Antofagasta PLC
25 May 2007
For immediate release
Antofagasta plc
Minera Los Pelambres - El Mauro tailings dam project
London, 25 May 2007 - As previously announced, there a number of claims
currently at first instance or on appeal in the Chilean courts against third
parties (either governmental authorities or former owners of land in the El
Mauro area) which relate to the Mauro tailings dam project. None of these cases
are directly against Los Pelambres, but in some cases the company has
participated in proceedings in case an eventual judgement affects the tailings
dam project.
In one of these cases, a first instance court in Santiago rejected a
sixth petition by the plaintiff in that case on 18 May 2007 that work on the
Mauro tailings dam should cease immediately, confirming Los Pelambres' right to
complete its construction. The court nevertheless has held that operation of the
dam by depositing tailings cannot for the moment commence, and Los Pelambres
intends to appeal against this part of the decision. This resolution was issued
following a first instance judgement issued on 19 April, in which the validity
of a purchase and sale agreement in 1992 between two former owners of land in
the area of the Mauro tailings dam was successfully challenged by the plaintiff
seller. Los Pelambres, who acquired the land in 2001, had participated in this
trial to protect its interest and has appealed against this decision to the
Court of Appeals. The appeal has the effect of suspending the effect of the
first instance resolution. Current operations are unaffected as the Quillayes
dam remains in use.
The Group is confident that Los Pelambres' legal title to the land in question
will be upheld on appeal and it believes that this as well as any other
outstanding claims will not have any material impact on the Mauro tailings dam
project. Construction of the tailings dam, which is now 86% complete, is
continuing in accordance with the original schedule and the project is expected
to be completed as planned by the end of 2007.
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|Enquiries - London | Enquiries - Santiago|
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|Antofagasta plc | Antofagasta Minerals S.A.|
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|Tel: +44 20 7808 0988 | Tel: +562 377 5000|
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|www.antofagasta.co.uk | Francisco Veloso|
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| | Email: fveloso@aminerals.cl|
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|Desmond O'Conor | |
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|Email: doconor@antofagasta.co.uk | |
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| | Issued by|
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|Hussein Barma | Bankside Consultants|
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|Email: hbarma@antofagasta.co.uk | Tel: +44 20 7367 8873|
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| | Keith Irons|
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| | Email: keith@bankside.com|
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| | Oliver Winters|
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| |Email : oliver.winters@bankside.com|
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