Highlights 2 - CODELCO · Waldo Fortin Cabezas SENIOR VICEPRESIDENT, OPERATIONS Fernando Riveri...

Highlights 2Board of Directors 4Officers 5Letter from the President and ChiefExecutive Officer 6

The Strategic Plan and its

Progress 8

Financial and Economic

Results 18

Consolidated Financial

Statements 26

Offices, subsidiaries and sales representatives 67Executives 70

A N N U A L R E P O R T 2 0 0 0

Productivity

21,000

19,000

17,000

15,000

13,000

11,000

9,000

7,0001996 1997 1998 1999 2000

Number of workers90

80

70

60

50

40

30

Tons/worker

Income before tax and the copper price

1,200

1,000

800

600

400

200

01996 1997 1998 1999 2000

US$ millions

110

100

90

80

70

60

50

40

30

¢/lb

Income before tax Copper price

Own employees Productivity

Highlights

Financial performance (US$ million) 1996 1997 1998 1999 2000

Sales 2,940 3,426 2,730 2,944 3,610

Income before taxes 1,103 1,011 355 572 753

Treasury contributions 1,044 1,173 355 269 702

Total assets 4,953 5,172 5,823 5,817 5,819

Total liabilities 2,191 2,490 3,127 3,035 3,042

Equity 2,762 2,683 2,696 2,782 2,777

Investment 712 873 670 356 504

Copper production(*)

Thousands of metric tons 1,237 1,326 1,501 1,615 1,612

Personnel (December 31st)

Own personnel 18,879 18,496 18,258 17,313 17,349

Operating contractors 7,998 9,686 9,595 9,346 10,786

Investment contractors 8,421 11,350 6,307 3,500 5,410

Average copper price (¢/lb)

LME Grade A cathodes 103.9 103.2 75.0 71.4 82.3

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* Includes Codelco’s share of El Abra

PRESIDENTMinister of the Economy, Miningand EnergyJosé de Gregorio Rebeco

DIRECTORMinister of FinanceNicolás Eyzaguirre Guzmán

DIRECTORRepresentative of the Presidentof the RepublicMarco Colodro Hadjes

DIRECTORRepresentative of the Presidentof the RepublicPatricio Meller Bock

DIRECTORRepresentative of the Presidentof the RepublicVice-AdmiralMiguel A. Vergara Villalobos

DIRECTORRepresentative of the NationalAssociation of Copper SupervisorsLuis Castelli Sandoval

DIRECTORRepresentative of the Copper WorkersFederationRaimundo Espinoza Concha

Board of Directors

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PRESIDENT AND CHIEF EXECUTIVE OFFICERJuan Villarzú Rohde

CHIEF FINANCIAL OFFICERJuan Eduardo Herrera Correa

CHIEF DEVELOPMENT OFFICERJuan Enrique Morales Jaramillo

CHIEF OF LEGAL AFFAIRSWaldo Fortin Cabezas

SENIOR VICEPRESIDENT, OPERATIONSFernando Riveri Cerón

SENIOR VICEPRESIDENT, MARKETINGRoberto Souper Rodríguez

SENIOR VICEPRESIDENT, EXPLORATION ANDMINING JOINT VENTURESSilvio Girardi Morales

SENIOR VICEPRESIDENT, HUMAN RESOURCESRafael Estévez Valencia

SENIOR VICEPRESIDENT, BUSINESS DEVELOPMENTMario Espinoza Durán

AUDITORMarcelo Mobarec Asfura

GENERAL MANAGER CHUQUICAMATA DIVISIONCarlos Rubilar Ottone

GENERAL MANAGER RADOMIRO TOMIC DIVISIONLuis Farías Lasarte

GENERAL MANAGER SALVADOR DIVISIONFidel Báez Núñez

GENERAL MANAGER ANDINA DIVISIONGermán Morales Gaarn

GENERAL MANAGER EL TENIENTE DIVISIONRubén Alvarado Vigar

GENERAL MANAGER TALLERES DIVISIONAlex Acosta Maluenda

4 5

Officers

In march 2000, the President of Chile and Codelco’s

Board of Governors, granted me the honor of

becoming the President and Chief Executive Officer

of Codelco. Thus, I have been granted the privilege

of resuming the leadership of the country’s biggest

company and the world’s largest producer and

exporter of copper.

In 1994, with an excellent team, we took on the

challenge of recovering the Corporation from the

profound crisis affecting it and reinstating it among

the industry’s most competitive companies. At that

time, we gave ourselves from1993 to 1999 to reduce

costs by 10 cents per pound of copper, raise

production by 500,000 metric tons of copper, and

improve the productivity of our workforce by at least

50%. Furthermore, we committed ourselves to provide

the Treasury with all our income before taxes and,

as a result, to finance our investment needs using

funds from other sources, mainly depreciation of our

fixed assets, higher provisions, and the sale of non-

core assets.

We met all these commitments and more. Codelco

today remains a world leader, has positioned itself

as one of the industry’s lowest cost firms, and remains

one of the State’s most important sources of financing:

From 1994 to 1999 Codelco paid a total of

US$5.447 billion to the Treasury.

Workers, supervisors and executives have joined

forces to confront adversity and work together to

recover the company’s competitiveness and credibility.

The results demonstrate our success. I feel proud to

have been, at least for a while, part of this major

effort.

Having left behind the recovery period, the challenge

over the coming years will be to consolidate Codelco

as the leader of the industry and to substantially

increase its value and ability to generate income, for

the benefit of its shareholders, all Chileans.

From this perspective, once I assumed this position

I began a process of strategic reflection with the

participation of the entire body of executives,

supervisors and workers. This process culminated in

the formulation of the Company’s Common Plan for

the six-year period from 2001-2006, which represents

the synthesis of a broad agreement regarding the

future vision of copper and Codelco, the values that

must be highlighted throughout the actions of the

Letter From the President andChief Executive Officer

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6 7company and all those who work for it, its mission,

the kind of business to which it gives priority, the

management model and its strategic drive.

The company’s officers, the Federation of Copper

Workers, the Federation of Copper Supervisors, and

the National Association of Copper Supervisors,

reached an agreement on a Strategic Alliance that,

without diluting the specific roles of each, commits

all parties to acting consistently with common

interests, as reflected in the Plan.

The Plan seeks to create the conditions necessary

for the full realization of the Corporation’s business

potential. This has translated into a commitment to

double the company’s worth over the next six-year

period, bringing its net income gradually up to US$1.8

billion toward the period’s end, assuming a normal

long-term copper price.

To achieve the proposed targets will require pushing

the Corporation’s strengths to the limit and getting

the most out of business opportunities in the area

of its core business, as well as giving priority to

strategic alliances with private investors and operators

in Chile and abroad. It also demands that we

transform Codelco into a global company, fully

integrated into the new economy.

Next 11 July we will celebrate the 30th anniversary

of the copper’s nationalization and Codelco’s creation.

This offers an excellent opportunity to evaluate our

achievements, communicating them to our

compatriots and vigorously projecting ourselves into

the future. We can be satisfied with what we have

achieved to date. However, we must not go to sleep

on our laurels.

The challenge is to implement our Common Plan.

It is an ambitious task, but it is consistent with the

contribution the company is capable of making to

the well being of all chileans, especially the poorest

among us. We have said that Codelco is the best

business in Chile. This has been the case in the past

and we will do everything in our power to ensure

this continues to be true in the future.

JUAN VILLARZU ROHDEPresident and Chief Executive Officer

Codelco’s mission is to fully develop its

mining and related business skills in a

responsible and flexible manner, in

order to maximize its long-term

economic worth and its contribution

to the country.

Mission

2000 was a transitional year. On one hand, PresidentRicardo Lagos and his team took over the leadershipof the country in March, a situation that involved changesto the company’s Board of Directors and Officers. Onthe other hand, once the emergency triggered by thesharp drop in the copper price in 1999 was overcome,it was necessary to rethink the company’s developmentstrategy, in light of the challenges of globalization andthe new economy.

The President and Chief Executive Officer led a processof strategic reflection in which representatives of everybody within the company participated: executives,supervisors and workers. This process culminated inthe Company’s Common Plan for the six-year periodfrom 2001-2006.

Management, the Federation of Copper Supervisors(FESUC), the Federation of Copper Workers (FTC),and the National Association of Copper Supervisors(ANSCO) all reached an agreement on the meaningand content of the Strategic Alliance. In effect, thepurpose of the Alliance is to join forces to achieve the

implementation of the Common Plan, with theunderstanding that this will benefit all parties to theagreement, without lessening the independence andspecific role of each party.

The Common Plan involves agreements with regardto the vision of the future of copper and Codelco; thevalues that must inform every action by the companyand every one of its workers; its mission; the businessareas in which it will concentrate its efforts; the targetsand commitments to be met over the next six years;the management model and strategic drives or priorities.

New missionThe Common Plan defines a vision of the future thataims to consolidate Codelco as the world leader ofthe copper industry in competitiveness and operatingexcellence, reinforcing its positioning in a globalisedworld. In this context, Codelco has updated its “mission”,redefining it as follows:

Codelco’s mission is to fully develop its mining and relatedbusiness skills in a responsible and flexible manner, inorder to maximize its long-term economic worth and itscontribution to the country.

Targets and commitmentsIn line with its mission, Management, with the agreementof workers’ representatives, has set the target of doublingthe company’s value during the 2001-2006 period.Moreover, it has committed itself to paying all netoperating revenue to the Treasury.

Strategic Alliance and Common Plan

10 11Our challenge is to increase these transfers from US$1.4 billionin 2001 to US$1.7 billion toward the end of the six-year period,assuming that the copper price hovers around its long-termaverage value.

Compliance with these commitments depends, among otherfactors, on the successful and opportune implementation ofinvestments contemplated in the Common Plan, which totalsUS$3.6 billion for the six-year period, and the results that wehope to obtain from new business undertaken abroad.

The Company’sStrategic Priorities

To make these commitments a reality, Codelco has definedseven strategic priorities on which it must focus its efforts:

• To fully develop its business potential, both in Chile andabroad.

• To develop the potential of workers and supervisors, enhanceparticipatory management, and deepen the Strategic Alliance.

• To ensure the integral quality and ongoing improvement ofprocesses.

• To incorporate technology as an essential requirement forcompetitiveness.

• To create new markets and promote copper consumption.

• To reinforce its commitment to the environment andstrengthen its ties with the community.

• To create the institutional conditions that will allow it tocompete in equal conditions with the industry’s private firms.

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Investment andProjects

InvestmentIn 2000, the company carried out investment worthUS$504 million, which it spent mostly on building thesecond sulfuric acid plant at Caletones and the definitivetransportation system for El Teniente Division acid,along with executing the third stage of the Carentailings dam. At Chuquicamata, the main investmentwent to purchasing trucks and shovels for ore extraction.

This past fiscal year also saw progress in the executionof the main projects that form part of the StrategicPlan’s investments, among them the expansion ofRadomiro Tomic, implementation of Teniente’sDevelopment Plan (PDT) and the development of theGaby and Mansa Mina projects.

Radomiro Tomic ExpansionFor an investment of US$171 million during this period,this project aimed to increase this division’s productioncapacity from 180,000 to 256,000 tons.

In 2000, work focused mainly on expanding theheapleaching area and installing an additional storagearea and a tertiary crushing plant. With startup,scheduled for the first half of 2001, Radomiro Tomicwill become the world’s largest electro-winning cathodefacility and one of its lowest cost copper operations.

El Teniente Development Plan,PDTThis initiative aims to increase the ElTeniente division’s production capacitystarting in the second half of 2003 from350,000 to 480,000 tons, with severalprojects in new mine sectors and theexpansion of the concentrator plant andsmelter. For an overall investment ofUS$1.112 billion over five years, the PDThas projected a useful life of 25 years,

during which it will contribute to reducing cash costsby about 18 ¢/lb, increasing net revenue by US$210million.

The Gaby ProjectWith extraordinary potential, Gaby is the result of theCorporation’s new drive for mining exploration. Located100 km south of Calama, equidistant from Chuquicamataand Escondida, its resources are estimated at 400million tons of ore with an average grade of 0.54%.With the information currently available, Gaby’sproduction range is estimated at between 70,000 and120,000 tons per year, in the form of cathodes.

The drilling campaign planned for 2001 aims to definecopper oxide reserves and, using this method, establishthe economic viability of this operation.

Mansa Mina2000 also saw the successful reconceptualization ofthe geological model for this deposit, based on newdeep drilling, and laboratory metallurgical studies, anda pilot plant with new technology for processing highgrade copper and arsenic ore.

The development of this sulfide deposit located betweenCalama and Chuquicamata was stopped for some yearsdue to unresolved technical problems.

Mansa Mina’s estimated reserves are around 500 milliontons with an ore grade of over 1% copper.

The main stages aim to quantify reserves in the deposit’scenter, explore the reserves located in its depths, andtest the technology for bioleaching concentrates at aplant to be installed in Chuquicamata.

Investment 2000

(US$ million)

Projects under development 299Radomiro Tomic expansion 171Chuquicamata truck purchase 35

Replacement of equipment and facility repairs 98Environment and occupational safety 71

Teniente’s 2nd plant and acid trasportation 39Research and studies 21Exploration 15

Total 504

12 13Codelcoa Good Neighbor

Established as a strategic priority, the company’scommitment to its surroundings and the preservationof the environment has been implemented through the“Codelco a good neighbor” policy, which has led to thepromotion and development of several initiatives infavor of the communities located near Codelcooperations.

Among the more relevant experiences is the initiativethat will move more than 2500 families fromChuquicamata, Radomiro Tomic, El Abra and other firmsand integrate them into life in Calama. This major project,of a strategic nature, to be implemented along with thecommunity and local authorities, will turn this city intoa modern urban center.

In 2000, the company made significant progress in thedevelopment of activities to incorporate better qualityof life and support the development of communitieslocated around its operations. In Region II, theChuquicamata and Radomiro Tomic divisions, along withthe regional government (Intendencia), have strengthenedthe sustainable development program for the area’srural and indigenous communities.

At the Salvador division, building and expanding thePampa Austral tailing pond has permitted managing lotsfor their forestation. Similarly, the El Teniente divisioncontinued work to preserve the buildings at the oldSewell mining camp, so it may be declared a WorldHeritage site. At present, a project to establish a miningmuseum and stimulate regional tourism is beingdeveloped.

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Exploration Joint Ventures

Partner Type

Projects in Chile:Yabricoya Cominco (Canada) CopperAnillo Billiton (South Africa) CopperAguila Rio Algom (Canada) CopperSan Bartolo Minorco (England) CopperTuina Inversiones North (Australia) CopperSierra Mariposa Placer Dome (Canada) CopperMamiña Lowell Minerals CopperRío Hurtado Barrick (US) Copper/Gold

Projects Abroad:

State of Sonora Peñoles (Mexico) Copper

Explorationand Joint MiningVentures

During this period, Codelco invested over US$15 millionin geological exploration through several joint miningventures. Within Chile, exploration ranged throughoutthe cordillera of Regions I to IV. Given how significantthe company considers resources close to its divisionalpoles, the discovery of Toki, a mineralized ore body inRegion II, containing copper oxides and sulfides, standsout. Its potential for leaching ore could reach 400million tons, with grades of around 0.5%.

Another outstanding feature of the period was theagreement signed by Codelco and Barrick Chile toexplore, operate and possibly develop a company torun the Río Hurtado property. This is the first jointventure involving property belonging to third parties.It will explore for copper-gold porphyry ore.

Finally, the joint venture (Codelco-Homestake) runningthe Agua de la Falda mine produced 44,930 ounces ofgold in 2000. Exploration of Manto Jerónimo hasincreased reserves to 500,000 ounces of gold.

14 15

In 2000, Codelco’s management introduced severalshifts of emphasis into its business. One of these involvedthe decision to put more energy into efforts tointernationalize the company. The basis for this neworientation was to make the most of businessopportunities, using a formula that allows us to minimizerisk and strengthen complementary features.

Although our initial effort to take control of Rio Algomfailed, the company sent out a powerful signal aboutthe direction it will take in the future. At the same time,the Corporation continues to deepen its work withother foreign firms and it has developed importantjoint ventures through Alliance Copper, the OutokumpuAgreement and Pecobre.

Alliance CopperCodelco and Billiton set up this company in August2000 to exercise exclusive international rights to marketbioleaching of sulfide ores containing copper andmolybdenum. During this period, the company begana feasibility study for a project, to be set up withinChuquicamata, of a commercial prototype plant withthe capacity to produce 20,000 tpy of copper. This jointventure took the form of a cooperation agreementestablished in 1997, to study and develop concentratebioleaching technology using bacteria.

PecobreThe Pecobre Mining Company (Sociedad MineraPecobre), a firm made up of Codelco and the PeñolesMining Group of Mexico, the world’s largest silverproducer, developed its first international explorationeffort in 2000. For an investment of over US$3 million,this company positioned itself strategically during thisperiod in one of Mexico’s most promising copper areas.

Mining MarketplaceCodelco, together with other major industry companies,participated actively in the creation of the first dot.comcompany set up to operate a global electronicmarketplace for exchanging mining goods and services.

The new company came into being in October, withthe signing of a shareholders pact, which led to thelaunching of Quadrem.com. The 14 founding companiesrepresent over 60% of international mining and metalsmarket capitalization.

This virtual market will use a multifaceted commoncatalogue of products and will allow participants,regardless of their size or geographic location, to buyfrom and sell to a huge set of buyers at the local andworld levels.

Internationalization

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Research andTechnologicalInnovation

The company’s powerful commitment to technologicalinnovation and research was reflected in the progressof innumerable initiatives during 2000 and the corporatetechnological programs: underground mining, oreprocessing, and optimization of the Teniente converterand technology.

The company has carried out most of this work throughits technological affiliate, the Institute for Innovation inMining and Metallurgy (IM2), a body that was involvedin around 80 projects during this fiscal year, many ofwhich are finished or have reached the final phase ofplant prototypes.

Of the technological projects that have been addressed,we have identified nine projects with potential forbusiness with third parties, among them, for example:an automatic sampler of blasting wells, a nuclear sensorof ore grades in blasting wells, and a digital analyzer ofEW cathode quality. Moreover, we have presented ninepatent applications, some of which refer to the productsdescribed above.

Overall, Codelco spent US$17 million on technologicalinnovation and research during 2000, most of it withinthe country.

Agreement with OutokumpuAlso in line with our goal of making the most of businessopportunities, the Corporation and Outokumpu signedan agreement for cooperation in 2000 whose purposeis to develop conversion technology capable of meetingthe strictest international environmental standards andraising the competitiveness of Codelco’s smelters.

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Copper SalesMain destination in 2000

Country Tons %

China 318,064 17.0USA 204,184 10.9France 195,011 10.4South Korea 193,820 10.4Germany 133,582 7.1Chile 131,149 7.0Taiwan 125,523 6.7Italy 115,813 6.2Mexico 82,312 4.4Brazil 78,859 4.2Japan 54,327 2.9United Arab Emirates 50,397 2.7Others (under 50,000 tons) 189,251 10.1

Total sales 1,872,292 100

Market Development

In 2000, Codelco’s sales of copper rose to 1.8 millionmetric tons up 5% over the previous fiscal year. Similarly,the company expanded its portfolio of destinationmarkets, increasing sales to China, United Arab Emirates,Taiwan, Mexico, USA, and Canada, as well as on thedomestic market. Distribution by regions saw a strongincrease in sales to Asia, due to the persistent recoveryof the Asian economies and particularly China’sconsolidation as the main destination for our exports.

With regard to the strategy for promoting copper,during the year the Corporation actively participatedin designing the new strategic plan for the InternationalCopper Association (ICA), approved by the board ofdirectors last October, whose main goal is to increasecopper demand by around 750,000 tons above naturalgrowth, toward 2005.

To achieve these goals, ICA is currently promoting newinitiatives centered on stimulating copper demandamong industrial sectors with the highest potential forgrowth in consumption (construction, generation anddistribution of energy, automotive manufacturing, amongothers) and the most attractive geographic markets,such as China, India and the United States.

At the same time, this strategic design aims to obtainbenefits for those manufacturers, users and partnerswho develop new applications for the metal; to thisend, different marketing campaigns aiming at growthmarkets will play the leading role.

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Financial andEconomicResults

KeepingPromises

In 2000, the Corporation generated

earning for US$753 million, while its

contribution to the Treasury reached

US$702 million.

Income Before Taxand TreasuryContributions

In 2000, the Corporation’s income before tax reachedUS$753 million, up 31% over 1999’s earnings of US$572million. The improved copper price was the decisivefactor in this improved result.

For the fiscal year, EBITDA (income before interest,taxes, depreciation and amortization) reached US$1.286billion, up from US$1.081 billion in 1999.

In 2000, the price of copper experienced a significantrecovery, a situation that coincided with a strong dropin metal stocks. Thus, for the year, the average copperprice on the London Metal Exchange reached 82.3 ¢/lb,up 15% over the 71.4 ¢/lb average in 1999.

As a result, Codelco’s contribution to the Treasury roseto US$702 million, up by US$433 million from theUS$269 million contributed in 1999.

The higher contribution was mainly the result of higherearnings for the year and, to a lesser degree, mismatchesin tax payments pending from the previous year andretained earnings.

Operating income for 2000 rose to US$833 million,up by US$216 million from 1999. The increase in resultswas the result of both the better market price for themetal, as well as larger shipments of the company’sown copper.

Contributions to the Treasury(US$ million)

Income taxLaw 13,196Share of profitsOther

Total

Profitability

1996 1997 1998 1999 2000

%

Over equity Over sales

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Increases in other operating expenses reflect highercharges for write-offs of obsolete materials, correctionsto provisions for indemnity for years of service, andclosure of tailing dams. Similarly, this fiscal year showedlower profits for differences and corrections arising fromthe exchange rate.

The decline in non-operating results was basically theresult of corrections to the exchange rate affectingconversion of investment in other firms, increasedspending to liquidate UF-dollar hedges, assumed inprevious fiscal years, and personnel retirement plans.

Corporate Costs

In 2000, the company’s costs posted an increase over1999. Using 2000 currency to compare results for bothyears we find that total corporate costs and spendingreached 65.3 ¢/lb, up 1.6 ¢/lb over the 63.7 ¢/lb postedin 1999.

Net cathode costs, meanwhile, rose to 60.9 ¢/lb, versus59.5 ¢/lb during the previous fiscal year: that is, theyrose 1.4 ¢/lb. Meanwhile, cash costs reached 43.7 ¢/lb,up 1.4 ¢/lb over the 42.3 ¢/lb posted the previous year.

As we compare the costs for each year, it must be notedthat it was not possible to maintain the strict economiesachieved through the contingency plan implemented in1999, the purpose of which was to deal with depressedprice levels experienced that year, which were amongthe lowest in a century. Thus, thanks to a series ofmeasures, the Corporation reduced its costs to theminimum, postponing expenditures in order to minimizetheir impact on earnings and therefore the company’scontribution to the treasury. With this plan, 1999 sawthe corporation achieve the lowest costs in recent years.

During the current fiscal year, some extraordinary spendingtook place that was not directly linked to operatingactivity. The most significant items included correctionsto valuations and liquidation of transactions carried outin previous periods, including write-offs for obsoletematerials, write-offs for currency coverage, provisionsand charges for conversion differences in investment inother firms, all of which totaled US$51 million in higherexpenses, equivalent to 1.5 ¢/lb.

Net cathodecost

Total cost

Cashcost

US$ million

Income before tax Copper price

Units costs Income before tax and copper prices

Net Cathode CostsThis concept expresses the CIF costof producing grade A coppercathodes, using by-product sales asa credit. This unit cost links marketcopper prices to real costs andprovides a picture of copperbusiness’s actual contribution togeneral company results.

Determining net costs requiresadding current market costs andfees necessary to convert thecompany’s copper product portfoliointo the equivalent of Grade Acathodes, as a single product.

Cash CostsCash costs are widely used as aninternational benchmark forcomparing copper production costsamong the industry’s companies.They are determined starting fromnet costs, described above, thensubtracting depreciation andamortization, and the expenses ofa given company’s central offices.

Ore grade

Cost trendsCosts are extremely important in the copper industry,given that company competitiveness is directly associatedwith this indicator. To visualize the behavior of theCorporation’s costs, one must observe trends over thepast five years, using two kinds of costs: net cathodecosts and direct or cash costs.

Past costs have been corrected to 2000 prices, usingchanges in the Producer Price Index of the UnitedStates. Moreover, credit calculations for by-products usethe molybdenum price for 2000.

Over the past five years, net costs have fallen fromaround 68.5 ¢/lb in 1996 to 60.9 ¢/lb in 2000. Cashcosts have fallen by 8.4 ¢/lb over the same period.

Production and Sales

ProductionIn 2000, the company produced 1,612,357 tons ofcopper, an amount similar to that generated in 1999.This figure includes the 49% of El Abra’s productionthat corresponds to Codelco’s share of that company.

If we examine production by division, changes aremoderate with the exception of the Salvador division,where production fell by 11,164 tons, due to theincreased hardness and low grade of ore.

Ore processed in 2000 reached 176 million dry metrictons, with an average ore grade of 1.02%; up from 172million treated in 1999, with an average ore grade of1.05%.

With regard to molybdenum, the company’s main by-product, production in 2000 was up 1,157 tons (4.9%)over 1999.

For the five-year period 1996-2000, Codelco’sproduction of copper, excepting its share of El Abra,has risen some 25%, from 1.2 million tons to 1.5 milliontons. This achievement has occurred despite a 12%drop in ore grade.

Net cathode costs Cash costs

Thousands of tons

Copper production

Unit costs Copper production over ore grade

Other relevant costs stemmed from greaterdepreciation and amortization, which totaled US$19million, the result of carrying out the investment planand significant mine development in recent years.

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SalesThe Corporation’s total income from sales of copperand by-products reached US$3.61 billion during 2000,up US$666 million over 1999 income. 2000 saw shipmentsof 1,872,292 tons of own and third party copper, up 6%over shipments made the previous fiscal year.

Sales of own copper reached 1,549,037 tons, up 58,152tons over shipments made in 1999 (1,490,885 tons).Income reached US$2.742 billion, up from US$2.292billion the previous year. The difference, US$450 million,was the result of US$361 million from better prices andUS$89 million due to more copper shipped.

Sales of third party copper reached US$568 million, theresult of 323,255 tons shipped, compared to US$382million in 1999, the result of 282,169 tons in shipments.

By-product sales reached US$299 million, US$29 millionmore than the previous year; molybdenum generatedincome worth US$131 million, similar to 1999, the resultof more shipments compensating for a drop of almost3% in the price.

Around 90% of copper sales correspond to refinedproducts, cathodes and fire refined, while the remaindercorresponds to non-refined products.

US$ million

Refined copper

Non-refined copper

Production(metric tons)

Copper Molybdenum2000 1999 2000 1999

Chuquicamata 630,119 630,067 13,905 14,194R. Tomic 191,429 190,104Salvador 80,538 91,702 2,259 2,059Andina 257,970 249,328 3,592 3,294El Teniente 355,664 346,283 5,188 4,240El Abra (Codelco’s share) 96,637 107,856

Total 1,612,357 1,615,340 24,944 23,787

Total income Structure of copper sales 2000

4,000

3,500

3,000

2,500

2,000

1,500

1,000

Human ResourceManagement

Labor productivityProductivity refers to the ratio between copperproduction for a given period and the number ofpersonnel employed over the same period. Similarly,Codelco distinguishes between the productivity of itsown employees and total employee productivity. Theformer deals with those employed directly by theCorporation, while total productivity includes both thecompany’s own employees and those of contractorsinvolved in operations.

The number of company employees averaged 17,403in 2000, down from 17,501 the previous year.

Using this figure and excluding from the calculationCodelco’s share of El Abra’s copper production, in 2000the Corporation’s own productivity was 87.1 tons perworker, compared to 86.1 tons per worker the previousyear.

Total productivity fell from 56.7 tons per person in1999 to 54.0 in 2000.

Trends affecting these indicators reveal that thecompany’s own productivity rose by 36% from 1996to 2000, increasing from 64 tons per worker to the87.1 tons per worker mentioned above. Total productivityrose 16% over the same period.

AccidentsWe have placed special emphasis on occupational safety,through special campaigns at every division and in everywork area. As a result, the accident frequency rate in2000 was 4.4, an improvement over the previous year’s5.4 (representing a decline of 19%).

Unfortunately, despite all the efforts and resourcesemployed, in 2000 there were several deaths of workers,which in turn affected the seriousness index, whichrose from 784 in 1999 to 1,340 in 2000.

Absenteeism and overtimeLabor performance was not as good in 2000 as it wasin 1999. Absentee rates rose from 4.7 to 5.4, whileovertime rose from 3.7 to 4.3.

Tons/worker

Own employees

Severity Frequency

Productivity

Accident rates

1,600

1,400

1,200

1,000

800

600

400

200

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Health and trainingDuring this period, Codelco made substantial progressin the application of a decentralized health care modeland today it is operating within the framework ofPerformance Agreements at every one of its Divisions.

After a consensual effort, the new design permittedthe establishment of seven indicators for results ofinterest to the company, and five-year targets wereagreed upon. This progress represents a shift away froma purely attention-oriented model toward an approachbased on promoting health and preventing risk.

In terms of training, the company invested overUS$5 million in training and development during 2000,up 60% over the previous year. These resources wentto holding 3,423 courses with 27,698 participants, fora total of 710,116 person - hours of instruction duringthe year.

The continuation of three professional developmentprograms in business administration was particularlyimportant in 2000, along with three programs forworkers’ development, for a total of 303 participants.

FinancialStatements

Consolidated balance sheets

Consolidated statements of income

Consolidated statements of cash flows

Notes to the consolidated financialstatements

Report of independent auditors

Analysis of consolidated financialstatements

Statements of income by Division

US$ - United States dollarsTh.US$ - Thousands of United States dollars

Ch.$ - Chilean pesosTh.Ch.$ - Thousands of Chilean pesos

UF - The Unidad de Fomento (U.F.) is a monetary unitthat is adjusted on a daily basis in conformity with thevariations in the Consumer Price Index (C.P.I.) of the

previous month.

ConsolidatedBalance Sheets

December 31,2000 and 1999

Assets 2000 1999Th.US$ Th.US$

Current assetsCash 10,445 14,879Time deposits and marketable securities 41,194 166,219Trade accounts receivable 136,898 207,791Other accounts receivable 214,755 182,352Inventories 599,708 552,647Prepaid expenses 6,209 6,910Other current assets 2,451 1,849

TOTAL CURRENT ASSETS 1,011,660 1,132,647

Property, plant and equipmentLand, infrastructure and equipment, net 3,406,398 3,115,728Construction-in-progress 478,532 730,003Mine development, net 292,259 269,722

TOTAL PROPERTY, PLANT AND EQUIPMENT 4,177,189 4,115,453

Other assetsOther assets 296,868 251,678Investments in other companies 230,741 190,099Long-term accounts receivable 102,357 126,639

TOTAL OTHER ASSETS 629,966 568,416

TOTAL ASSETS 5,818,815 5,816,516

The accompanying notes 1-19 form an integral part of these consolidated financial statements.


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Liabilities and Equity 2000 1999Th.US$ Th.US$

Current liabilitiesBank debt 350,569 292,771Accounts payable 218,660 198,307Accrued liabilities and withholdings 215,626 255,681Other current liabilities 7,053 5,569Income taxes 3,115 19,311

TOTAL CURRENT LIABILITIES 795,023 771,639

Long-term liabilitiesBank debt 725,020 832,677Notes payables 300,000 300,000Provisions 551,062 588,282Deferred taxes 652,117 530,340Other long-term liabilities 18,817 12,019

TOTAL LONG-TERM LIABILITIES 2,247,016 2,263,318

EquityPaid-in capital 1,524,423 1,524,423Other reserves 1,215,885 1,193,095Net income for the year 205,387 143,321Less: Distribution advances from profits to the Chilean Treasury Department (168,919) (79,280)

TOTAL EQUITY 2,776,776 2,781,559

TOTAL LIABILITIES AND EQUITY 5,818,815 5,816,516

ConsolidatedBalance Sheets


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Consolidated Statementsof Income

For the year endedDecember 31, 2000 y 1999

2000 1999Th.US$ Th.US$

Operating incomeSales of copper 2,742,360 2,291,909Sales of copper acquired from third parties 568,366 381,532Sales of by-products 299,319 270,144

3,610,045 2,943,585

Cost of sales (2,094,974) (1,862,028)Cost of copper acquired from third parties (562,366) (373,202)

GROSS PROFIT 952,705 708,355

Add (deduct):Selling and administrative expenses (65,683) (73,528)Other operating expenses (70,899) (51,811)Foreign exchange adjustments 17,303 33,982

OPERATING INCOME 833,426 616,998

Non-operating incomeAdd (deduct):Interest income 14,150 16,858Other income 123,138 102,551Interest expense (108,008) (101,868)Other expenses (110,109) (62,057)

NON-OPERATING LOSS (80,829) (44,516)

Income before taxes and contribution 752,597 572,482Contribution Law No.13196 (274,796) (238,057)Income taxes (272,414) (191,104)

NET INCOME FOR THE YEAR 205,387 143,321


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2000 1999Th.US$ Th.US$

Cash flows from operating activitiesReceipts from customers 3,570,707 2,867,287Other receipts 56,333 55,817Payments to supplier, salaries and other costs (2,332,089) (2,100,588)V.A.T. paid (368,868) (263,437)V.A.T. recovered 317,828 244,388Interest received 5,763 8,888Interest paid (96,538) (92,864)Income taxes paid (161,752) (2,288)Hedging operations (24,185) 6,155Dividends received 4,587 18,101

NET CASH FLOWS FROM OPERATING ACTIVITIES 971,786 741,459

Cash flows from investing activitiesProceeds from sale of fixed assets 768 796Investments in related companies (7,726) (15,508)Sale and liquidation of companies 875 0Additions to property, plant and equipment and mine development (484,947) (434,204)Collection of accounts receivable 33,663 29,940Long-term loans (60,658) (65,332)

NET CASH FLOWS FROM INVESTING ACTIVITIES (518,025) (484,308)

Cash flows from financing activitiesBank loans 300,880 646,838Repayment of debt (350,554) (698,000)Distribution advances from profits to the Chilean Treasury Department (237,143) (31,005)Contribution under Law No. 13196 (296,418) (230,525)

NET CASH FLOWS FROM FINANCING ACTIVITIES (583,235) (312,692)

CHANGE IN CASH AND CASH EQUIVALENTS (129,474) (55,541)BEGINNING BALANCE OF CASH AND CASH EQUIVALENTS 181,098 236,639

ENDING BALANCE OF CASH AND CASH EQUIVALENTS 51,624 181,098


Consolidated Statementsof Cash Flows


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Reconciliation of NetIncome to Cash Flows

from Operating Activities


2000 1999Th.US$ Th.US$


Contributions Law No. 13196 296,418 230,525


CHARGES (CREDITS) TO INCOME NOT REPRESENTINGMOVEMENTS OF CASH: 520,580 468,395

Depreciation and amortization 425,782 406,909Write-off of fixed assets, net 9,396 6,485Realized gain on investments in other companies (52,920) (46,230)Equity income of subsidiaries (3,124) (6,427)Increase in long-term provisions, including the impact of exchange rate variation 30,638 31,962Deferred income taxes, net 121,777 81,025Accrual for financial transactions 4,662 11,467Impact of exchange rate variation in other accounts (15,631) (16,796)

DECREASE (INCREASE) IN CURRENT ASSETS (8,472) (34,934)

Trade accounts receivable 70,893 (16,389)Other accounts receivable (32,403) 40,079Inventories (47,061) (69,974)Prepaid expenses 701 9,594Other current assets (602) 1,756

INCREASE (DECREASE) IN CURRENT LIABILITIES (42,127) (65,848)

Accounts payable to suppliers 12,640 (6,487)Accrued liabilities and withholdings (40,055) (76,592)Other current liabilities 1,484 (2,080)Income taxes payable (16,196) 19,311

NET CASH FLOWS FROM OPERATING ACTIVITIES 971,786 741,459


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1. Description of the company

1.1 Corporación Nacional del Cobre de Chile, Codelco, was formed as stipulated by Decree Law No. 1350 of 1976as a government owned entity engaging in mining, industrial and other activities which are developed through itsChuquicamata, Radomiro Tomic, El Salvador, Andina, El Teniente and Talleres operating divisions. The Company isalso authorized to perform similar activities either directly or in association with third parties.

1.2 Codelco manages its financial activities in accordance with a budgeting system, which consists of an OperatingBudget, an Investment Budget and a Loan Amortization Budget.

1.3 The tax regime of Codelco is defined by Decree Law No. 1350.

2. Summary of significant accounting policies

The Company's significant accounting policies are summarized as follows:

2.1 Basis for the preparation of the consolidated financial statementsThe financial statements of the Company have been prepared in accordance with accounting principles generallyaccepted in Chile and include consolidation of the Company's local and foreign subsidiaries. All significantintercompany balances and transactions and unrealized profits have been eliminated from the consolidatedfinancial statements.

The consolidated subsidiaries are as follows:

Codelco Group Inc. (U.S.A.)Codelco Group Inc. is a holding company which owns two operating companies, Codelco (U.S.A.) Inc. andCodelco Metals Inc.

Codelco (U.S.A.) Inc. is a sales agent for Codelco and administers sales contracts and settlements and coordinatesproduct delivery for markets in the U.S.A., Canada and Mexico.

Codelco Metals Inc. conducts metal sales and purchase operations with Codelco and other companies, andcovers the North American market.

Codelco France (France)In April 2000, Codelco authorized the sale of the 26% ownership of Codelco France in Societé Lensoise duCuivre, which operated in the transformation of refined copper into copper wire. The sale was conducted inMay 2000 and, subsequently, the subsidiary Codelco France was liquidated in the second half of 2000.

Chile Copper Limited (United Kingdom)Chile Copper Limited is a sales agent for Codelco and manages sales contracts and settlements and coordinatesproduct delivery for markets in England, Finland, Norway and Sweden.

Codelco Services Limited, a subsidiary of Chile Copper Limited, conducts metal sales and purchase operationswith Codelco and other companies, covering principally the European market.

Notes to the ConsolidatedFinancial Statements

December 31, 2000 and 1999

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Codelco Kupferhandel GmbH (Germany)Codelco Kupferhandel GmbH manages Codelco requirements for the transformation of refined copper intocopper wire at an industrial plant in Emmerich, Germany, owned by Deutsche Giessdraht GmbH, which is 40%owned by Codelco Kupferhandel GmbH.

Codelco Kupferhandel Metall Agentur, a subsidiary of Codelco Kupferhandel GmbH, is a sales agent for Codelcoand manages sales contracts and settlements and coordinates product delivery principally for markets in Germany,Austria, Holland and Denmark.

Codelco International Limited (Bermudas)Codelco International Limited was formed in July 2000. The Company's business objective is the managementand control of interests of Codelco in different international projects. Through both this Company and itssubsidiary, Codelco Technologies Limited, Codelco formalized joint investments with Billiton in Alliance CopperLimited for the use of modern technology in mining operations. In addition, Codelco made investments throughCodelco International Limited in Quadrem International Holdings Limited, a global company comprised of 18of the most significant mining companies in the World to operate in an electronic market where companies maybuy and sell goods and services.

Asociación Garantizadora de PensionesAsociación Garantizadora de Pensiones is a private, legally incorporated, non-profit entity which, acting on behalfof the companies affiliated with it, guarantees the payment of the welfare contributions and social security pensionsstipulated by the Accidents at Work Law No. 4055.

Complejo Portuario Mejillones S.A.Complejo Portuario Mejillones S.A. manages studies and development activities in connection with a port projectin Mejillones, Region II of Chile.

Sociedad Contractual Minera PicachoSociedad Contractual Minera Picacho carries out studies, evaluations and exploration of mining concessions.

Ejecutora Proyecto Hospital del Cobre - Calama S.A.Ejecutora Proyecto Hospital del Cobre - Calama S.A. manages a hospital construction project in Calama, RegionII of Chile.

CMS Chile S.A. and CMS Tecnología S.A.CMS Chile S.A. and CMS Tecnología S.A. manufacture, sell and distribute machinery, equipment and spare-partsand provide maintenance and repair services.

Elaboradora de Cobre Chilena LimitadaElaboradora de Cobre Chilena Limitada manages studies and develops projects and investments in the productionand sale of manufacturing of non-ferrous metals either directly or in association with third parties.

Instituto de Innovación en Minería y Metalurgia S.A.Instituto de Innovación en Minería y Metalurgia S.A. performs activities in connection with research, developmentand technological innovation in the areas of mining and metallurgy.


2.2 Accounting currencyIn accordance with Decree Law No. 1350, the accounting records of the Company are maintained in US dollars. The Company is not required nor permitted to adjust the historical dollar amounts for the effects of inflation.

Assets and liabilities denominated in Chilean pesos (consisting mainly of cash, accounts receivable, obligationsand provisions), have been translated into US dollars at the year-end exchange rate of Ch.$ 572.68 per US$ 1(1999: Ch.$ 527.70). Translation gains and losses resulting from changes in the exchange rate between the Ch.$and the US$ have been included in the determination of net income.

Revenues and expenses in Chilean pesos have been translated into US dollars at the daily average exchangerates. The average exchange rate during 2000 for the Company's operations was Ch.$ 538.74 per US$ 1 (1999:Ch.$ 508.81).

2.3 Time deposits and marketable securitiesTime deposits and other short-term investments are carried at cost plus accrued interest at year-end, which isnot significantly different from the market value of the respective instruments.

2.4 InventoriesInventories are valued at cost, which does not exceed net realizable value and have been determined as follows:

Finished goods and work-in-processAt average production cost including fixed asset depreciation and indirect costs.

Materials and suppliesAt average acquisition cost.

Materials-in-transitAt costs incurred through to year-end.

2.5 Property, plant and equipmentProperty, plant and equipment are recorded in U.S. dollars at acquisition cost plus revaluation adjustmentsrecorded as a result of technical appraisals performed during 1982 through 1984 by the American Appraisal Co.,net of depreciation.

Construction-in-progress includes the amounts invested in fixed assets under construction and mine developmentprojects.

2.6 DepreciationDepreciation expense is calculated on historical cost plus the technical appraisal indicated above in Note 2.5,using the straight-line method based on the estimated useful life of the respective assets.

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2.7 Exploration and mine development costsExploration and drilling costsExpenditures incurred for the identification of mineral deposits and the determination of their possible commercialoutput are expensed as incurred.

Pre-operating and mine development expensesExpenditures incurred during the development of projects up to the production phase are capitalizable costs,which are amortized based on future production. These costs include the extraction of the waste material andthe construction of the infrastructure of the mine along with other costs incurred prior to the production phase.

Development expenses of existing minesNormal production maintenance costs are expensed as incurred.

Expenditures for delineation of new areas of deposits in exploitation and of mining operationsThese costs are deferred in Other assets and are charged to income during the period in which the benefitsare obtained using the straight-line method up to a maximum of 5 years.

2.8 Closing costsThe Company has implemented a policy of accruing for the future costs of closing existing operating assets,mainly related to tailing dams, which, once their useful lives have expired, require further expenditure. This policyprovides for the distribution of closing costs over the useful lives of the mines (Note 10).

2.9 Investments in other companiesInvestments in other companies are accounted for using the equity method.

Unrealized gains arising from the transfer of assets and the sale of rights to equity-owned investees are initiallycredited to the investment. The unrealized gains are credited to income when the properties or rights are soldto a third party.

2.10 Employee severance indemnitiesThe Company has an agreement with its employees to pay severance benefits for years of service. The Company'spolicy is to provide for the total accrued liability at the undiscounted current cost.

The additional costs for special workforce reduction plans are also recorded on an accrual basis.

2.11 Income taxes and deferred income taxesThe Company provides for income taxes in accordance with current regulations, including the first category taxof 15% and the 40% tax specified by Decree Law No. 2398, Art. 2.

The Company recognizes the effects of deferred taxes arising from timing differences which have different taxand accounting treatments.

In addition, Law No. 13196 requires the payment of a 10% contribution on the export value of copper andrelated by-products.


2.12 Sales revenuesSales revenues are recorded at the date of the shipment of products, in conformity with current agreementsand are subject to variations in content and / or the price of the sale at the date of settlement. Estimateddecreases in values from that recorded at the shipment date for sales revenues are accrued in accordance withthe information available at the date of the preparation of the financial statements.

2.13 Cost of salesCost of sales includes the direct, indirect and depreciation costs related to the production process.

2.14 Futures contractsThe Company has defined policies to cover or minimize the risks associated with fluctuations in the price ofmetals, in foreign exchange rates and in interest rates, through hedging operations in futures markets. The foreignexchange hedging program includes contracts which mitigate the risk of fluctuations between the U.F. and theUS$ exchange rate, and the interest rate hedging program includes contracts for fixing interest rates for futureliabilities.

The Company does not conduct speculative activities in the futures markets.

The results of the metal hedging contracts in futures markets are recorded at their settlement as part of productrevenues. On the same basis, the results of foreign exchange contracts are recorded at their settlement. Thesettlements of these hedging transactions coincide with the accounting for the underlying hedged transactions.The results of the hedging contracts for fixing interest rates for future liabilities are recorded during the termof those liabilities.

The results of foreign exchange rate hedging activities and interest rate hedging activities are recorded on anaccrual basis and coincide with the accounting for the underlying hedged transactions.

2.15 1999 financial statementsCertain balances in the 1999 financial statements have been reclassified for comparative purposes.

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3. Changes in accounting principles

Beginning January 1, 2000, the Company records exchange differences arising from translation of investments inother companies in its statement of income. This resulted in a charge to 2000 results of Th.US$ 26,973.(Note 12).

4. Inventories

Inventories at December 31, 2000 and 1999 are comprised as follows:

The inventory balance is presented net of a reserve for obsolescence of materials in warehouses of Th.US$ 28,814(1999: Th.US$ 25,950).

2000 1999Th.US$ Th.US$

Finished goods 199,610 178,020Products-in-process 251,193 202,667Materials, supplies and other 148,905 171,960

TOTAL 599,708 552,647

5. Property, plant and equipment

Property, plant and equipment at December 31, 2000 and 1999 are as follows:

2000 1999Th.US$ Th.US$

Land 25,743 25,708Land improvements 1,923,658 1,651,839Buildings and plants 1,966,075 1,848,512Machinery and equipment 4,342,509 4,282,893Transportation equipment 511,202 403,574Furniture and fixtures 45,488 41,174Housing 196,070 196,070SUBTOTAL 9,010,745 8,449,770

Less: Accumulated depreciation (5,249,124) (5,005,721)Current-year depreciation (355,223) (328,321)SUBTOTAL 3,406,398 3,115,728

Construction-in-progress 478,532 730,003Mine development costs 500,657 485,757Accumulated amortization (208,398) (216,035)

TOTAL 4,177,189 4,115,453


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6. Other assets

As of December 31, 2000 and 1999, other assets consisted of:

2000 1999Th.US$ Th.US$

Deferred expenses in mining operations and others, net 280,056 231,084Other intangible assets 16,812 20,594

TOTAL 296,868 251,678

7. Investments in other companies

At December 31, 2000 and 1999, investments in other companies stated on an equity basis, net of unrealizedgains, consisted of:

2000 1999Th.US$ Th.US$

Equity basis value of:Sociedad Contractual Minera El Abra 336,401 339,906Electroandina S.A. 118,308 119,524Inversiones Tocopilla Ltda. 144,550 146,991Agua de la Falda S.A. 10,303 13,078Other companies, net 13,642 15,983

SUBTOTAL 623,204 635,482Less:Unrealized gains in the investments in:Sociedad Contractual Minera El Abra (248,685) (270,966)Electroandina S.A. (93,821) (111,979)Inversiones Tocopilla Ltda (33,747) (40,279)Agua de la Falda S.A. (5,881) (9,303)Other unrealized gains (10,329) (12,856)

SUBTOTAL (392,463) (445,383)

TOTAL INVESTMENTS 230,741 190,099


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8. Bank debt

As of December 31, 2000 and 1999, bank debt with variable interest rates based on Libor consisted of:

2000 1999Th.US$ Th.US$

Short-term: 350,569 292,771Long-term:

2001 0 607,6772002 150,020 150,0002003 275,000 75,0002004 200,000 02005 100,000 0

TOTAL LONG-TERM BANK DEBT 725,020 832,677

Maturities and amounts indicated for the year 2000 consider the renegotiation of debt during the second half of 2000.


9. Notes payables

On May 4, 1999, the Company issued and placed notes in the US market under Regulation 144-A. This allowedthe Company to obtain financing of Th.US$ 300,000. The notes expire in one single installment on May 1, 2009and accrue an interest rate of 7 3/8% per annum payable on a semi-annual basis.

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The activity for each year of employee severance was as follows:

Short-term Long-term2000 1999 2000 1999

Th.US$ Th.US$ Th.US$ Th.US$

Balance at January 1, 35,389 40,354 391,095 435,235Payments (15,962) (51,540) 0 0Provision for the year charged to income,including the effect of exchange rate variations 0 0 11,427 2,435Transfer to short-term 11,110 46,575 (11,110) (46,575)

TOTAL EMPLOYEE SEVERANCE 30,537 35,389 391,412 391,095

10. Accrued liabilities and withholdings

As of December 31, 2000 and 1999, accrued liabilities and withholdings consisted of :

Short-term Long-term2000 1999 2000 1999

Th.US$ Th.US$ Th.US$ Th.US$

Employee severance 30,537 35,389 391,412 391,095Closing costs 0 0 48,666 68,113Accrued vacation 48,773 47,310 0 0Other accruals and withholdings 136,316 172,982 110,984 129,074

TOTAL 215,626 255,681 551,062 588,282


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11. Income taxes

Income taxes payable and deferred taxes, calculated in accordance with current tax regulations as discussed inNote 2.11 are as follows:

11.1 Current income taxes

2000 1999Th.US$ Th.US$

Net charge to income 272,414 191,104(Deduct) add:Net deferred taxes for current-year timing differences (121,777) (81,025)

CURRENT INCOME TAX 150,637 110,079Less:Tax provisional payments (142,596) (2,288)Training, mineral rights and other income tax credits (4,926) (4,922)Balance of previous year tax provisional payments applied 0 (83,558)

INCOME TAX PAYABLE 3,115 19,311

11.2 Deferred taxes

The net balance of deferred income taxes are classified as long-term liabilities as follows:

2000 1999Th.US$ Th.US$

Deferred tax liability (asset) attributable to:Accelerated depreciation 1,023,024 921,698Unrealized gains from associations with third parties (215,854) (244,961)Other provisions, net (155,053) (146,397)

NET DEFERRED INCOME TAXES 652,117 530,340


12. Equity

The changes in equity for the years ended December 31, 2000 and 1999 were as follows:

Other RetainedPaid-in Capital Reserves Earnings Total

Th.US$ Th.US$ Th.US$ Th.US$BALANCE AT JANUARY 1, 1999 1,524,423 1,200,268 (28,475) 2,696,216

Capitalization of 1998 net income 19,800 (19,800) 0Surplus distribution of net income (48,275)Exchange difference arising from translation of investments in other companies (26,973) (26,973)Net income for the year 143,321 143,321Distribution advances from profits to the Chilean Treasury Department (31,005) (31,005)BALANCE AT DECEMBER 31, 1999 1,524,423 1,193,095 64,041 2,781,559

Capitalization of 1999 net income 21,168 (21,168) 0Excess of capitalization of prior years net income (25,351) 25,351 0Reverse of exchange difference from translation of investments in other companies 26,973 26,973Net income for the year 205,387 205,387Profits distributions to the Chilean Treasury Department: Excess of capitalization (1) (25,351) (25,351) From previous year (42,873) (42,873) From the year (168,919) (168,919)BALANCE AT DECEMBER 31, 2000 1,524,423 1,215,885 36,468 2,776,776

(1) As agreed by Treasury and Mining Ministries, on May, 2000.


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13. Assets and liabilities denominated in chilean pesos

At December 31, 2000, assets and liabilities denominated in Chilean pesos represented a net liability of Ch.$ 131,514million (1999: Ch.$ 66,145 million), which have been translated into US dollars as discussed in Note 2.2.

14. Hedging operations

As indicated in Note 2.14, the Company has defined a policy to cover or minimize the risks associated withfluctuations in metals market prices, exchange rates and interest rates.

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14.1 Metals markets hedgingAt December 31, 2000, metal markets futures contracts maturing between January 2001 and March 2002 areintended to obtain prices compatible with business policy of the Company. Deferred values amounted to anegative exposure of Th.US$ 2,123 which comprises negative exposures of Th.US$ 2,121 from copper operationsand of Th.US$ 10 from gold operations less a positive exposure of Th.US$ 8 from silver operations.

The net exposure of Th.US$ 2,123 will be affected by future changes in the market; the magnitude of such positiveor negative changes will depend upon changes in the price of metals.

14.2 Exchange rates hedgingAt December 31, 2000, the Company maintained solely exchange hedging contracts to cover variations in theexchange rate of assets and liabilities denominated in foreign currency other than U.S. dollars. Results are recordedon an accrual basis.

As of December 31, 1999, Codelco also maintained foreign exchange futures contracts to cover variations inthe valuation of commitments arising from changes in the U.F./US dollar exchange rate. During 2000, all thesecontracts were settled which resulted in a charge to income of Th.US$ 33,321.

14.3 Interest rate hedgingAt December 31, 2000, the Company had a number of futures contracts in force for hedging the expectedinterest rates of financial liabilities. The related deferred payments of Th.US$ 6,992, are amortized over the periodin which the underlying debt obligations mature (between January 2001 and September 2008).

15. Association with third parties

15.1 Mining associations Law No. 19137Law No. 19137 dated May 12, 1992, authorized Codelco to form associations with third parties in order toexpand its activities in mining projects through contributions of capital, technology, and others.

In accordance with the provisions of the aforementioned Law, the Corporation has established certain associationswith third parties relating to joint exploration activities and the subsequent exploitation of viable deposits.

The most significant associations are summarized as follows:

15.1.1 Sociedad Contractual Minera El AbraSociedad Contractual Minera El Abra was formed in 1994 by Codelco (49%) and Cyprus El Abra Corporation(51%), with Cyprus Amax Minerals Company as its guarantor, both companies related with the mining consortiumPhelps Dodge, for the development and exploitation of the El Abra deposit.

Codelco investment in the project consisted of the contribution of a number of mining properties. The agreementsfor the financing of the project were signed on June 15, 1995 and during the term of the financing, involve:a) a long-term trading agreement with Codelco Services Ltd. for a portion of the production of El Abra;


b) the commitment of the shareholders to maintain majority ownership of the property of Sociedad ContractualMinera El Abra; andc) a pledge of the shares of Sociedad Contractual Minera El Abra in favor of the institutions which financed theproject.

15.1.2 Compañía Contractual Minera Los Andes and Inversiones Mineras Los Andes S.A.Compañía Contractual Minera Los Andes and Inversiones Mineras Los Andes S.A. were formed in 1996 byCodelco, AMP Chile Holding Ltda. and the Australian Mutual Provident Society, for the exploration and developmentof the Exploradora, Sierra Jardín, María Delia and Sierra Morena sites which are located in Regions I, II and III ofChile.

Codelco contributed mining properties to the joint-venture companies in exchange for 49% of their share capital. By exercising its right to convert bonds into shares, Codelco may increase its ownership to 65%. Currently, thecontinuance of this association is being under analysis.

15.1.3 Agua de la Falda S.A.During 1996, Agua de la Falda S.A. was formed by Codelco (49%) and Minera Homestake (51%). The company'sbusiness objective is the exploration, exploitation and commercialization of gold and other ore deposits in RegionIII of Chile.

Codelco made a contribution consisting of the El Hueso, Agua de la Falda Norte and Saldo del Area miningproperties, in addition to certain access rights and rights to an existing mineral processing plant.

During October 1999, Agua La Falda S.A. increased its capital by Th.US$ 14,800. Codelco paid the portionrelative to its ownership percentage through the contribution consisting of mining properties in the Franja Auríferaand Copiapina-Polvorín prospects.

15.2 Other associations15.2.1 Inversiones Tocopilla Ltda. and Electroandina S.A.Inversiones Tocopilla Ltda. is a holding company owned 51% by Inversora Eléctrica Andina S.A. (a consortiumwhich includes Powerfin S.A.-Belgium-Iberdrola S.A.-Spain-and Enagas-Chile) and 49% by Codelco. InversionesTocopilla Ltda., as the majority owner, controls Electroandina S.A.

Electroandina S.A. is an open shareholders' company whose principal business activity is the generation anddistribution of energy in Region II of Chile. Inversiones Tocopilla Ltda. owns 65.2% of Electroandina S.A. whereasCodelco owns 34.8%. The principal assets of Electroandina S.A. were acquired from the former Tocopilla Divisionof Codelco.

During 1996, employees of Codelco and Electroandina S.A. acquired bonds convertible into shares that wereissued by Electroandina S.A. through investment companies. These bonds were subsequently repaid, at its duedate. (Refer to Note 19).

15.2.2 Sociedad Minera Yabricoya SCMSociedad Yabricoya SCM was formed by Codelco (45%) and Minera Cominco Chile Ltda. (55%) on March 11,1998. Codelco and Minera Cominco Chile Ltda. subscribed and paid for the shares of Sociedad Yabricoya SCMthrough the contribution of rights and mining concessions for the exploration of mining properties located inPozo Almonte in Region I of Chile.

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The company's business objective is the exploration, development and exploitation of mining properties andthe sale of the related products.

15.2.3 Minera Pecobre S.A. de C.V.Minera Pecobre S.A. de C.V. is a public company based in Mexico that was formed through contributions byMinas Peñoles S.A. de C.V. (a Mexican company) and Codelco of 51% and 49%, respectively.

The Company's business objective is the exploration of copper and its by-products in mining concessions consistingof plots in the Sonora State in Mexico. In addition, the Company's operation also contemplates the exploration,processing and disposal of minerals located in these concessions acting through one or several mining companies.

16. Guarantees, commitments and contingencies

16.1 Trade commitmentsIt is Company policy to commit its annual production one year in advance. At December 31, 2000, contractualagreements relating to sales and transformation of fine copper amounted to 1.6 million MT (1999: 1.4 millionMT).

16.2 Lawsuits and contingenciesCodelco is involved in various pending legal actions initiated by or against the Company which, are derived fromthe inherent nature of the industry in which the Corporation operates. In the judgment of the Company'smanagement and legal advisors, no significant loss contingencies exist.

The Company has, with regard to the speculative operations performed in the futures markets of metals from1993 through January 21, 1994, continued to support the actions addressed to recover damages.

At December 31, 2000 as a result of these investigations, the Company in judicial and out-of-court settlements,obtained compensation from certain of the parties involved amounting to Th.US$ 50,400.

17. Transactions with related companies

Policies with respect to transactions with related companies have been defined by the management of theCompany and relevant clauses have been incorporated into the employment contracts of employees, whereapplicable.

The Company performs certain transactions with related companies and parties during the normal course ofbusiness in conformity with terms and conditions similar to those existing in the marketplace.


18. Contribution to the Chilean Treasury Department by Codelco

During 2000 and 1999, Codelco disbursed the following amounts to the Chilean Treasury Department inaccordance with current legislation and budget decrees, by means of distribution advances from profits, incometaxes and contribution payable under Law No. 13196, as follows:

2000 1999Th.US$ Th.US$

Distribution advances from profits to the Chilean Treasury Department (Note 12) 237,143 31,005Income taxes 161,752 2,288Contribution payable under Law No. 13196 296,418 230,525

TOTAL 695,313 263,818

19. Subsequent events

During December, the directors authorized the acquisition of 100% of Inversiones Enercobre S.A., InversionesCobre Dos S.A., Inversiones Energía del Norte S.A., Inversiones Energía del Norte Dos S.A. and InversionesTocopilla S.A., companies formed by employees of Codelco and Electroandina S.A., which acquired bonds issuedby Electroandina S.A.

In accordance with current Chilean regulations, the deadline for the public offer of shares was set at January 29,2001. Consequently, the process to obtain the control of these companies was finished.

The Company's management is not aware of any other significant events which have occurred between December31, 2000 and the date of these consolidated financial statements (January 30, 2001) which may affect theCompany's results of operations, its financial position or the interpretation of these financial statements.

Juan Villarzú Rohde Juan Eduardo Herrera Correa Chief Executive Officer Chief Financial Officer

Mariano Neira Sáenz Mario Allende GallardoManager of Administration and Controller Chief Accountant


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ConsolidatedFinancial Statements

Report of Independent Auditors

To the Chairman and Members of the BoardCorporación Nacional del Cobre de Chile

We have audited the consolidated balance sheets of Corporación Nacional del Cobre de Chile and its subsidiariesas at December 31, 2000 and 1999 and the related consolidated statements of income and cash flows for the yearsthen ended. These financial statements are the responsibility of the management of Corporación Nacional del Cobrede Chile. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in Chile. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whether the financial statements are freeof material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosuresin the financial statements. An audit also includes assessing the accounting principles used and significant estimatesmade by management, as well as evaluating the overall financial statement presentation. We believe that our auditsprovide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, theconsolidated financial position of Corporación Nacional del Cobre de Chile and its subsidiaries at December 31, 2000and 1999, and the consolidated results of their operations and their cash flows for the years then ended, in conformitywith accounting principles generally accepted in Chile.

As explained in Note 3 to the financial statements, exchange differences relating to the translation of investments inother companies were recorded in income in the year 2000. In 1999 they were charged to an equity reserve.

Juan Humud G.

Santiago, Chile, January 30, 2001.

Analysis of theConsolidated FinancialStatements


1. CONSOLIDATED BALANCE SHEETS (US$ millions)

2000 1999AssetsCurrent assets 1,012 1,133Fixed assets 4,177 4,115Other assets 630 569

TOTAL ASSETS 5,819 5,817

Liability and equityCurrent Liabilities 795 772Long-term Liabilities 2,247 2,263Equity 2,777 2,782

TOTAL LIABILITIES AND EQUITY 5,819 5,817

At the end of the fiscal years 2000 and 1999, the total balance of assets, liabilities and equity remained relativelysimilar.

Current assetsThe main change in current assets was the result of fewer time deposits: these fell by US$125 million, reflectingless financial liquidity.

Trade accounts receivable fell by US$71 million, the result of reduced payment periods and fewer dispatches inDecember 2000. Other receivables rose by US$32 million, due to a US$26 million transfer of long-term assets.

Inventories rose US$47 million, the result of a US$89 million increase in finished goods and products-in-process,which was offset by a reduction in warehouse stock of operating supplies and materials.

Fixed assetsIn 2000, net fixed assets (property, plant and equipment) rose by US$62 million over the previous fiscal period,the result of company investments worth US$504 million and mine development depreciation and amortizationworth US$376 million. The difference was due to asset withdrawals, write-offs and transfers.

Other assetsOther assets rose by US$62 million, due mainly to a US$41 million increase in investment and US$36 millionin mine operations, and a US$24 million decline in long-term (over one year) accounts receivable.

The main changes in contributions and investment were US$53 million in realized gains from subsidiaries, amongthem US$22 million from El Abra, US$25 million from Electroandina S.A. e Inversiones Tocopilla Ltda., US$53million from Agua de la Falda, and US$ 53 million from Minera Los Andes.

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Liabilities

At the end of the last fiscal year, financial debt stood at US$1.376 billion, down US$50 million from 1999. This

brought debt/equity to 0.50, slightly less than the previous fiscal year.

In 2000, the company contracted with 15 first-rate financial institutions for a US$500 million syndicated credit,

maturing in 4.5 years, with the main arranger and manager being Chase Securities. Other arrangers included the

Royal Bank of Canada, Bank of Tokyo-Mitsubishi, Bilbao Vizcaya Argentaria and Santander Central Hispano. The

purpose of the operation was to ensure a competitive margin for the refinancing of the 1996 syndicated credit,

which matures in November 2001. The new annual rate is LIBOR plus 22.5 basis points the first year, rising to

LIBOR plus 60 basis points from November 2001 through May 2005.

The Corporation maintained its excellent financial rating, first obtained in 1997, with ratification in 2000 of its

A- rating from Standard & Poor's and Baa1 from Moody's.

Other liabilitiesAccrued liabilities and short-term withholdings fell by US$40 million, due to lower balances in suppliers' accountsand taxes due.

Long-term provisions also fell, by US$37 million over 1999, the result of the use of US$62 million, offset somewhatby provisions for operations closure and others for contingencies, made during the fiscal year.

Deferred taxes rose by US$122 million, due mainly to US$101 million in accelerated depreciation and US$29million in realized profits.

EquityEquity fell by US$5 million in 2000 over 1999, the result of paying off transfers pending to the Treasury, whichwere attenuated by provisional withholding of profits for the year (US$36 million) and the application to resultsof the reserve for exchange rate differences when converting investment in other companies (US$27 million).

2. Statements of income

Operating incomeOperating income (total sales minus cost of sales, cost of purchasing third-party copper, administrative and otherexpenses and exchange adjustments) for the 2000 fiscal year reached US$834 million, up from US$617 millionthe previous year. The US$217 million increase was the result of several factors, both negative and positive,explained below.

Sales incomeSales income, including sales of own and third-party copper and by-products, reached US$3.61 billion, US$666million more than in 1999.

Analysis of theConsolidated Financial

Statements

Volumes of own copper shipped reached 1,549,037 tons, up more than 4% from 1999, with sales income from2000 shipments reaching US$2.742 billion, up US$450 million over 1999.

This increase in income from own copper reflects both higher prices and more shipments. The copper price onthe London Metal Exchange averaged 82.3 cents per pound, 10.9 cents more than the price of 71.4 cents perpound in 1999. This rise added US$361 million in sales.

Third-party copper sales were 323,255 tons, compared to 282,169 tons in 1999. Income from this source reachedUS$568 million in 2000, up from US$382 million in 1999.

By-product sales were US$299 million, up US$29 million from the previous year. Molybdenum was the main by-product, with shipments reaching 23,976 tons, up 4% over 1999 shipments. Income reached US$131 million,similar to the previous year, due to lower prices.

The following table summarizes sales volumes and prices for Codelco's copper and molybdenum portfolios.Copper includes cathodes, fire refined, anodes, blister and concentrates. Molybdenum includes oxides andconcentrates.

2000 1999

Average prices, US¢/lbOwn copper 0.80 0.70Molybdenum 2.47 2.55

Sales, tonsOwn copper 1,549,037 1,490,855Third party copper 323,255 282,169

TOTAL COPPER 1,872,292 1,773,054

Molybdenum 23,976 23,079

Sales costsSales costs reached US$2,095 billion, up US$233 million over the previous year. Higher costs were the result, inpart, of more dispatches, and a US$160 million rise in sales and production expenditures for the year.

The cost of third-party copperThe cost of copper purchased from third parties rose to US$562 million, up from US$373 million the year before,reflecting the higher price and an increase in shipments.

Administration and sales costs fell by US$8 million over the previous year (US$74 million), while other operatingcosts rose by US$19 million, due to higher expenditures on write-offs of obsolete material, corrections toprovisions for indemnities, an increase in tailing deposit closure provisions, and higher research and studies costs.

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Non-operating incomeNon-operating expenditures reached US$81 million, US$36 million more than the previous year. Changes includedhigher spending (US$16 million) to cover UF-US$ mismatches, differences due to exchange rate conversion ofinvestment in other companies (US$27 million), and personnel retirement plans (US$7 million), which werepartially offset by recovered insurance liquidity in the exploration expenditure and insurance item.

Income before taxesIncome before taxes for the year was US$753 million, up US$181 million over US$572 million in 1999. Thedifference is the result of a US$217 million increase in operating income and a US$36 million drop in non-operating income.

TaxesLaw No. 13,196 taxes amounted to US$275 million, up from US$238 million the previous year. The increase isthe result of sales, which rose during the year.

Codelco's income tax rate is 55%, composed of 15% first category tax and a 40% additional tax, applied becauseit is state-owned. Income tax for the year rose to US$272 million, up from US$191 million in 1999.

Net incomeNet income for the year reached US$205 million, up from US$143 million the previous year.

Analysis of theConsolidated Financial

Statements

3. Consolidated financial ratios

2000 1999LiquidityCurrent liquidity 1.27 1.47 (Current assets/current liabilities)Acid Test 0.51 0.74 (Cash and receivables/current liabilities)

Debt and solvencyDebt exposure 1.10 1. 09 (Total liabilities/equity)Long-term debt share 0.74 0.75 (Long-term debt/total liabilities)Coverage 7.97 6, 62 [(Income before taxes + interest expenses)/interest expenses]EBITDA/DEBT 0.94 0.76 [(Income before taxes + interest expenses + depreciation and amortization)/debt]

ProfitabilityOperating margin 0.23 0.21 (Operating income/total sales)Profits over assets 0.18 0.14 (Income before taxes/total property, plant and equipment (1))Profit to equity 0.27 0.21 (Income before taxes/equity (1))

(1) Start of fiscal year.

Liquidity indicators show the company was less well off by the end of 2000 compared to 1999, as a result ofthe decline in current assets, which in turn reflected the reduced availability of financial balances.

Debt indicators remained stable from one period to the next.

Better coverage, EBITDA/debt and profitability reflect higher earnings for the year and a reduction in debt.

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We have audited the statements of income by divisions of Corporación Nacional del Cobre de Chile for the yearsended December 31, 2000 and 1999. These statements of income are the responsibility of the management ofCorporación Nacional del Cobre de Chile. Our responsibility is to express an opinion on these statements of incomebased upon our audits.

We have issued an unqualified opinion on the consolidated financial statements of Corporación Nacional del Cobrede Chile for the years ended December 31, 2000 and 1999. Additionally, on January 30, 2001 and January 24, 2000,respectively, we issued our opinion on the allocation to the operating divisions of head office and subsidiaries incomeand expenses for the years ended December 31, 2000 and 1999, in accordance with the basis established by theCompany. The accompanying statements of income by divisions have been prepared in compliance with the Company'sstatutory obligations on the basis of accounting policies discussed in Notes 1 and 2, and they have been subject tothe same audit procedures as were applied to the Company's financial statements.

In our opinion, the statements of income by divisions referred to above present fairly, in all material respects, the resultsof the operations of the divisions of Corporación Nacional del Cobre de Chile for the years ended December 31,2000 and 1999, in conformity with accounting principles generally accepted in Chile and the basis of preparationdescribed in the notes to these income statements.

Juan Humud G.

Santiago, January 30, 20011

Statements of Income byDivisions

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Statements of IncomeChuquicamata Division

For the years endedDecember 31, 2000 and 1999

2000 1999Th.US$ Th.US$

Operating incomeSales 1,220,191 1,120,746Sales of copper acquired from third parties 344,059 248,013Sales of products from other divisions 196,665 172,641Income from transfers 46,394 51,711

OPERATING REVENUES 1,807,309 1,593,111

Cost of sales (788,821) (748,192)Cost of sales of copper acquired from third parties (338,973) (240,494)Cost of sales of products from other divisions (183,474) (172,886)Cost of transfers (45,435) (57,809)

TOTAL COST OF SALES (1,356,703) (1,219,381)

GROSS MARGIN 450,606 373,730

Add (deduct):Selling and administrative expenses (32,005) (36,596)Other operating expenses (60,749) (32,757)Exchange adjustments 9,387 13,431




Income before taxes and contribution 321,725 296,524Contribution Law No. 13196 (126,333) (115,302)Income taxes (111,785) (103,208)


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2000 1999Th.US$ Th.US$

Operating incomeSales 344,973 295,245Sales of copper acquired from third parties 33,067 21,159Sales of products from other divisions 0 0Income from transfers 1,225 477

OPERATING REVENUES 379,265 316,881

Cost of sales (195,482) (177,879)Cost of sales of copper acquired from third parties (33,014) (20,899)Cost of sales of products from other divisions 0 0Cost of transfers (422) (477)

TOTAL COST OF SALES (228,918) (199,255)

GROSS MARGIN 150,347 117,626

Add (deduct):Selling and administrative expenses (5,442) (6,176)Other operating expenses (1,167) (463)Exchange adjustments (1,325) 3,492


Non-operating incomeAdd (deduct):Interest income 912 1,088Other income 14,269 8,174Interest expense (7,967) (7,984)Other expenses (2,851) (2,250)

NON-OPERATING INCOME / (LOSS) 4,363 (972)



Statements of IncomeRadomiro Tomic Division


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Statements of IncomeSalvador Division


2000 1999Th.US$ Th.US$

Operating incomeSales 166,840 165,695Sales of copper acquired from third parties 64,439 45,688Sales of poducts from other divisions 135,102 95,987Income from transfers 356 575


Cost of sales (174,827) (157,493)Cost of sales of copper acquired from third parties (63,614) (45,329)Cost of sales of products from other divisions (125,391) (75,129)Cost of transfers (115) 0


GROSS MARGIN 2,790 29,994


OPERATING INCOME / (LOSS) (7,983) 19,292

Non-operating incomeAdd (deduct):Interest income 1,834 1,875Other income 21,581 17,789Interest expense (11,715) (10,639)Oher expenses 674 (7,930)

NON-OPERATING INCOME 12,374 1,095

Income before taxes and contribution 4,391 20,387Contribution Law No.13196 (19,097) (17,719)Income taxes 7,168 (1,884)

NET INCOME/ (LOSS) FOR THE YEAR (7,538) 784

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Statements of IncomeAndina Division


2000 1999Th.US$ Th.US$

Operating incomeSales 380,297 225,697Sales of copper acquired from third 54,248 20,361Sales of poducts from other divisions 0 0Income from transfers 87,151 76,836


Cost of sales (294,049) (179,958)Cost of sales of copper acquired from third parties (54,328) (20,738)Cost of sales of products from other divisions 0 0Cost of transfers (67,810) (62,085)


GROSS MARGIN 105,479 60,113







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Statements of IncomeEl Teniente Division


2000 1999Th.US$ Th.US$

Operating incomeSales 564,141 450,733Sales of copper acquired from third parties 72,553 46,311Sales of poducts from other divisions 10,274 9,302Income from transfers 187,673 186,900


Cost of sales (373,050) (358,225)Cost of sales of copper acquired from third parties (72,437) (45,742)Cost of sales of products from other divisions (8,511) (8,308)Cost of transfers (137,917) (154,603)


GROSS MARGIN 242,726 126,368







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2000 1999Th.US$ Th.US$

Operating incomeSales 23,226 26,007Sales of copper acquired from third parties 0 0Sales of poducts from other divisions 0 0Income from transfers 0 0

TOTAL OPERATING REVENUES 23,226 26,007

Cost of sales (22,469) (25,483)Cost of sales of copper acquired from third parties 0 0Cost of sales of products from other divisions 0 0Cost of transfers 0 0


GROSS MARGIN 757 524

Add (deduct):Selling and administrative expenses (90) (90)Other operating expenses 0 (1)Exchange adjustments (599) (272)

OPERATING INCOME 68 161

Non-operating incomeAdd (deduct):Interest income 0 0Other income 316 81Interest expense (139) (163)Other expenses (72) (399)

NON-OPERATING INCOME 105 (481)

Non-operating income / (loss) 173 (320)Contribution Law No. 13196 0 0Income taxes (143) 167

NET INCOME / (LOSS) FOR THE YEAR 30 (153)

Statements of IncomeTalleres Division


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For the year endedDecember 31, 2000

Chuquicamata R.Tomic Salvador Andina Teniente Talleres Consolidated

Division Division Division Division Division Division Balance Adjustment TOTAL

Th.US$ Th.US$ Th.US$ Th.US$ Th.US$ Th.US$ Th.US$ Th.US$ Th.US$

Operating income

Sales 1,039,214 344,692 131,927 332,121 552,365 0 2,400,319 0 2,400,319

Sales of copper acquired from third parties 344,059 33,067 64,439 54,248 72,553 0 568,366 0 568,366

Sales of by-products 180,977 281 34,913 48,146 11,776 23,226 299,319 0 299,319

Sales of products from other divisions 196,665 0 135,102 0 10,274 0 342,041 0 342,041

Income from transfers 46,394 1,225 356 87,151 187,673 0 322,799 (322,799) 0

OPERATING REVENUES 1,807,309 379,265 366,737 521,666 834,641 23,226 3,932,844 (322,799) 3,610,045

Cost of sales (788,821) (195,482) (174,827) (294,049) (373,050) (22,469) (1,848,698) 0 (1,848,698)

Cost of sales of copper acquired from third parties (338,973) (33,014) (63,614) (54,328) (72,437) 0 (562,366) 0 (562,366)

Cost of sales of products from other divisions (183,474) 0 (125,391) 0 (8,511) 0 (317,376) 71,100 (246,276)

Cost of transfers (45,435) (422) (115) (67,810) (137,917) 0 (251,699) 251,699 0

TOTAL COST OF SALES (1,356,703) (228,918) (363,947) (416,187) (591,915) (22,469) (2,980,139) 322,799 (2,657,340)

GROSS MARGIN 450,606 150,347 2,790 105,479 242,726 757 952,705 0 952,705

Add (deduct):

Selling and administrative expenses (32,005) (5,442) (6,413) (8,692) (13,041) (90) (65,683) 0 (65,683)

Other operating expenses (60,749) (1,167) (5,513) (1,791) (1,679) 0 (70,899) 0 (70,899)

Exchange adjustment 9,387 (1,325) 1,153 1,390 7,297 (599) 17,303 0 17,303

OPERATING INCOME / (LOSS) 367,239 142,413 (7,983) 96,386 235,303 68 833,426 0 833,426

Non-operating income

Add (deduct):

Interest income 6,221 912 1,834 1,384 3,799 0 14,150 0 14,150

Other income 49,228 14,269 21,581 13,134 24,610 316 123,138 0 123,138

Interest expense (52,400) (7,967) (11,715) (13,660) (22,127) (139) (108,008) 0 (108,008)

Other expenses (48,563) (2,851) 674 (10,789) (48,508) (72) (110,109) 0 (110,109)

NON-OPERATING INCOME / (LOSS) (45,514) 4,363 12,374 (9,931) (42,226) 105 (80,829) 0 (80,829)

Income before taxes and contribution 321,725 146,776 4,391 86,455 193,077 173 752,597 0 752,597

Contribution Law No. 13196 (126,333) (34,614) (19,097) (40,240) (54,512) 0 (274,796) 0 (274,796)

Income taxes (111,785) (61,664) 7,168 (26,343) (79,647) (143) (272,414) 0 (272,414)

NET INCOME / (LOSS) FOR THE YEAR 83,607 50,498 (7,538) 19,872 58,918 30 205,387 0 205,387

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For the year endedDecember 31, 1999

Chuquicamata R.Tomic Salvador Andina Teniente Talleres Consolidated

Division Division Division Division Division Division Balance Adjustment TOTAL

Th.US$ Th.US$ Th.US$ Th.US$ Th.US$ Th.US$ Th.US$ Th.US$ Th.US$

Operating income

Sales 954,980 294,891 138,046 188,133 438,098 0 2,014,148 0 2,014,148

Sales of copper acquired from third parties 248,013 21,159 45,688 20,361 46,311 0 381,532 0 381,532

Sales of by-products 165,766 354 27,649 37,564 12,635 26,007 269,975 0 269,975

Sales of products from other divisions 172,641 0 95,987 0 9,302 0 277,930 0 277,930

Income from transfers 51,711 477 575 76,836 186,900 0 316,499 (316,499) 0

OPERATING REVENUES 1,593,111 316,881 307,945 322,894 693,246 26,007 3,260,084 (316,499) 2,943,585

Cost of sales (748,192) (177,879) (157,493) (179,958) (358,225) (25,483) (1,647,230) 0 (1,647,230)

Cost of sales of copper acquired from third parties (240,494) (20,899) (45,329) (20,738) (45,742) 0 (373,202) 0 (373,202)

Cost of sales of products from other divisions (172,886) 0 (75,129) 0 (8,308) 0 (256,323) 41,525 (214,798)

Cost of transfers (57,809) (477) 0 (62,085) (154,603) 0 (274,974) 274,974 0

TOTAL COST OF SALES (1,219,381) (199,255) (277,951) (262,781) (566,878) (25,483) (2,551,729) 316,499 (2,235,230)

GROSS MARGIN 373,730 117,626 29,994 60,113 126,368 524 708,355 0 708,355

Add (deduct):

Selling and administrative expenses (36,596) (6,176) (7,609) (8,073) (14,984) (90) (73,528) 0 (73,528)

Other operating expenses (32,757) (463) (5,121) (2,785) (10,684) (1) (51,811) 0 (51,811)

Exchange adjustment 13,431 3,492 2,028 2,440 12,863 (272) 33,982 0 33,982

OPERATING INCOME 317,808 114,479 19,292 51,695 113,563 161 616,998 0 616,998

Non-operating income

Add (deduct):

Interest income 7,569 1,088 1,875 1,807 4,519 0 16,858 0 16,858

Other income 43,534 8,174 17,789 8,090 24,883 81 102,551 0 102,551

Interest expense (50,965) (7,984) (10,639) (11,169) (20,948) (163) (101,868) 0 (101,868)

Other expenses (21,422) (2,250) (7,930) (7,410) (22,646) (399) (62,057) 0 (62,057)

NON-OPERATING INCOME / (LOSS) (21,284) (972) 1,095 (8,682) (14,192) (481) (44,516) 0 (44,516)

Income (loss) before taxes and contribution 296,524 113,507 20,387 43,013 99,371 (320) 572,482 0 572,482

Contribution Law No. 13196 (115,302) (29,387) (17,719) (28,656) (46,993) 0 (238,057) 0 (238,057)

Income taxes (103,208) (46,719) (1,884) (8,689) (30,771) 167 (191,104) 0 (191,104)

NET INCOME / (LOSS) FOR THE YEAR 78,014 37,401 784 5,668 21,607 (153) 143,321 0 143,321

62 63

Basis of preparation of the statements of income by divisions

The statements of income by divisions are prepared in compliance with the Company's statutory obligations and on the basis of accountingprinciples generally accepted in Chile and the following internal accounting policies:

Note 1. Interdivisional transferThe Company records interdivisional transfers of goods and services at prices which are similar to market values. Therefore, the statementsof income by divisions for the year ended December 31, 2000 and 1999 include the following:

• Sales revenues with separate line items related to sales to third parties of products received from other divisions and to revenuesgenerated by transfers to other divisions.

• Costs of sales with separate line items related to cost of products received from other divisions and sold to third parties, and the costscorresponding to revenues from transfers to other divisions.

Note 2. Allocation of corporate income and expensesIncome and expenses incurred by the Head Office and by the Company's subsidiaries, are allocated to operating divisions on the basisof established policies as described in the Statement of Allocation of Income and Expenses of the Head Office and Subsidiaries.

Statements of Income byDivisions

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We have reviewed the allocation of income and expenses of the Head Office and Subsidiaries to the operating divisionsof Corporación Nacional de Cobre de Chile for the year ended December 31, 2000. Our work consisted principallyof a review of the criteria applied for determination of the allocation of income and expenses in compliance withinternal regulations established by Corporación Nacional del Cobre de Chile.

Amounts included in the Statement of Allocation of Income and Expenses of the Head Office and Subsidiaries formeda part of the consolidated financial statements of Corporación Nacional del Cobre de Chile for the year endedDecember 31, 2000, on which we issued an unqualified opinion.

In our opinion, the income and expenses of the Head Office and Subsidiaries for the year ended December 31, 2000,have been reasonably allocated to each operating division of Corporación Nacional del Cobre de Chile, in conformitywith the Company's internal regulations.

Juan Humud G.

Santiago, January 30, 2001

Statement of Allocationof Income and Expenses

of Head Office andSubsidiaries

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Criteria Applied to the Allocation of Income and Expenses of the Head Office and Subsidiaries

The income and expenses of the Head Office and Subsidiaries are allocated to each operating division in accordancewith criteria set forth for each of the income statement accounts, as follows:

1. Sales and costs of commercial activities of the Head Office and Subsidiaries

• Sales and costs of commercial activities are allocated considering the values of products and by-products billedby each division.

2. General administrative expenses

• Costs specifically identifiable to each division are allocated directly to that division.• Sales Cost Centers are allocated proportionally on the basis of the volume of invoices billed and accounted for

by each division upon dispatch of products and by-products.• Supplies Cost Centers are allocated proportionally on the basis of the stock balance of supplies in each operating

division.• The other Cost Centers are allocated proportionally on the basis of the operational outflows of each division.

3. Selling expenses

• Costs specifically identifiable to each division are allocated directly.• Other costs are allocated proportionally on the basis of invoices billed and accounted for by each division upon

dispatch of products and /or by-products.

4. Exchange adjustments

• Exchange variations identifiable with each division are allocated directly.• Differences arising from the conversion of US dollars into Chilean pesos are allocated on the basis of transfers

of funds and payments performed by the Head Office on behalf of each division.• The remaining balance is allocated on the basis of the operational outflows of each division.

5. Interest income

• Income associated with and identified as pertaining to each particular division is allocated directly.• The remaining balance is allocated on the basis of the operational outflows of each division.

6. Other income

• Income associated with and identified as pertaining to each particular division is allocated directly.• The remaining balance is allocated on the basis of the balance of the "other income" account for each respective

division.

Statement of Allocationof Income and Expensesof Head Office andSubsidiaries

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7. Interest expense

• Expenses associated with and identified as pertaining to each particular division are allocated directly.• The remaining balance is allocated on the basis of the operational outflows of each division.

8. Other expenses

- Expenses associated with and identified as pertaining to each particular division are allocated directly.- The remaining balance is allocated on the basis of the balance of the "Other Expenses" account for each division.

9. Operating results arising from futures hedging operations

The results arising from futures hedging operations for specific copper and by-product contracts are allocatedon the basis of contracts directly associated with each division.

10. Contribution Law No. 13196

Contribution Law No. 13196 is allocated on the basis of copper and by-product exports of each division.Adjustments are made for taxes affecting interdivisional transfers which are assigned to the division from whichthe products originated..

11. Income tax

Income tax is allocated to each division on the basis of the income before tax of each division.

Administrative, sales, interest,and other expenses Total Chuquicamata R,Tomic Salvador Andina Teniente Talleres

Sales 344,296 160,232 33,290 32,230 45,499 73,045 0

Cost of sales (341,429) (158,896) (33,014) (31,962) (45,120) (72,437) 0Selling and administrative expenses (59,814) (28,913) (4,735) (6,413) (7,626) (12,037) (90)Operating expenses 42,722 25,884 326 2,340 3,032 11,140 0Exchange adjustments 13,395 7,170 (1,329) 1,181 1,236 5,746 (609)Interest income 10,860 5,269 830 1,167 1,386 2,208 0Other income 89,346 38,925 8,333 14,013 10,164 17,911 0Interest expenses (107,593) (52,377) (7,966) (11,714) (13,658) (21,739) (139)Other expenses (86,166) (49,385) (2,688) (5,408) (7,212) (21,473) 0Contribution Law No. 13196 (274,796) (126,333) (34,614) (19,097) (40,240) (54,512) 0Income tax (272,414) (111,785) (61,664) 7,168 (26,343) (79,647) (143)

TOTAL (641,593) (290,209) (103,231) (16,495) (78,882) (151,795) (981)

Statements of Allocation of Income and Expenses ofthe Head Office and Susidiaries(for the year ended December 31, 2000) (In thousands of US dollars)

Statement of Allocationof Income and Expenses

of Head Office andSubsidiaries

HEADQUARTERHuérfanos 1270P.O. Box 150-DSantiago, ChileCable Adress: "Codelco-Chile"Tel.: 56 (2) 690 3000Fax: 56 (2) 672 1473/690 3059Telex: 240672 CUPRU CLE-mail: [email protected] site: http//www.codelcochile.com

Subsidiaries

ENGLANDChile Copper Ltd.27 Albemarle StreetLondon W1X 3FALondon, EnglandTel.: 44 (207) 907 9600Fax: 44 (207) 907 9610E-mail: [email protected] CUADRA - Vicepresident

GERMANYCodelco-Kupferhandel GmbHLouise Dumont Strasse 2540091 DüsseldorfPostfach 240226, AlemaniaTel.: 49 (211) 17368-0Fax: 49 (211) 17369-22E-mail: [email protected] HEITLING - Manager

SINGAPORECodelco-AsiaNº 5 Shenton Way14-03 U.I.C. BuildingSingapore 0106, SingaporeTel.: (65) 225 8817Fax: (65) 225 1853 / 225 8079Telex: RS 26170E-mail: [email protected] ERNESTO MIQUELES - Manager

USACorporación del Cobre (USA), Inc.177 Broad Street, 14th Flr.Stamford,CT 06901, USATel.: 1 (203) 425 4321Fax: 1 (203) 425 4322E-mail: [email protected] ADAMS DENNEN - Vicepresident

Copper Sales Representatives

ARGENTINACoppermol S.A.Ricardo Rojas 401, Piso 4Buenos Aires 1001, ArgentinaTel.: 54 (11) 4312 7086Fax: 54 (11) 43114007Telex: 23644 COMOL ARE-mail: [email protected] ROMERO - Manager

AUSTRALIAUnimet PTY Ltd.13 Spring RoadMalvern Vic 3144Melbourne, AustraliaTel.: (61) 39 8246575Fax: (61) 39 8247071E-mail : [email protected] CHEMKE - Manager

BELGIUM AND FRANCEFrancomet S.A.174 Boulevard Haussmann75008 Paris, FranceTel.: 33 (1) 4561 4781Fax: 33 (1) 4289 0412Telex: 648127 FRANMETE-mail: [email protected] PIERRE TOFFIER - Manager

BRAZILCHILE-BRAS Metais Ltda.Avda. Sâo Luiz 112, 5 AndarSâo Paulo - SP, BrazilTel.: 55 (11) 256 7828/258 3975Fax.: 55 (11) 258 8335E-mail: [email protected] DAYLLER - Manager

CANADA AND USACorporación del Cobre (USA), Inc.177 Broad Street, 14th Flr.Stamford,CT 06901, USATel.: 1 (203) 425 4321Fax: 1 (203) 425 4322E-mail: [email protected] GALETZKI - Sales Representative

ENGLAND, FINLAND, NORWAY, SWEDEN AND SPAINChile Copper Ltd.27 Albemarle StreetLondon W1X 3FALondon, EnglandTel.: 44 (20) 790 7 9600Fax: 44(20) 790 7 9610E-mail: [email protected] CUADRA - Vicepresident

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Offices, Subsidiaries andSales Representatives

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GERMANY, AUSTRIA, DENMARK AND HOLLANDCK Metall Agentur GmbHLouise Dumont Strasse 2540091 DüsseldorfPostfach 240226, GermanyTel.: 49 (211) 17369-0Fax: 49 (211) 17369-22E-mail: [email protected] HEITLING - Manager

GREECE, ITALY AND SWITZERLANDSocietá Importazione Metalli S.R.L.Via Pietro Moscati 820154 Milan, ItalyTel.: 39 (02) 331 1461Fax: 39 (02) 331 06968E-mail: [email protected] SCHWENDIMANN - Manager

HONG KONG, INDONESIA, MALAYSIA, MYANMAR,SINGAPORE, THAILAND AND VIETNAMCodelco-AsiaNº 5 Shenton Way14-03 U.I.C. BuildingSingapore 0106, SingaporeTel.: (65) 225 8817Fax: (65) 225 1853/2258079Telex: RS 26170E-mail: [email protected] ERNESTO MIQUELES - Manager

INDIATrikona ServicesFlat Nº211, Aurangzeb RoadNew Delhi - 110 011, IndiaTel.: 91 (11) 301 0974Fax: 91 (11) 379 4933Telex: 31-65640 RESN INRENU DAULET SINGH - Manager

JAPANShimex Ltd.Terao Bldg. 8-4, Nishi-Shinbashi2-chome, Minato-kuTokyo 105, JapanTel.: 81 (3) 3501 7778Fax: 81 (3) 3501 7760E-mail: [email protected] SHICHIRI - Manager

MEXICOPruTrade, S.A. de C.V.Rinconada de Río Grande #73Col. Vista HermosaC.P. 62290Cuernavaca, Morelos, MexicoTel: (52-7) 315-5500 / 315-5919 / 316-3213Fax: (52-7) 315-3979Email: [email protected] PRUDENCIO, Manager

PEOPLE’S REPUBLIC OF CHINAPechiney Far East LimitedRoom 2506 Windsor House,311 Gloucester RoadCauseway Bay, Hong KongTel.: (852) 2882 1208Fax: (852) 2837 9888Telex: 71922 PECHY HX / 71911 BRAIN HX.E-mail:[email protected] CHANG - Manager

REPUBLIC OF CHINARaw Materials Ltd.141 Tun Hua North Rd., 3rd Flr.,Taipei, Taiwan (R.O.C.)Tel.: 886 (2) 2712 8963Fax: 886 (2) 2713 3016E-mail: [email protected] H. L. SHEN - Manager

SAUDIT ARABIAPaul WeilA.IBN Abdul Muthalib St. (140)Habboubi Bldg. (1st Floor)Sharfeya Dist.Jeddah 21484, Saudit ArabiaTel.: (966) 2 6518348Fax: (966) 2 6513947Telex: 23644 COMOL ARE-mail: [email protected] YAMOUT - Manager

SOUTH KOREAK.S. Metals Corp.Dabo Bldg 2nd Floor.Mapo-Dong 140 Mapo-kuSeoul 121-714, South KoreaTel.: 82 (2) 719 4255 (Rep.)Fax: 82 (2) 719 4340E-mail: [email protected]. C. KIM - Manager

TURKEYKIMYA SENTEZ DIS TICARETOney is Hani Kat N°3Karakoy. Kemeralti Cad. N°2, TurkeyTel.: 90 - 212 - 252 8700 / 90 - 212 - 252 7144Fax: 90 - 212 - 252 6601 / 90 - 212 - 252 6691E-mail: [email protected] PARDO - Manager

VENEZUELAComtrade International C.A.Torre Oxal, Piso 1, Oficina AAvda. Venezuela, El RosalCaracas 1060, VenezuelaTel.: 58 - 2 -9512005Fax: 58 - 2 -9512724E-mail:[email protected] KNIERIM - Manager


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Molybdenum Sales Representatives

ARGENTINACoppermol S.A.Ricardo Rojas 401, Piso 4Buenos Aires 1001, ArgentinaTel.: 54 (1) 312 7086/89Fax: 54 (1) 11 2493Telex: 23644 COMOL ARE-mail: [email protected] ROMERO - Manager

AUSTRALIAUnimet PTY Ltd.13 Spring RoadMalvern Victoria 3144Melbourne, AustraliaTel.: 61 (3) 9 824 6575Fax: 61 (3) 9 824 7071E-mail: [email protected] CHEMKE - Manager

AUSTRIA, GERMANY, DENMARK AND HOLLANDCK Metall Agentur GmbHLouise Dumont Strasse 2540091 DüsseldorfPostfach 240226, GermanyTel.: 49 (211) 17369-0Fax: 49 (211) 17369-22E-mail: [email protected] HEITLING - Manager

BELGIUM Y FRANCEFrancomet S.A.174 Boulevard Haussmann75008 ParisFranceTel.: 33 (1) 4561 4781Fax: 33 (1) 4289 0412Telex: 648127 FRANMETE-mail: [email protected] PIERRE TOFFIER - Manager

BRAZILCHILE-BRAS Metais Ltda.Avda. Sâo Luiz 112, 5_ AndarSâo Paulo - SP, BrazilTel.: 55 (11) 256 7828/258 3975Fax.: 55 (11) 258 8335E-mail: [email protected] DAYLLER - Manager

GREECE, ITALY AND SWITZERLANDDel Bosco & C.S.R.L.Via Pietro Moscati 820154 Milan, ItalyTel.: 39 (2) 331 1461Fax: 39 (2) 331 06968E-mail: [email protected] SCHWENDIMANN - Manager

ENGLAND, FINLAND AND SWEDENChile Copper Ltd.27 Albemarle StreetLondon W1X 3FA, EnglandTel.: 44 207 907 9600Fax: 44 207 907 9610E-mail: [email protected] CUADRA - Vicepresident

HONG KONG, INDONESIA, MALAYSIA, MYANMAR,SINGAPORE, THAILAND AND VIETNAMCodelco-AsiaNº 5 Shenton Way14-03 U.I.C. BuildingSingapore 068808, SingaporeTel.: (65) 225 8817Fax: (65) 225 1853/2258079Telex: RS 26170E-mail: [email protected] ERNESTO MIQUELES - Manager

JAPANShimex Ltd.Terao Bldg. 8-4Nishi-Shinbashi 2-chomeMinato-kuTokyo 105, JapanTel.: 81 (3) 3501 7778Fax: 81 (3) 3501 7760E-mail: [email protected] SHICHIRI - Manager


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Corporate Headquarters

Adriasola M., MarcelaCommercial Services Manager

Allende G., MarioHead Accountant

Alvarez L., José AntonioFinancial Manager

Bascur M., PabloBy-Product Sales Manager

Cabezas T., MarioAdvisor to the CEO

Camus I., FranciscoExplorations Manager

Chaparro N., PatricioHead Counsel

Cortínez C., Juan PabloCopper Sales Manager

De Jourdan R., PatricioSupplies Manager

De Saint Pierre S., DidierInformation Technologies Manager

Donoso P., JorgeCommunications Director

Espinoza D., MarioSenior Vicepresident, Business Development

Estévez V., RafaelSenior Vicepresident, Human Resources

Fortin C., WaldoChief of Legal Affairs

Girardi M., SilvioSenior Vicepresident, Exploration and Mining Joint Ventures

Gómez A., AlejandroProjects and Investment Manager

Guerra M., JuanDeputy Manager Corporate Headquarters

Herrera C., Juan EduardoChief Financial Officer

Leibbrandt V., JürgenCommercial Development Manager

Mobarec A., MarceloAuditor

Morales C., PedroResearch and Development Director

Morales J., Juan EnriqueChief Development Officer

Neira S., MarianoController and Administrative Manager

Riveri C., FernandoSenior Vicepresident, Operations

Silva R., EnriqueStrategic Management and Studies Manager

Solari E., MirthaExplorations Operations Manager

Souper R., RobertoSenior Vicepresident, Marketing

Torres E., SantiagoEnvironmental Manager

Tulcanaza N., EdmundoMine Technology and Planning Manager

Urbina M., MauricioBusiness Manager

Villarzú R., JuanPresident and Chief Executive Officer

Wedeles M., María TeresaGeneral Secretary

Chuquicamata Division

Ahumada F., JorgeDeputy Manager Concentrate Smelting

Avendaño D., Juan CarlosDeputy Manager Supplies

Coddou P., FranciscoDeputy Manager Refineries

Delgado Q., CarlosDeputy Manager Integrated Safety,Quality and Environmental Management

Díaz S., Juan CarlosDirector of Communications and Public Affairs

Espinoza V., HéctorDeputy Manager Finance and Management Controls

Freraut C., RobertoDeputy Manager Geology and Geo-technology

Medel F., JuanDeputy Manager Strategic Management and Planning

Olivos M., OscarDeputy Manager Mine-Concentrator Maintenance

Queirolo D., ClaudioDeputy Manager Oxides Mina Sur

Codelco’s Executives

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Rubilar O., CarlosGeneral Manager

Scroggie S., Juan PabloLegal Counsel

Siri F., AldoDeputy Manager Human Resources

Trivelli O., DanielOperations Manager

Urrea U., GonzaloDeputy Manager Concentration Plants

Vera M., GuillermoDeputy Manager Chuquicamata Mine

Von Borries H., GerhardDeputy Manager Projects

Radomiro Tomic Division

Barros V., LautaroDirector of Strategic Planning

Farías L., LuisGeneral Manager

Merino E., ArturoHuman Resources Manager

Montoya P., RicardoDeputy Manager Hydrometallurgy

Müller L., NorbertoProjects Manager

Opazo M., ManuelHead Counsel

Pérez D., EliseoDeputy Manager Mine

Román M., JorgeDeputy Manager Administration and Finance

Salvador Division

Arteaga R., PabloHead Counsel

Báez N., FidelGeneral Manager

Dasencich A., JorgeDeputy Manager Quality, Safety and theEnvironment

Echevarría S., JulioDeputy Manager Development and Investment

Fishwick T., MiguelDeputy Manager Mine-Concentrator

Olivares B., LuisDeputy Manager Administration and Finances

Reyes F., PedroDeputy Manager Potrerillos

Rojas E., JaimeDeputy Manager Strategic Management

Vivero G., EnriqueDeputy Manager Heapleaching

Andina Division

De Nordenflycht A., RaúlPlanning and Development Manager

Elgueta M., RogelioServices and Supplies Manager

Kaempfer M., ErickEnvironmental Risk and Quality Manager

Morales G., GermánGeneral Manager

Pérez P., IvánEngineering and Project Manager

Saldivia O., Juan ManuelOperations Manager

Salinero B., AlejandroHuman Resources Director

Uteau de V., SergioHead Counsel

Whittle F., LeonardoAdministration and Finance Manager

El Teniente Division

Alvarado V., RubénGeneral Manager

Alvarez F., RicardoDeputy Manager Mine Concentrator

Berwart T., PabloHead Counsel

Hip S., HéctorDeputy Manager Quality Management

Mussuto I., NicolásDeputy Manager Administration and Finances

Olavarría C., ArmandoDeputy Manager Services and Supplies

Olavarría A., SergioStrategic Planning Director

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Reyes B., GustavoExpansion Project Director

Rojas F., UlisesDeputy Manager Smelter

Sánchez M., GustavoDeputy Manager Engineering

Silva G., PatricioDeputy Manager Human Resourcess

Talleres Division

Acosta M., AlexGeneral Manager

Bobadilla R., HernánDeputy Manager Operations

Ríos A., DidierDeputy Manager Administration and Finances

Salazar R., CarlosDeputy Manager Marketing


DESIGN AND PRODUCTION

TRANSLATED TO ENGLISHLake Sagaris

PHOTOGRAPHSRodrigo RojasClaudio Pérez

Francisco AguayoArchivo Codelco

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