Annual Report 2000 in PDF - Antofagasta plc

Chairman’s ReviewMININGMinera Los PelambresUS$1.36 billion project completedon budget and ahead of schedule298,900 tonnes produced in 2000Average cash costs of 35.6 centsper poundUS$108.4 million paid back toshareholders in the first yearConcentrator facilities at Los PelambresMinera Los PelambresLos Pelambres achieved or surpassed all itsproduction and financial targets during the year.Not only was the project completed within theoriginal forecast budget of US$1.36 billion,but construction and start-up was achieved30 days ahead of schedule and shipments ofconcentrates from the new port at Los Vilosto Japanese smelters began in January 2000.ANTOFAGASTA PLC Annual Report 20006Los Pelambres passed its Completion Tests inMay 2000, 18 months ahead of the projectedfinal completion date and on 10 July the Groupwas released from all its obligations under theCompletion Guarantee. Following this the banksand institutions which had lent Los PelambresUS$946 million released their charges over bothAntofagasta’s shares in Quiñenco S.A. and theUS$133 million held in escrow. Los Pelambresborrowings are now non-recourse to the Group.Los Pelambres contributed US$169.7 million toGroup profit before tax and minorities, whichwas higher than expected and the return oncapital employed was 17.1% against estimatesof 12.8%. In December, Los Pelambres madeits first principal repayment on Senior Debt