Antofagasta proves profitable (September 09, 2002)

Bucking the trend of many copper producers, Antofagasta posted a profit of US$52.5 million for the first six months of 2002.

This marks an 84% jump over the US$28.5 million tallied in the first six months of 2001. The company, which is based in London but controlled by Chilean interests, saw copper production from its three mines in Chile increase 9% to 210,900 tonnes, while average cash costs dropped to US39 per lb. from the US41 per lb. recorded in the corresponding period of 2001.

“These results demonstrate the strength of the group despite the current period of low copper prices,” says Jean-Paul Luksic, chief executive officer of Antofagasta Minerals, the group’s mining division.

Driving the profit surge was a strong performance by the El Tesoro mine, which was under development during the first half of last year. Situated in northern Chile’s Region II, the operation cranked out 40,600 tonnes of copper cathodes during the first half of 2002.

In the same region is the Michilla mine, which produced 25,500 tonnes of copper cathode.

The company’s biggest mine, Los Pelambres, in north-central Chile, contributed 144,800 tonnes of copper concentrate in the first half.

Chile’s Luksic group holds about 60% of Antofagasta.