Annual Report 2000 in PDF - Antofagasta plc

Chairman’s ReviewTRANSPORT ANDREAL ESTATERailway OperationsTonnage increased from 3.1 milliontons to 3.3 million tonsGrowth in road and ancillary servicesBolivian railway interests restructuredOperating profits maintainedRailway Operations – ChileAntofagasta Railway Company plc (FCAB)The FCAB set a new record by increasing totaltonnage carried during the year from 3.1 millionto 3.3 million tons. This confirmed the strongupward trend since 1994, when the total was1.3 million tons, an overall increase of 154%over six years.Copper cathodes and sulphuric acid, an integralpart of the standard heap-leach SXEW processwidely used in Chile, again made up the bulkof the tonnage carried. Over 1.4 million tonsof sulphuric acid were carried in 2000 withoutany incidence of spillage or damage to theenvironment. This demonstrates a preference bymining companies to choose rail over road for themovement of their hazardous materials, alwaysproviding that the FCAB's rates are competitive.Despite low levels of business activity generallyin Chile during the year, the FCAB and itsprincipal mining clients maintained or increasedtheir operating levels. The FCAB recently signeda ten year freight contract with El Tesoro whichwas the only new mining project being developedin the region during 2000. The railway willtransport approximately 42,000 tons of Tesorocathodes for export and deliver 96,000 tons ofsulphuric acid to the mine during 2001, risingto 80,000 tons and 180,000 tons when fullproduction is reached in 2002.ANTOFAGASTA PLC Annual Report 200014FCAB cars loading acid at MejillonesThe tonnage outlook for 2001/2002 is veryencouraging, with significant mine developmentsunderway at Zaldívar (Placer Dome) and El Abra(Phelps Dodge-Codelco) which will increaseor maintain their present production levels.These developments equate to substantialincreases in tonnage levels which will requiremore locomotives and rolling stock for serviceduring 2001. The additional locomotives willinclude at least 10 re-conditioned General MotorsG.R. 12 and G.R. 22 locomotives and 80 new tankcars, which will be built to strict environmentalstandards and assembled in the FCAB workshopsin Antofagasta.