REG - Antofagasta PLC - LOS PELAMBRES DESALINATION PROJECT UPDATE

AntofagastaAnnouncement

05/10/2022 09:31

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RNS Number : 7526B  Antofagasta PLC  04 October 2022

NEWS RELEASE, 4 OCTOBER 2022

 

LOS PELAMBRES DESALINATION PROJECT UPDATE

 

On 12 September the Company announced that severe sea swells had overturned a
construction platform working on the marine works of the Los Pelambres
desalination plant project. At that time, the environmental regulator, the
SMA, halted all marine works pending the recovery of the lost equipment and
materials. This restriction expired on 3 October and has not been extended.

Sea conditions continue to prevent the complete recovery of all the lost
equipment and this has prevented the resumption of marine construction work
since this restriction was enforced in September. As a result, the suspension
of the works has impacted the completion schedule for the desalination plant
project. A revised schedule incorporating this delay together with the impact
of continued sea swells on the remaining marine works is being finalised.

There is not expected to be a material increase in the total capital cost of
the project as a result of the delayed resumption of works.

Despite the revision of the completion date of the desalination plant, water
availability this year at Los Pelambres will allow Group copper production in
2022 to reach the lower end of the 640-660,000 tonne guidance range.

The completion of the desalination plant is now estimated to impact previously
planned production in 2023 by approximately 30,000 tonnes. This will be
reflected in the Group's total copper production guidance for the year which
will be announced in the Company's Q3 Production Report on 19 October.

The overturned platform has caused no significant environmental impact to
date.

 

 Investors - London                                                                  Media - London
 Andrew Lindsay      alindsay@antofagasta.co.uk (mailto:alindsay@antofagasta.co.uk)  Carole Cable      antofagasta@brunswickgroup.com (mailto:antofagasta@brunswickgroup.com)
 Telephone           +44 20 7808 0988                                                Telephone         +44 20 7404 5959
 Rosario Orchard     rorchard@antofagasta.co.uk (mailto:rorchard@antofagasta.co.uk)
 Telephone           +44 20 7808 0988                                                Media - Santiago
                                                                                     Pablo Orozco      porozco@aminerals.cl (mailto:porozco@aminerals.cl)
                                                                                     Carolina Pica     cpica@aminerals.cl (mailto:cpica@aminerals.cl)
                                                                                     Telephone         +56 2 2798 7000

 

 

Cautionary Statement

This announcement contains certain forward-looking statements. All statements
other than historical facts are forward-looking statements. Examples of
forward-looking statements include, without limitation, those regarding the
Group's strategy, plans, objectives or future operating or financial
performance, reserve and resource estimates, commodity demand and trends in
commodity prices, growth opportunities, and any assumptions underlying or
relating to any of the foregoing. Words such as "intend", "aim", "project",
"anticipate", "estimate", "plan", "believe", "expect", "may", "should",
"will", "continue" and similar expressions identify forward-looking
statements.

 

Forward-looking statements involve known and unknown risks, uncertainties,
assumptions and other factors that are beyond the Group's control. Given these
risks, uncertainties and assumptions, actual results, performance or
achievements could differ materially from any future results, performance or
achievements expressed or implied by these forward-looking statements, which
apply only as at the date of this report. These forward-looking statements are
based on numerous assumptions regarding the Group's present and future
business strategies and the environment in which the Group will operate in the
future. Important factors that could cause actual results, performance or
achievements to differ from those in the forward-looking statements include,
but are not limited to: natural events, global economic and financial
conditions (which may affect our business, results of operations or financial
condition); various political, economic, legal, regulatory, social and other
risks and uncertainties across jurisdictions in which the Group operates;
changes to mining concessions or the imposition of new mining royalties, or
changes to existing mining royalties in the jurisdictions in which the Group
operates; the Group's ability to comply with the extensive body of regulations
governing the mining industry, as well as the need to manage relationships
with local communities; the ongoing effects of the global COVID-19 pandemic;
demand, supply and prices for copper and other long-term commodity price
assumptions (as they materially affect the timing and feasibility of future
projects and developments); trends in the copper mining industry and
conditions of the international copper markets; the effect of currency
exchange rates on commodity prices and operating costs; the availability and
costs associated with mining inputs and labour; operating or technical
difficulties in connection with mining or development activities;  risks,
hazards and/or events and conditions inherent to the mining industry, which
may affect our operations or facilities; employee relations; climate change as
well as the effects of extreme weather conditions; the outcome of any
litigation arbitration, regulatory or administrative proceedings to which the
Group is and may be subject in the future; and actions and activities of
governmental authorities, including changes to laws, regulations or taxation.

 

Except as required by applicable law, rule or regulation, the Group does not
undertake any obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise. Past performance cannot be relied on as a guide to future
performance.

 

No statement in this announcement is intended as a profit forecast or estimate
for any period. No statement in this announcement should be interpreted to
indicate a particular level of profit and, as a consequence, it should not be
possible to derive a profit figure for any future period from this report.

 

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