Annual Report 2000 in PDF - Antofagasta plc

18 Loans (continued)Borrowing facilitiesThe undrawn committed facilities available at 31 December 2000 in respect of which all conditions precedent had beenmet at that date, were as follows:US DollarsSterling2000 1999 2000 1999US$m US$m £m £ma) Expiring in one year or less 94.2 91.2 63.1 56.3b) Expiring in more than one but not more than two years – 180.0 – 111.1c) Expiring in more than two years – 30.0 – 18.594.2 301.2 63.1 185.9The available borrowing facilities of US$94.2 million (£63.1 million) comprise:i) US$55.5 million (£37.2 million) under the financing agreements for the El Tesoro project which remain available fordraw-down until the project is completed.ii)iii)US$10.0 million (£6.7 million) at Michilla to finance any unexpected cost overruns or delay in the El Tesoro project.US$28.7 million (£19.2 million) facility for general corporate purposes in the Railway subsidiary which is availableon demand.19 Financial Instruments and Risk ManagementThe Group purchases or issues financial instruments in order to finance its operations and to manage the interest rate,currency and liquidity risks that arise from operations and from its sources of finance. In addition, various financialbalances, such as trade debtors and creditors arise directly from the Group’s operations.With the exception of a five year zero cost collar agreement for loans totalling US$90 million (£60.2 million) undertakenat Los Pelambres there has been no significant change in the risk profile between the year end and the date of thesefinancial statements.The notional amounts of derivatives summarised below do not necessarily represent amounts exchanged by the partiesand as a result are not a measure of the exposure of the Group through the use of derivatives. The amounts exchangedare calculated on the notional amounts and other terms of the derivatives which related to copper prices, interest andexchange rates.The disclosures below exclude short-term debtors and creditors with the exception of short-term borrowings.The Board believes that the year end figures shown in the following disclosures reflect the objectives, policies andstrategies on the use of financial instruments.ANTOFAGASTA PLC Annual Report 200063