2002 Diverse Customer Base CY 2001 Concentrate Sales, By Country CY 2001 Cathode Sales, By Country Chile Bulgaria Spain Mexico Indonesia Sweden Iran Traders 2% 2% 2% 2% 1% 2% 1% 5% Japan 3% Finland Spain France 2% Taiwan 3% 4% 24% India China Japan 3% 4% 34% Canada South Korea 4% 5% South Korea USA 4% 5% Philippines 5% England 10% Italy Brazil 16% 5% China 6% Chile Holland 14% 10% Germany Brazil 10% 12% Base Metals CSG - Escondida - Merrill Lynch Analysts Andean Adventure Page 13 18 Nov 2002 C1 Unit Costs in the 1st Quartile CY01 Brook Hunt, Copper Industry C1 Cost Curve 160 140 120 100 80 (US c/lb) 60 40 Escondida Minesite C1 Cash Operating Cost 20 0 0 5,000 10,000 15,000 20,000 25,000 Cumulative Production (Mlbs) Escondida Real Cost and Cooper Industry estimatt e Base Metals CSG - Escondida - Merrill Lynch Analysts Andean Adventure Page 14 18 Nov 2002 Only 3 Producers with a Lower C3 Unit Cost CY01 Brook Hunt, Copper Industry C3 Cost Curve 160 140 e t 120 i st o nes C n ) 100 o i /lb da Mi c cct 80 S ndi u o U d ( c o s r 60 E P 3 C 40 20 0 0 5,000 10,000 15,000 20,000 25,000 Cumulative Production (Mlbs) Escondida Real Cost and Cooper Industry estimated Cost Base Metals CSG - Escondida - Merrill Lynch Analysts Andean Adventure Page 15 18 Nov 2002 Phase IV Expansion Components • An additional mine fleet – (1) 65 yd3 shovel, (6) 380 st haul trucks, (1) drill – Support equipment and maintenance shop expansion • In-pit ore crusher and conveyor to Phase IV concentrator – Relocation of existing crushers • 110,000 tpd Concentrator – 38-ft. SAG mill and (3) 25-ft. Ball mills – Conventional flotation using large cells, regrind, column cells • Concentrate handling – Slurry pipeline to existing concentrator, then on to the port – Added concentrate filtering and storage capacity – Modifications to port facility • Laguna Seca Tailings Facility – Tailings disposal for life of mine – both mills – Improved water reclaim to both mills Base Metals CSG - Escondida - Merrill Lynch Analysts Andean Adventure Page 16 18 Nov 2002 Phase IV: Laguna Seca Concentrator: Detailed Site Layout Base Metals CSG - Escondida - Merrill Lynch Analysts Andean Adventure Page 17 18 Nov 2002 Presentation Content • Geographical Location • Escondida Strengths • Operations Operview • Production (Including Apollo) • Financials • Business Strategy • Growth Opportunities • Current Activities Base Metals CSG - Escondida - Merrill Lynch Analysts Andean Adventure Page 18 18 Nov 2002 Employment Antofagasta Coloso Escondida Santiago Total Expatriates 3024 229 Operators 270162701699 Téchnical & Admin 15 1 89 1 106 Professional/Mgrs 51 17 426 9 503 Total 71 88 2166 12 2337 • Avg workforce age – 38 years Permanent Contractors 1770 • Avg length of service – 7 years • Employee turnover - 2% Projects & Construction 740 • Attendance rates - 97%+ • Female employees - 4% Total 4847 • Expatriate employees – 0.8% Base Metals CSG - Escondida - Merrill Lynch Analysts Andean Adventure Page 19 18 Nov 2002 Safety – Potential or Actual Level 4 Incidents 20 18 18 16 14 12 nts 10 de i c 10 n of I # 8 7 6 4 2 1 0 2000 2001 2002 2003 Fiscal Years Base Metals CSG - Escondida - Merrill Lynch Analysts Andean Adventure Page 20 18 Nov 2002 Dimensions Now Final E-W 2.2km 3.5km Escondida Mine Pit N-S Escondida Mine3.2km Pit 4.8km Depth 465m 750m Base Metals CSG - Escondida - Merrill Lynch Analysts Andean Adventure Page 21 18 Nov 2002 Escondida Mining Fleet FY-02 • Electric Rope Shovels – Total 13 – P&H 4100 XPB (73 yd Dipper) 2 – BE 495 (55 yd Dipper) 10 – BE 395 (30 yd Dipper) 1 • Haul Trucks – Total 89 – Komatsu 830E (240 mt) 28 – CAT 793 B&C (240 mt) 47 – CAT 797 (380 mt) 14 • Front End Loaders – Total 3 – CAT 994 (23 yd Bucket) 3 • Drills – Total 12 – BE 49R & R2s (8), IR DMM2s (2) & P&H 250XPs (2) • Auxiliary Equipment – Total 44 – Dozers (9-D10s & 4-D11s), Tiger 690s (2), RTDs (13), Graders (5-16Gs & 2-24Hs), Water Trucks (6-CAT 777s) & Cable Reelers (3-CAT950Fs) Base Metals CSG - Escondida - Merrill Lynch Analysts Andean Adventure Page 22 18 Nov 2002 Mine Production – ‘000s TPD Ex-Pit 1000 900 800 700 y a D r 600 pe s 500 901 928 930 Tonne 835 841 863 863 s 400 0 0 725 0 678 681 ' 300 200 100 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Fiscal Years History Forecast Budget Base Metals CSG